ADCB Egypt Investment Strategy by end of 2023
First Bank
The separate financial statements of ADCB Egypt, ending on December 31, 2023, revealed a growth in the bank's total assets by 13.80% during the last year, reaching EGP 98.06 bn by the end of December 2023, compared to EGP 86.17 bn by the end of December 2022, with an increase of EGP 11.89 bn.
Analyzing the investment trends of ADCB Egypt by the end of December 2023:
The bank continued to allocate the majority of its funds to granting loans rather than financial investments, This is evident from the relative weight of loans and facilities to customers compared to the relative weight of financial investments, by the end of 2023.
Loans and Facilities to customers
The relative weight of net customer loans increased to account for the largest share of ADCB Egypt's investment trends, reaching 36.65% of the bank's total assets by the end of 2023, compared to a relative weight of 34.56% of the bank's assets by the end of December 2022.
Bank's customer loan portfolio witnessed an increase achieving a growth rate of 21% with an increase of EGP 6.16 bn during the last year, to record EGP 35.94 bn by 2023 End, compared to EGP29.78 bn by the end of December 2022.
Total Financial Investments and T-Bills
Ranked second in terms of the bank's investment Trend, despite the decline in its relative weight to record 32.46% of the bank's total assets by the end of December 2023, compared to a relative weight of 35.76% by the end of December 2022.
Total financial investments portfolio at ADCB Egypt surged by 3.3%, an increase of EGP 1.02 during the last year to record EGP 31.83 bn by the end of 2023, compared to EGP 30.82 bn by the end of December 2022.
Balances with Banks
The relative weight of Balances with Banks increased to occupy the third second largest relative weight of the bank's total asset portfolio, with a relative weight of 16.82% by the end of December 2023, compared to a relative weight of 13.72% by the end of December 2022.
ADCB Egypt's balances with banks reached EGP 16.50 bn by the end of 2023, compared to EGP 11.823 bn by the end of December 2022, achieving a growth rate of 39.53% and an increase of EGP 4.67 bn.
Cash and Balances with CBE
the relative weight of Cash and Balances with CBE, acquired a relative weight of 11.70% of the bank's total assets by the end of 2023, compared to a relative weight of 13.88% by the end of December 2022.
Its total value amounted to EGP 11.48 bn at the end of June 2023, compared to EGP 11.96bn at the end of December 2022.
Other Assets
The relative weight of other assets Increased to reach 1.67% of the bank's total assets by the end of 2023, recording EGP 1.63 bn, compared to 1.37% and a value of EGP 1.18 bn at the end of December 2022.
Bank's Trends in the Loan Market
By examining the components of total loan portfolio, it is evident that the bank tends to grant credit to Corporates more than retail, given the higher relative weight at the end of December 2023.
Corporate Loans
Total corporate loans accounted for a relative weight of 87.09% of the bank's total customer loans by the end of December 2023, compared to 74.71% by the end of December 2022.
The bank's total corporate loan portfolio increased by a growth rate of 255.78% and an increase of EGP 6.05 bn during last year, reaching a value of EGP 29.51 bn by the end of December 2023, compared to EGP 23.46 bn by the end of December 2022.
Retail Loans
The relative weight of Retail loan portfolio witnessed an increase to achieving 21.91% of the bank's total customer loans by the end of December 2023, compared to a relative weight of 25.29% by the end of December 2022,
The bank's total retail loans rose with a growth rate of 4.26% and an increase of EGP 338 mn during the last year, to record EGP 8.28 bn by the end of December 2023, compared to EGP 7.94 bn at the end of December 2022.
