Banque Du Caire encompasses an expansionary policy during 6M; analysis

Banque Du Caire has embraced an expansionary policy in employing its resources as the rate resources employment jumped to 90.46% at the end of the first half of 2022, compared to 90.48% at the end of 2021,

The resources employment indicator, launched by First Bank, measures to what extent the bank is employing its traditional resources (deposits + equity) in loans and financial investments.

The stability in the index indicates that the bank followed an expansionary policy in employing its resources.

Thus, the bank has invested EGP216.4 billion of its traditional resources, which amounted to EGP 239.2 billion by the end of June 2022 into loans and financial investments. It invested EGP119.188 billion into loans and  97.2 billion pounds into financial investments.

Yet, BDC has directed 196 billion pounds of its traditional resources, which recorded 217 billion pounds by the end of 2021 into loans and financial investments.

The bank's traditional resources at the end of June 2022 were distributed between EGP217.69 billion into its deposit portfolio, and EGP 215.4 billion into the value of equity at the end of the same period.

BDC’s Loans to deposit ratio jumped to 54.75% at the end of H1\2022, compared to 53.7% at the end of 2021, while the financial investments to deposits ratio rose to 44.6% at H1\2022 end compared to 45.58% at the same comparable period.

The bank’s resources employment rate during the first half of 2022 was above the banking sector average. Resources employment rate in the banking sector posted 90% at the end of June 2022, which indicates that the bank has recently moved towards implementing a more optimistic policy towards loans and financial investments, but it is still below the sector levels.