Banks' loans for services sector rose by EGP 114 bn in 5 months

Mai El-Kafoury

10/24/2024 5:09:55 PM

The banks operating in the Egyptian banking sector loans (other than the Central Bank) for the services sector developed well during the first 5 months of this year, rising by 14.15%, with an increase of EGP 114.05 bn, to record EGP 919.84 bn by the end of May 2024, compared to EGP 805.79 bn by the end of 2023, according to the latest data from the Central Bank of Egypt

Banks loan balances for the services sector rose by 8.06% in the first 5 months of 2024, reaching EGP 699.8 bn by the end of May 2024, compared to EGP 647.62 bn by the end of last year.

The growth in service sector loans in local currency, driven by a rise in banks' private sector loans in local currency, recorded EGP 626.55 bn by the end of May 2024, compared to EGP 576.54 bn by the end of 2023, grew by 6.67%, and increased by more than EGP 50 bn

Bank loan balances for the services sector rose to the equivalent of EGP 219.9 bn by the end of May, compared to EGP 158.17 bn by the end of 2023, with a growth of 39.08%, and an increase of EGP 61.81 bn.

This jump comes as banks' loans to the private sector in foreign currency rose by 41% during the first 5 months of this year, registering the equivalent of EGP 190.40 bn by the end of May of this year, compared to EGP 135.05 bn by the end of December 2023

It is worth mentioning that the services sector has many opportunities in service activities that can double the export earnings of Egyptian services, most notably: banking services, where the Egyptian banking sector has made significant progress in implementing the "Basel 1, 2 and 3" decisions for banking control of banks operating in Egypt

In addition to shipping and logistics services, there are many opportunities, especially since Egypt has a comparative advantage in shipping services, due to its unique geographical location and possession of a global shipping corridor "Suez Canal", and therefore has a distinct opportunity to play an important role in shipping, port and logistics services.