Ahli United Bank Egypt embraces an expansionary policy during 9M; analysis

Ahli United Bank Egypt has embraced an expansionary policy in utilizing its resources as the rate of resources employment jumped to 83.83 % by the end of the of September 2022 compared to 82.72 % 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.

This rate increase on the index indicates that the bank followed an expansionary policy in employing its resources.

Thus, the bank has invested EGP 51.79 billion of its traditional resources, which amounted to EGP 38.75 billion by the end of June 2022 into loans and financial investments. It invested EGP50.53 billion into loans and 13.61 billion pounds into financial investments.

Yet, it has directed 51.79 billion pounds of its traditional resources, which recorded 62.61 billion pounds by the end of 2021 into loans and financial investments. It invested EGP 38.75 billion into loans and 13.04 billion pounds into financial investments

The bank's traditional resources at the end of June 2022 were distributed between EGP 66.64 billion into its deposit portfolio, and EGP 9.86 billion into the value of equity at the end of the same period.

AUB Egypt’s Loans to deposit ratio jumped to 75.82% at the end of Q3-2022, compared to 72.38% at the end of 2021, while the financial investments to deposits ratio declined to 20.42% at the end of September end compared to 24.36% by the end of 2021.

The bank’s resources employment rate remained below the banking sector average despite the fact that it has increased during the first 9 months. 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.