Agricultural Bank of Egypt Customer Deposits Portfolio rose by EGP 88 bn since 2021
Agricultural Bank of Egypt's Customer Deposits Portfolio has grown significantly over the past two years, rising from EGP 95.975 bn by the end of 2021, to EGP 184.252 bn by the end of 2023, with a growth of 92% and an increase of EGP 88.3 bn, reflecting customer confidence in the bank's ability to manage their savings and facilitate their transactions through the latest banking systems.
The increases resulted in an increase in market share to 1.82% of total banking sector deposits by the end of 2023, compared to 1.49% by the end of 2021.
The Bank achieved accelerated growth rates in its business volume in 2023, driven by a package of policies and actions taken by its Board of Directors under the leadership of Alaa Farouk, Chairman of the Board of Directors, which reflected the development of the Bank's businesses.
At the same time, the comprehensive development plan implemented by the Bank in all sectors has begun to achieve success, reflecting the confidence and satisfaction of the Bank's customers as a result of the improved quality of banking and financing services provided by the Bank and meeting all the needs of its customers.
The Bank aimed to adjust agricultural crop credit categories more than once in less than a year by 25% to 70% to help farmers cope with the dramatic rise in production supply costs. The crop loans portfolio was EGP 23.629 bn by the end of 2023, compared to EGP 10.5 bn at the end of December 2022, with growth of 123% on an annual basis. The Bank seeks to consolidate the concept of entrepreneurship as a locomotive for economic growth. It has activated the role of Business Services Development Centres within the NilePreneurs Initiative in accordance with the directives of the Central Bank of Egypt as 12 Business Development Centers were opened within a plan to open 30 centers in all governorates.
The Agricultural Bank of Egypt has also intensified its efforts over the past period to support and finance individuals and corporates benefiting from major agrarian reform projects, which aim to increase the agricultural land like Egyptian rural Development project, 1.5 mn acres project, the New Delta and the Future of Egypt and Toshka Project, among others, by providing financing programmes that meet all the needs of farmers and producers to stimulate agricultural investment, including EGP 1.6 bn to finance agricultural projects in the New Valley.
Contract farming has received a significant share in the Bank’s policies and business plans which has contributed to increasing the volume of loans for contract farms to more than EGP 2.2 bn, Among them is EGP 1.6 bn to grow 130 1,000 acres of cane in the world and EGP 136 mn to finance contract wheat farming, benefiting more than 5000 farms to grow 14 thousand acres; EGP 49 mn to finance strawberry contract farming, in addition to financing sugar beet contract farming
As part of the efforts of the Agricultural Bank of Egypt to support and develop livestock, the portfolio of livestock production projects loans reached about EGP 10.199 bn by the end of 2023.
The Bank also funded small-scale breeders and farmers to encourage them to raise high-productivity genetically enhanced cows, in line with President Abdelfattah Elsisi's directives to improve the standard of living of smallholder farmers and breeders, and to encourage them to raise genetically improved livestock breeds, thereby contributing to livestock development and covering the import gap of meat and dairy products.
At the same time, funding for the establishment and development of milk collection centres amounted to approximately EGP 335 mn to finance 84 centres by the end of last year.
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