First Index: AAIB strengthens profitability, financial soundness in H1 2026

Arab African International Bank’s (AAIB) strong performance in the first half of 2026 extended beyond profit growth, with returns on assets and equity also improving alongside higher earnings per share, reflecting a marked strengthening in profitability during the period.

According to the bank’s standalone financial statements, Return on Average Equity (ROAE) rose to 14.08 per cent in the first half of 2026, from 12.09 per cent in the same period of 2025, an increase of 1.99 percentage points, reflecting higher profitability relative to average shareholders’ equity.

The improvement also extended to Return on Average Assets (ROAA), which rose to 2.06 per cent in the first half of the year, from 1.75 per cent in the corresponding period of 2025, an increase of around 0.31 percentage points, indicating stronger returns generated from the bank’s average asset base.

The improvement in return indicators coincided with a 27 per cent increase in AAIB’s net profit in the first half of 2026 to EGP 10.25bn, from EGP 8.09bn in the same period of 2025, an increase of EGP 2.16bn, further strengthening profitability.

Profit growth also translated into higher basic earnings per share, which rose to EGP 90.67 per share during the period from the beginning of January to end-June 2026, from EGP 69.20 in the same period of 2025, representing growth of 31 per cent and an increase of EGP 21.47 per share.

The performance reflects a broader profitability base at AAIB during the first half of 2026, supported by stronger returns on equity and assets and higher earnings per share, reinforcing the bank’s financial performance.

Alongside its strong profitability indicators, AAIB recorded a notable improvement across its key financial indicators. Total assets rose to EGP 1.04tn at end-June 2026, from EGP 955.24bn at end-2025, representing growth of 9 per cent and an increase of more than EGP 82bn in just six months.

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

On the lending side, the bank maintained strong momentum, with customer loans rising 19 per cent to EGP 287.50bn at end-June 2026, from EGP 240.67bn at end-2025.

As for financial soundness indicators, the non-performing loan (NPL) ratio declined to 1.15 per cent at end-June 2026, from 2.1 per cent at end-2025, marking its lowest level in a decade and placing the bank among the five best banks in the Egyptian market by NPL ratio.

The bank’s capital adequacy ratio stood at 18.50 per cent at end-June 2026, exceeding the 12.5 per cent regulatory minimum set by the Central Bank of Egypt under Basel requirements, providing the bank with 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.