REG - Commercial Int Bank - CIB1H2022 Earnings Release

Commercial International Bank Egypt CIBAnnouncement

25/07/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220725:nRSY5287Ta&default-theme=true

RNS Number : 5287T  Commercial Intnl Bank (Egypt) SAE  25 July 2022

News Release

24 July 2022

COMMERCIAL INTERNATIONAL BANK ("CIB") REPORTS

SECOND-QUARTER 2022 CONSOLIDATED REVENUE OF EGP 6.90 BILLION AND NET INCOME OF
EGP 3.51 BILLION, OR EGP 1.58 PER SHARE, UP 9% FROM SECOND-QUARTER 2021

 

·    Second-Quarter 2022 Consolidated Financial Results

o  Net income of EGP 3.51 billion, up 9% year-on-year (YoY)

o  Revenues of EGP 6.90 billion, up 8% YoY

o  Return on average equity of 21.5%

o  Return on average assets of 2.68%

o  Efficiency ratio of 21.7%

o  Net interest margin (NIM) 1  (#_ftn1) of 5.91%

·    First-Half 2022 Consolidated Financial Results

o  Net income of EGP 7.76 billion, up 28% YoY

o  Revenues of EGP 14.7 billion, up 16% YoY

o  Return on average equity of 23.1%

o  Return on average assets of 3.04%

o  Efficiency ratio of 20.6%

o  NIM1 of 5.79%

·    Resilient Balance Sheet

o  Total tier capital recorded EGP 73.6 billion, or 28.8% of risk-weighted
assets

o  CBE local currency liquidity ratio of 62.8%, foreign currency liquidity
ratio of 66.2% (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 94% of total
liabilities

o  Non-performing loans coverage ratio of 209%

·    Supporting our Economy

o  Funding to businesses and individuals recorded EGP 191 billion, growing by
17% over first-half 2022, or 11% net of the EGP devaluation impact, with a
loan market share of 5.19%(( 2  (#_ftn2) )).

o  Deposits recorded EGP 428 billion, growing by 5% over first-half 2022, or
1% net of the EGP devaluation impact, with a deposit market share of 6.13%(2).

o  Loan-to-Deposit Ratio recorded 44.8% by end of first-half 2022.

o  In second-quarter 2022, CIB's operations generated EGP 2.05 billion in
corporate, payroll, and other taxes.

·    Committed to our Community

o  CIB Foundation financed "The Egyptian Naval Forces New Children's
Hospital" in Alexandria with the needed amount to purchase new equipment and
furnish the Hospital.

o  CIB Foundation subsidized "Egyptian Clothing Bank" with the first
installment to manufacture 50,000 training suits and 50,000 shoe pairs.

o  CIB Foundation funded "Magdi Yacoub Heart Foundation" with the fourth
installment to cover 200 open-heart surgeries and 345 catheterization
procedures.

o  CIB Foundation financed "Ibrahim A.Badran Foundation" with the third
installment to support "Our Kids Our Future" Campaign with medical convoys.

o  CIB Foundation, in collaboration with, "Rotary Giza Metropolitan" funded
"El Kasr El Eini Hospital" to cover 38 open-heart surgeries.

·    Awards & Rankings

o  Global Finance:

§ Best Trade Finance Providers in Egypt for 2022

§ World's Best Foreign Exchange Providers 2022

§ Best Bank in Egypt

§ Best Trade Finance Provider in Egypt

§ Best Treasury and Cash Management Providers in Egypt.

o  The Digital Banker:

§ Best Bank for Payment Services

§ Best Transaction Banking

§ Best Bank for Cash Management

o  Euromoney:

§ Best Bank for Digital Solutions in Egypt

§ Best Bank in Egypt

§ Country Awards Best Bank for SME Banking in Egypt

§ Regional Awards Middle East's Best Bank for SMEs

o  EMEA Finance:

§ Best Green Bond in Africa

§ Best Structured Finance Deal in Africa

§ Best Local Currency Loan

o  MENA

§ Sustainable Bank of the Year

CAIRO - Commercial International Bank (EGX: COMI) today reported
second-quarter 2022 consolidated net income of EGP 3.51 billion, or EGP 1.58
per share, up 9% from second-quarter 2021.

Management commented: "CIB concluded the first half of 2022 with remarkable
performance drawing on a resilient Egyptian Economy that was able to control
the inflationary pressures and pave the way for an encouraging local
consumption and a recovery in investment, despite a much fluid global
macroeconomic environment.

Throughout the first half, CIB recorded top and bottom line growth of 16% and
28%, respectively, year-on-year (YoY). On the lending side, CIB managed to
grow its local currency loan book by 20% or EGP 23 billion over the first
half, with around 60% of this amount booked in the second quarter, signaling a
gradual pickup in short-term working capital loan demand following a period of
justified slow borrowing appetite. Catering to Trade Finance activities, the
Bank was well-positioned to avail sufficient foreign currency, assisted in
this by its flexible balance sheet structure Management has been building over
the years, and proactive Treasury Management, which consequently allowed for
efficient allocation of funds in light of interest rate and foreign exchange
dynamics. Moreover, CIB managed to preserve its margins at 5.79%, despite the
competitive environment, a further testament to Management's focus on
safeguarding the returns of both current and future shareholders.

CIB continued its deposit gathering momentum, which came in stronger in the
second quarter, recording a healthy 11% growth YoY, with a healthy share of
Current and Saving Accounts (CASA) amounting to 56% of Total Deposits, in line
with the Bank's funding strategy.

The Bank's coverage levels, for both expected and unexpected losses, remain
reassuring, with loan loss provisions covering 10% of the Bank's gross loan
portfolio and with Capital Adequacy Ratio (CAR) resting comfortably at 29%.
This further affirms the Bank's healthy coverage and prudent risk management
maintained over the years."

 

 

 

SECOND-QUARTER 2022 FINANCIAL HIGHLIGHTS

REVENUES

Second-quarter 2022 standalone revenues were EGP 7.03 billion, up 11% from
second-quarter 2021. First-half 2022 standalone revenues were EGP 14.7
billion, up 16% from first-half 2021, mostly driven by 17% increase in net
interest income, coupled with 6% increase in non-interest income.

NET INTEREST INCOME

First-half 2022 standalone net interest income recorded EGP 13.7 billion,
increasing by 17% YoY, generated at 5.79% Total NIM1, increasing by 14 basis
points (bp) YoY, with Foreign Currency NIM1 recording 1.43%, coming 54bp
higher YoY, and Local Currency NIM1 recording 7.41%, coming in flat YoY.

NON-INTEREST INCOME

First-half 2022 standalone non-interest income recorded EGP 968 million,
coming 6% higher YoY. Upon adding back other provision charged, which is
normally deducted from Non-Interest Income as part of Other Operating
Expenses, recording EGP 1.24 billion for first-half 2022 and EGP 367 million
for first-half 2021, standalone non-interest income grew by 72% YoY. Trade
service fees were EGP 470 million, growing by 20% YoY, with outstanding
balance of EGP 112 billion 3  (#_ftn3) .

OPERATING EXPENSE

First-half 2022 standalone operating expense was EGP 3.23 billion, up 11% YoY.
Cost-to-income reported 20.3%, 220bp lower YoY 4  (#_ftn4) , remaining
comfortably below the desirable level of 30%.

LOANS

Gross loan portfolio recorded EGP 191 billion, growing by 17% Year-to-Date
(YtD), with real growth of 11% net of the EGP devaluation impact, which added
EGP 9.60 billion to the EGP equivalent balance. Growth was driven wholly by
local currency loans, growing by 20% or EGP 23.5 billion, sufficiently
counterbalancing net foreign currency loan repayments by 9% or USD 265
million. CIB's loan market share reached 5.19% as of March 2022.

DEPOSITS

Deposits recorded EGP 428 billion, growing by 5% YtD, with real growth of 1%
net of the EGP devaluation impact, which added EGP 18.5 billion to the EGP
equivalent balance. Growth was driven wholly by foreign currency deposits
adding 4% or USD 249 million, covering net local currency deposit outflows by
1% or EGP 1.74 billion. CIB's deposit market share recorded 6.13% as of March
2022, maintaining the highest deposit market share among all private-sector
banks.

ASSET QUALITY

CIB maintained its resilient asset quality. Standalone non-performing loans
represented 4.84% of the gross loan portfolio, covered 209% by the Bank's EGP
19.3 billion loan loss provision balance. First-half 2022 loan loss provision
expense recorded EGP 14.4 million compared to loan loss provision expense of
EGP 1.02 billion in first-half 2021.

CAPITAL AND LIQUIDITY

Total tier capital recorded EGP 73.6 billion, or 28.8% of risk-weighted assets
as of June 2022. Tier I capital reached EGP 64.7 billion, or 88% 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 local currency liquidity ratio remained well above the
regulator's 20% requirement, recording 62.8% as of June 2022, while CBE
foreign currency liquidity ratio reached 66.2%, above the threshold of 25%.
NSFR was 223% for local currency and 200% for foreign currency, and LCR was
857% for local currency and 292% for foreign currency, comfortably above the
100% Basel III requirement.

KEY METRICS AND BUSINESS UPDATES(( 5  (#_ftn5) ))

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

INSTITUTIONAL BANKING

o  End-of-period gross loans were EGP 140 billion, 17% higher YtD, wholly
backed by 22% growth in local currency loans.

o  End-of-period deposits were EGP 147 billion, 6% higher YtD, wholly driven
by 5% growth in foreign currency deposits.

o  Gross outstanding contingent business reached EGP 116 billion, 22% higher
YtD.

BUSINESS BANKING

o  End-of-period gross loans were EGP 5 billion, 50% higher YtD, solely on
51% growth in local currency loans.

o  End-of-period deposits were EGP 51 billion, 23% higher YtD, driven by 24%
growth in foreign currency deposits and 18% growth in local currency
deposits.

o  Gross outstanding contingent business reached EGP 3.51 billion, 31% higher
YtD.

RETAIL INDIVIDUALS BANKING

o  End-of-period gross loans were EGP 46 billion, 15% higher YtD, wholly on
16% growth in local currency loans.

o  End-of-period deposits were EGP 230 billion, 2% higher YtD, wholly on 1%
growth in foreign currency deposits.

o  CIB continued to expand its network to reach a total of 190 branches and
23 units across Egypt, supported by a network of 1,292 ATMs.

 CONSOLIDATED FINANCIAL HIGHLIGHTS
 Income Statement            2Q22           1Q22          QoQ Change        2Q21           YoY Change       1H22          1H21            YoY Change
                             EGP million    EGP million   (2Q22 vs. 1Q22)   EGP million   (2Q22 vs. 2Q21)   EGP million    EGP million   (1H22 vs. 1H21)
 Net Interest Income        7,011          6,717          4%               6,019          16%              13,729         11,697         17%
 Non-Interest Income        (116)          1,057          NM               341            NM               941            929            1%
 Net Operating Income       6,896          7,774          -11%             6,360          8%               14,670         12,626         16%
 Non-Interest Expense       (1,599)        (1,671)        -4%              (1,471)        9%               (3,270)        (2,946)        11%
 Loan Loss Provision        (113)          39             NM               (318)          -65%             (74)           (1,020)        -93%
 Net Profit before Tax      5,183          6,142          -16%             4,571          13%              11,325         8,660          31%
 Income Tax                 (1,642)        (1,373)        20%              (1,382)        19%              (3,014)        (2,591)        16%
 Deferred Tax               (21)           (510)          -96%             25             NM               (531)          19             NM
 Net profit                 3,521          4,260          -17%             3,215          10%              7,780          6,088          28%
 Minority Interest          9.6            15.4           -38%             (2.1)          NM               15.5           (1.7)          NM
 Net Profit After Minority  3,511          4,244          -17%             3,217          9%               7,765          6,090          28%

 Financial Indicators        2Q22           1Q22           QoQ Change       2Q21           YoY Change       1H22          1H21            YoY Change
                                                          (2Q22 vs. 1Q22)                 (2Q22 vs. 2Q21)                                (1H22 vs. 1H21)
 Profitability
 ROAE                       21.5%          25.3%          -15%             21.0%          2%               23.1%          19.9%          16%
 ROAA                       2.68%          3.32%          -19%             2.81%          -5%              3.04%          2.72%          12%
 Efficiency
 Cost-to-Income             21.7%          19.6%          11%              22.3%          -3%              20.6%          22.7%          -9%
 Liquidity
 Gross Loans-to-Deposits    44.9%          41.6%          8%               38.8%          16%              44.9%          38.8%          16%
 Asset Quality
 NPLs-to-Gross Loans        4.84%          4.89%          -1%              5.69%          -15%             4.84%          5.69%          -15%
 Capital Adequacy Ratio     28.8%          30.6%          -6%              32.0%          -10%             28.8%          32.0%          -10%

 

 STANDALONE FINANCIAL HIGHLIGHTS
 Income Statement        2Q22           1Q22           QoQ Change           2Q21              YoY Change          1H22             1H21               YoY

                                                                                                                                                      Change
                         EGP million    EGP million   (2Q22 vs. 1Q22)       EGP million      (2Q22 vs. 2Q21)      EGP million       EGP million      (1H22 vs. 1H21)
 Net Interest Income    7,093          6,603          7%                   5,997             18%                 13,695            11,673            17%
 Non-Interest Income    (59)           1,027          NM                   323               NM                  968               914               6%
 Net Operating Income   7,034          7,629          -8%                  6,320             11%                 14,663            12,587            16%
 Non-Interest Expense   (1,688)        (1,545)        9%                   (1,446)           17%                 (3,233)           (2,919)           11%
 Loan loss provision    (55)           41             NM                   (317)             -83%                (14)              (1,019)           -99%
 Net Profit before Tax  5,291          6,124          -14%                 4,557             16%                 11,415            8,649             32%
 Income Tax             (1,735)        (1,375)        26%                  (1,381)           26%                 (3,111)           (2,590)           20%
 Deferred Tax           (21)           (510)          -96%                 25                NM                  (531)             19                NM
 Net Profit             3,534          4,240          -17%                 3,201             10%                 7,774             6,077             28%

 

 Financial Indicators      2Q22    1Q22    QoQ Change       2Q21    YoY Change       1H22   1H21    YoY

                                                                                                   Change
                                          (2Q22 vs. 1Q22)          (2Q22 vs. 2Q21)                 (1H22 vs. 1H21)
 Profitability
 ROAE                     21.6%   25.3%   -14%             21.0%   3%               23.1%   19.9%  16%
 ROAA                     2.71%   3.33%   -19%             2.80%   -3%              3.05%   2.72%  12%
 NIM*                     5.91%   5.66%   4%               5.62%   5%               5.79%   5.65%  2%
 Efficiency
 Cost-to-Income           22.5%   18.4%   22%              22.0%   2%               20.3%   22.5%  -10%
 Liquidity
 Gross Loans-to-Deposits  44.8%   41.5%   8%               38.7%   16%              44.8%   38.7%  16%
 Asset Quality
 NPLs-to-Gross Loans      4.84%   4.90%   -1%              5.71%   -15%             4.84%   5.71%  -15%
 Direct Coverage Ratio    209%    218%    -4%              204%    2%               209%    204%   2%

*NIM based on managerial accounts

                                               Consolidated                                       Standalone
 BALANCE SHEET                                 Jun-22         Dec-21         YtD Change           Jun-22         Dec-21         YtD Change
                                                EGP million    EGP million   (Jun-22 Vs. Dec-21)   EGP million    EGP million   (Jun-22 Vs. Dec-21)
 Cash & Due from Central Bank                  41,970         43,492         -3%                  41,845         43,385         -4%
 Due from Banks                                56,928         80,142         -29%                 56,971         79,991         -29%
 Net Loans & Overdrafts                        171,927        145,887        18%                  170,919        145,078        18%
 Financial Derivatives                         877            225            289%                 877            225            289%
 Financial Investment Securities               236,815        213,987        11%                  235,567        212,951        11%
 Investments in Associates and Subsidiaries    211            205            3%                   1,064          1,014          5%
 Other Assets                                  14,735         14,296         3%                   14,373         14,006         3%
 Total Assets                                  523,463        498,236        5%                   521,616        496,651        5%
 Due to Banks                                  2,959          866            242%                 2,970          863            244%
 Customer Deposits                             428,866        407,242        5%                   427,556        406,101        5%
 Other Liabilities                             25,591         20,826         23%                  25,546         20,759         23%
 Total Liabilities                             457,416        428,933        7%                   456,072        427,723        7%
 Shareholders' Equity & Net Profit             65,522         68,848         -5%                  65,545         68,928         -5%
 Minority Interest                             525            455            15%                  0              0              NM
 Total Liabilities & Shareholders' Equity      523,463        498,236        5%                   521,616        496,651        5%

Click on, or paste the following link into your web browser, to view the
associated PDF document

 http://www.rns-pdf.londonstockexchange.com/rns/5287T_1-2022-7-24.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5287T_1-2022-7-24.pdf)

 1  (#_ftnref1) Based on managerial accounts.

 2  (#_ftnref2) As of March 2022; latest available CBE data at time of
publishing.

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

 4  (#_ftnref4) Cost-to-income is calculated using revenues after
adding/deducting back other provision charged/released.

 

 5  (#_ftnref5) Loan, deposit, and outstanding contingent balances are based
on managerial accounts.

 Outstanding contingent balances are gross of collateral and provisions.

 Growth in foreign currency balances is in real terms, excluding the effect
of EGP depreciation by EGP 3.1 over first-half 2022.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  IR DGGDRISDDGDS