The Financial Regulatory Authority (FRA) announced the most prominent indicators of the non-banking financial sector in the first half (1H) of 2023.
According to a recent report by the authority, microfinance balances pumped by companies and associations working in this activity increased to EGP 42.2bn in June 2023, compared to EGP 32.9bn in June 2022, and the number of beneficiaries from the activity increased to 3.86 million beneficiaries, compared to 3.78 million beneficiaries.
It pointed out that the non-banking financial companies accounted for 62.42% of financing, while category “A” associations and institutions accounted for 34.10%, category “C” associations and institutions 2.10%, and category “B” associations and institutions 1.38%.
Meanwhile, the commercial activity accounted for 59.32% of financing balances, agricultural activity 20.08%, service activity 13.89%, and commercial activity 6.71%.
According to the authority, the value of financing granted to micro-enterprises during the month of June amounted to about EGP 4.1bn, to 228,000 beneficiaries.
In the same context, the authority revealed that the volume of financing balances pumped by companies and institutions for small and medium enterprises increased to EGP 3.23bn at the end of June 2023, compared to EGP 906m at the end of June 2022, and the number of beneficiaries increased from 980 to 3,610 beneficiaries.
He explained that commercial activity accounted for 70.75% of total financing, service activity 16.40%, agricultural activity 6.12%, and production activity 6.27%, pointing out that males acquired 88.78% of the financing balances for small and medium enterprises in June, while females accounted for 11.22%.
According to the authority, the value of financing granted to small and medium enterprises during the month of June amounted to about EGP 385m for 351 beneficiaries.
In another matter, the FRA revealed that consumer finance companies pumped financing worth EGP 20.554bn during the first half of 2023, compared to EGP 14.172bn during the first half of 2022, with a growth rate of 45%, indicating that the number of beneficiaries of those financing increased to 1.708 million customers, compared to 1.344 million customers, a growth rate of 27.1%.
It explained that electrical appliances and electronics accounted for 32.93% of total financing, 32.85% for the purchase of cars and vehicles, 5.54% for finishing and household equipment, 5.10% for clothes, shoes, bags, watches, jewellery, and eyeglasses, and 4.85% for purchases issued with a single invoice from various shops and commercial chains.
The FRA also revealed an increase in the value of contracts concluded by financial leasing companies to EGP 51.540bn in June 2023, compared to EGP 41.563bn in June 2022, an increase of 24%, pointing at the same time to a decline in the total number of contracts to 999 contracts, compared to 1664 contracts with a decline by 40%.
According to the authority, the real estate and land sector accounted for 88.32% of the value of contracts concluded by financial leasing companies, then the transport vehicle sector 3.33%, then the machinery and equipment sector 2.86%, the heavy equipment sector 1.88%, private cars 1.53%, and production lines 0.39%.
