Egypt's Industrial Development Bank (IDB) achieved a significant milestone in 2025, posting a net profit of EGP 1bn. This marks the first time the bank has reached this level of profitability. The bank's ordinary general assembly approved the accounts for the year ending December 31, 2025. The profit is attributed to a restructuring plan launched in mid-2024, aimed at strengthening the bank's position in the sector and its role in financing industry.
The bank's chief executive and managing director, Hussein Refaie, credited the restructuring plan and a clear strategy for the strong growth. He noted that the bank had moved from addressing structural problems to delivering sustainable growth. Total assets increased by 31% to EGP 64.9bn by the end of 2025. Customer deposits grew at a faster rate, up 44% to EGP 52.1bn, while the loan book expanded by 34% to EGP 34.6bn.
The bank's operating income rose by 33% to EGP 3.6bn, and profit before tax and provisions increased by 47% to EGP 2.5bn. This indicates that income grew faster than costs over the year. The bank also reported improvements in asset quality, with non-performing loans (NPLs) decreasing to 8.1% of total lending at the end of 2025, down from 13.9% the previous year.
The provision coverage ratio improved to 126% of bad loans, up from 97%. This means the bank now holds more in reserves than the value of loans classified as non-performing. Akram Tinawi, the bank's non-executive chairman, stated that IDB would continue to finance strategic projects across industry, energy, urban development, and clean power as part of its effort to diversify income.
The bank has approved a plan to open new branches and refurbish existing ones, aiming to widen its customer base and update its products. In 2025, IDB invested about EGP 500mn in technology, the first year of a five-year program with a target of EGP 3bn in total investment. The funds are being used to upgrade core banking systems, digital channels, cybersecurity, process automation, and mobile banking.
Refaie considered 2025 a milestone year for the bank, with the first billion-pound profit and the return of bonus shares to shareholders for the first time in two decades. He emphasized that IDB would continue to build an integrated banking model that balances profitability, sustainability, and growth as a full-service commercial lender.
The bank's progress is reflected in its financial performance, with a significant increase in profitability and asset quality. The return of bonus shares is expected to reward shareholders for their patience and support during the restructuring process. IDB's future plans focus on expanding its services, improving technology, and increasing its presence in the Egyptian market.
Key points
- The bank's net profit reached EGP 1bn in 2025, marking a significant milestone.
- The bank's restructuring plan, launched in mid-2024, contributed to its improved financial performance.
- IDB plans to continue financing strategic projects and investing in technology to drive growth and sustainability.
