NBE Resource Employment rate jumps to 113.63% during H1-2023

NBE continued its highly optimistic expansion policy over the past year, as reflected in the significant jump in its resource employment rate, rising to 113.63% by the end of H1-2023, compared to 104.76% by the end of 2022.

This indicator, introduced by the research center affiliated with First Bank, measures the traditional resource employment rate (deposits + Equity) in (loans + financial investments) for banks operating in the Egyptian banking sector.

The significant jump in this indicator during H1-2023 reflects the adoption of an optimistic policy in the Bank’s resource employment during this period, which prompted it to employ all its traditional resources to both loans and financial investments and add to them from other resources.

The Bank employed EGP 4.2 tn in loans and financial investments by the end of H1-2023, with EGP 2.10 tn for total customer loans, and EGP 2.09 tn for total financial investments, while its traditional resources recorded EGP 3.7 tn by the end of the same period.

NBE employed EGP 3.61 tn in loans and financial investments, with EGP 1.88 tn for financial investments and EGP 1.73 tn for total customer loans, while the Bank's traditional resources recorded EGP 3.44 tn by the end of 2022.   

As for the distribution of NBE’s traditional resources at the end of Q2-2023, the value of deposit portfolio reached EGP 3.4 tn while total equity amounted to EGP 248.7 mn by the end of the same period

The Bank's deposit employment rate for granting loans jumped to 61.02% by the end of H1-2023, compared to 53.68% by the end of 2022, and the deposit employment rate for financial investments rose to 60.82% by the end of June, compared to 58.34% by the end of the same period.

The significant jump in the NBE employment index of 113.63% by the end of Q2-2023 reflects the Bank's full optimistic policy in terms of loans and financial investments, surpassing the average in the banking sector of 93.05% by the end of the same period.