Evolution of Banking sector indicators during Hassan Abdullah's tenure

 Since his appointment as the Governor of the Central Bank of Egypt in August 2022, succeeding Tarek Amer, Abdullah has led the Egyptian banking sector to a financial boom.

He possesses over 40 years of banking and financial experience, previously serving as the CEO of Arab African International Bank. During his tenure, loans to clients rose by 26%, with the private sector accounting for 37% of them.

Additionally, total lending and discount balances in the sector grew by 26%, reaching EGP4.438 tn by April 2023. Abdullah's decision to remove deposit limits for retail and corporates contributed to a 24.3% growth in the banking sector's deposit portfolio, which reached 9.309 trillion pounds by April 2023.

Family sector deposits, in both local and foreign currencies, increased by 14.48%, reaching EGP5.441 tn by April 2023. Private sector deposits grew by 42.32%, reaching EGP1.482 tn by April 2023.

This significant increase in total deposits of the banking sector reflects the depositors' confidence in the Egyptian market policies since Hassan Abdullah took office.

 His initial decisions to ease corporate procedures, remove deposit limits for individuals and companies, and increase the maximum cash withdrawal limit for retail and companies contributed positively to the banking sector.

This move lifted restrictions on banking transactions, accelerated economic activity, facilitated liquidity provision, and rapidly expanded the deposit portfolio of Egyptian banks.

Total financial position of the banks (assets) jumped by 29.68%, reaching EGP 13.277 tn by the end of April 2023 from EGP10.238 tn at the end of July 2022.

 Additionally, the portfolio of securities and investments in t-bonds in the sector increased by 27.81%, reaching EGP 4.721 tn by the end of April 2023. Furthermore, the banks' capital increased by 31.10%, totaling EGP323.2 bn by the end of April 2023, compared to EGP 246.5 bn at the end of July 2022.

The banks' reserves with CBE increased from EGP464.7 bn at the end of July 2022 to EGP484.4 bn by the end of April 2023, growing at a rate of 4.24%.

Moreover, the banks' provisions increased by 37.65%, totaling EGP303.5 bn by the end of April 2023, compared to EGP220.5 bn at the end of July 2022.

It's important to note the distinction between provisions and reserves: provisions are funds set aside from bank revenues to cover definite or possible expenses or losses, whereas reserves are funds deducted from bank profits to maintain financial stability, support development efforts, and compensate for unlikely expenses or losses.

CBE's total assets surged by 53.30% in a year, reaching EGP 4.765 tn by the end of August 2023 from EGP3.108 tn at the end of July 2022. Additionally, CBE's gold reserves increased by 81.69%, reaching EGP242.4 bn by the end of August 2023 from EGP133.4 bn at the end of July 2022.

CBE's contributions to international financial corporates reached EG20.3 bn, and its contributions to affiliated and sister companies jumped by 64.17% in a year, reaching EGP45.1 bn by the end of August 2023 from EGP27.5 bn at the end of July 2022.

CBE's reserves increased by 70.19% in a year, totaling EGP 371.3 bn by the end of August 2023 from EGP218.2 bn at the end of July 2022.