ABK- Egypt's liquidity ratio soar to 36.82% by June 2024-End

Al Ahli Bank of Kuwait - Egypt’s separate financial statements revealed a significant rise in the bank's liquidity ratio during the first half of this year, jumping to 36.82% by the end of June 2024, compared to 19.30% 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. Cash and balances due from the Central Bank of Egypt increased to EGP 14.7 bn by the end of June 2024, compared to EGP 11.6 bn by the end of 2023, with a growth rate of 26.64% and an increase of EGP 3 bn, distributed as follows: EGP 13 bn as a mandatory reserve, and EGP 1.7 bn as cash. ABK- Egypt's balance from banks jumped by 344.98% during the first 6 months of this year, reaching EGP 32.2 bn by the end of June 2024, compared to EGP 7.2 bn by the end of December 2023, with an increase of EGP 25 bn.  The Bank balances in ABK Egypt are distributed as follows: EGP 4.1 bn in balances with due to Central Bank of Egypt (other than mandatory reserve ratio), EGP 24.1 bn from local banks, and EGP 4 bn from foreign banks during H1-2024 The bank's assets portfolio jumped to EGP 127.4 bn by the end of June 2024, compared to EGP 97.6 bn by the end of last year, to grow by 30.5%, an increase of about EGP 29.8 bn. Notwithstanding its high liquidity ratio, the Bank saw strong net profit with a growth of 154% to record EGP 4.3 bn during the first half of 2024, compared to EGP1.7 bn during the same period in 2023, an increase of EGP 2.6 bn. Net interest income increased by 68% to EGP 3 bn in the first half of 2024, compared to EGP 1.8 bn in the same period in 2023, with an increase of EGP 1.2 bn. Net Fees and Commissions Income rose by 82.6% to record EGP 855.4 mn in the first half of 2024, compared to EGP 468.5 mn in the same period in 2023, with an increase of EGP 386.9 mn Overall, ABK-Egypt achieved a strong performance during the first half of this year, after its customer deposit portfolio rose to EGP 103.8 bn by the end of June 2024, compared to EGP 83.1 bn by the end of 2023, with a growth of 25% and an increase of EGP 20.7 bn. Total customer loans rose by 29.3% in the first half of this year, reaching EGP 60.8 bn by the end of June 2024, compared to EGP 47 bn by the end of 2023. For more about ABK-Egypt and its highlights, click here