Attijariwafa Bank Egypt embraces an expansionary policy during 9M; analysis

Attijariwafa Bank Egypt has embraced an expansionary policy in utilizing its resources as the rate of resources employment jumped to 92.41% by the end of the end of September 2022 compared to 87.06% 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 49.6 billion of its traditional resources, which amounted to EGP 53.67 billion during Q3-22 into loans and financial investments. It invested EGP 29.67 billion into loans and 19.93 billion pounds into financial investments.

Yet, it has directed EGP 37.85 billion of its traditional resources, which recorded EGP 43.4 billion during Q3-22 into loans and financial investments. It invested EGP 29.67 billion into loans and EGP 19.93 billion pounds into financial investments

The bank's traditional resources at the end of September 2022 were distributed between EGP 47.5 billion into its deposit portfolio, and EGP 6.16 billion into the value of equity at the end of the same period

Attijariwafa Bank Egypt Loans to deposit ratio jumped to 62.4% at the end of Q3-2022, compared to 63.6% at the end of 2021, while the financial investments to deposits ratio declined to 41.9% at the end of September end compared to 36.88 % by the end of 2021.

The bank’s resources employment rate of 92.41 is above the banking sector average. The  average resources employment rate in the banking sector posted 90.03% at the end of August 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