The financial position of banks operating in Egypt increased by EGP 111.346bn, to EGP 8.059trn in July 2021, compared to EGP 7.948trn at the end of June.
In a recent report, the Central Bank of Egypt (CBE) said that the capital of banks in the local market amounted to EGP 193.642bn in July, while reserves recorded about EGP 353.957bn, and the volume of allocations in banks amounted to about EGP 173.108bn.
According to CBE, the total bonds and long-term loans in banks amounted to EGP 245.497 bn in July, and the total liabilities of banks amounted to about EGP 254.978bn. Meanwhile, the foreign liabilities of banks operating in the local market amounted to about EGP 102.806bn.
CBE indicated that the total deposits in banks increased to about EGP 5.818trn at the end of July.
On the assets side, CBE explained that the cash balance in banks amounted to about EGP 65.552bn in the same period.
Moreover, banks’ total investments in local securities and treasury bills amounted to EGP 2.869trn. Their balances with banks in Egypt amounted to EGP 1.175trn, while their balances with banks abroad amounted to about EGP 255.085bn.
According to the CBE, the volume of customer lending and discount balances amounted to about EGP 2.855trn, while the volume of other assets amounted to EGP 837.988bn in end-July.
CBE report revealed that total bank deposits recorded EGP 5.837trn at the end of July, compared to EGP 5.750trn at the end of June 2021.
According to CBE, the volume of government deposits amounted to EGP 1.079trn, of which EGP 939.203bn in local currency, and EGP 139.8bn in foreign currencies.
The volume of non-governmental deposits amounted to EGP 4.758trn, including EGP 4.084bn in local currency and EGP 671.111bn in foreign currencies.
The CBE said that the volume of credit facilities granted by banks operating in the local market to their customers amounted to EGP 2.855trn in July 2021. It also pointed to a decrease in the volume of these facilities by EGP 48.2bn, or 1.7%.
Credit facilities are the loans granted by banks to clients, along with documentary credits and letters of guarantee that they open to cover import operations.
The CBE attributed this decline to the EGP 50.1bn in the volume of credit facilities granted by banks to the government, a decline of 4.5%. This was accompanied by an increase of EGP 1.9bn in the volume of facilities granted to non-government parties, at a rate of 0.1%.
It explained that the decrease in the balances granted to the government was the result of a decrease in the volume of facilities in local currency, amounting to EGP 57.8bn. There was also an increase in facilities in foreign currencies, equivalent to EGP 7.7bn.
The CBE explained that the private business sector obtained about 60.4% of the total non-governmental credit facilities granted by banks to the various economic sectors.
It pointed out that the industrial sector received the most financing among the sectors financed by banks, with 30.6% of the total of those facilities. It was followed by the services sector, which acquired 25.2%, and then the trade sector by 10.7%.
Meanwhile, the agriculture sector, as usual, acquired the lowest percentage of the volume of credit facilities granted by banks, with only 2.1% of the volume of those facilities in July 2021.
According to the CBE, other sectors were not mentioned in detail. They include the household sector, which obtained about 31.4%of the volume of those facilities.
Banks’ T-bills investments
The CBE revealed that public sector banks’ investments in government treasury bills amounted to EGP 235.968bn at the end of August, compared to EGP 257.920bn at the end of July.
According to the CBE, the investments of all financial institutions in treasury bills recorded about EGP 1.557tn at the end of August, compared to EGP 1.564tn at the end of July.
The investments of specialized banks in treasury bills amounted to EGP 39.110bn in August, compared to EGP 37.062bn in July, while the investments of private sector banks recorded EGP 346.5bn, compared to EGP 323.186bn.
The investments of foreign bank branches in T-bills amounted to EGP 45.5bn in August, compared to EGP 42.7bn at the end of July.
Foreign and domestic assets
On the other hand, CBE indicated that the net foreign assets of the banks operating in Egypt decreased by EGP 6.1bn to EGP 245.206bn in July, compared to about EGP 251.270bn in June.
CBE attributed this decline to the drop in net foreign assets at banks by EGP 52.7bn, and the increase in net foreign assets at CBE by EGP 46.6bn.
Furthermore, CBE pointed out an increase in net domestic assets, during the same month, by EGP 70.4bn, or 1.4%. This comes as a result of an increase in domestic credit by EGP 2bn, or 0.04%. Additionally, the negative balance of the net budget items decreased by EGP 101.4bn, at a rate of 23.6%.
Meanwhile, domestic credit rose as a result of the increase in net liabilities by the government by EGP 6.6bn, and the decline in liabilities from the private business sector by EGP 2.9bn, and the household sector by EGP 1.7bn