SC Bank’s liquidity ratio jumps to 55.08% by the end of June, 2024

Suez Canal Bank’s liquidity ratio rose significantly during the current year, jumping to 55.08% by the end of June 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.

SC Bank's Cash and balances due to Banks rose significantly, rising to EGP 68.8 bn by the end of the first half of 2024, compared to EGP 33.5 bn by the end of 2023, with growth of 105.07% and an increase of EGP 35.2 bn.

Bank sbalances in SC Bank by the end of the first half of this year are distributed as follows: EGP 15.02 bn in balances with due to Central Bank of Egypt (other than mandatory reserve ratio), EGP 48.15 bn from local banks, and EGP 5.59 bn from foreign banks

As for Cash and balances due from the Central Bank of Egypt, it reached EGP 7.9 bn by the end of June 2024, distributed as follows: EGP 7.1 bn as a mandatory reserve, and EGP 804.2 mn as cash.

The Bank's assets portfolio jumped to EGP 139.1 bn by the end of June 2024, compared to EGP 102.9 bn by the end of 2023, with a growth of 35.12% and an increase of EGP 36.2 bn.

Notwithstanding the high liquidity ratio of the Suez Canal Bank, it achieved strong growth in net profits, rising 187.85% to EGP 1.8 bn during the first half of 2024, compared to EGP 628 mn during the same period in 2023, representing an increase of EGP 1.2 bn. So Suez Canal Bank tops the First Bank list of the fastest growing banks in net profits in the first half of 2024.

Net interest income rose by about 71%, reaching EGP 2.5 bn in the first half of 2024, compared to EGP 1.5 bn in the same period from 2023, with an increase exceeds EGP 1 bn. In terms of profits per share, the bank jumped at a growth rate of 186.49%, reaching EGP 3.18 per share in the first half of 2024, compared to EGP 1.11 per share in the same period from 2023

Overall, Suez Canal Bank achieved a strong performance during this year, rising its customer deposit portfolio from EGP 73.6 bn by the end of 2023, to EGP 99.1 bn by the end of June 2024, with a growth of 34.54% and an increase of EGP 25.4 bn.

Total customer loans rose by 13.36% during the first half of this year, reaching EGP 42.1 bn by the end of June 2024, compared to EGP 37.1 bn by the end of 2023, and an increase close to EGP 5 bn.

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