Central Bank of Egypt reveals performance indicators for banking system in fiscal year 2020/21

The Central Bank of Egypt (CBE) revealed the most important performance indicators of banks operating in the local market in fiscal year (FY) 2020/21.

According to the CBE, the total financial position of banks, other than the CBE, increased from EGP 1.539 billion to around EGP 7.948 billion in fiscal year 2020/21, with a growth rate of 24%.

The CBE said the capital of banks operating in the local market was around EGP 185.357 billion in June 2021, while reserves were around EGP 362.183 billion and the volume of provisions was around EGP 170.349. billion EGP.

Total bank deposits increased by EGP 1.049 billion to reach EGP 5.750 billion in June 2021, from EGP 4.701 billion in June 2020.

Government deposits increased to a record EGP 1.031 billion in June 2021, from EGP 745.222 billion in June 2020.

Non-government deposits increased by EGP 762.748 billion to EGP 4.718 billion at the end of June 2021, compared to EGP 3.956 billion at the end of June 2020.

In another case, the CBE said the volume of credit facilities granted by banks operating in the local market to their customers amounted to around EGP 2,903 billion at the end of June 2021, indicating an increase in the size of these facilities of approximately EGP 703.3. billion in the 2020/21 financial year, with a growth rate of 32%.

Credit facilities refer to loans granted by banks to their customers, as well as documentary credits and letters of guarantee that they open to them to cover import operations.

In its monthly report, the CBE attributed this increase to the increase in the volume of credit facilities provided to the government by banks by EGP 431.4 billion at the rate of 64.1%, and to the increase in the volume. facilities granted to non-governments by EGP. 271.9 billion at a rate of 17.8%.

He explained that the increase in balances granted to non-governmental organizations resulted from an increase in the volume of local currency facilities, amounting to EGP 412.9.6 billion and an increase in foreign currency facilities. , equivalent to EGP 18.5 billion.

The Central Bank reported that the private enterprise sector obtained about 60.5% of the total non-government credit facilities extended by banks to various economic sectors.

He explains that the industrial sector comes first among the sectors financed by the banks, since it alone obtains about 30.6% of the total of these facilities, followed by the services sector which acquires 25.3%, then the commercial sector by 10.7%.

The agricultural sector, as usual, obtained the lowest percentage of the volume of credit facilities granted by banks to the various economic sectors, since it acquired only 2.1% of the volume of these facilities up to in June 2021.

According to the CBE, there are other sectors, which were not mentioned in detail, to which is added the household sector, which obtained about 31.3% of the volume of these installations.

In another case, the Central Bank said that the net foreign assets of the banking system increased by the equivalent of EGP 129.2 billion during the period from July 2020 to June 2021, to reach the equivalent of about EGP 251.27 billion.

This increase results from the increase in net foreign assets in banks, equivalent to EGP 61.6 billion and net foreign assets in the CBE, equivalent to EGP 67.6 billion.

The CBE announced an increase in net domestic assets, during the same period, of 692.8 billion EGP or 15.7%, due to an increase in domestic credit of 564 billion EGP at a rate by 11.6%, and a decrease in the negative balance of budget items of EGP 128.8 billion at a rate of 29.9%.

About Ruben V. Albin

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