Egypt Reports Strong H1 Growth Across Its Non-Bank Financial Sector
Egypt’s non-bank financial sector recorded broad-based growth in the first half of 2026, with insurance, mortgage finance, consumer lending, leasing, and factoring all posting annual gains, according to the Financial Regulatory Authority.
Total securities issuances approved between January and June reached 269.8 billion Egyptian pounds ($5.3 billion), down 30.7 percent from 389.1 billion pounds a year earlier, largely due to a sharp decline in equity issuances. Insurance premiums collected rose 15.7 percent year on year to 65.7 billion pounds, while mortgage finance climbed 24.9 percent to 27.6 billion pounds.
This growth came even as the Central Bank of Egypt maintained elevated borrowing costs to keep inflation in check. In its July statement, the bank’s Monetary Policy Committee left key interest rates unchanged while projecting real GDP growth of about 5 percent for fiscal year 2025-26. Annual headline inflation eased to 14.3 percent in June. The FRA said its report was compiled to capture key indicators across the capital market, insurance, mortgage finance, financial leasing, factoring, consumer finance, and financing for small, medium, and micro enterprises, along with the movable collateral registry.
Consumer and SME financing led the sector’s expansion. Consumer financing surged 88.5 percent year on year to 71.8 billion pounds, serving 8.47 million customers, up sharply from 4.82 million a year earlier — a 75.7 percent increase. Electronics and vehicle purchases made up the largest shares of June financing, at 26.5 percent and 19.2 percent respectively.
Financing for micro, small, and medium enterprises rose to 54.2 billion pounds from 49.2 billion pounds, benefiting 1.34 million customers. Microfinance alone reached 44.9 billion pounds, up from 40.9 billion pounds, with women accounting for more than half of beneficiaries across both segments.
Leasing and factoring activity also gained ground. Financial leasing contracts totaled 90.6 billion pounds across 1,045 contracts, up 7.3 percent year on year, with real estate and land making up the largest share. Factoring rose 32.3 percent to 78 billion pounds, driven mainly by local discounting activity.
On the capital market side, the EGX30 index closed June at 50,487.96 points, up 20.7 percent year to date, while the market capitalization of listed shares climbed 56.9 percent year on year to 3.68 trillion pounds. Total trading value across equities, bonds, and treasury bills reached 12.5 trillion pounds in the first half of the year, marking a 58.1 percent annual increase.
The FRA noted that the figures remain subject to revision as companies report subsequent adjustments, settlements, and cancellations.
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