The amount of non-performing loans in banks working in the Egyptian market by the end of September 2016 reached 5.9% of the total loans portfolio, representing no change compared to June 2016, according to the Central Bank of Egypt (CBE).
In a recent report issued by the CBE, it was mentioned that banks working in the local market have created allocations by 99% of total non-performing loans, noting that these numbers were true until the end of the fiscal year on 30 June for the public sector, and 31 December for other banks.
According to the CBE, the private sector has obtained 70% of total loans provided by banks to their clients until September 2016, compared to 70.6% by the end of June 2016.
“The yield of average assets in banks working in the Egyptian market was stable at 1.5% in September 2016 without a change compared to June and March,” the CBE said. “The yield of average property rights was stable at 24.4%, whereas net margin yields stood at 4%.”
The report added that the average actual liquidity in the local currency in banks increased in September 2016 to 56.7% compared to 55.2% in June that year. Average actual liquidity in foreign currencies declined to 59.9% in September, compared to 60.5% in June.
The report added that the rate of deposit loans in banks working in the Egyptian market declined to 44.2% in September 2016, compared to 44.5% in June. In local currency, deposit loans declined to 38.7% in September, compared to 39.5% in June. On the other hand, deposit loans in foreign currencies have increased to 66.4% in September, compared to 64.1% in June.
Asset deposits in banks in September 2016 have declined to 71.9% compared to 74.7% in June. The securities portfolio recorded 21.5% of total bank assets in September, compared to 22% in June, according to the report.
With regards to capital adequacy, the CBE revealed that the capital base to risk weighted assets increased in September 2016 to 14.1% compared to 13.8% in June, while the first portion of banks’ capital to risk weighted assets declined to 11.7% in September compared to 12% in June.
The ratio of continued capital in banks to risk weighted assets reached 9.2% in September 2016, compared to 11.7% in June. The leverage ratio in banks increased to 5.3% in September compared to 5.1% in June.
The CBE said that the ratio was a trial ratio starting from September 2015 and will continue to be so throughout 2017. Starting in 2018, the ratio will be obligatory with a minimum of 3%.