The Central Bank of Egypt (CBE) said on Thursday that the latest financial soundness indicators underscore the continued resilience and robustness of the Egyptian banking sector.
It also reaffirmed its role as a fundamental pillar supporting economic, financial and monetary stability.
The sector’s capacity to extend financing across a broad range of economic activities remains instrumental in driving national output, sustaining strong growth and investment levels, and generating employment opportunities, the CBE said in a statement.
It added that the capital adequacy has shown further improvement, with the ratio reaching 19.6 per cent at the end of the final quarter of 2025, exceeding the minimum regulatory requirement of 12.5 per cent.
Asset quality indicators have also strengthened, as the ratio of non-performing loans to total loans declined to 1.9 per cent, supported by a provision coverage ratio of 90.2 per cent.
Liquidity levels remain robust and well above regulatory thresholds. Liquidity ratios in local and foreign currencies recorded 40.3 per cent and 79.5 per cent respectively, compared with minimum requirements of 20 per cent and 25 per cent.
Meanwhile, the loan-to-deposit ratio stood at 66.4 per cent at the end of the fourth quarter of 2025, the bank noted in its statement, adding that profitability indicators continue to reflect strong performance across the sector, with return on equity reaching approximately 39.0 per cent by the end of the 2024 financial year.
These indicators collectively highlight the solid financial position of the banking sector and its capacity to support the national economy.
This strengthis reinforced by the CBE’s effective supervisory framework and its ongoing real-time monitoring of banking performance, ensuring full compliance with internationally recognised best practices in financial soundness, the bank noted.
