Agricultural Bank of Egypt’s Loans Portfolio grows by 40% in two years

Agricultural Bank of Egypt has been able to significantly strengthen its loans portfolio over the past two years, rising by about 40%, to reach EGP 78.8 bn by the end of 2023, compared to EGP 56.3 bn by the end of 2021, with an increase of EGP 22.5 bn.

The number of customers benefiting from these loans increased to 543,177, confirming the success of the Bank's strategy and pursuing serious credit policies to link loans to production, enabling the Bank to exercise its important developmental role in financing agricultural projects and associated industrial activities and stimulate investment in the agricultural sector in all its productive areas to achieve the State vision in maximizing the productivity and the added value of the agricultural sector in Egypt As for the retail banking sector, the Bank's credit transactions rose to about EGP 14.847 bn, benefiting about 97.336 thousand customers, amounting to18% of the size of the loans portfolio.

According to the loan portfolio classification, the Bank has achieved significant growth in the volume of loans aimed at financing medium, small and micro activities and projects to approximately 64% of the loan portfolio due to the importance of this vital sector in supporting the national economy and providing employment opportunities especially in the agricultural sector and related activities.

The number of micro projects financed by the Bank by the end of December 2023 increased to 438,943 projects for individuals while corporates received loans amounted to EGP 35.796 bn.

The number of small corporates also climbed to 6.614, amounting to approximately EGP 6.497 bn by the end of 2023, while the number of medium-sized funded corporates increased to 118, with loans accounted to EGP 4.989 bn by the end of the same period.

This reflects the Bank's great interest in the development of this sector of projects, while the Bank's role in financing projects and major corporates has grown to maximize its role in supporting and developing the national economy and stimulating investment in the agricultural sector and related activities.

This is in addition to the ability of these corporates to provide direct and indirect employment to a wide range of agricultural workers and related activities. The number of major corporates financed by the Bank increased to 166 companies with an estimated loans volume of EGP 16.698 bn by the end of 2023.

Loans to support and finance the agricultural sector and related industries represent about 80% of the loans portfolio by the end of 2023.

The Bank also 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 last year.