Moody's: Egypt banking system is on robust growth
Thursday، 23 January 2020 - 11:57 AM
The outlook for Egypt's banking system is stable over the next 12-18 months as the banks maintain high liquidity amid an expanding economy that will help them generate more loans and business, Moody's Investors Service posted on its website.
"The economy is growing robustly – we project real GDP growth of 5.8% in 2020 – supported by declining interest rates," said Constantinos Kypreos, Senior Vice President at Moody's. "And banks retain good access to stable, deposit-based funding and are very liquid, especially in local currency."
Moody's expects banks' profitability to improve, bolstered by strong balance-sheet growth – with a projected acceleration in credit growth by 12%-15%, supported by declining interest rates and government funding initiatives for the industrial, tourism and mortgage sectors – and by a recovery in net interest margins as high-yielding certificates of deposits offered by state-owned banks mature.