The Covid-19 pandemic pushed banks in many countries to shut down branches worldwide, but not everywhere. The biggest banks in Egypt have indeed increased their footprint, according to The Banker Database.
National Bank of Egypt saw an increase from 419 to 562 branches between 2017 and 2021. Over the same period, Banque Misr reached 739 from 564 branches while Commercial International Bank reached 215 from 196 locations.
The volume of the Egyptian banking sector’s combined assets increased from E£4.587trn ($153bn) to E£10.511trn, achieving a growth rate of 130%, according to a statement by The Union of Arab Banks.
Such performance is in contrast with the crisis the country’s economy is facing. The Egyptian pound has lost almost half its value against the dollar in less than a year, while inflation is running at more than 20%. The Arab country has been shut out of international financial markets and has sought an international monetary fund bailout. Its economy has been hit by the headwinds of Russia’s invasion of Ukraine, which drove energy and food prices higher and triggered capital flight from Egypt.
Despite the situation, Egyptian banks’ regulatory capital ratios can withstand further depreciation of the pound because they are supported by healthy internal capital generation, Fitch Ratings says.
