ABE's Loan Portfolio Grows By 19% To EGP 77.8Bn In November 2023

(MENAFN- Daily News Egypt) Alaa Farouk, Chairperson of the Agricultural bank of Egypt (ABE), announced a significant growth in the bank's loan portfolio, reaching EGP 77 in November 2023, compared to about EGP 63 in December 2022, a 19% increase. Farouk attributed this achievement to the completion of a major phase of the comprehensive plan to develop the bank, enhancing its banking and financing services to meet the various needs of its clients. The bank has also adopted credit policies to link lending with production, enabling it to play a crucial developmental role in financing agricultural projects and related industrial and service activities.

Farouk emphasized the bank's commitment to following the directives of President Abdel Fattah Al-Sisi, stressing the need to maximize returns from the agricultural sector. The bank aims to remove obstacles and promote investment in agriculture and related activities to support national economic development, create direct and indirect job opportunities, and improve the income levels of citizens, especially in rural areas.

He reported an increase in deposit size from EGP 141 in December 2022 to around EGP 173 in November 2023, a growth of EGP 32 or 23%. This reflects the customers' trust in the bank's ability to manage their savings and facilitate transactions according to the latest banking systems.

Farouk stated that about 80% of the total credit portfolio is directed toward financing the agricultural sector and associated industries. The bank, as one of the leading specialized banks in financing agriculture and related activities, has increased its funding for small-scale farmers to improve their productivity, offering them agricultural crop loans at an interest rate of only 5%.

Regarding agricultural crop loans, Farouk highlighted that the portfolio's size benefiting hundreds of thousands of small farmers reached about EGP 21, compared to around EGP 10 in December 2022, marking a growth rate of about 106%. This change in lending categories aims to help farmers cope with the significant rise in production costs and requirements.

Farouk also pointed out the bank's role in supporting large companies operating in the agricultural sector and related activities. The bank's financing for large companies increased by 49% in November to around EGP 15. The bank is also actively participating in the development of animal wealth by providing necessary funding for the national project for fattening calves, injecting about EGP 16bn into the project.

In conclusion, Farouk stressed the Egyptian Agricultural Bank's commitment to rural development, implementing the“Decent Life” presidential initiative to enhance the development of Egyptian rural villages.

The bank provides accessible financing opportunities with favorable terms for micro-projects, aiming to empower women and youth, generate employment opportunities, and improve living standards. The bank's community role extends to supporting the most vulnerable families across all governorates.

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