Fitch Ratings revises outlook of four Egyptian banks to positive

Fitch Ratings has revised its outlook on four Egyptian banks from stable to positive while affirming their long-term issuer default ratings at B-.

The banks include three state-owned institutions—National Bank of Egypt (NBE), Banque Misr (BM), and Banque du Caire (BDC)—as well as Commercial International Bank (CIB), Egypt’s largest private bank. The outlook on CIB's and BDC's capitalization and leverage scores has been revised to positive from stable, and for NBE and BM, these scores have been revised to stable from negative.

These revisions reflect reduced pressures on the banks' capital ratios for FY2024/2025, following recent foreign exchange inflows into Egypt. This improvement has alleviated some of the financial strains on the sovereign, thereby positively impacting the banks' outlooks.