REG - Commercial Int Bank - Earnings Release 3Q.2024
04/11/2024 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241104:nRSD7507Ka&default-theme=true
RNS Number : 7507K Commercial Intnl Bank (Egypt) SAE 03 November 2024
News Release
03 November 2024
COMMERCIAL INTERNATIONAL BANK ("CIB") REPORTS
THIRD-QUARTER 2024 CONSOLIDATED REVENUE OF EGP 25.3 BILLION AND NET INCOME OF
EGP 14.8 BILLION, OR EGP 4.34 PER SHARE, UP 77% FROM THIRD-QUARTER 2023
· Third-Quarter 2024 Consolidated Financial Results
o Net income of EGP 14.8 billion, up 77% year-on-year (YoY)
o Revenues of EGP 25.3 billion, up 83% YoY
o Return on average equity (ROAE) of 46.0%
o Return on average assets (ROAA) of 5.44%
o Efficiency ratio of 13.2%
o Net interest margin (NIM) 1 of 9.46%
· Nine-Months 2024 Consolidated Financial Results
o Net income of EGP 42.3 billion, up 89% YoY
o Revenues of EGP 71.5 billion, up 82% YoY
o ROAE of 49.4%
o ROAA of 5.78%
o Efficiency ratio of 12.8%
o NIM1 of 9.50%
· Balance Sheet Performance
o Total tier capital recorded EGP 161 billion, or 29.1% of risk-weighted
assets.
o CBE local currency liquidity ratio of 43.2%, foreign currency liquidity
ratio of 73.5% (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 92% of total
liabilities
o Non-performing loans coverage ratio of 289%
· Supporting our Economy
o Funding to businesses and individuals recorded EGP 353 billion, growing by
33% over nine-months 2024, or 15% net of the EGP devaluation impact, with a
loan market share of 4.62%(( 2 )).
o Deposits recorded EGP 897 billion, growing by 33% over nine-months 2024,
or 13% net of the EGP devaluation impact, with a deposit market share of
6.94%(2).
o Loan-to-Deposit Ratio recorded 39.4% by end of nine-months 2024.
o In third-quarter 2024, CIB's operations generated EGP 6.37 billion in
corporate, payroll, and other taxes.
· Committed to our Community
o CIB Foundation supported "Ahl Misr Hospital" in outfitting the Pediatric
Department.
o CIB Foundation fully sponsored "Raie Misr Foundation" to cover the cost of
900 medical pediatric convoys.
o CIB Foundation fully financed "Ibrahim A. Badran Foundation" to cover for
48 medical convoys and the operating costs of fixed clinics.
o CIB Foundation provided "Al-Hassan Foundation for Differently-Abled
Inclusion" with the second installment to purchase 100 customized wheelchairs
and 100 electric chairs.
o CIB Foundation provided "Maghrabi Foundation" with the second installment
to fund pediatric eye surgeries.
o CIB Foundation fully supported "Banha University Hospital" to cover for
the operating costs of the PICU and NICU.
· Awards & Rankings
o Global Finance:
§ Best FX Bank in Egypt
§ Best Bank for Sustainable Finance in Emerging Markets for Africa
§ Best Bank for Sustainable Finance in Egypt
§ Best Private Bank in Egypt
§ Best Bank in Egypt
§ Best Bank for Collections in Africa
§ Best Overall Bank for Cash Management
§ Market Leader for Treasury and Cash Management
o MEED:
§ Cash Manager of the Year in MENA Region
§ Best Digital Bank in Egypt
o EMEA:
§ Best Financial Institution for Syndicated Loans in North Africa
§ Best Securitization House in Africa
§ Best Telecommunications Deal - Etisalat Egypt - Loan Facilities for CAPEX
Programs
§ Best Property Deal - Orascom for Real Estate - Syndicated Loan
o Euromoney:
§ Market Leader for Corporate Social Responsibility (CSR) in Egypt
§ Market Leader for SME Banking in Egypt
§ Market Leader for ESG
§ Highly-Regarded Investment Banking
§ Market Leader for Corporate Banking
§ Market Leader for Digital Solutions
§ Best Bank in Egypt
§ Best Digital Bank in Egypt
§ Best Bank for ESG in Egypt
§ Best Bank for FX in Egypt
CAIRO - Commercial International Bank (EGX: COMI) today reported third-quarter 2024 consolidated net income of EGP 14.8 billion, or EGP 4.34 per share, up by 77% from third-quarter 2023.
Management Commented: "CIB ended the third quarter of 2024 on a positive note,
growing its top line by 83% over last year and by a healthy 4% over last
quarter, signaling a strong closure for the year. In a quarter that exhibited
relative macroeconomic stability, this upheld financial performance comes as a
further testament to the true metal of CIB, as it came primarily backed by
genuine and organic growth in business acquisitions, while simultaneously not
compromising on spreads and margins, which Management deems as the Bank's core
sustainable stream of revenue growth.
Deposits grew by a decent 5% or EGP 39.0 billion over the quarter, with local
currency deposits growing by 4%, adding EGP 18.6 billion, and foreign currency
deposits growing by 5%, adding USD 382 million. This came while maintaining a
healthy share of Current and Saving Accounts (CASA) of 55% to Total Deposits,
which is an ongoing Management strategy that continues to reap its fruits in
controlling the Bank's cost of funds and maintaining its margins, which,
coupled with the effective recalibration of the Bank's balance sheet in
accommodation for the dynamic interest-rate environment, fed into record Net
Interest Margin (NIM) of 9.50%, growing by 214 basis points (bps) over last
year.
Lending growth came even more impressive, with local currency loans growing by
a record 12%, adding EGP 25.2 in the quarter, and cumulatively translating
into 37% growth or EGP 65.7 billion net loan acquisitions over last year. With
that, Gross Loans for CIB recorded EGP 353 billion, marking the largest lender
among private-sector Banks, and EGP 381 billion when further accounting for
Securitization Deals. Thereupon, the Gross-Loan-to-Deposit ratio for CIB
reached 39.4%, and with that pertaining to local currency hitting an
all-time-high of 51%, after accounting for Securitization Deals amounting to
EGP 27.8 billion. In view of that strong lending and trade business growth,
and going apace with the Bank's customary prudent risk management, Impairment
Charge for Credit Losses for third-quarter of 2024 recorded EGP 1.69 billion,
more than double the provisions accrued for last quarter, which represents the
prime reason behind the quarter-on-quarter decrease in bottom line.
This remarkable core business growth came to pass while maintaining the Bank's
top-notch solvency and asset quality, with Non-Performing Loans (NPLs)
representing 4.39% of Gross Loans, down from 5.04% last year, and with Loan
Loss Provision Balance recording EGP 44.7 billion, covering 12.7% of the
Bank's Gross Loan Portfolio. Likewise, Coverage for Unexpected Losses remained
affluent, evidenced in CIB recording a market-high Capital Adequacy Ratio
(CAR) of 29.1%, which comes accommodating for the Bank's growth,
transformation and expansion plans. The entirety of that affected while
delivering a Return on Average Equity (ROAE) of 49.4%, further attesting the
commitment of the Bank's Management to safeguard the interests of both current
and future shareholders, which comes also evidenced in CIB recording
impressive year-on-year bottom line growth of 21% in US Dollar terms.
Moving forward, Management remains positive about the Bank's growth prospects,
with special regard to plans to expand the business pie and invest in more
productive areas, and with due focus attended to reengineering the Bank's
processes and to heading further towards digitization, further safeguarding
its market-leading position, while maintaining its sound financial performance
and healthy solvency along."
THIRD-QUARTER 2024 FINANCIAL HIGHLIGHTS
REVENUES
Third-quarter 2024 standalone revenues were EGP 25.2 billion, up 98% from
third-quarter 2023. Nine-months 2024 standalone revenues were EGP 71.4
billion, up 87% from nine-months 2023, on the back of 74% increase in net
interest income, coupled with 9x increase in non-interest income.
NET INTEREST INCOME
Nine-months 2024 standalone net interest income recorded EGP 65.5 billion,
increasing by 74% YoY, generated at 9.50% Total NIM1, which increased by 214
basis points (bp) YoY, with Local Currency NIM1 recording 12.9%, coming 363bp
higher YoY, while Foreign Currency NIM1 recorded 3.56%, coming 23bp lower YoY.
NON-INTEREST INCOME
Nine-months 2024 standalone non-interest income recorded EGP 5.88 billion,
coming 9x higher YoY. Trade service fees recorded EGP 2.60 billion, growing by
47% YoY, with outstanding balance of EGP 282 billion 3 .
OPERATING EXPENSE
Nine-months 2024 standalone operating expense recorded EGP 8.80 billion, up
40% YoY. Cost-to-income 4 reported 12.2%, coming 328bp lower YoY, and
remaining comfortably below the desirable level of 30%.
LOANS
Gross loan portfolio recorded EGP 353 billion, growing by 33% over nine-months
2024, with real growth of 15% net of the EGP devaluation impact, which added
EGP 41.7 billion to the EGP equivalent balance. Growth was driven wholly by
local currency loans, increasing by 27% or EGP 51.6 billion, sufficiently
counterbalancing net foreign currency loan repayments of 5% or USD 127
million. CIB's loan market share reached 4.62% as of May 2024.
DEPOSITS
Deposits recorded EGP 897 billion, growing by 33% over nine-months 2024, with
real growth of 13% net of the EGP devaluation impact, which added EGP 119
billion to the EGP equivalent balance. Growth was driven by local currency
deposits, increasing by 15% or EGP 67.9 billion, together with foreign
currency deposits adding 10% or USD 707 million. CIB's deposit market share
recorded 6.94% as of May 2024.
ASSET QUALITY
Standalone non-performing loans represented 4.39% of the gross loan portfolio,
and were covered 289% by the Bank's EGP 44.7 billion loan loss provision
balance. Nine-months 2024 impairment charge for credit losses recorded EGP
3.74 billion compared to EGP 1.25 billion in nine-months 2023.
CAPITAL AND LIQUIDITY
Total tier capital recorded EGP 161 billion, or 29.1% of risk-weighted assets
as of September 2024. Tier I capital reached EGP 136 billion, or 84% 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 43.2% by end of
September 2024, compared to the regulator's threshold of 20%, and foreign
currency liquidity ratio reaching 73.5%, above the threshold of 25%. NSFR was
270% for local currency and 211% for foreign currency, and LCR was 1645% for
local currency and 401% for foreign currency, comfortably above the 100% Basel
III requirement.
KEY METRICS AND BUSINESS UPDATES(( 5 ))
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 were EGP 268 billion, 35% higher Year-to-Date
(YtD), with real growth of 12% net of the EGP devaluation impact,
predominantly on 28% growth in local currency loans.
o End-of-period deposits were EGP 304 billion, 23% higher YtD, with real
growth of 4% net of the EGP devaluation impact, backed by foreign currency
deposits increasing by 9%, whereas local currency deposits came in flat YtD.
o Gross outstanding contingent business reached EGP 293 billion, 63% higher
YtD.
BUSINESS BANKING
o End-of-period gross loans were EGP 11 billion, 29% higher YtD, wholly on
29% growth in local currency loans.
o End-of-period deposits were EGP 83 billion, 39% higher YtD, with real
growth of 20% when excluding the EGP devaluation impact, mainly on 26% growth
in local currency deposits, coupled with 10% growth in foreign currency
deposits.
o Gross outstanding contingent business reached EGP 4.7 billion, 27% higher
YtD.
RETAIL INDIVIDUALS BANKING
o End-of-period gross loans were EGP 74 billion, 25% higher YtD, with real
growth of 24% net of the EGP devaluation impact, wholly on 25% growth in local
currency loans.
o End-of-period deposits were EGP 510 billion, 38% higher YtD, with real
growth of 18% net of the EGP devaluation impact, driven by growth in local and
foreign currency deposits by 22% and 12%, respectively.
o CIB continued to expand its network to reach a total of 194 branches and
15 units across Egypt, supported by a network of 1,381 ATMs.
CONSOLIDATED FINANCIAL HIGHLIGHTS
Income Statement 3Q24 2Q24 QoQ Change 3Q23 YoY Change 9M24 9M23 YoY Change
EGP million EGP million (3Q24 vs. 2Q24) EGP million (3Q24 vs. 3Q23) EGP million EGP million (9M24 vs. 9M23)
Net Interest Income 24,146 22,737 6% 13,838 74% 65,683 37,731 74%
Non-Interest Income 1,148 1,692 -32% 11 NM 5,864 1,594 268%
Net Operating Income 25,294 24,429 4% 13,849 83% 71,547 39,325 82%
Non-Interest Expense (3,382) (2,870) 18% (2,205) 53% (9,181) (6,502) 41%
Impairment Charge for Credit Losses (1,693) (631) 168% (34) NM (3,745) (1,217) 208%
Net Profit before Tax 20,219 20,928 -3% 11,610 74% 58,622 31,607 85%
Income Tax (5,709) (5,572) 2% (3,792) 51% (17,208) (9,540) 80%
Deferred Tax 291 267 9% 535 -46% 934 393 138%
Net Profit from Continued Operations 14,801 15,622 -5% 8,353 77% 42,348 22,459 89%
Net Profit from Discontinued Operations 0.0 0.0 NM (0.1) NM 0.0 (50) NM
Net profit 14,801 15,622 -5% 8,353 77% 42,348 22,409 89%
Non-Controlling Interest (0.4) (0.1) 204% (0.1) 158% (0.0) 3.3 NM
Bank's Shareholders 14,801 15,623 -5% 8,353 77% 42,348 22,406 89%
Financial Indicators 3Q24 2Q24 QoQ Change 3Q23 YoY Change 9M24 9M23 YoY Change
(3Q24 vs. 2Q24) (3Q24 vs. 3Q23) (9M24 vs. 9M23)
Profitability
ROAE 46.0% 56.8% -19% 45.8% 0.3% 49.4% 41.2% 20%
ROAA 5.44% 6.14% -11% 4.16% 31% 5.78% 4.13% 40%
Efficiency
Cost-to-Income 13.2% 11.7% 13% 14.6% -9% 12.8% 15.6% -18%
Liquidity
Gross Loans-to-Deposits 39.5% 38.7% 2% 38.2% 3% 39.5% 38.2% 3%
Asset Quality
NPLs-to-Gross Loans 4.43% 4.13% 7% 5.08% -13% 4.43% 5.08% -13%
Capital Adequacy Ratio 29.1% 26.2% 11% 21.4% 36% 29.1% 21.4% 36%
STANDALONE FINANCIAL HIGHLIGHTS
Income Statement 3Q24 2Q24 QoQ Change 3Q23 YoY Change 9M24 9M23 YoY Change
EGP million EGP million (3Q24 vs. 2Q24) EGP million (3Q24 vs. 3Q23) EGP million EGP million (9M24 vs. 9M23)
Net Interest Income 24,086 22,680 6% 13,797 75% 65,526 37,587 74%
Non-Interest Income 1,137 1,678 -32% (1,074) NM 5,885 647 809%
Net Operating Income 25,223 24,358 4% 12,723 98% 71,411 38,234 87%
Non-Interest Expense (3,227) (2,728) 18% (2,133) 51% (8,795) (6,304) 40%
Impairment Charge for Credit Losses (1,681) (578) 191% (36) NM (3,741) (1,249) 200%
Net Profit before Tax 20,315 21,053 -4% 10,554 92% 58,875 30,681 92%
Income Tax (5,709) (5,533) 3% (3,771) 51% (16,964) (9,541) 78%
Deferred Tax 269 217 24% 805 -67% 647 591 9%
Net Profit 14,874 15,737 -5% 7,589 96% 42,557 21,732 96%
Financial Indicators 3Q24 2Q24 QoQ Change 3Q23 YoY Change 9M24 9M23 YoY Change
(3Q24 vs. 2Q24) (3Q24 vs. 3Q23) (9M24 vs. 9M23)
Profitability
ROAE 46.5% 57.7% -19% 41.5% 12% 49.8% 40.0% 25%
ROAA 5.49% 6.22% -12% 3.79% 45% 5.83% 4.02% 45%
NIM* 9.46% 9.72% -3% 7.46% 27% 9.50% 7.36% 29%
Efficiency
Cost-to-Income 12.7% 11.1% 14% 15.3% -17% 12.2% 15.5% -21%
Liquidity
Gross Loans-to-Deposits 39.4% 38.6% 2% 38.2% 3% 39.4% 38.2% 3%
Asset Quality
NPLs-to-Gross Loans 4.39% 4.08% 8% 5.04% -13% 4.39% 5.04% -13%
Direct Coverage Ratio 289% 314% -8% 233% 24% 289% 233% 24%
*NIM based on managerial accounts
BALANCE SHEET
Consolidated Standalone
Balance Sheet Sep-24 Dec-23 YtD Change Sep-24 Dec-23 YtD Change
EGP million EGP million (Sep-24 vs. EGP million EGP million (Sep-24 vs.
Dec-23)
Dec-23)
Cash & Due from Central Bank 94,569 71,888 32% 94,286 71,747 31%
Due from Banks 305,236 231,085 32% 304,041 230,709 32%
Net Loans & Overdrafts 307,367 235,808 30% 305,232 234,647 30%
Financial Derivatives 1,770 1,105 60% 1,770 1,102 61%
Financial Investment Securities 371,326 271,466 37% 369,208 270,138 37%
Investments in Associates and Subsidiaries 107 116 -7% 872 672 30%
Other Assets 39,584 23,397 69% 39,247 23,512 67%
Total Assets 1,119,958 834,866 34% 1,114,656 832,527 34%
Due to Banks 3,800 12,458 -69% 3,821 12,427 -69%
Customer Deposits 900,967 677,237 33% 896,692 675,310 33%
Other Liabilities 76,785 54,529 41% 76,702 54,490 41%
Total Liabilities 981,552 744,225 32% 977,215 742,227 32%
Shareholders' Equity & Net Profit 138,284 90,481 53% 137,441 90,300 52%
Non-Controlling Interest 123 160 -23% 0 0 NM
Total Liabilities & Shareholders' Equity 1,119,958 834,866 34% 1,114,656 832,527 34%
1 Based on standalone managerial accounts.
2 As of May 2024; latest available CBE data at time of publishing.
3 Net of Collateral, Gross of Provisions.
4 Cost-to-income is calculated using revenues after adding/deducting back
other provision charged/released.
5 1) Loan, deposit, and outstanding contingent balances are based on
managerial accounts. 2) Growth in foreign currency balances is in real terms,
excluding the effect of EGP devaluation by EGP 17.40 YtD. 3) Outstanding
contingent balances are gross of collateral and provisions.
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 QRTFSAFADELSESFRecent news on Commercial International Bank Egypt CIB
See all newsREG - Commercial Int Bank - Changes to the Board of Directors
AnnouncementREG - Commercial Int Bank - Consolidated Financial Position at March 31.2025
AnnouncementREG - Commercial Int Bank - 1Q25 Press Release
AnnouncementREG - Commercial Int Bank - Separate- Q12025
AnnouncementREG - Commercial Int Bank - Ordinary General Assembly Resolutions Summary 2025
Announcement