The Central Bank of Egypt (CBE) has issued a report on the key performance indicators of banks operating in the local market as of July 2023.
According to the report, the total financial position of banks exceeded EGP 14trn by the end of July 2023, reaching EGP 14.150trn, compared to EGP 13.798trn at the end of June, an increase of EGP 352bn.
On the assets side, cash balances in banks amounted to EGP 106.482bn by the end of July 2023. The balances of some banks locally were EGP 2.473trn, while their balances in banks abroad were EGP 331.137bn.
Customer lending and debit balances were EGP 4.931trn, while the securities portfolio and banks’ investments in treasury bills were EGP 4.858trn. The volume of other assets, which the CBE did not specify, was EGP 1.448trn.
On the liabilities side, the CBE stated that banks’ capital was EGP 323.774bn, reserves were EGP 497.792bn, and provisions were EGP 313.787bn.
Banks’ liabilities to each other locally were EGP 607.249bn, while their liabilities to banks abroad were EGP 448.919bn. The balances of bonds and long-term loans were EGP 546.102bn, and the volume of other liabilities, which the CBE did not specify, was EGP 1.815trn.
The CBE also reported an increase in customer deposits in banks operating in the Egyptian market, to EGP 9.619trn by the end of July 2023, compared to EGP 9.472trn by the end of June, an increase of EGP 147bn.
The CBE said that the value of government deposits in banks was EGP 2.190trn by the end of July 2023, while the value of non-governmental deposits was EGP 7.428trn.
The CBE added that the value of government deposits in local currency was EGP 1.889trn, while the value of its deposits in foreign currencies was EGP 301.461bn.
The value of non-governmental deposits in local currency was EGP 5.822trn, while the value of non-governmental deposits in foreign currencies was EGP 1.605trn.
The CBE indicated that the public business sector had EGP 138.203bn of non-governmental deposits in local currency, the private business sector had EGP 1.025trn, the household sector had EGP 4.627trn, and non-residents had EGP 31.614bn.
The public business sector’s share of deposits in foreign currencies was EGP 95.186bn, the private business sector’s share was EGP 532.7bn, the household sector’s share was EGP 932.706bn and the non-residents’ share was EGP 45.477bn.
The CBE said that the household sector accounted for 75.6% of the total deposits in banks by the end of July 2023. This sector accounted for about 79.9% of the total deposits in local currency, while its share of deposits in foreign currencies was about 59.8%.
The CBE explained that the growth rate of total deposits in banks during July 2023 was about 24.4%, noting that the growth rate of deposits in local currency was 15%, while the growth rate of deposits in foreign currencies was 79.1%.
The CBE also stated that the share of deposits in foreign currencies was 21.22% of the total deposits in banks by the end of July 2023.
On the other hand, CBE revealed that the credit facilities granted by banks to their customers increased to about EGP 4.931trn by the end of July 2023, an increase of EGP 132.5bn over the previous month.
Credit facilities are the loans that banks grant to their customers, in addition to the documentary credits and letters of guarantee that they open to cover import operations.
According to the CBE, this increase was due to an increase in the balances of credit facilities granted by banks to the non-government sector by EGP 37bn, at a rate of 1.4%, and the balances of credit facilities granted to the government sector by EGP 95.5bn, at a rate of 4.6%.
The CBE explained that the increase in the balances granted to the government sector resulted from an increase in balances in foreign currencies equivalent to EGP 24.9bn, and balances in local currency by EGP 70.6bn.
The CBE also provided the relative distribution of non-governmental credit facility balances, showing that the private business sector obtained 62.6% of the total of those balances at the end of July 2023. The industry sector obtained 29.4% of those balances, followed by the services sector with 27.8%, the trade sector with 9.7%, and the agriculture sector with 2.1%. The undistributed sectors got 31%, including 30.8% for the household sector.
In the same context, the CBE revealed that public sector banks’ investments in local treasury bills rose to about EGP 326.907bn at the end of August 2023, compared to EGP 309.193bn at the end of July, while private sector banks’ investments increased to EGP 563.049bn, compared to EGP 491.982bn.
The investments of specialized banks in treasury bills recorded EGP 134.383bn, compared to EGP 132.532bn, while the investments of foreign bank branches amounted to EGP 81.834bn, compared to EGP 78.339bn.
In another regard, the CBE reported an increase in the volume of domestic liquidity in the banking sector by about EGP 95.2bn during July 2023, reaching EGP 8.343bn, with a growth rate of 1.2% compared to June 2023.
The CBE attributed this increase to the growth of quasi-money by EGP 58.4bn, at a rate of 0.9%, and the money supply by about EGP 36.8bn, at a rate of 1.8%.
The increase in quasi-money was the result of an increase in deposits in foreign currencies, equivalent to EGP 44.2bn, at a rate of 2.9%, and non-current deposits in local currency, amounting to EGP 14.2bn, at a rate of 0.3%. The increase in the money supply came as a result of an increase in current deposits in local currency by EGP 54.1bn, at a rate of 5.1%, and a decrease in cash in circulation outside the banking system by about EGP 17.3bn, at a rate of 1.7%.
The CBE explained that the increase in domestic liquidity during July 2023 was the result of an increase in net domestic assets and net foreign assets in the banking system.
According to the Central Bank of Egypt (CBE), the net domestic assets of the Egyptian banking sector increased by about EGP 73bn, or 0.8%, during the year ending in July 2023. This increase resulted from a rise in domestic credit by about EGP 478.9bn, or 5.5%, and a decrease in net budget items by about EGP 405.3bn.
The domestic credit rose due to an increase in net liabilities from the government by EGP 436.5bn, the private business sector by EGP 16.6bn, the public business sector by EGP 13.6bn, and the household sector by EGP 11.6bn.
The CBE also reported that the net foreign assets of the banking system increased by EGP 22.2bn in July 2023. This increase was attributed to a rise in the net foreign assets of the banks by EGP 30.3bn, and a decline in the CBE’s net foreign assets by EGP 8.1bn.
In the same context, the CBE indicated that the reserve money increased by EGP 64.9bn, or 4.2%, in July 2023, reaching about EGP 1.593trn.
The CBE explained that this increase was the result of a rise in bank deposits in local currency at the CBE by about EGP 92bn, or 20.6%, and a decrease in cash circulating outside the CBE’s vaults by EGP 27.1bn, or 2.5%. The increase in reserve money was also influenced by a rise in net liabilities from the government by EGP 376.8bn, net liabilities from banks by about EGP 26.9bn, a decrease in net budget items by EGP 330.7bn, and a change in the CBE’s net foreign assets equivalent to EGP 8.1bn.
