Egypt’s NBE enhances its financial soundness during Q1\2022

On financial soundness index, the National Bank of Egypt has recoded capital adequacy ratio of 20.78% at the end of Q1\2022, compared to 21.39% at the end of 2021 exceeding the regulatory limits set by the Central Bank of Egypt which are consistent with Basel Accord of 12.5.

Such improvement was manifested in the decrease in the ratio of non-performing loans to total loans to a record level and the continued recording of high provision coverage ratio for non-performing loans.

NBE’s financial leverage ratio recorded 3%

However, NBE’s financial leverage ratio recorded 3% at the end of March 2022, compared to 5% at the end of 2021 which reflected the relation between tier I used in capital adequacy ratio and the bank’s non-risk-weighted assets exceeding the regulatory limits set by the Central Bank of Egypt which are consistent with Basel Accord of 3 %.

In addition, NBE was able to achieve record profit rates, as  it achieved a growth  of 222.59% during the Q1\2022 to record EGP 11.655 billion pounds, compared to EGP 3.613 billion in the same comparable period of 2021.

This was reflected on the profits  per share, which rose to 0.21 pounds per share during the first quarter of this year, compared to 0.05 pounds per share during the same period in the previous year, achieving a growth rate of 320%, and an increase of 0.16 pounds per share.

The return on the average equity of the bank posted 6.36% by the end of March 2022, while the return on the average assets of the bank recorded 0.36% during the same period of 2021.

The bank has succeeded in reducing the ratio of non-performing loans to the total loans portfolio which recorded 0.92%, compared to 1.15 % by the end of 2021, which is considered to be the lowest level in the entire banking sector.