Banks Report Strong Q1 2024 Profits In Egypt Despite Economic Challenges
(MENAFN- Daily News Egypt) The Central bank of Egypt (CBE) reported that banks operating in the Egyptian market achieved net profits of approximately EGP 156.223bn in the first quarter (Q1) of 2024. In a recent report, the CBE highlighted that the net income of banks amounted to around EGP 184.728bn, with total activity revenues reaching EGP 249.075bn and total expenses recorded at EGP 92.852bn.
According to the CBE, the top ten banks captured around 79.72% of the total profits, amounting to approximately EGP 124.550bn. Meanwhile, the top five banks accounted for about 63.045% of the sector's profits, totalling EGP 98.491bn. Leading this group are the National Bank of Egypt, Banque Misr, Commercial International Bank, Banque du Caire, Faisal Islamic Bank of Egypt, and the Housing and Development Bank.
The report revealed that the net income of the top ten banks during the first quarter of this year was about EGP 138.030bn, with total activity revenues of EGP 188.230bn and total expenses of EGP 63.680bn. For the top five banks, the net income was approximately EGP 112.033bn, with total activity revenues of EGP 153.628bn and total expenses amounting to EGP 55.137bn in March 2024.
In the same context, the Central Bank reported that the return on average equity (ROAE) for banks operating in the local market surged to 32.2% in March 2024, up from 17.7% in December 2023. Additionally, the return on average assets (ROAA) increased to 2%, compared to 1.2%, and the net interest margin (NIM) rose to 5.2% from 3.8%.
The report also indicated that the ROAE for the top ten banks was 33.6%, with an ROAA of 2% and an NIM of 5%. For the top five banks, the ROAE was 33.1%, the ROAA was 1.8%, and the NIM reached 4.8%.
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