Banks are about to enter the Largest 10 Club in the deposit market

Banks operating in the banking sector are racing to attract different segments of customers to them and earn their trust, by offering many savings deposits that fit their changing needs.

With this acceleration, leading banks were able to book a place among the list of the largest 10 banks in Egypt, topped by the National Bank of Egypt with a market share that exceeds 36% of total banking sector deposits by the end of September, after its portfolio rose to about EGP 3.5 tn by the end of the same period.

Banque Misr is in second place in terms of the market share of deposits, with a share of 18.95% of the total banking sector deposits by Q3 of 2023, compared to 20.13% by the end of 2022, and the slight decline comes despite the rise in the portfolio size to EGP 1.9 tn by the end of the same period.

Commercial International Bank comes as the third largest bank in the deposit market, with a market share of 6.82% of total banking sector deposits by Q3 of 2023, compared to 6.18% by the end of 2022. This increase achieved as its portfolio rise to EGP 665.9 bn by the end of the same period.

QNB ranked fourth, with a market share of 5.10% of total banking sector deposits by the end of Q2 of 2023, compared to 4.74% by the end of 2022, due to a rise in its portfolio to EGP 498.3 bn by the end of the same period.

As for the new member of the big largest list, which was able to regain its leadership and position again after years of absence was the Arab African International Bank, where his share jumped to 3.34% of the total banking sector deposits by the end of September 2023.

Banque du Caire fell to sixth position, with its market share falling to 2.81% of total banking sector deposits by the end of September 2023, although its portfolio rose to EGP 274.5 bn by the end of the same period.

While First Abu Dhabi Bank - Egypt ranked seventh with a market share of 2.05% of total banking sector deposits by the end of September 2023, after its portfolio rose to EGP 200.3 bn by the end of the same period.

Agricultural Bank of Egypt took eighth position with a market share of 1.74% of total banking sector deposits by Q3 of 2023, while the HSBC - Egypt and Faisal Islamic Bank of Egypt were in ninth and tenth positions with a share of 1.55% and 1.33% respectively by the end of the same period.

And the question here is, what are the banks so close to entering the largest 10 Club? Especially, this is no longer difficult given the various changes that have taken place in the list in recent years.

By monitoring the performance of all banks operating in the Egyptian banking sector, First Bank found that there are 3 banks nominated to enter the largest 10 Club in the coming period, namely ALEXBANK, Abu Dhabi Islamic Bank and Emirates NBD.

Addressing the performance of the three banks over the past five years, ALEXBANK is the largest of the three banks in terms of portfolio size, with a deposit portfolio of EGP 123.4 bn by the end of September 2023, followed by Abu Dhabi Islamic Bank with a portfolio size of EGP 115.5 bn, while Emirates NBD with a portfolio size of EGP 110.7 bn by the end of the same period.

As for the performance of the three banks over the past five years, Abu Dhabi Islamic Bank recorded the fastest growth rate among the three banks, with its customer deposits portfolio rising by about 188.66% over the past five years, moving from EGP 39.9 bn by the end of 2018, to EGP 115.3 bn by Q3 of 2023, with an increase of EGP 75.4 bn.

Second in terms of growth speed, Emirates NBD's portfolio rose by 164.45% during the period under analysis, reaching EGP 110.7 bn by the end of September 2023, compared to EGP 41.9 bn by the end of 2018, with an increase of EGP 68.8 bn.

ALEX BANK ranked third where its deposit portfolio rose from EGP 78.8 bn by the end of 2018, to EGP 123.4 bn by the end of Q3 of 2023, with a growth of 56.66% and an increase of EGP 44.6 bn.

According to the size of the portfolio, ALEXBANK is the closest to the largest 10 Club If Emirates NBD and Abu Dhabi Islamic Bank continue to grow rapidly, the two banks are expected to be strong candidates for the largest 10 list. If the growth of Faisal Islamic Bank of Egypt slows, it ranked tenth in the list of the largest banks in the deposit market with a portfolio size of EGP 130.3 bn by the end of September.