The Central Bank of Egypt (CBE) has revealed that the total financial position of banks operating in the local market increased to EGP 10.511trn in August 2022, compared to EGP 8.627trn in December 2021, a growth of about EGP 1.88trn.
In its recent report, the CBE said that in terms of assets, the total cash balance in banks amounted to EGP 74.565bn, while the local balances of banks amounted to about EGP 1.645trn, while their balances abroad amounted to about EGP 242.747bn.
It added that the balances of lending and discounting to clients recorded about EGP 3.643trn, while the stock portfolio and banks’ investments in treasury bills recorded EGP 3.956trn.
Regarding liabilities, the CBE stated that the capital of locally operating banks amounted to EGP 277.912bn, and reserves recorded EGP 432.687bn, while the balance of provisions amounted to about EGP 221.935bn.
The liabilities of banks to each other in Egypt recorded about EGP 329.018bn, while their liabilities to banks abroad recorded EGP 241.601bn, and the total deposits amounted to EGP 7.631trn, while the balances of bonds and long-term loans amounted to EGP 365.815bn.
CBE also revealed an increase in customer deposits in the banking sector in August 2022 reaching EGP 7.648trn, compared to EGP 6.450trn in December 2021, an increase of about EGP 1.198trn.
The bank’s monthly statistical bulletin revealed that government deposits amounted to EGP 1.589trn, of which EGP 1.382trn were in the local currency, and EGP 206.8bn in foreign currencies.
The volume of non-governmental deposits reached EGP 6.058trn, of which EGP 5.147trn is in the local currency, and about EGP 911.5bn is in foreign currencies.
According to the CBE, the public business sector’s share of non-governmental deposits in local currency amounted to EGP 108.003bn, the private business sector EGP 763.36bn, the household sector EGP 4.256trn, and non-residents EGP 19.213bn.
The public business sector acquired about EGP 53.354bn of non-governmental deposits in foreign currencies, the private business sector EGP 281.2bn, the household sector EGP 547.5bn, and non-residents EGP 29.5bn.
CBE said that the household sector accounted for 79.9% of the total deposits in banks operating in the Egyptian market in August 2022.
The household sector accounted for about 83% of total deposits in local currency, while its share of deposits in foreign currencies amounted to about 62.1%.
The report explained that the growth rate in total deposits in banks reached about 25.24% during August 2022, compared to 24.99% in July. CBE pointed out that the growth rate in deposits in local currency recorded 23.4% compared to 23.8%, while the growth rate of deposits in foreign currencies recorded 36.8%, compared to 32.5%.
According to the CBE, the share of deposits in foreign currencies declined to 14.68% of total deposits in banks in August 2022, compared to 14.74% in July.
The CBE also revealed an increase in the balances of credit facilities granted by banks to their clients in August 2022 to about EGP 3.643trn, an increase of EGP 79.1bn compared to July.
Credit facilities mean loans granted by banks to their clients, in addition to documentary credits and letters of guarantee that are opened to them to cover import operations.
The CBE attributed this increase to the increase in the balances of credit facilities granted by banks to non-government by EGP 52.1bn, at a rate of 2.4%, and the balances of credit facilities granted to the government by EGP 27bn, at a rate of 2%.
The increase in the balances granted to the government came as a result of the increase in the balances in foreign currencies by EGP 18.4bn, and the balances in the local currency EGP 8.6bn.
According to the relative distribution of non-governmental credit facilities balances, the private business sector obtained 61.4% of the total of those balances in August.
According to the sectors of economic activity, the industrial sector got 28.3% of those balances, followed by the service sector with 26.8%, then the trade sector with 10.7%, the agricultural sector with 2.3%, and undistributed sectors with 31.9%. The household sector accounted for 31.6%.
On the other hand, the CBE said that the net domestic assets of the Egyptian banking sector increased in July and August, by EGP 207.7bn, or a rate of 3%, as a result of an increase in domestic credit by about EGP 210.3bn, at a rate of 3.1%, and a decrease in net budget items by about EGP 2.6bn.
CBE explained that domestic credit increased as a result of an increase in net liabilities from the government by EGP 157.1bn, liabilities from the private business sector by EGP 34.8bn, and the household sector by EGP 19.1bn. The volume of liabilities from the public business sector decreased by EGP 700m.
On the other hand, the CBE revealed a decrease in the net foreign assets of the banking system by EGP 13.8bn in July and August, pointing out that this decrease came as a result of a decline in its net foreign assets by EGP 1.8bn, and a decrease in the net foreign assets of banks by EGP 12bn.