Nonperforming loans were recorded at EGP 154.853 billion in October, compared to EGP 152.999 billion in September 2020
Egypt’s banking sector’s total financial position in the local market, excluding the Central Bank of Egypt, climbed to EGP 6.982 trillion in October 2020, compared to EGP 6.889 trillion recorded in September 2020, announced CBE.
The banks’ total capital recorded about EGP 174.592 billion in October 2020, while total reserves reached EGP 314.082 billion, wrote CBE in its monthly report on bank performance indicators and the Egyptian economy.
Nonperforming loans were recorded at EGP 154.853 billion in October, compared to EGP 152.999 billion in September.
Investments in Treasury bills (T-bills) and the volume of securities in banks dropped to EGP 2.702 trillion in October, compared to EGP 2.784 trillion in September.
Customer deposits went up by EGP 36 billion in October, recording at EGP 5.088 trillion, compared to EGP 5.052 trillion in the previous month, wrote CBE.
On the other side, government deposits decreased by EGP 11.3 billion, recording at EGP 874.1 billion in October, compared to EGP 885.4 billion in the September. G. deposits in EGP were around 765.1 billion, with foreign currency deposits were recorded to the equivalent of EGP 108.9 billion.
The central bank added that non-government deposits increased in October to EGP 4.213 trillion, compared to EGP 4.167 trillion in September. The volume of non-governmental deposits in local currency reached about EGP 3.560 trillion in October compared to EGP 3.513 trillion in September.
CBE indicated that the public sector accounted for about EGP 62.4 billion of those deposits, whilst the private sector amounted to about EGP 457.8v. Meanwhile, the household sector recorded about EGP 3.027 trillion, whilst other sectors, including expats, acquired about EGP 12 billion.
The CBE added that foreign currency deposits recorded about EGP 653.8 billion in October, compared to EGP 653.5 billion in September 2020.
The public business sector provided about EGP 34.8 billion of these deposits, whilst the private sector about EGP 161.3 billion, and the household sector about EGP 450.1 billion. As for other sectors, including expats, they provided EGP 7.5 billion.
According to the CBE, the household sector accounted for 82.9 percent 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 percent of deposits in local currency, while it amounted to 69.6 percent of deposits in foreign currencies.
It also said that the growth rate in total deposits in banks reached 19.07 percent in October, compared to 18.10 percent in September.
The CBE pointed out that the growth rate in local currency deposits recorded 24.3 percent compared to 24 percent in the comparison period, while the growth rate in foreign currency deposits recorded -3.4 percent, compared to -6.1 percent.
The foreign currency deposits to total deposits decreased to 15.41 percent in October 2020, compared to 15.54 percent in September.
On the other hand, the CBE revealed that the total loans provided to customers increased during October 2020 by about EGP 25 billion, to reach EGP 2.382 trillion, compared to EGP 2.357 trillion in September 2020.
It explained that the volume of loans granted to the government amounted to EGP 765.7 billion, of which EGP 490.9 billion were in local currency and EGP 274.8 billion were in foreign currency.
Total non-government loans rose to EGP 1.616 trillion, of which EGP 137.01 billion are in local currency.
The CBE pointed out that the agricultural activity acquired loans worth EGP 28 billion, and that industrial sector acquired about EGP 389.2 billion. At the same time, the commercial sector received about EGP 160.7 billion worth loans, the service activity acquired EGP 301.9 billion, and the remaining sectors, including the household sector, individuals, and non-profit local and foreign bodies operating in Egypt acquired EGP 490 billion.
It explained that the total loans in foreign currencies amounted to EGP 246.7 billion, as the agricultural sector acquired EGP 2.5 billion. The industrial sector acquired about EGP 117.1 billion, the commercial sector acquired EGP 14.5 billion, and the service sector EGP 98.9 billion.
The remaining sectors, including the household sector, individuals, and non-profit and foreign bodies, acquired EGP 136.2 billion.
The CBE added that the volume of credit facilities granted by banks operating in the local market to their customers reached about EGP 2.411 trillion in October 2020.
It said that the volume of these facilities increased by EGP 210.7 billion between July and October 2020, reflecting a growth rate of 9.6 percent.
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 109.8 billion, at a rate of 7.2 percent. It noted that the rise was also driven by an EGP 100.9 billion increase (15 percent) 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 117.1 billion. Meanwhile, the facilities in foreign currencies decreased by nearly EGP 7.3 billion.
The CBE explained that the private business sector obtained about 59.2 percent 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 percent of the total facilities, followed by the services sector, which acquired 24.6 percent of it, and then the trade sector with 10.9 percent.
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 percent 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 percent of the volume of these facilities.
