Financial position of banks in Egypt increases to EGP 6.676trn in August 2020: CBE

Published 05 Dec,2020 via Daily News Egypt - The Central Bank of Egypt (CBE) had revealed that the total financial position of banks working in the local market, aside from the CBE, increased by EGP 268.2bn during August 2020.

The CBE reported that the sector’s financial position reached about EGP 6.676trn in August, reflecting a growth rate of 4.2%.

According to a recent report by the CBE, the most prominent items of the banks’ financial position, at the level of assets, included the increase in total investments made by banks in local securities and Treasury bills (T-bills) during August 2020. This reached about EGP 2.727trn during the month, compared to about EGP 2.652trn in July.

The volume of bank balances operating in the local market reached about EGP 902.2bn, compared to EGP 918.937bn, in the same comparison period. At the same time, the volume of their assets abroad amounted to EGP 256.889bn, compared to EGP 235.907bn.

According to the CBE, the volume of loan and discount balances for clients reached about EGP 2.269trn in August 2020, compared to about EGP 2.226trn in July.

Regarding liabilities, the CBE said that the capital of banks operating in the local market recorded about EGP 172.974bn in August 2020, compared to EGP 173.179bn in July 2020.

Reserves recorded about EGP 313.472bn at the end of August, compared to EGP 314.349bn at the end of July. The volume of allocations in banks amounted to EGP 151.934bn, compared to EGP 150.877bn in the comparison period.

According to the CBE, the total volume of bonds and long-term loans reached EGP 209.865bn at banks at the end of August 2020, compared to EGP 209.464bn at the end of July.

The total liabilities of banks for other banks in Egypt stood at about EGP 205.788bn by the end of August 2020, compared to EGP 209.695bn at the end of July. The liabilities of banks operating in the local market towards banks abroad amounted to about EGP 138.133bn in August, compared to EGP 125.595b in July.

The CBE indicated an increase in total bank deposits to about EGP 4.882trn at the end of August 2020, compared to about EGP 4.774trn in July.

Government deposits recorded about EGP 810.029bn at the end of August, compared to EGP 777.608bn at the end of July, an increase of EGP 32.421bn.

According to the CBE, non-government deposits increased by EGP 77.857bn to reach EGP 4.088tn in August, compared to EGP 4.010trn in July.

It said that the volume of credit facilities granted by banks operating in the local market to their customers reached about EGP 2.269trn in August 2020. It also pointed out that the volume of these facilities increased by EGP 69.4bn during August, reflecting a growth rate of 3.2%.

Credit facilities mean the loans granted by banks to their clients, in addition to documentary credits and letters of guarantee opened for them to cover import operations.

The CBE attributed this rise to an increase by EGP 42.8bn in the volume of credit facilities granted by banks to non-government, at a rate of 2.8%. There was also an increase in the volume of facilities granted to the government by EGP 26.6bn at a rate of 4%.

It noted that the increase in the funds granted to non-government entities came as a result of the increase in the volume of facilities in local currency, at a value of EGP 49.8bn, while the facilities in foreign currencies decreased by EGP 7bn.

The CBE also said that the private business sector obtained about 59.6% of the total non-governmental credit facilities granted by banks to various economic sectors.

It added that the industrial sector received the most financing from banks, as it alone obtained about 31.5% of the total facilities. It was followed by the services sector, which acquired 25.6%, and then the trade sector with 10.5%.

The agricultural sector, as usual, obtained the lowest percentage of the volume of credit facilities granted by banks to the various economic sectors. It acquired only 2% of the volume of these facilities until the end of July 2020.

According to the CBE, there are other sectors which were not mentioned in detail, foremost of which was the household sector that received 30.4% of the volume of these facilities.

The CBE noted that the net foreign assets of the banking sector rose by EGP 38.2bn during July and August 2020, to reach about EGP 168.4bn in August, compared to about EGP 130.214bn in July.

It said that this increase in net foreign assets came as a result of an increase in its net foreign assets, equivalent to about EGP 28.4bn, and an increase in net foreign assets with banks, equivalent to EGP 9.8bn.

This comes at a time when the CBE indicated an increase in the net domestic assets of the banking system by EGP 105.9bn during August, reflecting a growth rate of 2.4%.

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