Emirates NBD Investment Strategy by end of 2023
First Bank
The separate financial statements of Emirates NBD-Egypt, ending on December 31, 2023, revealed a growth in the bank's total assets by 27% during the last year, reaching EGP 128.12 bn by the end of December 2023, compared to EGP 100.94 bn by the end of December 2022, with an increase of EGP 27.18 bn.
Analyzing the investment trends of Emirates NBD by the end of December 2023:
The bank focuses on deploying a larger proportion of its funds in lending customers instead of financial investments. This is evident from the increased relative weight of Net customer loans in the bank, compared to financial investments, by the end of December 2023.
Customer Loans
The relative weight of net customer loans witnessed a Sligh increase, it accounted for the largest share of the bank's investment trend, with a relative weight of 43.49% of its total assets by the end of December 2023, compared to 42.51% by the end of December 2022.
Net portfolio of loans and facilities to customers increased by a growth rate of 30% during the last year, reaching EGP 55.72 bn by the end of December 2023, compared to EGP 42.90 bn by the end of December 2022, an increase of EGP 12.81 bn.
Total Financial Investments
The relative weight of the bank's total financial investments and T-bills witnessed a significant increase at the end of December 2023, it came in second place of the bank's investment trends by 33.78% of the bank's total assets by the end of December 2023, compared to 27.93% of total assets by the end of December 2022.
Total financial investments portfolio at Emirates NBD jumped by 53.5%, to record EGP 43.28 bn by the end of December 2023, compared to EGP 28.20 bn by the end of December 2022.
Balances with Banks
The relative weight of Balances with Banks decreased, despite it occupy the third largest relative weight of the bank's total asset portfolio, accounts of 11.50% by the end of December 2023, compared to a relative weight of 17.82% by the end of December 2022. The volume of Emirates NBD's balances with banks reaching EGP 14.73 bn by the end of December 2023, compared to EGP 17.99 bn by the end of December 2022.
Cash and Balances with CBE
the relative weight of Cash and Balances with CBE, witnessed a slight decrease, it ranked fourth in terms of the bank's investment Trend, with a relative weight of 9.46% of the bank's total assets by the end of December 2023, compared to a relative weight of 9.57% by the end of December 2022, Its total value amounted Achieved a growth rate of 25.5% to record EGP 12.12 bn at the end of December 2023, compared to EGP 9.66 bn at the end of December 2022, with an increase of EGP 2.46 bn.
Other Assets
The relative weight of other assets rose to 1.12% of the bank's total assets by the end of the last December, amounting to EGP 1.44 bn, compared to a relative weight of 1.36% and a value of EGP 1.38 bn by the end of December 2022.
Bank's Loan Market Trends By examining the components of total loan portfolio, it is evident that the bank leans more towards granting credit to corporates rather than retail, given the higher relative weight at the end of 2023.
Corporate Loans
Total corporate loans accounted for a relative weight of 76.55% of the bank's total customer loans by the end of December 2023, compared to 73.07% by the end of December 2022.
The bank's total corporate loan portfolio increased by a growth rate of 36% and an increase of EGP 12.07 bn during the last year, reaching a value of EGP 45.98bn by the end of December 2023, compared to EGP 33.91 bn by the end of December 2022.
Retail Loans
The relative weight of Retail loan portfolio declined to 23.45% of the bank's total customer loans by the end of December 2023, compared to a relative weight of 26.93% by the end of December 2022.
Despite the decrease in its relative weight, the total retail loan portfolio witnessed a growth rate of 13% and an increase of EGP 1.59 bn during the last year, to reach EGP 14.09 bn by the end of December 2023, compared to EGP 12.50 bn by the end of December 2022.
