Elevated oil prices continue to weigh on global economic growth despite the recovery in supply levels close to pre-war conditions.
Inflationary pressures are intensifying, prompting the U.S. Federal Reserve to raise interest rates by 25 basis points, while bond markets have come under significant pressure and U.S.
Treasury yields have climbed to their highest levels since 2008.
Against this backdrop, the Central Bank of Egypt (CBE) opted to keep corridor rates unchanged, citing contained inflation dynamics and a favorable outlook for domestic price stability.
This decision was supported by relatively low month-on-month inflation readings and a comfortable positive real interest rate buffer, despite the elevated external inflationary risks. Key sectors of the Egyptian economy, including tourism, Suez Canal activities, and workers’ remittances, have played a vital role in mitigating the impact of regional tensions on foreign exchange markets. The Egyptian pound has maintained relative flexibility against major currencies without experiencing a significant devaluation, despite volatility in foreign portfolio flows.
This resilience has been further supported by the continued strengthening of Egypt’s foreign currency position, with both international reserves and net foreign assets reaching record-high levels.
QNB Egypt delivered another period of strong growth, with total assets exceeding EGP 1.13 trillion, up
22% YTD, supported by a 22% increase in customer deposits, reinforcing the Bank’s leading market
position and strong funding base.
Loans and advances grew 19% to EGP 556 billion, while asset quality remained resilient, with an NPL
ratio of 3.72% and a coverage ratio of 125.1%.
Profitability remained robust, with net profit increasing 26% YoY to EGP 28.1 billion, driven by 23%
growth in net interest income and 25% growth in net banking income. Despite inflationary and cost
pressures, the Bank maintained strong operating efficiency, reporting a cost-to-income ratio of 18.8%.