Financial Investments is First Destination of Customer Deposits Employment in NBE

In the light of the economic changes in the local and global levels that we have witnessed over the past year, and the new challenges facing different economic systems and the banking sector in particular, NBE has resorted to changes in its investment policy.

The National Bank of Egypt has significantly strengthened its direction towards investing in loans, concentrating about 42.35% of the Bank's total assets by H1 of 2023, compared to 38.11% by the end of 2022. Although its relative weight has risen, financial investments have remained the first investment destination of Customer Deposits Employment.

The Bank maintained its policy on financial investments, as reflected in its relative weight stability, registering 43.78% of the Bank's total assets by the end of Q2 of 2023, compared to 43% by the end of 2022.

Bank balances inside accounted for the third largest component of the Bank's asset portfolio, with a relative weight of 7.05% of the total assets of NBE by the end of June 2023, compared to 6.43% by the end of 2022, while the remaining percentage was concentrated in other various assets.

NBE's policies during the period under analysis resulted in strong growth rates, with net profits jumping by 75.45%, registering EGP 24.7 bn during H1 of 2023, compared to EGP 14.1 bn during the same period in 2022, with an increase of EGP 10.6 bn.

Net interest income increased by 70.8%, with an increase of EGP 32.48 bn from January to last June, to record EGP 78.4 bn in H1 of 2023, compared to EGP 45.9 bn in the same period in 2022.

Net fees and commissions income jumped to EGP 8.2 bn during H1 of 2023, compared to EGP 5.1 bn during the same period in 2022, with a growth of 59.14% and an increase of EGP 3 bn.

The Bank's asset portfolio rose to EGP 4.78 tn by the end of H1 of 2023, compared to EGP 4.4 tn by the end of 2022, with growth of 9.5% and an increase of EGP 413.7 bn.

Total loans rose from EGP 1.7 tn by the end of 2022 to EGP 2.1 tn by the end of Q3 of 2023, with growth of 21.5% and an increase of EGP 372.5 bn.

Total financial investments rose by 11.45%, registering EGP 2.1 tn by the end of June 2023, compared to EGP 1.9 tn by the end of 2022, with an increase of EGP 215.3 bn.

Bank balances rose from EGP 280.98 bn by the end of 2022 to EGP 337.1 bn by the end of the H1 of 2023, bringing a growth rate of 20% and an increase of EGP 56.1 bn.

The deposit portfolio jumped to EGP 3.4 tn by the end of Q2 of 2023, compared to EGP 3.2 tn by the end of 2022, with a growth of 7% and an increase of EGP 222.8 bn.