The overall financial position of banks operating in the Egyptian market, other than the CBE, climbed by around EGP 1 trillion in January 2023, recording EGP 12.409 trillion, compared to approximately EGP 11.399 trillion by the end of December 2022, according to data provided by the Central Bank of Egypt (CBE).
The CBE stated, in its newly issued monthly report, that on the assets side, cash balances in banks in January 2023 amounted to about EGP 95.203bn. The balances of banks locally recorded about EGP 2.199trn, while their balances with banks abroad amounted to about EGP 405.595bn.
The CBE added that the balances of lending and discounting to customers recorded about EGP 4.285trn, while the stock portfolio and bank investments in treasury bills recorded EGP 4.693trn, and the volume of other assets, which the CBE did not mention in detail, amounted to EGP 730.431bn.
Regarding liabilities, the CBE stated that the banks’ capital amounted to EGP 311.387bn, and the reserves recorded EGP 452.245bn, while the balance of provisions amounted to about EGP 383.181bn.
However, Banks’ obligations to each other in Egypt amounted to EGP 509.513bn, while their obligations to banks abroad amounted to EGP 410.513bn, while the balances of bonds and long-term loans amounted to EGP 545.411bn, and the volume of other liabilities, which CBE did not mention in detail, amounted to EGP 896.101bn.
The monthly bulletin of the CBE also revealed that the volume of customer deposits in banks operating in the Egyptian market increased to EGP 9.021trn in January 2023, compared to EGP 8.580trn in December 2022, an increase of about EGP 440.977bn.
The CBE said that the volume of government deposits in banks recorded during January 2023 was about EGP 2.043trn, of which about EGP 1.715trn in local currency and the equivalent of about EGP 325.492bn in foreign currencies.
This comes as the volume of non-governmental deposits in banks amounted to about EGP 6.977trn, of which about EGP 5.494trn in local currency and about EGP 662.873bn in foreign currencies.
According to the CBE, the household sector accounted for 77.8% of the total deposits in banks operating in the Egyptian market until the end of January 2023.
It explained that the household sector accounted for about 82.5% of total deposits in local currency, amounting to EGP 4.517trn, while its share of deposits in foreign currencies accounted for about 59.7%, amounting to about EGP 859.539bn.
Furthermore, it pointed out that the volume of public business sector deposits in local currency amounted to about EGP 125.432bn, while its deposits in foreign currencies amounted to about EGP 98.869bn.
The private business sector’s deposits in local currency amounted to EGP 832.992bn, while its deposits in foreign currencies amounted to EGP 480.695bn.
Deposits of non-residents in the foreign world sector in local currency amounted to about EGP 19.770bn, while deposits in foreign currencies amounted to about EGP 44.325bn.
The CBE stated that the growth rate in total deposits in banks reached about 33.75% during January 2023, compared to 28.33% in December 2022, pointing out that the growth rate in deposits in local currency recorded 21.6% compared to 21.1%, while the growth rate of deposits in foreign currencies jumped to 115.9%. , compared to 78.2%.
The CBE indicated that the share of deposits in foreign currencies increased to 20.81% of total deposits in banks in January 2023, compared to 17.65% in December 2023.
In another context, CBE revealed that the balances of credit facilities granted by banks to their clients increased to about EGP 4.285trn in January 2023, an increase of EGP 720.6bn from June 2022.
Credit facilities mean loans granted by banks to their customers, 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 341.7bn, at a rate of 15.5%, and the balances of credit facilities granted to the government by EGP 378.9bn, at a rate of 27.9%.
According to CBE, the increase in the balances granted to the government came as a result of the increase in balances in foreign currencies by the equivalent of EGP 352.9bn, and the balances in local currency by EGP 26bn.
It added that according to the relative distribution of non-governmental credit facilities balances, the private business sector obtained 62.6% of the total of those balances in January 2023. According to the economic activity sectors, the industrial sector obtained 29% of those balances, followed by the services sector with 27.5%, the trade sector with a rate of 10.3%, and the agricultural sector with a rate of 2.3%.
As for the undistributed sectors, it got 30.9%, of which 30.7% was for the household sector.
The CBE said that the net domestic assets of the Egyptian banking sector increased by about EGP 1.378trn, or a rate of 19.7%, during the period from July 2022 to January 2023, as a result of an increase in domestic credit by EGP 859.6trn, at a rate of 19.1%, and net budget items by about EGP 86.4bn.
The CBE explained that domestic credit increased as a result of an increase in net liabilities from the government by EGP 910.3bn, liabilities from the private business sector by EGP 283.2bn, from the household sector about EGP 87.6bn, and the public business sector by EGP 10.8bn.
The CBE revealed a decrease in the net foreign assets of the banking system by EGP 282.4bn during the same period, pointing out that this decline came as a result of a decline in its net foreign assets by EGP 108.1bn, and a decrease in the net foreign assets of banks by EGP 174.3bn.
