Suez Canal Bank Enhances Support for Corporates; Industrial and Service Sectors Lead in Financing Uptake
First Bank
Suez Canal Bank has significantly bolstered its support for corporates, particularly in the financial services activities, during the first quarter of the current year. Notably, the bank's funding for these activities has witnessed substantial growth. Industrial and service sectors collectively accounted for over 50% of the bank's loans to institutions.
By the end of March 2023, the bank's funding to corporates reached EGP33.44 bn, compared to EGP 29.38 bn by the end of 2022, marking a growth rate of 13.83% and an increase of EGP4.06 bn. As a result, Suez Canal Bank secured the third position on First Bank list of the fastest-growing banks in terms of corporate deposits during the first quarter of the current year.
It's worth noting that the bank's funding for corporates constitutes a significant portion of the total loans and facilities extended to customers, amounting to 91.5% by the end of March 2023.
In light of this remarkable growth, First Bank observes the evolution of the bank's funding portfolio based on the activities pursued by its corporate clients.
Financial Services Sector
Banking support for financial services activities surged by 71.50%, reaching EGP 5.23 bn by the end of the first quarter of 2023, compared to EGP3.05 bn by the end of 2022, with an increase of EGP2.18 bn. Financial services activities accounted for 15.63% of the total bank loans to corporates by the end of March 2023.
Real Estate Activity
Bank loans for real estate activity amounted to EGP2.76 bn by the end of the first quarter of 2023, as opposed to EGP2.36 bn by the end of 2022, reflecting a growth rate of 16.86% and an increase of EGP398.06 mn. Real estate sector constituted 8.25% of the total bank loans to corporates by the end of March 2023.
Industrial Sector
Funding for the industrial sector increased from EGP7.39 bn by the end of 2022 to EGP8.58 bn by the end of the first quarter of 2023, showing a growth rate of 16.19% and an increase of EGP1.2 bn. The industrial sector commanded the largest share of the bank's funding to institutions, comprising 25.67% by the end of last March.
Service Activities
Suez Canal Bank's financing for service activities grew by 10.36% during the first three months of the current year, reaching EGP8.19 bn by the end of March 2023, compared to EGP7.42 bn by the end of 2022, with an increase of EGP769.28 mn. Services activities constituted 24.49% of the total bank loans to corporates by the end of March 2023.
Commercial Activity
The commercial activity accounted for a small share of the total bank loans to corporates, totaling 4.86% by the end of the first quarter of the current year. Loans for this activity increased to EGP 1.63 bn by the end of March 2023, compared to EGP 1.57 bn by the end of 2022, reflecting a growth rate of 3.59% and an increase of EGP56.33 mn.
Tourism Sector
Tourism sector held a share of 20.31% of the bank's total funding to corporates by the end of March of the past year. Funding for this sector amounted to EGP6.79 bn during the same period, compared to EGP7.32 bn by the end of 2022.
As for Suez Canal Bank's financing for other activities, it reached EGP264.79 mn by the end of March 2023.
It is worth noting that total loans and facilities to customers increased by a rate of 13.73%, reaching a total portfolio of EGP36.6 bn by the end of March 2023, compared to EGP32.1 bn by the end of 2022, reflecting an increase of EGP4.4 bn.
