AAIB reaps rewards of three years of development under Tamer Waheed

Arab African International Bank (AAIB) has undergone a marked shift in its growth trajectory since Tamer Waheed became Vice Chairman and Managing Director in May 2023, as the bank moved to broaden its core business, diversify growth drivers and strengthen operational, financial and risk-management capabilities.

During this period, the bank advanced on several fronts in parallel, from strengthening its customer base and growing its main portfolios to expanding credit activity, reinforcing its capital base and improving asset quality and profitability indicators.

The results of this strategy became more evident in H1 2026, as the bank’s assets exceeded EGP 1 trillion, while deposits and financing continued to grow at strong rates. At the same time, the NPL ratio fell to its lowest level in a decade, capital adequacy strengthened and the bank recorded the highest quarterly profit in its history.

These results reflect more than an expansion in business volumes. They show broad-based improvement across key indicators, as the bank grew its operations while maintaining a strong financial position and improving the efficiency of asset and capital deployment.

Sustained expansion across core financial portfolios

The bank’s total assets recorded notable growth during H1 2026, reaching EGP 1.04 trillion at end-June 2026, compared with EGP 955.24 billion at end-2025, representing growth of 9 per cent and an increase of more than EGP 82 billion in just six months.

Customer deposits also maintained their upward trajectory, rising to EGP 739.98 billion at end-June 2026 from EGP 687.08 billion at end-2025, representing growth of 8 per cent and an increase of EGP 52.90 billion.

Deposit growth was supported by strong performance across customer segments. Retail deposits increased by 9 per cent during H1 2026 to EGP 324.49 billion at end-June, from EGP 296.89 billion at end-2025.

Corporate deposits also increased to EGP 415.49 billion at end-June 2026, from EGP 390.19 billion at end-2025, representing half-year growth of 6 per cent.

On the credit side, the bank continued to expand its customer loan portfolio at a strong pace, rising to EGP 287.50 billion at end-June 2026 from EGP 240.67 billion at end-2025, representing half-year growth of 19 per cent.

Corporate loans were the main driver of this expansion, rising by around 19 per cent to EGP 250.32 billion at end-June 2026, from EGP 209.72 billion at end-2025, including small loans for economic activities.

At the same time, the retail loan portfolio recorded strong growth, increasing by 20 per cent during H1 2026 to EGP 37.18 billion at end-June, from EGP 30.96 billion at end-2025.

This performance reflects continued expansion in the bank’s core business and credit activity, alongside strong growth in assets and deposits during H1 2026.

Strong improvement in financial soundness indicators

The bank strengthened its financial soundness indicators during H1 2026, supported by improved credit portfolio quality and stronger solvency levels alongside continued business growth.

The non-performing loan (NPL) ratio declined to 1.15 per cent at end-June 2026 from 2.1 per cent at end-2025, its lowest level in a decade, placing the bank among the five best banks in the Egyptian market in terms of NPL ratio.

This improvement is particularly significant given the strong growth in the loan portfolio, reflecting the bank’s ability to expand credit activity while maintaining greater discipline in portfolio quality and risk management.

At the capital level, the bank’s capital adequacy ratio stood at 18.50 per cent at end-June 2026, above the 12.5 per cent regulatory minimum set by the Central Bank of Egypt (CBE) under Basel requirements, providing a strong capital base to support continued growth and absorb potential risks.

The leverage ratio also reached 12.54 per cent at end-June 2026, more than three times the minimum regulatory requirement of 3 per cent, reflecting the strength of the bank’s capital base and its ability to support asset growth while maintaining strong solvency levels.

Strong growth in profitability and returns

As the bank expanded its core business and strengthened asset quality, its financial performance also improved, with profitability rising strongly in H1 2026.

The bank recorded net profit of EGP 10.25 billion during H1 2026, compared with EGP 8.09 billion in the corresponding period of 2025, representing growth of 27 per cent and an increase of EGP 2.16 billion.

This marked the highest first-half profit in the bank’s history, reflecting strong financial performance during the first six months of the year and continued improvement in its ability to generate higher levels of profitability.

The improvement extended to return indicators, with return on average equity rising to 14.08 per cent during H1 2026 from 12.09 per cent in the corresponding period of 2025, an increase of 1.99 percentage points.

Return on average assets also increased to 2.06 per cent during H1 2026 from around 1.75 per cent in the same period a year earlier, an increase of 0.31 percentage point.

Global recognition of AAIB’s progress

Alongside the strong financial performance recorded during H1 2026, AAIB received notable global recognition during the year through a series of awards covering several key areas of its banking activities.

The bank was named Best Bank for Large Corporates in Egypt 2026 by Euromoney and Best Retail Bank – Egypt 2026 at MENA Banking Excellence Awards by MEED, recognising its performance across both corporate and retail banking.

The awards also extended to customer experience, banking solutions and corporate social responsibility. World Business Outlook named AAIB Best Customer Experience in Banking, recognised it for Excellence in Corporate Financing Solutions, and awarded it Best CSR Initiative in Banking in Egypt 2026.

The bank also received the Best Sustainable Bank and Best Investment Bank in Egypt 2026 awards from World Economic Magazine, extending its international recognition across several areas linked to its business model and diversified services.

Years of development lay the foundation for a new phase

AAIB’s H1 2026 results point to broad-based improvement across business activity, profitability, asset quality and solvency, providing a stronger foundation for the next phase of its strategy.

The bank’s broader core business and strong financial position provide room for further growth, while maintaining asset quality and capital efficiency will remain key to translating that expansion into sustainable gains and strengthening its position in Egypt’s banking market.