Egypt’s banking sector shows strong financial health – CBE
The Central Bank of Egypt (CBE) reported on Wednesday strong financial soundness indicators, underscoring the resilience of the Egyptian banking sector, which plays a crucial role in supporting the country’s economic stability. Key highlights include:
- Capital Adequacy ratio: The capital adequacy ratio improved to 19.1 per cent at the end of the third quarter of 2024, a 0.5 per cent increase from the regulatory minimum of 12.5 per cent.
- Asset Quality: The ratio of non-performing loans (NPLs)to total loans decreased to 2.4 per cent, with provisions’ coverage ratio for NPLs reaching 87.4 per cent.
- Liquidity Rates: High liquidity was maintained in both local and foreign currencies, recording 32.1 per cent in local currency and 77.7 per cent in foreign currencies, exceeding regulatory minimums of 20 per cent and 25 per cent, respectively.
- Loan-to-Deposit Ratio: The loan-to-deposit ratio stood at 61.3 per cent at the end of Q3 2024.
- Profitability: The return on equity reached 32.2 per cent at the end of the fiscal year 2023.
These strong financial indicators highlight the sector’s ability to support Egypt’s national economy. The Central Bank of Egypt continues to ensure that banks adhere to internationally recognised financial safety standards through ongoing monitoring.
Attribution: Amwal Al Ghad English
Subediting: M. S. Salama
