TIDMCBKD
RNS Number : 8251B
Commercial Intnl Bank (Egypt) SAE
04 February 2020
News Release
3 February 2020
COMMERCIAL INTERNATIONAL BANK ("CIB") REPORTS
RECORD FULL-YEAR 2019 CONSOLIDATED REVENUE OF EGP 23.0 BILLION
AND NET INCOME OF EGP 11.8 BILLION, OR EGP 7.33 PER SHARE, UP 23%
FROM 2018
FOURTH-QUARTER 2019 CONSOLIDATED REVENUE OF EGP 6.15 BILLION AND
NET INCOME OF EGP 3.26 BILLION, OR EGP 2.06 PER SHARE, UP 27% FROM
FOURTH-QUARTER 2018
-- Record Full-Year 2019 Consolidated Financial Results
o Net income of EGP 11.8 billion, up 23% year-on-year (YoY)
o Revenues of EGP 23.0 billion, up 13% YoY
o Return on average equity of 29.5%
o Return on average assets of 3.26%
o Efficiency ratio of 21.6%
o Net interest margin (NIM)(1) of 6.48%
-- Record Fourth-Quarter 2019 Consolidated Financial Results
o Net income of EGP 3.26 billion, up 27% YoY
o Revenues of EGP 6.15 billion, up 18% YoY
o Return on average equity of 26.2%
o Return on average assets of 3.43%
o Efficiency ratio of 17.8%
o NIM[1] of 7.00%
-- Robust Balance Sheet
o Total tier capital recorded EGP 52.0 billion, or 26.1% of
risk-weighted assets
o CBE local currency liquidity ratio of 74.9%, foreign currency
of 56.5% (comfortably above CBE requirements of 20% and 25%,
respectively)
o CIB remains well above the 100% requirement in 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 225%
-- Supporting our Economy
o Funding to businesses and individuals grew by 10% over 2019 to
record EGP 132 billion, with real loan growth of 16%[2] and a loan
market share of 6.82%([3])
o Deposits grew by 7% over 2019 to reach EGP 304 billion, with
real deposit growth of 10%(2) , translating into a deposit market
share of 7.44%(3)
o In 2019, CIB's operations generated EGP 5.78 billion in
corporate, payroll and other taxes
-- Committed to our Community
o CIB Foundation joined forces with Ibrahim Badran Foundation to
provide 48 medical convoys for children in underprivileged areas,
targeting several children health issues such as internal medicine,
pulmonology, orthopaedics and dermatology.
o CIB Foundation, in partnership with Yahiya Arafa Children's
Charity Foundation, supported the operations of 5 paediatric units
in Ain Shams University Hospital.
o CIB Foundation collaborated with Magdy Yacoub Foundation to
cover 50 paediatric open-heart surgeries at Magdy Yacoub Aswan
Heart Center.
o CIB Foundation, under management of Rotary Club of Giza
Metropolitan, covered 32 open-heart surgeries that took place at El
Kasr El Eini Hospital.
-- Awards & Rankings
o Global Finance: Best Trade Finance Provider in Egypt, Best
Bank for Payment & Collections in the Middle East, Best
Treasury & Cash Management Providers in Egypt, Best Bank in
Egypt, Best Online Portal Services, Best Information Security and
Fraud Management, Best Online Deposit, Credit and Investment
Product Offerings, Best Bill Payment and Presentment, Best
Integrated Consumer Banking Site, Best in Mobile Banking, Best
Mobile Banking App, Most Innovative Digital Bank, Best Trade
Finance Services, Best Sub-custodian Bank in Egypt
o Euromoney: Best Bank in Egypt, The Middle East's Best Bank for
Corporate Responsibility
o EMEA Finance: Best FX Services in North Africa, Best Payment
Services in North Africa
CAIRO - Commercial International Bank (EGX: COMI) today reported
fourth-quarter 2019 consolidated net income of EGP 3.26 billion, or
EGP 2.06 per share, up 27% from fourth-quarter 2018. Full-year 2019
consolidated net income recorded EGP 11.8 billion, or EGP 7.33 per
share, growing by 23% from last year.
Management commented: "Leaving behind a year of considerable
macroeconomic and regulatory dynamism, 2019 witnessed numerous
economic reforms as stipulated by the IMF guidelines, which, though
radical and challenging in nature, placed the Egyptian economy
among the highly attractive destinations for global investment. The
Banking Sector had its share of the recast, with a series of
consecutive corridor cut episodes slashing rates down year-round by
450bp, urged by a notable deceleration in inflation levels and
relatively stabilizing macroeconomic conditions. In that event, the
Banking Sector faced vigorous competition over market funds, which,
alongside the new tax law enactment at the onset of the year, came
in challenging to the Sector's growth prospects. Confronted with an
eventful outlook, however, CIB managed to deliver a new set of
record results, posting top and bottom line of EGP 23.0 billion and
EGP 11.8 billion over 2019, growing from last year by 24% and 23%,
respectively, after normalizing for the EGP 1.82 billion recycled
in 2018 from unearned interest to interest income.
Notwithstanding the competitive outlook, CIB came through,
managing to gain market share in both loans and deposits, aided by
Management efforts and strategic focus on robustly growing the
Bank's balance sheet while simultaneously preserving spreads to
secure profitability. In evidence, CIB came amongst the fastest
growing balance sheets in the market, driven primarily by growth in
local currency deposits. Moreover, fourth quarter of 2019 has been
a distinctively good quarter for CIB with regards to lending
activity, with both local and foreign currency loans growing by 6%
and 9% over the quarter, respectively, bringing entire-year loan
growth to 20% in local currency and 11% in foreign currency and
foreshadowing an upcoming period of impressive lending uplift in
line with Management aspirations and focused efforts to keep tabs
on growing the Bank's core business. Adding on, Management has been
proactive in foreseeing interest rate movements, tactically
furnishing the Bank's treasury portfolio in a way that would
smoothly accommodate market dynamics, while retaining sufficient
flexibility to capture worthy trading opportunities amidst interest
rate descents.
Going apace with the Bank's strategy in sustaining the desirable
balance between liquidity, solvency and profitability, CIB recorded
a comfortable Capital Adequacy Ratio of 26%, granting the Bank
robust coverage for both expected and unexpected losses and
emphasizing its ability to secure top-notch solvency without
sacrificing its normal and singular standard in top and bottom line
growth.
2019 witnessed a key achievement for CIB, making it to the first
institution in the history of the Egyptian Tax Society and Tax
Authority to conclude the tax inspection process for 2018 prior to
the subsequent year-end and to clear all cases and disputes
outstanding with the Tax Authority, further affirming its
leadership in compliance with regulatory initiatives and
re-instating its continuous record in granting investors a higher
level of comfort in the quality of the Bank's financial reporting
and regulatory standing.
Moving into 2020, we remain positive about the economic outlook
and confident about CIB's ability to ride out market variations in
light of the expected continuation of the monetary easing cycle,
drawing on its proven record of resilient balance sheet
fundamentals and effective management besides its affluent capital
buffer."
FOURTH-QUARTER 2019 FINANCIAL HIGHLIGHTS
REVENUES
Fourth-quarter 2019 standalone revenues were EGP 6.15 billion,
up 18% from fourth-quarter 2018. Full-year 2019 standalone revenues
were EGP 23.0 billion, up 24% YoY, after excluding EGP 1.82 billion
pertaining to the transfer from unearned interest to interest
income in 2018.
NET INTEREST INCOME
2019 standalone NIM(1) was 6.48%, generating net interest income
of EGP 21.6 billion, up 32% YoY, excluding the aforementioned EGP
1.82 billion.
NON-INTEREST INCOME
2019 standalone non-interest income recorded EGP 1.44 billion,
representing 6% of revenues. Trade service fees were EGP 739
million, with net outstanding balance of EGP 70.2 billion.
OPERATING EXPENSE
2019 standalone operating expense was EGP 5.04 billion, up 19%
YoY. Cost-to-income recorded 21.6%, 123bp higher YoY, but still
comfortably below the desirable level of 30%.
LOANS
Gross loan portfolio recorded EGP 132 billion, adding EGP 12.4
billion or 10% YoY. Growth was driven by both local currency and
foreign currency loans, which added 20% or EGP 12.7 billion and 11%
or USD 341 million, respectively, while the EGP appreciation
brought the FCY equivalent balance down by EGP 6.47 billion.
Excluding the latter, CIB's gross loans grew by 16% YoY. CIB's loan
market share reached 6.82% as of November 2019.
DEPOSITS
Deposits recorded EGP 304 billion, adding EGP 19.1 billion or 7%
YoY. Growth was driven wholly by local currency deposits, which
grew by 18%, adding EGP 33.3 billion over 2019, while FCY deposits
came lower by 4% or USD 217 million and the EGP appreciation
brought the FCY equivalent balance down by a further EGP 10.3
billion. Excluding the latter, CIB's deposits grew by 10% YoY.
CIB's deposit market share recorded 7.44% as of November 2019,
maintaining the highest deposit market share among all
private-sector banks.
ASSET QUALITY
CIB maintained its resilient asset quality. Standalone
non-performing loans represented 3.99% of the gross loan portfolio,
covered 225% by the Bank's EGP 11.8 billion loan loss provision
balance. Loan Loss Provision Expense recorded EGP 1.44 billion for
2019, 14% higher YoY, excluding the aforementioned EGP 1.82
billion, transferred to interest income and fully provisioned
for.
CAPITAL AND LIQUIDITY
Total tier capital was EGP 52 billion, or 26.1% of risk-weighted
assets as of December 2019. Tier I capital was EGP 47.1 billion, or
90.5% of total tier capital.
CIB maintained its comfortable liquidity position above CBE
requirements and Basel III guidelines in both local currency and
foreign currency. Local-currency CBE liquidity ratio remained well
above the regulator's 20% requirement, recording 74.9% for 2019,
while foreign-currency CBE liquidity ratio reached 56.5%, above the
threshold of 25%. NSFR was 255% for local currency and 156% for
foreign currency, and LCR was 757% for local currency and 231% for
foreign currency, comfortably above the 100% Basel III
requirement.
KEY METRICS AND BUSINESS UPDATES([4])
-- #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 105 billion, 9% higher both QoQ and YoY.
-- End-of-period deposits were EGP 98 billion, 1% higher QoQ while 1% lower YoY.
-- Gross outstanding contingent business reached EGP 75 billion,
2% higher QoQ while 4% lower YoY.
BUSINESS BANKING
-- End-of-period gross loans were EGP 1 billion, 16% higher QoQ and 70% higher YoY.
-- End-of-period deposits were EGP 23 billion, 1% higher QoQ and 18% higher YoY.
-- Gross outstanding contingent business reached EGP 1.31
billion, 11% higher QoQ and 10% higher YoY.
RETAIL INDIVIDUALS BANKING
-- End-of-period gross loans were EGP 26 billion, 1% higher QoQ and 15% higher YoY.
-- End-of-period deposits were EGP 183 billion, 2% lower QoQ while 10% higher YoY.
-- CIB continued to expand its network to reach a total of 180
branches and 27 units across Egypt, supported by a network of 1,012
ATMs.
CONSOLIDATED FINANCIAL HIGHLIGHTS
QoQ YoY YoY
Income Statement 4Q19 3Q19 Change 4Q18 change FY19 FY18 change
---------------------
EGP EGP (4Q19 EGP (4Q19 EGP EGP (FY19
million million vs. million vs. 4Q18) million million vs. FY18)
3Q19)
--------------------- ---------- --------- ---------- ---------- -----------
Net Interest Income 6,130 5,443 13% 4,835 27% 21,579 18,144 19%
Non-Interest Income 19 617 -97% 381 -95% 1,441 2,235 -36%
Net Operating Income 6,149 6,060 1% 5,216 18% 23,019 20,379 13%
---------- ---------- --------- ---------- ----------- ---------- ---------- -----------
Non-Interest Expense (1,160) (1,270) -9% (1,276) -9% (5,049) (4,224) 20%
Loan loss provision (228) (412) -45% (273) -16% (1,435) (3,076) -53%
--------------------- ---------- --------- ----------- ---------- -----------
Net Profit before
Tax 4,761 4,378 9% 3,667 30% 16,535 13,079 26%
---------- ---------- --------- ---------- ----------- ---------- ---------- -----------
Income Tax (1,356) (1,225) 11% (1,063) 28% (4,639) (3,626) 28%
Deferred Tax (142) 30 NM (42) NM (95) 129 NM
Net profit from
continued
operations 3,263 3,183 3% 2,563 27% 11,801 9,582 23%
Net profit from
discontinued
operations 0 0 NM 0 NM 0 0 NM
Net profit 3,263 3,183 3% 2,563 27% 11,801 9,582 23%
Minority Interest 0 0 NM 0 NM 0 0 NM
Net Profit After
Minority 3,263 3,183 3% 2,563 27% 11,801 9,582 23%
--------------------- ---------- ---------- --------- ---------- ----------- ---------- ---------- -----------
QoQ YoY YoY
Financial Indicators 4Q19 3Q19 Change 4Q18 change FY19 FY18 change
---------------------
(4Q19 (4Q19 (FY19
vs. vs. 4Q18) vs. FY18)
3Q19)
--------------------- --------- ----------- ---------- -----------
Profitability
ROAE* 26.2% 28.4% -8% 31.7% -17% 29.5% 33.1% -11%
ROAA* 3.43% 3.46% -1% 3.06% 12% 3.26% 3.03% 8%
-----------
Efficiency
Cost-to-Income 17.8% 20.7% -14% 24.0% -26% 21.6% 20.3% 6%
---------- ---------- --------- ---------- ----------- ---------- ---------- -----------
Liquidity
Gross
Loans-to-Deposits 43.3% 40.0% 8% 41.9% 3% 43.3% 41.9% 3%
-----------
Asset Quality
NPLs-to-Gross Loans 3.99% 5.27% -24% 4.06% -2% 3.99% 4.06% -2%
Capital Adequacy
Ratio 26.1% 27.2% -4% 19.1% 37% 26.1% 19.1% 37%
--------------------- ---------- ---------- --------- ---------- ----------- ---------- ---------- -----------
STANDALONE FINANCIAL HIGHLIGHTS
QoQ YoY YoY
Income Statement 4Q19 3Q19 Change 4Q18 change FY19 FY18 change
---------------------
EGP EGP (4Q19 EGP (4Q19 EGP EGP (FY19
million million vs. million vs. 4Q18) million million vs. FY18)
3Q19)
--------------------- -----------
Net Interest Income 6,130 5,443 13% 4,835 27% 21,578 18,144 19%
Non-Interest Income 18 615 -97% 370 -95% 1,440 2,208 -35%
Net Operating Income 6,147 6,059 1% 5,205 18% 23,018 20,351 13%
---------- ---------- --------- ---------- ----------- ---------- ---------- -----------
Non-Interest Expense (1,159) (1,269) -9% (1,275) -9% (5,045) (4,223) 19%
Loan loss provision (228) (412) -45% (273) -16% (1,435) (3,076) -53%
--------------------- ---------- ---------- --------- ---------- ----------- ---------- ---------- -----------
Net Profit before
Tax 4,760 4,378 9% 3,657 30% 16,537 13,053 27%
---------- ----------
Income Tax (1,356) (1,225) 11% (1,063) 28% (4,639) (3,626) 28%
Deferred Tax (142) 30 NM (42) NM (95) 129 NM
--------------------- ---------- --------- ----------- ---------- -----------
Net Profit 3,262 3,183 2% 2,553 28% 11,804 9,556 24%
--------------------- ---------- ---------- --------- ---------- ----------- ---------- ---------- -----------
QoQ YoY YoY
Financial Indicators 4Q19 3Q19 Change 4Q18 change FY19 FY18 change
---------------------
(4Q19 (4Q19 (FY19
vs. vs. 4Q18) vs. FY18)
3Q19)
--------------------- ---------- ---------- --------- ---------- ----------- ---------- ---------- -----------
Profitability
ROAE 26.3% 28.5% -8% 31.7% -17% 29.6% 33.1% -11%
ROAA 3.43% 3.46% -1% 3.05% 12% 3.26% 3.02% 8%
NIM** 7.00% 6.41% 9% 6.23% 12% 6.48% 6.43% 1%
---------- ---------- --------- ---------- ----------- ---------- ---------- -----------
Efficiency
Cost-to-Income 17.8% 20.7% -14% 24.0% -26% 21.6% 20.3% 6%
---------- ---------- --------- ---------- ----------- ---------- ---------- -----------
Liquidity
Gross
Loans-to-Deposits 43.3% 40.0% 8% 41.9% 3% 43.3% 41.9% 3%
---------- ---------- --------- ---------- ----------- ---------- ---------- -----------
Asset Quality
NPLs-to-Gross Loans 3.99% 5.27% -24% 4.06% -2% 3.99% 4.06% -2%
Direct Coverage
Ratio 225% 190% 18% 269% -16% 225% 269% -16%
---------- ---------- --------- ---------- ----------- ---------- ---------- -----------
*Full-year ROAE and ROAA after profit appropriation
**NIM based on managerial accounts
Consolidated Standalone
------------------------------------- -------------------------------------
BALANCE SHEET Dec-19 Dec-18 YoY Change Dec-19 Dec-18 YoY Change
---------- ---------- ------------- ---------- ---------- -------------
EGP EGP (Dec-19 EGP EGP (Dec-19
million million Vs. Dec-18) million million Vs. Dec-18)
Cash & Due from Central
Bank 28,274 20,059 41% 28,274 20,059 41%
Due from Banks 28,353 46,519 -39% 28,353 46,519 -39%
Net Loans & Overdrafts 119,946 106,377 13% 119,946 106,377 13%
Financial Derivatives 216 52 314% 216 52 314%
Financial Investments
Securities 197,542 157,586 25% 197,542 157,586 25%
Financial Investment
in Subsidiaries 108 107 1% 64 69 -7%
Other Assets 12,303 11,762 5% 12,301 11,762 5%
---------- ---------- ------------- ---------- ---------- -------------
Total Assets 386,742 342,461 13% 386,697 342,423 13%
------------------------- ---------- ---------- ---------- ----------
Due to Banks 11,811 7,260 63% 11,811 7,260 63%
Customer Deposits 304,448 285,297 7% 304,484 285,340 7%
Other Liabilities 18,603 15,676 19% 18,603 15,676 19%
---------- ---------- ------------- ---------- -------------
Total Liabilities 334,862 308,233 9% 334,897 308,276 9%
---------- ---------- ------------- ---------- ---------- -------------
Shareholders' Equity
& Net Profit 51,880 34,228 52% 51,800 34,147 52%
------------------------- ---------- ---------- ------------- ---------- ---------- -------------
Total Liabilities &
Shareholders' Equity 386,742 342,461 13% 386,697 342,423 13%
------------------------- ---------- ---------- ------------- ---------- ---------- -------------
[1] Based on managerial accounts
[2] Adjusted for the EGP appreciation
[3] As of November 2019; latest available CBE data at time of
print
[4] Loan, deposit, and gross outstanding contingent balances
based on managerial accounts
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END
FR SSFESDESSESE
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