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Banks operating in Egypt record EGP 56bn net profits in 2016: CBE The Egyptian banking sector is powerful and capable of overcoming the effects of the flotation of the pound, with capital adequacy of 14.9%, Negm says
Banks operating in Egypt recorded EGP 35.882bn in net profits in 2016, with an increase of 60% over 2015, according to deputy governor of the Central Bank of Egypt (CBE) Gamal Negm. He said, in an statement issued on Tuesday, that the CBE continues to follow up on the effects of its recent decision to liberate the Egyptian pound exchange rate on the financial statements of the banks, adding that the Egyptian banking sector showed strength and great ability to absorb the negative effects of the decision, as well as maintain its outstanding performance. Negm announced that the capital adequacy of banks recorded 14.9% compared to the minimum rate of 10.625%. In addition, the Egyptian banking sector has high liquidity which allows the funding of various economic activities and offers financial intermediation, ensuring that banks can achieve the targeted economic growth rates. According to a report isued by the CBE, of which Daily News Egypt obtained a copy, the banks operating in the Egyptian market achieved net profits worth EGP 30.143bn during the period from January-September 2016 for private banks, and from July-September 2016 for government banks. The report pointed out that the five largest banks working in Egypt have acquired about EGP 12.362bn in profits, roughly 44.32% of the total profits, while the 10 largest banks have achieved net profits worth EGP 19.953bn, which is equivalent to 66.19% of the total profits made by banks. According to the CBE, total revenues achieved by banks working in Egypt until the end of September 2016 reached EGP 54.973bn. The share of the largest 10 banks reached EGP 35.641bn, equivalent to 64.83%. The share of the five largest banks reached EGP 24.064bn, equivalent to 43.77% of total aggregated bank revenues. The CBE added that the revenues of bank activities reached EGP 71.411bn until the end of September 2016. The largest 10 banks acquired EGP 44.545bn, equivalent to 62.378% of total revenues of bank activities. The share of the five largest banks reached EGP 29.992bn, equivalent to 42%. On the other hand, the banks' expenditures reached about EGP 41.268bn until the end of September 2016, of which about EGP 16.63bn was spent by the five largest banks in the country, and about EGP 24.592bn spent by the largest 10 banks.
