Arab Finance: Fitch raised the credit ratings of four local banks – namely the National Bank of Egypt, Banque Misr, Banque du Caire, and Commercial International Bank – to “B” instead of “B-” with a stable outlook, which reflects “the strong connection between the creditworthiness of the banks and the creditworthiness of the Egyptian state.” According to statement Issued by the agency.
Fitch also raised the operating environment, funding and liquidity ratings of the four banks to 'B', with a stable outlook; The decision was attributed to the increase in liquidity in foreign currencies and the large jump in net foreign assets, as the net foreign assets deficit in commercial banks improved since the completion of the Ras al-Hikma agreement and the reforms that followed it, to reach about $132 million at the end of September, compared to $17.6 billion at the end of last January. .
The agency expects the banking sector to record a slight positive net foreign assets in 2025 and 2026, thanks to positive net inflows from foreign portfolio investors, a lower current account deficit, and financing from international financial institutions on the back of the adoption of a more flexible exchange rate regime for foreign currencies.
And also It expects banks' profitability to improve significantly this year, supported by higher yields on sovereign debt instruments, revaluation gains and improved client activity before it begins to return to historical averages in 2025 as a result of interest rate cuts.
