1st Quarter Earnings Release

RNS Number : 4264N
Commercial Intnl Bank (Egypt) SAE
09 May 2018
 

News Release

8 May 2018

 

COMMERCIAL INTERNATIONAL BANK ("CIB") REPORTS

RECORD FIRST-QUARTER 2018 CONSOLIDATED REVENUE OF EGP 4.15 BILLION AND NET INCOME OF EGP 2.02 BILLION, OR EGP 1.54 PER SHARE, UP 17% FROM FIRST-QUARTER 2017

·     Strong First-Quarter 2018 Consolidated Financial Results

Net income of EGP 2.02 billion, up 17% year-on-year (YoY)

Revenues of EGP 4.15 billion, up 25% YoY

Return on average equity of 28.7%

Return on average assets of 2.67%

Efficiency ratio of 22.9%

Net interest margin (NIM) of 5.05%1

·     Robust Balance Sheet

After profit appropriation, total tier capital recorded EGP 31.95 billion, or 17.87% of risk-weighted assets

CBE local currency liquidity ratio of 68.1%, foreign currency of 56.4% (comfortably above CBE requirements of 20% and 25%, respectively)

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

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

Non-performing loans coverage ratio of 202%

·     Supporting our Economy

Funding to businesses and individuals grew by 6% during first quarter of 2018 to reach EGP 108 billion, with a loan market share of 7.0%2

Deposits grew by 2% during first quarter of 2018 to reach EGP 256 billion, translating into a deposit market share of 7.5%2

In first-quarter 2018, CIB's operations generated EGP 1,097 million in corporate, payroll and other taxes

·     Committed to our Community

CIB Foundation hosted a "Health-and-Hygiene School Bag" packing event for students through the 6/6 Eye Exam Caravan Program.

CIB Foundation, in collaboration with the Gozour Foundation, implemented 25 one-day caravans, providing free eye exams and care to more than 15 thousand primary school students in Upper Egypt Region.

CIB Foundation, in partnership with Egyptian Clothing Bank, donated EGP 1.7 million to provide 50,000 training suits to underprivileged children in 19 governorates.

CIB Foundation, in partnership with Sawiris Foundation for Social Development, Star Care for Helping Children and Assiut Business Women Association, continued installments for the implementation of "Together for Change project".

 

 

·     Awards & Rankings

Global Finance: Best Foreign Exchange Provider in Egypt

Global Finance: Best Trade Finance Provider in Egypt

Global Finance: Best Treasury & Cash Management Providers in Egypt

Global Finance: Best Bank in Egypt

CAIRO - Commercial International Bank (EGX: COMI) today reported first-quarter 2018 consolidated revenue of EGP 4.15 billion and net income of EGP 2.02 billion, or EGP 1.54 per share, up 25% and 17% from first-quarter 2017, respectively.

Management commented: "CIB made a good start to 2018 following a challenging year, penciling in record top and bottom lines, more so when excluding one-off capital gains pertaining to sale of investments in both 1Q17 and 1Q18, with both growing by 33% YoY.

CIB managed to decently grow its local currency balance sheet, notwithstanding strong competition over local currency funding, which along with an impressive pick-up in foreign currency lending, boosted the Bank's net interest income by 17% over first-quarter 2017. The first quarter of 2018 witnessed the first corridor rate cut ever since the Egyptian Pound floatation by 100bp in the middle of the quarter, followed by a proportionate cut by quarter-end. The impact of the two consecutive cuts on lending growth is expected to get through over the coming quarters.

CIB remains well-covered in terms of capital adequacy, as evident in its CAR surging to 18% by end of the first-quarter in 2018, comfortably above minimum regulatory requirements and sufficiently accommodating upcoming increases in minimum requirements in 2019, along with any unanticipated alterations in the macroeconomic environment. Having said that, CIB continuously aspires to maintain the appropriate balance between solvency and profitability, especially that additional capital requirements, as expected, placed some pressure on the Bank's return on equity.

Moving forward, we remain confident, in the Bank's solid fundamentals to accommodate macroeconomic and regulatory developments, while reacting cautiously to interest rate movements in a way that does not forego the Bank's profitability."

FIRST-QUARTER FINANCIAL HIGHLIGHTS

REVENUES

First-quarter 2018 standalone revenues were EGP 4.15 billion, up 14% from first-quarter 2017, driven mainly by NII growth, improved trade finance activity, in addition to a capital gain from the sale of one of CIB's direct investments.

Net Interest Income

Standalone net interest margin (NIM) was 5.05%1, generating net interest income of EGP 3.26 billion, up 17% YoY.

Non-Interest Income

Standalone non-interest income for first-quarter of 2018 was EGP 887 million (21% of revenues).

Trade service fees were EGP 256 million. Trade service net outstanding balances stood at EGP 73.94 billion, 2% higher YtD.

 

OPERATING EXPENSE    

Standalone operating expense for first-quarter 2018 was EGP 957 million, up 28% YoY. Cost-to-income reported 22.9% up from 20.1% in first-quarter 2017, still comfortably below the desirable level of 30%.

LOANS

CIB's total gross loan portfolio was EGP 108 billion, adding EGP 5.7 billion, or 6% YtD. CIB's loan market share reached 7.0% as of December 2017. CIB witnessed 4% growth in its local currency gross loan portfolio during the quarter, adding EGP 2.2 billion, and 7% growth in foreign currency loans, adding an equivalent of EGP 3.5 billion.    

DEPOSITS

CIB's deposits were EGP 256 billion, adding EGP 5.4 billion, or 2% YtD. CIB's deposit market share was 7.5% as of December 2017.

ASSET QUALITY

CIB maintained its resilient asset quality. Standalone non-performing loans represented 5.11% of the gross loan portfolio, covered 202% by the Bank's EGP 11.1 billion loan loss provision balance. Loan loss provision expenses were EGP 320 million, as CIB continued its conservative risk management strategy to counter current and potential economic challenges in certain industries.

CAPITAL AND LIQUIDITY

Total tier capital was EGP 31.95 billion, or 17.87% of risk-weighted assets as of March 2018. Tier I capital was EGP 26.60 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. LCY CBE liquidity ratio remained well above the regulator's 20% requirement, recording 68.1% as of March 2018, while FCY CBE liquidity ratio reached 56.4%, above the threshold of 25%. NSFR was 218% for local currency and 157% for foreign currency, and LCR was 435% for local currency and 300% for foreign currency, comfortably above the 100% Basel III requirement.

 

 

 

KEY METRICS AND BUSINESS UPDATES3

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

INSTITUTIONAL BANKING

·     End-of-period gross loans were EGP 86.4 billion, 5% higher YtD.

·     End-of-period deposits were EGP 65.6 billion, 27% higher YtD.

·     Gross outstanding contingent business reached EGP 77.54 billion, 5% higher YtD.

BUSINESS BANKING

·     End-of-period gross loans were EGP 1.4 billion, up 3% YtD.

·     End-of-period deposits were EGP 42.8 billion, up 9% YtD.

·     Gross outstanding contingent business reached EGP 1.74 billion, down 13% YtD.

RETAIL INDIVIDUALS BANKING

·     End-of-period gross loans were EGP 20.3 billion, up 8% YtD.

·     End-of-period deposits were EGP 147.7 billion, up 5% YtD.



 

·     CIB continued to expand its network to reach a total of 176 branches and 22 units across Egypt, supported by a network of 849 ATMs.

 

 

CONSOLIDATED FINANCIAL HIGHLIGHTS





Income Statement

1Q18

4Q17

QoQ Change

1Q17

YoY Change

EGP million

EGP million

(1Q18 vs. 4Q17)

EGP million

(1Q18 vs. 1Q17)

Net Interest Income

3,260

3,194

2%

2,783

17%

Non-Interest Income

890

659

35%

538

65%

Net Operating Income

4,150

3,854

8%

3,322

25%

Non-Interest Expense

(957)

(850)

13%

(746)

28%

Loan loss provision

(320)

(310)

3%

(507)

-37%

Net Profit before Tax

2,873

2,693

7%

2,069

39%

Income Tax

(896)

(834)

8%

(599)

50%

Deferred Tax

45

8

457%

15

206%

Net profit from continued operations

2,021

1,867

8%

1,485

36%

CI Capital Profit (Net of Tax)

-

-

NM

273

NM

Net profit

2,021

1,867

8%

1,757

15%

Minority Interest

-

-

NM

24

NM

Net Profit After Minority

2,021

1,867

8%

17%







Financial Indicators

 1Q18

 EGP million

 4Q17

 EGP million

 QoQ Change

 1Q17

 EGP million

 YoY Change

(1Q18 vs. 4Q17)

(1Q18 vs. 1Q17)

Profitability






ROAE

28.7%

27.1%

6%

31.9%

-10%

ROAA

2.67%

2.59%

3%

2.57%

4%

Efficiency






Cost-to-Income

22.9%

21.5%

6%

21.9%

5%

Liquidity






Gross Loans-to-Deposits

42.2%

40.8%

3%

41.5%

2%

Asset Quality






NPLs-to-Gross Loans

5.11%

6.95%

-26%

7.02%

-27%

Capital Adequacy Ratio

17.9%

18.0%

-1%

14.5%

23%

STANDALONE FINANCIAL HIGHLIGHTS






Income Statement

1Q18

4Q17

QoQ Change

1Q17

YoY Change

EGP million

EGP million

(1Q18 vs. 4Q17)

EGP million

(1Q18 vs. 1Q17)

Net Interest Income

3,260

3,194

2%

2,783

17%

Non-Interest Income

887

653

36%

839

6%

Net Operating Income

4,147

3,847

8%

3,623

14%

Non-Interest Expense

(957)

(850)

13%

(746)

28%

Loan loss provision

(320)

(310)

3%

(507)

-37%

Net Profit before Tax

2,869

2,687

7%

2,370

21%

Income Tax

(896)

(834)

8%

(599)

50%

Deferred Tax

45

8

457%

15

206%

Net Profit

2,018

1,861

8%

1,785

13%







Financial Indicators

 1Q18

 EGP million

 4Q17

 EGP million

 QoQ Change

 1Q17

 EGP million

 YoY Change

(1Q18 vs. 4Q17)

(1Q18 vs. 1Q17)

Profitability






ROAE

28.7%

27.1%

6%

33.0%

-13%

ROAA

2.67%

2.58%

4%

2.66%

0%

NIM*

5.05%

5.09%

-1%

4.62%

9%

Efficiency






Cost-to-Income

22.9%

21.6%

6%

20.1%

14%

Liquidity






Gross Loans-to-Deposits

42.2%

40.8%

3%

41.5%

2%

Asset Quality






NPLs-to-Gross Loans

5.11%

6.95%

-26%

7.02%

-27%

Direct Coverage Ratio

202%

154%

31%

147%

37%

 

* NIM based on managerial accounts

 

 

BALANCE SHEET


Consolidated

Standalone


Mar-18

Dec-17

YtD Change

Mar-18

Dec-17

YtD Change


EGP million

EGP million

(Mar-18 vs. Dec-17)

EGP million

EGP million

(Mar-18 vs. Dec-17)

Cash & Due from Central Bank

26,182

14,663

79%

26,182

14,663

79%

Due from Banks

42,307

45,320

-7%

42,307

45,320

-7%

Treasury Bills & Governmental Notes

45,937

54,478

-16%

45,937

54,478

-16%

Trading Financial Assets

7,170

7,295

-2%

7,170

7,295

-2%

Available-for-Sale Investments

40,153

30,475

32%

40,153

30,475

32%

Net Loans & Overdrafts

95,304

88,428

8%

95,304

88,428

8%

Financial Derivatives

38

40

-4%

38

40

-4%

Held-to-Maturity Investments

42,360

45,168

-6%

42,360

45,168

-6%

Financial Investment in Subsidiaries

83

65

27%

68

54

26%

Other Assets

10,215

8,850

15%

10,215

8,850

15%

Total Assets

309,750

294,782

5%

309,735

294,771

5%

Due to Banks

11,352

1,878

505%

11,352

1,878

505%

Customer Deposits

256,078

250,723

2%

256,122

250,767

2%

Other Liabilities

14,499

13,742

6%

14,499

13,742

6%

Total Liabilities

281,929

266,343

6%

281,973

266,388

6%

Shareholders' Equity & Net Profit

27,821

28,439

-2%

27,762

28,384

-2%

Total Liabilities & Shareholders' Equity

309,750

294,782

5%

309,735

294,771

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/4264N_-2018-5-8.pdf



1 Based on managerial accounts

2 As of December 2017; latest available CBE data at time of print

3 Loan and deposit balances based on managerial accounts

On gross basis; based on managerial accounts


This information is provided by RNS
The company news service from the London Stock Exchange
 
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