10 most developed retail banking sectors in Egypt: NBE, HDB, alBaraka and EBank at the front

The retail banking sector has witnessed remarkable growth over the past year, driven by banks targeting new segments of customers they have never dealt with before, as well as their direction to deliver new products that meet the demands of target groups, their continued geographical expansion, and increased machinery and electronic banking.

Banks' interest in the banking retail sector is recent in the Egyptian market, and started with the beginning of the new millennium, with banks changing their connectivity towards a new sector of customers, which is family sector and retail banking services, following decades of unlimited interest in banking services and corporate credit.

Retail banking services have been widely accepted in the Egyptian banking market and, as a result, have been able to attract large segments of individual customers, in conjunction with the flourishing in services that did not exist in the Egyptian banking sector, such as e-payment services for taxes, customs and insurance, as well as mobile money transfer services, and the expansion of services provided through ATMs and Internet banking.

Especially with banks seeking to take advantage of this giant segment, and on the impact of this, they have worked to focus on market research, customer behaviour, looking for their needs for financial services, restructuring branches, hiring and training workers to deal with different segments of individuals, providing appropriate technological infrastructure, and reformulating business processes to align with the strategic transition to retail banking.

The Central Bank of Egypt has also played an important role in further strengthening this sector, pursuing a strategy aimed at expanding digital transformation; To promote financial inclusion, secure digital transactions and access to a less cash-dependent society, as well as encourage banking institutions to provide innovative banking solutions with the latest technology to meet market and customer aspirations, in line with the country's directives on digital transformation.

In this light, competition between banks operating in the Egyptian banking sector has been intensified, relying on two basic approaches: Developing products that already exist within the bank, and innovating new products.

Based on a number of criteria, First Bank highlights the 10 most powerful retail banking sectors operating in the Egyptian market, most notably the rapid growth of retail loans, their contribution to the bank's total loans, and the development of new products offered and their competitiveness in the market.

National Bank of Egypt tops retail banking

National Bank of Egypt is the first to develop far-reaching plans to develop its banking retail services resulting in a unique variety of saving deposits, certificates and electronic payment cards that vary to allow flexibility in meeting different customer needs.

NBE manages a huge portfolio of banking retail that is the largest on the banking sector as a whole. It exceeded the EGP 287 bn in November 2023, compared to EGP 227 bn by the end of 2022, with a growth of 26%, according to previous statements by Yehia Abou ElFotouh , Vice Chairman of the Board of Directors of the National Bank of Egypt.

The retail loans portfolio continues to grow dramatically, especially after surpassing the 2023 target growth of EGP 282 bn, according to earlier statements by Karim Seuss, chairman of the bank's retail risk sector, in which he revealed the retail banking targets by the end of 2023.

The retail bank loans portfolio contributes about 12% of the total NBE loan portfolio by the end of November.

The huge leap in the portfolio is due to the Bank's arming with a strong, multi-axis strategy, based on establishing the concept of retail financial inclusion as one of the key pillars for economic and social development.

In addition to expanding the digital and electronic transformation of the banking system by automating banking and making electronic products and services available in the simplest procedures through many alternative channels such as mobile banking and others and also support all the initiatives of the Central Bank of Egypt, in particular Mortgage Finance Initiative for Low and Middle Income to provide adequate housing at the lowest possible cost to those categories of customers and Natural Gas Vehicle Conversion Initiative.

Housing and Development Bank, Most reliant on the retail sector in Egypt

The retail banking sector of Housing and Development Bank has made a pioneering success story over the past years and has become the most contributing sector in building the bank's total loan portfolio at the level of all Egyptian banks.

Retail bank loans constitute about 56.10% of total HDB’s customer loans by the end of Q3 of 2023, continuing to top banks operating in the Egyptian banking sector in terms of focusing on retail loans.

The Bank manages a large portfolio of retail loans that surpassed the EGP 24 bn by the end of September 2023, compared to EGP 21.2 bn by the end of 2022, with a growth of 13% and an increase of EGP 2.8 bn.

Mortgage loans of the Bank top the portfolio of retail loans, accounting for 56.10% of the bank's total portfolio of customer loans, following its rise to EGP 24.04 bn by the end of September 2023, compared to EGP 21.19 bn by the end of December 2022.

This outstanding performance is the result of the Bank’s eagerness during the previous period to expand its retail banking products and introduce new competitive products meet the needs of the Egyptian market and the continuous development of banking and electronic services while developing existing services to meet the needs of all segments of society and expanding the customer base.

Hazem Hijazi’s policiespush alBaraka Bank to be the fastest growing retail banking sector

The retail banking sector has been critical since Hazem Hijazi assumed the leadership of alBaraka Bank, translated by huge increases in the retail bank loan portfolio, which has prompted the bank to continue topping banks operating in the Egyptian banking sector in terms of the rapid growth of retail loans even beyond its closest competitors over the past two years.

The Bank's retail loan portfolio rose by 60.1% during the first 9M of last year, reaching EGP 6.9 bn by the end of Q3 of 2023, compared to EGP 4.3 bn by the end of 2022, with an increase of EGP 2.6 bn, accounting for 16.90% of the bank's total financing.

The Bank's personal loan products dominated the largest share of its retail loans, their relative weight reached about 96.27% of the Bank's total retail loans by the end of September 2023, following a rise in its personal loans from EGP 3.7 bn by the end of 2022, to EGP 6.7 bn by the end of September 2023, with a growth of 78.2%, and an increase of EGP 2.9 bn.

Mortgage loans products ranked second, reaching EGP 218 mn by the end of Q3 of 2023, representing 3.15% of the bank's total retail loans, while the third and final position was taken by credit cards with a share of 0.6% by the end of the same period.

This record growth in the retail banking market comes as a result of the bank being able to offer new products that meet the diverse needs of customers, as well as being one of the first banks to launch saving certificates for 3 years with a variable profit rate not less than 19% disbursed monthly and in accordance with the Islamic Shari named "Diamond Plus".

He also launched a set of accounts that offer changing competitive returns, as well as a "Tharaa" service for customers with balances starting from EGP 1 mn or equivalent foreign currency or salary transfer accounts, starting with EGP 50,000 per month or equivalent foreign currency.

EBank, Standard performance in the retail banking market

Export Development Bank of Egypt attaches great importance to the retail banking sector in order to increase the size of the retail customer base and market share by conducting marketing campaigns at the level of banking products, including personal loans, credit cards, auto loans and Mortgage loans.

This is reflected in the increasing growth of EBank's rtail loans portfolio, which jumped by 51.1%, with an increase of EGP 2.32 bn over the first 9M of last year, rising to EGP 6.85 bn by the end of September 2023, compared to 4.54 bn by the end of December 2022, controlling 12.67% of the Bank's total customer loans.

The significant growth in retail loans was driven mainly by the growth of the personal loan portfolio, which grew by 41% and increased by EGP 1.54 bn during the first 9M of last year, to register EGP 5.32 bn by the end of September 2023, compared to 3.78 bn by the end of December 2022, accounting for 77.7% of the total retail loan portfolio by the end of the same period.

It is worth mentioning that the Bank aspires to achieve more in the retail banking sector. It has revealed an ambitious plan for this year, aimed at increasing the operating efficiency rate and focusing on the profitability of the customer by increasing the volume of cross-sales at the customer level, through the launch of a number of dedicated programs aimed at this purpose.

The Bank's plan for 2024 also includes the establishment of wealth management, which works to establish a close and professional relationship with each customer. Customers who are classified in the wealth segment are selected according to determinants and mechanisms determined by the department.

Suez Canal Bank Continues its growing interest in the retail bankingsector

Suez Canal Bank retail banking sector loans experienced remarkable growth during the first 9M of last year, jumping by 29.7%, reaching EGP 3.6 bn by the end of last September, after registering EGP 2.8 bn by the end of 2022, with an increase of EGP 817.9 mn, accounting for 9.80% of the Bank's total customer loans.

Personal loans are at the top of the products of Suez Canal Bank, accounting for 96.53% of the total retail loans portfolio by the end of last September, following an increase of about 33% during the first 9M of 2023, registering EGP 3.5 bn by the end of last September, compared to EGP 2.6 bn by the end of 2022, with an increase of EGP 856 mn.

These significant increases come within the framework of the Bank's expansion policy in the retail banking sector in which it has made a remarkable development in the delivery of its services over the past few years, He launched a package of financing products to meet the needs of this type of customer with distinctive characteristics and competitive return. The most important of these products, Mortgage loans, educational loans, in addition to the prominent role of Suez Canal Bank in the initiatives of the Central Bank of Egypt.

Banque Du Caire, focusing on retailloans

Banque Du Caire pays great attention to the retail banking sector. It is keen to develop promotional programs and campaigns tailored to the needs of customers in their various segments. It is also keen to diversify the loans directed to customers; it focuses on many segments of customers such as government, public sector, public business sector, private sector employees, employers, retirees, depositors and saving certificates, as well as its participation in all central bank initiatives, including Mortgage initiatives.

The bank manages a large portfolio of retail banking loans, amounting to EGP 68.3 bn by the end of September 2023, rising from EGP 54.2 bn by the end of 2022, bringing a growth rate of 25.8% and an increase of EGP 14 bn, accounting for 42.06% of the bank's total customer loans.

Personal loans are at the front of the products of retail banking products portfolio, reaching a volume of EGP 59.9 bn by the end of Q3 of 2023, representing about 87.70% of the Bank's total retail loans by the end of the same period.

aiBANK, A remarkable development in the retail banking market

The retail banking sector has been of great importance to the Arab Investment Bank since the bank's restructuring process, and the entry of new investors because of the acquisition deal made at the end of 2021, which witnessed the entry of EFG Hermes Holding as a major shareholder in addition to the Egyptian Sovereign Fund.

aiBANK manages a retail banking portfolio estimated at EGP 6.812 bn by the end of September 2023, following a rise of EGP 5.3 bn by the end of 2022, with a growth rate of 27.47% and an increase of EGP 1.5 bn, accounting for 28.22% of the bank's total customer loans.

Personal loans were the largest contributor to the Bank’s portfolio, accounting for 81.96% of the Bank's total retail banking sector loans by the end of September 2023.

The bank's personal loans rose by 32.24% in the first 9M of last year, reaching EGP 5.58 bn by the end of Q3 of 2023, compared to EGP 4.22 bn by the end of 2022, with an increase of EGP 1.36 bn.

ABK Egypt, New boom in retail banking

Al Ahli Bank of Kuwait - Egypt focused on retail banking sector as evidenced by the Bank's expansionary policies in granting retail loans, that pushed his retail banking loans portfolio to grow by about 22.4%, with an increase of EGP 2.74 bn in the first 9M of last year, it reached EGP 14.97 bn by the end of September 2023, compared to 12.23 bn by the end of December 2022, controlling about 34.57% of total customer loans and facilities by the end of September.

Personal loans contributed to the growth of the Bank's retail banking portfolio. The total portfolio increased by 21.6%, with an increase of EGP 2.56 bn over the first 9M of last year, reaching EGP 14.44 bn by the end of September 2023, compared to 11.87 bn by the end of December 2022, accounting for 96.45% of the bank's total retail loans.

The Bank seeks to strengthen its retail banking sector by focusing on the quality of services provided to this sector, considering it as the major driving force for the growth of the Bank. The Bank continues to pursue leadership and increase growth rates in the coming period by upgrading the competitive advantages of its products and developing its technological services to meet the needs and requirements of all segments of customers, attracting new segments and geographical expansion in the Egyptian market in order to increase its market share.

National Bank of Kuwait – Egypt, achieving a large portfolio of retail loans

NBK Egypt is very interested in the retail banking sector. The bank is keen to develop promotional programs and campaigns that are tailored to the needs of customers in their various segments, as well as to the diversity of customer loans.

This is reflected in the increasing growth in retail loans portfolio, which jumped by 17.79% in the first 9M of 2023, to EGP 12.73 bn by the end of September, compared to EGP 10.8 bn by the end of 2022, with an increase of EGP 1.92 bn, controlling 18.57% of the bank's total customer loans.

Personal loans lead the products of the Bank's retail banking products portfolio, accounting for 86.32% of the Bank's customer loans, following an increase from EGP 9.7 bn by the end of 2022 to EGP 11 bn by the end of September 2023.

The Bank aims to achieve further progress, as it seeks to further strengthen its position in the retail banking sector in the coming period, by providing advanced services and products suited to different segments of customers, as well as continuing the horizontal expansion plan by opening new branches covering the most important cities and governorates.