ABK- Egypt Investment Strategy by March -2024end

The separate financial statements of Al Ahli Bank of Kuwait - Egypt, ending on March 31 2024, revealed that Bank's asset portfolio has achieved a growth rate of 18%, and an increase of EGP 17.55bn, recording EGP 115.16 bn by the end of March 2024, compared to EGP 97.61 bn by the end of December 2023.

Analyzing the investment trends of ABK- Egypt by March 2024 end:

The bank continued to allocate the majority of its funds to granting loans rather than financial investments, this is evident the remarkable different among relative weight of loans and facilities to customers compared to the relative weight of financial investments, by the end of March 2024.

Customer loans and facilities

Despite acquiring the largest share of the bank's asset portfolio, the relative weight of the bank's net portfolio of loans and facilities for customers remained unchanged, with a relative weight of 46.06% by the end of March 2024, compared to a relative weight of 46.07% by the end of December 2023.

Bank's net customer loan portfolio witnessed an increase, achieving a growth rate of 18%, an increase of EGP 8.08bn during the first 3M of the current year, to record EGP 53.05 bn by March 2024end, compared to EGP44.97bn by the end of December 2023.

Financial investments

Ranked second in terms of the bank's investment Trends, relative weight acquired 20.39% of the bank's total assets reaching EGP 23.48 bn by March 2024end compared to a relative weight of 28.16% of the bank's assets, to record EGP28.16bn by the end of December 2023.

Balances with Banks

the relative weight of Balances with Banks, witnessed a significant increase, accounted for the Third largest share of ABK- Egypt's asset portfolio with a relative weight of 16.18% of the bank's total assets by the end of March 2024, compared to a relative weight of 7.41% by the end of December 2023.

Balances with Banks jumped by 157.6% and an increase of EGP 11.40 bn to record EGP 18.64 Bn by the end of March 2024, compared to EGP 7.24 bn by the end of December 2023.

Cash and Balances with CBE

the relative weight of Cash and Balances with CBE, witnessed a slight decrease, as acquired a relative weight of 10.25% of the bank's total assets by the end of March 2024, compared to a relative weight of 11.89% by the end of December 2023.

Its total value amounted to EGP 11.81 bn at the end of March 2024, compared to EGP 11.61bn at the end of December 2023, achieving a growth rate of 1.73%.

Other Assets

The relative weight of other assets Increased at a rate of 2.37% of the bank's total assets by the end of March 2024, recording EGP 2.73 bn, compared to 2.67% and a value of EGP 2.60 bn at the end of December 2023.

Bank's Trends in the Loan Market

By examining the components of total loan portfolio, it is evident that the bank tends to grant credit to Corporates more than retail, given the higher relative weight at the end of the first 3M -2024.

Corporate Loans

Total Corporate loans accounted for a relative weight of 67.70% of the bank's total customer loans by the end of March 2024, compared to 64.50% of the bank's total customer loans by the end of December 2023.

Total Corporate loan portfolio at the bank increased, as achieved a growth rate of 23.78% and an increase of EGP 7.21 bn during the first 3 months of the current year, reaching EGP 37.52 bn by the end of March 2024, compared to EGP 30.32 bn at the end of December 2023.

Retail Loans

While the relative weight of the bank's retail loan portfolio witnessed an decrease to reach 32.30% of the bank's total customer loans by the end of March 2024, compared to a relative weight of 35.50% of the bank's total customer loans by the end of December 2023.

Bank's total retail loan portfolio recorded EGP 17.90 Bn by the end of March 2024, compared to EGP 16.69 bn by the end of December 2023, achieving a growth rate of 7.28%, and an increase of EGP 1.22 bn.