AUB - Egypt follows conservative policy and its resource employment rate falls to 85.9% by 2023-End

Ahli United Bank - Egypt's separate financial statements showed its resource employment rate fell to 85.90% by the end of 2023, compared to 87.72% by the end of 2022.

This indicator, launched by the Research Centre of First Bank, measures the employment rate of traditional resources (deposits + equity), in (loans + financial investments) of banks operating in the Egyptian banking sector.

The decline in the resource employment rate of the Bank is attributable to the adoption of a provisional policy towards the employment of its resources in 2023.

Turning to the Bank's figures, we find that it employs EGP 88.7 bn from its traditional resources, which recorded EGP 103.3 bn by the end of 2023 in loans and financial investments, with EGP 21.6 bn for financial investments, and 67.2 bn for total loans.

While employing EGP 70.5 bn from its traditional resources, which recorded EGP 80.3 bn by the end of December last year in the loan and financial investment, with EGP 17 bn for financial investments, and EGP 53.5 bn for total loans by the end of 2022.

At the end of 2023, the Bank's traditional resources distributed between EGP 90.1 bn in deposit portfolio, while the value of equity received 13.2 bn by the end of the same period.

The Bank's deposit employment rate for granting loans fell to 74.56% by 2023, compared to 76.64% by 2022.

Deposit employment for financial investments fell to 23.95% by the end of last year, compared to 24.31% by the end of 2022.

The decline in the Bank's employment index in 2023 has increased its distance from the Egyptian banking sector average as employment index of the banking sector registered about 96.57% by the end of 2023.