Faisal Bank Investment Strategy by September -2023 End
First Bank
The separate financial statements of Faisal Islamic Bank, ending on September 30, 2023, revealed a growth in the bank's total assets by 12.74% during the first 9 months of the last year, reaching EGP 171 bn by the end of September 2023, compared to EGP 151.6 bn by the end of December 2022, with an increase of EGP 14.4 bn.
Analyzing the investment trends of Faisal Bank by the end of September 2023:
The bank focuses on deploying a larger proportion of its funds in financial investments instead of lending to customers. This is evident from the increased relative weight of total financial investments in the bank, compared to the percentage of customer loans by the end of September 2023.
Total Financial Investments
Although its relative weight has noticeably declined, the total portfolio of Financial Investments held the largest share of the bank's investment trends, accounting for a relative weight of 56.22% of its assets by the end of September 2023, compared to 61.89% by the end of December 2022.
Total financial investments portfolio at Faisal Bank increased by a growth rate of 2.41% and an increase in of EGP 2.27 bn, reaching EGP 96.12 bn by the end of September 2023, compared to EGP 93.9 bn by the end of December 2022.
Balances with Banks
The relative weight of Balances with Banks increased to occupy the second largest relative weight of the bank's total asset portfolio, amounting to 22.87% by the end of September 2023, compared to a relative weight of 15.52% by the end of December 2022.
The volume of Faisal Bank's balances with banks increased by a growth rate of 66.17% and an increase of EGP 15.57 bn during the first 9 months of the last year, reaching EGP 39.10 bn by the end of September 2023, compared to EGP 23.5 bn by the end of December 2022.
Customer Finance
Net portfolio of loans and facilities to customers obtained the third position in the bank's investment trends, despite a slight decrease in its relative weight to 7.91% of the bank's total assets by the end of September 2023, compared to a relative weight of 8.36% by the end of December 2022.
Financing and facilities to customers portfolio in Faisal Bank increased by a growth rate of 6.54% and an increase of EGP 830 mn, reaching EGP 13.51 bn by the end of September 2023, compared to EGP 12.7 bn by the end of December 2022.
Cash and Balances with CBE
Despite a slight decrease in the relative weight of Cash and Balances with CBE, it ranked fourth in terms of the bank's investment Trend, with a relative weight of 7.61% of the bank's total assets by the end of September 2023, compared to a relative weight of 8.32% by the end of December 2022, Its total value amounted to EGP 13.01 bn at the end of September 2023, compared to EGP 12.6 bn at the end of December 2022, with a growth rate of 3.17% and an increase of EGP 400 mn during the first 9 months of last year.
Other Assets
The relative weight of other assets declined to 3.31% of the bank's total assets by the end of 2023, amounting to EGP 5.66 bn, compared to a relative weight of 3.58% and a value of EGP 5.43 bn by the end of December 2022, achieving a growth rate of 4.23% during the first 9 months of last year.
Bank's Loan Market Trends By examining the components of total loan portfolio, it is evident that the bank leans more towards granting credit to corporates rather than retail, given the higher relative weight at the end of September 2023.
Corporate Loans
Total corporate loans accounted for a relative weight of 80.29% of the bank's total customer loans by the end of September 2023, compared to 82.75% by the end of December 2022.
The bank's total corporate loan portfolio increased by a growth rate of 4.98% and an increase of EGP 599 mn during the 9 months of last year, reaching a value of EGP 12.64 bn by the end of September 2023, compared to EGP 12.04 bn by the end of December 2022.
Retail Loans
The relative weight of Retail loan portfolio witnessed an increase to achieving 91.71% of the bank's total customer loans by the end of September 2023, compared to a relative weight of 17.25% by the end of December 2022, as increased by a growth rate of 23.63% and an increase of EGP 593 mn during the first 9 months of last year, to record EGP 3.10 bn by the end of September 2023, compared to EGP 2.51 bn at the end of December 2022.
