The Central Bank of Egypt (CBE) has revealed that the total financial position of banks operating in the local market increased by about EGP 576bn during the last quarter of 2022, recording EGP 11.399trn in December 2022, compared to EGP 10.823trn in September.
In its quarterly report on indicators of financial safety of banks, tge CBE stated that the banks’ capital amounted to about EGP 303.027bn, and the reserves recorded EGP 347.135bn, while the balance of provisions amounted to about EGP 256.093bn.
“The private sector acquired 56% of the total loans granted by banks to their customers until the end of December 2022, compared to 58.4% in September 2022,” CBE said.
It indicated that the ratio of loans to deposits in banks increased to 47.9% in December 2022, compared to 47.4% in September 2022.
According to the CBE, the ratio of loans to deposits in local currency decreased to 44% in December, while the ratio of loans to deposits in foreign currencies increased to 66.8% in December, compared to 66.6% in September.
The non-performing loans increased slightly in December 2022, to record 3.4% of the total loan portfolio of banks operating in the Egyptian market, compared to 3.2% in September 2022.
The CBE indicated that banks made provisions of 91.6% of their total non-performing loans in December 2022, compared to 91.8% in September 2022, pointing out that the volume of those provisions amounted to about EGP 256.093bn in December 2022.
The total deposits in banks increased to about EGP 8.562trn in December 2022, compared to about EGP 7.819trn in September, an increase of about EGP 743bn.
The ratio of deposits to assets in banks amounted to 75.2% in December 2022, compared to 72.3% in September, noting at the same time that the average actual liquidity ratio in local currency in banks decreased in December 2022 to 43.3% compared to 46.9% in September, and in contrast the average ratio of actual liquidity in foreign currencies at banks rose to 77.9% in December, compared to 77.6% in September.
The volume of investments of banks operating in the local market in securities and treasury bills amounted to about EGP 4.428trn in December 2022, compared to about EGP 4.058trn in September, an increase of about EGP 370bn.
According to the CBE, the percentage of banks’ securities portfolio, excluding treasury bills, increased to 27.5% of total assets in banks in December 2022, compared to 25% in September 2022.
The CBE indicated that as a result of the activity and strong performance of banks operating in the Egyptian market, they achieved net profits of about EGP 130.844bn in December 2022, compared to EGP 93.396bn in September.
It revealed that the net revenues in banks amounted to about EGP 331.202bn in December, compared to EGP 225.807bn in September, while the net activity revenues amounted to about EGP 407.592bn, compared to EGP 272.230bn, and total expenses recorded about EGP 276.758bn, compared to EGP 178.8bn.
According to the CBE, the top ten banks acquired about 77.59% of total bank profits, recording about EGP 101.525bn in December 2022, compared to about EGP 73.125bn in September, while the five big banks acquired about 64.32% of the sector’s profits, recording EGP 84.162bn.
This list is topped by the National Bank of Egypt (NBE), the Commercial International Bank (CIB), Banque du Caire, QNB Alahli, Credit Agricole – Egypt, Faisal Islamic Bank of Egypt, and the Housing and Development Bank (HDB).
The report revealed that the net return of the top 10 banks reached EGP 247.968bn in December 2022, the net activity revenues of EGP 303.540bn, and their total expenses amounted to EGP 202.015bn.
This comes at a time when the net returns of the five largest banks amounted to about EGP 216.375bn, and net activity revenues amounted to about EGP 265.630bn, while their total expenses amounted to about EGP 171.468bn in September.
The CBE said that the return on average assets in banks recorded 1.2% in December 2022, without significant change since the beginning of the year, and the return on average equity recorded 16.1%, while the net margin of return reached 4.2%.
It pointed out that the return on average assets in the 10 largest banks amounted to 1.4%, and the return on average equity recorded 20.2%, while the net margin of return reached 4.3%.
According to the CBE, the return on average assets of the five largest banks was 1.3%, and the return on average equity was 21%, while the net margin of return reached 4.3%.
