Sharp decline, Faisal Islamic Bank’s resource employment rate fell to 67.83% by June 2024end

The separate financial statements of Faisal Islamic Bank for the financial period ended June 30, 2024, revealed that its resource employment rate fell to 67.83% by the end of the first half of this year, compared to 72.31% by the end of 2023

This indicator, launched by the Research Centre of First Bank, measures the employment rate of traditional resources (deposits + equity), in (loans + financial investments) of banks operating in the Egyptian banking sector.

The sharp decline in the Bank's resource employment rate during the first half of this year reflects the Bank's conservative policy towards the employment of its resources during this period, which has strengthened the Bank's move away from the average resource employment rate for banks operating in the sector of more than 97%, while the Bank has only 67.83%

The Bank was able to employ EGP 134.4 bn of its traditional resources, which recorded EGP 198.1 bn by the end of March 2024 in both loans and financial investments, with EGP 117.2 bn for financial investments, and EGP 17.2 bn for total customer loans.

While employing EGP 112.3 bn of its traditional resources, which recorded EGP 155.3 bn by the end of 2023 in both loans and financial investments, with EGP 96.3 bn for financial investments, and EGP 16.1 bn for total customer loans.

At the end of the first half of this year, the Bank's traditional resources spread between EGP 165.1 bn the value of the deposit portfolio, while the value of equity received 33 bn by the end of the same period

The Bank's deposit employment rate for loans fell to 10.42% by the end of June 2024, compared to 12.30% by the end of 2023

The deposit employment rate for financial investments also decreased to 70.95% by the end of the first half of this year, compared to 73.79% by the end of 2023