CIB scores 55.26 points on First Bank financial soundness index during Q1-2024
First Bank
Commercial International Bank scores 55.26 points on the First Bank Financial soundness Index during the first quarter of 2024, compared to the sector average of 50 points on this index by the end of the same period.
The financial soundness index set by First Bank, measures the strength and soundness of the banks' financial position and ability to preserve the funds of depositors and shareholders.
The financial soundness index is based on six measures: the capital adequacy ratio, the financial leverage ratio, assets to deposits ratio, shareholders’ Equity to deposits ratio, loans to deposits ratio and non-performing loan ratio.
Turning to the index's first element, the capital adequacy ratio, this index registered 25.20% by the end of March 2024, pushing the Bank to top First Bank list of listed banks in capital adequacy ratio by the end of the first quarter of this year, exceeding the banking sector average of 18.10% by the end of the same period and the regulatory limit limits set by the Central Bank of Egypt which are consistent with Basel Accord of 12.5%.
As for the second element of the Financial soundness Index, the leverage ratio, CIB exceeds the banking sector average, with the Bank's leverage ratio at 8.7% by the end of March 2024, compared to 7.30% at the banking sector level at the end of the same period.
In terms of the third element, the non-performing loan ratio, it stood at 4.30% at the end of March 2024, compared to 2.6% at the banking sector level at the end of the same period.
As for the fourth element, loans to deposits ratio (loans/deposits), the Bank achieved 39.48% by the end of the first quarter of 2024, ranking tenth on the First Bank list of top listed banks in loans to deposits ratio by the end of March.
Regarding the fifth element of the First Bank Financial soundness Index, Asset coverage ratio for deposits (assets/deposits), the Bank registered 122.71% by the end of March 2024, compared to 156.64% in the banking sector by the end of the same period, ranking eighth on the First Bank list of top listed banks in the asset coverage ratio for deposits by the end of the first quarter of this year. Finally, in the sixth element, Shareholders’ Equity coverage ratio for deposits (equity/deposit), this index exceeds the sector average, registering 12.61% at the end of March 2024, compared to 10.88% at the banking sector level at the end of the same period.
