FRA highlights that in Q4 of 2023, there was a notable increase in various sectors, with leasing contracts, factoring, consumer finance, MSMEs, and mortgage financing experiencing significant growth.
The Financial Regulatory Authority (FRA) has released its latest quarterly report, providing insights into the performance of Egypt's non-banking financial services (NBFS). In the fourth quarter (Q4) of 2023, there was a notable increase in various sectors, with leasing contracts, factoring, consumer finance, MSMEs, and mortgage financing experiencing significant growth.
Leasing contracts saw a substantial rise, reaching nearly EGP 39 billion in value, marking a 68% year-on-year increase. However, the number of contracts signed decreased by approximately 19% compared to the same period last year, totaling 575.
Factoring receivables also demonstrated growth, reaching almost EGP 12.5 billion, a 20.5% increase year-on-year.
Consumer finance companies experienced a significant uptick, lending out approximately EGP 14.2 billion during the quarter, a growth of just over 63% year-on-year. This amount was distributed to 827,000 clients, representing an 8% increase from the previous year.
Notably, 39% of the funds were allocated to vehicle purchases, while nearly 27% went towards the acquisition of appliances and electronics.
MSMEs witnessed a substantial boost in funding, with financing jumping almost 42% year-on-year to EGP 57.1 billion. Micro-enterprises accounted for the majority of this funding, totaling around EGP 50.6 billion.
Despite the increase in funding, the number of enterprises receiving financing decreased by 3.4% year-on-year, totaling 3.8 million.
The value of mortgage loans surged by nearly 89% year-on-year, reaching almost EGP 3.7 billion. The number of beneficiaries also increased by 29% year-on-year, totaling 1,430 individuals.
