The Central Bank of Egypt (CBE) revealed a number of important indicators last week on the performance of banks operating in the local market in July.
The most important indicators, according to a recent CBE report, are that banks operating in the Egyptian market succeeded in attracting EGP 39.38bn in deposits last July, therefore deposits increased to EGP 1.779tn from EGP 1.74tn in June.
Deposits in the Egyptian pound (EGP) increased by about EGP 24.5bn, amounting to EGP 1.399tn in July, compared to EGP 1.375tn in June. Meanwhile, deposits in foreign currencies increased about EGP 14.85bn, to reach EGP 369.64bn compared to EGP 364.7bn in June.
According to CBE, the total deposits growth rate of banks in July was about 18.5%. The growth rate of deposits in EGP amounted to about 19.5%, while the growth rate of foreign currency was 14.1%.
Non-governmental deposits increased last July by about EGP 20.11bn, to register EGP 1.508tn, compared to EGP 1.488tn in June.
Non-governmental deposits in EGP increased by about EGP 10bn, recording EGP 1.229tn, compared to EGP 1.219tn in June, while non-governmental deposits in foreign currency increased by about EGP 10.26bn to reach EGP 278.288bn in July compared to EGP 268.02bn in June.
Governmental deposits at banks increased in July by about EGP 19.27bn to reach EGP 271.4bn, compared to EGP 252.15bn in June.
According to CBE, the household sector increased its deposits in EGP by about EGP 16.69bn in July, recording EGP 959.03bn compared to EGP 942.33bn in June.
The household sector acquires about 75.9% of total deposits in banks. It also acquires about 78.6% of EGP deposits, and about 63.5% of deposits in foreign currency.
The CBE’s numbers also revealed that the loans volume increased last July by about EGP 8.2bn, to register EGP 721.8bn, compared to EGP 713.6bn in June.
The private business sector acquired 61.9% of the total credit facilities the banks granted to non-governmental bodies in July, while the industry sector alone acquired about 34.4% of these facilities, followed by the services sector by about 25.5%, then the commerce sector by about 10.4%, and the agriculture sector by 1.3%. A number of other sectors, including the household sector, acquired 28.4% out of the total facilities, according to CBE.
The CBE explained that non-governmental loans witnessed an increase of 0.6%, recording EGP 651.5bn in July, compared to EGP 647.2bn in June.
It added that loans in foreign currency increased by EGP 9.4bn in July, to reach EGP 247.5bn, compared to about EGP 238bn in June. On the other hand, loans in EGP retreated by EGP 1.2bn, to reach EGP 474.2bn, compared to EGP 475.4bn.
According to CBE, loans granted by banks to the government increased by EGP 3.8bn in July to EGP 70.3bn, compared to EGP 66.4bn in June.
In another indicator of banks’ performance last July, the CBE’s numbers revealed that private banks increased their investments in treasury bills by more than EGP 1bn to reach EGP 186.7bn. Investments in treasury bills by foreign banks operating in the local market increased by EGP 1.1bn to record EGP 23.7bn.
On the other hand, specialised banks decreased their investments in treasury bills by EGP 505m, to reach EGP 3.8bn, while investments of public sector banks in treasury bills decreased by 0.16%, to register EGP 207.5bn.
The securities portfolio of banks decreased, for the first time since the beginning of this year, recording EGP 1.015tn by the end July, compared to EGP 1.016tn in June, according to CBE.
The CBE explained that banks supported the allocations of non-performance loans by EGP 309m in July, to reach EGP 66.358bn, compared to EGP 66.049bn by the end of June.
According to the latest numbers, the percentage of non-performing loans by banks amounted to about 8.3% by the end of March, while their coverage rate was about 98.3%.
