The Financial Regulatory Authority (FRA) revealed the volume of non-banking financing provided by regulated institutions to various sectors as of the end of July 2024.
Micro, Small, and Medium Enterprises (MSMEs)
According to a recent FRA report, the loan balances granted to MSMEs increased to LE 66.8 billion by the end of July 2024, compared to LE 46.143 billion by the end of July 2023, marking an increase of LE 20.657 billion, or 44.76 percent.
The report indicated that microenterprise financing reached LE 57.29 billion by the end of July 2024, up from LE 42.6 billion in July 2023, an increase of about LE 14.69 billion. However, the number of beneficiaries of this financing declined to 3.796 million, compared to 3.841 million.
Meanwhile, loan balances for small and medium enterprises (SMEs) amounted to LE 9.5 billion by the end of July 2024, compared to LE 3.5 billion in July 2023, with around 8,400 beneficiaries compared to 3,900 beneficiaries in the previous year.
Consumer Finance
The FRA also revealed a rise in consumer finance provided by companies, reaching LE 29.339 billion by the end of July 2024, compared to LE 24.403 billion by the end of July 2023, an increase of LE 4.936 billion, representing a growth rate of 20.2 percent.
The report showed that the number of customers benefiting from these finances rose to 2.127 million by the end of July 2024, up from 1.986 million in July 2023.
According to the FRA, car and vehicle purchases accounted for 28.88 percent of consumer finance by the end of July 2024, followed by electrical and electronic appliances at 28.70 percent, home appliances at 10.66 percent, purchases with a single invoice from various retail chains at 6.64 percent, and clothing, shoes, bags, watches, jewelry, and eyewear at 5.35 percent.
Mortgage Finance
In the same context, the FRA reported that mortgage finance offered by companies active in this sector reached LE 12.88 billion by the end of July 2024, compared to LE 4.8 billion in July 2023, marking an increase of LE 8.08 billion, or 168.1 percent.
The number of mortgage finance contracts rose to 5,854 by the end of July 2024, compared to 2,559 contracts in July 2023.
The report detailed that the financed contracts included 249 regular client contracts worth LE 2.7 billion, 378 fund beneficiary contracts totaling LE 100 million, and 5,227 purchased portfolio contracts amounting to LE 10.036 billion.
Regarding mortgage financing by income brackets, clients with a monthly income exceeding LE 3,500 accounted for LE 12.8 billion, representing around 5,710 contracts.
Leasing Activity
The FRA also highlighted an increase in the value of financial leasing contracts, reaching LE 64.28 billion by the end of July 2024, compared to LE 57.38 billion in July 2023, reflecting a rise of LE 6.9 billion or 12 percent.
The total number of financial leasing contracts reached 968 by the end of July 2024, compared to 1,110 contracts in July 2023.
According to the FRA, the real estate and land sector accounted for 78.74 percent of the total financing, followed by the transportation sector at 6.03 percent, machinery and equipment at 4.85 percent, heavy equipment at 3.01 percent, passenger vehicles at 2.49 percent, and production lines at 2.35 percent.
Factoring Activity
In a related context, the FRA reported that factoring activity in the Egyptian market reached approximately LE 24.102 billion by the end of July 2024, compared to LE 16.79 billion in July 2023, an increase of LE 7.312 billion, or 43.5 percent.
The number of clients benefiting from this activity grew by 8.6 percent, reaching 611 by the end of July 2024, compared to 564 in July 2023.
The value of factored papers with recourse rights amounted to LE 21.43 billion, compared to LE 15.1 billion, while the value of non-recourse factored papers reached LE 12.7 billion, up from LE 9.1 billion.
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