Moody’s expects Egyptian banking system to remain stable in 2021

Moody’s expects Egyptian banking system to remain stable in 2021

A Moody's sign is displayed on 7 World Trade Center, the company's corporate headquarters in New York - Reuters/Brendan McDermid







CAIRO – 21 January 2021: Moody's Investors Service expected in a report, Wednesday, Egypt's banking system to remain stable in 2021. 

 

‘The stable 2021 outlook for Egypt's banking system balances profitability and loan book pressures against sound liquidity and a stable government credit profile,”  it stated.

 

The report referred to the effect of coronavirus on the economy, foreseeing a modest economic growth of 2.4percent in 2021. 

 

It attributed this percentage to the hinder in industrial production and tourism sectors due to the crisis. However, it saw that “economic and fiscal reforms will cushion the blow and support a stronger 5 percentGDP growth in 2022.”

 

As for banking sector, it anticipated non-performing loans to rise from a sector average of 3.9 percent of gross loans as slowed business activity, subdued consumption and disruptions in the tourism and construction sectors take their toll