SAIB records 46.7 points on First Bank financial soundness index

SAIB seen scoring 46.7521 points on First Bank’s financial soundness index , compared to the sector average of 50 points.

The financial soundness index set by First Bank, measures the strength and soundness of the banks' financial positions and their ability to preserve the funds of depositors and shareholders

The financial soundness index is based on six measures: the capital adequacy ratio, the financial leverage ratio, assets to deposits ratio, shareholders equity to deposits ratio, loans to deposits ratio and non-performing loan ratio.

SAIB’s capital adequacy ratio reached 13.03% at the first half of 2022, while the average rate of banks operating Egypt was at 20.9% during the same period, exceeding the regulatory limits set by the Central Bank of Egypt which are consistent with Basel Accord of 12.5.

SAIB’s financial leverage ratio recorded 7.41 % at the end of June 2022 compared to the average rate of banks operating Egypt of 6.9 % which reflected the relation between tier I used in capital adequacy ratio and the bank’s non-risk-weighted assets exceeding the regulatory limits set by the Central Bank of Egypt which is consistent with Basel Accord of 3 %.

However, SAIB has witnessed an increase in the ratio of non-performing loans to total loans portfolio by 4.5 % in H1-22 compared to an average of 3.2 % of the total banking sector.

In addition the bank’s assets to deposits ratio declined below the banking sector average recording 114.30% at the end of June 2022, compared to an average of 136.14% of the total banking sector during the same period

However, SAIB’s shareholders equity to assets ratio to recorded 9.21% at the end of June 2022, compared to an average 9% of the total banking sector during the same period.

Furthermore, loans to deposits ratio has seen a remarkable increase record 61.10 % at the end of June 2022, compared to an average 48.5% of the total banking sector during the same period.