The Agricultural Bank of Egypt (ABE) has achieved a major leap in the first half (1H) of 2023, which reflects its development efforts during the past three years.
The ABE’s loan portfolio increased to EGP 69.4bn in 1H 2023, compared to EGP 60.288bn in 1H 2022. The bank mainly financed agricultural projects and related industrial and service activities, in a manner that achieves the state’s vision in maximizing the productivity and added value of the agricultural sector in Egypt.
The deposit portfolio also witnessed a remarkable jump from EGP 119.329bn on 30 June 2022 to about EGP 161.481bn on 30 June 2023, an increase of EGP 42.15bn, which translates customers’ confidence in the bank’s ability to manage their savings and facilitate their transactions according to the latest banking systems.
According to the classification of the loan portfolio, loans directed to financing the agricultural sector and related industries represent about 80% of the size of the credit portfolio. Financing loans for agricultural crops amounted to about EGP 14.503bn, benefiting hundreds of thousands of farmers. This increase is due to the bank’s keenness to support small farmers by amending the credit categories for agricultural crops 4 times within two years, at rates ranging between 25 and 70%, to help farmers withstand the large increase in agricultural crops production costs and requirements.
Contract farming had a large share in the bank’s policies and work plans, which contributed to increasing the volume of financing directed to contract farms to EGP 2.2bn, including EGP 1.6bn to support cane cultivation in Upper Egypt governorates through tripartite contracts between the Bank, farmers and sugar factories.
The bank also achieved a significant growth in the volume of loans directed to financing medium, small and micro-enterprises and activities, to reach about 64% of the loan portfolio, amounting to about EGP 42.842bn by the end of June 2023, given the importance of this vital sector in providing real job opportunities, especially in the agricultural sector. and activities associated with it.
The bank also pays great attention to micro-enterprises, as the micro-activities portfolio included, by the end of June 2023, about 436,012 individual and corporate clients, who obtained financing worth EGP 32.221bn.
At the same time, the Bank’s role in financing major projects and companies has grown to maximize its role in supporting and developing the national economy, as the number of large companies financed by the Bank has increased to reach 119 companies operating in the agricultural sector and related activities. pounds at the end of June of last year, which is a new achievement added to the total achievements of the bank to stimulate investment in the agricultural sector and related activities, as well as the ability of these companies to provide direct and indirect job opportunities and improve the level of income of a wide segment of citizens in all governorates.
The Bank’s development efforts contributed to improving the quality of its banking and financing services in a way that meets the needs of its customers of various categories, and also strengthened the bank’s image as one of the largest banking institutions specialized in financing the agricultural sector.
