ADCB Egypt investment outlook by September-2023end
First Bank
The financial statements of Abu Dhabi Commercial Bank – Egypt for the period ended September 30, 2023, revealed an increase in the bank’s asset portfolio by a growth rate of 1.36% and an increase of EGP1.168 bn during the first 9 months of the current year, to reach EGP 87.339 bn by the end of September 2023, compared to EGP86.171 bn at the end of December 2022.
The investment trends of ADCB Bank by the end of September 2023 show that:
The bank works to employ the largest percentage of its funds in granting loans to customers at the expense of granting financial investments, and this is evident from the large difference between the relative weight of the net customer loan portfolio, compared to the relative weight of the total financial investment portfolio by the end of September 2023.
Customer loans
The relative weight of net customer loan portfolio increased to account for the largest share of the investment trends of the bank, to obtain a percentage of 37.40% of the bank’s total assets by the end of September 2023, compared to a relative weight of 34.56% of the bank’s assets by the end of December 2022.
Customer loan portfolio grew by 9.69% and increased by EGP2.886 b during the first 9 months of the current year, to record EGP32.668 bn by the end of September 2023, compared to EGP29.782 bn by the end of December 2022.
Total financial investments and t-bills
The relative weight of the total financial investment and t-bill portfolio of the bank declined by the end of September, but nevertheless obtained the second position within its investment direction, after its relative weight reached about 32.36% of the bank’s assets by the end of September 2023, compared to 35.76% of the total assets by the end of December 2022.
Total financial investment and t-bill portfolio amounted to about EGP28.259 bn by the end of September 2023, compared to EGP30.815 bn by the end of December 2022.
Balances with banks
The share of Abu Dhabi Commercial Bank – Egypt’s balances with banks increased to obtain the third largest relative weight of its total asset portfolio, with a percentage of 16.16% by the end of September 2023, compared to a relative weight of 13.72% by the end of December 2022.
The volume of balances with banks increased by a growth rate of 19.41% and an increase of EGP2.295 bn during the first 9 months of the current year, to record their value EGP14.118 bn by the end of September 2023, compared to EGP11.823 bn by the end of December 2022.
Cash and balances with CBE
The relative weight of ADCB’s balances with the Central Bank of Egypt declined by the end of September, but nevertheless obtained the fourth position within the bank’s investment direction, with a relative weight of 11.16% of the bank’s total assets to record EGP10.141 bn by the end of September 2023, compared to a relative weight of 13.88% to record EGP11.957 bn by the end of December 2022.
Other assets
The relative weight of other assets increased slightly to obtain a percentage of 1.79% of the bank’s total assets by the end of September 2023 and record their value of about EGP1.563 bn, compared to a relative weight of 1.37% and a total value of EGP1.179 bn by the end of December 2022.
The bank’s trends in the loan market
By shedding light on the items that make up the total loan portfolio, we found that Abu Dhabi Commercial Bank – Egypt tends to grant credit to corporates at the expense of retail due to the high relative weight of them by the end of September 2023.
Corporate loans
The relative weight of total corporate loans increased, to account for 77.05% of total customer loans of the bank by the end of September 2023, compared to 74.71% of the total customer loans of the bank by the end of December 2022.
The total corporate loan portfolio of the bank increased by a growth rate of 13.23% and an increase of EGP3.104 bn during the first 9 months of the current year, to record EGP26.566 bn by the end of September 2023, compared to EGP23.462 bn by the end of December 2022.
Retail loans
Personal loan portfolio of the bank witnessed a decline in its relative weight to obtain a percentage of 22.95% of the total customer loans of the bank to record its value EGP7.911 bn by the end of September 2023, compared to a relative weight of 25.29% of the total customer loans of the bank with a value of EGP7.942 bn by the end of December 2022.
