Banking sector records the fastest annual growth in loans in 8 years, with a growth rate exceeding 57%

The latest monthly statistical bulletin of the Central Bank of Egypt revealed that loan balances provided to customers by banks (other than the Central Bank) increased by about 57.20% over the past year, reaching 8.31 trillion pounds by the end of 2024, compared to 5.286 trillion pounds by the end of 2023, which represents a total increase of 3.024 trillion pounds, recording the fastest annual growth in 8 years.

This record growth came despite interest rates reaching their highest historical levels during 2024, under the influence of the decline in the value of the pound against foreign currencies, which doubled the nominal value of foreign assets, led by loan balances in foreign currencies, in addition to the increasing demand for financing by individuals and institutions.

Highlighting the growth rates achieved over the past years, we find that the Egyptian banking sector’s loan portfolio achieved growth of about 31.73% during 2023, while it increased by about 32.34% during 2022.

In 2021, loan balances provided to customers by banks (other than the Central Bank) increased by 23.47%, while growth rates of 31.11% and 3.95% were recorded during the years 2020 and 2019, respectively.

Regarding the growth rate of the loan portfolio during 2018, it recorded an increase of 24.01%, compared to a growth of 12.34% during 2017.

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.

This was evident in the significant improvement in profitability rates, as well as the noticeable growth in the volume of credit and deposits, as the net profits of banks operating in the Egyptian banking sector (other than the Central Bank) jumped to 534.852 billion pounds during 2024, compared to 283.388 billion pounds during 2023, with a growth rate of 88.73%.%, and a total increase of 251.464 billion pounds.

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.

In terms of the financial position, the asset portfolio of banks operating in the Egyptian banking sector (other than the Central Bank) increased by about 46.46% over the past year, recording 20.799 trillion pounds by the end of 2024, compared to 14.201 trillion pounds by the end of 2023.

Deposits of banking sector customers (other than the central bank) rose at a growth rate of 33.81% over the past year, recording 13.60 trillion pounds by the end of 2024, compared to 10.16 trillion pounds by the end of December 2023, with an increase of 3.44 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.

Bank 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.

Bank 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%.

To view more news and analysis about the Central Bank of Egypt and its most prominent achievements, click here.