Egypt’s banking sector shows resilience with strong capital, low NPLs – CBE

Egypt’s banking sector remains robust and well-positioned to support economic growth, according to the latest Financial Soundness Indicators released by the Central Bank of Egypt (CBE) on Thursday.

The data highlights the sector’s resilience as a pillar of economic, financial, and monetary stability, with banks continuing to provide financing across multiple sectors, supporting gross domestic product growth, investment, and job creation.

Key indicators point to a strong capital base, with the capital adequacy ratio reaching 19.6 per cent by the end of the fourth quarter of 2025, well above the minimum regulatory requirement of 12.5 per cent. Asset quality also improved, with the ratio of non-performing loans (NPLs) declining to 1.9 per cent of total loans, and provisions coverage for NPLs standing at 90.2 per cent.

Liquidity remained high and stable in both local and foreign currencies, at 40.3 per cent and 79.5 per cent respectively, compared with regulatory minimums of 20 per cent and 25 per cent. The loan-to-deposit ratio stood at 66.4 per cent, reflecting balanced credit growth relative to deposits.

Profitability remained strong, with return on equity reaching 39 per cent by the end of FY2024, underscoring banks’ ability to generate high margins while supporting the national economy.

The CBE said the indicators reflect the effectiveness of its regulatory framework, which monitors banks’ performance and ensures adherence to international best practices to maintain financial stability.

Attribution: Amwal Al Ghad English