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Non-performing loans fell to 7.6% by end of June: CBE - Daily News Egypt

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Non-performing loans fell to 7.6% by end of June: CBE

CBE issued an important Financial Soundness Indicators report; loans to deposits ratio boosted to 41.4%


Non-performing loans at banks operating in the Egyptian market fell to around 7.6% of the total loan portfolio by the end of June, compared to 8.3% in March, according to the Central Bank of Egypt (CBE).

In a recent report prepared by CBE, and published exclusively by Daily News Egypt, banks operating in Egypt have allocated loans provisions to non-performing loans by about 98.7% of the total non-performing loans in June, compared to 98.3% in March.

The report indicated that the private sector accounted for 80.5% of the total loans granted by banks to their customers at the end of June, compared to 80.8% at the end of March.

According to CBE, Return on Average Assets of banks operating in the Egyptian market stabilised at around 1.3% during June, unchanged from March. Return on Average Equity stood at 18.9%, while Net Interest Margin remained unchanged at 3.7%.

Liquidity Ratio in Local Currency increased to 63.1% in June, compared to 62.1% in March, while the average liquidity in foreign currency fell to 49.7% in June from 50.8% in March.

CBE’s report pointed out that the Loans to Deposits ratio reached 41.4% in June compared to 41% in March, and total loans ratio to deposits in local currency slightly increased to 34.8% in June, compared to 34.5% in March. Loans to deposits ratio in foreign currencies has recorded 66.1% in June compared to 64.4% in March.

Deposits to Assets ratio in June amounted to 79.2%, versus 77.3% in March. Securities to assets portfolio boosted to 24.3% in June, compared to 23.2% in March.

With regard to Capital Adequacy, CBE revealed that Capital Base to Risk weighted assets remained unchanged in June from March at 13.5%. Tier 1 Capital to Risk-Weighted Assets increased to 11.5 % in June compared to 11.3% in March.

Common Equity to Risk-Weighted Assets amounted to 11.2% in June, compared to 11% in March, while Net Worth to Assets rose to about 6.8% in June, compared to 6.7% in March.

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