عربــى

EGX 30 9,272.88 -1.93%



Banks saw dipping profitability indicators in 1st quarter: CBE

Banks saw dipping profitability indicators in 1st quarter: CBE

Cairo: Indicators tracking profitability of Egyptian banks in the first quarter of this year retreated, as return on assets has plummeted by 1.5% down from 2% a year earlier, return on equity by 21.5% from 30.9%, and profit margins by 3.9% from 4.6%, according to official estimates released by the Central Bank of Egypt.

Capital adequacy ratios jumped to 15.7% in the first quarter of 2018 up from 14.7% a year earlier.

"Declining profitability indicators are attributed to considerable hikes in deposits portfolios at Egypt-based banks during the previous period especially since the local currency flotation in addition to the dipping volume of lending owing to harsh economic conditions squeezing the economy," said chairman of the United Bank Ashraf El-Kady.

Also the Central Bank of Egypt's decision cutting the interest rates by 2% during the first quarter of this year failed to bolster bank profits owing to rising volume of costlier deposits.

Several banks, he continued, opted to retain their profits in order to boost their capital during the previous months as well as equities, paving the way for boosting capital adequacy ratios.

Source: AlMal

 

#Related keywords

All rights reserved to Arab Finance 2015 ©

Back to top