The Central Bank of Egypt published Financial Soundness Indicators indicating that the banking sector remained well-capitalised and liquid through the end of Q3 2024, alongside low non-performing loans and strong profitability. The capital adequacy ratio reached 19.1% at end-Q3 2024, up 0.5 percentage points and above the 12.5% minimum requirement. Asset quality improved with non-performing loans declining to 2.4% of total loans and provisions covering 87.4% of NPLs. Liquidity ratios were 32.1% in local currency and 77.7% in foreign currency, compared with minimum requirements of 20% and 25%, respectively, while the loan-to-deposit ratio stood at 61.3% at end-Q3 2024. Profitability remained high with return on equity at 32.2% by end-FY2023, with the release also noting the Central Bank of Egypt’s ongoing monitoring of banks’ performance and adherence to international best practices.
Central Bank of Egypt 2025-01-08
Central Bank of Egypt reports banking sector capital adequacy of 19.1% and NPL ratio of 2.4% in Q3 2024
The Central Bank of Egypt reported that the banking sector remained well-capitalised and liquid through Q3 2024, with a capital adequacy ratio of 19.1%, exceeding the 12.5% minimum requirement. Non-performing loans decreased to 2.4% of total loans, with provisions covering 87.4% of NPLs. Liquidity ratios were strong, and profitability was high, with a return on equity of 32.2% by end-FY2023.