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Sunday, 15 January 2017

Banking sector seen growing in the next five years, supported by many positive factors

The Hopes and Fears of the Egyptian Banking Sector

The floatation of the EGP does not come without risks for the banking sector, but there are many fundamentals and positive factors to support the sector’s growth over the coming five years: improved USD liquidity, a pickup in lending, and higher non-interest income. Pharos has upgraded its valuations for CIB, Credit Agricole Egypt, and the Housing and Development Bank and maintained its ‘Overweight’ rating on the stocks. A research note says that the banking sector was one of Egypt’s top performing in the last decade and the it will continue to be “the proxy for the macroeconomic transformation story in Egypt” and will “deliver return on equity north of 20%” over the next five years. Tap here to read the full note.

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WTI: USD 52.37 (-1.21%)
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Natural Gas (Nymex, futures prices) USD 3.42 MMBtu, (+0.97%, February 2017 contract)
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MSM: 5,762.48 (-0.58%) (YTD: -0.35%)
BB: 1,211.73 (+0.24%) (YTD: -0.71%)

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