Financial investments top employment priorities by largest 10 banks in Egypt by June-2023 end

The portfolio of assets of top 10 operating banks in the Egyptian banking market witnessed significant growth during the current year, jumping by 22.25% to reach EGP 10.95 tn by the end of June 2023, compared to EGP 8.957 tn by the end of 2022, an increase of EGP 1.993 tn.

First Bank monitored the investment trends of top 10 banks based on the latest data from the Central Bank. It was found that they relied on an investment plan that balances investments in securities and t-bills with investments in loans, with a slight preference for the former.

The portfolio of securities and t-bill investments represented the highest relative weight, accounting for 36.06% of the assets of the top ten banks collectively, reaching EGP 3.948 tn by the end of the first half of 2023, compared to EGP 3.53 tn by the end of 2022, with a growth rate of 11.84% and an increase of approximately EGP 418 bn across all 10 banks.

This aligns with the Egyptian banking sector as a whole, where banks operating in the Egyptian banking sector also relied on an investment plan focused on investing in securities and t-bills, albeit with a slightly higher percentage. The portfolio of securities and treasury bill investments accounted for 35.19% of the total sector assets by the end of June 2023.

Loans provided to customers by the top 10 operating banks in the Egyptian banking sector ranked second, capturing the second-largest relative weight of 35.52% of the total assets of the top 10 banks by the end of the first half of 2023.

Lending and discount balances for customers at the top 10 banks increased by approximately 9.68%, reaching EGP 3.889 tn by the end of June 2023, compared to EGP 3.28 tn by the end of 2022, with an increase of about EGP 609 bn.

The balances at the top 10 banks constituted the third-largest component of the portfolio of assets of the Egyptian banking sector by the end of the first half of 2023, with a relative weight of 15.14%, totaling EGP 1.658 tn by the end of last June, compared to EGP 1.35 tn by the end of 2022. The remaining percentage was concentrated in various other assets.