Egyptian banking sector's assets achieve significant growth journey in 8 years, with 425% increase

The banking sector records the fastest annual growth rate in 8 years The Egyptian banking sector achieved a record jump in the size of its assets over the past 8 years, as its portfolio jumped to 20.799 trillion pounds by the end of 2024, compared to 3.963 trillion pounds by the end of 2016, with a growth rate of 424.88%, and a total increase of 16.837 trillion pounds.

During the past 8 years, the annual growth was the fastest during the past year, as the asset portfolio of banks operating in the Egyptian banking sector (other than the Central Bank) increased by about 46.46% during the past year, to record 20.799 trillion pounds by the end of 2024, compared to 14.201 trillion pounds by the end of 2023.

Highlighting the growth rates achieved over the past years, we find that the Egyptian banking sector’s asset portfolio achieved growth of about 25% during 2023, while it increased by about 32% during 2022.

In 2021, the sector's assets increased by 23%, while growth rates of 20% and 8% were recorded during 2020 and 2019, respectively.

Regarding the growth rate of the asset portfolio during 2018, it recorded an increase of 13%, compared to a growth of 21% during 2017.

This record jump in the volume of assets of the Egyptian banking sector reflects a combination of economic factors that contributed to achieving this rapid growth, most notably the major shift towards financial inclusion and the enhancement of digital banking services, which contributed to attracting a wider segment of customers, whether at the individual or institutional level.

Government and central bank initiatives also played a vital role in supporting the sector by providing various incentives to finance small, medium and micro enterprises, which are among the main engines of economic growth.

In addition, economic reforms contributed significantly to improving the investment climate, especially after liberalizing the exchange rate, which provided an attractive environment for foreign investments and helped inject new liquidity into the banking sector.

The financial performance of the Egyptian banking sector during the current year reflects a strong trend towards achieving comprehensive and sustainable growth, as the sector recorded noticeable increases in many key financial indicators.

The net return of banks operating in the sector jumped by about 57.09% over the past year, recording 915.036 billion pounds during 2024, compared to 582.497 billion pounds during 2023, representing an increase of 332.539 billion pounds.

Net activity revenues rose to 1.116 trillion pounds in 2024, compared to 686.161 billion pounds in 2023, with a growth rate of 62.70%, and a total increase of 430.248 billion pounds.

The bamks' customer deposit portfolio increased from 10.137 trillion pounds by the end of 2023, to 13.482 trillion pounds by the end of 2024, with a growth rate of 32.99%, and a total increase of 3.345 trillion pounds.

Lending and discount balances for customers in banks (other than the central bank) rose to 8.375 trillion pounds by the end of 2024, compared to 5.462 trillion pounds by the end of 2023, with a growth rate of 53.33%, and an increase of 2.913 trillion pounds.

The banks' capital jumped from 410.877 billion pounds by the end of 2023, to 575.204 billion pounds by the end of 2024, with a growth rate of 39.99%, and a total increase of 164.327 billion pounds.

Banks' balances in Egypt jumped to 3.757 trillion pounds by the end of 2024, compared to 2.606 trillion pounds by the end of 2023, with a growth rate of 44.12%, and an increase of 1.150 trillion pounds.

Banks' reserves increased by 326.755 billion pounds over the past year, reaching 803.228 billion pounds by the end of 2024, compared to 476.473 billion pounds by the end of 2023, with a growth rate of 68.58%.

The portfolio of securities and investments in treasury bills rose to 6.659 trillion pounds by the end of 2024, compared to 5.184 trillion pounds by the end of 2023, with a growth rate of 28.46%.