CBE unveils key banking soundness metrics for 2023

CBE unveils key banking soundness metrics for 2023

The Central Bank of Egypt (CBE) has disclosed the principal financial soundness indicators for banks within the Egyptian market as of year-end 2023.

According to a recent report, CBE noted a decrease in the ratio of non-performing loans to 3% at the close of 2023, down from 3.3% in the preceding two quarters and 3.5% in the initial quarter.

For the 10 largest banks in Egypt, non-performing loans constituted 2.4% of total lending, while the top five banks reported a lower figure of 2.2%.

The report further highlighted that banks set aside provisions covering 88.7% of their total non-performing loans by December 2023, a marginal increase from 88.6% at September’s end. The coverage ratio was higher among the 10 largest banks at 95.2%, reaching 100% within the five largest banks.

CBE stated: “Banks allocated EGP 346.922bn for potential loan losses by year’s end, with the 10 largest banks accounting for EGP 264.464bn of this amount. The five largest banks set aside EGP 231.231bn.”

Additionally, banks have built up reserves totaling EGP 476.473bn. The top 10 banks hold EGP 376.826bn of these reserves, while the five largest banks have amassed EGP 324.416bn.

Private Sector Loans

CBE reports that the private sector held 51.9% of the total loans provided