Faisal Bank, QNB AlAhli, CIB And HDBank among Best In Capital Adequacy Ratio

Faisal Islamic Bank of Egypt topped First bank list of best banks in terms of Capital Adequacy Ratio , after recording 31.93% at the end of September 2022.

Capital Adequacy Ratio (CAR) is the ratio of a bank's capital in relation to its risk weighted assets and current liabilities. It is decided by central banks and bank regulators to prevent commercial banks from taking excess leverage and becoming insolvent in the process. It is also used to protect depositors and promote the stability and efficiency of financial systems around the world.

The list included 20 banks operating in the Egyptian banking sector for which financial data was made available for the analysis period; 6 of the banks succeeded in achieving a capital adequacy ratio that exceeds the average prevailing in the banking sector of 20.5% by the end of Q3-2022, which was revealed by the Central Bank of Egypt's bulletin.

Commercial International Bank – Egypt  occupied the second place after its CAR recorded 26.70% at the end of September 2022, followed by QNB-ALAhli in the third place with a rate of 22.79% at the end of the same period last year.

Housing and Development Bank Egypt came in fourth place, after its CAR recorded 22.36%. It was  followed by the Arab Investment Bank at a rate of 22.19 %by the end of September 2022.

AlexBank came in sixth place after its CAR recorded 21.32% by the end of September 2022, while the Arab African International Bank ranked seventh with 20.02% by the end of the same period.

Credit Agricole Bank – Egypt ranked eighth after its CAR recorded 19.86% by the end of September 2022, followed by EGBANK and Al Baraka – Egypt in the ninth and tenth places with rates of 18.95% and 18 89% at the end of the same period last year.

Banque Misr came in eleventh place with CAR of 18.36%, followed by Abu Dhabi Commercial Bank of Egypt with a rate of 17.30% by the end of the third quarter of 2022.

It should be noted that all the data mentioned in the above analysis are according to the separated financial statements announced for each bank at the end of the period from January to September 2022.