The Egyptian banking sector, with combined assets of $230 billion as of October 2010, is in a good shape and was not affected by the people uprising in Egypt, the President of Union of Arab Banks (UAB) said on Monday.
Adnan Ahmed Yousif, Chairman of the UAB, said that the Egyptian banks were in a good shape and had not been affected by the events witnessed by the Arab Republic of Egypt during the last four days.
Adnan Yousif, who is also President and chief executive of Al Baraka Banking Group Bahrain, while commenting on the clouds of uncertainty surrounded Egypt following the political unrest said that the banking sector had not been affected by the events taking place in Egyptian cities.
He added that it was natural to see a decline in the Egyptian stock exchange in such circumstances, but such decline is under control, saying that the banking sector in Egypt has robust resources and is one of the most important economic sectors in Egypt. The combined assets of the Egyptian banks as at the end of October 2010 was about $230 billion with deposits of about $163 billion and capital of about $ 14 billion.
The Egyptian banking sector registered an excellent capitalization ratio of about 6% with a high level of liquidity as loans to deposits ratio did not exceed 50%.
As for growth in the Egyptian banking sector, he pointed out that the growth rate in assets reached about 22%, while capital growth was approximately 20% which is one of the highest rates recorded in the Arab region.
Yousif hoped that the situation in the Arab Republic of Egypt would return to normal soon and that the Egyptian banking sector would continue its excellent performance and keep on playing its important role in the development of the Arab banking system.