AIB tops loan growth among banks, driven by institutional financing

Daily News Egypt
5 Min Read

Despite the tightened monetary policy in 2022 to control record inflation rates, bank loan portfolios witnessed a boom, especially institutional loans, whose growth was partly driven by the rise in the dollar price against the Egyptian pound.

According to Central Bank data, loan and discount balances for customers grew by 32.09%, reaching EGP 4.09trn, compared to EGP 3.09trn during the same period in the previous year.

Arab Investment Bank (AIB) was the fastest-growing bank in total loans, with a portfolio reaching EGP 20.9bn in December 2022, compared to EGP 11.3bn in the same month of 2021, with a growth rate of 84.96%. This growth was supported by loans to institutions, reaching EGP 15.5bn compared to EGP 7.5bn, while the remaining loans to individuals amounted to EGP 5.34bn compared to EGP 3.8bn.

The National Bank of Egypt (NBE) surprised the market with its lending performance in 2022. Despite its massive portfolio, the bank achieved a growth of about 47.4%, placing it in the second position as the fastest-growing loan portfolio in the market.

The bank’s loan portfolio reached EGP 1.73trn in December 2022, compared to EGP 1.2trn in 2021, supported by loans to institutions amounting to EGP 1.5trn compared to EGP 1.01trn. The remaining loans to individuals reached EGP 0.22trillion, 80% of which were personal loans, compared to EGP 0.16trn in the same period of the previous year.

The loans of NBE in foreign currency increased to EGP 541.4bn compared to EGP 319bn in 2021. The bank stated that loans to large companies grew by 50.2% through financing key activities of the national economy, reaching EGP 1.36bn.

MID Bank came in third as the fastest-growing bank in the loan rate, with a loan portfolio of EGP 14bn in December 2022, compared to EGP 9.5bn in the previous year, with a growth rate of 47.44%. This growth was supported by loans to institutions, which reached EGP 10.4bn compared to EGP 7.9bn. The remaining loans to individuals amounted to EGP 3.5bn compared to EGP 1.6bn the previous year, with most of them being personal loans.

Baraka Bank came in fourth as the fastest-growing bank in the loan rate, with a loan portfolio of EGP 35.4bn in December 2022, compared to EGP 24.2bn the previous year, with a growth rate of 46.28%. This growth was supported by loans to institutions, which reached EGP 31.05bn compared to EGP 21.7bn the previous year. The remaining loans to individuals amounted to EGP 4.33bn compared to EGP 2.48bn the previous year, with most of them being personal loans.

Arab African International Bank (AAIB) had a loan portfolio of EGP 126.1bn in December 2022, compared to EGP 86.4bn the previous year, with a growth rate of 46%. Most of these were loans to institutions, reaching EGP 108.9bn compared to EGP 72.1bn in the same period of the previous year. The remaining loans to individuals amounted to EGP 16.6bn compared to EGP 13.8bn, most of which were personal loans.

Faisal Islamic Bank was the slowest among banks in overall loan growth, with a portfolio of EGP 14.5bn in December 2022, compared to EGP 14bn, with a growth rate of 5.07%. Most of the loans went to institutions, reaching EGP 12.04bn compared to EGP 12.2bn the previous year. Loans to individuals amounted to EGP 2.5bn compared to EGP 1.7bn the previous year, where most personal loans were real estate-related. In contrast, most institutional loans went to large and medium-sized companies.

AlexBank did not achieve rapid growth like the other banks, with a loan portfolio of EGP 59.6bn in December 2022, compared to EGP 56bn in the same period of the previous year, with a growth rate of 6.81%. Most of the loans went to institutions, reaching EGP 31.2bn compared to EGP 28.3bn in the same period of the previous year. Loans to individuals amounted to EGP 28.4bn compared to EGP 25.9bn in the same period of the previous year.

First Abu Dhabi Bank also did not get its share of rapid growth, with a loan portfolio of EGP 48.9bn in December 2022, compared to EGP 44.03bn, with a growth rate of 11.06% in the same period of the previous year.

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