Central Bank of Egypt (Photo: Reuters)
Profits of Egyptian banks declined by 6.1 percent in the third quarter of FY 2019/2020 to reach EGP 36.9 billion by the end of March, down from EGP 39.3 billion in the same quarter of 2019, according to Central Bank of Egypt (CBE) data.
Banks’ net revenues surged to EGP 90.5 billion by the end of March, up from EGP 80.4 billion in the same period in 2019, according to the CBE.
Net revenues of banks' activities increased slightly to EGP 110.7 billion by the end of March, up from EGP 102.5 billion by the end March 2019, reported the CBE, while banks' total expenses increased to EGP 73.8 billion by the end of March 2020, up from EGP 63.2 billion by the end of March 2019.
Domestic banks’ financial position also saw an increase to reach EGP 6.16 trillion by the end of March 2020, up from EGP 5.66 trillion by the end of March 2019, with a total increase of EGP 497 billion that constitute 8.8 percent due to the increase in loans, deposits and securities investments, according to the CBE.
Banks’ assets grew to reach EGP 2.37 trillion by the end of March 2019, increasing by 34.3 percent compared to March 2019 owing to the increase in banks’ investments in T-bills and securities investments, especially because the banking system takes over 50 percent of T-bills investments.
Bank deposits decreased slightly to EGP 1.02 trillion by the end of March 2020, down from EGP 1.17 trillion in March 2019, while deposits in offshore banks also saw a significant drop to reach EGP 163.7 billion, down from EGP 275.3 billion in March 2019, according to the CBE.
On the other hand, deposits grew to EGP 4.4 trillion by the end of March 2020, up from EGP 3.9 trillion by the end of March 2019.
The CBE has taken a number of precautionary and pre-emptive procedures to protect the national economy and Egypt’s banking system since March on the back of the COVID-19 outbreak.