Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - Egypt

Egypt

In Egypt, the Traditional Commercial Banking market market is projected to witness a significant growth in Net Interest Income, with a forecasted amount of US$9.53bn by the year 2024.
Moreover, it is anticipated that the Net Interest Income will exhibit a Compound Annual Growth Rate (CAGR 2024-2029) of 4.79%, leading to a market volume of US$12.04bn by 2029.
When compared to other countries globally, in China is expected to generate the highest Net Interest Income in the Traditional Commercial Banking market sector, with a projected amount of US$1,444.0bn in 2024.
Egypt's traditional commercial banking sector is experiencing a shift towards digitalization, with banks investing in innovative technologies to enhance customer experience and streamline operations.

Key regions: China, France, Brazil, Singapore, India

Definition:

Commercial banking refers to the financial services sector that provides a range of financial products and services to businesses, including small and large enterprises. Commercial banks offer services such as loans, lines of credit, and other financial products specifically designed for businesses. These services are critical to supporting the growth and development of businesses and the broader economy.
Commercial banks play a key role in the financial landscape by providing businesses with the funding they need to invest in new projects, hire employees, and expand their operations. They also offer a range of risk management services, such as trade financing and hedging solutions, to help businesses manage their financial risks.
The commercial banking market is highly competitive, with large global players as well as regional and local banks competing for business. Banks in this market are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. Changes in regulations and the growing trend towards digitalization are also shaping the commercial banking market, creating opportunities for new entrants and forcing existing players to adapt.
Overall, commercial banking provides a vital range of financial services to businesses and is critical to supporting the growth and development of the broader economy.

Structure:

The market data comprises Net Interest Income, the value of Deposits, the value of Loans, 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 and commercial banking market, creating opportunities for new entrants and forcing existing players to adapt.

Key players in this market are companies such as Industrial and Commercial Bank of China Ltd., JPMorgan Chase & Co., and HSBC Holdings.

Use the info button next to the boxes for more information on the data displayed.

Market

Region

Region comparison

Currency

Analyst Opinion

The Traditional Commercial Banking market in Egypt has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Egypt have shown a strong preference for traditional banking services, such as savings accounts, loans, and investment opportunities provided by commercial banks. This preference can be attributed to a cultural inclination towards established and reputable financial institutions for their banking needs.

Trends in the market: One notable trend in the Egyptian Traditional Commercial Banking market is the increasing adoption of digital banking services. While traditional banking remains popular, many customers are embracing online and mobile banking options for convenience and efficiency. This shift towards digitalization is driving banks in Egypt to invest in technology and innovative solutions to meet the evolving needs of their customer base.

Local special circumstances: In Egypt, the banking sector is heavily regulated by the Central Bank, which plays a significant role in shaping the market dynamics. The regulatory environment influences the operations and offerings of commercial banks in the country, ensuring stability and security within the financial system. Additionally, the presence of state-owned banks alongside private banks creates a unique competitive landscape in Egypt's banking industry.

Underlying macroeconomic factors: The development of the Traditional Commercial Banking market in Egypt is also influenced by macroeconomic factors such as GDP growth, inflation rates, and government policies. Economic stability and growth contribute to increased demand for banking services, while inflation and interest rates impact borrowing and lending activities within the market. Government initiatives to promote financial inclusion and support small and medium enterprises further drive the growth 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.