The Central Bank of Egypt (CBE) has revealed that the total financial position of banks operating in the local market, other than itself, increased to EGP 6.982trn in October 2020, a figure close to breaking the EGP 7trn barrier.
This compared to the approximately EGP 6.889trn recorded in September 2020.
In its monthly report which monitors the most prominent indicators of the performance of banks and the Egyptian economy, the CBE stated that the banks’ total capital recorded about EGP 174.592bn in October 2020, while total reserves reached EGP 314.082bn.
According to the CBE, the total bank provisions to nonperforming loans amounted to EGP 154.853bn in October 2020, compared to EGP 152.999bn in September 2020.
The CBE’s report revealed that the volume of the securities portfolio and investments in Treasury bills (T-bills) at banks decreased to EGP 2.702trn in October 2020. This compared to the EGP 2.784trn reported in September 2020.
In the same context, the CBE announced an EGP 36bn increase in customer deposits in the banking system in October 2020. This ensured customer deposits recorded EGP 5.088trn, compared to EGP 5.052trn in September 2020.
The CBE indicated that government deposits decreased by EGP 11.3bn to reach EGP 874.1bn in October 2020, compared to EGP 885.4bn in the previous month. It pointed out that government deposits in local currency amounted to about EGP 765.1bn, while foreign currency deposits amounted to the equivalent of EGP 108.9bn.
It added that non-government deposits increased in October 2020 to EGP 4.213trn, compared to EGP 4.167trn in September 2020.
According to the CBE, the volume of non-governmental deposits in local currency reached about EGP 3.560trn in October compared to EGP 3.513trn in September.
It indicated that the public sector accounted for about EGP 62.4bn of those deposits, whilst the private sector amounted to about EGP 457.8bn. Meanwhile, the household sector recorded about EGP 3.027trn, whilst other sectors, including expats, acquired about EGP 12bn.
The CBE added that foreign currency deposits recorded about EGP 653.8bn in October 2020, compared to EGP 653.5bn in September 2020.
The public business sector provided about EGP 34.8bn of these deposits, whilst the private sector about EGP 161.3bn, and the household sector about EGP 450.1bn. As for other sectors, including expats, they provided EGP 7.5bn.
According to the CBE, the household sector accounted for 82.9% of the total deposits in banks operating in the Egyptian market in October 2020. It said that the share of this sector amounted to 85.3% of deposits in local currency, while it amounted to 69.6% of deposits in foreign currencies.
It also said that the growth rate in total deposits in banks reached 19.07% in October, compared to 18.10% in September.
The CBE pointed out that the growth rate in local currency deposits recorded 24.3% compared to 24% in the comparison period, while the growth rate in foreign currency deposits recorded -3.4%, compared to -6.1%.
The foreign currency deposits to total deposits decreased to 15.41% in October 2020, compared to 15.54% in September.
On the other hand, the CBE revealed that the total loans provided to customers increased during October 2020 by about EGP 25bn, to reach EGP 2.382trn, compared to EGP 2.357trn in September 2020.
It explained that the volume of loans granted to the government amounted to EGP 765.7bn, of which EGP 490.9bn were in local currency and EGP 274.8bn were in foreign currency.
Total non-government loans rose to EGP 1.616trn, of which EGP 137.01bn are in local currency.
The CBE pointed out that the agricultural activity acquired loans worth EGP 28bn, and that industrial sector acquired about EGP 389.2bn. At the same time, the commercial sector received about EGP 160.7bn worth loans, the service activity acquired EGP 301.9bn, and the remaining sectors, including the household sector, individuals, and non-profit local and foreign bodies operating in Egypt acquired EGP 490bn.
It explained that the total loans in foreign currencies amounted to EGP 246.7bn, as the agricultural sector acquired EGP 2.5bn. The industrial sector acquired about EGP 117.1bn, the commercial sector acquired EGP 14.5bn, and the service sector EGP 98.9bn.
The remaining sectors, including the household sector, individuals, and non-profit and foreign bodies, acquired EGP 136.2bn.
The CBE added that the volume of credit facilities granted by banks operating in the local market to their customers reached about EGP 2.411trn in October 2020.
It said that the volume of these facilities increased by EGP 210.7bn between July and October 2020, reflecting a growth rate of 9.6%.
Credit facilities include loans granted by banks to their clients, in addition to documentary credits and letters of guarantee opened for them to cover import operations.
The CBE attributed this rise to an increase in the volume of credit facilities granted by banks to non-government bodies by EGP 109.8bn, at a rate of 7.2%. It noted that the rise was also driven by an EGP 100.9bn increase (15%) in the volume of facilities granted to the government.
It explained that the increase in funds granted to non-government entities came as a result of the increase in the volume of facilities in local currency, at a value of EGP 117.1bn. Meanwhile, the facilities in foreign currencies decreased by nearly EGP 7.3bn.
The CBE explained that the private business sector obtained about 59.2% of the total non-governmental credit facilities granted by banks to various economic sectors.
It pointed out that the industrial sector came at the top of the list of sectors financed by banks. Alone, it received about 31.5% of the total facilities, followed by the services sector, which acquired 24.6% of it, and then the trade sector with 10.9%.
The agricultural sector, continuing its usual trend, obtained the lowest percentage of the volume of credit facilities granted by banks to the various economic sectors. It acquired only 1.9% of the volume of these facilities until the end of September 2020.
According to the CBE, other sectors not mentioned in detail, but most prominent of which is the household sector, received about 31.1% of the volume of these facilities.