Investment Outlook for Suez Canal Bank by June-2023 end

The financial statements of Suez Canal Bank, ending on June 30, 2023, revealed a total bank asset growth rate of 16.70%, achieving an increase of EGP 12.5 bn in the first half of the current year. This brought the total assets to EGP87.1 bn by the end of June 2023, compared to EGP74.7 bn by the end of December 2022.

Analyzing the investment trends of Suez Canal Bank at the end of the first half of 2023, it's clear that the bank continues to allocate a significant portion of its funds towards granting loans to customers, as evidenced by the substantial difference in the relative weight of both portfolios at the end of the analyzed period.

Loans and Facilities to customers:

The customer loans and facilities portfolio at the bank received the largest share of its investment focus, accounting for 36.30% of the bank's asset portfolio by the end of June 2023, compared to a relative weight of 39.67% of total assets by the end of December 2022. This portfolio saw a growth rate of 6.79% in the first half of the current year, reaching EGP31.6 bn by the end of June 2023, an increase of EGP 2.012 bn compared to the end of December 2022.

Total Financial Investments and T-Bills:

Although the relative weight of the total financial investments and t- bills portfolio decreased by the end of the analyzed period, it still ranked second in the bank's investment focus. It accounted for 26.34% of the bank's total assets by the end of June 2023, compared to 32.97% by the end of December 2022. The total value of this portfolio reached EGP23 bn by the end of June 2023, compared to EGP24.6 bn by the end of December 2022.

Balances with Banks:

The total balances held by Suez Canal Bank with other banks constituted the third-largest component of the bank's asset portfolio, with a relative weight of 22.65% of total assets by the end of June 2023, compared to 10.25% by the end of December 2022.

Total cash and balances with banks experienced a remarkable growth rate of 157.84% during the first half of the current year, reaching EGP19.7 bn by the end of June 2023, compared to EGP 7.7 bn by the end of December 2022, with an increase of EGP12.1 bn.

Cash and Balances with the Central Bank:

The line item "Cash and Balances with the Egyptian Central Bank" accounted for the fourth-largest percentage of Suez Canal Bank's total assets, representing 9.92% of total assets by the end of June 2023, with a total value of EGP8.6 bn, compared to 11.74% with a value of EGP 8.8 bn by the end of December 2022.

Other Assets:

Accounted for 3.35% of Suez Canal Bank's total assets by the end of June 2023, compared to 3.81% by the end of December 2022, with a total value of EGP2.9 bn, unchanged from the end of the analyzed period.

Bank's Loan Market Trends:

Looking at the components of the total portfolio of customer loans and facilities, the bank appears to favor granting credit to institutions, as their relative weight has increased significantly, especially by the end of June 2023, surpassing individual financing.

Corporate Loans:

The total corporate loans at Suez Canal Bank accounted for 90.71% of the total portfolio of customer loans and facilities by the end of June 2023, compared to 91.42% by the end of December 2022. Nevertheless, the total corporate loans portfolio at the bank experienced a growth rate of 8.81%, recording an increase of EGP2.6 bn during the first half of the current year, reaching nearly EGP32 bn by the end of June 2023, compared to EGP29.4 bn by the end of December 2022.

Retail Loans:

The portfolio of retail loans at the bank accounted for 9.29% of the total customer loans and facilities portfolio by the end of June 2023, compared to 8.58% by the end of December 2022. The total portfolio of retail loans at Suez Canal Bank recorded a growth rate of 18.82%, with an increase of EGP519 mn during the first half of the current year, reaching EGP 3.3 bn by the end of June 2023, compared to EGP 2.8 bn by the end of December 2022.