Faisal Bank, QNB Al Ahli, and Credit Agricole Bank top listed banks in Capital Adequacy Ratio by March 2023end

First Bank list of top listed banks in capital adequacy ratio (CAR) by the end of the first quarter of the current year revealed that Faisal Islamic Bank of Egypt topped the list with a capital adequacy ratio of 24.47% by the end of March 2023.

The list, which included 11 banks listed on the Egyptian Stock Exchange, showed that 5 listed banks managed to achieve a capital adequacy ratio (CAR) exceeding the prevailing sector average of 19% by the end of December 2022, as revealed in the latest statistical bulletin issued by the Central Bank of Egypt.

All listed banks managed to exceed the minimum threshold set by the Central Bank for the capital adequacy ratio, which is 12.5%. This came after local banks continued to strengthen their capital adequacy ratios by the end of the financial period ending in December 2022, as part of their ongoing efforts to implement the best international practices and Basel requirements.

The capital adequacy ratio reflects the ratio of a bank's capital components to its risk-weighted assets, indicating the relationship between the bank's capital source and the risks associated with its assets and other operations. It serves as a measure of the bank's solvency, i.e., its ability to meet its obligations and withstand any future losses, with the aim of protecting the bank, depositors, and other lenders.

Qatar National Bank Al Ahli ranked second, recording CAR of 21.22% by the end of the first quarter of 2023, followed by Credit Agricole Egypt in third place with a ratio of 19.72% by the end of last March.

As for the fourth position, it was obtained by Commercial International Bank Egypt, with CAR of 19.32% by the end of March 2023, followed by Housing and Development Bank with 19.11% during the same period.

saib ranked sixth after recording CAR of 18.39% by the end of March 2023, while alBaraka Bank - Egypt secured the seventh position with 16.13% by the end of the first quarter of the current year.

Egyptian Gulf Bank ranked eighth with CAR of 15.48%, followed by Abu Dhabi Islamic Bank - Egypt in the ninth position with 15.04% by the end of March 2023.

Export Development Bank of Egypt came in tenth place among the listed banks with CAR of 13.95%, followed by Suez Canal Bank with 13.02% by the end of March 2023.

It is worth noting that all the mentioned data in the above analysis are based on separate announced financial statements of each bank by the end of March 2023.