Investment Outlook for Emirates NBD by June-2023 end
First bank
The financial statements of Emirates NBD Egypt, ending on June 30, 2023, reveal significant growth in the bank's assets, with an increase of approximately EGP 14.7 bn, marking a 14.56% growth in the first half of the current year. The total assets reached EGP 115.6 bn by the end of June 2023, compared to EGP 100.9 bn at the end of December 2022.
Analyzing the bank's investment trends at the end of June, it becomes evident that Emirates NBD Egypt is directing a significant portion of its funds towards providing loans to its clients as part of its financial investments, as evidenced by the substantial difference in the relative weight of the two portfolios at the end of the first half of the current year.
Net Customer Loans
While the relative weight of the net customer loans portfolio experienced a slight decline, it still accounted for the majority of the bank's investment focus at 44.66% of the total assets by the end of June 2023, compared to a relative weight of 42.51% at the end of December 2022.
The portfolio of loans and facilities to customers increased to EGP 48.176 bn by the end of June 2023, compared to EGP 42.904 bn at the end of December 2022, showing a growth rate of 12.29% and an increase of EGP 5.272 bn during the first half of the current year.
Total Financial Investments and T-Bills
Total portfolio of financial investments and t-bills held the second position in its investment direction, constituting 27.06% of the total assets by the end of June 2023, compared to 27.93% of the total assets at the end of December 2022.
Total portfolio of financial investments and t-bills at the bank increased by 10.97%, registering an increase of EGP 3.092 bn during the first half of the current year, reaching EGP 31.289 bn by the end of June 2023, compared to EGP 28.197 bn at the end of December 2022.
Balances with Banks
Despite a relative increase in the weight of Emirates NBD Egypt's balances with other banks, it held the third-largest relative weight of its total asset portfolio at 22.36% by the end of June 2023, compared to a relative weight of 17.82% at the end of December 2022.
Balances with Banks portfolio recorded a total value of EGP 25.854 bn by the end of June 2023, compared to EGP 17.990 bn at the end of December 2022, exhibiting a growth rate of 43.71% and an increase of EGP 7.864 bn during the first half of the current year.
Cash and Balances with CBE
Cash and Balances with CBE portfolio saw a significant decrease in its relative weight, yet it ranked fourth within the bank's investment direction, constituting 6.88% of the total assets by the end of June 2023, compared to 9.57% at the end of December 2022.
The value of balances with CBE held by Emirates NBD Egypt decreased by 17.64% during the first half of the current year, reaching approximately EGP 7.956 bn by the end of June 2023, compared to EGP 9.660 bn at the end of December 2022.
Other Assets
The relative weight of other assets remained stable at 1.36% of the total assets of the bank by the end of the first half of the current year, although their value increased to EGP 1.567 bn by the end of June 2023, compared to EGP 1.375 bn at the end of December 2022, indicating a growth rate of 13.96% during the analysis period.
Bank's Loan Market Trends
Examining the components of the total loan portfolio, it is apparent that Emirates NBD Egypt is more inclined towards granting credit to corporates over individuals, as reflected by the higher relative weight of corporate loans at the end of the first half of 2023.
Corporate Loans
The relative weight of the total corporate loan portfolio at Emirates NBD Egypt increased, constituting 74.65% of the total loan portfolio of the bank's clients by the end of June 2023, compared to 73.07% at the end of December 2022.
Total corporate loan portfolio at the bank increased by 13.31%, with an additional EGP 4.513 bn during the first half of the current year, reaching EGP 38.421 bn by the end of June 2023, compared to EGP 33.908 bn at the end of December 2022.
Retail Loans
Meanwhile, the relative weight of the retail loan portfolio at the bank experienced a slight decline, accounting for 25.35% of the total loan portfolio of the bank's clients by the end of June 2023, compared to a relative weight of 26.93% at the end of December 2022.
Despite this decline, total personal loan portfolio saw growth of 4.40% and an increase of EGP 550 mn during the first half of the current year, reaching a value of EGP 13.045 bn by the end of June 2023, compared to approximately EGP 12.495 bn at the end of December 2022.
