Back to the complete issue
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.


WTI: USD 52.37 (-1.21%)
Brent: USD 55.45 (-1.00%)
Natural Gas (Nymex, futures prices) USD 3.42 MMBtu, (+0.97%, February 2017 contract)
Gold: USD 1,196.20 / troy ounce (-0.30%)

TASI: 6,921.77 (+0.39%) (YTD: -4.00%)
ADX: 4,681.28 (+0.40%) (YTD: +2.97%)
DFM: 3,720.59 (-0.03%) (YTD: +5.37%)
KSE Weighted Index: 392.06 (+0.33%) (YTD: +3.15%)
QE: 10,709.47 (+0.05%) (YTD: +2.61%)
MSM: 5,762.48 (-0.58%) (YTD: -0.35%)
BB: 1,211.73 (+0.24%) (YTD: -0.71%)

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.