The Central Bank of Egypt (CBE) has announced that the total financial position of banks operating in Egypt increased to EGP 21.187trn in September 2024, from EGP 19.336trn in June 2024, marking a rise of EGP 1.851trn.
Assets
In a report, CBE said that on the assets side, cash balances in banks amounted to EGP 180.201bn, and the balances of banks in some of them inside the country recorded EGP 3.513trn, while their balances in banks abroad amounted to EGP 1.254trn.
It added that the balances of lending and discounts for customers recorded about EGP 7.799trn, while the securities portfolio and banks’ investments in treasury bills recorded EGP 5.924trn, and the size of other assets, which CBE did not mention in detail, amounted to EGP 2.515trn.
Liabilities
Regarding liabilities, CBE explained that the capital of banks amounted to EGP 507.283bn, and reserves recorded EGP 867.121bn, while the balance of allocations amounted to EGP 504.897bn.
Banks’ obligations to each other domestically amounted to EGP 1.569trn, while their obligations to banks abroad amounted to EGP 571.563bn, and total deposits amounted to EGP 12.776trn. The balances of bonds and long-term loans amounted to EGP 899.854bn, and the size of other liabilities, which CBE did not mention in detail, amounted to EGP 3.491trn.
Non-performing loans
CBE said that the percentage of non-performing loans in banks decreased to 2.4% in September 2024, compared to 2.7% in June 2024.
The percentage of non-performing loans amounted to 2% of the total loans in the 10 largest banks operating in the Egyptian market and 1.9% in the five largest banks.
CBE indicated that banks allocated 87.4% of their total non-performing loans in September, compared to 86.2% in June. The percentage of these allocations reached 90.1% in the top 10 banks and 89.1% in the top five banks operating in the Egyptian market.
“The allocations that banks have formed to address doubtful debts amounted to EGP 504.897bn in September 2024. The share of the top ten banks from these allocations was EGP 393.947bn, while the allocations in the top five banks amounted to EGP 352.127bn,” according to CBE.
Furthermore, banks have formed reserves worth EGP 867.121bn, of which the share of the top 10 amounted to EGP 710.220bn, while the amount of reserves in the top five banks amounted to EGP 625.149bn.
Private sector
CBE revealed that the private sector’s share of the total loans granted by banks to their customers declined to 43.8% in September, compared to 45.3% in June 2024.
The private sector acquired 37.6% of the total loans at the 10 largest banks operating in Egypt. On the other hand, it acquired 34% of the loans at the top five banks.
According to CBE, the lending and discount balances at banks recorded EGP 7.799trn in September 2024, compared to EGP 7.209trn in June 2024, an increase of about EGP 590bn.
The size of the lending and discount balances at the 10 largest banks amounted to EGP 6.174trn. At the top five banks, it recorded EGP 5.692trn.
Loan-to-deposit ratio
CBE revealed that the loan-to-deposit ratio in banks rose to 61.3% in September 2024, compared to 60.3% in June 2024. This ratio reached 62.7% in the top 10 banks and 65.1% in the top five banks.
It explained that the loan-to-deposit ratio in local currency rose to 53%, compared to 51.6%. This ratio recorded 51.8% in the top 10 banks and 52% in the top five banks.
The loan-to-deposit ratio in foreign currencies in banks also rose to 85.9%, compared to 85.8%, and this ratio recorded 95% in the top 10 banks and reached 107.4% in the top five banks.
Customer deposits
CBE said that total deposits in banks jumped to EGP 12.776trn in September 2024, compared to EGP 11.991trn in June 2024, an increase of EGP 785bn, noting that the top 10 banks account for EGP 9.882trn of these deposits, accounting for 77.348% of the total deposits, while the volume of deposits at the top five banks amounts to EGP 8.518trn, with a share of 67.141%.
The ratio of deposits to assets in banks amounted to 60.4% in September 2024, compared to 62.1% in June 2024, and this percentage amounted to 59.5% at the top 10 banks and 59% at the top five.
Actual liquidity ratio
CBE indicated that the average actual liquidity ratio in local currency at banks declined in September 2024 to 32.1% compared to 33.1 in June 2024. This ratio recorded 32.6% at the top 10 banks and reached 32.1% at the top five banks.
The average actual liquidity ratio in foreign currencies at banks also declined to 77.7% in September, compared to 83.6% in March. This ratio reached 79% at the top 10 banks and 77.8% at the top five banks.
Securities and treasury bills
CBE revealed an increase in the volume of investments of banks operating in the local market in securities and treasury bills to EGP 5.924trn in September 2024, compared to EGP 5.228trn in June 2024, an increase of about EGP 696bn.
The volume of investments of the top 10 banks in these instruments amounted to EGP 4.692trn. It amounted to EGP 4.253trn at the top five banks.
According to CBE, the percentage of the securities portfolio at banks, excluding treasury bills, rose to 19.4% of the total assets in September 2024, compared to 18.8% in June 2024. This percentage reached 20.7% at the top 10 banks, and 21.1% at the top five banks.
Capital base
CBE said that the ratio of the capital base to risk-weighted assets at banks rose to 19.1% in September 2024, compared to 18.6% in June 2024, and this percentage reached 19.5% at the top 10 banks, and 19% at the top five banks.
CBE indicated that the ratio of the first tier of capital in banks to risk-weighted assets increased to 15.8% in September, compared to 15.2% in June. This ratio reached 15.6% in the top 10 banks and 15% in the top five banks.
The ratio of the continuous basic capital in banks to risk-weighted assets reached 13.1% in September, compared to 12.3% in June. This ratio reached 12.7% in the top 10 banks and 11.8% in the top five banks.
The leverage ratio in banks increased to 7.7% in September, compared to 7.5% in June, and this ratio reached 7.3% in the top 10 banks and 7% in the top five banks.
According to CBE, the minimum limit set for this ratio should not be less than 3%.
In another context, CBE revealed a decline in net open positions in foreign currencies to 3% of the total capital base of banks operating in the Egyptian market in September 2024, compared to 3.5% in June 2024.
Additionally, CBE explained that this percentage reached 3.4% in the 10 largest banks and 3.8% in the top five banks.
It stressed that the value of the total surplus or deficit in foreign currency positions should not exceed 20% of the capital base.
Net profits
CBE said that banks achieved net profits of EGP 426.911bn in the first nine months of this year.
It explained that the net return in banks amounted to EGP 669.365bn. Net activity revenues amounted to EGP 828.556bn, and total expenses reached EGP 401.645bn.
According to CBE, the top 10 banks accounted for about 79.73% of the sector’s profits, recording about EGP 340.411bn. The top five banks, including the National Bank of Egypt (NBE), Banque Misr, and the Commercial International Bank (CIB), accounted for 65.060% of the sector’s profits, recording EGP 277.749bn.
The net return of the top 10 banks was EGP 521.694bn in September 2024. Net activity revenues amounted to EGP 650.077bn, and total expenses amounted to EGP 309.666bn.
The net return of the top five banks recorded EGP 434.524bn, net activity revenues amounted to EGP 545.96bn, and their total expenses amounted to EGP 268.227bn in June 2024.
Return on average assets
CBE said that the return on average equity of banks operating in the local market stabilized at 32.2% in September 2024, unchanged from June and March of the same year. The return on average assets stabilized at 2%, and the net return margin reached 5.2%.
The return on average equity in the top 10 banks recorded 33.6%, while the return on average assets amounted to 2%, and the net return margin reached 5%.
According to CBE, the top five banks’ return on average equity was 33.1%, the return on average assets was 1.8%, and the net return margin reached 4.8%.
