Banks operating in Egypt posted net profit of EGP373.1bn ($7.2bn) in the first half of 2026, up 35.7% from EGP274.9bn a year earlier, according to Central Bank of Egypt data.

Profitability remains heavily concentrated among the country’s biggest lenders. The 10 largest banks generated EGP303.9bn, or 81.5% of sector profits, while the five largest accounted for EGP261.7bn, or 70.1%, up from 64.6% a year earlier.

Net interest income reached EGP567.9bn, while net operating income was EGP795bn and expenses were EGP421.9bn. Return on average equity stood at 33.9% in June, unchanged from March but down from 39% in December 2025, while return on average assets was 2.6% and the sector’s net interest margin 5.2%.

The earnings came against a still-restrictive monetary backdrop. The CBE cut its overnight deposit and lending rates by 100 basis points in February to 19% and 20%, respectively, and kept them unchanged at its September 24 meeting.

Annual urban headline inflation stood at 14.5% in August, below July’s 14.9% but above 11.9% in January, while core inflation rose from 14.3% in June to 14.9% in August. The CBE expects inflation to ease towards its 7% target, plus or minus two percentage points, in the second half of 2027, while the IMF projects headline inflation to average 16.7% in the second half of 2026 before moderating.

Government securities remain a significant part of bank balance sheets. Securities and Treasury bills accounted for about 32% of banking-sector assets at the end of March 2026, while private-sector borrowers received 40.5% of total lending, as IntelliNews reported.

In the staff report for its Seventh Review, published as Country Report 26/224, the IMF said Egypt’s banking system remained well capitalised, liquid and profitable, with a system-wide capital adequacy ratio of 19.3% at the end of 2025. It nevertheless warned that banks’ elevated sovereign exposure creates potential valuation, liquidity and rollover risks during periods of market stress.

Egypt’s banking system is dominated by state-owned lenders. A FirstBank ranking of 33 banks based on standalone March 2026 financial statements put National Bank of Egypt at 35.21% of total banking-sector assets, Banque Misr at 16.31% and Commercial International Bank (EGX:COMI) at 5.81%. Arab African International Bank ranked fourth and QNB Egypt (EGX:QNBE) fifth.

The profit surge was also broad among listed lenders. The five largest EGX-listed banks by standalone assets — Commercial International Bank (EGX:COMI), QNB Egypt (EGX:QNBE), Abu Dhabi Islamic Bank Egypt (EGX:ADIB), Suez Canal Bank (EGX:CANA) and Faisal Islamic Bank of Egypt (EGX:FAIT) — generated combined first-half net profit of about EGP71.9bn, with all five recording double-digit year-on-year growth. CIB contributed about EGP39.3bn, up 17.9%.

CIB also recorded strong balance-sheet growth, with deposits reaching EGP1.30 trillion and gross loans EGP680bn at the end of June.