ABK- Egypt Investment Strategy by September -2023end

The separate financial statements of Al Ahli Bank of Kuwait - Egypt, ending on September 30 2023, revealed that Bank's asset portfolio has achieved a growth rate of 19.57%, and an increase of EGP 14.80bn, recording EGP 90.40 bn by the end of September 2023, compared to EGP 75.60 bn by the end of December 2022.

Analyzing the investment trends of ABK- Egypt by September 2023 end:

The bank continued to allocate the majority of its funds to granting loans rather than financial investments, This is evident the remarkable different among relative weight of loans and facilities to customers compared to the relative weight of financial investments, by the end of September 2023  

Customer loans and facilities

The bank's net portfolio of loans and facilities to customers

witnessed a significant increase in its relative weight, to acquire the largest share of the bank's asset portfolio with a relative weight of 45.81% by the end of September 2023, compared to a relative weight of 43.65% of the bank's assets by the end of December 2022.

Bank's net customer loan portfolio witnessed an increase, achieving a growth rate of 25.49% with an increase of EGP 8.41bn during the first 9M of current year, to record EGP 41.42 bn by September 2023end, compared to EGP33bn by the end of December 2022.

Financial investments

Ranked second in terms of the bank's investment Trends, relative weight Witnessed an increase, as acquired 28.12% of the bank's total assets by the end of September 2023 compared to a relative weight of 25.81% of the bank's assets by the end of December 2022.

Bank's Financial Investments witnessed an increase, achieving a growth rate of 30.26% with an increase of EGP 5.91 bn during the first 9M of current year, to record EGP 25.42 bn by September 2023end, compared to EGP19.52bn by the end of December 2022.

Cash and Balances with CBE

the relative weight of Cash and Balances with CBE, witnessed a slight decrease, as acquired a relative weight of 10.80% of the bank's total assets by the end of September 2023, compared to a relative weight of 11.90% by the end of December 2022.

Its total value amounted to EGP 9.77 bn at the end of September 2023, compared to EGP 8.99 bn at the end of December 2022, achieving a growth rate of 8.61%, and an increase of EGP 774mn.

Balances with Banks

Accounted for the Fourth largest share of ABK- Egypt's asset portfolio, with 9.30% by the end of September 2023, compared to a relative weight of 14.33% by the end of December 2022, to record EGP 10.84 bn by the end of September 2023.

Other Assets

The relative weight of other assets Increased at a rate of 2.60% of the bank's total assets by the end of September of 2023, recording EGP 2.35 bn, compared to 2.27% and a value of EGP 1.71 bn at the end of December 2022.

Bank's Trends in the Loan Market

By examining the components of total loan portfolio, it is evident that the bank tends to grant credit to Corporates more than retail, given the higher relative weight at the end of the first 9M -2023.

Corporate Loans

Total Corporate loans accounted for a relative weight of 65.43% of the bank's total customer loans by the end of September 2023, compared to 64.71% of the bank's total customer loans by the end of December 2022.

Total Corporate loan portfolio at the bank increased, as achieved a growth rate of 26.31% and an increase of EGP 5.90 bn during the first 9M of the current year, reaching EGP 28.32 bn by the end of September 2023, compared to EGP 22.42 bn at the end of December 2022.

Retail Loans

While the relative weight of the bank's retail loan portfolio witnessed a slight decrease to reach 34.57% of the bank's total customer loans by the end of September 2023, compared to a relative weight of 35.29% of the bank's total customer loans by the end of December 2022

Bank's total retail loan portfolio recorded EGP 14.97 Bn by the end of September 2023, compared to EGP 12.23 bn by the end of December 2022, achieving a growth rate of 22.40%, and an increase of EGP 2.74 bn.