BE Magazine - August 2026

Assets of Banks in Egypt earlier. Coverage reached 90.3% among the ten largest banks and 93.4% among the five largest. According to the CBE, total provi- sions set aside for doubtful debts reached EGP 745.636bn in March. The ten largest banks accounted for EGP 624.149bn of these provisions, while the five largest held EGP 561.805bn. Banks also held reserves worth EGP 1.256trn, including EGP 960.179bn at the ten largest banks and EGP 814.967bn at the five largest. PRIVATE SECTOR LENDING The private sector’s share of total bank lending declined to 40.5% in March 2026, compared with 41.9% in December 2025, according to the CBE. The private sector accounted for 34.2% of lending among the ten largest banks and 30.4% among the five largest. Total loans and discount balances increased to EGP 11.390trn from EGP 10.377trn in 2025, represent- ing growth of EGP 1.013trn during the quarter. Outstanding loans reached EGP 9.039trn among the ten largest banks and EGP 8.321trn among the five largest. LOAN-TO-DEPOSIT RATIO The banking sector’s overall loan- to-deposit ratio rose to 68.4% in the first quarter, up from 66.4% in 2025. The ratio reached 69.9% among the ten largest banks and 74% among the five largest. The loan-to-deposit ratio in local currency edged down to 60.3% from 61%, while the foreign cur- rency ratio climbed sharply to 92.9% from 85.4%. Among the ten largest banks, the local currency ratio stood at 58.5% and the foreign currency ratio at 105%. For the five largest banks, the corresponding ratios were 60.7% and 117.4%. CUSTOMER DEPOSITS Customer deposits increased by EGP 1.117trn to reach EGP 16.884trn in Q1 2026, compared with EGP 15.767trn in December 2025. The ten largest banks accounted for EGP 13.116trn, or 77.7% of total deposits, while the five largest held EGP 11.345trn, representing 67.2%. The ratio of deposits to total assets declined to 62.9% from 65.5% in 2025. The ratio stood at 61.8% among the ten largest banks and 60.6% among the five largest. The CBE also reported that the av- erage actual liquidity ratio in local currency increased to 42.3% in March from 40.3% in December. The ratio reached 42.2% among the ten largest banks and 40% among the five largest. Meanwhile, the average actual liq- uidity ratio in foreign currencies de- clined to 73.4% from 79.5%. It stood at 74.6% among the ten largest banks and 74.2% among the five largest. SECURITIES ANDTREASURY BILLS Banks’ holdings of securities and Treasury bills increased by about EGP 793bn during Q1 2026 to EGP 8.618trn, compared with EGP 7.825trn in December 2025. Investments by the ten largest banks rose to EGP 6.826trn from EGP 6.185trn, while those of the five largest increased to EGP 5.854trn from EGP 5.345trn. The CBE said the ratio of banks’ se- curities portfolios, excluding Treas- ury bills, to total assets declined slightly to 21.2% from 21.9%. The ratio stood at 22.6% among the ten largest banks and 23.7% among the five largest. CAPITAL ADEQUACY The banking sector’s capital ade- quacy ratio declined to 18.5% in March from 19.6% in December, while remaining comfortably above regulatory requirements. The ratio stood at 18.1% among the ten largest banks and 17.6% among the five largest. The Tier 1 capital ratio fell to 15.5% from 16.5%, while the Common Equity Tier 1 (CET1) ratio declined to 13.8% from 14.5%. Among the ten largest banks, the Tier 1 ratio stood at 14.8% and the CET1 ratio at 13.1%. For the five largest banks, the corresponding ra- tios were 14.3% and 12.4%. The banking sector’s leverage ratio remained unchanged at 7.6%, com- pared with the regulatory minimum requirement of 3%. The ratio stood at 7.2% among the ten largest banks and 7% among the five largest. Net open foreign currency positions In a separate indicator, the CBE said banks’ net open foreign currency position shifted to negative 1.6% of total capital in March 2026, com- pared with a positive 4.6% in De- cember 2025. The ratio stood at negative 2% among the ten largest banks and negative 2.2% among the five largest. The CBE reiterated that the total sur- plus or deficit in a bank’s foreign currency positions must not exceed 20% of its capital base. ISSUE 212 AUGUST 2026 the BANKING EXECUTIVE 39