Financial investments top the employment priorities in the banking sector during H1-2023

The latest data from the Central Bank of Egypt reveals an increase in the assets of the banking sector, reaching EGP13.798 tn by the end of June 2023, compared to EGP11.399 tn at the end of 2022, with a growth rate of 21.04% and an increase of EGP2.398 tn.

First Bank analyzes the investment trends of the Egyptian banking sector according to the latest data from CBE as follows:

Banks operating in the Egyptian banking sector relied on a nearly balanced investment plan between securities and T-bills, and loans by the end of June 2023. However, investments in securities and T-bills slightly outpaced loans, accounting for 35.19% of the total sector assets by the end of the first half of 2023.

Securities and T-bill investments increased from EGP4.428 tn at the end of 2022 to EGP4.856 tn at the end of June 2023, with an increase of EGP427.627 bn.

Regarding the investments of banks operating in the Egyptian banking sector in customer loans, they accounted for 34.78% of the total sector assets by the end of the first half of 2023.

The lending and discount balances for customers increased to EGP 4.799 tn by the end of the first half of 2023, compared to EGP4.094 tn at the end of 2022, with a growth rate of 17.23% and an increase of EGP705.256 bn.

Internally, bank balances constituted the third-largest component of the Egyptian banking sector's asset portfolio by the end of the first half of 2023, with a relative weight of 16.86%, reaching EGP 2.33 tn at the end of June last year, compared to EGP1.91 tn at the end of 2022. The remaining percentage was concentrated in various other assets.