Bank’s loans to services sector rose to EGP 89.4 bn in 3M

The loans of banks operating in the Egyptian banking market (other than the Central Bank) for the services sector achieved a significant progress during Q1 of this year, rising by about 11.09%, with an increase of EGP 89.4 bn.

According to the latest data from the Central Bank, banks’ loans provided to the service sector recorded EGP 895.2 bn by the end of March 2024, compared to EGP 805.8 bn by the end of 2023.

Banks' loans balances for the services sector rose by 4.31%, registering EGP 675.5 bn by the end of March 2024, compared to EGP 647.6 bn by the end of 2023, with an increase of EGP 27.9 bn.

This significant surge service sector’s loans in local currency as a result of an increase in banks' loans to the private service sector in local currency to EGP 609.6 bn by the end of March 2024, compared to EGP 576.5 bn by the end of 2023, with a growth of 5.73%, and an increase over EGP 33 bn.

Banks’ loans balances for the services sector rose to the equivalent of EGP 219.7 bn by the end of the first quarter of this year, compared to EGP 158.2 bn by the end of 2023, with a growth rate of 38.88% and an increase of EGP 61.5 bn.

The significant leap achieved by the service sector in foreign currencies is due to an increase in banks' loans to the private sector in foreign currency by 40.45% during the first 3M of this year, reaching the equivalent of EGP 189.7 bn by the end of March 2024, compared to EGP 135.1 bn by the end of 2023.

It should be noted that in this sector there are many opportunities in service activities that can double the exports of Egyptian services, most notably banking services. The Egyptian banking sector has made significant progress in implementing the "Basel 1, 2 and 3" decisions for banking control of banks operating in Egypt; Thus, Egyptian banks have great opportunities to spread in Arab and African foreign markets and raise their share in regional banks. Shipping and logistics services also have many opportunities, especially since Egypt is one of the countries that plays an important role in shipping services, because of its unique geographical location and possession of a global shipping corridor, "Suez Canal", which qualifies it to play an important and leading role in the field of shipping services, ports and logistics, especially in the Arab and African region and the countries bordering Mediterranean Sea and Red Sea, especially since Egypt has a variety of sea ports between specialized (38 ports) and commercial (18 ports) on Red Sea and Mediterranean Sea.