The Egyptian banking sector, excluding the Central Bank, has witnessed considerable expansion in its operations and financing activities during the first half of 2026. According to data released by the Central Bank of Egypt, the total assets of the banking sector reached approximately 27.661 trillion EGP. This growth is attributed to an increase in lending and investment channels, alongside an improvement in deposit base and profitability indicators.
The structure of the banking sector's assets reveals that customer loans and discounts stood at 11.653 trillion EGP, while securities and investments in treasury bills amounted to 8.136 trillion EGP. This indicates that loans and facilities constituted 42.1% of total assets, whereas government securities and investments made up 29.4%. This balance reflects efficient liquidity management between the private and public sectors.
On the resource side, customer deposits reached 17.113 trillion EGP by the end of June 2026, representing the primary source of financing for banking activities at 61.9% of the total financial position. The loan-to-deposit ratio increased to 68.9% by the end of June, up from 68.4% in March, driven by higher utilization of local currency deposits, which rose to 62.2%. Meanwhile, the utilization of foreign currency deposits remained stable at high levels, reaching 92.5%.
The private sector's share of total facilities increased to 41.7%, and the capital adequacy ratio of banks to risk-weighted assets improved to 19.4%. Additionally, the net open positions in foreign currencies shifted to a surplus of 2.4% of the capital base, following a deficit of 1.6% in March 2026. These indicators suggest enhanced financial stability and resilience within the banking sector.
The quality of the credit portfolio and financial performance also showed positive trends. The ratio of non-performing loans to total loans reached a record low of 1.8% by the end of June 2026, covered by provisions amounting to approximately 751.028 billion EGP. This robust provisioning indicates the sector's preparedness for potential risks.
The growth in operations had a direct impact on profitability, with net operating income reaching around 795 billion EGP. Net interest income and traditional intermediation contributed 567.872 billion EGP to this figure. Consequently, the banking sector achieved net profits of 373.1 billion EGP during the first half of 2026, representing 46.9% of total income. This demonstrates the sector's strong ability to convert revenue into profits after deducting expenses and taxes.
In terms of liquidity and capital management, Egyptian banks' reserves with domestic and foreign banks stood at 2.873 trillion EGP and 1.951 trillion EGP, respectively. The sector also witnessed advancements in digital infrastructure, with the number of ATMs increasing to 27.3 thousand and POS machines exceeding 296.4 thousand. The total number of bank cards reached 72.5 million, reflecting ongoing efforts to enhance financial inclusion alongside credit growth and profitability.
Key points
- Egyptian banking sector's total assets reached 27.7 trillion EGP.
- Net profits of the banking sector hit 373 billion EGP as of June 2026.
- The sector witnessed significant growth in digital infrastructure and financial inclusion.
