REG - Commercial Int Bank - H1.2024 Press Release
22/07/2024 07:00
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RNS Number : 1837X Commercial Intnl Bank (Egypt) SAE 21 July 2024
News Release
21 July 2024
COMMERCIAL INTERNATIONAL BANK ("CIB") REPORTS
SECOND-QUARTER 2024 CONSOLIDATED REVENUE OF EGP 24.4 BILLION AND NET INCOME OF
EGP 15.6 BILLION, OR EGP 4.59 PER SHARE, UP 96% FROM SECOND-QUARTER 2023
· Second-Quarter 2024 Consolidated Financial Results
o Net income of EGP 15.6 billion, up 96% year-on-year (YoY)
o Revenues of EGP 24.4 billion, up 81% YoY
o Return on average equity (ROAE) of 56.8%
o Return on average assets (ROAA) of 6.14%
o Efficiency ratio of 11.7%
o Net interest margin (NIM) 1 of 9.72%
· First-Half 2024 Consolidated Financial Results
o Net income of EGP 27.5 billion, up 96% YoY
o Revenues of EGP 46.3 billion, up 82% YoY
o ROAE of 52.5%
o ROAA of 5.82%
o Efficiency ratio of 12.5%
o NIM1 of 9.52%
· Balance Sheet Performance
o Total tier capital recorded EGP 142 billion, or 26.2% of risk-weighted
assets.
o CBE local currency liquidity ratio of 36.8%, foreign currency liquidity
ratio of 68.3% (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 314%
· Supporting our Economy
o Funding to businesses and individuals recorded EGP 331 billion, growing by
24% over first-half 2024, or 8% net of the EGP devaluation impact, with a loan
market share of 4.68%(( 2 )).
o Deposits recorded EGP 858 billion, growing by 27% over first-half 2024, or
8% net of the EGP devaluation impact, with a deposit market share of 6.47%(2).
o Loan-to-Deposit Ratio recorded 38.6% by end of first-half 2024.
o In second-quarter 2024, CIB's operations generated EGP 6.69 billion in
corporate, payroll, and other taxes.
· Committed to our Community
o CIB Foundation financed "The Pediatric Surgery Hospital - Part of Ain
Shams University Integrated Medical City" with the second installment to
augment the Surgical Wing in the Hospital with the required equipment.
o CIB Foundation joined forces with "Sonaa El Kheir" in "Hayah Karima
Initiative" to fund the third round of medical convoys for providing
comprehensive medical services to 176 elementary and middle schools.
o CIB Foundation supported "Children Cancer Hospital 57357" to cover the
operating costs for the treatment of 5,000 children.
o CIB Foundation collaborated with "Al Joud Foundation" to subsidize "Al -
Naas Hospital" with the second installment to cover 160 pediatric open-heart
surgeries and 40 catheterizations.
o CIB Foundation financed "Shifa' Al-Orman Hospital" with the needed amount
to augment the Emergency Department with the latest and most efficient
equipment and medication.
o CIB Foundation endowed "Nile of Hope Hospital" with the needed amount to
fund 65 pediatric open-heart surgeries and 129 catheterizations, together with
the purchase of Heart-Lung Machine.
· 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
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
§ Market Leader for Highly Regarded Investment Banking
§ Market Leader for Corporate Banking
§ Market Leader for Digital Solutions
CAIRO - Commercial International Bank (EGX: COMI) today reported second-quarter 2024 consolidated net income of EGP 15.6 billion, or EGP 4.59 per share, up by 96% from second-quarter 2023.
Management Commented: "Building on a strong start to the year, CIB delivered
another record set of financial results in the second quarter of 2024, ending
the first half of the year with all-time-high top and bottom lines of EGP 46.3
billion and EGP 27.5 billion, growing by 82% and 96%, respectively, over last
year. This further reinstates that last quarter's financial performance
primarily represents genuine growth rather than being the result of currency
depreciation and inflation.
Despite the fact that the external landscape came partially conducive to the
financial results for CIB, as it certainly did across the Banking Sector and
as is typical in inflationary environments, Management yet remains keen on
continuously operating a health-check engine that portrays and places a
scrutinized eye on real and genuine growth. In accordance, it is worth
highlighting that as steep as macroeconomic developments have been, with
special regard to year-round 900 basis-point policy-rate hikes and the 55%
currency depreciation compared to last year, yet genuine growth contributed
more than half of the year-on-year top line growth. Moreover, and specifically
for international investors, year-on-year bottom line growth for CIB in US
Dollar terms recorded 26%.
With the highly-competitive and increasing-interest-rate environment, CIB was
able to achieve the aforementioned results guided by Management's focus on
sustaining the Bank's balance sheet growth momentum while simultaneously
controlling cost of deposits. Notably, CIB grew its local currency deposit
base by 15% or EGP 65.9 billion, and its foreign currency deposit base by 6%
or USD 414 million, over last year, yet at highly-rationalized costs, aided by
maintaining a share of Current and Saving Accounts (CASA) of 54% to total
deposits. This, coupled with capitalizing on the Bank's resilient balance
sheet structure and proactive treasury management, which together allowed for
the efficient allocation of funds in light of interest rate and foreign
exchange dynamics, translated into record Net Interest Margin (NIM) of 9.52%,
expanding by 222 basis points over last year.
Additionally, lending growth for CIB came robust, with the Bank's gross loan
portfolio showing real growth rate of 12% over last year, and 14% when
accounting for Securitization Deals worth EGP 29.1 billion, preserving its
market position as the largest Lender-and-Securitizer among Private-Sector
Banks. This fed into net fee and commission income growth of 33% over last
year, mirroring Management focus on sustainable, rather than transient, stream
of non-interest income. Positively, foreign currency liquidity for CIB clearly
strengthened over the past quarter, with Foreign Currency CBE Liquidity Ratio
coming up from 46.3% by end of last quarter to record 68.3% this quarter, in
line with the improvement witnessed on the Egyptian Banking Sector level.
Business growth took place without compromising the underlying healthy asset
quality and top-notch coverage for expected losses for CIB, as reflected in
normalized provision accumulations compared to last quarter, in light of
relatively stabilizing economic conditions. As such, Non-Performing Loans
(NPLs) represented 4.13% of gross loans, down from 5.07% last year, and loan
loss provision balance recorded EGP 42.6 billion, covering 12.8% of the Bank's
gross loan Portfolio, and 18.4% of the unsecured portion therein.
Return on Average Equity (ROAE) surpassed 50%, recording 52.5%, which comes
while yet remaining well-capitalized, as displayed in a healthy Capital
Adequacy Ratio (CAR) of 26.2%, further reiterating the uncompromised focus of
the Bank's Management on preserving the interests of both current and future
shareholders.
Looking forward, and in light of relatively stabilizing economic conditions,
Management remains cautiously optimistic with confidence in the agility of the
Egyptian Banking Sector to sail through current economic developments, and in
the ability of CIB to safeguard its market-leading financial performance,
while maintaining its robust coverage and healthy solvency intact."
SECOND-QUARTER 2024 FINANCIAL HIGHLIGHTS
REVENUES
Second-quarter 2024 standalone revenues were EGP 24.4 billion, up 81% from
second-quarter 2023. First-half 2024 standalone revenues were EGP 46.2
billion, up 81% from first-half 2023, on the back of 74% increase in net
interest income, coupled with 3x increase in non-interest income.
NET INTEREST INCOME
First-half 2024 standalone net interest income recorded EGP 41.4 billion,
increasing by 74% YoY, generated at 9.52% Total NIM1, which increased by 222
basis points (bp) YoY, with Local Currency NIM1 recording 12.5%, coming 334bp
higher YoY, and Foreign Currency NIM1 recording 3.85%, coming 6bp higher YoY.
NON-INTEREST INCOME
First-half 2024 standalone non-interest income recorded EGP 4.75 billion,
coming 3x higher YoY. Trade service fees recorded EGP 1.65 billion, growing by
40% YoY, with outstanding balance of EGP 266 billion 3 .
OPERATING EXPENSE
First-half 2024 standalone operating expense recorded EGP 5.57 billion, up 34%
YoY. Cost-to-income 4 reported 12.0%, coming 364bp lower YoY, and remaining
comfortably below the desirable level of 30%.
LOANS
Gross loan portfolio recorded EGP 331 billion, growing by 24% over first-half
2024, with real growth of 8% net of the EGP devaluation impact, which added
EGP 41.1 billion to the EGP equivalent balance. Growth was driven wholly by
local currency loans, increasing by 14% or EGP 26.4 billion, sufficiently
counterbalancing net foreign currency loan repayments of 2% or USD 51 million.
CIB's loan market share reached 4.68% as of February 2024.
DEPOSITS
Deposits recorded EGP 858 billion, growing by 27% over first-half 2024, with
real growth of 8% net of the EGP devaluation impact, which added EGP 118
billion to the EGP equivalent balance. Growth was driven by local currency
deposits, increasing by 11% or EGP 49.3 billion, together with foreign
currency deposits adding 5% or USD 325 million. CIB's deposit market share
recorded 6.47% as of February 2024.
ASSET QUALITY
Standalone non-performing loans represented 4.08% of the gross loan portfolio,
and were covered 314% by the Bank's EGP 42.4 billion loan loss provision
balance. First-half 2024 impairment charge for credit losses recorded EGP 2.06
billion compared to EGP 1.21 billion in first-half 2023.
CAPITAL AND LIQUIDITY
Total tier capital recorded EGP 142 billion, or 26.2% of risk-weighted assets
as of June 2024. Tier I capital reached EGP 117 billion, or 82% 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 36.8% by end of
June 2024, compared to the regulator's threshold of 20%, and foreign currency
liquidity ratio reaching 68.3%, above the threshold of 25%. NSFR was 212% for
local currency and 188% for foreign currency, and LCR was 1140% for local
currency and 332% 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, and total assets.
INSTITUTIONAL BANKING
o End-of-period gross loans were EGP 253 billion, 28% higher Year-to-Date
(YtD), with real growth of 6% net of the EGP devaluation impact, predominantly
on 13% growth in local currency loans.
o End-of-period deposits were EGP 293 billion, 19% higher YtD, while coming
in flat when excluding the EGP devaluation impact, with foreign currency
deposits increasing by 4%, offset by 2% decrease in local currency deposits.
o Gross outstanding contingent business reached EGP 280 billion, 56% higher
YtD.
BUSINESS BANKING
o End-of-period gross loans were EGP 10 billion, 17% higher YtD, wholly on
17% growth in local currency loans.
o End-of-period deposits were EGP 78 billion, 29% higher YtD, with real
growth of 12% when excluding the EGP devaluation impact, mainly on 16% growth
in local currency deposits, coupled with 5% growth in foreign currency
deposits.
o Gross outstanding contingent business reached EGP 4 billion, 14% higher
YtD.
RETAIL INDIVIDUALS BANKING
o End-of-period gross loans were EGP 68 billion, 15% higher YtD, with real
growth of 14% net of the EGP devaluation impact, wholly on 15% growth in local
currency loans.
o End-of-period deposits were EGP 487 billion, 32% higher YtD, with real
growth of 13% net of the EGP devaluation impact, driven by growth in local and
foreign currency deposits by 18% and 6%, 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 1,394 ATMs.
CONSOLIDATED FINANCIAL HIGHLIGHTS
Income Statement 2Q24 1Q24 QoQ Change 2Q23 YoY Change 1H24 1H23 YoY Change
EGP million EGP million (2Q24 vs. 1Q24) EGP million (2Q24 vs. 2Q23) EGP million EGP million (1H24 vs. 1H23)
Net Interest Income 22,737 18,800 21% 13,009 75% 41,537 23,893 74%
Non-Interest Income 1,692 3,024 -44% 483 250% 4,716 1,583 198%
Net Operating Income 24,429 21,824 12% 13,492 81% 46,253 25,476 82%
Non-Interest Expense (2,870) (2,929) -2% (2,233) 29% (5,799) (4,297) 35%
Impairment Charge for Credit Losses (631) (1,421) -56% (238) 166% (2,052) (1,182) 74%
Net Profit before Tax 20,928 17,474 20% 11,022 90% 38,402 19,997 92%
Income Tax (5,572) (5,926) -6% (3,486) 60% (11,499) (5,748) 100%
Deferred Tax 267 377 -29% 502 -47% 644 (143) NM
Net Profit from Continued Operations 15,622 11,925 31% 8,038 94% 27,547 14,106 95%
Net Profit from Discontinued Operations 0.0 0.0 NM (50) NM 0.0 (50) NM
Net profit 15,622 11,925 31% 7,987 96% 27,547 14,056 96%
Non-Controlling Interest (0.1) 0.5 NM (0.4) NM 0.3 3.5 -90%
Bank's Shareholders 15,623 11,924 31% 7,988 96% 27,547 14,053 96%
Financial Indicators 2Q24 1Q24 QoQ Change 2Q23 YoY Change 1H24 1H23 YoY Change
(2Q24 vs. 1Q24) (2Q24 vs. 2Q23) (1H24 vs. 1H23)
Profitability
ROAE 56.8% 49.9% 14% 49.1% 16% 52.5% 41.3% 27%
ROAA 6.14% 5.26% 17% 4.31% 43% 5.82% 3.92% 48%
Efficiency
Cost-to-Income 11.7% 13.4% -13% 15.8% -26% 12.5% 16.1% -23%
Liquidity
Gross Loans-to-Deposits 38.7% 39.7% -3% 38.4% 1% 38.7% 38.4% 1%
Asset Quality
NPLs-to-Gross Loans 4.13% 4.35% -5% 5.07% -18% 4.13% 5.07% -18%
Capital Adequacy Ratio 26.2% 25.2% 4% 19.0% 38% 26.2% 19.0% 38%
STANDALONE FINANCIAL HIGHLIGHTS
Income Statement 2Q24 1Q24 QoQ Change 2Q23 YoY Change 1H24 1H23 YoY Change
EGP million EGP (2Q24 vs. 1Q24) EGP million (2Q24 vs. 2Q23) EGP million EGP million (1H24 vs. 1H23)
million
Net Interest Income 22,680 18,760 21% 12,958 75% 41,440 23,790 74%
Non-Interest Income 1,678 3,070 -45% 529 217% 4,748 1,721 176%
Net Operating Income 24,358 21,830 12% 13,488 81% 46,188 25,511 81%
Non-Interest Expense (2,728) (2,840) -4% (2,166) 26% (5,568) (4,171) 34%
Impairment Charge for Credit Losses (578) (1,482) -61% (265) 118% (2,060) (1,213) 70%
Net Profit before Tax 21,053 17,507 20% 11,056 90% 38,560 20,128 92%
Income Tax (5,533) (5,722) -3% (3,505) 58% (11,255) (5,770) 95%
Deferred Tax 217 162 34% 508 -57% 378 (214) NM
Net Profit 15,737 11,947 32% 8,059 95% 27,683 14,144 96%
Financial Indicators 2Q24 1Q24 QoQ Change 2Q23 YoY Change 1H24 1H23 YoY Change
(2Q24 vs. 1Q24) (2Q24 vs. 2Q23) (1H24 vs. 1H23)
Profitability
ROAE 57.7% 50.2% 15% 49.1% 18% 53.1% 41.3% 28%
ROAA 6.22% 5.30% 17% 4.36% 43% 5.88% 3.96% 48%
NIM* 9.72% 9.29% 5% 7.47% 30% 9.52% 7.30% 30%
Efficiency
Cost-to-Income 11.1% 13.0% -14% 15.3% -27% 12.0% 15.6% -23%
Liquidity
Gross Loans-to-Deposits 38.6% 39.6% -3% 38.4% 1% 38.6% 38.4% 1%
Asset Quality
NPLs-to-Gross Loans 4.08% 4.28% -5% 5.02% -19% 4.08% 5.02% -19%
Direct Coverage Ratio 314% 307% 2% 236% 33% 314% 236% 33%
*NIM based on managerial accounts
BALANCE SHEET
Consolidated Standalone
Balance Sheet Jun-24 Dec-23 YtD Change Jun-24 Dec-23 YtD Change
EGP million EGP million (Jun-24 Vs. EGP million EGP million (Jun-24 Vs.
Dec-23)
Dec-23)
Cash & Due from Central Bank 43,582 71,888 -39% 43,371 71,747 -40%
Due from Banks 306,026 231,085 32% 305,021 230,709 32%
Net Loans & Overdrafts 287,648 235,808 22% 285,472 234,647 22%
Financial Derivatives 1,324 1,105 20% 1,324 1,102 20%
Financial Investment Securities 374,985 271,466 38% 372,713 270,138 38%
Investments in Associates and Subsidiaries 113 116 -3% 872 672 30%
Other Assets 43,491 23,397 86% 43,204 23,512 84%
Total Assets 1,057,168 834,866 27% 1,051,976 832,527 26%
Due to Banks 3,972 12,458 -68% 3,997 12,427 -68%
Customer Deposits 861,720 677,237 27% 857,741 675,310 27%
Other Liabilities 72,098 54,529 32% 72,026 54,490 32%
Total Liabilities 937,789 744,225 26% 933,764 742,227 26%
Shareholders' Equity & Net Profit 119,255 90,481 32% 118,212 90,300 31%
Non-Controlling Interest 123 160 -23% 0 0 NM
Total Liabilities & Shareholders' Equity 1,057,168 834,866 27% 1,051,976 832,527 26%
1 Based on managerial accounts.
2 As of February 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 17.14 YtD. 3) Outstanding
contingent balances are gross of collateral and provisions.
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