Although the regional conflict has eased, it remains unresolved and continues to influence global financial markets. Despite these challenges, Egypt has demonstrated considerable economic resilience. The effective policy response by the Central Bank of Egypt and the Ministry of Finance helped mitigate the impact of regional geopolitical developments, limiting the disruptions to the domestic financial market. The Egyptian pound is steadily recovering against major currencies, while interest rates are gradually easing as investor demand for local sovereign debt improves. This positive trend is being supported by lower global energy prices and the gradual normalization of Suez Canal traffic. Assuming the geopolitical environment remains contained, we remain cautiously optimistic regarding the outlook for the Egyptian economy and financial markets over the coming two quarters.
QNB Egypt continued to build on its solid business model while enhancing its profitability metrics. The bank’s balance sheet grew by 16% YTD, reaching EGP 1.08 trillion, primarily driven by 17% YTD growth in deposits.
Loan growth remained solid, rising by 13% to EGP 526 billion, reflecting the bank’s expanding lending activity across both retail and corporate segments. The non-performing loan ratio settled at 3.96%, while the total coverage ratio reached 120.3% demonstrating the bank’s prudent credit risk management.
QNB Egypt delivered a robust financial performance, reporting net profit of EGP 18.6 billion, up 23% year-on-year. Earnings growth was supported by a 23% increase in net interest income and a 23% expansion in net banking income. The bank continued to demonstrate strong operational efficiency, maintaining a cost-to-income ratio of 18.7%. Notably, these results were achieved despite continued exchange-rate pressures during most of the quarter, highlighting the resilience of the bank's business model and earnings-generating capacity.
