EBank's liquidity ratio jumps to 38.7% by June 2024-End

Export Development Bank of Egypt’s separate financial statements revealed a significant rise in the bank's liquidity ratio during the first half of this year, jumping to 38.72% by the end of June 2024, compared to 25.61% by the end of last year.

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.

EBank's balance Due from banks saw an extraordinary 124% growth in the first 6 months of this year, reaching EGP 46.44 bn by the end of June 2024, compared to EGP 20.72 bn by the end of December 2023, with an increase of EGP 25.72 bn. 

Balances Due from banks, by the end of the first half of 2024 were spread between Pound33.012 bn as balances with the Central Bank of Egypt (other than the mandatory reserve ratio), and about Pound8.675 bn as domestic banks, while foreign banks received Pound4.791 bn

As for Central Bank cash and balances, it lost about 60.46% after amounting to EGP 14.74 bn by the end of the first half of 2024, compared to 9.19 bn by the end of 2023, and recalling its distribution, the mandatory reserve was EGP 14.35 bn, while the cash recorded about EGP 409 mn.

The bank's assets portfolio jumped to EGP 157.99 bn by the end of June 2024, compared to EGP 116.76 bn by the end of last year, to grow by 35.32%, an increase of about EGP 41.24 bn.

Notwithstanding its high liquidity ratio, the Bank saw strong net profit growth of 93.08% to EGP 2.32 bn during the first half of 2024, compared to 1.20 bn during the same period in 2023.

Notwithstanding its high liquidity rate, the Bank saw strong net profit growth of 93.08% to EGP 2.32 bn during the first half of 2024, compared to 1.20 bn during the same period in 2023.

Net interest income increased by 69.10% to EGP 3.95 bn in the first half of 2024, compared to EGP 2.34 bn in the same period in 2023, with an increase of EGP 1.62 bn.

Overall, EBank achieved a strong performance during the first half of this year, after its customer deposit portfolio rose to EGP 122.98 bn by the end of June 2024, compared to EGP 86.933 bn by the end of 2023, with a growth of 41.47% and an increase of EGP 36.05 bn.

Total customer loans rose by 14.84% in the first half of this year, reaching EGP 62.72 bn by the end of June 2024, compared to EGP 54.62 bn by the end of 2023.

For more about EBank and its highlights, click here