ALEXBANK continues to reduce resource employment rate to 68.81%

The Bank's separate financial statements for the fiscal year ended December 31 revealed that the Bank's resource employment rate fell to 68.81% by the end of 2023, compared to 73.17% 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 slight decline in the Bank's resource employment rate in 2023 reflects ALEXBANK's conservative policy towards resource employment during this period.

The bank was able to employ EGP 105.4 bn from its traditional resources, which recorded EGP 153.1 bn by the end of 2023 in both loans and financial investments, with EGP 41.4 bn for financial investments, and EGP 63.9 bn for total customer loans.

This compared to employing EGP 91.9 bn of its traditional resources, which recorded EGP 125.6 bn by the end of 2022 in loans and financial investments, amounting to EGP 32.3 bn for financial investments, and EGP 59.6 bn for total customer loans.

Regarding the distribution of the traditional resources of ALEXBANK at the end of 2023, the value of the deposit portfolio was EGP 133.3 bn, while equity recorded EGP 19.8 bn.

The Bank's deposit employment rate for granting loans fell to 47.95% by the end of 2023, compared to 53.85% by the end of 2022.

While the deposit employment rate for financial investments rose to 31.07% by the end of 2023 compared to 29.20% 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, with the banking sector's employment index registering about 96.57% by the end of 2023.