Sharp decline, Bank ABC's resource employment rate fell to 64.69% by the end of March, 2024

Bank ABC's separate financial statements for the financial period ended March 31 showed that the Bank's resource employment rate fell to 64.69% by the end of the first quarter of 2024, compared to 67.71% by the end of 2023.

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 Bank's resource employment rate during the first quarter of this year reflects the introduction of a recessionary policy towards the employment of its resources during this period. 

The Bank was able to employ EGP 46.9 bn from its traditional resources, which recorded EGP 72.6 bn by the end of 2023 in both loans and financial investments, with EGP 21.6 bn for financial investments, and EGP 25.4 bn for total customer loans.

While employing EGP 44.7 bn of its traditional resources, which recorded EGP 66 bn by the end of 2023 in both loans and financial investments, accounting for EGP 21.4 bn for financial investments, and EGP 23.3 bn for total customer loans

At the end of March 2024, Bank ABC's traditional resource distribution amounted to EGP 63.8 bn, while equity recorded EGP 8.8 bn.

The Bank's deposit employment rate fell to 39.73% by the end of March 2024, compared to 40.34% by the end of 2023.

Furthermore, employment for financial investments fell to 33.83% by the end of March 2024, compared to 36.97% by the end of 2023.

The decline in the Bank's employment index during the first quarter of this year strengthened its move away from the Egyptian banking sector average, with the banking sector's employment index registering about 91.9% by the end of February 2024.