Egypt’s Prime Minister, Moustafa Madbouly, has firmly denied recent media reports suggesting that Banque du Caire is set to be sold, labeling these claims as “baseless.” During a press conference on Wednesday, March 19, 2025, Madbouly clarified the government’s plans for the bank, emphasizing that the sale rumors were unfounded.
Instead, the Prime Minister reiterated that the government intends to proceed with a public offering of Banque du Caire’s shares as part of its broader economic strategy. This offering is in line with Egypt’s announced plans for public sector privatization, a move designed to boost economic growth and attract private investment.
“The sale of Banque du Caire is not on the table,” Madbouly said. “What is underway is the implementation of our strategy for a public offering of shares, which will be carefully evaluated through an ongoing due diligence process.”
The Prime Minister went on to explain that a consultancy firm had been appointed to conduct an in-depth review of the bank’s current value. This review, he noted, would reflect the most recent market developments and provide a comprehensive analysis of the bank’s financial standing.
“This due diligence process is a thorough evaluation of Banque du Caire’s assets and operations, which will guide the government’s decision on the most optimal strategy for offering shares, whether to a strategic investor or through the stock market,” Madbouly added.
While the exact percentage of shares to be offered is still under consideration, Madbouly emphasized that the decision will be made after completing the due diligence process, ensuring transparency and alignment with Egypt’s long-term economic objectives. The government aims to maximize the value of the bank while protecting national interests.
The clarification comes after growing concerns within Egypt’s Parliament regarding a potential sale of the bank, particularly following reports that Emirates NBD, a major UAE-based lender, was authorized by the Central Bank of Egypt (CBE) to conduct an audit in preparation for a possible acquisition.
On the other hand, Parliamentarian Maha Abdel Nasser recently raised questions regarding the proposed acquisition, urging the government to provide more clarity on the matter. In a statement to Ahraminfo, Abdel Nasser highlighted Banque du Caire’s strong financial performance, noting that the bank had recorded net profits of 12.4 billion Egyptian pounds for the fiscal year 2024, reflecting an 86% growth compared to 2023. This raised concerns about the rationale behind selling a highly profitable asset.
“The decision to privatize public financial institutions, especially banks, must be based on clear and transparent economic principles that serve the national interest,” Abdel Nasser said. “We must ensure that any sale, if it happens, maximizes benefits for Egypt and takes into account the long-term economic health of the country.”
In response, the Prime Minister reaffirmed that the public offering was designed to generate substantial revenue for the government while maintaining the bank’s strategic role in Egypt’s financial system. He confirmed that the bank’s strong financial performance would be factored into the pricing strategy for the public offering.
Created in 1952, Banque du Caire is one of Egypt’s oldest and most influential financial institutions. It boasts an extensive network across the country, with deposits exceeding 347 billion Egyptian pounds and loans and facilities of around 187.4 billion pounds as of September 2024.
The public offering of Banque du Caire’s shares is part of a broader government initiative to divest from certain state-owned assets and raise up to $2.5 billion by the end of the current fiscal year, which concludes in June 2025. This is in line with Egypt’s commitment under an agreement with the International Monetary Fund (IMF) to privatize 32 public-sector enterprises and expand private sector ownership as part of an economic reform program. As Egypt moves forward with this privatization strategy, the exact future of Banque du Caire remains a subject of public interest and debate.
