Egyptian banking sector witnessed improvement in non-performing loans (NPL) ratio at end of June 2015, reporting 7.6% compared to 8.3% at end of March 2015 and 8.5% at end of fiscal year (FY) 2014. Loan provisions to non-performing loans reported 98.7% at end of June 2015, compared to 98.3% at end of March 2015 and 98.9% at end of FY2014. Furthermore, total loans to deposits ratio slightly rose to 41.4% at end of June 2015, compared to 41% at end of March 2015 and 40.8% at end of FY2014. As for capital adequacy indicators, Capital base to risk weighted assets remained at the same level of 13.5% at end of both June and March 2015, while it reported 13.9% at end of FY2014; Tier 1 capital to risk weighted assets reported 11.5% at end of June 2015, compared to 11.3% at end of March 2015 and 11.8% at end of FY2014. As for top 10 banks, non-performing loans to total loans also improved to 4.8% at end of June 2015, compared to 5.6% at end of both March 2015 and FY2014. Loan provisions to non-performing loans were at 100% for all 3 reporting periods. Capital base to risk weighted assets reported 13.3% at end of both June and March 2015, while it reported 13.7% at end of FY2014. Total loans to deposits ratio stood at 37.5% at end of June 2015, compared to 37.1% at end of March 2015 and 36.9% at end of FY2014.
