The Commercial International Bank (CIB) recorded a consolidated net income of EGP 3.37bn, or EGP 1.53 per share, in the fourth quarter (4Q) of 2021 — up by 17% from 4Q 2020.
The consolidated net income for the entirety of 2021 amounted to about EGP 13.3bn, or EGP 6.10 per share — up by 30% from last year.
These figures came in a report released by the CIB on Tuesday on its performance in 4Q of 2021.
“Following a year of continued uncertainty, the CIB achieved yet again its record performance in 2021, reiterating its leading market position in terms of both profitability and solvency through the year while remaining committed to elevate the overall customer banking experience,” a statement from the CIB’s management said.
Bottom line growth came in exceptionally strong thanks to the CIB’s unique coverage and flexible balance sheet structure, which helped it navigate efficiently through market dynamics.
Such advantages, alongside the management’s focus on rationalising costs, led to sustained balance sheet growth momentum without markedly compromising on spreads, especially on the local currency front, with local currency deposits growing by a notable 23%.
The CIB’s lending activity also showed impressive progress in both local and foreign currency with an unprecedented 29% growth since 2011 in local currency loans.
This further fuelled top line growth, coupled with a strong revival in contingent business and foreign exchange trading activities, generating a significant rebound in core fees and commissions.
Moreover, the bank’s healthy coverage and prudent risk management over the years contributed to this singular loan growth, allowing for normalised provision accumulations in light of relatively stabilising economic conditions compared to last year.
The CIB also maintained its foremost coverage position in the market for both expected and unexpected losses, with loan loss provision balance covering 11% of gross loans, combined with the bank’s regulatory capital base covering 30% of its risk-weighted assets.
Despite the adequate capital buffer being above minimum regulatory requirements, the return to CIB shareholders remained among the most competitive in the market, with return on average equity recording 21.9% after profit appropriation — up by 255 basis points from last year.
In line with the bank’s leading role in digital transformation, the CIB pursued new levels in achieving outstanding records in cost synergies with a direct impact on the bank’s financial results. This came as management placed due focus on automating and digitising its business processes, attracting more digitally engaged customers, and paving the way for its trade business growth, especially with the increase in online service penetration rates following the COVID-19 outbreak.
Consequently, the CIB ranked first among all Egyptian Banks in governmental and commercial domestic E-payment transactions, reflecting the significant increase in volume and value of transactions with more than 1m users in the Online Banking Digital Consumer Channel by the end of 2021 and more than a 100% y-o-y increase in transaction value, reaching EGP 861bn across all of the CIB’s digital channels.
This came alongside revamping the branch experience, creating new customer touchpoints to serve new segments and add new services, and adopting a new culture of agility.