Banks in Egypt achieved net profits of EGP426.911 billion ($8.38 billion) in the first nine months of 2024. According to the latest report from the Central Bank of Egypt, they also achieved a total net return of EGP669.365 billion and a net operating income of EGP828.556 billion. Banks in Egypt saw their total expenses reach EGP401.645 billion during the same period.
The return on average equity for banks in Egypt remained stable at 32.2 percent in September 2024. The return on average assets also remained at 2 percent while the net return margin reached 5.2 percent.
The report also revealed that the top 10 banks in Egypt accounted for 79.73 percent of the sector’s total profits at EGP340.411 billion. Meanwhile, the top five banks alone contributed 65.06 percent of the sector’s profits, amounting to EGP277.749 billion.
National Bank of Egypt takes lead
The top-performing bank was the National Bank of Egypt (NBE). Following closely came Banque Misr and the Commercial International Bank (CIB).
By September 2024, the top 10 banks in Egypt achieved a net return of EGP521.694 billion, a net activity revenue of EGP650.077 billion, and EGP309.666 billion in total expenses.
In the first half of 2024, banks operating in the Egyptian market achieved net profits of approximately EGP289.409 billion. The top 10 banks collectively earned EGP329.501 billion in net interest income and EGP411.812 billion in net operating income. Meanwhile, their total expenses amounted to EGP181.132 billion during the first half of 2024.
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Operating conditions improve
In November, Fitch Ratings upgraded all four Egyptian banks in its coverage following the upgrade of Egypt’s sovereign rating. The upgrades reflected the strong correlation of the banks’ creditworthiness with that of the Egyptian sovereign, given the banks’ significant sovereign exposure.
The peer review led to the long-term issuer default ratings of the National Bank of Egypt, Banque Misr, Commercial International Bank and Banque Du Caire being upgraded to ‘B’/Stable from ‘B-’/Positive. This review followed the upgrade of Egypt’s sovereign rating to ‘B’/Stable from ‘B-’/Positive.
The sector reported a sharp turnaround in its net foreign assets position, with its deficit declining to $130 million in September 2024 from $17.6 billion in January. Strong capital inflows stemming from the Ras Al Hekma deal, remittances, and almost $17 billion in non-resident inflows returning into the treasury-bills market supported banks’ external balance sheets.
The upgrade also reflected better operating conditions for banks in Egypt, with foreign-currency liquidity conditions having improved significantly compared with 2023.
Fitch expects real GDP growth to pick up to 4.2 percent in 2025 and 5.4 percent in 2026 on strengthening confidence, real income, remittances and foreign direct investments. The ratings agency also expects inflation to decline to 12.5 percent by the end of June 2025 from 26.5 percent in October 2024.
