CAIRO – 26 March 2026: Liquidity indicators in Egypt’s banking sector continued to show strong performance, with local currency liquidity rising to 40.3 percent and foreign currency liquidity reaching 79.5 percent by the end of the fourth quarter of 2025, significantly surpassing the regulatory minimum requirements of 20 percent and 25 percent, respectively.
Figures released by the Central Bank of Egypt (CBE) also pointed to a clear improvement in capital strength, as the capital adequacy ratio increased to 19.6 percent by the end of the fourth quarter of 2025, marking a 0.4 percent rise and remaining comfortably above the regulatory minimum threshold of 12.5 percent.
Regarding asset quality, the sector maintained positive momentum, with the non-performing loan ratio declining further to 1.9 percent of total loans, while the provisioning coverage ratio climbed to 90.2 percent, reflecting the continued effectiveness of banks’ risk management practices.
The loan-to-deposit ratio reached 66.4 percent by the end of the fourth quarter of 2025, indicating a balanced lending environment supported by solid deposit growth across the banking system.
Profitability indicators also remained strong, with return on equity standing at approximately 39.0 percent by the end of the fiscal year 2024, underscoring the banking sector’s sustained capacity to deliver robust financial returns despite ongoing economic shifts.
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