Investment Outlook for aiBANK by June 2023 end

The financial statements of Arab Investment Bank 'aiBANK,' ending in June of the past year, revealed a total bank asset growth rate of 5.61%, achieving an increase of EGP 3.11 bn during the first half of the current year, reaching EGP58.50 bn by the end of June 2023, compared to EGP55.39 bn by the end of December 2022.

Analyzing aiBANK's investment trends by the end of the first half of 2023:

The bank continues to focus on allocating the majority of its funds to granting loans to customers, as evident from the difference in the relative weight of each portfolio at the end of the analysis period.

Loans and Facilities to customers:

 loans and facilities to customers portfolio at the bank received the largest share of its investment focus, accounting for 37.47% of the bank's total asset portfolio by the end of June 2023, compared to a relative weight of 34.90% of total assets by the end of December 2022.

Net customer loans and facilities portfolio at the bank experienced a growth rate of 13.38% during the first half of the current year, reaching EGP 21.92 bn by the end of June 2023, compared to EGP19.33 bn by the end of December 2022, with an increase of EGP2.59 bn.

Total Financial Investments:

The relative weight of the total financial investments portfolio at the bank decreased at the end of the analysis period. Despite this, it ranked second in the bank's investment focus, accounting for 35.61% of the bank's total assets by the end of June 2023, compared to 41.01% by the end of December 2022.

Total financial investments portfolio at the bank amounted to approximately EGP 20.83 bn by the end of June 2023, compared to EGP22.71 bn by the end of December 2022.

Balances with Banks:

aiBANK's total balances with other banks constituted the third-largest component of its asset portfolio, accounting for a relative weight of 14.32% of the bank's total assets by the end of June 2023, compared to 14.65% by the end of December 2022.

Total cash and balances with CBE increased by a growth rate of 3.18% during the first half of the current year, reaching EGP8.38 bn by the end of June 2023, compared to EGP 8.12 bn by the end of December 2022, with an increase of EGP258 mn.

Cash and Balances with CBE:

The relative weight of cash and balances with the Egyptian Central Bank increased to 7.03% by the end of June 2023, compared to 3.74% by the end of December 2022.

aiBANK's balances with the Egyptian Central Bank jumped by a growth rate of 98.41%, with an increase of EGP 2.04 bn during the first half of the current year, reaching EGP4.11 bn by the end of June 2023, compared to EGP2.07 bn by the end of December 2022.

Other Assets:

The category of other assets accounted for a relative weight of 4.03% of the bank's total assets by the end of June 2023, compared to 4.21% by the end of December 2022, with a total value of EGP 2.36 bn, compared to EGP 2.33 bn at the end of the analyzed periods.

Bank Loan Market Trends:

Examining the components of the total portfolio of customer loans and facilities, we find that the bank leans more towards extending credit to corporates due to their significantly higher relative weight, at the expense of financing granted to individuals by the end of June 2023.

Corporate Loans:

The total corporate loans at aiBANK accounted for a relative weight of 74% of the total customer loans and facilities portfolio by the end of June 2023, compared to 74.37% by the end of December 2022.

However, the total corporate loans portfolio at the bank increased by a growth rate of 11.58%, registering an increase of EGP1.80 bn during the first half of the current year, reaching EGP17.31 bn by the end of June 2023, compared to EGP15.51 bn by the end of December 2022.

Retail Loans:

The portfolio of retail loans at the bank accounted for a relative weight of 26% of the total customer loans and facilities by the end of June 2023, compared to 25.63% by the end of December 2022.

Total portfolio of retail loans at aiBANK experienced a growth rate of 13.75%, with an increase of EGP735 mn during the first half of the current year, reaching EGP 6.08 bn by the end of June 2023, compared to EGP5.35 bn by the end of December 2022.