In a remarkable financial comeback, the Central Bank of Egypt (CBE) has announced a net profit of EGP 22.834 billion in June 2024, a significant turnaround from the EGP 86.283 billion loss recorded in June 2023. This achievement marks the first time the CBE has reported profitability in seven years, signaling a new era of economic stability and growth for the nation.
The CBE’s financial revitalization is attributed to strategic measures, including the cessation of interest rate subsidies for key initiatives such as low- and middle-income housing, industry, tourism, and dual-fuel vehicle conversion. These subsidies were transferred to the Ministry of Finance under Prime Minister Mostafa Madbouly’s directive, in line with the International Monetary Fund’s economic reform program.
The bank’s financial statements reveal a profit of EGP 7.052 billion from investments in subsidiary companies in June 2024, up from EGP 2.990 billion in June 2023. Major contributors include the Arab African International Bank, the Arab International Bank, and Misr for Central Clearing, Depository and Registry (MCDR).
In addition to profitability, the CBE reported a rise in total assets, reaching EGP 6.057 trillion in June 2024, compared to EGP 4.480 trillion in June 2023. Investments in international financial institutions also increased, with stakes in the Islamic Development Bank and the African Export-Import Bank seeing substantial growth.
Moreover, the Central Bank’s gold reserves surged to EGP 454.925 billion in the first half of 2024, almost doubling from EGP 238.6 billion in June 2023.
Complementing these achievements, the Egyptian banking sector’s net foreign assets (NFA) reached a surplus of $13.25 billion (EGP 644.764 billion) in July 2024, up from $13.02 billion (EGP 626.6 billion) in June. This surplus, the first since January 2022, highlights the sector’s strengthened position in the global market.
Liquidity in the Egyptian banking sector also saw a significant rise, reaching EGP 10.783 trillion in July from EGP 8.877 trillion in December 2023. This increase underscores the sector’s robust financial health and its capability to support ongoing economic activities.
As Egypt continues to implement reforms and strategic investments, the nation’s economic outlook remains positive, with the CBE leading the charge towards a more prosperous future.