The Central Bank of Egypt published financial soundness indicators showing a resilient banking sector, with stronger capital buffers, improved asset quality and high liquidity relative to regulatory thresholds. The capital adequacy ratio rose to 19.6% at end-Q4 2025, up 0.4 percentage points and above the 12.5% minimum. The ratio of non-performing loans to total loans fell to 1.9%, with provisions covering 90.2% of non-performing exposures. Liquidity ratios reached 40.3% in local currency and 79.5% in foreign currency versus regulatory minima of 20% and 25%, while the loans-to-deposits ratio stood at 66.4% at end-Q4 2025; return on equity was 39.0% at end-FY 2024. The central bank linked the sector’s resilience to its supervisory role and continuous monitoring of banks’ performance and compliance with internationally recognised prudential standards.
Central Bank of Egypt 2026-03-26
Central Bank of Egypt publishes banking soundness indicators with capital adequacy at 19.6% and NPL ratio at 1.9%
The Central Bank of Egypt reported a resilient banking sector with robust capital buffers, improved asset quality, and high liquidity. Key metrics include a capital adequacy ratio of 19.6%, a non-performing loans ratio of 1.9%, and liquidity ratios of 40.3% in local currency and 79.5% in foreign currency. The bank attributes this resilience to its supervisory role and adherence to international prudential standards.