CBE: Banks Net Profits Touch EGP 30 Bln in Q1

The profits of Egyptian banks touched the level of EGP 30 billion during the first quarter of this year, according to data issued by the Central Bank of Egypt (CBE).

The net income amounted to 94.401 EGP billion, while the net revenues recorded EGP 117.29 billion, and expenses recorded EGP 87.305 billion.

CBE indicated that the 10 largest local banks acquired more than 88% of the profit achieved by the sector in the first quarter with profits amounting to EGP 26.347 billion, and their share of the net return amounted to 83.03%, with a value of more than EGP 78.38 billion.

The top 10 Egyptian market banks achieved EGP 97.381 billion in net revenues for the first quarter, while expenses amounted to EGP 71.034 billion.

The profits of the five largest banks recorded a level of EGP 23.023 billion, and their net returns amounted to EGP 70.856 billion. The banks achieved revenues by about EGP 88.378 billion, and their expenses amounted to EGP 65.355 billion.

The banks are classified into the top 10 and the top 5 according to the size of assets at the end of the data period. It includes the National Bank of Egypt (NBE), Banque Misr, Banque du Caire, Commercial International Bank (CIB), Arab African International Bank (AAIB), Qatar National Bank (QNB), SAIB Bank and First Abu Dhabi Bank.

A report by EFG Hermes had indicated that the total profits of listed banks in Egypt grew by 10% on an annual basis during Q1 of 2021, which reflects the weak growth trend witnessed in 2020, when banks were forced to support provisions for loan losses last year amid concerns about bad loans linked to the pandemic.

The report indicated that the profits of eight listed banks grew by 3% on a quarterly basis during the first quarter of this year, as the rise in net interest income driven by high credit volumes compensated for the low interest rates set by the Central Bank, and would also result in a diminished need for provision loan losses as the economy recovers from the pandemic.

The cost of risk is expected to drop to 130 basis points in Q1 of 2021, from 198 basis points in Q4 of 2020.