Arab Finance: The financial soundness indicators showed resilience and robustness in Egypt’s banking sector amid the current geopolitical circumstances, the Central Bank of Egypt (CBE) announced.
The sector plays a vital role in supporting the government’s efforts to achieve economic, financial, and monetary stability.
It provides financing for economic segments, contributing to the increase of gross domestic product (GDP) and achieving high growth and investment rates, in addition to creating job opportunities.
By the end of the fourth quarter (Q4) of 2025, the capital adequacy ratio hit 19.6%, marking an increase of 0.4%, compared to a minimum regulatory requirement of 12.5%.
As for 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%.
Indicators also showed that the liquidity rates in both local and foreign currencies remained high and stable at 40.3% and 79.5%, respectively, well above the minimum required levels of 20% and 25%.
Meanwhile, the loan-to-deposit ratio marked 66.4% by the end of Q4 2025.
This confirms the preservation of high profit margins, with a return on equity of 39% by the end of 2024.
