Egypt’s economy continued its recovery trajectory in the second quarter of 2025, supported by sustained stability in the local foreign exchange market. GDP grew by a solid 4.3%, up from 2.3% in the same quarter last year, driven by notable expansion across several sectors, a 35.4% YOY increase in private investment, and net foreign direct investment inflows of USD 6 billion. The Central Bank of Egypt initiated its monetary easing cycle, implementing cumulative interest rate cuts of 325 basis points in April and May, amid easing inflationary pressures. However, ongoing geopolitical tensions—despite an overall sense of optimism—are expected to weigh on select sectors, particularly the Suez Canal and tourism.
QNB Egypt capitalized on the improving macroeconomic backdrop to deliver strong, organic growth underpinned by solid fundamentals. The bank’s balance sheet expanded by +3% YTD, reaching EGP 844 billion, primarily driven by a +3% increase in customer deposits, which stood at EGP 700 billion at the end of the second quarter.
On the asset side, loan growth was notably robust, rising by +11% to EGP 407 billion. This reflects the bank’s growing appetite across both Retail and Corporate segments. The non-performing loan ratio stood at 5.23%, with a total coverage ratio of 107.0%, underscoring the bank’s sound risk management and resilient credit portfolio.
QNB Egypt reported a solid net profit of EGP 15.1 billion, marking a +10% YOY increase. This performance was supported by an 18% rise in net interest income and a +24% increase in fees and commissions. The bank also maintained an efficiency ratio of 18.4%, highlighting its operational strength and disciplined cost management.
These results underscore QNB Egypt’s steadfast commitment to sustainable growth and long-term value creation for its shareholders, clients, and the broader Egyptian economy.
