Privatization has been advocated as a central part of the Egyptian economic reform program targeted to encourage a more effective participation of the private sector in most economic fields. The paper addresses the Egyptian privatization agenda, the progress of the privatization program, and structure of Egyptian banking system and the privatization of the financial sector. It also examines the pre-and post-privatization performance of state-owned commercial banks in Egypt (Alexandria Bank), using a combination of data for five years before and five years after privatization. In Egypt, the choice between the different methods of privatization is determined on a case-by-case basis. The CAMEL approach (Capital, Asset, Management Efficiency, Earnings, and Liquidity) has been adopted by applying three ratios under each category for five years before and five years after privatization. The performance of the bank of Alexandria after privatization on average is significantly better at the level of capital adequacy and earnings. The mean of asset quality and the mean of liquidity are lower after privatization but this stand for better performance as a result of substantial reduction of operating expenses and more investments. The management efficiency is almost the same before and after privatization. There is a significant difference between performance of the two stages and most likely in favor of privatization. Despite the criticism targeted to the Egyptian privatization program, the paper found positive consequences of privatization, particularly post-privatization performance.