11 February 2024
COMMERCIAL INTERNATIONAL BANK
("CIB") REPORTS
FULL-YEAR 2023 CONSOLIDATED
REVENUE OF EGP 56.0 BILLION AND NET INCOME OF
EGP 29.6 BILLION, OR EGP 8.59
PER SHARE, UP 84% FROM FULL-YEAR
2022
FOURTH-QUARTER 2023 CONSOLIDATED REVENUE OF EGP 16.7 BILLION AND
NET INCOME OF EGP 7.23 BILLION, UP 83% FROM FOURTH-QUARTER
2022
·
Fourth-Quarter
2023 Consolidated Financial Results
o Net
income of EGP 7.23 billion, up 83% year-on-year (YoY)
o Revenues of EGP 16.7 billion, up 71% YoY
o Return on average equity (ROAE) of 34.5%
o Return on average assets (ROAA) of 3.51%
o Efficiency ratio of 20.8%
o Net
interest margin (NIM)[1] of 8.05%
·
Full-Year 2023
Consolidated Financial Results
o Net
income of EGP 29.6 billion, up 84% YoY
o Revenues of EGP 56.0 billion, up 70% YoY
o ROAE[2] of 39.7%
o ROAA2 of 4.06%
o Efficiency ratio of 17.1%
o NIM1 of 7.55%
·
Balance Sheet
Performance
o Total tier capital recorded EGP 100 billion, or 26.2% of
risk-weighted assets.
o CBE
local currency liquidity ratio of 30.2%, foreign currency liquidity ratio of
45.3% (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 91% of total
liabilities
o Non-performing loans coverage ratio of 305%
·
Supporting our
Economy
o Funding to businesses and individuals recorded EGP 266
billion, growing by 20% over full-year 2023, or 12% net of the EGP
devaluation impact, with a loan market share of
4.97%[3].
o Deposits recorded EGP 675 billion, growing by 27% over
full-year 2023, or 18% net of the EGP devaluation impact, with a
deposit market share of 6.81%3.
o Loan-to-Deposit Ratio recorded 39.4% by end of
2023.
o In
full-year 2023, CIB's operations generated EGP 15.3 billion in
corporate, payroll, and other taxes.
·
Committed to our
Community
o CIB
Foundation funded "Magdi Yacoub Heart Foundation" with the second
installment for establishing Catheterization Laboratory, "The New
Global Heart Centre in Cairo", in addition to the first installment
for 100 pediatric open-heart surgeries and 100
catheterizations.
o CIB
Foundation subsidized "Aswan University Hospital" with the needed
amount to outfit the Pediatric Neurosurgery Department with the
required equipment.
o CIB
Foundation endowed "Egyptian Clothing Bank" with the second
installment to manufacture 120,000 training suits.
o CIB
Foundation financed "Yahiya Arafa Children's Charity Foundation" to
cover their annual operating costs of
2023.
o CIB
Foundation funded "Shifa' Al-Omran Hospital" with the first
installment to augment their Emergency Department with medication
and equipment.
o CIB
Foundation joined forces with "The Awad Charity Foundation" to
establish a Rehabilitation Center for children with special needs
in "Beni Suef University".
·
Awards &
Rankings
o Global Finance:
§ Best
Private Bank
§ Best
Supply Chain Finance Bank in Africa 2023
§ Best Trade
Finance Provider in Egypt
§ Best Bank
for Cash Management in Egypt
§ Transaction Banking Award
§ Best Bank
in Egypt 2023
§ World's
Best Sub-Custodian Bank Award 2023
§ Best SME
Bank Award 2024
§ World's
Best Foreign Exchange Awards 2024 - Country Awards
o EMEA
Finance:
§ Best
Mergers & Acquisitions Deal in MENA
§ Best
Securitization House in Africa
§ Best
Securitization Deal in Africa
§ Best
Payment Services in North Africa
§ Best Cash
Management Services in North Africa
§ Best Trade
Finance Services in North Africa
§ Best
Payment Services in Africa
§ Best
Digital Bank - Pan Africa
§ Best Local
Bank in Egypt
o MEED:
§ Best Bank
in Trade Finance
o Euromoney:
§ Best Bank
in Egypt
§ Best Bank
for SMEs in Egypt
§ Best Bank
for ESG in Egypt
§ Best
Service for Cash Management
o African Banker
§ Lifetime
Achievement Award
o The
Banker
§ Bank of
the Year in Egypt
CAIRO - Commercial International
Bank (EGX: COMI) today reported fourth-quarter 2023 consolidated
net income of EGP 7.23 billion, up by 83% from fourth-quarter 2022.
Full-Year 2023 consolidated net income recorded EGP 29.6 billion,
or EGP 8.59 per share, up by 84% from last year.
Management commented:
"Despite adverse market conditions caused
by the simultaneous and sequential global and local events, CIB has
demonstrated the strength and sustainability of its business model
by achieving yet another
record year of financial performance, while maintaining
industry-leading solvency levels in the
market.
Echoing an ambiguous macroeconomic
outlook as certain challenges persisted
since 2022, Management upheld its prudent
and proactive risk management practices, accumulating EGP 3.5
billion of provisions in fourth-quarter 2023, accounting for any
unexpected deterioration in asset quality, while safeguarding the
Bank against any unsettling conditions. With that, CIB maintained its Coverage for Expected Losses in
the Sector, with Loan Loss Provision Balance of EGP 29.2 billion,
covering 11% of the Bank's Gross Loan Portfolio, and 16% of the
unsecured portion.
Liquidity management also remained a
priority for CIB. The Bank is committed to maintain sufficient
liquidity levels, catering for potential market needs. As such,
liquidity ratios remained comfortable, in both local and foreign
currency, with ample room above both, the minimum regulatory
requirements and Basel III requirements.
Capitalizing on CIB's flexible
balance sheet structure, the Bank delivered strong profitability
growth, with Full-Year 2023 Bottom Line recording EGP 29.6 billion,
growing by 84% from last year, and with exceptional Top Line growth
of 70%. Management continued to focus on the sustainable revenue
stream, growing funds at a healthy pace, with an 18% real growth in
deposits. This growth is sustained by the Bank's commitment to
controlling its cost of funds, where CIB has successfully
maintained its healthy share of Current and Saving Accounts (CASA)
of 55% to Total Deposits. The year also saw
robust lending activity, coupled with strong fee income growth,
growing at a real growth rate of 11%, and 15% after accounting for
Securitization Deals, to preserve its market position as the
largest Lender-and-Securitizer among Private-Sector
Banks.
This strong financial performance
fed into a stronger Capital Base with Capital Adequacy Ratio (CAR)
rebounding to 26.2%, after accounting for 2023 Proposed Profit
Appropriation, despite the turbulent times. This came as Management
continued to focus on growing the Bank's core business, while
generating returns that would result in rapid growth in the Bank's
Capital Base and preserve the CAR against adverse economic
fluctuations.
Moreover, on the capital front, and
in an effort to ensure a sustainable,
comfortable Capital Base that is less vulnerable to external
factors, this quarter, CIB managed to
secure USD 150 million subordinated Tier II loan from The European
Bank for Reconstruction and Development (EBRD), with 10-year
maturity, following another Loan secured from the International
Finance Corporation (IFC) in the second quarter of 2023. It is
worthy to mention that the aforementioned capital position
increased, while delivering a Return on Average Equity (ROAE)
recording 39.7% - one of the highest in the Sector -, up by 15
percentage points from last year after accounting for 2023 Proposed
Profit Appropriation.
Overall, despite the challenges
faced throughout the year, which are expected to remain, Management
remains optimistic about CIB's growth and profitability, with great
confidence in the Bank's ability to efficiently navigate through
challenging market conditions, capitalizing on its solid balance
sheet fundamentals and well-founded solvency."
FOURTH-QUARTER 2023 FINANCIAL HIGHLIGHTS
REVENUES
Fourth-quarter 2023 standalone
revenues were EGP 16.3 billion, up 69% from fourth-quarter 2022.
Full-Year 2023 standalone revenues were EGP 54.6 billion, up 67% from full-year 2022, on the back of 71%
increase in net interest income, while non-interest income had a
marginal decrease by 4%.
NET
INTEREST INCOME
Full-Year 2023 standalone net
interest income recorded EGP 52.7 billion, increasing by 71% YoY,
generated at 7.55% Total NIM1, which increased by 145 basis points
(bp) YoY, with Local Currency NIM1
recording 9.37%, coming 181bp higher YoY, and
Foreign Currency NIM1 recording 3.87%, coming 153bp higher YoY.
NON-INTEREST INCOME
Full-Year 2023 standalone
non-interest income recorded EGP 1.83 billion, with Trade Service
fees recording EGP 2.28 billion, growing by 96% YoY, with
outstanding balance of EGP 174 billion[4].
OPERATING EXPENSE
Full-Year 2023 standalone operating
expense was EGP 9.77 billion, up 36% YoY.
Cost-to-income[5] reported 17.0%, coming 373bp
lower YoY, and remaining comfortably below the desirable level of
30%.
LOANS
Gross loan portfolio recorded EGP
266 billion, growing by 20% over full-year 2023, with real growth
of 12% net of the EGP devaluation
impact, which added EGP 16.7 billion to the
EGP equivalent balance. Growth was driven wholly by local currency
loans, increasing by 24% or EGP 37.2 billion, sufficiently
counterbalancing net foreign currency loan repayments of 11% or USD
310 million. CIB's loan market share reached 4.97% as of August
2023.
DEPOSITS
Deposits recorded EGP 675 billion,
growing by 27% over full-year 2023, with real growth of
18% net of the EGP devaluation impact,
which added EGP 40.0 billion to the EGP equivalent
balance. Growth was driven by local currency deposits, increasing
by 26% or EGP 94.3 billion, together with foreign currency deposits
adding 5% or USD 352 million. CIB's deposit market share recorded
6.81% as of August 2023.
ASSET QUALITY
Standalone non-performing loans
represented 3.54% of the gross loan portfolio, and were covered
309% by the Bank's EGP 29.1 billion loan loss provision balance.
Full-year 2023 impairment charge for credit losses recorded EGP 4.29 billion,
compared to EGP 1.51 billion in full-year 2022.
CAPITAL AND LIQUIDITY
Total tier capital recorded EGP 100
billion, or 26.2% of risk-weighted assets as of December 2023. Tier
I capital reached EGP 83.8 billion, or 84% of total tier capital.
CIB maintained its comfortable liquidity and funding position above
CBE requirements and Basel III guidelines in both local currency
and foreign currency. CBE liquidity ratios remained well above the
regulator's requirements, with local currency liquidity ratio
recording 30.2% by end of December 2023, compared to the
regulator's threshold of 20%, and foreign currency liquidity ratio
reaching 45.3%, above the threshold of 25%. NSFR was 264% for local
currency and 229% for foreign currency, and LCR was 2250% for local
currency and 175% for foreign currency, comfortably above the 100%
Basel III requirement.
KEY
METRICS AND BUSINESS UPDATES[6]
o #1
private-sector bank in Egypt in terms of revenues, net income,
deposits, and total assets.
INSTITUTIONAL BANKING
o End-of-period gross loans were EGP 198 billion, 22% higher
YoY, with real growth of
11% net of the EGP devaluation
impact, predominantly on 30% growth in local currency
loans.
o End-of-period deposits were EGP 247 billion, 26% higher
YoY, with real growth of
18% net of the EGP devaluation impact,
mostly driven by 20% growth in local currency
deposits, besides 13% growth in foreign currency
deposits.
o Gross outstanding contingent business reached EGP 180 billion,
28% higher YoY.
BUSINESS BANKING
o End-of-period gross loans were EGP 9 billion, 26% higher YoY,
wholly on 26% growth in local currency loans.
o End-of-period deposits were EGP 60 billion, 11% lower
YoY, with 17% decrease in local currency deposits and 15% decrease in
foreign currency deposits.
o Gross outstanding contingent business reached EGP 3.70
billion, coming flat YoY.
RETAIL INDIVIDUALS BANKING
o End-of-period gross loans were EGP 59 billion, higher by
13% YoY, wholly on
13% increase in local currency loans.
o End-of-period deposits were EGP 368 billion, 38% higher YoY,
with real growth of 28% net of the EGP
devaluation impact, driven by 42% growth in local currency deposits
and 4% growth in foreign currency
deposits.
o CIB
continued to expand its network to reach a total of 193 branches
and 15 units across Egypt, supported by a network of 1,339
ATMs.
CONSOLIDATED FINANCIAL HIGHLIGHTS
|
|
|
|
|
Income Statement
|
4Q23
|
3Q23
|
QoQ Change
|
4Q22
|
YoY Change
|
FY23
|
FY22
|
YoY Change
|
EGP million
|
EGP
million
|
(4Q23 vs.
3Q23)
|
EGP
million
|
(4Q23 vs.
4Q22)
|
EGP million
|
EGP
million
|
(FY23 vs.
FY22)
|
Net Interest Income
|
15,199
|
13,838
|
10%
|
9,187
|
65%
|
52,930
|
31,005
|
71%
|
Non-Interest Income
|
1,476
|
11
|
NM
|
588
|
151%
|
3,070
|
1,893
|
62%
|
Net
Operating Income
|
16,675
|
13,849
|
20%
|
9,776
|
71%
|
55,999
|
32,898
|
70%
|
Non-Interest Expense
|
(3,574)
|
(2,205)
|
62%
|
(2,230)
|
60%
|
(10,076)
|
(7,372)
|
37%
|
Impairment Charge for Credit
Losses
|
(3,053)
|
(34)
|
NM
|
(1,287)
|
137%
|
(4,270)
|
(1,585)
|
169%
|
Net
Profit before Tax
|
10,047
|
11,610
|
-13%
|
6,259
|
61%
|
41,653
|
23,941
|
74%
|
Income Tax
|
(3,560)
|
(3,792)
|
-6%
|
(1,459)
|
144%
|
(13,100)
|
(6,345)
|
106%
|
Deferred Tax
|
765
|
535
|
43%
|
(827)
|
NM
|
1,158
|
(1,424)
|
NM
|
Net
Profit from Continued Operations
|
7,252
|
8,353
|
-13%
|
3,973
|
83%
|
29,711
|
16,172
|
84%
|
Net Profit from Discontinued
Operations
|
7.6
|
(0.1)
|
NM
|
0
|
NM
|
(42)
|
0
|
NM
|
Net
profit
|
7,260
|
8,353
|
-13%
|
3,973
|
83%
|
29,669
|
16,172
|
83%
|
Non-Controlling Interest
|
31
|
(0.1)
|
NM
|
23
|
37%
|
34
|
58
|
-41%
|
Bank's Shareholders
|
7,229
|
8,353
|
-13%
|
3,951
|
83%
|
29,635
|
16,114
|
84%
|
|
|
|
|
|
|
|
|
|
Financial Indicators
|
4Q23
|
3Q23
|
QoQ Change
|
4Q22
|
YoY Change
|
FY23
|
FY22
|
YoY Change
|
|
|
(4Q23 vs.
3Q23)
|
|
(4Q23 vs.
4Q22)
|
|
|
(FY23 vs.
FY22)
|
Profitability
|
|
|
|
|
|
|
|
|
ROAE*
|
34.5%
|
45.8%
|
-25%
|
23.9%
|
44%
|
39.7%
|
25.1%
|
58%
|
ROAA*
|
3.51%
|
4.16%
|
-15%
|
2.57%
|
37%
|
4.06%
|
2.86%
|
42%
|
Efficiency
|
|
|
|
|
|
|
|
|
Cost-to-Income
|
20.8%
|
14.6%
|
42%
|
22.1%
|
-6%
|
17.1%
|
21.2%
|
-19%
|
Liquidity
|
|
|
|
|
|
|
|
|
Gross Loans-to-Deposits
|
39.5%
|
38.2%
|
3.1%
|
41.9%
|
-6%
|
39.5%
|
41.9%
|
-6%
|
Asset Quality
|
|
|
|
|
|
|
|
|
NPLs-to-Gross Loans
|
3.59%
|
5.08%
|
-29%
|
4.86%
|
-26%
|
3.59%
|
4.86%
|
-26%
|
Capital Adequacy Ratio
|
26.2%
|
21.4%
|
22%
|
22.7%
|
16%
|
26.2%
|
22.7%
|
16%
|
*Full-Year ROAE and ROAA after
profit appropriation
|
STANDALONE FINANCIAL HIGHLIGHTS
|
Income Statement
|
4Q23
|
3Q23
|
QoQ Change
|
4Q22
|
YoY
Change
|
FY23
|
FY22
|
YoY
Change
|
EGP
million
|
EGP
million
|
(4Q23 vs.
3Q23)
|
EGP
million
|
(4Q23 vs.
4Q22)
|
EGP
million
|
EGP
million
|
(FY23 vs.
FY22)
|
Net Interest Income
|
15,160
|
13,797
|
10%
|
9,125
|
66%
|
52,747
|
30,836
|
71%
|
Non-Interest Income
|
1,184
|
(1,074)
|
NM
|
551
|
115%
|
1,831
|
1,916
|
-4%
|
Net
Operating Income
|
16,344
|
12,723
|
28%
|
9,677
|
69%
|
54,578
|
32,752
|
67%
|
Non-Interest Expense
|
(3,462)
|
(2,133)
|
62%
|
(2,152)
|
61%
|
(9,766)
|
(7,177)
|
36%
|
Impairment Charge for Credit
Losses
|
(3,038)
|
(36)
|
NM
|
(1,249)
|
143%
|
(4,287)
|
(1,512)
|
184%
|
Net
Profit before Tax
|
9,844
|
10,554
|
-7%
|
6,275
|
57%
|
40,525
|
24,062
|
68%
|
Income Tax
|
(3,535)
|
(3,771)
|
-6%
|
(1,358)
|
160%
|
(13,076)
|
(6,342)
|
106%
|
Deferred Tax
|
728
|
805
|
-10%
|
(992)
|
NM
|
1,319
|
(1,590)
|
NM
|
Net
Profit
|
7,036
|
7,589
|
-7%
|
3,924
|
79%
|
28,768
|
16,130
|
78%
|
|
|
|
|
|
|
|
|
|
|
| |
Financial Indicators
|
4Q23
|
3Q23
|
QoQ Change
|
4Q22
|
YoY Change
|
FY23
|
FY22
|
YoY Change
|
|
|
(4Q23 vs.
3Q23)
|
|
(4Q23 vs.
4Q22)
|
|
|
(FY23 vs.
FY22)
|
Profitability
|
|
|
|
|
|
|
|
|
ROAE*
|
33.6%
|
41.5%
|
-19%
|
23.7%
|
41%
|
38.6%
|
25.1%
|
54%
|
ROAA*
|
3.43%
|
3.79%
|
-9%
|
2.56%
|
34%
|
3.95%
|
2.87%
|
37%
|
NIM**
|
8.05%
|
7.46%
|
8%
|
6.49%
|
24%
|
7.55%
|
6.10%
|
24%
|
Efficiency
|
|
|
|
|
|
|
|
|
Cost-to-Income
|
20.6%
|
15.3%
|
35%
|
21.5%
|
-4%
|
17.0%
|
20.7%
|
-18%
|
Liquidity
|
|
|
|
|
|
|
|
|
Gross Loans-to-Deposits
|
39.4%
|
38.2%
|
3.0%
|
41.8%
|
-6%
|
39.4%
|
41.8%
|
-6%
|
Asset Quality
|
|
|
|
|
|
|
|
|
NPLs-to-Gross Loans
|
3.54%
|
5.04%
|
-30%
|
4.81%
|
-26%
|
3.54%
|
4.81%
|
-26%
|
Direct Coverage Ratio
|
309%
|
233%
|
33%
|
229%
|
35%
|
309%
|
229%
|
35%
|
*Full-Year ROAE and ROAA after
profit appropriation
**NIM based on managerial
accounts
BALANCE SHEET
|
|
Consolidated
|
Standalone
|
|
Balance Sheet
|
Dec-23
|
Dec-22
|
YoY Change
|
Dec-23
|
Dec-22
|
YoY Change
|
|
|
EGP
million
|
EGP
million
|
(Dec-23
Vs.
Dec-22)
|
EGP
million
|
EGP
million
|
(Dec-23
Vs.
Dec-22)
|
|
Cash & Due from Central
Bank
|
71,888
|
47,493
|
51%
|
71,747
|
47,385
|
51%
|
|
Due from Banks
|
231,085
|
133,857
|
73%
|
230,709
|
133,766
|
72%
|
|
Net Loans &
Overdrafts
|
235,808
|
196,578
|
20%
|
234,647
|
195,599
|
20%
|
|
Financial Derivatives
|
1,105
|
1,940
|
-43%
|
1,102
|
1,940
|
-43%
|
|
Financial Investment
Securities
|
271,466
|
238,545
|
14%
|
270,138
|
237,095
|
14%
|
|
Investments in Associates and
Subsidiaries
|
116
|
186
|
-38%
|
672
|
1,074
|
-37%
|
|
Other Assets
|
23,397
|
17,233
|
36%
|
23,512
|
16,784
|
40%
|
|
Total Assets
|
834,866
|
635,832
|
31%
|
832,527
|
633,643
|
31%
|
|
Due to Banks
|
12,458
|
3,497
|
256%
|
12,427
|
3,476
|
258%
|
|
Customer Deposits
|
677,237
|
531,617
|
27%
|
675,310
|
530,125
|
27%
|
|
Other Liabilities
|
54,529
|
32,381
|
68%
|
54,490
|
32,322
|
69%
|
|
Total Liabilities
|
744,225
|
567,494
|
31%
|
742,227
|
565,922
|
31%
|
|
Shareholders' Equity & Net Profit
|
90,481
|
67,758
|
34%
|
90,300
|
67,721
|
33%
|
|
Non-Controlling Interest
|
160
|
580
|
-72%
|
0
|
0
|
NM
|
|
Total Liabilities & Shareholders' Equity
|
834,866
|
635,832
|
31%
|
832,527
|
633,643
|
31%
|
|