Faisal Bank sees a strong performance on financial soundness index, records 78.05 points by March-2023end

Faisal Islamic Bank of Egypt was able to achieve a strong performance on First Bank’s financial soundness index in Q1-2023, scoring 78.05 points, compared to the sector average of 50 points at the same period.

The financial soundness index set by First Bank, measures the strength and soundness of the banks' financial positions and their ability to preserve the funds of depositors and shareholders.

The financial soundness index is based on six measures: the capital adequacy ratio, the financial leverage ratio, assets to deposits ratio, shareholders equity to deposits ratio, loans to deposits ratio and non-performing loan ratio.

Faisal Bank’s capital adequacy ratio reached 24.47% at the end of March 2023, while the average rate of banks operating Egypt was at 17% during the same period, exceeding the regulatory limits set by the Central Bank of Egypt which are consistent with Basel Accord of 12.5%.

Financial leverage ratio recorded 12.34% by March-2023end compared to the average rate of 6.2% of the total banking sector at the same period.

Faisal Bank's ratio of non-performing loans fell to 2.6% during Q1-2023 compared to an average of 3.5 % of the total banking sector at the same period.

Furthermore, loans to deposits ratio recorded 11.62% at the end of 2022, compared to 48.9% of the total banking sector during the same period.

It is worth mentioning that Faisal Bank's loans to deposits ratio the lowest in the Egyptian banking sector as a whole.

In addition, the bank’s assets to deposits ratio declined below the banking sector average recording 126.14% by March-2023end, compared to an average of 140.75% of the total banking sector during the same period.

Moreover, shareholders equity to assets ratio jumped by 17.91% at the end of March 2023, compared to 8.80% of the total banking sector during the same period.