TIDMCBKD
RNS Number : 8828L
Commercial Intnl Bank (Egypt) SAE
05 May 2020
News Release
4 May 2020
Click on, or paste the following link into your web browser, to
view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/8828L_1-2020-5-4.pdf
COMMERCIAL INTERNATIONAL BANK ("CIB") REPORTS
FIRST-QUARTER 2020 CONSOLIDATED REVENUE OF EGP 6.42 BILLION AND
NET INCOME OF EGP 2.40 BILLION, OR EGP 1.44 PER SHARE, DOWN 9% FROM
FIRST-QUARTER 2019
-- First-Quarter 2020 Consolidated Financial Results
o Net income of EGP 2.40 billion, lower 9% year-on-year
(YoY)
o Revenues of EGP 6.42 billion, up 15% YoY [1]
o Return on average equity of 19.6%
o Return on average assets of 2.50%
o Efficiency ratio of 22.3%
o Net interest margin [2] of 6.94%
-- Competent Balance Sheet
o Total tier capital recorded EGP 49.9 billion, or 26.35% of
risk-weighted assets
o CBE local currency liquidity ratio of 77.6%, foreign currency
of 54.5% (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 247%
-- Supporting our Economy
o Funding to businesses and individuals recorded EGP 129 billion
in first-quarter 2020, with a loan market share of 6.89% ([3])
o Deposits recorded EGP 310 billion in first-quarter 2020,
translating into a deposit market share of 7.22%(3)
o In first-quarter 2020, CIB's operations generated EGP 1.63
billion in corporate, payroll and other taxes
-- Committed to our Community
o In line with the Bank's commitment to supporting the economy
in times of distress, CIB is donating EGP 126 million in support to
the Egyptian Government in its battle against the COVID-19
Pandemic.
o CIB Foundation collaborated with Al-Joud Foundation to
establish 15 cardiac paediatric intensive care units at Al Naas
Hospital for Children's Heart, in addition to covering 40
paediatric open-heart surgeries.
o CIB Foundation, along with Gozour Foundation for Development,
paid the second instalment for the funding of 100 eye-sight-testing
groups targeting 80,000 students in underprivileged urban areas in
Egypt.
o CIB Foundation funded in full the six-colour flow cytometry
device that assists in the accurate diagnosis of leukaemia and
lymph-node-cancer at Sporting Students' Hospital.
o CIB Foundation donated the annual operating costs for Children
Cancer Hospital 57357 Cairo and Tanta branches.
o CIB Foundation assisted in equipping the Neonatal ICU and the
Paediatric ICU at Benha University Hospital with 40 incubators, 10
ICU beds and the necessary equipment needed.
-- Awards & Rankings
o Global Finance: Best Treasury & Cash Management Providers
in Egypt and Best Foreign Exchange Provider in Egypt.
CAIRO - Commercial International Bank (EGX: COMI) today reported
first-quarter 2020 consolidated net income of EGP 2.40 billion, or
EGP 1.44 per share, down 9% from first-quarter 2019.
Management commented: "Embracing a crisis regarded by experts as
the worst in world history in decades, first quarter of 2020 ended
on a note of numerous dynamics in the Egyptian, just as in the
global, economy. Notwithstanding the unforeseen global adversity,
CIB upheld firm and robust top line growth that came amidst the
growing threat of COVID-19, and as Management took all measures to
protect the Bank's employees, customers, community, country and all
other stakeholders while ensuring business continuity. Moreover,
the increase in the Bank's expenses compared to last year was
largely backed by the donations disbursed for combating COVID-19,
integral of the Bank's role in supporting the Community given
especially the current difficult times.
In fact, investments made earlier in terms of communication
technology helped CIB navigate this crisis so far. The Digital
Transformation and Big Data, which the Bank inaugurated ahead of
market several years back, appeared, and would even further appear
over the coming period, to reap its fruits in this hard time backed
by better understanding of customer aspirations and more informed
pricing decisions, while procreating considerable expense saving
and risk modeling. The Bank's Management has placed extensive focus
over the past months on developing its digital-channel network for
customers while exerting utmost efforts to undertake a large-scale
"Working-from-Home" initiative, going apace with Management top
priority of retaining effective business continuity without
compromising on the welfare of its staff or customers. Impressively
enough, CIB has pulled through the situation after taking gradual
precautionary measures since the onset of the pandemic, while
neither markedly hurting the Bank's financial performance nor
interrupting the regular flow of work and effectively responding to
client needs. Capitalizing on the experience, Management is
genuinely considering turning this setback into an opportunity for
doing business more efficiently, embedding this initiative in the
Bank's cultural DNA, further adding to its record of being at the
forefront of change.
Amidst the ambiguity overshadowing the global macroeconomic
arena, CIB opted to revise models and assumptions of provisions.
Over the years, the Bank has been consistently resorting to the
upper permissible provision band, inclusive of its prudent risk
management. Here and now, Management pursued, and will continue to
pursue its prudent provisioning strategy, accelerating provision
accumulation in first quarter of 2020 in order to ensure the Bank's
continued solid financial position remains intact amidst current
uncertainties. This has been effectuated on the basis of
macroeconomic variations reflected in models pertaining to
particular industries rather than on customer-account basis. The
models' assumptions have been thoroughly discussed and particular
industries have been accounted for based on expected cash flow.
For the remainder of the year, the outlook remains ambiguous
with no concrete indications as to when the global economy will
start picking-up. The Bank's Management is undoubtedly challenged
as the impact of global conditions and the accompanying regulatory
measures are yet to be felt over the coming quarters. Management,
however, remains committed to keep tabs on the quality of the
Bank's credit exposure, with the possible decision to release
provisions in the event of improving conditions, while
unhesitatingly accruing more provisions if needed, all-dependent on
economy- and industry-level variations. We remain confident,
though, in preserving CIB's leading position, largely capitalizing
on the Bank's a-priori-strong coverage and resolute balance sheet
fundamentals."
FIRST-QUARTER 2020 FINANCIAL HIGHLIGHTS
REVENUES
First- quarter 2020 standalone revenues were EGP 6.41 billion,
up 15% from first-quarter 2019 , driven by NII growth. Upon
adding/deducting back contingent provision charged/released, which
is normally deducted from/added to Net Operating Income as part of
Other Operating (Expenses) Income, first-quarter 2020 standalone
revenues grew by 25% YoY.
NET INTEREST INCOME
First-quarter 2020 standalone NIM(2) was 6.94%, generating net
interest income of EGP 6.20 billion, up 25% YoY.
NON-INTEREST INCOME
First-quarter 2020 standalone non-interest income was EGP 217
million, representing 3% of revenues. Adding back contingent
provision charged amounting to EGP 414 million for first-quarter
2020, standalone non-interest income represented 9% of revenues.
Trade service fees were EGP 164 million, with net outstanding
balance of EGP 68.2 billion.
OPERATING EXPENSE
First-quarter 2020 standalone operating expense was EGP 1.52
billion, up 15% YoY. Cost-to-income reported 22.3%, 186bp lower YoY
[4] , and comfortably below the desirable level of 30%.
LOANS
Gross loan portfolio recorded EGP 129 billion, down by EGP 2.65
billion or 2% year-to-date (YtD), driven mainly by net foreign
currency loan repayments of USD 158 million, down by 5%, and EGP
appreciation by EGP 0.30 over the quarter which brought the foreign
currency equivalent balance down by a further EGP 970 million,
partially smoothed down by modest local currency loan growth of 1%
or EGP 860 million. CIB's loan market share reached 6.89% as of
January 2020.
DEPOSITS
Deposits recorded EGP 310 billion, adding EGP 5.51 billion or 2%
YtD. Growth was driven wholly by local currency deposits, which
grew by 4% adding EGP 8.48 billion, while foreign currency deposits
had net outflows of USD 86.1 million, down by 2%, and the EGP
appreciation brought the foreign currency equivalent balance down
by a further EGP 1.59 billion. CIB's deposit market share recorded
7.22% as of January 2020, 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% of the gross loan portfolio,
covered 247% by the Bank's EGP 12.8 billion loan loss provision
balance. Loan Loss provision expense recorded EGP 1.24 billion for
first-quarter 2020, 138% higher YoY.
CAPITAL AND LIQUIDITY
Total tier capital was EGP 49.9 billion, or 26.35% of
risk-weighted assets as of March 2020. Tier I capital was EGP 44.8
billion, or 90% 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 77.6% as of March
2020, while foreign-currency CBE liquidity ratio reached 54.5%,
above the threshold of 25%. NSFR was 232% for local currency and
151% for foreign currency, and LCR was 664% for local currency and
325% for foreign currency, comfortably above the 100% Basel III
requirement.
KEY METRICS AND BUSINESS UPDATES ([5])
-- #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 101 billion, 4% lower YtD.
-- End-of-period deposits were EGP 101 billion, 3% higher YtD.
-- Gross outstanding contingent business reached EGP 73.3 billion, 2% lower YtD.
BUSINESS BANKING
-- End-of-period gross loans were EGP 1 billion, 6% higher YtD.
-- End-of-period deposits were EGP 24 billion, 3% higher YtD.
-- Gross outstanding contingent business reached EGP 1.34 billion, 3% higher YtD.
RETAIL INDIVIDUALS BANKING
-- End-of-period gross loans were EGP 27 billion, 5% higher YtD.
-- End-of-period deposits were EGP 185 billion, 1% higher YtD.
-- CIB continued to expand its network to reach a total of 179
branches and 28 units across Egypt, supported by a network of 1,039
ATMs.
CONSOLIDATED FINANCIAL
HIGHLIGHTS
Income Statement 1Q20 4Q19 QoQ Change 1Q19 YoY change
EGP million EGP million (1Q20 vs. EGP million (1Q20 vs.
4Q19) 1Q19)
Net Interest Income 6,195 6,130 1% 4,939 25%
Non-Interest Income 225 19 NM 660 -66%
Net Operating Income 6,421 6,149 4% 5,600 15%
Non-Interest Expense (1,525) (1,160) 31% (1,322) 15%
Loan Loss Provision (1,240) (228) 444% (521) 138%
Net Profit before Tax 3,656 4,761 -23% 3,757 -3%
Income Tax (1,332) (1,356) -2% (1,090) 22%
Deferred Tax 75 (142) NM (25) NM
Net profit 2,399 3,263 -27% 2,642 -9%
Minority Interest 0 0 NM 0 NM
Net Profit After Minority 2,399 3,263 -27% 2,642 -9%
Financial Indicators 1Q20 4Q19 QoQ Change 1Q19 YoY change
(1Q20 vs. (1Q20 vs.
4Q19) 1Q19)
Profitability
ROAE 19.6% 26.2% -25% 29.0% -33%
ROAA 2.50% 3.43% -27% 3.04% -18%
Efficiency
Cost-to-Income 22.3% 17.8% 25% 24.2% -8%
Liquidity
Gross Loans-to-Deposits 41.7% 43.3% -4% 42.6% -2%
Asset Quality
NPLs-to-Gross Loans 4.00% 3.99% 0% 4.99% -20%
Capital Adequacy Ratio 26.3% 26.1% 1% 21.5% 23%
STANDALONE FINANCIAL
HIGHLIGHTS
Income Statement 1Q20 4Q19 QoQ Change 1Q19 YoY change
EGP million EGP million (1Q20 vs. EGP million (1Q20 vs.
4Q19) 1Q19)
Net Interest Income 6,195 6,130 1% 4,939 25%
Non-Interest Income 217 18 NM 661 -67%
Net Operating Income 6,412 6,147 4% 5,599 15%
Non-Interest Expense (1,524) (1,159) 31% (1,321) 15%
Loan loss provision (1,240) (228) 444% (521) 138%
Net Profit before Tax 3,648 4,760 -23% 3,758 -3%
Income Tax (1,332) (1,356) -2% (1,090) 22%
Deferred Tax 75 (142) NM (25) NM
Net Profit 2,391 3,262 -27% 2,642 -9.5%
Financial Indicators 1Q20 4Q19 QoQ Change 1Q19 YoY change
(1Q20 vs. (1Q20 vs.
4Q19) 1Q19)
Profitability
ROAE 19.5% 26.3% -26% 29.1% -33%
ROAA 2.49% 3.43% -27% 3.05% -18%
NIM* 6.94% 7.00% -1% 6.26% 11%
Efficiency
Cost-to-Income 22.3% 17.8% 25% 24.2% -8%
Liquidity
Gross Loans-to-Deposits 41.7% 43.3% -4% 42.6% -2%
Asset Quality
NPLs-to-Gross Loans 4.00% 3.99% 0% 4.99% -20%
Direct Coverage Ratio 247% 225% 10% 199% 24%
*NIM based on managerial accounts
Consolidated Standalone
BALANCE SHEET Mar-20 Dec-19 YtD Change Mar-20 Dec-19 YtD Change
EGP million EGP (Mar-20 EGP EGP (Mar-20
million Vs. Dec-19) million million Vs. Dec-19)
Cash & Due from Central
Bank 27,169 28,274 -4% 27,169 28,274 -4%
Due from Banks 26,608 28,353 -6% 26,608 28,353 -6%
Net Loans & Overdrafts 116,360 119,946 -3% 116,360 119,946 -3%
Financial Derivatives 377 216 74% 377 216 74%
Financial Investments
Securities 199,325 197,542 1% 199,316 197,542 1%
Financial Investment
in Subsidiaries 102 108 -6% 49 64 -23%
Other Assets 11,665 12,303 -5% 11,663 12,301 -5%
Total Assets 381,607 386,742 -1% 381,544 386,697 -1%
Due to Banks 10,438 11,811 -12% 10,438 11,811 -12%
Customer Deposits 309,972 304,448 2% 309,997 304,484 2%
Other Liabilities 15,057 18,603 -19% 15,056 18,603 -19%
Total Liabilities 335,467 334,862 0% 335,491 334,897 0%
Shareholders' Equity
& Net Profit 46,140 51,880 -11% 46,052 51,800 -11%
Total Liabilities & Shareholders'
Equity 381,607 386,742 -1% 381,544 386,697 -1%
[1] Real growth of 25% excluding contingent provision
charged/released, normally deducted from/added to Net Operating
Income as part of Other Operating (Expense) Income.
[2] Based on managerial accounts.
[3] As of January 2020; latest available CBE data at time of
print.
[4] Cost-to-income is, as has normally been, calculated using
revenues after adding/deducting back contingent provision
charged/released.
[5] Loan, deposit, and outstanding contingent balances based on
managerial accounts.
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 or visit www.rns.com.
END
QRFKKQBBOBKDAPK
(END) Dow Jones Newswires
May 05, 2020 05:21 ET (09:21 GMT)
Grafico Azioni Commercial International... (LSE:CBKD)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Commercial International... (LSE:CBKD)
Storico
Da Lug 2023 a Lug 2024
