The Financial Regulatory Authority (FRA) has released its latest reports covering the period of July to September 2023, revealing that the total financing granted through entities under its regulation amounted to EGP 192.2bn, an increase of 15.3% compared to the same period in 2022.
The FRA regulates the capital market activities and non-banking financial activities in Egypt, including stock issuances, securitization, corporate bonds, leasing, financing for medium, small, and micro projects, consumer financing, discounted securities, real estate financing, movable collateral registry, insurance, and private insurance funds.
According to the reports, the value of stock issuances was EGP 92.7bn, representing 48.2% of the total financing. The value of issuances (securitization and corporate bonds) was EGP 28bn, representing 14.6% of the total financing. The value of leasing contracts was EGP 27bn, representing 14% of the total financing.
The value of financing granted to medium, small, and micro projects was EGP 20bn, representing 10.4% of the total financing. The value of consumer financing was EGP 12.1bn, representing 6.3% of the total financing. The value of discounted securities was EGP 10bn, representing 5.2% of the total financing. The value of real estate financing was EGP 2.4bn, representing 1.2% of the total financing.
The reports also showed that the value of advertisements on movable assets recorded in the movable collateral registry for the third quarter of 2023 was EGP 2.4trn, an increase of 18.5% compared to the same period in 2022.
The value of balances for medium, small, and micro-enterprises financing for the third quarter of 2023 was EGP 49.6bn, an increase of 12.7% compared to the same period in 2022.
The total insurance premiums collected for the third quarter of 2023 was EGP 19.2bn, an increase of 9.1% compared to the same period in 2022. This amount was divided between property and liability insurance activities (EGP 9.9bn) and personal insurance and fund formation activities (EGP 9.2bn).
The insurance sector also paid a total value of compensation of EGP 8.8bn in the same period. Property and liability insurance compensations accounted for EGP 5bn, while personal insurance and fund formation compensations amounted to EGP 3.8bn.
Property and liability insurance protects assets from risks such as fire or theft, covering homes, cars, warehouses, goods, and other assets. Personal insurance and fund formation include life insurance, death benefits, accident insurance, and various other types of insurance.
The investments of private insurance funds for the third quarter of 2023 was EGP 6.4bn, an increase of 6.7% compared to the same period in 2022.
The FRA stated that the reports reflect the positive performance of the entities under its regulation and their contribution to economic development and financial inclusion in Egypt. The FRA also affirmed its commitment to enhancing the regulatory and supervisory framework for the non-banking financial sector and supporting its growth and innovation.
