Financial Soundness Indicators Reflect the Resilience of the Banking Sector

The Financial Soundness Indicators have underscored the resilience and robustness of the banking sector as a key pillar supporting the State's efforts to achieve economic, financial, and monetary stability. This resilience is reflected in the banking sector's ability to provide financing for various economic sectors, contributing to the increase of Gross Domestic Product (GDP), and achieving high growth and investment rates, as well as creating job opportunities for all citizens. Additionally, the capital adequacy ratio reached 19.6% by the end of Q4 2025, marking an increase of 0.4%, compared to a minimum regulatory requirement of 12.5%.

Regarding asset quality, the Non-Performing Loans (NPLs) ratio declined to 1.9% of total loans, with the provisions' coverage ratio for NPLs reaching 90.2%. Moreover, indicators reflected the maintenance of high and stabilized liquidity rates in both local and foreign currencies, which recorded 40.3% and 79.5%, respectively, compared to the minimum regulatory requirement of 20% and 25%, respectively. As for the loan-to-deposit ratio, it marked 66.4% by the end of Q4 2025.

These indicators confirmed the preservation of high profit margins, with a return on equity of 39.0% by the end of FY2024.

In this regard, the banking sector's financial resilience fosters banks' ability to support the national economy, maintained by the regulatory framework of the Central Bank of Egypt (CBE), which closely monitors the performance of all banks and ensures their adherence to international best practices in achieving financial stability.