The CBE has reportedly fined FAB Misr and other lenders over loans to Beltone Holding; Beltone denies wrongdoing. Asharq Business reported that the Central Bank of Egypt 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 FAB Misr was handed a fine of EGP 1 bn, while at least two other banks, including NBK Egypt, were fined smaller amounts. It also reported that the regulator ordered the transfer of a top credit officer at FAB Misr.

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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 FAB Misr 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 yesterday. 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 yesterday pointed to the size of the reported fine as sending a message to the industry. The ten-figure sum would equal nearly 4% of FAB Misr’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.

BACKGROUND- Banks in Egypt are rarely able to lend directly to holding companies, reflecting the CBE’s view that holdcos should only be allowed to borrow when they’re immediately on-lending the funds to subsidiaries with identifiable, auditable operating cashflows. Beltone has been in the headlines in recent years for its rapid growth and two record capital increases (one each in 2023 and 2025) on the EGX that saw it raise more than EGP 20 bn to fuel its growth.

Beltone shares closed down 1.3% yesterday at EGP 3.09 apiece on the EGX. FAB’s ADX-listed shares were up 1.2% at Wednesday’s close.

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