CBE reports total financial position of banks operating in the local market at LE 13.79trn

In a recent Central Bank of Egypt (CBE) report, the bank revealed that the total financial position of banks operating in the local market jumped to around LE 13.798 trillion during the first half of 2023.

The CBE revealed that the collective capital of banks operating in the local market was LE 323.776 billion, while reserves were LE 492.386 billion, and provisions were LE 305.455 billion.

Banks operating in the Egyptian market recorded cash balances of nearly LE 106.241 billion in June 2023, with balances in local and foreign banks of LE 2.326 trillion and LE 308.623 billion, respectively.

Banks’ customer lending and debit balances logged LE 4.798 trillion with securities portfolio and bank investments in treasury bills reaching LE 4.855 trillion. The CBE noted that other assets amounted to LE 1.402 billion but did not disclose further details.

Obligations between local banks hit LE 575.767 billion while obligations with banks outside of Egypt was LE 450.686 billion.

Bonds and long-term loans were recorded at LE 541.945 billion, with additional unidentified liabilities reached LE 1.657 trillion.

Total deposits in banks operating in Egypt jumped to LE 9.450 trillion in H1 2023. According to the report, the top 10 largest banks in Egypt held a collective LE 7.385 trillion of total deposits, while the 5 largest banks recorded LE 6.470 trillion.

Deposits to assets ratio fell to 68.6 percent in June 2023, compared to March 2023’s recorded 70.9 percent. For the top 10 largest banks, this was 67.5 percent, with the top 5 holding 67.2 percent.

The average LE actual liquidity ratio dropped to 37.6 percent in June 2023, compared to 39.7 percent in March 2023. The top 10 largest banks held 36.1 percent while the top 5 took 35.8 percent.

In terms of foreign currency, the average actual liquidity ratio declined to 70.1 percent in June 2023, compared to 75.3 percent in March 2023. This ratio was 68 percent at the 10 largest banks and 65.9 percent at the 5 largest banks.

Overall loan-to-deposit ratio in banks operating in the Egyptian market jumped to 50.9 percent in June 2023, compared to 48.9 percent in March 2023. This ratio was 52.8 percent at the 10 largest banks and 54.6 percent at the top 5 banks.

Loan-to-deposit ratio in LE saw a slight uptick to 44.7 percent in June 2023, compared to 43.1 percent in March 2023. This ratio was 44.9 percent at the 10 largest banks and 45.5 percent at the 5 largest banks.

The loan-to-deposit ratio in foreign currency in banks also increased to 76.4 percent in June 2023, compared to 71.5 percent in March 2023. This ratio was 86.3 percent at the 10 largest banks and 96.7 percent at the top five banks.

The private sector held 53.6 percent of the total loans granted by banks to customers in June 2023, compared to 55.3 percent in March 2023.

During H1 2023, banks recorded reserves worth LE 492.386 billion, of which LE 377.942 billion were held by the 10 largest banks and LE 326.422 billion by the 5 largest banks.