At the start of 2026, the Egyptian economy was on a positive trajectory, supported by 5.3% GDP growth, relatively stable inflation, expanding industrial activity, accelerating tourism, and rising remittances from Egyptians abroad. However, this outlook was challenged by escalating regional tensions, which disrupted energy production and supply routes, increased transportation and insurance costs, and drove higher global energy prices, reigniting inflationary pressures. In response, the government and the Central Bank of Egypt (CBE) adopted a flexible policy framework amid heightened external uncertainty. The EGP depreciated with elevated day‑to‑day volatility, largely reflecting shifts in foreign portfolio inflows and outflows. On the fiscal front, the government moved to contain the budget deficit by revising energy prices upward while implementing measures to curb domestic energy consumption, adding further inflationary pressure. Against this backdrop, the CBE paused its monetary easing cycle, citing increased uncertainty and the need to assess the inflationary impact of recent fiscal actions and external shocks.
QNB Egypt continued to build on its solid business model while enhancing its profitability metrics. The bank’s balance sheet grew by 12% YTD, reaching EGP 1,044 billion, primarily driven by 13% YTD growth in deposits.
Loan growth remained solid, rising by 7% to EGP 498 billion, reflecting the bank’s expanding lending activity across both retail and corporate segments. The non-performing loan ratio settled at 4.58%, while the total coverage ratio reached 118.9% demonstrating the bank’s prudent credit risk management.
QNB Egypt reported a solid net profit of EGP 9.5 billion, up 33% YOY, driven by a 24% increase in net interest income and a 36% rise in net banking income. This performance was achieved despite a 105% increase in cost of risk, which reached EGP 1.54 billion. The bank also maintained a strong cost‑to‑income ratio of 17.3%, underscoring its operational efficiency and disciplined cost management.