CIB posts LE 3.6B revenues in Q2 of 2017

CAIRO – 20 July 2017: The consolidated revenues of the Commercial International Bank (CIB) grew 29 percent to LE 3.55 billion, while net income rose 25 percent to LE 1.83 billion in the second quarter of 2017, a Wednesday report said.

For the first half of 2017, net income advanced 29 percent to LE 3.56 billion, while revenues amounted to LE 6.88 billion, up 29 percent year-on-year.

Standalone operating expense leveled up 25 percent in the first half of 2017 to reach LE 1.5 billion, the statement read.

Deposits went up 2 percent in Q2 of 2017 to reach LE 245 billion, translating into a deposit market share of 8.36 percent.

CIB’s Management anticipated a forthcoming increase in corridor rates, despite a 300 base points (bp) hike having already taken place towards the end of 2016 post the Egyptian Pound flotation.

The bank noted that it has taken the decision to raise benchmark rates by 200 bp during the first six months of 2017 and managed to deliver commendable results.

CIB achieved record top and bottom lines and impressively grew its loan portfolio, despite the backdrop of a shortage in local currency liquidity and subdued growth in lending, which adversely impacted margins in the Egyptian banking sector, the bank said.

The bank announced continuing to deliver market-leading performance while maintaining comfortable capital and liquidity positions, in accordance with both CBE regulations and international best practices, as “the bank’s balance sheet has become more lenient to accommodate any up- or down-moves in both interest rates and currency exchange rates.”

“We expect the second half of 2017 to be challenging and eventful, as the effects of the country’s economic reforms continue to ripple through the economy. Specifically, the road ahead is beset by challenges, ranging from current inflation rates to the more recent 200bp corridor rate hike,” CIB stated.