REG - Commercial Int Bank - 2Q25 Earnings Release

Commercial International Bank Egypt CIBAnnouncement

22/07/2025 07:00

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RNS Number : 9495R  Commercial Intnl Bank (Egypt) SAE  22 July 2025

 

News Release

21 July 2025

COMMERCIAL INTERNATIONAL BANK ("CIB") REPORTS

SECOND-QUARTER 2025 CONSOLIDATED REVENUE OF EGP 27.8 BILLION AND NET INCOME OF
EGP 16.7 BILLION, OR EGP 4.88 PER SHARE, UP 7% FROM SECOND-QUARTER 2024

·    Second-Quarter 2025 Consolidated Financial Results

o  Net income of EGP 16.7 billion, up 7% year-on-year (YoY)

o  Revenues of EGP 27.8 billion, up 13% YoY

o  Return on average equity (ROAE) of 39.9%

o  Return on average assets (ROAA) of 5.17%

o  Efficiency ratio of 14.3%

o  Net interest margin (NIM) 1  (#_ftn1) of 8.79%

·    First-Half 2025 Consolidated Financial Results

o  Net income of EGP 33.3 billion, up 21% YoY

o  Revenues of EGP 54.9 billion, up 18% YoY

o  ROAE of 40.5%

o  ROAA of 5.26%

o  Efficiency ratio of 14.4%

o  NIM1 of 8.94%

·    Balance Sheet Performance

o  Total tier capital recorded EGP 209 billion, or 28.4% of risk-weighted
assets.

o  CBE local currency liquidity ratio of 55.0%, foreign currency liquidity
ratio of 74.0% (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 338%

·    Supporting our Economy

o  Funding to businesses and individuals recorded EGP 496 billion, growing by
24% through first-half 2025, with real growth of 25% net of the EGP
appreciation impact, with a loan market share of 4.72%(( 2  (#_ftn2) )).

o  Deposits recorded EGP 1.04 trillion, growing by 7% through first-half
2025, with real growth of 9% net of the EGP appreciation impact, with a
deposit market share of 6.96%(2).

o  Loan-to-Deposit Ratio recorded 47.7% by end of first-half 2025.

o  In second-quarter 2025, CIB's operations generated EGP 8.57 billion in
corporate, payroll and other taxes.

·    Committed to our Community

o  CIB Foundation funded "Sonaa El Kheir" as part of "L'Misr Initiative" to
provide comprehensive medical care to children in remote areas.

o  CIB Foundation disbursed the first installment to "Al - Naas Hospital for
Children's Heart" to sponsor 125 open-heart surgeries and 125
catheterizations.

o  CIB Foundation financed "Raie Masr" with the second installment to buy 3
outfitted medical convoys and fund the operating costs of 2,200 convoys.

o  CIB Foundation supported the annual operating costs of "Yahiya Arafa
Children's Charity Foundation" to manage 3 units in Ain Shams University
Hospitals.

o  CIB Foundation funded "Egyptian Clothing Bank" to manufacture and
distribute 100 thousand 2-piece clothing sets to underprivileged children.

o  CIB Foundation sponsored "Ahl Masr Foundation" for surgeries and
medications of pediatric burn injuries.

 

 

·    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

§ Best Bank for Cash Management in Egypt

§ Best Sub-Custodian Bank

o  MEED:

§ Best SME Bank in Egypt

§ Excellence in Supply Chain Financing

§ Best Bank in Egypt

§ Best ESG Strategy

§ Best Sustainable Finance Initiative

§ CEO of the Year

o  Finnovex:

§ Excellence in Digital Banking in North Africa

o  African Banker:

§ Best Regional Bank in North Africa

CAIRO - Commercial International Bank (EGX: COMI) today reported
second-quarter 2025 consolidated net income of EGP 16.7 billion, or EGP 4.88
per share, up by 7% from second-quarter 2024.

Management Commented: "Building on a strong start to the year, CIB delivered
another solid set of financial results in the second quarter of 2025, ending
the first half of the year with top and bottom lines of EGP 54.9 billion and
EGP 33.3 billion, growing by 18% and 21%, respectively, over last year. This
materialized despite the easing monetary cycle and backed by the stability
witnessed in the foreign exchange market, in a testament to the true metal of
CIB, as underpinned by strong core business performance. This comes further
evidenced in CIB recording impressive year-on-year (YoY) top- and bottom-line
growth of 14% and 17%, respectively, in US Dollar terms.

Each of the Bank's business lines performed well, with CIB continuing to
support its corporate and individual clients smoothly navigate market
dynamics. Notwithstanding the relative normalization in local currency deposit
market rates, Total Deposit Growth for CIB maintained momentum, growing by a
healthy 21% from last year, with both Retail and Corporate Deposits growing by
22% and 21%, respectively, and with growth driven by continued momentum across
all business segments. This came while simultaneously increasing the share of
Current Accounts and Saving Accounts (CASA) to Total Deposits from 54% last
year to 59% by end of first-half 2025, hence controlling cost of funds and
upholding margins. Meanwhile, Gross Loans grew by an impressive 50%, adding
EGP 165 billion, over last year, with growth primarily driven by Corporate
Loans growing by 57% or EGP 149 billion, of which over 40% came in CAPEX,
while simultaneously continuing to increase the share of lending to
Small-and-Medium-Sized-Enterprises (SMEs), to reach 29%, exceeding the minimum
stipulated by CBE. This came paralleled with strong growth in Retail Loans by
23%, adding EGP 16 billion, mostly in Personal Loans, Credit Cards and
Mortgage Loans. With that, CIB maintained its position as the largest
Private-Sector Lender in the Egyptian Banking Sector, with a Gross Loan
Portfolio of EGP 496 billion by end of first-half 2025, and of EGP 523 billion
when further accounting for Securitization Deals, while securing a
Private-Sector Corporate Loan Market Share of 9.23%.

That strong balance sheet momentum fed into robust top line growth by 18% over
last year, and by 23% upon normalizing for the exceptional Foreign Exchange
Income generated in first-half 2024, driven by robust growth in Net Interest
Income (NII) by 24%, and in Non-Interest Income by a normalized 21%. The
latter was driven largely by genuine growth in the sustainable stream of Net
Fee and Commission Income by 22%, further reflective of the strong lending
activity witnessed through the year, with Loan Fees recording impressive
growth of 42%, coupled with Card Fees almost doubling, from last year,
mirroring an increase of 38% in the Bank's Credit Card Portfolio from end of
first-half 2024.

All of this was backed by a solid digital infrastructure, which allowed CIB to
stand-out in Digital Banking and Alternative Channels, as reflected in the
significant increase in volume and value of transactions, with 1.9 million
users in Online Banking Digital Platforms by end of first-half 2025, recording
a 17% increase from first-half 2024, and with 58% increase in transaction
value, to reach EGP 2.3 trillion across all of the Bank's Digital Channels.

Total Provisions accrued this quarter came within the same range of last
quarter, translating into Total Provisions of EGP 695 million for the first
half of 2025, down from EGP 2.24 billion in the first half of 2024, due mainly
to the adoption of the Recalibrated Expected Credit Loss (ECL) Calculation,
for which the Third-party Model Validation hinted-to last quarter has been
successfully secured and communicated to the CBE, awaiting their approval on
the final impact and recommended detailed treatment. This slowdown in
provision accumulations, coupled with strong lending growth, did not
compromise on the Bank's highest-in-market Coverage for Expected Losses, with
Loan Loss Provision Balance covering 8.9% of the Bank's Gross Loan Portfolio,
12.6% of the Unsecured portion therein, and 338% of Non-Performing Loans
(NPLs). It is worth highlighting that even upon excluding provisions, bottom
line for first-half 2025 recorded a healthy YoY growth of 14%.

Such robust profitability came sufficiently accommodating for the healthy
capital utilization embedded in the strong growth in Risk-Weighted Assets
(RWAs), with CIB ending the period with a Capital Adequacy Ratio (CAR) of
28.4%, and with a Common Equity Tier I (CET1) Capital Ratio of 23.6%. This
solid capital position materialized while securing one of the highest returns
to Shareholders, with Return on Average Equity (ROAE) recording 40.5% for the
first half of 2025.

For the remainder of the year, Management remains optimistic about the
continued economic recovery ahead, while being prepared for a wide range of
scenarios, capitalizing on the Bank's resilient balance sheet structure,
prudent risk management and operational readiness."

SECOND-QUARTER 2025 FINANCIAL HIGHLIGHTS

 

REVENUES

Second-quarter 2025 standalone revenues were EGP 27.8 billion, up 13% from
second-quarter 2024. First-half 2025 standalone revenues were EGP 54.6
billion, up 18% from first-half 2024, backed by 23% increase in net interest
income, partially slowed-down by 30% decrease in non-interest income.

NET INTEREST INCOME

First-half 2025 standalone net interest income recorded EGP 51.2 billion,
increasing by 23% YoY, generated at 8.94% Total NIM1, with Local Currency NIM1
recording 13.1%, coming 51 basis points (bp) higher YoY, while Foreign
Currency NIM1 recorded 2.71%, decreasing by 114bp YoY.

NON-INTEREST INCOME

First-half 2025 standalone non-interest income recorded EGP 3.47 billion,
coming 30% lower YoY. Trade service fees recorded EGP 1.72 billion, growing by
5% YoY, with outstanding balance of EGP 302 billion 3  (#_ftn3) .

OPERATING EXPENSE

First-half 2025 standalone operating expense recorded EGP 7.54 billion, up 35%
YoY. Cost-to-income reported 13.8%, coming 180bp higher YoY, yet remaining
comfortably below the desirable level of 30%.

LOANS

Gross Loans recorded EGP 496 billion, growing by 24% or EGP 96.3 billion
Year-to-Date (YtD), with real growth of 25% or EGP 99.2 billion net of the EGP
appreciation impact, generated by LCY Loan Bookings of 29% or EGP 80.5
billion, together with FCY Loans growing by 16% or USD 377 million. CIB's loan
market share reached 4.72% as of February 2025, with private corporate loan
market share recording 9.23%.

DEPOSITS

Deposits recorded EGP 1.04 trillion, growing by 7% or EGP 72.3 billion YtD,
with real growth of 9% or EGP 82.2 billion net of the EGP appreciation impact,
generated by LCY Deposits adding 8% or EGP 43.1 billion, coupled with FCY
Deposits adding 10% or USD 790 million. CIB's deposit market share recorded
6.96% as of February 2025.

 

ASSET QUALITY

Standalone non-performing loans represented 2.63% of the gross loan portfolio,
and were covered 338% by the Bank's EGP 44.1 billion loan loss provision
balance. First-half 2025 impairment for credit losses recorded a release of
EGP 346 million compared to a charge of EGP 2.06 billion in first-half 2024.

CAPITAL AND LIQUIDITY

Total tier capital recorded EGP 209 billion, or 28.4% of risk-weighted assets
as of June 2025. Tier I capital reached EGP 174 billion, or 83% 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
June 2025, compared to the regulator's threshold of 20%, and foreign currency
liquidity ratio reaching 74.0%, above the threshold of 25%. NSFR was 207% for
local currency and 216% for foreign currency, and LCR was 530% for local
currency and 407% 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 398 billion.

o  End-of-period deposits recorded EGP 345 billion.

o  Gross outstanding contingent business reached EGP 310 billion.

BUSINESS BANKING

o  End-of-period gross loans recorded EGP 14 billion.

o  End-of-period deposits recorded EGP 102 billion.

o  Gross outstanding contingent business reached EGP 6.5 billion.

RETAIL INDIVIDUALS BANKING

o  End-of-period gross loans recorded EGP 84 billion.

o  End-of-period deposits recorded EGP 593 billion.

o  CIB continued to expand its network to reach a total of 200 branches and
13 units across Egypt, supported by a network of 1,452 ATMs.

 

 

 

 

 

 

 CONSOLIDATED FINANCIAL HIGHLIGHTS

 Income Statement            2Q25           1Q25          QoQ               2Q24          YoY               1H25           1H24           YoY

                                                          Change                          Change                                         Change
                             EGP million    EGP million   (2Q25 vs. 1Q25)   EGP million   (2Q25 vs. 2Q24)   EGP million    EGP million   (1H25 vs. 1H24)
 Net Interest Income        25,940         25,396         2%               22,737         14%              51,335         41,537         24%
 Non-Interest Income        1,892          1,643          15%              1,846          3%               3,535          4,903          -28%
 Net Operating Income       27,832         27,039         3%               24,583         13%              54,870         46,440         18%
 Non-Interest Expense       (3,983)        (3,932)        1%               (2,870)        39%              (7,916)        (5,799)        36%
 Total Provisions*          (291)          (405)          -28%             (785)          -63%             (695)          (2,239)        -69%
 Net Profit before Tax      23,558         22,702         4%               20,928         13%              46,260         38,402         20%
 Income Tax                 (6,982)        (6,480)        8%               (5,572)        25%              (13,462)       (11,499)       17%
 Deferred Tax               138            411            -67%             267            -48%             549            644            -15%
 Net Profit for the Period  16,713         16,633         0%               15,622         7%               33,347         27,547         21%
 Non-Controlling Interest   (0.4)          1.4            NM               (0.1)          261%             0.9            0.3            185%
 Bank's Shareholders        16,714         16,632         0%               15,623         7%               33,346         27,547         21%

 Financial Indicators        2Q25           1Q25           QoQ              2Q24           YoY Change       1H25           1H24           YoY

                                                          Change                                                                         Change
                                                          (2Q25 vs. 1Q25)                 (2Q25 vs. 2Q24)                                (1H25 vs. 1H24)
 Profitability
 ROAE                       39.9%          42.8%          -7%              56.8%          -30%             40.5%          52.5%          -23%
 ROAA                       5.17%          5.37%          -4%              6.14%          -16%             5.26%          5.82%          -10%
 Efficiency
 Cost-to-Income             14.3%          14.5%          -2%              11.7%          23%              14.4%          12.5%          16%
 Liquidity
 Gross Loans-to-Deposits    47.7%          42.8%          11%              38.7%          23%              47.7%          38.7%          23%
 Asset Quality
 NPLs-to-Gross Loans        2.68%          3.14%          -15%             4.13%          -35%             2.68%          4.13%          -35%
 Capital Adequacy Ratio     28.4%          26.8%          6%               26.2%          8%               28.4%          26.2%          8%

*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          2Q25           1Q25          QoQ               2Q24          YoY               1H25           1H24           YoY

                                                        Change                          Change                                         Change
                           EGP million    EGP million   (2Q25 vs. 1Q25)   EGP million   (2Q25 vs. 2Q24)   EGP million    EGP million   (1H25 vs. 1H24)
 Net Interest Income      25,855         25,296         2%               22,680         14%              51,151         41,440         23%
 Non-Interest Income      1,933          1,537          26%              1,832          6%               3,469          4,933          -30%
 Net Operating Income     27,788         26,833         4%               24,512         13%              54,621         46,373         18%
 Non-Interest Expense     (3,795)        (3,749)        1%               (2,728)        39%              (7,544)        (5,568)        35%
 Total Provisions*        (293)          (386)          -24%             (731)          -60%             (679)          (2,245)        -70%
 Net Profit before Tax    23,699         22,699         4%               21,053         13%              46,398         38,560         20%
 Income Tax               (6,963)        (6,514)        7%               (5,533)        26%              (13,478)       (11,255)       20%
 Deferred Tax             78             411            -81%             217            -64%             489            378            29%
 Net Profit               16,814         16,596         1%               15,737         7%               33,410         27,683         21%

 Financial Indicators      2Q25           1Q25           QoQ Change       2Q24           YoY Change       1H25           1H24           YoY Change
                                                        (2Q25 vs. 1Q25)                 (2Q25 vs. 2Q24)                                (1H25 vs. 1H24)
 Profitability
 ROAE                     40.4%          43.0%          -6%              57.7%          -30%             40.8%          53.1%          -23%
 ROAA                     5.23%          5.38%          -3%              6.22%          -16%             5.29%          5.88%          -10%
 NIM**                    8.79%          9.09%          -3%              9.72%          -10%             8.94%          9.52%          -6%
 Efficiency
 Cost-to-Income           13.7%          14.0%          -2%              11.1%          23%              13.8%          12.0%          15%
 Liquidity
 Gross Loans-to-Deposits  47.7%          42.7%          12%              38.6%          24%              47.7%          38.6%          24%
 Asset Quality
 NPLs-to-Gross Loans      2.63%          3.07%          -14%             4.08%          -36%             2.63%          4.08%          -36%
 Direct Coverage Ratio    338%           337%           0%               314%           8%               338%           314%           8%

*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                                 Jun-25         Dec-24         YtD Change           Jun-25         Dec-24     YtD Change
                                                EGP million    EGP million   (Jun-25 vs. Dec-24)   EGP million    EGP       (Jun-25 vs. Dec-24)

                                                                                                                 million
 Cash and Balances at the Central Bank         101,492        136,531        -26%                 100,535        136,166    -26%
 Due from Banks                                231,527        270,830        -15%                 231,775        270,089    -14%
 Net Loans and Advances                        450,441        353,098        28%                  447,768        350,511    28%
 Derivative Financial Instruments              1,166          820            42%                  1,166          820        42%
 Financial Investments                         476,059        402,630        18%                  472,511        400,307    18%
 Investments in Associates and Subsidiaries    40             98             -59%                 853            872        -2%
 Other Assets                                  60,370         50,966         18%                  60,015         50,554     19%
 Total Assets                                  1,321,096      1,214,973      9%                   1,314,623      1,209,319  9%
 Due to Banks                                  2,991          2,035          47%                  2,976          2,318      28%
 Customer Deposits                             1,045,325      972,596        7%                   1,040,233      967,895    7%
 Other Liabilities                             95,474         87,523         9%                   95,340         87,419     9%
 Total Liabilities                             1,143,790      1,062,154      8%                   1,138,549      1,057,632  8%
 Shareholders' Equity & Net Profit             177,099        152,636        16%                  176,074        151,686    16%
 Non-Controlling Interest                      207            183            13%                  0              0          NM
 Total Liabilities & Shareholders' Equity      1,321,096      1,214,973      9%                   1,314,623      1,209,319  9%

 

 1  (#_ftnref1) Based on standalone managerial accounts.

 2  (#_ftnref2) As of February 2025; latest available CBE data at time of
publishing.

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

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

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