Egypt’s banking sector is showing renewed strength after years of economic shocks. Banks generated combined net profits of $4.4 billion in the first quarter of 2026, according to the Central Bank of Egypt. Strong earnings have been supported by high interest rates, improved foreign-exchange conditions, greater financial inclusion, and renewed international investment. The recovery has revived long-stalled plans to privatize state-owned banks, with the successful 2024 IPO of United Bank seen as an early signal of progress. Banque du Caire could be next, having posted a 16% rise in quarterly net income, with Bank of Alexandria and Arab African International Bank also potential options. Analysts note that risks remain, particularly the sector’s reliance on high interest rates rather than core lending growth, but say improving macroeconomic conditions make renewed privatization efforts more plausible than in the past.