Central Bank of Egypt reveals performance indicators of banking system in FY 2020/21

Total financial position of banks operating locally reaches EGP 1.54trn

The Central Bank of Egypt (CBE) revealed the most prominent performance indicators of banks operating in the local market in fiscal year (FY) 2020/21.
According to CBE, the total financial position of banks, other than CBE, increased by EGP 1.539trn to about EGP 7.948trn during FY 2020/21 , with a growth rate of 24%.
CBE said that the capital of banks operating in the local market amounted to about EGP 185.357bn in June 2021, while reserves recorded about EGP 362.183bn and the volume of provisions amounted to about EGP 170.349bn.
The total bank deposits increased by EGP 1.049trn to reach EGP 5.750trn in June 2021, compared to EGP 4.701trn in June 2020.
Government deposits increased to record EGP 1.031trn in June 2021, compared to EGP 745.222bn in June 2020.
Non-governmental deposits rose by EGP 762.748bn to reach EGP 4.718trn at the end of June 2021, compared to EGP 3.956trn at the end of June 2020.
In another matter, CBE said that the volume of credit facilities granted by banks operating in the local market to their customers amounted to about EGP 2.903trn at the end of June 2021, pointing to an increase in the size of these facilities by about EGP 703.3bn during FY 2020/21, with a growth rate of 32%.
Credit facilities mean the loans granted by banks to their customers, along with documentary credits and letters of guarantee that they open to them to cover import operations.
In its monthly report, CBE attributed this rise to the increase in the volume of credit facilities granted to the government by banks by EGP 431.4bn at a rate of 64.1%, and the increase in the volume of facilities granted to non-governments by EGP 271.9bn at a rate of 17.8%.
It explained that the increase in balances granted to non-government organizations came as a result of an increase in the volume of facilities in local currency, amounting to EGP 412.9.6bn and an increase in facilities in foreign currencies, equivalent to EGP 18.5bn.
The Central Bank indicated that the private business sector obtained about 60.5% of the total non-governmental credit facilities granted by banks to the various economic sectors.
He explained that the industrial sector came at the forefront of the sectors financed by banks, as it alone obtained about 30.6% of the total of those facilities, followed by the services sector, which acquired 25.3% of them, and then the trade 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, as it acquired only 2.1% of the volume of those facilities until June 2021.
According to CBE, there are other sectors, which were not mentioned in detail, on top of which is the household sector, which obtained about 31.3% of the volume of those facilities.
In another matter, the Central Bank said that the net foreign assets of the banking system rose by the equivalent of EGP 129.2bn during the period from July 2020 to June 2021, to reach the equivalent of about EGP 251.27bn.
This increase came as a result of the increase in net foreign assets at banks, equivalent to EGP 61.6bn and net foreign assets at CBE, equivalent to EGP 67.6bn.
CBE announced an increase in net domestic assets, during the same period, by EGP 692.8bn or 15.7%, as a result of an increase in domestic credit by EGP 564bn at a rate of 11.6%, and a decrease in the negative balance of net budget items by EGP 128.8bn at a rate of 29.9%.