United Bank Settles EGP 3.8 Billion in Bad Debts Since 2012
United Bank of Egypt has finalized settlements worth EGP 3.8 billion since 2012, according to Chairman Mohamed Ashmawy. Of the total, EGP 2.482 billion has been fully repaid, while EGP 238 million is being paid in regular installments, and EGP 1.2 billion is in the process of being settled through asset transfers to the bank.
Ashmawy made the announcement during the inauguration of the bank’s new library — Egypt’s first specialized library in banking sciences, with a focus on Islamic finance and Sharia-compliant banking research.
He noted that EGP 2.2 billion in non-performing loans (NPLs) remains outstanding, largely tied to bankrupt clients or those who have fled the country without repaying their debts. He praised the efforts of the bank’s legal and debt recovery departments in expediting the transfer of collateral ownership to the bank and recovering overdue payments.
To address chronic delays in judicial liquidations, Ashmawy emphasized the need for clear legal frameworks and maximum timelines for bankruptcy proceedings, which can currently drag on for years. He also called for greater government intervention to support distressed borrowers, such as waiving taxes or social insurance obligations, beyond just providing technical assistance. Such measures, he said, would help ensure the success of initiatives like the national program for reviving stalled factories.
Looking ahead, Ashmawy said United Bank will focus on improving operational performance and expanding its market share, especially now that it has closed a provisioning gap of EGP 6.5 billion. In 2024, the bank achieved net returns of EGP 597 million, with 78.4% allocated to cover remaining provisions.
Founded in 2006 by a decision from the Central Bank of Egypt, United Bank was formed through the merger of three troubled banks: Nile Bank, the former United Bank, and the Islamic Bank for Investment and Development. It currently has a paid-in capital of EGP 1 billion.