IMF: Egyptian Banks Foreign Assets at Highest Level Since 2020

The International Monetary Fund (IMF) has highlighted the resilience of Egypt’s banking sector in its fifth and sixth reviews of the country’s Extended Fund Facility program, noting strong asset growth and improved profitability.

According to the report, net foreign assets of Egyptian banks, which had declined since May 2024, rebounded by August 2025 to reach approximately $10.9 billion in October 2025, the highest level since 2020. This recovery was driven largely by robust inflows from non-resident investors into local-currency government debt instruments.

The IMF noted that banks’ total assets grew 24% year-on-year through June 2025, with investments in government securities surging 36%. The increase reflects both higher liquidity and confidence in sovereign instruments amid macroeconomic stabilization efforts.

Banks’ asset quality improved, with non-performing loans standing at just 2% by the end of September 2025. Return on assets rose to around 2.6%, supported by stronger net interest income and a modest decline in provisioning requirements.

The IMF also pointed to broader macroeconomic improvements, forecasting Egypt’s current account deficit to narrow to about 3.8% of GDP in 2025/26, bolstered by a stronger trade balance. The report noted that U.S. tariffs would have limited impact, given the relatively small share of U.S. exports in Egypt’s total shipments.