Banking - Egypt

Egypt

In Egypt, the net interest income in the Banking market is forecasted to reach US$36.74bn in 2024.
Traditional banks dominate this market segment, with a projected market volume of US$35.84bn in the same year.
Looking ahead, the net interest income is expected to exhibit an annual growth rate of 4.87% (CAGR 2024-2029), resulting in a market volume of US$46.61bn by 2029.
In a global comparison, it is worth noting that in China is projected to generate the highest net interest income, amounting to US$4,332.0bn in 2024.
Egypt's banking sector is experiencing a rise in digital banking services, as more customers opt for online and mobile banking solutions.

Key regions: United States, China, Japan, Brazil, United Kingdom

Definition:

The Banking market refers to the financial services sector providing financial products and services to individuals and businesses. Retail banking focuses on offering financial services to individual consumers, such as personal loans, savings and checking accounts, credit cards, and mortgages. Commercial banking, on the other hand, provides financial services to small and large businesses, including loans, lines of credit, and other financial products designed specifically for businesses.

Structure:

The market consists of two segments:
- The Traditional Banking market refers to the financial services sector that provides a range of financial products and services to individuals and businesses through store-based branches and other traditional channels.
- The Digital Banking market refers to the emerging market for digital-only banks that offer financial services through online and mobile platforms.

The market data comprises Net Interest Income, Bank Account Penetration rate, the value of Deposits, the number of depositors, the value of Loans, the number of borrowers, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Additional information:

The Banking market is highly competitive and characterized by the presence of large global players as well as regional and local banks. Banks are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. Additionally, changes in regulations and the growing trend toward digitalization are shaping the Retail & Commercial banking market, creating opportunities for new entrants, and forcing existing players to adapt.
Key players in this market are companies such as the Industrial and Commercial Bank of China Ltd., JPMorgan Chase & Co., and HSBC Holdings.

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Analyst Opinion

Egypt's Banking market is experiencing significant growth and development, driven by various factors shaping the industry landscape in the country.

Customer preferences: In Egypt, customers are increasingly seeking digital banking solutions that offer convenience and accessibility. With the rise of smartphone usage and internet penetration in the country, customers are looking for seamless online banking experiences. Additionally, there is a growing demand for personalized services and products that cater to the specific needs of different customer segments.

Trends in the market: One notable trend in the Egyptian Banking market is the expansion of Islamic banking services to cater to the needs of the Muslim population in the country. Islamic banking follows the principles of Sharia law, which prohibits the payment or receipt of interest. As a result, Islamic banks in Egypt are offering a range of Sharia-compliant products and services to attract customers who prefer ethical and interest-free banking solutions.

Local special circumstances: Egypt's Banking market is also influenced by regulatory changes and government initiatives aimed at promoting financial inclusion and stability. The Central Bank of Egypt has implemented reforms to strengthen the banking sector, enhance transparency, and improve governance standards. These efforts are creating a more competitive and dynamic market environment that benefits both customers and financial institutions.

Underlying macroeconomic factors: The development of Egypt's Banking market is closely tied to the country's overall economic growth and stability. As the Egyptian economy continues to expand, driven by sectors such as tourism, construction, and manufacturing, the demand for banking services is also growing. Moreover, initiatives to attract foreign investment and promote entrepreneurship are contributing to the diversification and modernization of the banking sector in Egypt.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on Net Interest Income, Bank Account Penetration rate, the value of Deposits, the number of depositors, the value of Loans, the number of borrowers, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data provided by the IMF, World Bank and the annual reports of the top 1000 Banks by asset size. Next we use relevant key market indicators and data from country-specific associations such as GDP, deposit interest rates, lending interest rates or bank account penetration rates. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function and exponential trend smoothing are well suited to forecast financial services for digital as well as traditional products and services.

Additional Notes:

The market is updated twice per year in case market dynamics change.