ABK- Egypt Investment Strategy by June -2024end
First Bank
The separate financial statements of Al Ahli Bank of Kuwait - Egypt, ending on June 30 2024, revealed that Bank's asset portfolio has achieved a growth rate of 30.48%, and an increase of EGP 29.75bn, recording EGP 127.36 bn by the end of June 2024, compared to EGP 97.61 bn by the end of December 2023.
Analyzing the investment trends of ABK- Egypt by June 2024 end:
The bank continued to allocate the majority of its funds to granting loans over other indicators by the end of June 2024.
Customer loans and facilities
Despite acquiring the largest share of the bank's asset portfolio, the relative weight of the bank's net portfolio of loans and facilities for customers witnessed a slight decrease; it recorded a relative weight of 45.69% by the end of June 2024, compared to a relative weight of 46.07% by the end of December 2023.
Bank's net customer loan portfolio witnessed an increase, achieving a growth rate of 29.39%, an increase of EGP 13.22bn during the first 6M of the current year, to record EGP 58.19 bn by June 2024end, compared to EGP44.97bn by the end of December 2023.
Balances with Banks
the relative weight of Balances with Banks, witnessed a significant increase, accounted for the second largest share of ABK- Egypt's asset portfolio with a relative weight of 25.28% of the bank's total assets by the end of June 2024, compared to a relative weight of 7.41% by the end of December 2023.
Balances with Banks jumped by 345% and an increase of EGP 24.96 bn to record EGP 32.20 Bn by the end of June 2024, compared to EGP 7.24 bn by the end of December 2023.
Financial investments
Ranked third in terms of the bank's investment Trends, relative weight acquired 13.46% of the bank's total assets reaching EGP 17.14 bn by June 2024end compared to a relative weight of 28.85% of the bank's assets, to record EGP28.16bn by the end of December 2023.
Cash and Balances with CBE
the relative weight of Cash and Balances with CBE, witnessed a slight decrease, as acquired a relative weight of 11.54% of the bank's total assets by the end of June 2024, compared to a relative weight of 11.89% by the end of December 2023.
Its total value amounted to EGP 14.70 bn at the end of June 2024, compared to EGP 11.60bn at the end of December 2023, achieving a growth rate of 26.64% and an increase of EGP3.09bn.
Other Assets
The relative weight of other assets reached 2.23% of the bank's total assets by the end of June 2024, recording EGP 2.84 bn, compared to a relative weight of 2.67% and a value of EGP 2.60 bn at the end of December 2023.
Bank's Trends in the Loan Market
By examining the components of total loan portfolio, it is evident that the bank tends to grant credit to Corporates more than retail, given the higher relative weight at the end of the first 6M -2024.
Corporate Loans
Total Corporate loans accounted for a relative weight of 69% of the bank's total customer loans by the end of June 2024, compared to 64.50% of the bank's total customer loans by the end of December 2023.
Total Corporate loan portfolio at the bank increased, as achieved a growth rate of 38.32% and an increase of EGP 11.62 bn during the first 6 months of the current year, reaching EGP 41.93 bn by the end of June 2024, compared to EGP 30.32 bn at the end of December 2023.
Retail Loans
While the relative weight of the bank's retail loan portfolio witnessed an decrease to reach 31% of the bank's total customer loans by the end of June 2024, compared to a relative weight of 35.50% of the bank's total customer loans by the end of December 2023.
Bank's total retail loan portfolio recorded EGP 18.84 Bn by the end of June 2024, compared to EGP 16.69 bn by the end of December 2023, achieving a growth rate of 12.88%, and an increase of EGP 2.15 bn.
