The Central Bank of Egypt's (CBE) Financial Stability Report says Egypt's banking sector shows a high degree of financial resilience and ability to withstand a range of shocks, at a time of heightened risks to global financial stability, particularly as geopolitical tensions escalate. This is backed by the CBE's continued adoption of appropriate supervisory and prudential measures in line with domestic and global economic and financial developments, and with the constantly evolving nature and sources of risk, including emerging risks.

The CBE also continues to strengthen banks' risk-management and governance frameworks and to monitor their performance closely, ensuring they keep complying with supervisory requirements and with international best practices and standards for financial soundness. This was reflected in improved financial soundness indicators for the banking sector during fiscal year 2025 and through March 2026. That strengthened the sector's ability to absorb shocks and continue its pivotal role in providing the financing the domestic economy needs — including the foreign currency needed to finance foreign trade — supported by the continued confidence of individual and institutional depositors in the banking sector, which helped reinforce financial stability and drive economic growth.

According to the report, the sector's total assets rose by 14.9% year on year to EGP 23.6 trillion in fiscal year 2025, reaching EGP 26.09 trillion in March 2026. The banking sector relies mainly on deposits as its source of funding; these stood at EGP 16.9 trillion in March 2026. Household deposits in local and foreign currencies accounted for 59.8% of total deposits, providing the sector with a stable source of funding.

The portfolio of loans and credit facilities extended to customers grew by 22.7% to EGP 10.4 trillion at the end of fiscal year 2025, reaching EGP 11.4 trillion in March 2026. Loans to the private sector made up 40.5% of total customer loans in March 2026. Within the consumer loan portfolio, personal loans held the largest share, at 76.1% in March 2026.

The report noted that the ratio of non-performing loans to total loans fell to 1.9% in fiscal year 2025 and in March 2026, while the sector continued to maintain high provisioning levels to cover those loans, supporting its ability to absorb expected credit losses. Local-currency loans also continued to account for the largest share of total loans, limiting the credit risk associated with exchange-rate fluctuations.