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Hisham Ezz Al Arab, CEO of Commercial International Bank – Egypt (CIB), emphasized that the banking sector is the backbone of any economy, stressing that profitability is not an end in itself but a prerequisite for enabling banks to expand capital, increase financing and investment, and serve communities more efficiently.

Speaking during an interview with Al Arabiya Business at the World Economic Forum in Davos, Ezz Al Arab highlighted global and local economic trends, noting the potential risks posed by geopolitical uncertainty and the importance of stable banking institutions.

Key insights from the discussion include:

• Banks’ strength and profitability are crucial for fulfilling their developmental and societal roles.

• Digital transformation, artificial intelligence, and technology will reshape banking operations, improve efficiency, and reduce manual processes, while human oversight remains essential for trust and customer service.

• Egypt’s economy shows positive macroeconomic trends, with monetary policy successfully reducing inflation and maintaining a fair exchange rate.

• Interest rates are expected to decline further in 2026, potentially by 600 basis points, enhancing business predictability.

• Measures for managing hot money inflows aim to mitigate potential shocks without threatening reserves.

• Banks’ regulatory compliance has strengthened, with stricter oversight of lending practices.

• CIB’s loan-to-deposit ratio in local currency stands at 71%, reflecting sound liquidity management.

• Dividend policies are under review and may increase in line with reduced risks and growth opportunities.

Ezz Al Arab underscored that economic stability and bank profitability enable institutions to contribute effectively to growth, investment, and societal development, rather than focusing solely on short-term profits.