Egyptian Banks Report Significant Profit Increases for 2024

The Central Bank of Egypt reports that banks in Egypt achieved net profits of EGP 426.911 billion in the first nine months of 2024. The top 10 banks accounted for 79.73% of these profits, with major contributions from the National Bank of Egypt, Banque Misr, and the Commercial International Bank. Performance metrics remained stable, underlining the sector’s strong profitability.

The Central Bank of Egypt (CBE) has reported that banks operating in Egypt generated net profits of EGP 426.911 billion in the first nine months of 2024. The total net return for these banks reached EGP 669.365 billion, while net activity revenues amounted to EGP 828.556 billion. The banking sector’s total expenditures stood at EGP 401.645 billion during this period.

According to the CBE’s findings, the top 10 banks contributed approximately 79.73% of the overall sector profits, which translates to EGP 340.411 billion. Notably, the top five banks accounted for around 65.06% of the sector’s profits, totaling EGP 277.749 billion. Noteworthy banks leading in performance include the National Bank of Egypt (NBE), Banque Misr, and the Commercial International Bank (CIB).

As of September 2024, the top 10 banks recorded a net return of nearly EGP 521.694 billion, with net activity revenues of EGP 650.077 billion, and total expenses amounting to EGP 309.666 billion. Concurrently, the top five banks achieved a net return of EGP 434.524 billion, net activity revenues of EGP 545.96 billion, and total expenses of EGP 268.227 billion as of June 2024.

Moreover, the report highlighted that the return on average equity for banks in Egypt held steady at 32.2% in September 2024, consistent with previous months in the same year. The return on average assets was noted at 2%, and the net return margin was 5.2%. For the top 10 banks, the return on average equity was slightly elevated at 33.6%, while the return on average assets maintained at 2% with a net return margin of 5%. Among the top five banks, the return on average equity stood at 33.1%, with a return on average assets at 1.8% and a net return margin of 4.8%.

These findings illustrate the robust performance of Egypt’s banking sector, predominantly led by a handful of major banks that significantly influence the sector’s overall profitability.

The CBE’s report on the banking sector in Egypt indicates a substantial profitability growth, with the top 10 banks contributing to nearly 80% of total profits. Noteworthy is the stable return on equity and assets, indicating a healthily performing banking environment. The dominance of major banks, such as the NBE, Banque Misr, and CIB, emphasizes their critical role in driving the sector’s success and profitability. The consistent performance metrics suggest a resilient banking sector amidst economic challenges.

Original Source: www.dailynewsegypt.com