European Banks Daily

Research evidence excerpt

European Banks Daily

J P M O R G A N Europe Equity Research

04 August 2026

4 Aug 2026

Daily Valuation Sheet | Banks Analyser & Global Banks and Fintech Valuation European Banks

ACWeekly sheet | *EMEA Banks 2Q Results Calendar: Jul-Aug 2026* Kian Abouhossein

(44-20) 7134-4575

Research kian.abouhossein@jpmorgan.com

J.P. Morgan Securities plc

EMEA

Specialist Sales contact details:

Gigi Sparling - Specialist Sales -

Emirates NBD:HSBC Egypt retail acquisition is a sensible bolt-on; small on European Financials

earnings but bigger on optionality (44-20) 7134-0355

Mehmet Sevim (971) 4428-1784 ghislaine.sparling@jpmorgan.com

Our Take: Emirates NBD (Not Rated) announced yesterday the acquisition of HSBC

Egypt’s retail banking business, subject to regulatory approvals and expected to close

2H27. The transaction looks like a strategically sensible but financially small bolt-on

that deepens ENBD’s presence in Egypt. Financial terms and the exact perimeter have

not been disclosed. The strategic relevance comes from HSBC Egypt’s c.$2.5bn of

retail deposits against ~$390mn of retail loans; a 16% LDR and a deposit-asset ratio

>6x hand ENBD Egypt a large and sticky funding base alongside premium customer

relationships. The earnings contribution looks modest, with retail segment net profit

of $72mn in FY25 roughly 1% of ENBD Group, but HSBC Egypt’s total profit was

~5% of ENBD Group in FY26, so EPS accretion could run higher depending on the

final transaction perimeter. Egypt has long been a target market for ENBD alongside

four other core markets, and with previously reported interest in (the significantly

more sizeable) Banque du Caire not materializing, this reads as a well-placed bolt-on

at a manageable capital cost. ENBD shares trade at 7.8x FY27E P/E and 1.1x P/TBV