The Central Bank of Egypt (CBE) reported that banks operating in the local market saw their total financial position increase to EGP 15.429trn in February 2024, up from EGP 14.486trn in January—an increase of EGP 943bn.
Breaking it down:
Assets
On the assets side, cash balances in banks amounted to EGP 109.394bn. Bank balances in some of them at home recorded EGP 3.172trn, while their balances in banks abroad amounted to EGP 461.327bn.
Customer lending and debit balances recorded EGP 5.783trn, while the securities portfolio and bank investments in treasury bills recorded EGP 5.072trn. The volume of other assets, which CBE did not mention in detail, amounted to EGP 829.408bn.
Liabilities
As for liabilities, CBE stated that banks’ capital amounted to EGP 410.879bn, reserves recorded EGP 628.312bn, and allocations amounted to EGP 356.546bn.
Banks’ liabilities towards each other at home recorded EGP 1.078trn, while their liabilities towards banks abroad recorded EGP 428.997bn. The balances of bonds and long-term loans amounted to EGP 622.622bn, and the volume of other liabilities, which CBE did not mention in detail, amounted to EGP 1.371trn.
Deposits
CBE revealed an increase in customer deposits in banks in February 2024 to about EGP 10.617trn, compared to EGP 10.3trn in January 2024, an increase of about EGP 317bn.
It explained that government deposits in banks recorded about EGP 2.527trn, of which EGP 2.023trn is in local currency and EGP 504.349bn is in foreign currencies. The volume of non-governmental deposits amounted to EGP 8.089trn, of which about EGP 6.492trn is in local currency, and about EGP 1.597trn is in foreign currencies.
According to CBE, the public business sector accounted for about EGP 166.985bn of the total non-governmental deposits in local currency with banks in February 2024, while the share of the private business sector amounted to EGP 1.242trn, the household sector EGP 5.038trn, and non-residents EGP 44.610bn.
On the other hand, the public business sector acquired nearly EGP 112.168bn of total non-governmental deposits in foreign currencies, the private business sector EGP 525.537bn, the household sector EGP 934.349bn, and the non-resident sector EGP 25.295bn.
CBE added that the household sector accounted for 74.5% of the total deposits in banks operating in the Egyptian market until February 2024.
According to CBE, the household sector acquired about 78.1% of the total deposits in local currency, while its share of deposits in foreign currencies amounted to about 59.4%.
It explained that the growth rate in total deposits in banks during February 2024 reached about 14.4%, pointing out that the growth rate in deposits in local currency recorded 16.2%, while the growth rate of deposits in foreign currencies reached 7.5%.
Furthermore, CBE indicated that the share of deposits in foreign currencies reached 19.6% of the total deposits in banks in February 2024.
Credit facilities
CBE revealed that the balances of credit facilities granted by banks to their customers had increased to EGP 5.783trn in February 2024, an increase of EGP 985bn over July 2023.
Credit facilities are the loans that banks grant to their customers, in addition to the documentary credits and letters of guarantee that they open for them to cover import operations.
CBE attributed this increase to an increase in the balances of credit facilities granted by banks to the government by EGP 683bn, at a rate of 32.9%, and the balances of credit facilities granted to non-government by EGP 302bn, at a rate of 11.1%.
According to CBE, the increase in balances granted to the government was the result of an increase in balances in local currency by EGP 473bn, and balances in foreign currencies by EGP 210bn.
According to the relative distribution of non-governmental credit facility balances, the private business sector obtained 61.9% of the total of those balances in February 2024. The industry sector obtained 28.4% of those balances, followed by the services sector with 27.3%, then the trade sector with 9.8%, while the agriculture sector obtained 2%. Other undistributed sectors obtained 32.5%, including 32.3% for the household sector.
Domestic liquidity
CBE revealed an increase in the volume of domestic liquidity in the banking sector by EGP 876.7bn in the period from July 2023 to February 2024, reaching about EGP 9.125trn, with a growth rate of 10.6%.
This increase was evident in the growth of quasi-money by EGP 408.7bn, at 6.6%, and the money supply by EGP 468bn, at 22.7%.
CBE noted that the increase in quasi-money was the result of an increase in deposits in foreign currencies, estimated at EGP 55.8bn, at a rate of 3.7%, and non-current deposits in local currency estimated at EGP 352.9bn, at a rate of 7.6%. The increase in money supply was the result of the increase in current deposits in local currency by EGP 372.2bn at a rate of 35.4% and an increase in cash in circulation outside the banking system by EGP 95.8bn at a rate of 9.5%.
The increase in domestic liquidity from July 2023 to February 2024 resulted from the increase in net domestic assets and net foreign assets in the banking system.
According to CBE, the net domestic assets of the Egyptian banking sector jumped during that period by EGP 721.1bn, at a rate of 7.9%, as a result of an increase in domestic credit by about EGP 1.615trn, at a rate of 18.5%, and a decrease in net budget items by about EGP 894.5bn.
CBE indicated that domestic credit increased as a result of an increase in net liabilities from the government by EGP 1.273trn, liabilities from the private business sector by EGP 192bn, from the public business sector by EGP 9.5bn, and from the household sector by EGP 140.8bn.
CBE also indicated an increase in the net foreign assets of the banking system, equivalent to EGP 155.6bn, during the period from July 2023 to the end of February 2024.
This increase resulted from the increase in net foreign assets at CBE by EGP 34.2bn, and their increase in banks by EGP 121.4bn.
In the same context, CBE indicated an increase in reserve money by EGP 180.3bn, at a rate of 11.8%, during the period from July 2023 to February 2024, reaching about EGP 1.709trn.
This was the result of an increase in bank deposits in local currency at CBE by EGP 93.1bn, at a rate of 20.9%, and cash circulating outside the vaults of CBE by EGP 87.2bn, at a rate of 8%. The increase in reserve money was the result of an increase in net liabilities from the government by EGP 788.6bn, and net liabilities from banks by about EGP 121.9bn on the one hand, and a decrease in net foreign assets at CBE by EGP 34.2bn, and a decrease in net budget items by EGP 764.4bn on the other hand.
