Bank coverage and low financial inclusion
The banking sector in Egypt still has a long way to go to ensure the financial inclusion of the majority of its population. As of 2021, less than a third of the adult population in the country owned a bank or financial institution account. Serving the aforementioned adult population, the number of banks in the country fluctuated from 2010 onwards, reaching its highest in 2012 and 2013. Most recently, an aggregate of 37 banks provided their services to the Egyptian population. Interestingly, most of the held bank cards were prepaid and debit cards, with the number of credit cards in circulation being notably lower.A dominant role for the largest banks
According to the Central Bank of Egypt (CBE), the leading five financial institutions held a significant share of deposits. In fact, the main 10 banks covered around 78 percent of the total deposits in the banking sector, while the top five alone had a share of just over 70 percent. The National Bank of Egypt (NBE) was the leading bank in tier 1 capital and assets, while Banque Misr ranked second. In general, Commercial International Bank (CIB), QNB Al Ahli, Arab African International Bank, Banque du Caire, and HSBC Bank Egypt were among the most notable banks in the country.Most profitable banks and a low rate of online banking
As of December 2020, Banque Misr was the most profitable bank in Egypt in absolute terms. That year, the bank generated 1.5 billion U.S. dollars, while NBE reported a profit of close to 960 million U.S. dollars in June 2021. However, these banks registered a lower return on assets (ROA) than banks like the CIB, HSBC, and the Housing and Development Bank, which indicates that the latter earned more profit in relation to their assets. Banks in Egypt need to catch up in terms of online solutions. For example, online banking penetration in the country was only 11.65 percent in 2023.
