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Banking Industry Egypt

The Banking Industry in Egypt 2021

Stephen Timm | Egypt | 08 December 2021

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Report Coverage

This report on the Egyptian banking industry covers deposit-taking institutions, as well as central banking. It includes information on the country and legislation and regulations relevant to the banking industry, and details of the major players and their performance and development, financial inclusion, digital banking and fintech, microfinance, Islamic banking and the competitive environment. There are profiles of 16 companies including state-owned banks such as the National Bank of Egypt, Banque Misr and Banque du Caire, major private banks including Commercial International Bank and QNB Alahli and international banks in Egypt such as HSBC and Credit Agricole Egypt.


This report on the Egyptian banking industry covers deposit-taking institutions, as well as central banking. Egypt’s banks have been able to weather the pandemic fairly well, having entered the crisis relatively well-capitalised, while the number of non-performing loans remains low. The pandemic has also helped fuel significant growth in digital banking in a country where only about a third of the population is banked. Experts say a new banking act, which was passed in 2020 and which increased capital requirements for banks operating in Egypt, could promote mergers and acquisitions in the sector, while helping to boost financial inclusion. While bank profits have been affected by the slowdown in private lending, experts are hopeful that lending will pick up again, driven by the current record low interest rates. State-owned bank Banque du Caire is set to sell a minority stake by the end of 2021.


• Asset quality is largely sound with low average non-performing loans ratio and high coverage.
• Digital banking continues to improve financial inclusion.
• Foreign investment in local banks.
• The profitability of banks is intact, supported by high-yield, low-risk government treasuries.
• Well capitalised banking sector, with a minimum capital adequacy ratio regulatory requirement of 12.5%.


• Egypt banks’ gross loans-to-deposits ratio remains low, hovering around 50%, while in the Gulf Co-operation Council it exceeds 75%.
• Leasing and mortgage financing is still a young industry.
• Some banks with low capital bases may struggle to comply with the new banking law’s minimum capital requirement of EGP5bn.
• The banking industry is heavily dominated by state banks which control about 50% of the market by deposits and lending.


• Africa (mainly East Africa) and Saudi Arabia are attractive markets for the expansion of Egyptian banks.
• Banks have the ability to partner with fintech companies to reach more customers.
• Banque du Caire’s planned sale of a minority stake in the bank for US$500m.
• New banking regulations could drive mergers and acquisition in the sector.
• The CBE’s lending rule that 25% of credit must go to SMEs.
• The current low interests could help drive corporate lending.
• The implementation of recent reforms is expected to drive economic growth.
• The pandemic is driving growth in electronic banking, which can drive financial inclusion and help banks to reach more customers.


• Future COVID-19 waves could affect Egypt banks’ assets quality.
• Non-performing loans are expected to grow in 2021.
• The current surge in global commodity prices could put upward pressures on companies operating in Egypt, which could push the CBE to adopt a stricter monetary policy, leading to higher interest rates.


Experts forecast a positive outlook for Egypt’s banking industry, but say growth is dependent on private sector borrowing improving. S&P in July 2021 said Egypt’s lower interest rate environment will support loan growth. It expects the level of non-performing loans to rise, but believes that the banking sector will be able to handle such an increase. Sherif Khalil, head of investor relations at CIB, says the hope is that companies will increase borrowing, as corporate Egypt is under-leveraged and with low interest rates, the cost of borrowing is currently low. Prime Securities senior equity analyst Shihab Mohammed says the prolonged surge in global commodity prices remains the biggest threat to banks as this could put upward pressures on companies operating in Egypt to de-leverage which may lead them to postpone any future capex-driven borrowing. It could also push the CBE to adopt a stricter monetary policy, leading to higher corridor rates. Thirdly, he says, if severe, new COVID-19 waves could affect the asset quality of Egypt banks. Experts say the biggest opportunity in banking in Egypt is in financial inclusion efforts, with the pandemic having driven growth in electronic banking services.

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The Banking Industry in Egypt
The Banking Industry in Egypt 2021

Full Report

R 6 500.00(ZAR) estimated $357.78 (USD)*

Industry Landscape

R 4 550.00(ZAR) estimated $ 250.45 (USD)*

Table of Contents

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3.1. Industry Value Chain 4
3.2. Geographic Position 5
3.3. Size of the Industry 5
3.4. Key Success Factors and Pain Points 11
4. LOCAL 12
4.1. Key Trends 12
4.2. Notable Players 16
4.3. Corporate Actions 17
4.4. Regulations 18
4.5. Enterprise Development and Social Economic Development 20
5. AFRICA 21
7.1. COVID -19 26
7.2. Economic Environment 28
7.3. Labour 29
7.4. Environmental Issues 30
7.5. Technology, Research and Development (R&D) and Innovation 31
7.6. Input Costs 33
7.7. Financial Inclusion 33
7.8. Cybercrime and Fraud 34
8.1. Competition 35
8.2. Ownership Structure of the Industry 36
8.3. Barriers to Entry 37
10. OUTLOOK 38
12.1. Publications 39
12.2. Websites 41
Appendix 1 42
Summary of Notable Players 42
Abu Dhabi Islamic Bank - Egypt SAE 44
Al Baraka Bank Egypt S.A.E. 48
Arab African International Bank 53
Arab Banking Corporation - Egypt (S.A.E) 56
Bank of Alexandria S.A.E. 59
Banque Du Caire S.A.E. 61
Banque Misr (S.A.E.) 63
Commercial International Bank (Egypt) SAE 66
Credit Agricole Egypt S.A.E. 71
Egyptian Gulf Bank S.A.E 77
Export Development Bank of Egypt S.A.E 82
Faisal Islamic Bank of Egypt S.A.E. 86
HSBC Bank Egypt S.A.E 90
National Bank of Egypt S.A.E. 94
QNB Alahli SAE 97
Suez Canal Bank S.A.E 100