Report Summary

The Egyptian banking industry, supported by the buoyant economic growth, increasing demand of consumer loans and improving consumer confidence, has shown a strong growth in the recent past. The government is also working hard to make the industry globally competitive. As a result of government¡¯s privatization program and rapid consolidation in the banking system, asset quality of banks is improving significantly. As part of the privatization process, bad debts owed by publicly-owned companies are being paid back to state-owned banks in cash by the state prior to their sell off. Thus, ratio of non-performing loans is going down. These are the findings of our research report, "Egypt Banking Sector Analysis".

This report is an analytical study of the thriving banking industry of an emerging African country, Egypt. It evaluates the products and services offered by the Egyptian banking industry. Exploring the market development and potential, the report gives a broad overview on the Egyptian banking industry. It will help clients to identify the leading-edge opportunities critical to the success of the banking industry and help investors, financial service providers and global banking players to navigate through the market.

Other Key Findings of the Research

Deposits at Egyptian banks are forecasted to grow at a CAGR of about 14% between 2008-09 and 2010-11, with household sector accounting for majority of deposits.
Bank loans to private business sector are forecasted to grow at a CAGR of about 9.5 during 2008-09 to 2010-11.
Manufacturing sector will remain the major recipient of bank loans in local as well as foreign currencies during 2007-08 to 2010-11.
Net interest income is projected to grow at a CAGR of over 12% during 2008-2012.

Key Issues & Facts Analyzed in the Research

What makes Egypt an attractive banking destination?
Which banking products will see strong growth?
What are the prospective areas of investment for the banks in near future?
What are the various challenges for the industry?

Key Players Evaluated in the Research

This section provides business analysis of top players like National Bank of Egypt, Bank of Alexandria, Barclays Bank Egypt and BNP Paribas operating in the Egyptian banking industry.

Research Methodology Used in the Research

Information Sources
Information has been sourced from various authentic sources like books, newspapers, trade journals, white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to over 3000 paid databases.

Analysis Methods

RNCOS industry forecast and analysis is based on various macro- and microeconomic factors, sector and industry specific databases, and our in-house statistical and analytical model. This model takes into account the past and current trends in an economy, and more specifically in an industry, to bring out an objective market analysis.

Our industry experts study the relationship between various industry and economic variables to ensure the required accuracy and desired check on the quality of data and information given in the report.

Report Outline

1. Analyst View
2. Egypt - An Emerging Banking Destination
2.1 Economic Growth
2.2 Consumer Behavior
2.3 Saving Pattern
2.4 Employment Level
2.5 Young & Educated Population
2.6 Large Untapped Market
3. Market Structure & Overview
4. Growth in Bank Deposits
4.1 By Currency
4.2 By Sector
4.2.1 Business
4.2.2 Household
4.2.3 Government
4.2.4 Foreign
4.3 By Maturity
4.3.1 Demand Deposits
4.3.2 Time & Saving Deposits
4.3.3 Blocked or Retained Deposits
5. Growth in Bank Loans
5.1 By Sector
5.1.1 Private Business
5.1.2 Public Business
5.1.3 Household
5.1.4 Government
5.1.5 Foreign
5.2 By Economic Activity
5.2.1 Agriculture
5.2.2 Industry
5.2.3 Trade
5.2.4 Services
5.2.5 Others
5.3 By Credit Cards
6. Interest Income
7. Key Growth Areas
7.1 Payment Card Market
7.2 Automotives
7.3 Consumer Durables
7.4 Mortgage Finance
7.5 E-banking
7.6 Islamic Banking
7.7 Advanced Technologies
8. Growth Hurdles
8.1 Income Disparity
8.2 Surging Inflation
8.3 Liability in Foreign Currency
9. Key Players
9.1 National Bank of Egypt
9.2 Arab African International Bank
9.3 Bank of Alexandria
9.4 Barclays Bank Egypt
9.5 BNP Paribas

Figures

Figure 2-1: Egypt - Real GDP Growth w.r.t Emerging & Developed Countries (%), 2002-03 to 2006-07
Figure 2-2: Egypt - Saving Pattern (%), 2006-07
Figure 2-3: Egypt - Employment (in Million), 2005-06 & 2006-07
Figure 2-4: Egypt - Share of Young Population* in Total Population (%), 2007
Figure 2-5: Egypt - Young Population (in Million), 2000-2007
Figure 2-6: Egypt - Banking Penetration (%), 2007
Figure 3-1: Egypt - Bank Assets (in Billion LE), 2001-02 to 2007-08
Figure 3-2: Egypt - Bank Asset Composition (%), 2007-08
Figure 4-1: Egypt - Deposits with Banks (in Billion LE), 2001-02 to 2007-08
Figure 4-2: Egypt - Forecast for Deposits with Banks (in Billion LE), 2008-09 to 2010-11
Figure 4-3: Egypt - Deposits with Banks by Currency (%), 2006-07
Figure 4-4: Egypt - Deposits with Banks in Local Currency (in Billion LE), 2001-02 to 2006-07
Figure 4-5: Egypt - Deposits with Banks in Foreign Currency (in Billion LE), 2001-02 to 2006-07
Figure 4-6: Egypt - Deposits with Banks by Sector (%), 2006-07
Figure 4-7: Egypt - Business Sector Deposits with Banks (in Billion LE), 2001-02 to 2007-08
Figure 4-8: Egypt - Household Sector Deposits with Banks (in Billion LE), 2001-02 to 2007-08
Figure 4-9: Egypt - Government Sector Deposits with Banks (in Billion LE), 2001-02 to 2006-07
Figure 4-10: Egypt - Foreign Sector Deposits with Banks (in Billion LE), 2001-02 to 2007-08
Figure 4-11: Egypt - Deposits with Banks by Maturity (%), 2006-07
Figure 4-12: Egypt - Demand Deposits with Banks (in Billion LE), 2001-02 to 2006-07
Figure 4-13: Egypt - Time & Saving Deposits with Banks (in Billion LE), 2001-02 to 2006-07
Figure 4-14: Egypt - Blocked or Retained Deposits with Banks (in Billion LE), 2004-05 to 2006-07
Figure 5-1: Egypt - Bank Loans (in Billion LE), 2001-02 to 2007-08
Figure 5-2: Egypt - Bank Loans by Currency (%), 2007-08
Figure 5-3: Egypt - Forecast for Bank Loans (in Billion LE), 2008-09 to 2010-11
Figure 5-4: Egypt - Bank Loans by Sector (%), 2007-08
Figure 5-5: Egypt - Bank Loans to Private Business Sector (in Billion LE), 2001-02 to 2007-08
Figure 5-6: Egypt - Forecast for Bank Loans to Private Business Sector (in Billion LE), 2008-09 to 2010-11
Figure 5-7: Egypt - Bank Loans to Public Business Sector (in Billion LE), 2001-02 to 2007-08
Figure 5-8: Egypt - Forecast for Bank Loans to Public Business Sector (in Billion LE), 2008-09 to 2010-11
Figure 5-9: Egypt - Bank Loans to Household Sector (in Billion LE), 2001-02 to 2007-08
Figure 5-10: Egypt - Forecast for Bank Loans to Household Sector (in Billion LE), 2008-09 to 2010-11
Figure 5-11: Egypt - Bank Loans to Government Sector (in Billion LE), 2001-02 to 2007-08
Figure 5-12: Egypt - Forecast for Bank Loans to Government Sector (in Billion LE), 2008-09 to 2010-11
Figure 5-13: Egypt - Bank Loans to Foreign Sector (in Billion LE), 2003-04 to 2007-08
Figure 5-14: Egypt - Forecast for Bank Loans to Foreign Sector (in Billion LE), 2008-09 to 2010-11
Figure 5-15: Egypt - Bank Loans by Economic Activity (%), 2006-07
Figure 5-16: Egypt - Bank Loans to Agriculture Sector (in Billion LE), 2001-02 to 2007-08
Figure 5-17: Egypt - Forecast for Bank Loans to Agriculture Sector (in Billion LE), 2008-09 to 2010-11
Figure 5-18: Egypt - Bank Loans to Industrial Sector (in Billion LE), 2001-02 to 2006-07
Figure 5-19: Egypt - Forecast for Bank Loans to Industrial Sector (in Billion LE), 2007-08 to 2010-11
Figure 5-20: Egypt - Bank Loans to Trade Sector (in Billion LE), 2001-02 to 2007-08
Figure 5-21: Egypt - Forecast for Bank Loans to Trade Sector (in Billion LE), 2008-09 to 2010-11
Figure 5-22: Egypt - Bank Loans to Service Sector (in Billion LE), 2001-02 to 2006-07
Figure 5-23: Egypt - Forecast for Bank Loans to Service Sector (in Billion LE), 2007-08 to 2010-11
Figure 5-24: Egypt - Bank Loans to Unclassified Sector (in Billion LE), 2001-02 to 2006-07
Figure 5-25: Egypt - Number of Credit Cards (in Million), 2007 & 2010
Figure 6-1: Egypt - Net Interest Income of Banks (in Million US$), 2003-2007E
Figure 6-2: Egypt - Forecast for Net Interest Income of Banks (in Million US$), 2008-2012
Figure 7-1: Egypt - Forecast for New Passenger Car Registration (in ¡®000 Units), 2008-2012
Figure 7-2: Egypt - Forecast for TV, Refrigerator & Washing Machine Sales (in ¡®000 Units), 2008-2012
Figure 7-3: Egypt - Mortgage Loans (in Billion LE), Sep 2005 & 2007
Figure 7-4: Egypt - Forecast for Internet Users (in ¡®000), 2008-2012
Figure 7-5: Egypt - Forecast for Mobile Subscribers (in ¡®000), 2008-2012
Figure 8-1: Egypt - Consumer Price Inflation (%), Jan 2008 to Jun 2008
Figure 8-2: Egypt - Foreign Currency Assets/Liability Ratio (%), 2004-05 to 2006-07

Tables

Table 3-1: Egypt - Banking Industry Structure (2003-04 to 2006-07)