The Central Bank of Egypt (CBE) has reported a significant rise in the total financial position of banks operating in the local market—excluding the CBE itself—reaching EGP 19.336trn in the first half (H1) of 2024, compared to EGP 17.896trn in the first quarter (Q1), marking an increase of EGP 1.44trn.
According to the CBE’s latest report, on the asset side, banks’ cash balances amounted to EGP 189.15bn, while interbank balances within Egypt stood at EGP 3.399trn. Balances with foreign banks totaled EGP 1.361trn. Additionally, loans and discounts extended to customers reached EGP 7.209trn and investments in securities and treasury bills were valued at EGP 5.228trn. Other unspecified assets amounted to EGP 1.949trn.
Bank Liabilities
Regarding liabilities, the CBE revealed that bank capital totalled EGP 451.810bn, reserves stood at EGP 807.676bn, and provisions were recorded at EGP 482.520bn. Interbank liabilities within Egypt were EGP 1.5trn, while liabilities to foreign banks amounted to EGP 561.497bn. Total customer deposits reached EGP 11.991trn, while long-term bonds and loans stood at EGP 879.817bn. Other unspecified liabilities amounted to EGP 2.660trn.
Non-Performing Loans
The Central Bank reported that the ratio of non-performing loans (NPLs) in the banking sector remained steady at 2.6% in June 2024, the same as in March 2024. For the largest 10 banks, this figure was slightly lower at 2.2%, while the largest 5 banks recorded an NPL ratio of 2%.
The CBE noted that banks had set aside provisions covering 86.2% of total NPLs in June, down from 88.3% in March. The top 10 banks had a provision coverage ratio of 90%, while the largest 5 banks held provisions covering 89.7% of their NPLs. The total provisions for doubtful debt across all banks amounted to EGP 482.520bn, with the top 10 banks accounting for EGP 373.688bn, and the top 5 banks holding EGP 330.518bn.
Banks had also built reserves worth EGP 807bn, with the top 10 banks contributing EGP 650.785bn, and the top 5 banks holding EGP 565.339bn.
Private Sector Loans
The private sector’s share of total bank loans dropped to 45.3% in June 2024, down from 46.2% in March 2024. The largest 10 banks reported that the private sector accounted for 39.3% of their total loans, while the top five reported 35.8%.
The total balance of loans and discounts across all banks reached EGP 7.209trn in June 2024, up from EGP 6.817trn in March 2024—an increase of EGP 392bn. In the largest 10 banks, loans and discounts amounted to EGP 5.668trn, while the largest five banks reported EGP 5.204trn.
Loan-to-Deposit Ratio
The loan-to-deposit ratio rose to 60.3% in June 2024, up from 59.9% in March 2024. The ratio was 60.9% for the top 10 banks and 63.3% for the top 5 banks.
Loans in local currency made up 51.6% of deposits, up from 51.3%. For the top 10 banks, the figure was 49.9%, while the top 5 banks recorded 50.3%. The foreign currency loan-to-deposit ratio also increased to 85.8%, compared to 84.4%, with the largest 10 banks reporting 93.7%, and the top 5 banks reaching 105.9%.
Total Deposits
The CBE reported that total bank deposits surged to EGP 11.991trn in June 2024, up from EGP 11.425trn in March 2024—an increase of EGP 566bn. The top 10 banks accounted for EGP 9.328trn of these deposits, making up 77.7% of the total, while the top 5 banks held EGP 8.220trn or 68.551% of the total.
The deposit-to-asset ratio across all banks stood at 62.1% in June 2024, down from 63.9% in March. For the largest 10 banks, this ratio was 61.5%, while for the top 5 banks, it was 61%.
Liquidity Ratios
The average liquidity ratio in local currency fell to 33.1% in June 2024, down from 37.9% in March 2024. The ratio for the top 10 banks was 34.4%, while the top five reported 34.3%. Meanwhile, the average liquidity ratio in foreign currencies rose to 83.6% in June, up from 79.3% in March, with the largest 10 banks reporting 86.5% and the top five recording 86.3%.
Investments in Securities and Treasury Bills
The CBE revealed a decrease in banks’ investments in securities and treasury bills, which fell to EGP 5.228trn in June 2024, down from EGP 5.490trn in March 2024—a decline of EGP 262bn. The top 10 banks held EGP 4.215trn in such investments, while the top five held EGP 3.822trn.
The CBE also noted that the share of securities—excluding treasury bills—as a percentage of total bank assets decreased to 18.8% in June 2024, down from 20.4% in March. The ratio was 20.3% for the top 10 banks and 21.7% for the top 5 banks.
Capital Adequacy
The CBE reported an increase in the capital adequacy ratio, which reached 18.6% of risk-weighted assets in June 2024, up from 18.1% in March. For the largest 10 banks, this ratio was 19%, while the top 5 banks recorded 18.5%.
The Tier 1 capital ratio also increased to 15.2% in June, up from 14.6% in March. The ratio was 15% for the top 10 banks and 14.5% for the top 5 banks. The core capital-to-risk-weighted assets ratio reached 12.3% in June, up from 11.5% in March, with the top 10 banks reporting 11.9% and the top 5 banks 11%.
The leverage ratio in banks rose to 7.5% in June 2024, up from 7.3% in March. The ratio stood at 7.1% for the top 10 banks and 6.9% for the top 5 banks. The CBE stipulated that the minimum required leverage ratio should not fall below 3%.
Net Foreign Exchange Positions
The CBE also revealed a decline in net open foreign exchange positions, which fell to 3.5% of banks’ total capital in June 2024, down from 5.7% in March 2024. The top 10 banks recorded a net position of 4.3%, while the top five posted 4.8%.
The CBE emphasized that total foreign exchange surpluses or deficits must not exceed 20% of the bank’s capital base.
