EGBANK sees a stability in its resources employment rate on 83.47% by June-2023 end

The Egyptian Gulf Bank has maintained a resource employment rate of 83.47% by the end of June 2023. The bank witnessed stability in its resource employment rate throughout the current year, recording 83.47% by the end of June 2023, compared to 83.50% at the end of the previous year.

This index, launched by the research center affiliated with First Bank, measures the traditional resource employment rate (deposits + Equity) in (loans + financial investments) for banks operating in the Egyptian banking sector.

The stability of this index during the first 6 months of the current year reflects Egyptian Gulf Bank's continued conservative policy in resource employment, which began last year.

The bank employed EGP 70.37 bn from its traditional resources, which amounted to EGP84.30 bn at the end of June 2023, in loans and financial investments, with EGP32.15 bn for the total customer loans and EGP38.22 bn for financial investments.

In contrast, they employed EGP 64.33 bn from their traditional resources, which amounted to EGP 77.04 bn at the end of 2022, in loans and financial investments, with EGP28.45 bn for the total customer loans and EGP35.88 bn for financial investments.

Regarding the distribution of traditional resources for the bank at the end of the first half of 2023, EGP 78.57 bn were allocated to the deposit portfolio, while the total equity rights amounted to EGP 5.73 bn at the end of the same period.

The percentage of deposit employment for lending slightly increased to 40.91% by the end of June 2023, compared to 39.66% at the end of the previous year. Nevertheless, the bank ranked ninth on First Bank's list of banks with the highest deposit employment rate for lending (total customer loans/total deposits) by the end of the first half of the current year.

Regarding the deposit employment rate for financial investments, it decreased by about 1.38% to reach 48.64% by the end of June 2023, compared to 50.03% at the end of 2022.

Despite the relative stability in the bank's resource employment rate during the first half of 2023, it remained lower than the average of the Egyptian banking sector, where the employment index in the banking sector reached approximately 90.53% by the end of April 2023, according to the latest data from the Central Bank of Egypt.

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