News
Financial position of banks in Egypt increases to EGP 15.429 trillion in February 2024: CBE
The Central Bank of Egypt (CBE) reported that banks operating in the local market saw their total financial position increase to EGP 15.429 billion in February 2024, up from EGP 14.486 billion in January – an increase of EGP 943 billion. EGP.
Breaking down:
Active
On the asset side, cash balances in banks amounted to 109.394 billion EGP. Bank balances in some of them in the country recorded 3.172 billion EGP, while their balances in banks abroad amounted to 461.327 billion EGP.
Customer loan balances and debtors recorded 5.783 billion EGP, while the securities portfolio and bank investments in treasury bills recorded 5.072 billion EGP. The volume of other assets, which the CBE did not mention in detail, amounted to 829.408 billion EGP.
Liabilities
Regarding liabilities, the CBE stated that banks’ capital amounted to EGP 410.879 billion, reserves recorded EGP 628.312 billion and allocations amounted to EGP 356.546 billion.
The banks’ liabilities to each other in the country recorded EGP 1.078 billion, while their liabilities to banks abroad recorded EGP 428.997 billion. The balances of long-term bonds and loans amounted to 622.622 billion EGP, and the volume of other liabilities, which the CBE did not mention in detail, amounted to 1.371 billion EGP.
Deposits
The CBE revealed an increase in customer deposits in banks in February 2024 to around EGP 10.617 billion, compared to EGP 10.3 billion in January 2024, an increase of around EGP 317 billion.
He explained that government deposits in banks recorded around 2.527 billion EGP, of which 2.023 billion EGP are in local currency and 504.349 billion EGP are in foreign currencies. The volume of non-governmental deposits amounted to 8.089 billion EGP, of which around 6.492 billion EGP are in local currency and around 1.597 billion EGP are in foreign currencies.
According to the CBE, the public business sector accounted for around 166.985 billion EGP of total non-governmental local currency deposits in banks in February 2024, while the share of the private business sector amounted to 1.242 billion EGP, the household sector 5.038 billion EGP. and non-residents 44.610 billion EGP.
On the other hand, the public business sector acquired almost EGP 112.168 billion of total non-governmental deposits in foreign currencies, the private business sector EGP 525.537 billion, the household sector EGP 934.349 billion and the non-resident sector EGP 25.295 billion EGP.
The CBE added that the household sector represented 74.5% of total deposits in banks operating in the Egyptian market until February 2024.
According to the CBE, the household sector acquired around 78.1% of total deposits in local currency, while its share of deposits in foreign currency amounted to around 59.4%.
He explained that the growth rate of total deposits in banks during February 2024 reached around 14.4%, highlighting that the growth rate of deposits in local currency registered 16.2%, while the growth rate of deposits in foreign currency reached 7.5%.
Furthermore, the CBE indicated that the share of deposits in foreign currency reached 19.6% of total deposits in banks in February 2024.
Credit facilities
The CBE revealed that the balances of credit lines granted by banks to their customers increased to EGP 5.783 billion in February 2024, an increase of EGP 985 billion compared to July 2023.
Lines of credit are loans that banks grant to their customers, in addition to documentary credits and letters of guarantee that they open to cover import operations.
The CBE attributed this increase to an increase in the balances of credit lines granted by banks to the government by 683 billion EGP, at a rate of 32.9%, and in the balances of credit lines granted to non-governmental entities by 302 thousand million EGP, at a rate of 11.1. %.
According to the CBE, the increase in balances granted to the government resulted from an increase in balances in local currency by EGP 473 billion and balances in foreign currencies by EGP 210 billion.
According to the relative distribution of balances on non-governmental credit lines, the private business sector obtained 61.9% of the total of these balances in February 2024. The industrial sector obtained 28.4% of these balances, followed by the services sector with 27.3%, then the commercial sector with 9.8%, while the agricultural sector obtained 2%. The remaining non-distributed sectors obtained 32.5%, including 32.3% for the domestic sector.
Internal liquidity
The CBE revealed an increase in the volume of domestic liquidity in the banking sector by 876.7 billion EGP in the period from July 2023 to February 2024, reaching around 9.125 billion EGP, with a growth rate of 10.6% .
This increase was evident in the growth of quasi-currency by 408.7 billion EGP, by 6.6%, and in the money supply by 468 billion EGP, by 22.7%.
The CBE noted that the increase in quasi-currency resulted from an increase in foreign currency deposits, estimated at 55.8 billion EGP, at a rate of 3.7%, and non-current deposits in local currency estimated at 352 .9 billion EGP, at a rate of 3.7%. rate of 7.6%. The increase in money supply resulted from an increase in current deposits in local currency by 372.2 billion EGP, at a rate of 35.4%, and an increase in cash in circulation outside the banking system by 95.8 billion of EGP, 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 the CBE, the net domestic assets of the Egyptian banking sector increased during that period by EGP 721.1 billion, at a rate of 7.9%, as a result of an increase in domestic credit by around EGP 1.615 billion. EGP, at a rate of 18.5%. , and a decrease in net budget lines by around EGP 894.5 billion.
The CBE indicated that domestic credit increased as a result of an increase in the government’s net liabilities by EGP 1.273 billion, the liabilities of the private business sector by EGP 192 billion, the public business sector by EGP 9.5 billion and of the family sector in EGP. 140.8 billion.
The CBE also indicated an increase in the banking system’s net foreign assets, equivalent to EGP 155.6 billion, during the period from July 2023 to the end of February 2024.
This increase resulted from the increase in net foreign assets in the CBE by EGP 34.2 billion, and their increase in banks by EGP 121.4 billion.
In the same context, the CBE indicated an increase in the monetary base by 180.3 billion EGP, at a rate of 11.8%, during the period from July 2023 to February 2024, reaching around 1.709 billion EGP.
This resulted from an increase in local currency bank deposits at the CBE by 93.1 billion EGP, at a rate of 20.9%, and money circulating outside the CBE coffers at 87.2 billion EGP, a a rate of 8%. The increase in the monetary base resulted from an increase in the government’s net liabilities by EGP 788.6 billion, and banks’ net liabilities by around EGP 121.9 billion, on the one hand, and a decrease in assets net foreign exchange at CBE at EGP 34.2 billion. and, on the other hand, a decrease in net budget lines by EGP 764.4 billion.