REG - Commercial Int Bank - 1Q25 Press Release

Commercial International Bank Egypt CIBAnnouncement

13/05/2025 07:00

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RNS Number : 4191I  Commercial Intnl Bank (Egypt) SAE  13 May 2025

 

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News Release

12 May 2025

COMMERCIAL INTERNATIONAL BANK ("CIB") REPORTS

FIRST-QUARTER 2025 CONSOLIDATED REVENUE OF EGP 27.0 BILLION AND NET INCOME OF
EGP 16.6 BILLION, OR EGP 4.83 PER SHARE, UP 39% FROM FIRST-QUARTER 2024

·    First-Quarter 2025 Consolidated Financial Results

o  Net income of EGP 16.6 billion, up 39% year-on-year (YoY)

o  Revenues of EGP 27.0 billion, up 24% YoY

o  Return on average equity (ROAE) of 42.8%

o  Return on average assets (ROAA) of 5.37%

o  Efficiency ratio of 14.5%

o  Net interest margin (NIM) 1  (#_ftn1) of 9.09%

·    Balance Sheet Performance

o  Total tier capital recorded EGP 182 billion, or 26.8% of risk-weighted
assets.

o  CBE local currency liquidity ratio of 55.0%, foreign currency liquidity
ratio of 75.1% (comfortably above CBE requirements of 20% and 25%,
respectively)

o  CIB remains well above the 100% requirement in the Basel III NSFR and LCR
ratios.

o  High quality of funding, with customer deposits comprising 91% of total
liabilities

o  Non-performing loans coverage ratio of 337%

·    Supporting our Economy

o  Funding to businesses and individuals recorded EGP 426 billion, growing by
7% over first-quarter 2025, with a loan market share of 4.77%(( 2  (#_ftn2)
)).

o  Deposits recorded EGP 996 billion, growing by 3% over first-quarter 2025,
with a deposit market share of 7.12%(2).

o  Loan-to-Deposit Ratio recorded 42.7% by end of first-quarter 2025.

o  In first-quarter 2025, CIB's operations generated EGP 7.42 billion in
corporate, payroll and other taxes.

·    Committed to our Community

o  CIB Foundation disbursed the first installment to "Egyptian Clothing Bank"
to support the manufacturing and distribution of 100 thousand clothing units
for children in remote areas.

o  CIB Foundation financed "Magdi Yacoub Heart Foundation" to perform 125
pediatric open-heart surgeries and 125 catheterizations.

o  CIB Foundation contributed to the operating costs and medications of the
"Children Cancer Hospital 57357".

o  CIB Foundation sponsored "Ain Shams University Children's Hospital" to
establish a Bone Marrow Transplant Unit for children.

o  CIB Foundation financed "Mabara Masr El Kadima" to establish a Pediatric
Cardiology Unit.

o  CIB Foundation collaborated with "Maghrabi Foundation" to perform
pediatric eye surgeries.

·    Awards & Rankings

o  Global Finance:

§ Best FX Bank in Egypt

§ Best Bank for Sustainable Finance in Emerging Markets

§ Best Bank for Sustainability Transparency

§ Best Private Bank Award

§ Best SME Bank Award

§ Best Trade Finance Award

§ Lifetime Achievement Award

o  MEED:

§ Best SME Bank in Egypt

§ Excellence in Supply Chain Financing

CAIRO - Commercial International Bank (EGX: COMI) today reported first-quarter
2025 consolidated net income of EGP 16.6 billion, or EGP 4.83 per share, up by
39% from first-quarter 2024.

Management Commented: "CIB started off 2025 on a positive note, following an
eventful year marked with considerable macroeconomic dynamics as well as
exceptional financial performance for CIB, further reiterating the Bank's
solid fundamentals and prime reliance on core performance drivers. This came
evident in Bottom Line growing by 39%, or 30% in US Dollar terms, and in Top
Line growing by 24% or 15% in US Dollar terms, from first-quarter 2024.

The aforesaid materialized as Management continued with its strategy of
growing the Bank's funding base, while maintaining controlled cost of funding.
As such, CIB grew its local currency deposit base by an impressive 24% or EGP
112 billion, as well as its foreign currency deposit base by 20% or USD 1.35
billion, over the year, with 64% or EGP 131 billion of Total Deposit
acquisitions coming in Current and Saving Accounts (CASA), which maintained
its contribution to Total Deposits at a healthy 56%. This, along with a
well-articulated allocation of funds that balances between liquidity and
profitability, reflected into maintaining margins, with Net Interest Margin
(NIM) remaining amongst the highest in market at 9.09%.

Lending activity came even further remarkable, with local currency loans
growing by a record 52% or EGP 103 billion over the year, of which EGP 22
billion came in the first quarter of 2025. Lending growth was primarily driven
by Corporate Banking, predominantly in the Services Sector, while
simultaneously continuing to exceed the required minimum stipulated by CBE for
funding to Small-and-Medium-Sized-Enterprises (SMEs) at 27%, paralleled with
strong growth in Retail Loans, mostly in Personal Loans and Credit Cards. With
that, CIB continued to mark the largest Private-Sector lender in the Egyptian
Banking Sector, upholding a Gross Loan Portfolio of EGP 426 billion by end of
first-quarter 2025, and of EGP 455 billion when further accounting for
Securitization Deals. Accordingly, the Gross-Loan-to-Deposit Ratio for CIB
reached 42.7%, and 45.6% after accounting for Securitization Deals, and with
that pertaining to local currency reaching a record-high of 57.3%, including
Securitization Deals. This strong loan growth came while maintaining the
highest-in-market Coverage for Expected Losses at 10.7%, compared to a Market
Coverage of 6.7%, and while preserving the Bank's Capital Adequacy Ratio (CAR)
at a comfortable level of 26.8%. Despite the adequate capital buffer above
minimum regulatory requirements, the return to CIB Shareholders remained
amongst the highest in the market, with Return on Average Equity (ROAE)
recording 43%.

Notwithstanding that strong growth in loans, this quarter witnessed a
significant slowdown in CIB provision accumulations. Since last year,
Management has been conducting thorough study and examination of the Bank's
Expected Credit Loss (ECL) Model with External Auditors, upon which it has
concluded that the ECL Calculation approach adopted through the past several
years has proven to be prudently conservative, even during the volatile,
hectic conditions, which reflected into a Loan Coverage Ratio that is much
higher than industry averages. This necessitated recalibrating the ECL
Calculation in a way that would better reflect the current economic reality,
resulting in a more balanced and better-reflecting provisioning level, hence
aligning with the Bank's prudent risk management strategy, while
simultaneously adapting to the evolving macroeconomic environment.
Accordingly, this quarter, CIB recorded lower provisions compared to previous
periods, primarily driven by the adoption of a more moderate ECL Calculation,
in response to improving economic conditions and positive stability signals
observed across key market macro indicators. This has been communicated to the
CBE, who granted their initial approval on the Recalibrated ECL Calculation,
with the final approval awaiting a Third-party Model Validation, according to
the applied CBE rules, and with the process expected to be finalized by end of
the second quarter of 2025. It is worth highlighting that even upon excluding
Provisions, Bottom Line recorded YoY growth of 27%.

Moving forward, Management remains committed to remain diligent in sensibly
assessing the need to book further provisions that may arise upon either or
both of macroeconomic variations and risk assessment inferences, while
remaining committed to the Bank's role in supporting the economy through
individual and corporate financing within the scope of its prudent risk
management and operational evolution."

FIRST-QUARTER 2025 FINANCIAL HIGHLIGHTS

 

REVENUES

First-quarter 2025 standalone revenues were EGP 26.8 billion, up 23% from
first-quarter 2024, on the back of 35% increase in net interest income,
partially pulled-down by 50% decrease in non-interest income.

 

 

 

NET INTEREST INCOME

First-quarter 2025 standalone net interest income recorded EGP 25.3 billion,
increasing by 35% YoY, generated at 9.09% Total NIM1, with Local Currency NIM1
recording 13.2%, coming 173 basis points (bp) higher YoY, while Foreign
Currency NIM1 recorded 2.82%, decreasing by 140bp YoY.

NON-INTEREST INCOME

First-quarter 2025 standalone non-interest income recorded EGP 1.54 billion,
coming 50% lower YoY. Trade service fees recorded EGP 848 million, growing by
29% YoY, with outstanding balance of EGP 287 billion 3  (#_ftn3) .

OPERATING EXPENSE

First-quarter 2025 standalone operating expense recorded EGP 3.75 billion, up
32% YoY. Cost-to-income reported 14.0%, coming 98bp higher YoY, yet remaining
comfortably below the desirable level of 30%.

LOANS

Gross loan portfolio recorded EGP 426 billion, growing by 7% over
first-quarter 2025, with local currency loans increasing by 8% or EGP 22.4
billion, together with foreign currency loans increasing by 4% or USD 87.9
million. CIB's loan market share reached 4.77% as of December 2024, with
private corporate loan market share recording 9.24%.

DEPOSITS

Deposits recorded EGP 996 billion, growing by 3% over first-quarter 2025, with
local currency deposits increasing by 3% or EGP 18.9 billion, together with
foreign currency deposits adding 3% or USD 225 million. CIB's deposit market
share recorded 7.12% as of December 2024.

ASSET QUALITY

Standalone non-performing loans represented 3.07% of the gross loan portfolio,
and were covered 337% by the Bank's EGP 44.1 billion loan loss provision
balance. First-quarter 2025 impairment charge for credit losses recorded EGP
68.5 million compared to EGP 1.48 billion in first-quarter 2024.

CAPITAL AND LIQUIDITY

Total tier capital recorded EGP 182 billion, or 26.8% of risk-weighted assets
as of March 2025. Tier I capital reached EGP 155 billion, or 85% of total tier
capital. CIB maintained its comfortable liquidity position above CBE
requirements and Basel III guidelines in both local currency and foreign
currency. CBE liquidity ratios remained well above the regulator's
requirements, with local currency liquidity ratio recording 55.0% by end of
March 2025, compared to the regulator's threshold of 20%, and foreign currency
liquidity ratio reaching 75.1%, above the threshold of 25%. NSFR was 233% for
local currency and 250% for foreign currency, and LCR was 1503% for local
currency and 392% for foreign currency, comfortably above the 100% Basel III
requirement.

KEY METRICS AND BUSINESS UPDATES(( 4  (#_ftn4) ))

o  #1 private-sector bank in Egypt in terms of revenues, net income,
deposits, loans, and total assets.

INSTITUTIONAL BANKING

o  End-of-period gross loans recorded EGP 333 billion.

o  End-of-period deposits recorded EGP 336 billion.

o  Gross outstanding contingent business reached EGP 295 billion.

BUSINESS BANKING

o  End-of-period gross loans recorded EGP 13 billion.

o  End-of-period deposits recorded EGP 90 billion.

o  Gross outstanding contingent business reached EGP 5.7 billion.

RETAIL INDIVIDUALS BANKING

o  End-of-period gross loans recorded EGP 80 billion.

o  End-of-period deposits recorded EGP 570 billion.

o  CIB continued to expand its network to reach a total of 201 branches and
13 units across Egypt, supported by a network of 1,396 ATMs.

 CONSOLIDATED FINANCIAL HIGHLIGHTS
 Income Statement            1Q25               4Q24          QoQ Change        1Q24           YoY Change
                             EGP million        EGP million   (1Q25 vs. 4Q24)   EGP million   (1Q25 vs. 1Q24)
 Net Interest Income        25,396             25,381         0%               18,800         35%
 Non-Interest Income        1,643              1,609          2%               3,057          -46%
 Net Operating Income       27,039             26,991         0%               21,857         24%
 Non-Interest Expense       (3,932)            (4,715)        -17%             (2,929)        34%
 Total Provisions*          (405)              (3,761)        -89%             (1,454)        -72%
 Net Profit before Tax      22,702             18,514         23%              17,474         30%
 Income Tax                 (6,480)            (6,341)        2%               (5,926)        9%
 Deferred Tax               411                736            -44%             377            9%
 Net Profit for the Period  16,633             12,909         29%              11,925         39%
 Non-Controlling Interest   1.4                60.4           -98%             0.5            206%
 Bank's Shareholders        16,632             12,848         29%              11,924         39%

 Financial Indicators        1Q25               4Q24           QoQ Change       1Q24           YoY Change
                                                              (1Q25 vs. 4Q24)                 (1Q25 vs. 1Q24)
 Profitability
 ROAE                       42.8%              35.3%          21%              49.9%          -14%
 ROAA                       5.37%              4.40%          22%              5.26%          2%
 Efficiency
 Cost-to-Income             14.5%              17.5%          -17%             13.4%          9%
 Liquidity
 Gross Loans-to-Deposits    42.8%              41.4%          4%               39.7%          8%
 Asset Quality
 NPLs-to-Gross Loans        3.14%              3.30%          -5%              4.35%          -28%
 Capital Adequacy Ratio     26.8%              24.1%          11%              25.2%          6%

*Total Provisions include "Impairment release (charges) for credit losses" and
"Release (charges) of other provisions", reported under "Other operating
income (expenses)".

 

 STANDALONE FINANCIAL HIGHLIGHTS
 Income Statement          1Q25              4Q24          QoQ Change        1Q24           YoY Change
                           EGP million       EGP million   (1Q25 vs. 4Q24)   EGP million   (1Q25 vs. 1Q24)
 Net Interest Income      25,296            25,290         0%               18,760         35%
 Non-Interest Income      1,537             1,484          4%               3,101          -50%
 Net Operating Income     26,833            26,774         0%               21,862         23%
 Non-Interest Expense     (3,749)           (4,538)        -17%             (2,840)        32%
 Total Provisions*        (386)             (3,709)        -90%             (1,514)        -75%
 Net Profit before Tax    22,699            18,526         23%              17,507         30%
 Income Tax               (6,514)           (6,317)        3%               (5,722)        14%
 Deferred Tax             411               661            -38%             162            154%
 Net Profit               16,596            12,871         29%              11,947         39%

 Financial Indicators      1Q25              4Q24           QoQ Change       1Q24           YoY Change
                                                           (1Q25 vs. 4Q24)                 (1Q25 vs. 1Q24)
 Profitability
 ROAE                     43.0%             35.6%          21%              50.2%          -14%
 ROAA                     5.38%             4.43%          22%              5.30%          2%
 NIM**                    9.09%             9.43%          -4%              9.29%          -2%
 Efficiency
 Cost-to-Income           14.0%             17.0%          -18%             13.0%          8%
 Liquidity
 Gross Loans-to-Deposits  42.7%             41.3%          4%               39.6%          8%
 Asset Quality
 NPLs-to-Gross Loans      3.07%             3.24%          -5%              4.28%          -28%
 Direct Coverage Ratio    337%              351%           -4%              307%           10%

*Total Provisions include "Impairment release (charges) for credit losses" and
"Release (charges) of other provisions", reported under "Other operating
income (expenses)".

**NIM based on managerial accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                               Consolidated                                       Standalone

 BALANCE SHEET
                                               Mar-25         Dec-24         YtD Change           Mar-25         Dec-24         YtD Change
                                                EGP million    EGP million   (Mar-25 Vs. Dec-24)   EGP million    EGP million   (Mar-25 Vs.

Dec-24)
 Cash and Balances at The Central Bank         68,811         136,531        -50%                 67,710         136,166        -50%
 Due from Banks                                314,306        270,830        16%                  314,145        270,089        16%
 Net Loans and Advances                        380,384        353,098        8%                   377,940        350,511        8%
 Derivative Financial Instruments              931            820            14%                  931            820            14%
 Financial Investments                         450,405        402,630        12%                  447,415        400,307        12%
 Investments in Associates and Subsidiaries    35             98             -64%                 853            872            -2%
 Other Assets                                  48,014         50,966         -6%                  47,661         50,554         -6%
 Total Assets                                  1,262,885      1,214,973      4%                   1,256,655      1,209,319      4%
 Due to Banks                                  4,321          2,035          112%                 4,052          2,318          75%
 Customer Deposits                             1,000,618      972,596        3%                   996,120        967,895        3%
 Other Liabilities                             99,729         87,523         14%                  99,617         87,419         14%
 Total Liabilities                             1,104,668      1,062,154      4%                   1,099,788      1,057,632      4%
 Shareholders' Equity & Net Profit             157,951        152,636        3%                   156,866        151,686        3%
 Non-Controlling Interest                      266            183            46%                  0              0              NM
 Total Liabilities & Shareholders' Equity      1,262,885      1,214,973      4%                   1,256,655      1,209,319      4%

 

 1  (#_ftnref1) Based on standalone managerial accounts.

 2  (#_ftnref2) As of December 2024; latest available CBE data at time of
publishing.

 3  (#_ftnref3) Net of Collateral, Gross of Provisions.

 4  (#_ftnref4) 1) Loan, deposit, and outstanding contingent balances are
based on managerial accounts. 2) Outstanding contingent balances are gross of
collateral and provisions.

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