The Egyptian banking industry is the second-biggest after South Africa in the African continent. In 2021, Egypt recorded a GDP of around USD 403 billion, following Nigeria and South Africa. With around 36 banks operating in the country, the World Bank has appreciated the resilience and stability of the Egyptian Banking sector. As per reports, the banking sector amounted to EGP 9.2 trillion in March 2023, compared to EGP 1.4 trillion in March 2014. This is based on the fact that the sector has a low ratio of loans to deposits, ample liquidity, and a high deposit growth rate.
The Egyptian banking sector is basking in positive approvals from several international agencies for its initiatives towards the financing of small and micro enterprises and measures taken towards the overall improvement of its lending system. Most Egyptian banks are securing themselves today for any untoward economic calamities in the future through a stable financing structure, large protective liquidity, strong profitability, and flexible loan performance. Egypt has withstood some of the worst economic crises through stringent financial regulations from the centre and internal capital generation.
The growth of the Egyptian banking sector has been quite exponential. As per reports, From 2014 to 2022, the number of ATMs grew more than 3 times and Credit Card holders doubled. The same report states that the number of points of sale increased by more than 50,000 from December 2014 to December 2022, in addition to more than 700,000 private electronic points of sale owned by companies that facilitate electronic payment services. With over 4.5K branches across the nation, the Egyptian banking sector could grow at a rapid rate in the near future.
Suez Canal Bank is one such top performer in the Egyptian banking sector. Winner of Fastest Growing Corporate Banking Egypt 2023. Established in 1978, it is one of the oldest banks in the Egyptian private sector. It largely caters retail, corporate and investment banking services.
Suez Canal Bank recently reported a rise in its YoY net profit for the month of June 2023. This growth in profit is supported by an increase in net income from returns, fees and commissions. The bank has significantly improved its financial position from 2022, which is equally supported by an increase in deposits in 2023.
Article by Ujal Nair
