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 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.