At its previous meeting on 2 April, the committee decided to maintain the overnight deposit rate at 19%, the overnight lending rate at 20%, and both the credit and discount rate and the main operation rate at 19.5%.

In its accompanying statement, the MPC said the decision reflected an assessment of recent inflation developments and outlooks, noting that the path towards achieving its inflation target of 7% (±2%) by the fourth quarter of 2026 faced increasing upside risks. These included the possibility of prolonged regional conflict and stronger-than-expected impacts from fiscal adjustment measures.

Earlier this month, the Central Bank of Egypt reported that monthly core inflation, measured by the bank, slowed to 1.1% in April 2026 from 2% in March, while annual core inflation eased to 13.8% from 14%.

The monthly headline urban consumer price index, published by the Central Agency for Public Mobilization and Statistics (CAPMAS), also rose 1.1% in April, compared with 3.2% in March, while annual urban inflation slowed to 14.9% from 15.2%.

Cautious hold

Mohamed Abdel Aal, a banking expert, said the upcoming MPC meeting comes amid broad debate over the future trajectory of interest rates following a period of sharp regional and international volatility that temporarily reignited inflation concerns before price indicators resumed easing at a faster pace than many analysts had expected.

Abdel Aal said that while some observers believe the central bank could return to raising rates in response to escalating geopolitical risks and higher inflation forecasts in its latest reports, a deeper assessment of economic and monetary indicators suggests that maintaining rates unchanged remains the more likely scenario, alongside a temporary pause in the easing cycle.

“In the current phase, the central bank may prefer a ‘cautious hold’ rather than a return to monetary tightening,” he said.

“At first glance, the latest monetary policy report appears more hawkish after the central bank raised its average inflation forecasts to 16% in 2026 and 12% in 2027, compared with significantly lower earlier estimates,” Abdel Aal added. “The report also highlighted persistent upside risks linked to regional conflict, energy prices, shipping disruptions and the possibility of tighter global financial conditions.”

However, he argued that these factors alone are insufficient to justify another rate increase for three main reasons.

“The first is that the central bank raised expectations, not current realities; and that distinction is important,” he said. “The latest report did not suggest inflation had spiralled out of control, but rather that upside risks could materialise if external shocks persist.”

He noted that recent data showed annual headline inflation slowing to 14.9% and core inflation easing to 13.8%, alongside a clear moderation in monthly inflation readings, indicating that actual inflationary pressures remain less severe than precautionary scenarios imply.

According to Abdel Aal, the second factor is the reassuring signal from core inflation.

“Headline inflation can be affected by temporary factors such as food, energy, transport costs and geopolitical shocks, whereas core inflation – which excludes the most volatile components – is viewed as the clearest measure of entrenched inflationary pressures,” he said.

He added that the decline in monthly core inflation from 2% to 1.1%, and annual core inflation from 14% to 13.8%, suggests Egypt has not yet entered a phase of deeply entrenched inflation, while the transmission of external shocks into broader prices remains relatively contained.

The third factor, he said, is that Egypt’s current monetary policy stance is already highly restrictive.

“Real interest rates in Egypt have become clearly elevated relative to current and expected inflation, particularly after inflation slowed in recent months,” Abdel Aal said. “In addition, the effects of previous tightening cycles have not yet fully materialised due to the lag in monetary policy transmission.”

He explained that the impact of higher interest rates emerges gradually over time and is already reflected in weaker demand, slower consumer credit growth, subdued private-sector activity and a decline in the purchasing managers’ index (PMI), indicating softer domestic demand and reducing the need for further tightening.

Abdel Aal also stressed that the Central Bank of Egypt no longer relies solely on official rate adjustments to absorb liquidity and tighten monetary conditions.

He noted that the central bank has increasingly allowed state-owned and private banks to issue high-yield savings products, helping absorb excess liquidity, support pound-denominated savings, curb dollarisation and speculation, and strengthen the attractiveness of the local currency without direct rate hikes.

“As a result, the central bank has effectively achieved part of the tightening effect through indirect and more flexible savings instruments, at a lower cost to economic activity than repeated official rate increases,” he said.

Despite the recent moderation in inflation, Abdel Aal believes the central bank is unlikely to rush into resuming rate cuts given ongoing external risks.

“The war has not fully ended, foreign portfolio flows remain vulnerable to volatility, and even the US Federal Reserve has not shifted decisively towards easing,” he said. “Cutting rates now could signal greater tolerance for inflation, potentially placing pressure on the exchange rate and affecting foreign inflows.”

He therefore sees the most probable outcome as a “cautious hold”, rather than either renewed tightening or a rapid return to easing.

Abdel Aal also suggested that the central bank could extend the timeframe for achieving its inflation targets.

“This is a significant possibility and perhaps one of the most likely developments in the coming period,” he said. “Given geopolitical shocks, energy price volatility and global economic conditions, the central bank may move towards extending the timeline for achieving inflation targets without materially changing the targets themselves.”

“In light of these factors, current policy appears closer to carefully balancing inflation control with preserving growth and monetary stability,” he added. “Accordingly, the MPC may conclude that maintaining existing monetary conditions is sufficient at this stage.”

Monetary balance and banking sector stability

Shaimaa Wagieh, a banking expert, also expects the Central Bank of Egypt to keep rates unchanged, viewing such a decision as part of a strategy aimed at preserving monetary balance and banking sector stability amid persistent global inflationary pressures and uncertainty in international markets.

Wagieh said maintaining rates reflects an approach based on evaluating the cumulative impact of previous tightening cycles, which raised yields and strengthened the attractiveness of savings products while supporting liquidity stability within the banking sector.

She added that stable rates provide banks with greater flexibility in managing funding costs, particularly following increases in the cost of deposits and savings certificates, which directly affect lending costs and financing conditions.

“The hold also reflects monetary policy’s commitment to balancing inflation control with avoiding additional financing burdens on different economic sectors,” she said, noting that further increases could raise borrowing costs for companies and productive sectors, weighing on expansion, investment and credit demand.

From a banking perspective, Wagieh said stable interest rates support banks’ ability to restructure credit portfolios and manage assets and liabilities more efficiently. They also help preserve money market stability and enable financial institutions to plan cash flows more effectively amid continued challenges linked to exchange rates, global markets and energy prices.

She added that maintaining current yield levels supports the attractiveness of local debt instruments without increasing borrowing costs for the state budget.

According to Wagieh, the current phase remains focused on balancing monetary stability with support for economic activity, while preserving the resilience of the banking sector and its ability to finance different segments of the economy.

Economic developments and geopolitical pressures

Meanwhile, the research department at HC Securities and Investment expects the CBE to leave rates unchanged, citing recent macroeconomic developments and geopolitical risks.

Heba Mounir, the company’s macroeconomics analyst, said regional tensions linked to the US-Israeli war against Iran continue to affect both the global economy and Egypt, although Egypt’s external position and exchange-rate flexibility have helped absorb the impact so far.

“Despite foreign investors withdrawing around $3.2bn in hot money from Egypt’s secondary treasury market between 19 February and the end of April, net foreign reserves increased by a combined $263m during March and April to reach a record $53bn in April,” she said.

At the same time, deposits excluded from official reserves declined by $2.6bn over the same period to $10.8bn, while the banking sector’s net foreign assets fell to $21.3bn in March, largely reflecting foreign outflows from treasury instruments.

This contributed to an approximately 10% depreciation in the Egyptian pound since the start of the year, reaching EGP 52.9 against the US dollar by 15 May, reflecting exchange-rate flexibility.

Mounir also highlighted domestic inflationary pressures, including a roughly 19% increase in diesel, butane gas cylinder and petrol prices in March, followed by higher industrial natural gas prices in May and a 5% increase in wheat prices to $244 per tonne.

“These developments are adding pressure to foreign currency liquidity and, in our view, will contribute to higher inflationary pressures,” she said.

To ease pressure on the local currency and absorb liquidity, several state-owned banks introduced new three-year certificates with yields raised by around 1.25 percentage points to an average of 17.25%, prompting some private banks to offer similar products.

“This represents indirect tightening that could help contain inflationary pressures while supporting pensioners who depend on high-yield certificates,” she added.

Regarding treasury bill yields, Mounir said returns have generally moved higher to preserve attractiveness, with the latest 12-month treasury bill auction yielding 24.4%.

“This reflects a positive real interest rate of 4.57% based on our 12-month inflation estimate of 16%, after deducting a 15% tax for European and American investors,” she said.

“Accordingly, given geopolitical risks and their implications for Egypt’s foreign currency resources, our revised inflation forecasts, the need to preserve the attractiveness of treasury investments and fiscal deficit targets, we expect the MPC to keep rates unchanged tomorrow,” she added.

Inflation concerns remain

A Reuters poll also indicated expectations that the Central Bank of Egypt will leave overnight interest rates unchanged at Thursday’s meeting, amid continued concerns over inflationary pressures linked to the US-Israeli war against Iran.

Fifteen of sixteen economists surveyed expected the MPC to maintain the deposit rate at 19% and the lending rate at 20%, while only one forecast a 100-basis-point increase.

Abu Dhabi Commercial Bank (ADCB) said in a note that real interest rates, which remain elevated at around 5%, provide sufficient room to absorb higher near-term inflation expectations.

The bank added that the relative stability of the Egyptian pound in recent weeks, supported by temporary capital inflows, is likely to help anchor inflation expectations and limit imported inflation pressures.

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According to a presidential statement, the meeting assessed Egypt’s economic reform programme and the impact of regional conflicts on inflation, external balances, and capital flows. Inflation had eased from a peak of 38% to around 11% before the latest crisis, while net international reserves reached a record $53bn in April 2026.

The reserves are sufficient to cover approximately 6.3 months of imports and represent about 158% of Egypt’s short-term external debt, underscoring the country’s strengthened external position.

Governor Abdalla reaffirmed the central bank’s commitment to maintaining a flexible exchange rate policy to absorb external shocks and preserve stability. He also reviewed preparations for Egypt’s hosting of the 33rd annual meetings of the African Export-Import Bank (Afreximbank) in El Alamein this June, an event held under presidential patronage.

Abdalla noted that hosting Afreximbank reflects Egypt’s commitment to advancing African economic integration, expanding trade, and promoting sustainable development.

President Al-Sisi instructed officials to accelerate efforts toward fiscal sustainability, strengthen financial discipline, and improve debt management to free up resources for public services and human development. He also emphasized the importance of continuing to build reserves and contain inflation.

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Annual non-food inflation declined to 20.1% in April from 21.5% in March, helping drive the overall slowdown. In contrast, annual food inflation accelerated to 6.7%, compared with 5.8% a month earlier, largely due to an unfavourable base effect and a sharp increase in volatile food inflation to 26.2% from 15.9%, despite slower growth in core food prices.

On a monthly basis, urban headline inflation eased to 1.1% in April, compared with 3.2% in March and 1.3% in April 2025. The decline was mainly driven by lower food inflation, which recorded negative 0.7%, supported by falling core food prices and slower increases in volatile food items.

Monthly non-food inflation remained broadly stable, as higher inflation in services and retail goods partially offset slower growth in regulated prices. The moderation in regulated-price inflation reflected the absence of new price adjustments in April following fuel price hikes implemented in March.

Annual core inflation edged down to 13.8% in April from 14% in March, reflecting lower core food and retail inflation despite a slight increase in services inflation. Monthly core inflation also slowed to 1.1%, compared with 2% in March and 1.2% in April 2025.

Meanwhile, annual rural headline inflation remained largely unchanged at 12% in April, compared with 11.9% in March. Nationwide headline inflation—representing the weighted average of urban and rural inflation—stood at 13.4%, broadly stable from 13.5% in the previous month.

Main drivers of monthly inflation in April

Monthly food inflation registered negative 0.7%, subtracting 0.25 percentage points (p.p.) from headline inflation.

Volatile food prices rose by 2.9%, contributing 0.19 p.p. to monthly inflation, driven by increases in fresh fruit and vegetable prices of 4% and 2.3%, respectively, though both remained below seasonal trends.

Poultry and egg prices recorded notable declines of 14.7% and 2.9%, respectively, marking their first monthly drop since December 2025. The CBE said this likely reflected a reversal of seasonal pressures linked to Ramadan and holiday demand. Together, these categories reduced monthly headline inflation by 0.86 p.p.

Monthly non-food inflation reached 2.1%, contributing 1.3 p.p. to headline inflation, mainly due to higher services and retail prices.

Services inflation increased by 3.3%, adding 0.95 p.p. to monthly inflation, driven by higher rents, Hajj and Umrah travel costs, and increased spending at restaurants and cafés. The CBE noted that the latter may reflect second-round effects from recent fuel and commercial electricity price increases.

Retail inflation rose by 1.8%, contributing 0.25 p.p., supported by higher prices for clothing and footwear, household cleaning products, and personal care items.

Inflation in regulated items increased by 0.6%, contributing 0.14 p.p., following an average 23.8% rise in railway and metro fares.

Monthly core inflation stood at 1.1%, with core food reducing inflation by 0.61 p.p., while services and retail items contributed 1.32 p.p. and 0.36 p.p., respectively.

Main drivers of annual inflation

Despite lower monthly food inflation, annual food inflation accelerated to 6.7% in April, mainly due to base effects. Food prices contributed 2.64 p.p. to annual headline inflation.

Volatile food inflation surged to 26.2%, contributing 1.60 p.p., driven primarily by higher vegetable prices, partly offset by declining fruit prices.

Core food inflation increased by 3.4%, adding 1.04 p.p. to annual inflation, reflecting higher prices for beef, seafood, and dairy products despite declines in poultry and egg prices.

Annual non-food inflation eased to 20.1% in April but remained the largest contributor to overall inflation, accounting for 12.23 p.p. of headline inflation.

Services inflation climbed to 25.6%, contributing 6.95 p.p., driven by rising rents, private transport costs, restaurant spending, Hajj and Umrah travel, healthcare services, and personal care expenses.

Inflation in regulated items reached 15.1%, contributing 3.26 p.p., reflecting higher annual prices for tobacco, LPG, natural gas, petroleum fuels, public transportation, and medical products.

Retail inflation recorded 14.1%, contributing 2.02 p.p., supported by rising prices for clothing, household cleaning products, vehicles, engine oils, and personal care items.

Annual core inflation eased slightly to 13.8% from 14% in March. Services and retail categories remained the main contributors, accounting for 9.62 p.p. and 2.79 p.p., respectively, while core food contributed a modest 1.44 p.p. to annual core inflation.

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Total assets rose to EGP 183bn, supported by shareholders’ equity of EGP 21bn. The bank’s loans and credit facilities portfolio reached EGP 83.8bn, while customer deposits grew to EGP 147bn, underscoring strong balance sheet growth.

Aligned with the Central Bank of Egypt’s financial inclusion strategy, saib continues to expand its footprint, operating 46 branches nationwide and an ATM network of 168 machines as of March 2026.

Beyond financial performance, saib places corporate social responsibility at the core of its longterm strategy. Its initiatives support Egypt Vision 2030 across social, environmental, and economic dimensions, with a focus on economic empowerment, healthcare, education, and integration of people with disabilities.

The bank’s CSR programmes extend to improving living standards in informal settlements and underprivileged villages, while advancing sustainable development goals such as zero hunger, reduced inequalities, good health and wellbeing, and quality education.

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El Maghraby revealed that the bank’s net profit climbed 25% year-on-year to EGP 1.6bn in March 2026, compared to EGP 1.3bn in the same period of 2025.

He attributed the growth primarily to a 55% increase in net interest income, which rose to EGP 2.6bn, up from EGP 1.7bn in the corresponding period last year.

Suez Canal Bank’s total financial position expanded by 13% to EGP 306bn in March 2026, compared to EGP 270bn at the close of 2025. The growth was driven by a 10% increase in customer deposits, which reached EGP 229bn, up from EGP 209bn.

The bank also recorded continued expansion in its lending activity, with the net loans and facilities portfolio increasing 9% to EGP 133bn in March 2026, compared with EGP 122bn in 2025. Net corporate loans rose 8% to EGP 120.6bn from EGP 111.5bn.

According to El Maghraby, the growth in the financing portfolio was supported by diversified lending across key sectors, including agriculture, contracting, financial services, real estate and tourism. The diversified exposure contributed to broader risk distribution and an expanded customer base.

Meanwhile, the retail banking portfolio grew by 12% to EGP 12.7bn in March 2026, compared with EGP 11.4bn in 2025, reflecting the bank’s continued expansion in individual banking services and strengthening market presence in the retail segment.

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The bank’s pre-tax profit increased by 21%, supported by improved performance across several business segments, particularly retail banking, treasury operations, corporate lending and small and medium-sized enterprises (SMEs).

Net interest income grew by 10% to EGP 9.1bn during Q1 2026, up from EGP 8.3bn a year earlier. Meanwhile, net fees and commission income rose 11% to EGP 1.5bn, compared with EGP 1.4bn in Q1 2025.

Operating income climbed 13% to EGP 11.1bn in March 2026, compared with EGP 9.8bn during the same period last year. Administrative expenses increased by EGP 0.5bn, representing annual growth of 16%.

The bank’s total assets expanded by 9% to reach EGP 581bn in Q1 2026, compared with EGP 533bn in 2025.

Banque du Caire’s total loan portfolio grew 7% to EGP 276.4bn in Q1 2026, driven by lending expansion across multiple business segments.

Customer deposits also increased by EGP 27.4bn, or 7%, reaching EGP 428.8bn in March 2026, compared with EGP 401.4bn at the close of 2025.

Retail deposits accounted for 60% of total customer deposits, while corporate and institutional deposits represented the remaining 40%.

Asset quality indicators remained stable, with the non-performing loan (NPL) ratio standing at 3.8% of the total loan portfolio. The NPL coverage ratio reached 175%, supported by loan loss provisions amounting to EGP 18.4bn in Q1 2026.

The bank also maintained strong capital positions, with the Tier 1 capital ratio reaching 16.88% of risk-weighted assets, while the overall capital adequacy ratio stood at 20.48%.

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Attended by more than 100 local and international media representatives, both in person and virtually, the briefing highlighted preparations for AAM2026, expected participation levels and Egypt’s role as host of one of Africa’s leading annual forums focused on economic transformation and trade development.

In his remarks, Abdalla reaffirmed Egypt’s commitment to ensuring the successful hosting of AAM2026, underscoring the country’s longstanding partnership with Afreximbank in supporting African economic development, trade and investment.

“Egypt is honoured to host the 33rd Afreximbank Annual Meetings in Alamein, reflecting our continued commitment to supporting Africa’s economic integration, trade expansion and sustainable development,” Abdalla said.

He added that the meetings would provide a high-level platform for dialogue and the exchange of views on the future of African economic and financial cooperation.

“The meetings go beyond conventional discussions to advance key continental priorities, including trade finance, regional integration and the urgent need to reform the global financial architecture to better reflect the development needs of emerging economies,” he said.

For his part, Elombi expressed appreciation to Abdalla and Egyptian institutions involved in organising the event, praising their support and coordination efforts.

“Egypt and Afreximbank share a common vision to accelerate Africa’s economic development, industrialisation and broad-based prosperity across the continent,” Elombi said.

“AAM2026 will provide an important opportunity to strengthen partnerships, unlock investment opportunities and advance discussions on intra-African trade, Africa’s financial sovereignty and economic resilience in an increasingly complex global environment.”

Elombi added that Afreximbank’s annual meetings aim to identify priority projects and actionable programmes capable of accelerating the transformation of Africa’s trade infrastructure.

“Africa’s growth trajectory will be driven by industrialisation and intra-African trade, and achieving this will require substantial improvements in processing, logistics and, importantly, supportive government policies,” he said.

The briefing underscored the strategic partnership between Egypt and Afreximbank, while highlighting the bank’s support for sectors including financial services, trade, industrial infrastructure, manufacturing, oil and gas, telecommunications, power and construction.

Officials also outlined the potential economic benefits of Egypt hosting AAM2026, including strengthening the country’s position as a regional financial and business hub, supporting the meetings, incentives, conferences and exhibitions (MICE) industry, creating opportunities for Egyptian businesses and investors, and boosting tourism in Alamein.

Elombi revealed that Afreximbank has provided around $9.5 billion in financing to Egypt over the past three years. He also referred to the groundbreaking ceremony for the Afreximbank African Trade Centre (AATC) in the New Administrative Capital in December 2025, noting that the $250m project is expected to reinforce Egypt’s role as a regional hub for trade facilitation, payments, logistics and SME development.

He further highlighted plans for the proposed pan-African Gold Bank, an initiative intended to formalise Africa’s gold value chains, strengthen central bank reserves and reduce reliance on offshore refining and external trading centres.

Over the years, Afreximbank’s Annual Meetings have evolved into one of the continent’s leading platforms for shaping dialogue on Africa’s economic future and promoting intra-African trade. The 33rd edition is expected to bring together heads of state, government ministers, central bank governors, business leaders, academics, entrepreneurs, investors and development partners to discuss the issues shaping Africa’s economic outlook and trade agenda.

The AAM2026 programme will feature policy discussions, plenary sessions, investment and business forums, deal-signing ceremonies, major announcements, networking events, bilateral meetings and discussions centred on intra-African trade and the African Continental Free Trade Area (AfCFTA). Sessions will also address trade finance, industrialisation, energy, infrastructure and digital transformation.

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The financial plan was outlined during a board of directors meeting at the bank’s headquarters, chaired by Maya Morsy, Minister of Social Solidarity and Chairperson of the bank, alongside Vice Chairperson Waleed El-Nahas.

Morsy stated that the budget relies on strategic pillars, primarily enhancing social responsibility by supporting the most vulnerable groups as part of the bank’s core identity. It targets economic empowerment through expanded retail banking and financing for small and micro-enterprises, alongside accelerating digital transformation by upgrading information technology systems to match developments in the Egyptian banking market.

The draft budget aligns with the state’s general budget framework, Morsy added, adhering to principles of comprehensiveness, transparency, and the full disclosure of available resources. It also emphasises rationalising expenditure to ensure effectiveness without compromising the bank’s socioeconomic responsibilities.

During the meeting, the board reviewed findings from the audit, investment, and social committees. Morsy noted these committees are preparing a strategic plan to widen the bank’s social solidarity umbrella, targeting those most in need to improve their quality of life and alleviate living burdens.

Vice Chairman El-Nahas presented a summary of the financial indicators and the bank’s financial position for the third quarter of FY 2025/26, ending on 31 March 2026.

El-Nahas stated that investments witnessed a notable surge, driven by a strategic vision to expand financial and social services alongside development funding tools. The bank’s investments are diversified across the stock market, securities portfolios, mutual funds, and direct investment.

He affirmed that the bank directs returns from its investment sector to support social solidarity programmes and vulnerable families. Special attention is given to female breadwinners through accessible financing for sustainable small projects, a strategy El-Nahas said converts investment returns into a tool for sustainable economic stability and social impact.

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The bank said it delivered resilient financial results despite an increasingly uncertain global environment during the quarter.

CIB noted that escalating regional tensions linked to the prolonged US-Iran conflict fuelled renewed global inflationary pressures, prompting central banks worldwide to pause monetary easing plans. The impact extended to Egypt, where the Central Bank of Egypt (CBE) suspended the anticipated cycle of policy rate cuts initiated last year, prioritising inflation control.

Meanwhile, the Egyptian pound depreciated by EGP 6.9 against the US dollar during the quarter, partly reflecting broader dollar strength against major currencies. CIB described the movement as evidence of the flexibility and shock-absorbing capacity of Egypt’s current exchange rate regime.

Amid these developments, S&P Global Ratings maintained Egypt’s sovereign credit rating at “B” with a stable outlook.

Against this backdrop, CIB recorded strong growth in both revenue and profitability. Consolidated revenue rose 15% year-on-year to EGP 31.2bn, while net profit increased 7% to EGP 17.8bn.

The performance was supported by robust balance sheet expansion in both local and foreign currencies, while net interest margin remained resilient at 8.88%, declining only 24 basis points year-on-year despite cumulative local policy rate cuts of 825 basis points over the period.

CIB attributed this resilience partly to its funding structure, particularly the continued growth in low-cost current and savings accounts (CASA), which increased to 62% of total deposits from 56% a year earlier.

The bank also maintained strong profitability and capital metrics, recording a return on average equity (ROAE) of 31.9%, a capital adequacy ratio (CAR) of 26.9%, and a common equity tier 1 (CET1) ratio of 22.5%.

Balance sheet growth remained solid across key business segments.

In local currency terms, deposits increased by 5%, or EGP 33bn, from year-end 2025 levels, while local currency loans, including securitisation deals, rose by 7%, or EGP 32bn. This pushed the local currency loan-to-deposit ratio to a record 72%.

Foreign currency deposits rose by 2%, or USD 172m, while foreign currency loans grew at a faster pace of 8%, or USD 228m, lifting the foreign currency loan-to-deposit ratio to 34% from 32% at the end of 2025.

CIB said the growth aligned with management’s strategy to expand profitable foreign currency lending opportunities.

Loan growth during the quarter was primarily driven by institutional banking, where loans expanded by 8%, or EGP 41bn in real terms after excluding the impact of currency devaluation. The increase included EGP 27bn in capital expenditure financing.

Commenting on the outlook, management said the bank would continue prioritising balance sheet resilience and operational efficiency amid ongoing geopolitical and macroeconomic uncertainty.

“Management focus over the coming period will be directed more than ever towards healthy and sustainable balance sheet growth and shareholder return maximisation,” the bank said.

CIB added that it would continue focusing on sustainable commercial growth, stable liquidity sources, and adapting to a changing competitive landscape shaped by tighter liquidity conditions and the growing role of alternative investment products such as money market funds.

The bank said it remained confident in its ability to adapt to evolving market conditions while maintaining a long-term focus on sustainable profitability.

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The financing aims to add a new 70-bed capacity at Andalusia Hospital Maadi. The expansion will strengthen the hospital’s ability to provide more integrated healthcare services and meet growing demand for specialised medical care in line with international standards.

Hesham Okasha, CEO of Banque Misr, said the bank is committed to providing an integrated package of financing solutions that meet the needs of various sectors. He noted that the financing reflects the bank’s approach of directing resources toward sectors that directly address societal needs, foremost among them healthcare.

“We believe in the importance of supporting expansions and development within major medical institutions in a manner that enhances operational efficiency and elevates the quality of healthcare services provided to citizens, while ensuring the best added value for development projects, backed by specialised banking expertise capable of managing financing efficiently,” he added.

Hazem Zaqzouq, CEO, Vice Chairperson and Managing Director of Andalusia Health Group in Egypt and Saudi Arabia, said the group manages assets worth $1bn. He noted that the Andalusia Hospital Maadi expansion project is a practical model of the group’s ability to implement healthcare projects in complex operating environments. Despite logistical and operational challenges related to tight timelines and supply chain constraints, the group’s reliance on an integrated system covering planning, development and operation, supported by an investment-oriented mindset, enabled successful implementation.

Zaqzouq added that cooperation with Banque Misr reflects confidence in the group’s ability to manage challenges efficiently, stressing that the relationship goes beyond a credit facility to a partnership that supports operational expansion and keeps pace with growing demand for healthcare services in Egypt.

He further emphasized that the success of such projects depends on the operating model’s ability to balance financial planning with operational efficiency, a principle the group seeks to establish across its projects.

Banque Misr continues to cement its position as a key partner for major institutions by providing financing for development, healthcare, and investment projects in ways that support economic growth and the state’s comprehensive development plans.

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