Non-banking financial sector reports significant growth in Q1 2024: FRA

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Thu, 13 Jun 2024 - 10:56 GMT

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Thu, 13 Jun 2024 - 10:56 GMT

Cairo – June 13, 2024: The Financial Regulatory Authority (FRA) has released its latest findings on non-banking financial activities for the first quarter of 2024, revealing substantial growth across various sectors.

In its report, the FRA explained that total loans for micro, small, and medium enterprises (MSMEs) in Egypt surged to LE 62.8 billion in March 2024 from LE 40.9 billion in March 2023.

Financing for small and medium enterprises (SMEs) reached LE 7.9 billion by March 2024, soaring from LE 2.4 billion in March 2023. According to FRA, the number of beneficiaries for this category of financing increased to approximately 7,200, compared to 2,800 in March 2023.

Microfinance entities and associations reported that their financial standings showed significant growth, reaching about LE 54.8 billion, up from LE 38.4 billion.

Despite this financial improvement, the number of beneficiaries slightly decreased to 3.8 million from the previous year's 3.9 million.

The real estate sector recorded total financing of LE 5.318 billion in Q1 2024, marking a substantial surge of 140.4 percent from LE 2.212 billion in Q1 2023, with the number of real estate financing contracts rising to 3,019, up from 1,319.

Consumer finance companies reported disbursing LE 12.072 billion in financing during Q1 2024, reflecting an 18.9 percent increase from LE 10.155 billion in Q1 of last year.

The total number of clients decreased by 5.8 percent to 804,800 clients from 853,900, according to the FRA report.

The consumer financing primarily focused on the acquisition of cars and vehicles (35.80 percent), electrical appliances (15.70 percent), electronics (9.70 percent), single-invoice purchases from various stores and chains (8.30 percent), and clothing, shoes, watches, and jewelry (6 percent).

The value of leasing contracts saw a downturn in the first quarter of the year, decreasing to LE 23.420 billion in Q1 2024 from LE 28.08 billion in Q1 2023, marking a 16.6 percent decline. The number of contracts reduced to 400 from 507.

Sector-wise, the majority of leasing was allocated to real estate and land (71.94 percent), followed by machinery and equipment (6.27 percent), transport vehicles (5.77 percent), heavy equipment (4.55 percent), production lines (3.40 percent), and private cars (3.17 percent).

 

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