Bank ABC's liquidity ratio rises to 36% during H1-2024

The financial statements of the Arab Banking Corporation Bank, which ended in June, revealed that its liquidity ratio rose during the first half of 2024, reaching 36% by the end of June 2024, compared to 35% by the end of December 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.

The Bank's balance Due from banks saw strong growth to jump about 41.20% in the first 6 months of this year, after registering EGP 23.03 bn by the end of June 2024, compared to EGP 16.31 bn by the end of December 2023, with an increase of EGP 6 .72 bn.

Balances Due from banks by the end of the first half of 2024 were spread between EGP 16.92 bn as balances with the Central Bank of Egypt (other than the mandatory reserve ratio) and approximately EGP 62 mn with local banks, while foreign banks received EGP 6.06 bn.

As for the Central Bank's cash and balances, it recorded about EGP 4.85 bn by the end of the first half of 2024, distributed as follows: EGP 3.54 bn the value of the CBE’s balances under the mandatory reserve ratio, while the cash line received about EGP 1.30 bn.

ABC Bank's asset portfolio rose to EGP 77.71 bn by the end of June 2024, compared to EGP 69.37 bn by the end of last year, growing by 12.03%, with an increase of EGP 8.35 bn.

Overall, Bank ABC performed well during the first half of this year, after growing its net profit by 52.35% to EGP 1.07 bn in the first half of 2024, compared to EGP 703 mn in the same period in 2023.