Egypt’s banking sector sees robust year-on-year growth

Releases from Egypt’s major banks for FY2015-16 indicate that the country’s banking sector has seen robust year-on-year growth amid a stable outlook from Fitch, Oxford Business Group says in its monthly report on Egypt. According to the report, Banque Misr and the National Bank of Egypt each reported year-on-year increases in net income after taxes. Meanwhile, foreign-owned banks, including Bank Audi and Abu Dhabi’s Union National Bank have announced plans to expand in Egypt. Government securities have also shored up local currency liquidity, OBG says: “Government bonds have made up a large share of bank’s assets in recent years, as the state has looked to finance its budget deficit by issuing debt in local currency. There are positive signs for banks in this, though planned fiscal tightening could lead to a tapering of bond assets available in the medium term, prompting banks to look for new places to park capital.”