SC Bank’s liquidity ratio jumps to 50.37% by the end of March, 2024

The liquidity ratio of the Suez Canal Bank rose significantly during the current year, jumping to 50.37% by the end of March 2024, compared to 40.73% by the end of 2023.

The liquidity ratio in banks is defined as a certain ratio that reflects the bank's ability to meet its short-term liabilities without the need to liquidate long-term assets or loans, and the ratio is calculated as follows (cash and balances due from the Central Bank + balances due from banks)/(total assets).

This ratio is an indicator of the Bank's financial ability and its ability to cover deposits and other financial liabilities in the short term, but may be an indicator of low profitability if liquidity is not effectively exploited in profitable investments.

Cash and balances due from the Central Bank of Egypt rose significantly, rising to EGP 10.7 bn by the end of March 2024, compared to EGP 8.4 bn by the end of 2023, with a growth of 27.88% and an increase of EGP 2.3 bn.

Cash and balances due from the Central Bank of Egypt in SC Bank were distributed by the end of the first quarter of this year as follows: EGP 10.1 bn in mandatory reserve and EGP 606.6 mn in cash.

In terms of balances Due from banks, it jumped by 72.31% in the first quarter of this year, reaching EGP 57.8 bn by the end of March 2024, compared to EGP 33.5 bn by the end of 2023.

Bank balances in SC Bank at the end of the first quarter of this year are distributed as follows: EGP 4.5 bn in balances Due from CBE (other than mandatory reserve ratio), EGP 47.8 bn due from local banks, and EGP 5.5 bn due from foreign banks as of the end of March 2024.

The bank's assets portfolio jumped by 32.13% in the first quarter of this year, to surpass EGP 136 bn by the end of March 2024, up from EGP 102.9 bn by the end of 2023, with an increase of EGP 33.1 bn.

Notwithstanding the high liquidity ratio of Suez Canal Bank, it achieved strong growth in net profits, jumping by 143.7%, up to EGP 611.2 mn in the first quarter of 2024, compared to EGP 250.9 mn in the same period in 2023, representing an increase of EGP 360.4 mn.

Net fees and commissions income rose to EGP 1.1 bn in the first quarter of 2024, compared to EGP 707.2 mn during the same period of 2023, with a growth of 54.2% and an increase of EGP 383.5 mn.

In terms of profits per share, the bank jumped at a growth rate of 145.6% during the period from January to March 2024, after the share of Suez Canal Bank reached a net profit of about EGP 1.08 per share during the first quarter of this year, compared to EGP 0.44 in the first quarter of 2023.

The rate of return on average assets rose to 0.51% in the first quarter of 2024, compared to 0.31% in the first quarter of 2023.

The return on average equity also jumped to 7% in the first quarter of 2024, compared to 4.47% in the first quarter of 2023.

Overall, Suez Canal Bank saw remarkable growth in its financial indicators during the first quarter of this year, with the bank's total customer loans rising to EGP 44.3 bn by the end of March 2024, compared to EGP 37.1 bn by the end of 2023, with a growth of 19.32%, and an increase of EGP 7.2 bn.

Bank retail loans rose by 10.3% in the first quarter of this year, reaching EGP 4.1 bn by the end of March 2024, compared to EGP 3.7 bn by the end of 2023, with an increase of EGP 380.8 mn.

The Bank's corporate loans portfolio rose by 20.33% in the first quarter of this year to reach EGP 40.19 bn by the end of March 2024, compared to EGP 33.4 bn by the end of 2023, with an increase of EGP 6.8 bn.

Total deposits rose by 27.13%, reaching EGP 93.6 bn by the end of March 2024, compared to EGP 73.6 bn by the end of December 2023, with an increase of nearly EGP 20 bn.

For more about Suez Canal Bank and its highlights, click more