Ahli United Bank, Emirates NBD and Alex Bank compete to enter the Largest 10 Banks in loan market

Many changes are expected in the Largest 10 Banks positions according to the size of the loans, as competition between banks operating in the Egyptian banking sector flares, races to boost market shares, and increases the size of their major portfolios.

The top of the Largest 10 Banks List is the National Bank of Egypt, with a market share that exceeded 44% of total banking sector loans by the end of September, flying away from its closest competitors, after its portfolio registered nearly 2.3 tn by the end of the same period.

Second place is Banque Misr with a market share that recorded 17.9% of total banking sector deposits by Q3 of 2023, after its portfolio jumped to EGP 912.7 bn by the end of the same period.

QNB Al-Ahly's third position brings a market share of 5.1% of total banking sector loans by the end of September 2023, after its portfolio registered about EGP 259.8 bn by the end of the same period.

The fourth position is the Commercial International Bank with a market share of 4.99% of total banking sector loans by the end of Q3 of 2023, following the rise of its total customer loans to EGP 254.5 bn by the end of the same period.

It should be noted that Commercial International Bank is likely to clinch third place by the end of 2023 from QNB following the announcement of its financial statements by the end of 2023, which is expected to take place in the next few days. If the bank continues to grow rapidly at the level of the loan portfolio which has already been referred to in a previous analysis under the heading "CIB is a step away from clinching the title of largest private sector Bank in loans" and you can see it in full by clicking here

Banque du Caire ranked fifth with a market share of 3.18% of total banking sector loans by the end of September 2023, after registering its total portfolio of about EGP 162.3 bn by the end of the same period

As for the sixth position, the Arab African International Bank has a market share of 3.1% of total banking sector loans by the end of Q3 of last year, following the rise of its total customer loans to EGP 155.7 bn by the end of the same period

It is worth mentioning that it is strongly likely that AAIB will clinch fifth place by the end of 2023, especially given the significant growth in its loan portfolio, which has pushed it to register the fastest quarterly growth in 5 years, while also outperforming Banque du Caire in growth rates and increases achieved.

The seventh and eighth positions are NBK Egypt and First Abu Dhabi Bank Egypt achieving a share of 1.9% and 1.6% respectively of total banking sector loans by Q3 of 2023.

Agricultural Bank of Egypt took Ninth position with a market share that recorded 1.4% of total banking sector loans by the end of September 2023, following the registration of its portfolio of approximately EGP 72 bn by the end of the same period.

Abu Dhabi Islamic Bank – Egypt ranked tenth with a market share of 1.3% total Egyptian banking sector loans by the end of September 2023, after its customer loans jumped to EGP 65.6 bn by the end of Q3 of last year.

Which raises a question in some minds, perhaps, about what banks are so close to entering the Largest 10 Club?! Especially, this is no longer difficult in the light of the various changes that have taken place in the List in recent years, which we have observed in previous articles, and we will address more in other upcoming articles.

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: Ahli United Bank -Egypt, Emirates NBD, Alex Bank

Turning to the performance of the three banks over the past five years, Ahli United Bank - Egypt is the largest of the three banks in terms of portfolio size, with total loans of EGP 63.6 bn at the end of last September, followed by Alex Bank with a portfolio of EGP 61.5 bn, while third position is for Emirates NBD with total loans of EGP 54.7 bn at the end of the same period.

As for the performance of the three banks over the past five years, Ahli United Bank - Egypt recorded the fastest growth rate among the three banks in the period under analysis. Its total loans increased by 149.1%, reaching EGP 63.6 bn by the end of September 2023, compared to EGP 25.5 bn by the end of 2018, with an increase of EGP 38.1 bn.

The Second position in terms of growth speed, Emirates NBD, with its portfolio rising by 81.89% during the period under analysis, recorded EGP 54.7 bn by Q3 of 2023, compared to EGP 30.1 bn by the end of 2018, with an estimated increase of EGP 24.6 bn.

Third place, AlexBank, which increased its total loans by 50.21% during the period under analysis, reaching EGP 61.5 bn by the end of September 2023, compared to EGP 41 bn by the end of 2018, with an increase of EGP 20.6 bn.

Based on the above, Ahli United Bank - Egypt is the strongest candidate to enter the Largest 10 Club in the loan market, as it is the largest of the three banks in terms of portfolio size, fastest growing during the period under analysis, followed by Emirates NBD, and AlexBank according to the pace of growth achieved.