Banking Sector's Customer Loans Records Fastest Quarterly Growth Rate during the Last Decade with 46.2% growth

In a clear indication of the growing demand for financing by individuals and corporates, the Egyptian banking sector has seen a record increase in the granting of credit in recent years. The volume of loans provided to customers by banks "other than the Central Bank" has grown by 46.2% in the first 9 months of 2024, marking the fastest quarterly growth rate over the last 10 years.

The volume of loans to banks "other than the Central Bank of Egypt" rose to Pound7.73 trillion by the end of September 2024, compared to Pound5.29 trillion by the end of 2023, bringing an increase of Pound2.44 trillion.

This accelerated growth reflects new dynamics in the Egyptian banking market, driven by several factors, notably the expansion of credit grants, increased demand from individuals and companies, as well as monetary policies that have contributed to enhanced financing.

Highlighting the growth rates in the total portfolio over the past years, the banking sector achieved the second fastest quarterly growth rate in the volume of loans provided to customers by banks "other than the central bank" during the first 9 months of 2020 at 25.83%. The size of the portfolio also witnessed the third fastest quarterly growth rate in the first 9 months of 2023 at 25.07%.

Turning to the overall performance of the banking sector, we find that it achieved outstanding performance during the first 9 months of last year, after the net profits of banks operating in the Egyptian banking sector (other than the Central Bank) jumped to 426.91 billion pounds, compared to 212.58 billion pounds during the first 9 months of 2023, a growth of 100.82% and an increase of 214.33 billion pounds.

The volume of bank clients' deposits also rose to 12.78 trillion pounds by the end of September 2024, compared to 10.14 trillion pounds by the end of 2023, with a growth rate of 26.04% and an increase of 2.64 trillion pounds.

The banking sector's asset portfolio also saw strong growth in the first 9 months of 2024 at 49.20%, reaching 21.19 trillion pounds by the end of September 2024, compared to 14.20 trillion pounds by the end of 2023, an increase of 6.99 trillion pounds.

Banks' capital jumped from 410.88 billion pounds by the end of 2023, to 507.28 billion pounds by the end of September 2024, with a growth rate of 23.46% and an increase of 96.41 billion pounds.