The Central Bank of Egypt (CBE) has revealed a surge in the total financial position of banks operating in the local market, excluding the CBE itself, to EGP 18.387trn in April 2024, from EGP 17.869trn in March 2024, marking an increase of about EGP 491bn.
In its latest report, the CBE noted that on the assets side, cash balances at banks stood at approximately EGP 165.724bn, while balances at domestic banks reached EGP 3.456trn, and balances at foreign banks amounted to EGP 1.103trn.
Lending and Discount Balances
The report added that lending and discount balances for clients recorded approximately EGP 6.957trn, while the securities portfolio and banks’ investments in treasury bills totalled EGP 5.260trn. Other assets, which the central bank did not detail, amounted to EGP 1.444trn.
Regarding liabilities, the CBE indicated that banks’ capital reached around EGP 451.253bn, reserves stood at EGP 796.500bn, and provisions amounted to EGP 463.829bn.
Liabilities to domestic banks were recorded at EGP 1.534trn, while those to foreign banks stood at EGP 587.434bn. Long-term bonds and loans amounted to EGP 581.174bn, and other unspecified liabilities totalled EGP 2.137trn.
Customer Deposits
The CBE also reported a rise in bank customer deposits, reaching EGP 11.676trn in April 2024, compared to EGP 10.535trn in March 2024, reflecting an increase of about EGP 141bn.
According to the latest CBE report, government deposits at banks reached approximately EGP 2.666trn, of which around EGP 2.130trn was in local currency, while the equivalent of EGP 535.933bn was in foreign currencies. Non-government deposits amounted to EGP 9.01trn, including EGP 6.536trn in local currency and the equivalent of EGP 2.474trn in foreign currencies.
The report highlighted that the public business sector accounted for EGP 161.3bn of non-government local currency bank deposits in April 2024. The private business sector held EGP 1.109trn, the household sector EGP 5.234trn, and non-residents EGP 30.606bn.
Meanwhile, in foreign currency deposits, the public business sector held the equivalent of EGP 143.293bn, the private business sector EGP 803.023bn, the household sector EGP 1.489trn, and non-residents the equivalent of EGP 38.210bn.
The CBE noted that the growth rate of total bank deposits reached 25.2% during April 2024. The growth rate for local currency deposits was 15.9%, while foreign currency deposits grew by 59%, making up 27.24% of total bank deposits in April 2024.
Credit Facilities
The Central Bank also reported that credit facilities extended by banks to their clients rose to EGP 6.957trn in April 2024, an increase of EGP 2.158trn compared to July 2023.
Credit facilities refer to loans granted by banks to clients, in addition to documentary credits and letters of guarantee issued for covering import transactions.
The CBE attributed this increase to a rise in credit facilities extended to the government by EGP 1.460trn, representing a growth rate of 70.3%, and an increase in non-government credit facilities by EGP 698.3bn, with a growth rate of 25.6%.
According to the report, the increase in government credit facilities was driven by a rise in local currency facilities by EGP 582.2bn and foreign currency facilities by the equivalent of EGP 878.1bn.
For non-government credit facilities, the private business sector received 62.9% of the total in April 2024. In terms of economic activity sectors, the industrial sector took 32.4% of the total, followed by services at 26.8%, trade at 9.5%, and agriculture at 1.8%. Undistributed sectors accounted for 29.5%, with 29.3% going to the household sector.
Domestic Liquidity
The CBE revealed that the volume of domestic liquidity in the banking sector increased by EGP 1.849trn from July 2023 to April 2024, reaching EGP 10.097trn, with a growth rate of 22.4%.
This increase was reflected in the growth of quasi-money by EGP 1.424trn, a growth rate of 23%, and an increase in the money supply by EGP 424.6bn, a growth rate of 20.6%.
The increase in quasi-money was due to a rise in foreign currency deposits equivalent to EGP 919.9bn, a growth rate of 60.7%, and an increase in non-current local currency deposits by EGP 504.9bn, a growth rate of 10.8%. The rise in the money supply was attributed to an increase in current local currency deposits by EGP 277.8bn, a growth rate of 26.4%, and an increase in cash in circulation outside the banking sector by EGP 146.8bn, a growth rate of 14.5%.
The CBE noted that the rise in domestic liquidity during the period from July 2023 to April 2024 was the result of an increase in both net domestic and net foreign assets in the banking sector.
Net Foreign Assets
The CBE also reported a EGP 660.2bn increase in net foreign assets in the banking sector from July 2023 to April 2024.
This rise was attributed to an increase in net foreign assets at the central bank by EGP 268.8bn and at banks by EGP 391.4bn.
Additionally, the CBE highlighted an increase in reserve money by EGP 85.8bn, or 5.6%, during the same period, reaching EGP 1.614trn. This increase was driven by a rise in cash in circulation outside the central bank’s vaults by EGP 150bn, while local currency deposits at the central bank decreased by EGP 64.2bn, a decline of 14.4%. It noted that the rise in reserve money was primarily due to the increase in the Central Bank’s net foreign assets by EGP 268.8bn, net liabilities to banks by EGP 190bn, and net liabilities to the government by EGP 312.1bn, along with a decrease in net budget items by EGP 685.1bn.
