The Board of Directors of Crédit Agricole Egypt approved the Bank’s results for the period ending March 31, 2025, during their meeting on Tuesday, April 29, 2025.
Main Financial Highlights
- Net Profit: EGP 1,869 million, down 18% year-on-year (YoY), mainly due to one-off FX income in March 2024.
- Customer Deposits: EGP 94.9 billion, reflecting a 12% increase YoY.
- Gross Loans: EGP 58.3 billion, showing a 28% YoY growth.
- Current and Saving Accounts to Total Deposits: 56%, representing a 2% decrease YoY.
- Non-Performing Loans (NPL) ratio: 2%, with a coverage ratio of 196%.
- Loans-to-Deposit Ratio: 61%, up 7% YoY, driven by strong loan growth.
- Capital Adequacy Ratio (CAR): 21.1%, showcasing a resilient capital structure.
- Return on Average Assets (ROAA): 5.9%, down by 2.6% YoY.
- Return on Average Equity (ROAE): 37.5%, down by 24% YoY.
- Cost-to-Income Ratio: 24.8%, an 8% increase YoY.
Economic Overview and Global Trends
The global economic outlook continues to show uncertainty, as central banks in both advanced and emerging markets adopt a cautious approach to monetary policy.
This includes some central banks beginning to gradually cut their policy rates, largely due to slow dis-inflation, ongoing geopolitical tensions, and expected disruptions to global trade, particularly from U.S.-led tariff changes.
Locally, Egypt has seen significant economic progress in the first quarter of 2025. This recovery is driven by lower inflation (base-year effect), liquid foreign exchange markets, normalization of imports and trade activities.
and strong support from international organizations such as the IMF, as well as key regional partners like the EU and GCC. These factors have collectively contributed to improving business confidence.
Crédit Agricole Egypt’s Business Performance in Q1 2025
The Bank achieved notable growth across all business segments. The loan portfolio increased by 28% YoY to reach EGP 58.3 billion, while customer deposits rose by 12% YoY to EGP 94.9 billion.
Despite this growth, Crédit Agricole Egypt experienced an 8% YoY decline in Net Banking Income (NBI), amounting to EGP 3.4 billion. This was due to the one-off large FX income resulting from the devaluation in March 2024. Excluding this exceptional FX effect, NBI would have risen by 7%.
Corporate Banking Performance
Corporate banking performed well in Q1 2025, primarily driven by strong growth in the lending portfolio. The total corporate loan book increased by EGP 8.6 billion, or 25% YoY, while corporate deposits grew by EGP 2.8 billion, or 5% YoY.
This growth was driven by a backlog in trade clearance and dynamic management of liability profiles. Crédit Agricole Egypt continues to meet its corporate clients’ evolving needs by providing tailored financial solutions and diversifying its product offerings.
Retail Banking Growth
Retail banking showed a remarkable performance in Q1 2025, with loans rising by 34% and deposits increasing by 27% YoY.
This growth was fueled by successful marketing campaigns, the introduction of new products, and active customer acquisition strategies, despite the competitive environment.
Notably, cash loans grew by 29% YoY due to strategic cross-selling, while auto loans witnessed an impressive 310% YoY growth, attributed to higher ticket sizes.
Additionally, the active customer base grew by 10% YoY and 3% QoQ, driven by key initiatives such as payroll accounts, reactivation campaigns, loan offerings, and cross-selling efforts.
The launch of new products, such as secured housing loans, time deposits with competitive rates, and various types of CDs, also contributed to this growth.
Dynamic Commercial Activity and Robust Financial Structure
Commercial activities remained strong and aligned with expected levels, allowing the Bank to serve both corporate and individual clients effectively.
This stability contributed to growth in the active customer base, further reflected in key performance indicators: gross loans (including loans to banks) rose by 28% YoY to EGP 58.3 billion, and customer deposits grew by 12% YoY to EGP 94.9 billion.
Profitability Performance
Net Banking Income (NBI) declined by 8% YoY, reaching EGP 3,397 million. This decrease was mainly driven by a 73% YoY fall in other operating income, attributed to one-off FX gains following the devaluation of the Egyptian Pound in March 2024.
Net Interest Income increased by 5%, due to higher volumes and yields, though this was somewhat offset by a rise in the cost of funds. Operating expenses grew by 32% YoY, driven by inflation and the devaluation effect.
The Cost-to-Income Ratio (C/I) rose to 24.8%, compared to 17.2% in Q1 2024, while Gross Operating Income (GOI) fell by 17%, reaching EGP 2,554 million. The cost of risk increased to EGP -85 million, compared to a positive EGP 1 million in the same period last year, primarily due to higher recoveries in March 2024 and prudent risk management practices.
Quality of Assets, Solvency, and Liquidity
Crédit Agricole Egypt continues to maintain one of the lowest Non-Performing Loans (NPL) ratios in the banking sector, with a ratio of 2.0% in Q1 2025.
This low ratio, combined with a substantial coverage buffer, indicates the high quality of the Bank’s credit portfolio and reflects its commitment to prudent risk management practices.
The Bank’s strong liquidity and capital positions comfortably exceed regulatory requirements, ensuring resilience against market shocks and supporting ongoing organic growth.
Digital Banking Expansion
Crédit Agricole Egypt is at the forefront of digital banking and continues to enhance the digital experience for its customers.
In Q1 2025, the Bank processed over 4.5 million digital transactions, marking a 12% increase over the same period in 2024. Additionally, 99% of domestic transfers were processed digitally, and more than 2.5 million logins were recorded on the Bank’s mobile app.
Crédit Agricole Egypt also continued to expand its role in the growing digital banking ecosystem with the successful launch of INSTAPAY in May 2023, contributing significantly to the volume of outgoing transactions.
For corporate and SME clients, nearly half of the companies have been digitally active on the Bank’s online platform, and domestic transfers have grown by 17% YoY.
Sustainability and Corporate Social Responsibility (CSR) Initiatives
Crédit Agricole Egypt is committed to sustainable finance and energy transition, and is positioning itself as a leading bank in these areas.
The Bank is also dedicated to giving back to the community. It participated as a main sponsor in the Ramadan Football Tournament organized by Sanad Foundation and GOSOOR, raising awareness for youth without parental care.
Additionally, the Bank donated Ramadan food boxes to underprivileged families in collaboration with MISR EL-KHEIR Foundation and organized an Iftar event with elderly residents to promote community engagement and social responsibility.
