Last checked at 19 Apr 2022 07:00
News Release
14 April 2022
COMMERCIAL INTERNATIONAL BANK ("CIB") REPORTS
FIRST-QUARTER 2022 CONSOLIDATED REVENUE OF EGP 7.77 BILLION AND NET INCOME OF EGP 4.24 BILLION, OR EGP 1.90 PER SHARE, UP 48% FROM FIRST-QUARTER 2021
· First-Quarter 2022 Consolidated Financial Results
o Net income of EGP 4.24 billion, up 48% year-on-year (YoY)
o Revenues of EGP 7.77 billion, up 24% YoY
o Return on average equity of 25.3%
o Return on average assets of 3.32%
o Efficiency ratio of 19.6%
o Net interest margin (NIM)[1] of 5.66%
· Resilient Balance Sheet
o Total tier capital recorded EGP 72.8 billion, or 30.6% of risk-weighted assets
o CBE local currency liquidity ratio of 51.5%, foreign currency liquidity ratio of 66.5% (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 93% of total liabilities
o Non-performing loans coverage ratio of 218%
· Supporting our Economy
o Funding to businesses and individuals recorded EGP 177 billion, growing by 9% over first-quarter 2022, 4% net of EGP devaluation impact, with a loan market share of 5.27%[2].
o Deposits recorded EGP 428 billion, growing by 5% over first-quarter 2022, 1% net of EGP devaluation impact, with a deposit market share of 6.30%2.
o Loan-to-Deposit Ratio recorded 41.5% by end of first-quarter 2022.
o In first-quarter 2022, CIB's operations generated EGP 1.97 billion in corporate, payroll, and other taxes.
· Committed to our Community
o CIB Foundation financed "Sohag University Hospital" to outfit and expand the Pediatric Dialysis Unit.
o CIB Foundation subsidized "Magdy Yacoub Heart Foundation" with the third installment to perform 200 open-heart surgeries and 345 catheterization procedures.
o CIB Foundation funded "57357 Children Cancer Hospitals" in Cairo and Tanta with the needed amount to cover their annual operating costs.
o CIB Foundation sponsored "Sporting Students Hospital" with the necessary amount to establish an advanced pediatric cardiac operating room.
o CIB Foundation joined forces with "The Awad Charity Foundation" to found a rehabilitation center for children with special needs in Beni Suef University.
o CIB Foundation, in collaboration with "Face for Children in Need," provided medical service and care for orphans and street children.
· Awards & Rankings
o Global Finance: The World's Best Trade Finance Providers in Egypt for 2022
o Global Finance: World's Best Foreign Exchange Providers 2022
o The Digital Banker: Best Wholesale/Transaction Bank for Digital CX
CAIRO - Commercial International Bank (EGX: COMI) today reported first-quarter 2022 consolidated net income of EGP 4.24 billion, or EGP 1.90 per share, up 48% from first-quarter 2021.
Management commented: "First quarter of 2022 ended on a challenging note on both global and local fronts, as global economic uncertainty intensified with the Russian-Ukrainian War. With this turn of events, the CBE raised the Corridor Rate by 100 basis points, coupled with a devaluation in the Egyptian Pound against the USD by EGP 2.5, as a result of the global inflation. CIB Management opted to accrue total provisions of EGP 1 billion for direct and contingent facilities in the first quarter of 2022, in line with the Bank's prudent risk management, preemptively securing a coverage for 11% of the Bank's gross loan portfolio by loan loss provisions. Moreover, solvency and coverage for unexpected losses remained intact, with Capital Adequacy Ratio resting comfortably at 31%, safely unscathed by recent developments.
With a focus on core performance, CIB had a strong start into the year, delivering top and bottom line growth of 24% and 48%, compared to last year, respectively. This came as a result of a balance sheet sustained growth momentum at administered costs, especially on the local currency front, associated with strong local currency deposit growth from last year, along with proactive treasury management. In addition, local currency loans grew by 33%, compared to last year, boosting fee and commission income growth, with continued progress in trade finance and foreign exchange activities.
Management remains confident in the Bank's ability to uphold its market-leading performance, on both profitability and solvency fronts, supported by its flexible balance sheet structure and prudent risk management, which would cement the Bank's position against any unforeseen market dynamics."
FIRST-QUARTER 2022 FINANCIAL HIGHLIGHTS
REVENUES
First-quarter 2022 standalone revenues were EGP 7.63 billion, up 22% from first-quarter 2021, on the back of net interest income increasing by 16% or EGP 0.93 billion, alongside non-interest income increasing by 74% or EGP 0.44 billion.
NET INTEREST INCOME
First-quarter 2022 standalone net interest income recorded EGP 6.60 billion, increasing by 16% YoY, generated at Total NIM1 of 5.66%, coming in flat YoY, with Foreign Currency NIM recording 1.30%, increasing by 37bp YoY, exactly offset by Local Currency NIM decreasing by 35bp, to record 7.14%.
NON-INTEREST INCOME
First-quarter 2022 standalone non-interest income recorded EGP 1.03 billion, coming 74% higher YoY. Upon adding back contingent provision charged, which is normally deducted from Non-Interest Income as part of Other Operating Expenses, recording EGP 758 million for first-quarter 2022 and EGP 121 million for first-quarter 2021, standalone non-interest income grew by 2.5x YoY. Trade service fees were EGP 232 million, growing by 18% YoY, with outstanding balance of EGP 106 billion[3].
OPERATING EXPENSE
First-quarter 2022 standalone operating expense was EGP 1.55 billion, up 5% YoY. Cost-to-income[4] reported 18.4%, 463bp lower YoY, remaining comfortably below the desirable level of 30%.
LOANS
Gross loan portfolio recorded EGP 177 billion, growing by 9% Year-to-Date (YtD), with a real growth of 4% net of EGP devaluation impact, which added EGP 7.92 billion to the EGP equivalent balance. Growth was driven mainly by local currency loans, growing by 8% or EGP 9.38 billion, sufficiently counterbalancing net foreign currency loan repayments by 6% or USD 184 million. CIB's loan market share reached 5.27% as of December 2021.
DEPOSITS
Deposits recorded EGP 428 billion, growing by 5% YtD, with a real growth of 1% net of EGP devaluation impact, which added EGP 15.3 billion to the EGP equivalent balance. Growth was driven mainly by foreign currency deposits adding 8% or USD 468 million, covering net local currency deposit outflows by 1% or EGP 2.28 billion. CIB's deposit market share recorded 6.30% as of December 2021, maintaining the highest deposit market share among all private-sector banks.
ASSET QUALITY
CIB maintained its resilient asset quality. Standalone non-performing loans represented 4.90% of the gross loan portfolio, covered 218% by the Bank's EGP 19.0 billion loan loss provision balance. First-quarter 2022 loan loss provisions recorded EGP 41 million provision reversals compared to loan loss provision expense of EGP 702 million in first-quarter 2021.
CAPITAL AND LIQUIDITY
Total tier capital recorded EGP 72.8 billion, or 30.6% of risk-weighted assets as of March 2022. Tier I capital reached EGP 64.5 billion, or 89% of total tier capital.
CIB maintained its comfortable liquidity position above CBE requirements and Basel III guidelines in both local currency and foreign currency. CBE local currency liquidity ratio remained well above the regulator's 20% requirement, recording 51.5% as of March 2022, while CBE foreign currency liquidity ratio reached 66.5%, above the threshold of 25%. NSFR was 259% for local currency and 171% for foreign currency, and LCR was 1921% for local currency and 271% 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 129.4 billion, 8% higher YtD, wholly backed by 7% growth in local currency loans.
· End-of-period deposits were EGP 152.4 billion, 10% higher YtD, on 19% growth in foreign currency deposits, besides 1% growth in local currency deposits.
· Gross outstanding contingent business reached EGP 111 billion, 17% higher YtD.
BUSINESS BANKING
· End-of-period gross loans were EGP 4.00 billion, 25% higher YtD, solely on local currency loan growth.
· End-of-period deposits were EGP 46.2 billion, 11% higher YtD, mainly on 7% growth in local currency deposits, besides 12% growth in foreign currency deposits.
· Gross outstanding contingent business reached EGP 3.51 billion, 30% higher YtD.
RETAIL INDIVIDUALS BANKING
· End-of-period gross loans were EGP 44.0 billion, 9% higher YtD, wholly on 9% growth in local currency loans.
· End-of-period deposits were EGP 229 billion, coming almost flat YtD.
· CIB continued to expand its network to reach a total of 190 branches and 23 units across Egypt, supported by a network of 1,279 ATMs.
CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||
Income Statement | 1Q22 | 4Q21 | QoQ Change | 1Q21 | YoY change |
EGP million | EGP million | (1Q22 vs. 4Q21) | EGP million | (1Q22 vs. 1Q21) | |
Net Interest Income | 6,717 | 6,811 | -1% | 5,678 | 18% |
Non-Interest Income | 1,057 | 119 | 792% | 589 | 80% |
Net Operating Income | 7,774 | 6,930 | 12% | 6,266 | 24% |
Non-Interest Expense | (1,671) | (1,744) | -4% | (1,475) | 13% |
Loan Loss Provision | 39 | (356) | NM | (702) | NM |
Net Profit before Tax | 6,142 | 4,829 | 27% | 4,089 | 50% |
Income Tax | (1,373) | (1,564) | -12% | (1,209) | 14% |
Deferred Tax | (510) | 102 | NM | (6) | NM |
Net profit | 4,260 | 3,367 | 26% | 2,873 | 48% |
Minority Interest | 15.4 | (2.5) | NM | 0.4 | NM |
Net Profit After Minority | 4,244 | 3,370 | 26% | 2,873 | 48% |
Financial Indicators | 1Q22 | 4Q21 | QoQ Change | 1Q21 | YoY change |
(1Q22 vs. 4Q21) | (1Q22 vs. 1Q21) | ||||
Profitability | |||||
ROAE | 25.3% | 20.0% | 27% | 19.3% | 31% |
ROAA | 3.32% | 2.72% | 22% | 2.63% | 26% |
Efficiency | |||||
Cost-to-Income | 19.6% | 24.5% | -20% | 23.1% | -15% |
Liquidity | |||||
Gross Loans-to-Deposits | 41.6% | 40.3% | 3% | 38.0% | 9.3% |
Asset Quality | |||||
NPLs-to-Gross Loans | 4.89% | 5.12% | -4% | 4.40% | 11% |
Capital Adequacy Ratio | 30.6% | 29.9% | 3% | 31.5% | -3% |
STANDALONE FINANCIAL HIGHLIGHTS |
| ||||||||
Income Statement | 1Q22 | 4Q21 | QoQ Change | 1Q21 | YoY change | ||||
EGP million | EGP million | (1Q22 vs. 4Q21) | EGP million | (1Q22 vs. 1Q21) | |||||
Net Interest Income | 6,603 | 6,782 | -3% | 5,676 | 16% | ||||
Non-Interest Income | 1,027 | 266 | 285% | 590 | 74% | ||||
Net Operating Income | 7,629 | 7,048 | 8% | 6,267 | 22% | ||||
Non-Interest Expense | (1,545) | (1,714) | -10% | (1,473) | 5% | ||||
Loan loss provision | 41 | (352) | NM | (702) | NM | ||||
Net Profit before Tax | 6,124 | 4,983 | 23% | 4,092 | 50% | ||||
Income Tax | (1,375) | (1,563) | -12% | (1,209) | 14% | ||||
Deferred Tax | (510) | 106 | NM | (6) | NM | ||||
Net Profit | 4,240 | 3,526 | 20% | 2,876 | 47% | ||||
Financial Indicators | 1Q22 | 4Q21 | QoQ Change | 1Q21 | YoY change | ||||
(1Q22 vs. 4Q21) | (1Q22 vs. 1Q21) | ||||||||
Profitability | |||||||||
ROAE | 25.3% | 20.9% | 21% | 19.4% | 31% | ||||
ROAA | 3.33% | 2.85% | 17% | 2.64% | 26% | ||||
NIM* | 5.66% | 5.68% | 0% | 5.67% | 0% | ||||
Efficiency | |||||||||
Cost-to-Income | 18.4% | 23.6% | -22% | 23.1% | -20% | ||||
Liquidity | |||||||||
Gross Loans-to-Deposits | 41.5% | 40.2% | 3% | 37.9% | 9% | ||||
Asset Quality | |||||||||
NPLs-to-Gross Loans | 4.90% | 5.13% | -4% | 4.41% | 11% | ||||
Direct Coverage Ratio | 218% | 213% | 2% | 279% | -22% | ||||
*NIM based on managerial accounts
Consolidated | Standalone | |||||
BALANCE SHEET | Mar-22 | Dec-21 | YtD Change | Mar-22 | Dec-21 | YtD Change |
EGP million | EGP million | (Mar-22 Vs. Dec-21) | EGP million | EGP million | (Mar-22 Vs. Dec-21) | |
Cash & Due from Central Bank | 30,582 | 43,492 | -30% | 30,471 | 43,385 | -30% |
Due from Banks | 121,082 | 80,142 | 51% | 120,898 | 79,991 | 51% |
Net Loans & Overdrafts | 158,855 | 145,887 | 9% | 157,940 | 145,078 | 9% |
Financial Derivatives | 884 | 225 | 292% | 884 | 225 | 292% |
Financial Investment Securities | 200,767 | 213,987 | -6% | 199,523 | 212,951 | -6% |
Investments in Associates and Subsidiaries | 208 | 205 | 1% | 1,014 | 1,014 | 0% |
Other Assets | 12,438 | 14,296 | -13% | 12,147 | 14,006 | -13% |
Total Assets | 524,816 | 498,236 | 5% | 522,879 | 496,651 | 5% |
Due to Banks | 3,726 | 866 | 330% | 3,696 | 863 | 328% |
Customer Deposits | 429,022 | 407,242 | 5% | 427,654 | 406,101 | 5% |
Other Liabilities | 26,381 | 20,826 | 27% | 26,331 | 20,759 | 27% |
Total Liabilities | 459,130 | 428,933 | 7% | 457,681 | 427,723 | 7% |
Shareholders' Equity & Net Profit | 65,177 | 68,848 | -5% | 65,198 | 68,928 | -5% |
Minority Interest | 509 | 455 | 12% | 0 | 0 | NM |
Total Liabilities & Shareholders' Equity | 524,816 | 498,236 | 5% | 522,879 | 496,651 | 5% |
[1] Based on managerial accounts.
[2] As of December 2021; latest available CBE data at time of print.
[3] Net of Collateral, Gross of Provisions.
[4]Cost-to-income is calculated using revenues after adding/deducting back contingent provision charged/released.
[5] Loan, deposit, and outstanding contingent balances are based on managerial accounts.
Outstanding contingent balances are gross of collateral and provisions.
Growth in foreign currency balances is in real terms, excluding the effect of EGP depreciation by EGP 2.5 over first-quarter 2022.