Banks maintain their investment trends by April 2024-End, lending balances at the front

Banks operating in the Egyptian banking sector were able to perform strongly during this year, in terms of most of their financial indicators, and by monitoring the investment trends of banks during the first 4 months of 2024, customer lending and debit balances remain the top priority of the banks' investment trends.

Due to the analysis, customer lending and debit balances fell relatively low to 37.84% of total banking assets (other than the Central Bank) by the end of April 2024, compared to 38.46% by the end of last year.

Despite this decline, customer lending and debit balances jumped 27.37% during the first 4M of this year, reaching EGP 6.96 tn by the end of April 2024, compared to EGP 5.46 tn by the end of last year.

Banks tended to reduce their investment trends in securities and treasury bills, witnessing a decline in their relative weight, accounting for about 28.61% of the total assets of banks operating in the Egyptian market by the end of April 2024, compared to 36.50% by the end of 2023.

The portfolio of securities and investments in Treasury bills grew by 1.47% and increased by EGP 76 bn, moving from EGP 5.18 tn by the end of 2023 to EGP 5.26 tn by the end of April 2024.

As for Banks in-house balances, it took third place as the largest component of the Egyptian banking sector's asset portfolio, having increased its relative weight marginally to 18.80% of the sector's total assets by the end of April, compared to 18.36% by the end of 2023.

Other assets received a relative weight of 7.85% of total banking assets by the end of April 2024 compared to 3.58% by the end of last year, jumping by 184.27% and an increase of EGP 936 bn, registering a value of about EGP 1.44 tn by the end of April 2024, compared to EGP 508 bn by the end of December 2023.

It is worth noting that the assets portfolio of banks operating in the banking sector (other than the Central Bank) rose to EGP 18.4 tn by the end of April 2024, compared to EGP 14.2 tn by the end of 2023, with a growth of 26.02% and an increase of EGP 3.7 tn.

Banks' capital rose to EGP 451.25 bn by the end of April 2024, compared to EGP 410.9 bn by the end of 2023, to grow by 9.83%.

Reserves recorded about EGP 796.50 bn by the end of April 2024, compared to EGP 476.47 bn by the end of 2023, with growth of 67.17% and an increase of EGP 320 mn.

Bank allocations increased by EGP 116 bn, with a growth rate of 33.70% during the first 4M of this year, compared to EGP 346.92 bn by the end of 2023.