Commercial International Bank – Egypt (CIB) reported consolidated net income of EGP 16.6bn, or EGP 4.83 per share, for the first quarter (Q1) of 2025—marking a 39% increase compared to the same period last year. The results underscore a strong start to the year, continuing the momentum from 2024 and reflecting the Bank’s resilient fundamentals and strategic focus on sustainable growth.
Top-Line Growth Driven by Core Banking Performance
CIB’s top-line revenue rose 24% year-on-year in EGP terms, or 15% in US dollar terms, supported by a 35% increase in net interest income. Standalone revenues reached EGP 26.8bn, primarily driven by growth in interest income, which totalled EGP 25.3bn. Despite a 50% year-on-year decline in non-interest income to EGP 1.54bn, revenue performance remained robust. Notably, trade service fees grew 29% over the year, totalling EGP 848m, indicating resilience in core fee-generating services.
Net Interest Margin (NIM) remained among the highest in the market at 9.09%, supported by a local currency NIM of 13.2%, up 173 basis points from the prior year. Foreign currency NIM, however, declined by 140 basis points to 2.82%, reflecting broader market dynamics.
Deposits and Liquidity Remain Strong
CIB’s funding base continued to grow significantly, with total deposits reaching EGP 996bn by the end of the quarter. Local currency deposits rose by EGP 112bn, a 24% increase year-on-year, while foreign currency deposits expanded by $1.35bn, or 20%. The Bank maintained its strategic focus on low-cost funding, with 64% of new deposits—equivalent to EGP 131bn—coming from current and savings accounts (CASA), preserving their healthy 56% share of total deposits.
Liquidity remained comfortably above both the Central Bank of Egypt (CBE) requirements and Basel III guidelines. The local currency liquidity ratio stood at 55.0%, well above the CBE’s 20% minimum, while the foreign currency liquidity ratio reached 75.1%, exceeding the 25% threshold. CIB also reported strong Net Stable Funding Ratios (NSFR) of 233% and 250% for local and foreign currency, respectively. Liquidity Coverage Ratios (LCR) stood at 1503% for local currency and 392% for foreign currency, far surpassing the 100% requirement.
Loan Portfolio Expansion and Market Leadership
CIB maintained its leadership as Egypt’s largest private-sector lender, with a gross loan portfolio of EGP 426bn as of March 2025, up 7% quarter-on-quarter. Including securitization deals, the portfolio reached EGP 455bn. Local currency loans recorded a remarkable 52% growth year-on-year, amounting to an increase of EGP 103bn, of which EGP 22bn was added in the first quarter alone. Foreign currency loans also increased by 4%, or $87.9m.
Lending growth was primarily driven by the Corporate Banking segment, particularly in the services sector. At the same time, CIB continued to exceed regulatory lending targets to small and medium-sized enterprises (SMEs), which reached 27%, and maintained strong momentum in retail lending, particularly in personal loans and credit cards.
The Gross Loan-to-Deposit Ratio reached 42.7%, and 45.6% when accounting for securitization deals. Local currency lending performance was particularly notable, with the ratio rising to a record 57.3%, including securitized assets.
Lower Provisions Following Recalibrated ECL Model
This quarter marked a significant development in the Bank’s provisioning approach. Following a comprehensive review of its Expected Credit Loss (ECL) model in collaboration with external auditors, CIB concluded that the conservative assumptions used in recent years led to provisioning levels well above market averages. As such, the Bank recalibrated its ECL model to better align with current economic conditions and risk factors, resulting in a more balanced provisioning framework.
As a result of the recalibration, CIB booked significantly lower credit loss provisions in the first quarter—EGP 68.5m compared to EGP 1.48bn in the same period last year. Even excluding this positive impact, the Bank achieved a 27% year-on-year increase in net income, underscoring the strength of its core operations. The new ECL approach has received initial approval from the CBE, with final approval pending third-party model validation, expected to conclude by the end of Q2 2025.
Asset Quality, Capital, and Shareholder Returns
CIB’s asset quality remained robust, with non-performing loans (NPLs) representing just 3.07% of the total loan portfolio. These NPLs were covered 337% by the Bank’s EGP 44.1bn in loan loss provisions, reflecting one of the highest coverage ratios in the market.
The Bank continued to maintain a strong capital base, with total tier capital of EGP 182bn, representing 26.8% of risk-weighted assets. Tier I capital accounted for 85% of total capital, reinforcing the Bank’s ability to absorb potential shocks while supporting growth.
Return on Average Equity (ROAE) reached 43%, placing CIB among the top performers in the sector in terms of shareholder returns, despite maintaining a sizeable capital buffer above regulatory minimums.
Looking Ahead: Strategic Focus and Market Confidence
CIB reaffirmed its commitment to prudent risk management and sustainable growth. Management emphasized that it will continue to evaluate provisioning needs in light of macroeconomic developments and evolving credit risk profiles, while maintaining support for Egypt’s economic development through both corporate and individual financing.
“We are confident in the resilience of our business model and remain focused on balancing growth with stability. Our performance in the first quarter of 2025 is a testament to our disciplined strategy and operational strength,” CIB’s management stated.
