Last checked at 12 Feb 2014 07:00
News Release
11 February 2014
COMMERCIAL INTERNATIONAL BANK ("CIB") REPORTS FOURTH-QUARTER 2013CONSOLIDATED REVENUE OF EGP 1.74 BILLION AND NET INCOME OF EGP 757 MILLION,UP 29% FROM FOURTH-QUARTER 2012
RECORD FULL-YEAR 2013 CONSOLIDATED REVENUE OF EGP 6.98 BILLION ANDNET INCOME OF EGP 3.01 BILLION, OR EGP 2.67 PER SHARE, UP 35% FROM 2012
· Strong Fourth-Quarter 2013 Consolidated Financial Results:
o Net income of EGP 757 million, up 29% year-on-year (YoY)
o Revenues of EGP 1.74 billion, up 15% YoY
o Efficiency (cost-to-income) ratio of 26.2%, an improvement of 21% YoY
· Record full-year 2013 Consolidated Financial Results:
o Record net income of EGP 3.01 billion, or EGP 2.67 per share, up 35% YoY
o Record revenue of EGP 6.98 billion, up 31% YoY
o Record standalone net interest margin [1] of 5.36%
o Efficiency ratio improved to 26.5% from 30.6% in 2012, on higher staff productivity
· Robust Balance Sheet:
o Total tier capital[2] of EGP 9.50 billion (before appropriation), or 13.55% of risk-weighted assets, of which 12.46% is Tier I capital.
o Balance sheet growth of 21% YoY
o High quality of funding, with customer deposits comprising 95% of total liabilities
o Standalone non-performing loans were 3.96% of the gross loan portfolio
o Loan loss provision balance of EGP 2.86 billion covered non-performing loans 1.6x
· Sector-Leading Full-Year Returns:
o Consolidated return on average equity[3] of 26.5% versus 22.9% in the year-ago period
o Consolidated return on average assets of 2.90% versus 2.48% in the year-ago period
· Supporting our Economy
o Funding to businesses and individuals reached EGP 45.3 billion by the end of 2013
o Deposits increased 23% in 2013 to EGP 96.8 billion, with deposit market share of 7.6%[4], up from 7.2% in December 2012
o In 2013, CIB's operations generated EGP 1.52 billion in corporate, payroll and other taxes
· Committed to our Community
o In the fourth quarter, the CIB Foundation donated over EGP 14 million to sponsor the entire second pediatric floor at the Magdi Yacoub Heart Foundation's Aswan Heart Center.
o The CIB Foundation participated once again in the annual One Million Blankets National Campaign, and contributed to the annual operating cost of the intensive care unit at the Abou El Reesh El Mounira Children's Hospital and four units at the Ain Shams Demerdash Hospital.
o CIB donated EGP 52 million to the Federation of Egyptian Banks' initiative to help develop underprivileged areas throughout Egypt, under the supervision of the Ministry of Urban Development.
· Awards & Rankings
o CIB has continued to receive global recognition and international awards for its outstanding performance. Awards were received from Global Finance, The Banker, Euromoney, Global Investor and EMEA Finance.
CAIRO - Commercial International Bank (EGX: COMI) today reported full-year 2013 consolidated net income of EGP 3.01 billion, or EGP 2.67 per share, an increase of 35% over 2012 net income of EGP 2.23 billion, or EGP 2.34 per share.
Hisham Ezz Al-Arab, Chairman and Managing Director of CIB, commented: "CIB closed another consecutive record year in 2013, generating consolidated net income of over EGP 3 billion on revenues of EGP 6.98 billion, up 31% over 2012.
"We are proud that Egyptian savers turned to CIB in these uncertain times, trusting us with over EGP 18 billion in additional deposits during the year. We, in turn, demonstrated our commitment to the market through the addition of 17 new branches to our network, more than any of our peers.
"Despite a declining rate environment, full-year performance indicators remained impressive, achieving record margin and efficiency ratios. This was greatly aided by the strong growth in our non-interest income to just under EGP 2 billion, driven by our trade services and foreign exchange businesses.
"The Bank took this opportunity to strengthen its capital base while boosting distribution to shareholders by 20%. Today, CIB is ideally placed to take advantage of any opportunities that arise as market stability returns in the coming year."
FOURTH-QUARTER AND FULL-YEAR 2013 FINANCIAL HIGHLIGHTS
REVENUES
Fourth-quarter consolidated revenues were EGP 1.74 billion, 15% over the EGP 1.51 billion recorded in the last quarter of 2012.
Fourth-quarter standalone revenues were EGP 1.71 billion, 22% over third-quarter 2013 and up 25% from the EGP 1.37 billion achieved in fourth-quarter 2012.
Full-year consolidated revenues were EGP 6.98 billion, up 31% from the EGP 5.34 billion achieved last year. Standalone revenues were EGP 6.48 billion, up 27% from EGP 5.11 billion in 2012.
Net Interest Income
Fourth-quarter standalone net interest income generated EGP 1.37 billion, 27% higher than the year-ago period, leading to net interest margin (NIM) of 5.46%, up 51 basis points from fourth-quarter 2012.
Full-year standalone net interest income was EGP 5.05 billion, 29% higher than the year-ago period. 2013 NIM was 5.36%, 62 basis points higher than the year-ago period despite a falling interest rate environment (following a sharp decline in sovereign yields and three consecutive 50 basis point cuts by the CBE).
Non-Interest Income
Non-interest income generated a substantial portion of the Bank's growth in 2013. Consolidated non-interest income for the fourth quarter was EGP 377 million. Non-interest income for the full year was EGP 1.92 billion, up 34% over the year-ago period. Key growth drivers were record years for trade services, dealing room profits and increased debt capital market activity.
OPERATING EXPENSE
Consolidated operating expense for fourth-quarter 2013 was EGP 475 million, 2% more than the third quarter, and 6% less YoY. The consolidated efficiency ratio decreased to 26.2% versus 33.2% in fourth-quarter 2012.
Full-year operating expense was EGP 1.88 billion, up 14% YoY and well below the top-line growth rate, leading to an improvement in 2013's efficiency ratio to 26.5%, versus 30.6% in 2012.
LOANS
CIB's total consolidated gross loan portfolio was EGP 45.3 billion at the end of 2013, adding EGP 949 million, or 2%, over year-end 2012.
CIB maintained the highest loan market share of all private-sector banks, at 8.27% as of October 2013 (latest published figures).
DEPOSITS
CIB had a record year in deposit gathering: client deposits were EGP 96.8 billion, up EGP 18.1 billion (23%) over year-end 2012 and up 3% on a quarterly basis. Deposit market share was 7.63% (as of October 2013), up 40 basis points since December 2012 and maintaining CIB's leading position amongst all private-sector banks.
The consolidated gross loan-to-deposit ratio was 46.8% at the end of 2013, versus 56.3% for the comparable year-ago period.
ASSET QUALITY
CIB maintained its resilient asset quality. Standalone non-performing loans represented 3.96% of the gross loan portfolio.
Loan loss provision expenses were EGP 350 million in the fourth quarter, bringing full-year 2013 loan loss provision expense to EGP 916 million. The direct coverage ratio increased to 159% from 143% in third-quarter 2013 and 120% at year-end 2012, based on a total loan loss provision balance of EGP 2.86 billion.
CAPITAL AND LIQUIDITY
Total tier capital (before appropriation) was EGP 9.50 billion[5] in December 2013, or 13.55% of risk weighted assets (EGP 70.1 billion). Tier I capital was EGP 8.73 billion, or 12.46% of risk-weighted assets and 92% of total tier capital.
CIB maintained its conservative liquidity position in both local and foreign currencies, remaining comfortably above CBE requirements and Basel III guidelines (on a pro forma basis).
KEY METRICS AND BUSINESS UPDATES[6]
INSTITUTIONAL BANKING
· #1 private-sector bank in Egypt in terms of revenues, net income, deposits, loans, total assets, book value and market capitalization
· End-of-period loans retained were EGP 38.3 billion, up 2% from year-end 2012
· End-of-period deposits were EGP 26.3 billion, up 34% from year-end 2012
· Gross outstanding contingent business reached EGP 16.2 billion, up 9% YoY
CONSUMER BANKING
· End-of-period loans retained were EGP 7.2 billion, 8% over year-end 2012
· End-of-period deposits were EGP 70.7 billion, 19% over year-end 2012
· CIB was one of the few banks to expand its network in 2013, opening 17 branches to reach a total of 125 branches and 27 units throughout Egypt, supported by a network of 555 ATMs and 8,683 points of sale
SECURITIES BROKERAGE, ASSET MANAGEMENT & INVESTMENT BANKING
· CI Capital recorded revenues of EGP 141 million in 2013, up 16% YoY.
· Brokerage maintained its leading position among brokerage companies during the fourth quarter and ranked second throughout 2013.
· Asset Management ended the year with 10.5% market share and maintained its top three performance ranking among Egyptian asset managers for the fourth year in a row.
· Investment banking achieved a record year after closing a number of landmark transactions in the local market.
CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||||
Income Statement | ||||||||
4Q13 | 3Q13 | QoQ Change | 4Q12 | YoY Change | FY-13 | FY-12 | YoY Change | |
EGP million | EGP million | (4Q13 vs. 3Q13) | EGP million | (4Q13 vs. 4Q12) | EGP million | EGP million | (FY13 vs. FY12) | |
Net Interest Income | 1,363 | 1,281 | 6.4% | 1,082 | 25.9% | 5,054 | 3,914 | 29.1% |
Non-Interest Income | 377 | 520 | -27.5% | 432 | -12.6% | 1,923 | 1,430 | 34.4% |
Net Operating Income | 1,740 | 1,801 | -3.4% | 1,514 | 14.9% | 6,976 | 5,344 | 30.6% |
Non-Interest Expense | (475) | (464) | 2.4% | (506) | -6.2% | (1,884) | (1,653) | 14.0% |
Provisions | (350) | (75) | 365.3% | (203) | 71.9% | (916) | (610) | 50.1% |
Net Profit before Tax | 915 | 1,262 | -27.5% | 804 | 13.8% | 4,176 | 3,081 | 35.6% |
Income Tax | (157) | (351) | -55.2% | (233) | -32.5% | (1,182) | (887) | 33.2% |
Deferred Tax | (1) | 9 | NM | 16 | NM | 12 | 33 | -63.6% |
Net Profit | 757 | 920 | -17.8% | 587 | 28.9% | 3,006 | 2,227 | 35.0% |
Minority Interest | (0) | 0 | NM | (0) | NM | (0) | 1 | NM |
Net Profit After Minority | 757 | 920 | -17.7% | 588 | 28.9% | 3,006 | 2,226 | 35.1% |
Key Financial Indicators | ||||||||
4Q13 | 3Q13 | QoQ Change | 4Q12 | YoY Change | FY-13 | FY-12 | YoY Change | |
(4Q13 vs. 3Q13) | (4Q13 vs. 4Q12) | (FY13 vs. FY12) | ||||||
Profitability | ||||||||
ROAE | 26.7% | 33.2% | -19.7% | 24.1% | 10.5% | 26.5% | 22.9% | 15.8% |
ROAA | 2.92% | 3.62% | -19.5% | 2.62% | 11.4% | 2.90% | 2.48% | 16.8% |
Efficiency | ||||||||
Cost-to-Income | 26.2% | 26.0% | 0.7% | 33.2% | -21.3% | 26.5% | 30.6% | -13.4% |
Liquidity | ||||||||
Gross Loans-to-Deposits | 46.8% | 47.9% | -2.4% | 56.3% | -17.0% | 46.8% | 56.3% | -17.0% |
Asset Quality | ||||||||
NPLs-to-Gross Loans | 3.98% | 4.01% | -0.6% | 3.63% | 9.7% | 3.98% | 3.63% | 9.7% |
Capital Adequacy Ratio[7] | 13.6% | 14.8% | -8.7% | 15.7% | -13.7% | 13.6% | 15.7% | -13.7% |
STANDALONE FINANCIAL HIGHLIGHTS | ||||||||
Income Statement | ||||||||
4Q13 | 3Q13 | QoQ Change | 4Q12 | YoY Change | FY-13 | FY-12 | YoY Change | |
EGP million | EGP million | (4Q13 vs. 3Q13) | EGP million | (4Q13 vs. 4Q12) | EGP million | EGP million | (FY13 vs. FY12) | |
Net Interest Income | 1,365 | 1,279 | 6.7% | 1,079 | 26.5% | 5,050 | 3,901 | 29.5% |
Non-Interest Income | 349 | 129 | 170.1% | 289 | 21.0% | 1,433 | 1,207 | 18.7% |
Net Operating Income | 1,714 | 1,408 | 21.7% | 1,368 | 25.3% | 6,482 | 5,108 | 26.9% |
Non-Interest Expense | (445) | (404) | 10.1% | (402) | 10.5% | (1,727) | (1,445) | 19.5% |
Provisions | (350) | (75) | 365.3% | (203) | 71.9% | (916) | (610) | 50.1% |
Net Profit before Tax | 920 | 929 | -1.0% | 762 | 20.7% | 3,840 | 3,053 | 25.8% |
Income Tax | (159) | (350) | -54.5% | (235) | -32.2% | (1,180) | (884) | 33.4% |
Deferred Tax | (1) | (49) | -97.8% | 16 | NM | (45) | 34 | NM |
Net Profit | 760 | 531 | 43.2% | 544 | 39.7% | 2,615 | 2,203 | 18.7% |
Key Financial Indicators | ||||||||
4Q13 | 3Q13 | QoQ Change | 4Q12 | YoY Change | FY-13 | FY-12 | YoY Change | |
(4Q13 vs. 3Q13) | (4Q13 vs. 4Q12) | (FY13 vs. FY12) | ||||||
Profitability | ||||||||
ROAE | 26.0% | 18.6% | 39.7% | 21.5% | 20.7% | 22.3% | 21.8% | 2.5% |
ROAA | 2.92% | 2.09% | 40.1% | 2.42% | 20.8% | 2.51% | 2.45% | 2.7% |
NIM[8] | 5.46% | 5.25% | 4.0% | 4.96% | 10.2% | 5.36% | 4.74% | 13.1% |
Efficiency | ||||||||
Cost-to-Income | 24.8% | 29.0% | -14.4% | 29.2% | -14.9% | 26.1% | 28.0% | -6.7% |
Liquidity | ||||||||
Gross Loans-to-Deposits | 47.0% | 57.5% | -18.3% | 56.3% | -16.5% | 47.0% | 56.3% | -16.5% |
Asset Quality | ||||||||
NPLs-to-Gross Loans | 3.96% | 3.98% | -0.6% | 3.63% | 9.1% | 3.96% | 3.63% | 9.1% |
Direct Coverage Ratio | 158.8% | 142.7% | 11.3% | 119.9% | 32.5% | 158.8% | 119.9% | 32.5% |
BALANCE SHEET | ||||||
Balance Sheet Highlights | Consolidated | Standalone | ||||
Dec-13 | Dec-12 | YtD Change | Dec-13 | Dec-12 | YtD Change | |
EGP million | EGP million | EGP million | EGP million | |||
Cash & Due from Central Bank | 4,805 | 5,394 | -10.9% | 4,796 | 5,394 | -11.1% |
Due from Banks | 9,004 | 8,048 | 11.9% | 8,894 | 7,958 | 11.8% |
Treasury Bills & Governmental Notes | 23,665 | 8,018 | 195.2% | 23,655 | 7,978 | 196.5% |
Trading Financial Assets | 2,286 | 1,515 | 50.9% | 2,246 | 1,472 | 52.6% |
Available-for-Sale Investments | 23,378 | 21,177 | 10.4% | 23,364 | 21,162 | 10.4% |
Net Loans & Overdrafts | 41,720 | 41,877 | -0.4% | 41,970 | 41,877 | 0.2% |
Financial Derivatives | 103 | 137 | -25.0% | 103 | 137 | -25.0% |
Held-to-Maturity Investments | 4,197 | 4,216 | -0.4% | 4,187 | 4,206 | -0.4% |
Financial Investment in Subsidiaries | 193 | 165 | 16.7% | 599 | 938 | -36.1% |
Other Assets | 4,254 | 3,409 | 24.8% | 3,938 | 3,283 | 19.9% |
Total Assets | 113,607 | 93,957 | 20.9% | 113,752 | 94,405 | 20.5% |
Due to Banks | 1,373 | 1,715 | -19.9% | 1,373 | 1,715 | -19.9% |
Customer Deposits | 96,846 | 78,729 | 23.0% | 96,940 | 78,835 | 23.0% |
Other Liabilities | 3,380 | 2,701 | 25.2% | 3,324 | 2,545 | 30.6% |
Total Liabilities | 101,600 | 83,144 | 22.2% | 101,637 | 83,094 | 22.3% |
Total Shareholders' Equity | 8,953 | 8,538 | 4.9% | 9,500 | 9,108 | 4.3% |
Net Profit for the Period | 3,006 | 2,226 | 35.1% | 2,615 | 2,203 | 18.7% |
Shareholders' Equity & Net Profit | 11,960 | 10,765 | 11.1% | 12,115 | 11,311 | 7.1% |
Minority Interest | 47 | 48 | -0.2% | - | - | |
Total Liabilities & Shareholders' Equity | 113,607 | 93,957 | 20.9% | 113,752 | 94,405 | 20.5% |
http://www.rns-pdf.londonstockexchange.com/rns/8209Z_-2014-2-11.pdf
[1] Based on managerial accounts
[2] CBE regulations announced in December 2012 stipulate that banks report capital adequacy according to a Basel II framework
[3] Equity includes profit of the year
[4] As of October 2013 (latest published figures)
[5] 2013 profits are excluded from the capital base as per regulations. Total tier capital would be EGP 11.4 billion subject to the approval of the appropriation proposal
[6] Loan and deposit balances based on managerial accounts
[7] Before appropriation of 2013 profits.
[8] Based on Managerial accounts