The Commercial International Bank – Egypt (CIB) achieved EGP 2.4bn consolidated net income in the first quarter (1Q) of 2020, or EGP 1.44 per share, down 9% from 1Q 2019, the bank reported Tuesday.
The bank’s net profits also dropped 9% year-over-year (y-o-y) to EGP 2.399bn in 1Q 2020, while standalone revenues registered EGP 6.41bn, up 15% from 1Q 2019, driven by net interest income (NII) growth. In the same period, the bank had a net interest margin of 6.94%, generating net interest income of EGP 6.2bn, up 25% y-o-y.
The CIB’s standalone non-interest income recorded EGP 217m, representing 3% of revenues in 1Q 2020.
The bank’s management commented, “Embracing a crisis regarded by experts as the worst in world history in decades, 1Q 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. Moreover, the increase in the Bank’s expenses compared to last year was largely backed by the donations disbursed for combating Covid-19.”
Accordingly, the bank’s operating expenses in 1Q 2020 increased 15% y-o-y to EGP 1.52bn.
Meanwhile, the return on assets (ROA) registered 2.5% in 1Q 2020, down from 3.04% a year earlier, and the return on average equity (ROAE) recorded 19.6%, down from 29% in 1Q 2019.
CIB gross loan portfolio recorded EGP 129bn, down by EGP 2.65bn or 2% year-to-date (YTD), driven mainly by net foreign currency loan repayments of $158m, down by 5%, and Egyptian pound appreciation by EGP 0.3. This brought CIB’s foreign currency equivalent balance down a further EGP 970m, which was partially offset by modest local currency loan growth of 1% or EGP 860m. CIB’s loan market share reached 6.89% as of January 2020.
In contrast, deposits grew 2% YTD to record EGP 310bn. Growth was driven wholly by local currency deposits, which grew by 4% adding EGP 8.48bn.
The bank’s non-performing loans represented 4% of the gross loan portfolio, covered 247% by the CIB’s EGP 12.8bn loan loss provision (LLP). The bank’s LLP hiked 138% y-o-y to EGP 1.24bn in 1Q 2020.
CIB local-currency liquidity ratio remained well above the regulator’s 20% requirement, recording 77.6% as of March 2020, while the foreign-currency liquidity ratio reached 54.5%, above the threshold of 25%.
