The Central Bank of Egypt (CBE) announced that the total financial position of banks operating in the local market—excluding the CBE—reached EGP 20.799trn in December 2024.
In a recent report, the CBE detailed that, on the asset side, cash balances held by banks amounted to approximately EGP 182.122bn, while interbank balances within Egypt stood at about EGP 3.757trn. Balances with foreign banks were valued at roughly EGP 992.715bn.
Lending and Discount Balances
The report added that lending and discount balances extended to customers reached approximately EGP 8.375trn. Meanwhile, the securities portfolio, including bank investments in treasury bills, totaled EGP 6.659trn. Other unspecified assets amounted to around EGP 832.772bn.
On the liabilities side, the CBE reported that bank capital stood at about EGP 575.204bn, reserves totaled EGP 803.228bn, and provisions reached EGP 558.563bn. Obligations between domestic banks amounted to approximately EGP 1.718trn, while commitments to foreign banks were around EGP 643.565bn. Total deposits reached an estimated EGP 13.481trn. Long-term bonds and loans stood at EGP 970.822bn, and other liabilities, not itemized in the report, amounted to EGP 2.047trn.
Non-Performing Loans
According to the CBE, the ratio of non-performing loans (NPLs) across banks declined to 2.3% in December 2024, compared to 2.4% in September. NPLs accounted for 1.9% of total loans at the 10 largest banks, and 1.7% at the top five.
Banks had provisions covering 87.2% of total NPLs as of December, slightly down from 87.4% in September. This coverage ratio reached 91.5% at the top 10 banks and 90.9% at the top five. Provisions to cover doubtful debts amounted to roughly EGP 558.563bn, with the top 10 banks accounting for EGP 440.640bn and the top five holding EGP 397.197bn. Additionally, banks formed reserves worth EGP 867.121bn, of which EGP 710.220bn were held by the top 10 banks and EGP 625.149bn by the top five.
Private Sector Lending
The CBE reported a decline in the private sector’s share of total bank loans to 42.9% in December 2024, down from 43.8% in September. At the top 10 banks, the private sector held 36.4% of loans, while this figure was 32.8% at the top five banks.
Lending and discount balances across all banks rose to EGP 8.375trn in December, up from EGP 7.799trn in September 2024—an increase of approximately EGP 576bn. The top 10 banks accounted for EGP 6.638trn of these balances, while the top five recorded EGP 6.128trn.
Loan-to-Deposit Ratio
The loan-to-deposit ratio increased to 62.5% in December 2024, compared to 61.3% in September. Among the top 10 banks, this ratio was 64%, and 66.3% at the top five. The local currency loan-to-deposit ratio rose to 53.4%, up from 53%, and reached 51.8% at both the top 10 and top five banks.
For foreign currencies, the loan-to-deposit ratio also increased, reaching 88.3% in December versus 85.9% in September. This ratio hit 98.9% at the top 10 banks and 111.6% at the top five.
Customer Deposits
Total customer deposits climbed to EGP 13.481trn in December 2024, up from EGP 12.776trn in September—an increase of around EGP 705bn. The top 10 banks held EGP 10.427trn, representing 77.345% of total deposits, while the top five banks held EGP 9.261trn, or 68.7%.
The deposit-to-assets ratio rose to 64.9% at year-end, compared to 60.4% in September. This ratio reached 63.6% at the top 10 banks and 62.9% at the top five.
In terms of liquidity, the average actual liquidity ratio in local currency increased to 34.8% in December, from 32.1% in September. It reached 35.5% at the top 10 banks and 34.7% at the top five. Conversely, the foreign currency liquidity ratio dropped to 71.4% in December, down from 77.7% in September. At the top 10 banks, it was 71.2%, and 69.1% at the top five.
Securities and Treasury Bills
Investments by banks in securities and treasury bills increased to EGP 6.659trn in December 2024, up from EGP 5.924trn in September—a rise of about EGP 735bn. The top 10 banks invested EGP 5.363trn in these instruments, while the top five recorded EGP 4.847trn.
The share of the securities portfolio—excluding treasury bills—rose to 21.6% of total bank assets in December, compared to 19.4% in September. This ratio was 22.9% at the top 10 banks and 24% at the top five.
Capital Base
The capital base-to-risk-weighted assets ratio declined to 18.5% in December 2024, from 19.1% in September. It stood at 18.6% for the top 10 banks and 18% for the top five.
The Tier 1 capital-to-risk-weighted assets ratio also declined to 15.2%, compared to 15.8% in September. This ratio was 14.9% at the top 10 banks and 14.2% at the top five. The core capital ratio dropped to 12.1%, down from 13.1%, with the top 10 banks at 12.2% and the top five at 11.4%.
The leverage ratio in banks decreased to 7.5% in December, from 7.7% in September. Among the top 10 banks, it was 7.1%, and 6.8% at the top five. The CBE reaffirmed that this ratio should not fall below 3%.
Net Open Positions in Foreign Currencies
The net open positions in foreign currencies declined to 2.2% of the total capital base in December 2024, compared to 3% in September. The ratio stood at 2.5% for the top 10 banks and 2.7% for the top five. The CBE emphasized that the net surplus or deficit in foreign currency positions must not exceed 20% of the capital base.
Net Profits
Banks operating in the Egyptian market recorded net profits of approximately EGP 534.852bn during 2024. Net interest income stood at EGP 915.036bn, while net operating income reached EGP 1.116trn. Total expenses amounted to EGP 581.557bn.
The top 10 banks contributed EGP 420.485bn, or 78.617% of total sector profits, while the top five banks generated EGP 338.796bn, representing 63.343%.
Net interest income at the top 10 banks was EGP 710.829bn, with net operating income at EGP 870.911bn, and expenses reaching EGP 450.426bn. For the top five banks, net interest income was EGP 590.337bn, net operating income stood at EGP 729.2bn, and total expenses amounted to EGP 390.404bn.
Return on Equity
The return on average equity across the banking sector remained steady at 32.2% in December 2024, consistent with figures from September, June, and March. Return on average assets also held at 2%, while the net interest margin stayed at 5.2%.
For the top 10 banks, return on equity was 33.6%, with a return on assets of 2%, and a net interest margin of 5%. The top five banks reported a return on equity of 33.1%, return on assets of 1.8%, and a net interest margin of 4.8%.
