Alex Bank resource employment rate declines to 62.3% by March 2024-End

The separate financial statements of Alex Bank for the financial period ended March 31 revealed that the Bank's resource employment rate fell to 62.3% by the end of Q1 of this year, compared to 68.81% by the end of 2023.

This indicator, launched by the Firstbank Research Center, measures the traditional resource employment rate (deposits + ownership rights) against (loans + financial investments) in the Egyptian banking sector. The significant decline in the Bank's resource employment rate during Q1 of 2024 reflects the continuation of ALEXBANK's conservative policy towards its resource employment during this period. 

The Bank employed EGP 101.6 bn of its traditional resources, which recorded EGP 163.2 bn by the end of March 2024, in loans and financial investments, with EGP 68.9 bn for total customer loans, and EGP 32.7 bn for financial investments.

This is compared to employment of EGP 105.4 bn of 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.

Regarding the distribution of the traditional resources of ALEXBANK at the end of March 2024, the value of the deposits portfolio was EGP 143.3 bn, while equity recorded EGP 19.9 bn.

The Bank's loans to deposits ratio increased to 48.08% by the end of March 2024, compared to 47.95% by the end of 2023.

While financial investment to deposits ratio rose to 22.81% by the end of 2023 from 31.07% by the end of 2023.

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

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