The Egyptian market has witnessed a limited decline in interest rates during the past week, despite the Central Bank of Egypt’s (CBE) 24 September decision to reduce its basic rates by 0.5%.
The slight downturn reported in government debt instrument returns, and some saving vessels available at certain banks operating in the local market.
Following the CBE decision, the interest rates on variable-return certificates and some loan products whose pricing is connected to the basic interest rates automatically decreased.
In the Egyptian market, about 29 variable-return certificates have been issued by 24 banks, in addition to a large number of variable-return loan products.
This comes as the National Bank of Egypt (NBE) decided to keep the interest rate for its three-year Platinum saving certificate unchanged at 12.25% for returns disbursed quarterly and 12% for returns disbursed monthly.
Banque Misr has also decided to maintain the monthly paid return on its three-year AlQimma certificate at 12%. The bank has only reduced the interest rates on vessels linked with CBE corridor rate, including the day-to-day accounts.
Moreover, the Agricultural Bank of Egypt (ABE) decided to keep the interest on all its saving vessels unchanged, settling its three-year Hassad certificate’s monthly return at 12%, and 8% interest on saving accounts.
Similarly, the Nasser Social Bank (NSB) decided to maintain the return on Rad El Gemeel certificate for the elderly at 13% annually, 12.50% for quarterly return, and 12.25% for monthly return.
The NSB has also decided to keep all its three-year certificates’ interest at 12.75% for annual dispersal, 12.25% for the quarterly return, and 12% for the monthly return.
At the Export Development Bank of Egypt (EBE), the return on certificates and current accounts was reduced by 0.5%. At the same time, the bank decided to keep the saving account interests unchanged.
Also, the Suez Canal Bank (SCB) decided to reduce interest by 0.5% for saving and deposit accounts. However, it kept the interest for the three-year certificates with fixed return unchanged at 11% monthly, 11.25% for the quarterly return, and 11.5% for the annual return.
The National Bank of Kuwait (NBK) is to reduce the interest by between 1% to 1.25% on its three-year fixed return certificate, which now stands at 10% for the monthly return, and 10.25% for the quarterly return.
The bank also decided to reduce the interest by 0.5% on the savings account, to reach 3.5% annually.
Additionally, Bank Audi Egypt will reduce interest on its three-year fixed return certificate by 1%, reaching 9% for the monthly return, and 9.25% for the quarterly return.
It has also decided to reduce the interests on saving and deposit accounts in varying percentages from one segment to another, according to the account’s value.
HSBC Egypt will also reduce interest rates by 1% on the three-year fixed return saving certificate to 11% for the monthly return.
Meanwhile, the returns on debt instruments have witnessed a limited decline, bringing the average return on the 91-day treasury bills (T-bills) to 13.152%. At the same time, the highest return reached 13.281%, and the lowest return was 12.001%.
Moreover, the average yield on 273-day T-bills was 13.336%, with the highest yield coming in at 13.44%, and the lowest return was 13.05%. The average yield for 182-day T-bills was 13.381%, with the highest return reported at 13.429%, and the lowest yield at 13.001%.
The return on the 357-day T-bills averaged 13.459%, with the highest yield reported 13.5%, and the lowest return at 13%.
At the same time, the yield on three-year treasury bonds (T-bonds) averaged 14.381%, with the highest yield at 14.42%, and the lowest yield at 14.24%. The seven-year T-bond yield averaged 14.545%, with the highest yield at 14.62%, and the lowest yield at 14.2%.
The 15-year T-bonds yield averaged 15.32%, with the highest yield reported at 15.34%, and the lowest yield was 15.2%.