By Staff Writer
Emirates NBD's planned acquisition of HSBC Bank Egypt's retail banking business is expected to increase the country's contribution to the UAE banking group's deposit base, according to EFG Hermes.
The deal will raise Egypt's contribution to Emirates NBD Group's total deposits to approximately 2.6% from the current 1.5%, EFG Hermes analysts said on Monday.
The acquisition is expected to increase Emirates NBD's deposit base in Egypt by 77% to EGP327.5 billion ($6.5 billion) from EGP184.7 billion, while its net loan book will grow 18% to EGP122 billion from EGP103.3 billion.
The bank's branch network in Egypt will expand to 107 branches from 64 following the transaction, according to the analysts, citing financial statements of the two banks.
The combined deposit base would be broadly in line with that of Abu Dhabi Islamic Bank Egypt, which reported deposits of EGP332 billion at the end of June 2026 across 80 branches.
Despite the increase, Emirates NBD's deposit market share in Egypt is expected to remain relatively small at around 2%, up from 1.2%, in a banking sector where large state-owned lenders control more than half of total assets.
Egypt is one of Emirates NBD's key markets outside the UAE, alongside Turkey and India. Turkey accounts for about 13% of the group's total deposits, while India's RBL Bank contributes around 5%, according to EFG Hermes.
(Writing by Brinda Darasha; Editing by Seban Scaria)