Profits at Egypt’s biggest four lenders are on an upward trajectory, and economic forecasts suggest a healthy 2018. Danielle Myles reports.
In January Fitch upgraded its outlook for Egypt to ‘positive’ following a string of improvements over the past year. The rating agency credits the government for its progress implementing the national economic reform programme, and says the floatation of the Egyptian pound in late 2016 has proved a turning point for the economy.
Fitch expects growth to hit 4.8% this year, up from 4.2% in 2017, and a reduction in government debt. Egypt’s biggest four banks, all of which are local names, have also seen a steady uptick in profits over the past few years.
The country’s largest by assets and capital is National Bank of Egypt, which holds $3.3bn in Tier 1. It is followed by Banque Misr, which is backed by $2.2bn in Tier 1 capital and has been instrumental in funding small and medium-sized enterprises.
African Export Import Bank, or Afreximbank, is in third place with $1.6bn in capital. Established in 1993 by governments and private investors to promote inter-African trade, it has posted modest – but still improving – profits in recent years. Universal lender Arab African International Bank, or AAIB, rounds out the top four with $1.2bn in Tier 1.
All data sourced from www.thebankerdatabase.com
