Hisham Ezz Al-Arab: Non-performing loan coverage ratio reaches 340%, reflecting the financial strength of CIB
Hisham Ezz Al-Arab, Chief Executive Officer of the Commercial International Bank – Egypt (CIB), revealed that the bank achieved a non-performing loan (NPL) coverage ratio of 340% by the end of last year — a figure he described as exceptionally high compared to the regional banking average, which ranges between 90% and 130%.
In an interview with Al Arabiya Business on the sidelines of the IMF Annual Meetings, Ezz Al-Arab explained that this high level of provisioning raised some investors’ concerns about whether the bank was concealing potential risks. However, reviews conducted by the Central Bank of Egypt and external auditors confirmed that the bank had simply adopted a highly conservative policy during periods of economic uncertainty — a strategy that enabled CIB to navigate difficult phases with stability and resilience.
He added that the current phase is witnessing greater financial and monetary stability, reducing the need for such a high level of provisioning. The bank’s financial management is now adopting a more flexible model for handling loan loss reserves, in line with the noticeable improvement in macroeconomic indicators and the overall stability of the Egyptian banking sector.
