Egyptian banking sector achieved significant growth during the last decade with 976.41% increase

12/29/2024 5:21:48 PM

Egypt's banking sector has made a record leap in its asset volume over the last decade, rising to 21.187 trillion pounds by the end of September 2024, compared to 1.968 trillion pounds by the end of 2014, marking an exceptional growth rate of 976.41%, and a total increase of 19.219 trillion pounds.

In the last decade, the largest quarterly growth came in this year, with the banking sector's asset portfolio growing by 49.20% during the first 9 months of 2024, reaching 21.187 trillion pounds by the end of September 2024, compared to 14.200 trillion pounds by the end of 2023, an increase of 6.986 trillion pounds.

Highlighting the growth rates achieved over the past years, the Egyptian banking sector's portfolio of assets grew by 29.33% during the first 9 months of 2023, while rising by 25.46% in the same period from 2022.

In 2021, the sector's assets rose by 20.82% during the first 9 months of the year, while growth rates were 17.64% and 7.18% during the same period in 2020 and 2019 respectively.

With regard to the growth rate of the asset portfolio during the first 9 months of 2018, it recorded an increase of 9.97%, compared to growth of 18.32%, 23.42% and 22.21% during the same period of 2017, 2016 and 2015 respectively.

This record leap in the size of the Egyptian banking sector reflects a combination of economic factors that have contributed to this accelerated growth, most notably the significant shift towards financial inclusion and the strengthening of digital banking services, which has contributed to attracting a wider segment of customers, both at the individual and enterprise levels.

Government and central bank initiatives have also played a vital role in supporting the sector by providing diverse incentives to finance SMEs, which are key drivers of economic growth.

In addition, economic reforms have contributed significantly to improving the investment climate, especially after exchange rate liberalization, providing an attractive environment for foreign investments and helping to inject new liquidity within the banking sector.