After Retail Banking Department establishment, How SC Bank's retail loans portfolio grew?
Mai El-Kafoury
The retail banking portfolio has witnessed record growth since Suez Canal Bank launched the Retail Banking Department in 2017, as part of the bank's restructuring plan. The retail loans portfolio jumped by 914.72%, reaching EGP 3.6 bn by the end of September 2023, compared to EGP 352.3 mn by the end of 2017, with an increase of EGP 3.2 bn.
Tracking the journey of retail loans during the period under analysis, the highest annual growth rate of the portfolio was recorded in 2020, rising by 56.54%, to EGP 1.2 bn by the end of the year, compared to EGP 772.2 mn by the end of 2019, with an increase of EGP 436.6 mn.
While the highest increase the portfolio witnessed was in 2022, with the growth of the retail banking portfolio rising by EGP 967.3 mn, to reach EGP 2.8 bn by the end of the year, compared to EGP 1.8 bn by the end of 2021, with a growth of 54.05% on an annual basis.
In terms of portfolio performance over the past year, it jumped by 29.7% in the first 9M of 2023, reaching EGP 3.6 bn by the end of September, after registering EGP 2.8 bn by the end of 2022, with an increase of EGP 817.9 mn.
As for the directions of the Suez Canal in the loan market, the Bank tends to corporate loans in comparison with retail loans. The corporate loans accounted for 90.20% of the Bank's total loans by the end of September 2023. This percentage has declined during the period under analysis, accounting for 97.71% by the end of 2017.
While a growing direction of the Bank has been observed towards increasing total retail loans since the launch of independent department, which has been reflected in the relative weight of the retail loans portfolio, rising to 9.80% of the Bank's total customer loans by Q3 of 2023, compared to 2.29% by the end of 2017.
It should be noted that the total customer loans of Suez Canal Bank rose by 137.36% during the period under analysis, reaching EGP 36.5 bn by the end of Q3 of last year, compared to EGP 15.4 bn by the end of 2017, with an increase of EGP 21.1 bn.
The Bank's corporate loans portfolio rose from EGP 15 bn by the end of 2017, to EGP 32.9 bn by the end of September 2023, with a growth of 119.1% and an increase of EGP 17.9 bn.
