Banks operating in Egypt recorded EGP 35.882bn in net profits in 2015, according to the Central Bank of Egypt (CBE).
In a recent report issued by the CBE, these profits were achieved by private banks in the period between January and December 2015, and by public banks in the period between July and December 2015.
According to the CBE, the net interest obtained by these banks was recorded at EGP 65.789bn at the end of December 2015, while their net operating income amounted to EGP 88.75bn. The total expenses of banks reached EGP 52.868bn.
The CBE’s report, which was issued last week, also revealed other important financial soundness indicators.
Non-performing loans at banks operating in the Egyptian market fell to approximately 6.8% of total loans portfolios at the end of December 2015 compared to 7.2% in September 2015, according to the CBE.
Banks operating in Egypt allocated provisions to cover approximately 99% of total non-performing loans in December, a figure unchanged from September.
The loans-to-deposits ratio decreased slightly to 41.5% in December 2015 compared to 42% at the end of September. The total loans-to-deposits ration in local currency edged up to 35.5% in December 2015, compared to 35.2% in September.
The loans-to-deposits ration in foreign currency fell to 66.4% in December 2015 compared to 69.1% in September 2015.
The report indicated that the private sector obtained 76.4% of the total loans granted by banks to their customers at the end of December compared to 75.9% at the end of September 2015.
According to the CBE, the return on average assets of banks operating in the Egyptian market stabilised at approximately 1.3% in December 2015, unchanged from September. Return on average equity remained at 18.9% while the net interest margin also remained unchanged at 3.7%.
The liquidity ratio in local currency was reported to be at 59% in December compared to 59.6% in September. The average liquidity in foreign currency increased to 50.2% in December from 48.9% in September, the CBE reported.
The total securities-to-assets ratio increased to 24.1% in December compared to 23% in September 2015. The deposits-to-assets ratio increased slightly to 77.1% in December, compared to 76.7% in September.
With regards to capital adequacy, the CBE revealed that the ratio of capital base to risk-weighted assets increased to 13.7% in December, compared to 13.2% in September.
The CBE reported added that the tier 1 capital to risk-weighted assets increased to 11.7% in December, compared to 11.3% in September. The common equity of risk-weighted assets ratio amounted to 11.4% in December compared to 11% in September 2015.