Egypt: CBE reports key financial soundness indicators for banks in Q3 2023

Egypt: CBE reports key financial soundness indicators for banks in Q3 2023

The Central Bank of Egypt (CBE) reported the key financial soundness indicators for banks in the Egyptian market in the third quarter (Q3) of 2023.

A recent CBE report showed that the percentage of non-performing loans in banks remained at 3.3% of their total loan portfolio in Q3 2023, unchanged from Q2 2023.

The percentage of non-performing loans was 2.6% of the total loans at the 10 largest banks in the Egyptian market, and 2.3% at the five largest banks.

Provisions for non-performing loans

CBE stated that banks set aside 88.6% of their total non-performing loans as provisions in September 2023, down from 93.391.6% in June 2023. The percentage of these provisions was 94.69% in the 10 largest banks and 100% in the five largest banks.

CBE added that the total provisions for non-performing loans amounted to about EGP 324.725bn in Q3 2023. The share of the 10 largest banks was EGP 246.493bn, while the share of the five largest banks was EGP 217.294bn.

The banks also accumulated reserves worth EGP 505.325bn, of which the share of the top 10 was EGP 397.410bn, and the share of the five largest banks was EGP 346.467bn.

Loan-to-deposit ratio

CBE indicated that the loan-to-deposit ratio in banks increased to 52.4% in