Top 10 banks changing their investment trends in 2023, Lending balances at the front

With global and local events changing this year, and interest rates rising in an effort by central banks to rein in accelerated inflation, the top 10 banks operating in the Egyptian banking market changed their investment trends in 2023.

The top 10 banks have tended to reduce their tendencies towards investing in securities and treasury bills, as evidenced by the decline in their relative weight, making up the total portfolio about 34.45% of their total assets by the end of September 2023, as opposed to 39.41% by the end 2022.

The largest 10 banks operating in the banking sector have also marginally reduced their orientation towards investing in customer lending and debit balances, recording 35.58% of their total assets by Q3- 2023, as opposed to 36.62% by the end of 2022, becoming the first destination for the largest 10 banks investments, while securities and treasury bills are the second.

The balances of the top 10 banks inside accounted for the third largest component of the Egyptian banking sector's asset portfolio by Q3- 2023, with a relative weight of 15 .98%, compared to the 15.07% by the end of 2022, and the remainder was concentrated in other miscellaneous assets.

The policies pursued by the top 10 banks operating in the Egyptian banking sector led to strong results, with net profits jumping by 118%, reaching EGP 159.5 bn during the first 9M of 2023, compared to EGP 73.1 bn during the same period in 2022, with an increase of EGP 86.4 bn.

Net activity revenue rose to EGP 369.1 bn during the first 9M of 2023, compared to EGP 207 bn during the same period of 2022, with a growth of 78.4% and an increase of EGP 162.2 bn.

Net revenue rose from EGP 170.7 bn during the first 9M of 2022, to EGP 315.6 bn during the same period of 2023, with an estimated growth of 84.9% and an increase of EGP 144.9 bn.

The financial position statement of the top 10 banks (other than the Central Bank) showed their asset portfolio rising by 30.47% during the first 9M of this year, reaching EGP 11.7 tn by the end of September 2023, compared with EGP 9 tn by the end of 2022, with an increase of EGP 2.7 tn.

The size of the portfolio of lending and debit balances of the top 10 banks in the banking sector (other than the Central Bank) recorded EGP 4.2 tn by the end of September 2023, compared with EGP 3.3 tn by the end of 2022, with a growth of 26.7% and an increase of EGP 877 bn.

The Egyptian bank balances of top 10 banks rose to EGP 1.9 tn by the end of Q3- 2023, compared to EGP 1.4 tn by the end of 2022, with growth of 38.3% and an increase of EGP 517 bn.

The growth of securities and investments in Treasury bills in the top 10 banks exceeded the EGP 4 tn barrier by the end of September, compared to EGP 3.5 tn by the end of 2022, with growth of 14% and an increase of EGP 495 bn.

The portfolio of the top 10 banks rose by 14.1% and an increase of EGP 937 bn during the first 9M of the current year, moving from EGP 6.7 tn by the end of December 2022, to EGP 7.6 tn by the end of September 2023.