Bank NXT's liquidity ratio jumps to 33.13% by June 2024-End

The separate financial statements of Bank NXT for the financial period ended June 30, 2024, revealed that its liquidity ratio rose to 33.13% by the end of June, compared to 25.66% by the end of 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 cash and balance Due from banks rose significantly, rising to EGP 19.5 bn by the end of June 2024, compared to EGP 11.5 bn by the end of 2023, with growth of 68.79% and an increase of EGP 7.9 bn.

Bank NXT's Balances Due from banks are distributed by the end of the first half of this year as follows: EGP 12 bn as balances with the Central Bank of Egypt, EGP 6.5 bn as local banks, and EGP 919.6 mn as foreign banks

As for the Central Bank's cash and balances, it rose to EGP 5 bn by the end of June 2024, compared to EGP 4.2 bn by the end of 2023, with a growth of 18.29% and an increase of EGP 775.8 mn.

CBE's cash balances at Bank NXT were distributed by the end of the first half of this year as follows: EGP 4.65 bn in mandatory reserve and EGP 366 mn in cash

The Bank's portfolio of assets jumped to EGP 73.9 bn by the end of June 2024, compared to EGP 61.4 bn by the end of 2023, a growth of 20.21% and an increase of EGP 12.4 bn

Notwithstanding the high liquidity ratio of Bank NXT, it achieved strong net profit growth, jumping by 100.26%, to EGP 901.56 mn during the first half of 2024, compared to EGP 450.186 mn during the same period of 2023, representing an increase of EGP 451.374 mn.

Net interest income rose to EGP 1.9 bn in the first half of 2024, compared to EGP 1.2 bn in the same period from 2023, with a growth of 62.8% and an increase of EGP 732.9 mn.

In terms of profits per share, the bank jumped at a growth rate of 116%, reaching EGP 1.08 per share in the first half of 2024, compared to EGP 0.5 per share in the same period from 2023

Overall, the Bank achieved a strong performance during this year, with its portfolio of customer deposits rising by 26.17%, to EGP 64.2 bn by the end of June 2024, compared to EGP 50.9 bn by the end of 2023, with an increase of EGP 13.3 bn.

Total customer loans jumped by 15.71%, with an increase of EGP 3.6 bn during the first half of this year, reaching EGP 26.4 bn by the end of June 2024, compared to EGP 22.8 bn by the end of 2023.

It should be noted that the Arab Investment Bank revealed last September that its name and trademark had been changed to Bank NXT, announcing the launch of a new phase of achievements, as part of the Bank's ongoing efforts to consolidate its position in the Egyptian banking sector. 

This comes in light of the Bank's aspiration to shine a new chapter of achievements through its commitment to provide an integrated package of accessible financial solutions and banking services