The Central Bank of Egypt (CBE) revealed that the deposits in the banks operating in the Egyptian market increased by about EGP 126.34bn to EGP 4.152tn in September, compared to EGP 4.026tn in August 2019.
The CBE indicated in its latest report on the performance of banks until the end of September, that government deposits in the local and foreign currencies increased by EGP 41.76bn to EGP 617.657bn, compared to EGP 575.897bn in August. It added that non-governmental deposits with banks increased by EGP 84.587bn to EGP 3.534tn in September, compared to EGP 3.450tn in August.
The non-governmental deposits in local currency reached EGP 2.840tn in September, compared to EGP 2.741tn in August, while the non-governmental deposits in foreign currencies amounted to about EGP 694.721bn from EGP 708.419bn in the comparison period.
According to the CBE, the share of deposits in foreign currencies declined to about 19.54% of the total deposits in banks at the end of September, compared to about 20.40% at the end of August.
In addition, the growth rate of total deposits in banks was 13.10% in September, compared to 11.91% in August, indicating that the growth of deposits in local currency was 18.9%, compared to 16.9%, while the growth of deposits in foreign currencies was -5.7% in September against -4% in August.
The CBE indicated that the household sector acquired about 80.7% of the total deposits in banks, pointing out that this sector acquired about 83.8% of the deposits in the local currency, and 68.3% of the deposits in foreign currencies.
Also, the CBE said that the credit facilities granted by banks operating in the local market to their customers during the period from July to September 2019 recorded a decrease of 1.7%, reaching EGP 1.822tn.
Credit facilities refer to loans granted by banks to their customers, in addition to letters of credit and guarantee, which they grant to customers to cover import operations.
The CBE indicated in its monthly report issued last Tuesday that the private business sector obtained about 59.7% of the total non-governmental credit facilities granted by banks to the various economic sectors. The CBE said that the industrial sector came at the forefront of businesses funded by banks, as it alone got about 32.8% of the total of these facilities, followed by the services sector which accounted for 26.4% of them, then the trade sector with 10.8%. As usual, the agriculture sector received the lowest percentage of the credit facilities granted by banks, as it acquired only 1.7% of the facilities until the end of September 2019.
According to the CBE, there are other sectors, which were not mentioned in detail, including the household sector, which received about 28.3% of these facilities.
As for the loan portfolios in banks, the CBE revealed a rise to EGP 1.807tn in September, compared to EGP 1.795tn in August, an increase of about EGP 11.872bn.
Additionally, loans granted to the non-governmental sector increased to EGP 1.323tn at the end of September, compared to EGP 1.31tn at the end of August.
In the same context, the CBE data showed that public sector banks’ investments in government treasury bills decreased to EGP 313.07bn at the end of October, compared to EGP 349.09bn in September, a decrease of EGP 36bn. In contrast, private banks’ investment increased to EGP 299.407bn in October, compared to EGP 283.49bn in September, an increase of EGP 15.917bn.
The investments of specialised banks recorded about EGP 19.336bn in October, compared to EGP 19.644bn in September, a decrease of about EGP 308m, while investments of foreign banks’ branches in Egypt declined by about EGP 3bn to EGP 32.1bn at the end of October, compared to EGP 35.41bn at the end of September.
Meanwhile, banks’ investments in securities, which include stocks, bonds, and investment fund securities, increased by EGP 98bn to EGP 1.995tn in September, compared to EGP 1.896tn at the end of August. Meanwhile, banks’ investments in securities in the local currency hit EGP 1.637tn in September, compared to EGP 1.536tn in August, while investments in foreign currencies recorded EGP 357.4bn in September, compared to EGP 360.1bn in August.
The CBE revealed also that the financial position of banks increased by about EGP 184.927bn to EGP 5.822tn during September, compared to EGP 5.637tn in August.