AAIB ranked forth on First Bank credit competitiveness index

A survey conducted by our website "First Bank" to monitor the most notable changes on the First Bank Credit Competitiveness Index during the first 9M of 2023 revealed the progress of the Arab African International Bank to the fourth position instead of fifth position in the same period in 2022 to replace QNB AlAhli, which dropped to fifth place on the index, NBE, Banque Misr and CIB retained the top three positions.

The Credit Competitiveness Index launched by First Bank measures banks' success in raising their loans portfolio, and depends on the value of the portfolio increase achieved during the period under analysis.

AAIB progress followed a rise in total customer loans and facilities equivalent to EGP 29.5 bn to reach the equivalent of EGP 155.7 bn by the end of September 2023, compared to 126.1 bn by the end of December 2022, with a growth rate of 23.42%, achieving the fastest quarterly growth rate for the bank in 5 years. This reflects the Bank's expansion, and its success in attracting a wide range of borrowers, whether corporates or individuals, through the introduction of credit products with competitive return.

This performance is due to the bank's significant development in the corporate loans market, where its portfolio rose to EGP 136.44 bn by the end of September 2023, compared to EGP 109.18 bn by the end of 2022, with an estimated increase of EGP 27.26 bn, which is the highest quarterly increase in the portfolio in 8 years.

Despite the Bank's growing interest in significantly increasing its corporate loans, it has not neglected to provide adequate support to individuals, as reflected in the performance of its retail loans portfolio, which rose by EGP 2.28 bn, reaching EGP 19.24 bn by Q3 of 2023, compared to EGP 16.96 bn by the end of 2022, recording the fastest quarterly growth to the portfolio in 6 years.

The new Executive management of the Bank, led by Tamer Waheed, the Chief Executive Officer, who was appointed in May 2023, intends to introduce AAIB strongly into the loans market for the purpose of restoring the large segment of its market share that it has lost in recent years, which pushed it out of the list of the top 5 banks operating in the Egyptian banking sector in the loans market But its return is very close, especially as it achieved remarkable progress in its loans portfolio. AAIB achieved a strong performance over the past year, jumping its net profits by 92%, registering EGP 5.2 bn in the first 9M of 2023, compared to EGP 2.68 bn in the same period of 2022, recording the fastest quarterly growth in the bank's net profits in 8 years.

Net interest income rose by 106% to reach EGP 11.054 bn during the first 9M of 2023, compared to 5.36 bn during the same period in 2022.

Net fees and commissions income rose during the first 9M of 2023 at a growth rate of 156% to reach around EGP 2.2 bn, compared to 847 mn during the same period in 2022.

Its customer deposits portfolio jumped by 49.51%, reaching EGP 326.43 bn by the end of September 2023, compared to EGP 218.33 bn by the end of 2022, achieving the fastest quarterly growth in the portfolio in 8 years.

The bank's assets increased by EGP 147.91 bn, bringing the total portfolio to EGP 474.31 bn by Q3 of 2023, compared to EGP 326.39 bn by the end of 2022, with a growth of 45.32% during the first 9M of 2023.

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