Egypt bank deposits rise to LE4.898 trillion

 

Egypt bank deposits rise to LE4.898 trillion

 

By Ahmed Kamel

Deposits at Egyptian banks rose by LE110.2 billion (around $7.06 billion) to LE4.898 trillion in August, data from the Central Bank of Egypt (CBE) showed. Non-government deposits, comprising local and foreign currencies, rose by LE77.8 billion to LE4.088 trillion at the end of August.

Non-government deposits in the Egyptian pound totaled LE3.425 trillion at the end of August, according to CBE data.

Government deposits, comprising local and foreign currencies, rose by LE32.4 billion to LE810 billion in August. The government deposits in the local currency totaled LE701.78 billion.

Bank loans added LE43.4 billion to total LE2.487 trillion at the end of August, according to CBE data. Nongovernmental loans in local and foreign currencies rose by LE25.6 billion to LE1.554 trillion in August.

Loans to the agricultural sector, in local and foreign currencies, rose to LE31.862 billion in August. Loans to the industrial sector, in local and foreign currencies, increased to LE487.765 billion in August, up from LE487.047 billion a month earlier.

The net domestic assets of Egypt’s banking sector, excluding the CBE, rose by LE171.37 billion to LE6.676 trillion in August, according to CBE data.

The banks’ balances abroad added LE 20.982 billion to LE256.889 billion in August. The bank’s balances in Egypt fell by LE16.937 billion to LE902 billion in August.

The banks’ investments in securities increased by LE75 billion to LE2.727 trillion at the end of August, CBE data showed.

The Egyptian banks’ external liabilities rose by LE12.538 billion to LE138.133 billion in August. Meanwhile, the banks’ liabilities in Egypt shed LE3.907 billion to LE205.788 billion in August, CBE data showed.

The banks’ provisions rose to LE151.93 billion in August, up from LE150.877 billion the previous month.

As part of efforts to soothe the negative impacts of the Covid-19 pandemic, the CBE has extended its initiatives to support the nation’s tourism sector and retail loans for workers in the tourism sector for one year, expiring December 2021.

The move comes in line with the central bank’s policies to cushion the pandemic’s negative impacts on the local travel industry, which has been hit hard since March.

The CBE has called on the local banks to keep provisions intact and well observe the requirements of the International Financial Reporting Standard IFRS 9.

Inflation slightly up

The nation’s core inflation rate rose to four per cent in November, up from 3.9 per cent in October, the CBE said in a statement last week. The slight increase reflects growing demand on the local market as the economy recovers from the repercussions of the Covid-19 pandemic. 

Core inflation, as computed by the CBE, takes out fruit, vegetables and energy from the consumer price index (CPI) components to reveal a stable reading of price levels.

Urban inflation rose to 5.7 per cent in November, up from 4.5 per cent a month earlier, data from the state-run Central Agency for Public Mobilization and Statistics (CAPMAS) showed.

FAB to decide on Bank Audi deal soon

First Abu Dhabi Bank is expected to complete the due diligence and submit an offer to acquire the Egyptian unit of Bank Audi Group by the end of the month.

Bank Audi Group said in January it would sell its unit in Egypt, as part of its plan to exit from some of its investments in a number of markets.

Bank Audi Group aims at the strengthening of its financial position according to regulations set by Banque Du Liban, which has obliged all Lebanese lenders to increase their capital by 20 per cent before the end of June 2021.

Bank Audi Egypt posted pre-tax profits worth LE1.5 billion on the January-September period, up from LE1.4 billion on the same period a year earlier.

ABC Bank to take over Blom unit

In a deal expected to exceed $700 million, Bahrain-based ABC Bank is scheduled to sign a deal with Blom Bank to buy its unit in Egypt. However, no deadline has been set for the deal yet.

Blom Bank’s paid up capital stands at LE2 billion (around $127.4 million). It has 41 branches all over Egypt.

The Egyptian banking sector is attractive to many Arab Gulf lenders, which are seeking expansion, especially in the Middle East and North Africa (MENA) region.

Leasing contracts dip 50%

The pandemic has cast a shadow on the nation’s leasing deals with the number of leasing contracts fell to 122 in October 2020, down from 296 in the same month a year ago, data from the Financial Regulatory Authority (FRA) showed.

The value of contracts plunged 50 per cent to LE2.4 billion in October 2020, compared to LE4.7 billion in October 2019. Leasing fell by six per cent to LE42.5 billion on the January-October period, according to FRA data.