Customer lending and debit balances leads top 10 Banks’ employment priorities in Egypt

The financial position list of the top 10 banks operating in the Egyptian banking sector has revealed their continued trend in making customer lending and debit balances the first destination to employ their funds, the same policy they have applied since the third quarter of last year.

Customer Lending and debit balances of the top 10 banks accounted for about 37.86% of their assets by the end of the first quarter of 2024, compared to 39.35% by the end of 2023.

This is consistent with the banking sector, where banks operating in the Egyptian banking sector also relied on an investment plan based on investing in customer lending and debit balances, which were at a slightly higher rate, accounting for about 38.10% of the total assets of the sector as a whole by the end of March 2024.

Securities and investments in the treasury bills of the top 10 banks accounted for a relative weight of 31.07% of their total asset portfolio by the end of the first quarter of this year, compared to 36.40% by the end of 2023.

Egypt's top 10 banks’ balances accounted for the third largest component of the Egyptian banking sector's asset portfolio at a relative weight of 17.38% by the end of March 2024, while the remaining percentage was concentrated in other miscellaneous assets.

Policies that are followed during the period under analysis resulted in strong growth rates, The net profits of the top 10 banks operating in the Egyptian banking market rose by 238.74%, recording EGP 124.55 bn in the first quarter of this year, compared to EGP 36.769 bn during the same period in 2023, accounting for 79.73% of the net profits of banks operating in the Egyptian banking sector (other than the Central Bank).

The top 10 banks recorded net interest income of EGP 138.03 bn, accounting for 74.72% of the net interest income of banks operating in the banking sector during the first quarter of this year, while the net revenues of the top 10 banks amounted to about EGP 188.2 bn during the same period.

The financial position list of the top 10 banks (other than the Central Bank) showed their asset portfolio rising by 26.61% during the first quarter of this year, reaching EGP 14.1 tn by the end of March 2024, compared to EGP 11.1 tn by the end of 2023, controlling 78.75% of total banking sector assets.

Deposits portfolio of the top 10 banks rose by nearly a 13.5% in the first 3M of this year, to record EGP 8.95 tn by the end of March 2024, compared to EGP 7.9 tn by the end of 2023, controlling 78.37% of the banking sector's total deposits.

The size of lending and debit balances portfolio of the top 10 banks in the banking sector (other than the central bank) rose to EGP 5.3 tn by the end of March 2024, compared to EGP 4.380 tn by the end of December 2023, controlling 78.27% of the total portfolio of lending and debit balances in the banking sector.

In terms of financial soundness index of the top 10 banks operating in the sector, their non-performing loan ratio to total loans fell to 2.2% by the end of March 2024, compared to 2.4% by the end of 2023.

The top 10 banks' average actual liquidity ratio in local currency jumped to 38.2% by the end of the first quarter of this year, compared to 35.4% by the end of December 2023.

Banks' average actual liquidity ratio in foreign currencies rose to 80.7% by the end of the first quarter of this year, compared to 66.4% by the end of December 2023.

Liquidity coverage ratio in Local currency increased to 1078.6% by the end of March 2024, compared to 1072.4% by the end of 2023.

Liquidity coverage ratio in foreign currency increased 193.5% by the end of the first quarter of 2024, compared to 155.6% by the end of 2023.