Banque du Caire Plans 30% IPO on the Egyptian Exchange for November

Egypt’s Banque du Caire plans to float 30% of its issued share capital on the Egyptian Exchange in an initial public offering expected to conclude in November, according to the bank. The transaction involves a secondary sale of 4.575 billion existing ordinary shares held by state-owned Banque Misr. The offering structure includes a private placement for global institutional investors under Rule 144A in the United States and Regulation S internationally, alongside a retail public offering inside Egypt.

Regulatory clearances from the Financial Regulatory Authority and the Egyptian Exchange are currently underway. Subject to those approvals, subscription is scheduled for late October, with trading anticipated to begin in November. CI Capital Investment Banking and EFG Hermes Promoting & Underwriting are acting as joint global coordinators and joint bookrunners for the transaction. Baker McKenzie LLP serves as legal counsel for US and English law, while Helmy, Hamza & Partners advises on Egyptian law.

Banque du Caire Financial Results for the First Half of 2026

The lender reported a net profit after tax of 8.94 billion Egyptian pounds for the first half of 2026. Net interest income reached 18.79 billion Egyptian pounds, while net fee and commission income totaled 3.42 billion Egyptian pounds. Total assets stood at 561.22 billion Egyptian pounds as of June 30, supported by gross loans of 280.25 billion Egyptian pounds and total deposits of 443.87 billion Egyptian pounds. Total equity reached 66.82 billion Egyptian pounds.

The bank recorded an annualized net interest margin of 7.4% and a return on average equity of 27.6% during the first half of the year. Total capital adequacy registered at 22.1%. The liquidity coverage ratio and net stable funding ratio stood at 841% and 172% respectively at the end of June.

Multi-Year Transformation and Digital Expansion

The upcoming listing follows a transformation program launched in 2018. Over that period, the current account savings account ratio rose from 35.2% in 2017 to 53.4% of total deposits by mid-2026. The cost-to-income ratio improved from 48.7% to 35.9%, and the non-performing loan ratio declined from 5.0% to 3.7%, or 2.5% when excluding legacy loans.

The institution operates a network of 242 branches, accounting for planned openings, and 2,205 ATMs across all 27 governorates, serving approximately 3.2 million customers. Mobile banking users reached one million with transaction volumes totaling 24.5 billion Egyptian pounds in the first half of 2026. Point-of-sale terminals expanded from 571 in 2022 to 13,410 by mid-2026, processing 13.8 billion Egyptian pounds in transactions, while QaheraCash mobile wallet users totaled 471,000. In July 2026, the bank migrated its core banking system to Temenos Transact R22.

We are pleased to announce our intention to float Banque du Caire on the Egyptian Exchange, marking an important milestone in the Bank’s long-standing history.

Hussein Abaza, Banque du Caire Managing Director and Chief Executive Officer

Loan Portfolio and Macroeconomic Backdrop

Corporate direct loans amounted to 115 billion Egyptian pounds as of June 30, while retail loans excluding microfinance totaled 98.1 billion Egyptian pounds. Small and medium-sized enterprise loans reached 20.9 billion Egyptian pounds across 10,585 customers. Microfinance loans stood at 8.8 billion Egyptian pounds for roughly 145,000 customers, capturing a 14.0% market share as of May according to I-Score. The Financial Institutions division held 69 billion Egyptian pounds in assets, and Treasury and Capital Markets managed 212.2 billion Egyptian pounds.

The announcement coincides with broader macroeconomic reforms in Egypt, where nominal GDP reached $365 billion in 2025 and the International Monetary Fund forecasts a 4.9% compound annual growth rate from 2026 to 2030. Net international reserves climbed to $56.3 billion in July, and credit default swap rates improved. Despite these indicators, the Egyptian banking sector remains underpenetrated, with only 43% of the population over the age of 15 holding bank accounts in 2024.

Regulatory Approvals and Subscription Timeline

Management aims to drive cross-selling initiatives and grow non-interest banking income, which accounted for 17.8% of net banking income in 2025. The bank also plans to monetize its non-borrowing customer base and expand tailored solutions for mid-cap clients to increase market share.

Whether regulatory clearances from the Financial Regulatory Authority and the Egyptian Exchange will be finalized in time to maintain the targeted late October subscription window remains the immediate operational question for the bank.