Emirates NBD's liquidity ratio jumps to 40% during H1-2024
First Bank
Emirates NBD-Egypt's separate financial statements, which ended on June 30 this year, revealed that the Bank achieved remarkable growth in its liquidity ratio during the first half of 2024, jumping to 39.74% by the end of June, compared to 20.96% by the end of December 2023
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.
The Bank's balance Due from banks saw extraordinary growth to jump by 198.94% during the first 6 months of this year, to score EGP 44.04 bn by the end of June 2024, compared to EGP 14.73 bn by the end of December 2023, with an increase of EGP 29.31 bn.
Balances Due from banks by the end of the first half of 2024 were distributed between EGP 8.68 bn as balances with the Central Bank of Egypt (other than the mandatory reserve ratio) and approximately EGP 25.90 bn with local banks, while offshore banks received EGP 9.58 bn
As for Central Bank cash and balances, it rose by 6.26% from EGP 12.88 bn by the end of the first half of 2024, compared to EGP 12.12 bn by the end of 2023 and distributed as follows: EGP 10.832 bn the value of the Central's balances under the mandatory reserve ratio, while cash recorded about EGP 2.05 bn.
Emirates NBD's assets portfolio jumped by EGP 15.14 bn and the rate of 11.82% growth during the first 6 months of this year, reaching EGP 143.26 bn by the end of June 2024, compared to EGP 128.12 bn by the end of the 2023.
Despite its high liquidity ratio, the Bank's net profit grew by 33% to EGP 2.58 bn in the first half of 2024, compared to EGP 1.94 bn during the same period in 2023.
Net interest income jumped by 61.80%, to EGP 5.21 bn in the first half of 2024, compared to EGP 3.22 bn in the same period of 2023, an increase of EGP 1.98 bn.
Emirates NBD has been performing well in the first 6 months of this year, after its customer deposit portfolio rose by 7.88% and an increase of EGP 8.09 bn to EGP 110.75 bn by the end of June 2024, compared to EGP 102.66 bn by the end of last year.
Total loans and facilities for customers increased by 18.96% during the first half of this year, reaching EGP 71.45 bn by the end of June 2024, compared to EGP 60.06 bn by the end of last year.
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