The Central Bank of Egypt (CBE) has revealed that the total financial position of banks operating in the local market increased to about EGP 8.758trn in October 2021, compared to about EGP 8.484 in September, an increase of about EGP 274bn.
In its monthly report, the CBE explained that in terms of assets, the total cash balance in banks amounted to about EGP 64.659bn, while the balances of banks locally amounted to EGP 1.406trn, and their balances abroad amounted to EGP 221.108bn.
The CBE added that lending and discount balances to clients recorded EGP 2.996trn, while the stock portfolio and banks’ investments in treasury bills recorded EGP 3.052trn. Other assets that the CBE did not mention were also valued at EGP 1.017trn.
Regarding liabilities, the CBE stated that the banks’ capital amounted to about EGP 201.769bn, and reserves recorded EGP 354.882bn, while the balance of provisions amounted to about EGP 183.930bn.
Furthermore, the obligations of banks towards each other in Egypt amounted to about EGP 352.038bn, while their obligations to banks abroad recorded EGP 125.159bn, and the total deposits amounted to about EGP 6.175trn, while the balances of bonds and long-term loans amounted to EGP 239.803bn. Other liabilities the CBE did not mention were valued at EGP 1.125trn.
In a related context, the CBE also revealed that customer deposits in banks increased to EGP 6.191trn, compared to September’s EGP 6.077trn, an increase of about EGP 114.1bn.
It explained that the growth rate in the total deposits in banks amounted to about 18.22% during October 2021, compared to 17.71% in September, pointing out that the growth rate in deposits in local currency recorded 21.5% compared to 21%, while the growth rate of deposits in foreign currencies was 0.5%, compared to -0.3%.
Additionally, the share of deposits in foreign currencies decreased to 13.10% of the total deposits in banks in October 2021, compared to 13.17% in September.
Also, the volume of government deposits in banks reached EGP 1.2trn, compared to the EGP 1.166trn recorded in September 2021.
Government deposits were divided into local currency deposits amounting to EGP 1.059trn and the equivalent of about EGP 141.182bn in foreign currencies.
According to the CBE, non-governmental deposits recorded EGP 4.990trn in October 2021, compared to the previous month’s EGP 4.910trn, including deposits in local currency worth EGP 4.324trn and foreign currency deposits equivalent to EGP 665.370bn.
The CBE added that the household sector accounted for 82.7% of total deposits in banks until the end of October 2021.
According to the CBE, the household sector accounted for about 85% of the total deposits in local currency, amounting to about EGP 3.660trn, while its share of deposits in foreign currencies amounted to about 67.7%, which is EGP 439.435bn.
Moreover, It pointed out that the public business sector’s share of total non-governmental deposits in local currency amounted to about EGP 84.8bn, the private sector EGP 453.787bn, while the share of non-residents amounted to EGP 16.285bn.
The share of the public business sector in the total non-governmental deposits in foreign currencies reached EGP 28.248bn, the private business sector EGP 181.795bn, while the share of non-residents amounted to about EGP 15.990bn.
In a different context, the CBE said that the volume of credit facilities granted by banks operating in the local market to their customers amounted to about EGP 2.996trn in October 2021, pointing out that the volume of these facilities increased by about EGP 92.5bn during the period from July to October.
Credit facilities mean the loans granted by banks to their clients, along with documentary credits and letters of guarantee that they open to them to cover import operations.
The CBE attributed this rise to the increase in the volume of credit facilities granted to the government by banks by about EGP 15.9bn, with a growth rate of 1.4%, and an increase in the volume of facilities granted to non-governments by EGP 76.6bn, with a growth rate of 4.3%.
It explained that the increase in the balances of facilities granted to the government by banks came as a result of the increase in the volume of facilities in foreign currencies amounting to EGP 32.6bn and the decrease in the facilities in local currency to EGP 16.7bn.
It also said that the private business sector obtained about 60.2% of the total non-governmental credit facilities granted by banks to the various economic sectors, pointing out that the industry sector came at the forefront of the sectors financed by banks. Alone, it obtained about 29.4% of the total of those facilities, followed by the services sector, which acquired 25.4%; then the trade sector at 10.8%; and the agriculture sector 2.3%.
According to the CBE, other sectors — not mentioned in detail — obtained about 32.1% of the volume of those facilities, of which 31.7% are for the household sector only.
It also revealed that the total balances of loans granted by banks increased by EGP 42.217bn to reach EGP 2.939trn in October 2021, compared to EGP 2.897trn in September 2021.
The balances of loans granted to the government amounted to nearly EGP 1.081trn as well, compared to September’s EGP 1.060trn, an increase of EGP 21.756bn.
According to the CBE, the balances of loans granted to the government in local currency also recorded about EGP 764.346bn, compared to EGP 752.107bn, an increase of EGP 12.239bn.
Furthermore, the balances of loans granted to non-government organisations increased by EGP 20.461bn, reaching EGP 1.857trn in October 2021, compared to EGP 1.837trn in September 2021.
Loans granted to non-government sectors in local currency recorded about EGP 1.614trn, compared to EGP 1.594trn, an increase of EGP 20.382bn.
Moreover, loans granted to the agricultural sector amounted to about EGP 39.992bn in October, compared to EGP 37.474bn in September, an increase of EGP 2.518bn. As for the loans granted to the industrial sector, they decreased to EGP 433.086bn in October, compared to September’s EGP 435.131bn.
Additionally, loans granted to the trade sector amounted to about EGP 186.039bn, compared to EGP 181.411bn, an increase of about EGP 4.6bn; the loans granted to the services sector recorded EGP 371.542bn, compared to EGP 364.770bn, an increase of about EGP 6.8bn; and the loans granted to the household sector reached EGP 582.642bn, compared to EGP 574.189bn, an increase of EGP 8.453bn.
The CBE indicated that the balances of loans granted in foreign currencies recorded EGP 242.927bn in October, compared to EGP 242.845bn in September, an increase of up to EGP 82m.
It also explained that loans granted to the agricultural sector in foreign currencies amounted to EGP 3.369bn, compared to EGP 3.283bn, an estimated increase of EGP 86m; the loans granted to the industrial sector declined to EGP 114.361bn, compared to EGP 115.468bn, a decrease estimated at EGP 1.107bn; and the loans granted to the trade sector recorded about EGP 13.083bn, compared to EGP 12.968bn, an increase of about EGP 115m.
Moreover, loans granted to the services sector amounted to about EGP 100.915bn, compared to EGP 99.922bn, an increase of about EGP 993m; and loans granted to the household sector recorded EGP 7.133bn, compared to EGP 7.152bn, down by EGP 19m.
In the context of other investments in banks’ liquidity, the CBE’s report revealed that the volume of public sector banks’ investments in local treasury bills reached about EGP 210.098bn in November, compared to EGP 183.807bn in October, while private banks’ investments recorded EGP 316.727bn, compared to EGP 330.611bn.
Also, the investments of specialised banks amounted to EGP 40.221bn, compared to EGP 45.216bn, while the investments of foreign bank branches recorded EGP 38.558bn, compared to EGP 40.704bn.
In a different context, the CBE said that net domestic assets increased during the period from July to October 2021 by EGP 432.8bn, or 8.5%, as a result of an increase in domestic credit by EGP 232.4bn at a rate of 4.3% and a decrease in the negative balance of net budget items by EGP 200.4bn at a rate of 63.5%.
It explained that domestic credit increased as a result of an increase in net liabilities from the government by EGP 152bn, from the private sector by EGP 45.3bn, from the household sector by EGP 38.2bn, and from the public business sector by EGP 3.1bn.
On the other hand, the CBE also revealed a decrease in the net foreign assets of the banking system by EGP 137.5bn during the period from July to October 2021 to reach about EGP 186.313bn.
It explained that this decline came as a result of the decrease in its net foreign assets by EGP 32.6bn and the decrease in net foreign assets at banks, by EGP 104.9bn.
