CBE unveils key financial soundness indicators for banks in Egypt during Q1 2025
The Central Bank of Egypt (CBE) has published the latest financial soundness indicators for the banking sector during the first quarter (Q1) of 2025.
According to the report, the aggregate financial position of banks operating in Egypt, excluding the CBE itself, reached EGP 22.673trn in March 2025, compared to EGP 22.039trn in February—an increase of approximately EGP 634bn.
Asset Composition and Lending Activity
On the asset side, cash balances held at banks amounted to EGP 179.710bn. Interbank balances within Egypt totalled EGP 3.504trn, while balances held with foreign banks reached EGP 1.353trn.
Lending and discount balances to customers rose to approximately EGP 9.052trn. Meanwhile, the total securities portfolio, including banks' investments in treasury bills, stood at EGP 6.880trn. Other unspecified assets were valued at roughly EGP 1.702trn.
Capital, Liabilities, and Provisions
On the liabilities side, CBE data shows that total bank capital stood at EGP 597.738bn, with reserves amounting to EGP 989.298bn and provision balances at EGP 601.681bn.
Interbank obligations within Egypt were recorded at EGP 1.796trn, while foreign interbank liabilities stood at EGP 609.444bn. Total customer deposits reached EGP 14.320trn, and bond balances and long-term loans were reported at EGP 909.531bn. Other liabilities, not detailed by the CBE, totalled EGP 2.848trn.
Non-Performing Loans and Provision Coverage
The non-performing loan (NPL) ratio across the banking sector declined to 2.2% in March 2025, down from 2.3% in December 2024. Among the top 10 banks, the NPL ratio stood at 1.9%, and 1.6% at the top five banks.
Banks maintained provision coverage equal to 87.2% of total NPLs, unchanged from December. This coverage rose to 91% among the top 10 banks and 92.7% among the top five.
The CBE reported that total provisions formed to cover doubtful debts reached EGP 601.681bn, of which EGP 490.830bn was held by the top 10 banks and EGP 435.029bn by the top five. Additionally, banks formed reserves amounting to EGP 867.121bn, with EGP 710.220bn at the top 10 banks and EGP 625.149bn at the top five.
Private Sector Loan Share
The private sector's share of total customer loans declined to 42.3% in March 2025, down from 43.9% in December 2024. At the top 10 banks, the share stood at 36.3%, and 32.4% at the top five.
Total lending and discount balances increased to EGP 9.052trn from EGP 8.375trn in December—marking a rise of roughly EGP 677bn. The top 10 banks held EGP 7.143trn of these balances, and the top five held EGP 6.557trn.
Loan-to-Deposit and Liquidity Ratios
The sector-wide loan-to-deposit ratio rose to 63.6% in March, up from 62.5% in December. The ratio was 64.5% at the top 10 banks and 66.8% at the top five.
The local currency loan-to-deposit ratio increased to 54.4%, compared to 53.4% previously. At the top 10 banks, it stood at 51.4%, and 51.5% at the top five.
The foreign currency loan-to-deposit ratio also climbed to 90.7%, up from 88.3%. This ratio was 103% for the top 10 banks and 115.6% for the top five.
Customer Deposits and Liquidity
Customer deposits at Egyptian banks surged to EGP 14.32trn in March 2025, up from EGP 13.481trn in December—an increase of approximately EGP 839bn.
The top 10 banks held EGP 11.160trn in deposits, accounting for 77.932% of the total, while the top five banks held EGP 9.851trn, or 68.791%.
The deposits-to-assets ratio rose to 63.2% from 62.5%, with the ratio at 62.3% for the top 10 banks and 61.7% for the top five.
Average actual local currency liquidity across the sector reached 37.1% in March, up from 34.8% in December. Among the top 10 banks, it was 38.6%, and 36.8% at the top five.
Meanwhile, average actual foreign currency liquidity rose to 73.7%, from 71.4%. The figure was 73.7% for the top 10 banks and 71.8% for the top five.
Investments in Securities and Treasury Bills
Bank investments in securities and treasury bills in the local market grew to EGP 6.880trn in March 2025, up from EGP 6.659trn in December—a rise of EGP 221bn.
Top 10 banks accounted for EGP 5.583trn of these investments, while the top five held EGP 4.981trn.
The securities portfolio (excluding treasury bills) represented 20% of total bank assets, down from 21.6% in December. This ratio was 21.5% at the top 10 banks and 22.9% at the top five.
Capital Adequacy and Leverage
The capital-to-risk-weighted assets ratio fell slightly to 18.3% in March, compared to 18.5% in December. This stood at 18% for the top 10 banks and 17.5% for the top five.
Tier 1 capital as a percentage of risk-weighted assets declined to 15.1%, from 15.2%, with the top 10 at 14.5% and the top five at 14%.
The common equity Tier 1 ratio reached 12.9% in March, up from 12.7% in December. This ratio stood at 12.1% at the top 10 banks and 11.3% at the top five.
The sector-wide leverage ratio increased to 7.6%, up from 7.5%, with the top 10 banks at 7.3% and the top five at 7%. The CBE highlighted that this ratio remains well above the 3% minimum requirement.
Foreign Currency Exposure
Net open positions in foreign currencies rose to 3.9% of the capital base in March, compared to 2.2% in December. The figure reached 4.6% for the top 10 banks and 5.2% for the top five. The CBE reiterated that foreign currency exposures must not exceed 20% of capital.
Banking Sector Profitability
Banks operating in Egypt reported net profits of EGP 152.756bn in Q1 2025. Net interest income stood at EGP 253.454bn, while net operating revenues reached EGP 331.332bn, and total expenses amounted to EGP 178.576bn.
The top 10 banks generated EGP 120.741bn in profits, accounting for 79.041% of total sector profits, while the top five banks earned EGP 103.397bn, or 67.687%.
At the top 10 banks, net interest income reached EGP 196.152bn, operating revenues EGP 262.299bn, and expenses EGP 141.558bn. Among the top five banks, net interest income totalled EGP 165.687bn, operating revenues EGP 227.026bn, and expenses EGP 123.629bn.
Profitability Ratios
Return on average equity (ROAE) across the sector rose to 39% in March, up from 32.2% in December. Return on average assets (ROAA) increased to 2.6%, from 2%, while the net interest margin expanded to 5.8%, compared to 5.2%.
Among the top 10 banks, ROAE stood at 39.1%, ROAA at 2.5%, and net interest margin at 5.7%. At the top five banks, ROAE was 37.6%, ROAA 2.3%, and net interest margin 5.4%.
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