ABK- Egypt Investment Strategy by June-2023end

The separate financial statements of Al Ahli Bank of Kuwait - Egypt, ending on June 30, 2023, revealed that Bank's asset portfolio has achieved a growth rate of 11.73%, and an increase of EGP8.9bn, recording EGP 84.5 bn by the end of June 2023, compared to EGP 75.6 bn by the end of December 2022.

Analyzing the investment trends of ABK- Egypt by June 2023 end:

The bank continued to allocate the majority of its funds to granting loans rather than financial investments, This is evident the remarkable different among relative weight of loans and facilities to customers compared to the relative weight of financial investments, by the end of June 2023.

Customer loans and facilities

The bank's net portfolio of loans and facilities to customers

witnessed a slight increase in its relative weight, to acquire the largest share of the bank's asset portfolio with a relative weight of 44.09% by the end of June 2023, compared to a relative weight of 43.65% of the bank's assets by the end of December 2022.

Bank's net customer loan portfolio witnessed an increase, achieving a growth rate of 12.85% with an increase of EGP 4.2 bn during the first half of current year, to record EGP 37.2 bn by June 2023end, compared to EGP33bn by the end of December 2022.

Financial investments

Ranked second in terms of the bank's investment Trends, despite an decrease in its relative weight, as acquired 21.77% of the bank's total assets by the end of June 2023To record a value of EGP18.4bn, compared to a relative weight of 25.81% and Total value EGP19.5bn by the end of December 2022.

Balances with Banks

Accounted for the third largest share of ABK- Egypt's asset portfolio, with 17.55% by the end of June 2023, compared to a relative weight of 14.33% by the end of December 2022.

The total portfolio of balances with banks jumped by 36.83% with an increase of around EGP 4 bn during the first half of this year, to record EGP14.8 bn by the end of June 2023, compared to EGP10.8 bn by the end of December 2022.

Cash and Balances with CBE

the relative weight of Cash and Balances with CBE, witnessed a slight increase, as acquired a relative weight of 11.98% of the bank's total assets by the end of June 2023, compared to a relative weight of 11.90% by the end of December 2022.

Its total value amounted to EGP 10.1 bn at the end of June 2023, compared to EGP 9 bn at the end of December 2022, achieving a growth rate of 12.57%, and an increase of EGP1.1bn.

Other Assets

The relative weight of other assets Increased at a rate of 2.43% of the bank's total assets by the end of June of 2023, recording EGP 2.1 bn, compared to 2.27% and a value of EGP 1.7 bn at the end of December 2022.

Bank's Trends in the Loan Market

By examining the components of total loan portfolio, it is evident that the bank tends to grant credit to Corporates more than retail, given the higher relative weight at the end of the first Half of 2023.

Corporate Loans

Total Corporate loans accounted for a relative weight of 64.53% of the bank's total customer loans by the end of June 2023, compared to 64.71% of the bank's total customer loans by the end of December 2022.

Total Corporate loan portfolio at the bank increased, as achieved a growth rate of 12.29% and an increase of EGP 2.8 bn during the first Half of the current year, reaching EGP 25.2 bn by the end of June 2023, compared to EGP 22.4 bn at the end of December 2022.

Retail Loans

While the relative weight of the bank's retail loan portfolio witnessed a slight increase to reach 35.47% of the bank's total customer loans by the end of June 2023, compared to a relative weight of 35.29% of the bank's total customer loans by the end of December 2022

Bank's total retail loan portfolio recorded EGP 13.8 Bn by the end of June 2023, compared to EGP 12.2 bn by the end of December 2022, achieving a growth rate of 13.8%, and an increase of EGP1.6 bn.