Electronic copy available at: https://ssrn.com/abstract=2890284 1 The Impact of Intellectual Capital on the Performance of the Egyptian Banks Nader Alber Professor of Finance, Faculty of Commerce, Ain Shams University, Cairo, Egypt. Ramez Shaklab MSc, Faculty of Commerce, Ain Shams University, Cairo, Egypt. Abstract The research aims at identifying the impact of intellectual capital on the performance of Egyptian banks. Intellectual capital is measured by value added intellectual capital VAIC, value- added intellectual capital coefficient components, market to book value and Tobin’s Q, while banking performance is measured according to CAMELS approach. Results indicate that there is a significant impact of intellectual capital on capital adequacy, asset quality, earnings and liquidity in Egyptian banks. This has been conducted using panel data analysis according to fixed effect technique as applied on a sample of 13 banks listed in the Egyptian exchange during the period from 2010 to 2014. Key words: asset quality, capital adequacy, earnings, Egyptian banks, intellectual capital, liquidity. 1. Introduction: The performance of Egyptian banks witnessed several changes during the period from 2010 to 2014. Table 1 illustrates these major developments according to CAMEL approach, as follows: Table 1: Development of Egyptian banking performance from 2010 to 2014 Item indicator 2010 2011 2012 2013 2014 Capital Adequacy Capital/Assets 0.088222 0.084563 0.075659 0.06907 0.059798 Equity/Assets 0.185251 0.168516 0.166085 0.167042 0.161896 Capital/Deposits 0.104867 0.103916 0.092707 0.081524 0.066085 Asset Quality Provisions/Loans 5.925349 8.0658 6.33781 9.298132 13.10598 Provisions/Assets 0.00902 0.008196 0.008303 0.007982 0.007786 Earnings Return on Assets 0.003318 0.000735 -0.00074 0.003652 0.003284 Return on Equity 0.007223 -0.00606 -0.07775 0.029418 0.031336 Liquidity Legal Liquidity 0.06989 0.080683 0.051584 0.053734 0.057292 Legal Reserve 0.459091 0.492761 0.472506 0.518055 0.478137 Source: calculated by the researchers using the average of all the banks in the sample.