Banks in Egypt see net profits soar to $6 billion in 2023

Banks operating in Egypt demonstrated remarkable financial performance in 2023. The Central Bank of Egypt‘s (CBE) annual report revealed that banks’ net profit stood at EGP283.388 billion ($6.01 billion) in 2023 compared to EGP130.844 billion ($2.77 billion) in 2022. The report unveils a significant surge in net profits, net revenues and overall financial position, underscoring the resilience and stability of the banking sector amidst evolving market conditions.

Surge in performance

The CBE’s report highlights a substantial rise in banks’ net revenues, reaching EGP582.4 billion in December 2023, compared to EGP331.2 billion in December 2022. Meanwhile, net activity revenues recorded EGP686.161 billion compared to EGP407.592 billion in 2022. Total expenses increased to EGP402.773 billion from EGP276.748 billion in 2022. Besides, the total financial position of banks in the Egyptian market reached around EGP14.2 trillion in 2023.

Asset composition

On the asset side, cash balances in banks stood at EGP116.385 billion — cash balances in local banks reached EGP2.606 trillion, and in foreign banks EGP323.372 billion. Customer lending and debit balances, as well as investments in treasury bills and securities portfolios, further bolster the strength of banks’ asset portfolios.

In 2023, customer lending and debit balances in Egyptian banks recorded EGP5.462 trillion. Meanwhile, the combined value of the securities portfolio and investments in treasury bills reached EGP5.183 trillion. The CBE report also recorded value of other assets of Egyptian banks at EGP508.073 billion.

Read: Saudi Arabia’s banks experience boost in profits with 3.1 percent increase in net interest margin

Egyptian banks’ liabilities

When it comes to liabilities, the CBE report revealed that bank capital reached EGP410.877 billion and reserves reached EGP476.473 billion. Moreover, allocations balancing recorded EGP 346.922 billion.

In addition, interbank obligations locally were recorded at EGP781.917 billion. Towards foreign banks, Egyptian banks’ obligations reached EGP429.275 billion. Meanwhile, total deposits amounted to EGP10.137 trillion, and the sum of bonds and long-term loans reached EGP566.388 billion. Other liabilities, which the CBE report did not specify, reached almost EGP1.051 trillion.

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