Good afternoon, friends, and welcome to the homestretch. It’s a calm day in the press, with few but impactful headlines making the rounds.

THE BIG STORY TODAY-

📍The CBE has reportedly fined FABMisr and other lenders over loans to Beltone Holding; Beltone denies wrongdoing. Asharq Business reported today that the Central Bank of Egypt (CBE) has imposed fines on at least three Egyptian lenders for alleged violations of banking regulations related to loans made to Beltone Holding. The website says FABMisr was handed a fine of EGP 1 bn, while other banks, including NBK Egypt, were fined smaller amounts. It also reported that the regulator ordered the dismissal of a top credit officer at FABMisr.

If confirmed, the EGP 1 bn fine would be the largest ever imposed on a bank in Egypt. The CBE has not issued a statement on the matter, while FABMisr responded briefly to Asharq Business, saying it complies with the laws and regulations of the central bank and can’t comment on matters related to its clients.

Beltone says it hasn’t been contacted by the CBE and that it has done nothing wrong. All of its dealings with banks in Egypt comply with CBE regulations, it said in a statement to the Egyptian Exchange (pdf) after the bourse briefly suspended trading of the financial services company’s shares this morning. Beltone added that its “financial position is sound” and that it “continues to meet all its obligations toward financial institutions in a timely manner.”

Bankers we spoke with today pointed to the size of the reported fine as sending a message to the industry. The ten-figure fine would equal nearly 4% of FABMisr’s 2024 net income of EGP 26.3 bn. Market watchers believe the episode highlights the CBE’s renewed scrutiny of credit governance as banks go back to lending amid Egypt’s ongoing monetary-policy easing cycle.

Beltone shares closed down 1.3% today at EGP 3.09 apiece.

THE BIG STORY ABROAD-

🌐 All eyes are back on Gaza after Israel launched its deadliest attack on the enclave since the US-brokered ceasefire agreement was signed. At least 104 Palestinians, including at least 35 children, were killed, and over 200 others were injured. The strike came after Israel accused Hamas of allegedly violating the ceasefire agreement and killing an Israeli soldier. Hamas promptly denied any connection to the incident and reaffirmed its commitment to the agreement. Earlier today, Israel claimed that the ceasefire has been reinstated.

US President Donald Trump defended the attack, noting that the occupying state had a right to “hit back.” Simultaneously, the US president expressed confidence that the ceasefire would hold regardless. “You have to understand Hamas is a very small part of peace in the Middle East, and they have to behave,” he said. Since the ceasefire came into effect, Israel has violated its terms at least 47 times as of 18 October. (Guardian | Bloomberg | BBC | CNN | Reuters)

☀️ TOMORROW’S WEATHER- We’re in for a mild day in Cairo tomorrow, with temperatures set to peak at 30°C before dropping to 20°C, according to our favorite weather app. If you’ve missed the breeze, we should be getting some tomorrow.

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