«ABK – Egypt», «Al Baraka», and «ADCB» Among the Least Exposed Banks to Exchange Rate Fluctuation Risks in the Egyptian Market

First Bank’s Ratings Center has launched a specialized index to measure banks’ exposure to exchange rate fluctuation risks, in a move aimed at providing an accurate quantitative assessment of the balance of foreign currency positions within banks’ financial structures.

The methodology of this index is based on measuring the degree of balance between a bank’s foreign currency assets and liabilities, through the ratio of total foreign currency assets to total foreign currency liabilities.

A ratio that approaches one (1.0) reflects a relatively balanced position between the two sides, indicating a neutral foreign exchange position and a lower level of exposure to exchange rate volatility risks.

Conversely, a ratio that deviates from one — whether above or below — indicates a gap in the structure of foreign currency assets and liabilities. Ratios above one suggests that foreign currency assets exceed liabilities, potentially exposing the bank to risks associated with exchange rate declines, while ratios below one indicates liabilities exceeding assets, increasing exposure to risks arising from exchange rate appreciation.

Accordingly, a ratio close to one (1.0) is considered the optimal position from a foreign exchange risk management perspective, as it reflects greater efficiency in matching assets with liabilities and reducing market risk exposure.

Regarding the performance of Egyptian banks on the index by the end of 2025, ABK – Egypt ranked first, recording an exchange rate risk exposure ratio of 0.9999, supported by foreign currency assets worth dollars 672.19 million, compared with foreign currency liabilities of dollars 672.22 million at the end of 2025.

Al Baraka Bank Egypt ranked second, with a ratio of 1.0007, benefiting from the strong alignment between its foreign currency assets and liabilities, which reached approximately dollars 780.43 million and dollars 779.90 million, respectively, by year-end 2025.

ADCB Egypt came in third, posting a ratio of 0.9989, reflecting an almost perfect balance between foreign currency assets and liabilities, with foreign currency assets totaling around dollars 660.91 million, against liabilities of dollars 661.60 million at the end of 2025.

Emirates NBD Egypt secured fourth place, with a ratio of 1.0019, backed by foreign currency assets worth dollars 1.02 billion, compared with foreign currency liabilities of dollars 1.01 billion at the end of 2025.

HSBC Egypt ranked fifth, posting a ratio of 0.9978, supported by the close balance between its foreign currency assets and liabilities, which stood at approximately dollars 2.67 billion and dollars 2.68 billion, respectively, by the end of 2025.

The Export Development Bank of Egypt (EBank) claimed sixth place, recording a ratio of 1.0030, with foreign currency assets amounting to dollars 1.40 billion, versus liabilities of approximately dollars 1.40 billion at the end of 2025.

NBK Egypt ranked seventh, with a ratio of 1.0062, benefiting from the close alignment between foreign currency assets and liabilities, which totaled around dollars 1.34 billion and dollars 1.33 billion, respectively, by year-end 2025.

Banque du Caire also ranked seventh, recording a ratio of 1.0116, supported by foreign currency assets worth dollars 3.14 billion, compared with foreign currency liabilities of dollars 3.11 billion at the end of 2025.

It is worth noting that all figures mentioned in the above analysis are based on the standalone financial statements announced by each bank as of the end of 2025.