Cairo 30 July 2025: The Board of Directors of Credit Agricole Egypt approved the Bank’s results for the period ending June 30, 2025, at its meeting held on Tuesday, July 29, 2025.
Main Highlights
Net Profit at EGP 3,534 million, down -16%
Year-on-Year (due to exceptional FX income in 1H24);
Customer Deposits reached EGP 103.9 billion, up 23% Year-on-Year;
Gross Loans reached EGP 59.3 billion, up 21% Year-on-Year;
Loans-to-Deposit Ratio at 57.0%, down 1% Year-on-Year;
Current and Saving Accounts to Total Deposits reached 57.2%, up 2% Year-on-Year;
Non-Performing Loans ratio at 2.1% and Coverage Ratio at 184.5%;
Resilient Capital Structure, Capital Adequacy Ratio of 20.4%;
Return on Average Assets (ROAA) at 5.4% down 2.2% Year-on-Year and Return on Average Equity (ROE) at 34.1% down 19% Year-on-Year;
Cost Income Ratio at 26% Up by 8% Year-on-Year indicating regularization trend;
CAE benefitted from an exceptional volume of FX transactions in 1Q24 post devaluation due to clearance of import payments backlog which generated exceptional FX income impacting positively Net Profit, ROAA, ROE in 1H24.
Economic Dynamics:
The outlook for global economy has shown signs of recovery supported by slowing inflation in major markets, with central banks in some advanced and emerging market economies continuing or starting to gradually cut their policy rates with a cautious approach to ensure the inflation stays on track on the back of diverse & persistent geopolitical tensions and anticipated disruptions to global trade triggered by the US led tariff evolutions.
Domestically, Egypt is progressing well on the path of recovery in economic activity in 1H25 (above 4% real GDP growth) and disinflation supported by base year effect maintaining its anticipated trajectory leading to real interest rates in the market. This facilitated the Central Bank of Egypt (CBE) to kick start the interest rates reversal cycle with a 325 bps cut in 2Q25. Business confidence remained elevated driven by stable and liquid FX market, normalization of import and trade activities along with support from IMF and strategic growth partners (EU and GCC).
Crédit Agricole Egypt achieved good growth in business as of 1H25
There was good commercial growth from all business lines with the bank's gross loan portfolio increasing by 21% YoY to reach EGP 59.3 billion, while customer deposits increasing by 23% YoY to reach EGP 103.9 billion. However, Crédit Agricole Egypt (CAE) achieved -6% YoY decrease in Net Banking Income at EGP 6.5 billion due to exceptional FX income post devaluation in Mar-24 (excluding the exceptional FX income, NBI would have increased by 1%).
Corporate banking continues to achieve good results in 6M25 driven by strong growth in the lending portfolio, evidenced by increase of EGP 5.8 billion (16% YoY) while maintaining high asset quality. Corporate deposits witnessed robust growth of EGP 13.2 billion (25% YoY), driven by strong customer engagement, dynamic liability profile management and high-value capital infusion flows. CAE continues to meet evolving client needs by having strategic focus on providing tailored financial solutions and enhancing its product offerings in order to achieve diversified income streams.
Retail banking demonstrated strong portfolio growth in 6M25, with loans increasing by 36% and Deposits by 21% YoY. This performance was driven by successful marketing campaigns, introduction of new products, and active client acquisitions, despite the competitive (CDs) market. Cash loans witnessed a 10% YoY production growth driven by campaigns and strategic cross-selling efforts. Auto loans exhibited robust growth of 233% YoY, driven by higher number of tickets and ticket size.
Active customer base demonstrated excellent growth i.e. 9% YoY and 1% QoQ sequentially resulting from key initiatives focused on customer acquisition (payroll), reactivation, loan campaigns, and cross-selling. This included launching new products i.e. Time deposits with competitive rates, AHLAN accounts (for non-digital and digital acquisition), Excellence Accounts for private banking customers, Cash Loan Program (Drive Cash), three new floating CDs (Excellence, Premium, and Standard). The bank also participated in events hosted by clubs, universities, and closed communities.
Dynamic Commercial Activity and Solid Balance Sheet Structure
Commercial activity remained robust and met expected levels. This stability allowed the bank to effectively serve both corporate and individual customers with appropriate financial solutions, contributing to growth in the active customer base. This positive outcome is evident in the key performance indicators: gross loans (including loans to banks) increased by 21% YoY to reach EGP 59.3 billion and customer deposits grew by 23% YoY to reach EGP 103.9 billion.
Corporate and Retail breakdown based on Published Financial Statements
Profitability Performance
Net Banking Income (NBI) recorded anticipated decline in 6M25, decreasing by -6% YoY to reach EGP 6,579 million. This decline was driven by a -64% YoY decrease in other operating income (Exceptional FX income post EGP devaluation in March 2024). The Net Interest Income increased by 1% resulting from higher volumes and yields but restricted by increase in cost of funds. Commissions increased by 17% driven by retail fees and bancassurance.
Operating expenses increased with 34% YoY driven by inflation effect on compensation (including minimum wage regulations), IT related payments and marketing activities. Cost to Income Ratio (C/I) increased to 26% from 18.1% in 6M24 (regularizing trend) and Gross Operating Income (GOI) has decreased by -15%, reaching EGP 4,866 million.
Higher cost of risk at EGP -176 million, compared to -88 million in the same period last year driven by normalized risk charges in 1H25 and higher recoveries in 1H24 supported by prudent risk management.
As a result, the net profit has decreased by -16% YoY mainly driven by high exceptional FX income in 1H24.
Sequentially, (QoQ) net banking income (NBI) has a decreased by -6%. Gross operating income (GOI), -9% QoQ. This outcome mainly resulted from decrease in Net interest income by -6% QoQ driven by interest rate cuts and slow fee/trading business, marginal rise in operating expenses driven by inflationary pressures and normal cost of risk.
Income Statement based on managerial reporting
High Quality of Assets, Strong Solvency and Liquidity
CAE's NPL ratio at 2.15% in 2Q25, continuing to rank among the best within the banking sector. This low ratio, coupled with a substantial coverage buffer, indicates the high quality of the bank's credit portfolio and reflects its commitment to prudent risk management practices. This strong credit profile enables CAE to pursue healthy organic growth in its lending portfolio.
Moreover, the bank's robust liquidity and capital positions, comfortably exceeding regulatory requirements, ensuring its resilience against potential market shocks as well as supporting organic growth.
CAR, LCR, NSFR and Leverage as reported to CBE.
Key Financial and Business Indicators
Net Interest Margin “NIM” based on managerial reporting and Earnings per Share after relevant adjustments i.e. (Employees Profit Share, Banking Development Fund etc.)
Digital Journey
In 2Q25, Crédit Agricole Egypt (CAE) reaffirmed its leadership in digital banking with continued growth in customer adoption and engagement, processing in 2Q25 over 5Mn digital transactions (+90% vs.2Q24). With 99% of domestic transfers done digitally and over 20Mn outgoing INSTAPAY transactions since May 2023, CAE remains a key player in Egypt’s evolving digital ecosystem.
Credit Agricole stepped into a bold new era of mobile banking with a reimagined banki Mobile experience giving the app a powerful transformative update with extensive focus on UX and optimized customer journey. An entirely revamped, secure, and user-centric one stop shop app offering intuitive navigation and advanced features. This transformation is part of CAE’s broader OMNI channel strategy, aimed at delivering a 100% human, 100% digital model that prioritizes convenience, innovation and seamless self-care user experience. With an agile infrastructure and open innovation approach, CAE continues to invest in digital capabilities, reinforcing its market-leading position and supporting national goals of inclusion and sustainability.
For Corporate and SME customers, 48% are digitally active over our online platform. With almost half of the domestic transfers digitally processed through the platform, digital transactions remarkably grew by +13% vs. 2Q24. While more and more companies are paying their governmental payments online, this type of payments has increased in 2Q25 (+23% vs. 2Q24).
CAE continued its solid steps to realize its digitalization ambitious roadmap, by launching its payment acceptance product (less than 2 years ago) "banki Commerce"; CAE stepped into the payment acceptance world, contributing further towards the Central Bank efforts for a "less cash society" as well as the gradual shift to payment acceptance. By the end of 2Q25, "banki Commerce" had generated a total inflows of EGP 200Mn Life To Date, with 68K e-commerce transactions processed through the new gateway since inception. CAE Consistently, remains committed to its ambitious vision in the Payment Acceptance field, and its unique onboarding journey continues to make it easy for companies to optimize their inflows
Customer Centricity Award
CAE has been recognized as the first financial institution in Egypt to receive the 'Most Customer-Centric Banking Products – Egypt 2024' award by Global Business Outlook (GBO), in recognition of the bank’s commitment to customer satisfaction through value driven products and services.
Sustainability and CSR Activities
CAE Foundation unveiled its new brand logo with four main pillars. The new logo symbolizes the fundamental pillars of the foundation’s activities: Education, Health, Social Entrepreneurship and Environment & Community Development. Since its creation in 2017, the projects have benefited over 125,000 people with financing in excess of 140 million Egyptian pounds. All projects are designed to have a tangible and lasting social impact.