CIB reports EGP 7.542bn in pre-tax profit during H1 of 2020

The Commercial International Bank – Egypt (CIB) revealed it has achieved EGP 7.542bn in pre-tax profits by the end of June 2020, compared to the EGP 7.396bn at the end of June 2019. The latest figures provided by the bank reflect an increase of 2%.

In a statement to the Egyptian Stock Exchange (EGX) on Tuesday, that bank said it achieved a net profit of EGP 4.998bn during the first half (H1) of 2020. The first half figures reflect a decrease of 7% on the same period in 2019.

CIB’s consolidated revenues increased 17% during the financial period ending on 30 June compared to the same period of the previous year. The uptick came as a result of the increase in net income from returns by 25%, while net income other than returns decreased by 79%.

The bank’s results revealed that the ratio of expenses to revenues decreased by 15%, to record 20.7% at the end of June 2020, compared to 24.4% at the end of June 2019.

CIB recorded a 9% growth in its loan portfolio at the end of June 2020 to about EGP 134.955bn, compared to the same period in the previous year. This also reflects an increase of 2% compared to the end of December 2019.

Deposits also witnessed an increase of about 5% compared to fiscal year (FY) 2018/2019, with the ratio loans to deposits in the bank reaching about 42.2%, or about EGP 320.146bn.

CIB managed to maintain the quality of assets, as the ratio of irregular loans to total loans decreased to 4.01% by the end of June 2020. This compared to 4.96% in the financial period ending on 30 June 2019, or the end of FY 2018/2019.

The bank’s business results report revealed that the bank made allocations amounting to EGP 2.260bn, compared to EGP 795m during the same period in 2019.

In its statement, the bank said it had, in H1 of 2020, established unprecedented allocations that take into account the expected credit losses. This comes in light of the unprecedented global spread of the novel coronavirus (COVID-19), which has caused widespread commercial disruption and caused doubts in the global economy.

With the economic uncertainty due to the pandemic, CIB has continued its rational policy in managing risks and facing crises. The bank added that the exact credit losses are difficult to estimate with certainty at the present time.

CIB added that despite the exceptional and necessary allocations in its net profit compared to last year, it was able to demonstrate continued leadership in the banking sector in terms of revenue and expense management. It has also maintained its leading market share, while emphasising the integrity of the risk management systems it abides by.

CIB has maintained a strong capital base with a capital adequacy ratio of 29.5%, which supports the bank’s ability to cope with market fluctuations.

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