CAIRO – 11 May 2017: Commercial International Bank (CIB) recorded a net income of 1.73 billion EGP ($95.36 million) during the first quarter of 2017, marking an annual growth of 34 percent, according to a Werdnesday statement to the Egyptian Exchange.
CIB’s earnings were driven by the refreshments of non-interest income, registering 79 percent Year on Year (YoY) growth and by gains of CI Capital, its affiliate investment bank, that comprised 16 percent of its bottom line.
Approximately 25 percent of the operating income was constituted by non-interest income compared to 21 percent over the past four quarters. The improvement in the non-interest income was a result of trade fees and foreign exchange transaction volumes.
Another decline was witnessed in the total operating expenses due to foreign currency (FX) losses in Q4 in 2016. The decline resulted in decrease in the cost-to-income ratio to 31 percent. A factor slowing down the growth in net operating income was the highly booked provisions reflected by a 2.1percent cost of risk.
Pharos Research recommended an Equal weight on Fair Value (FV) worth of 86.83 EGP, as it praises benefits. The bank is able to maintain a 25 percent bottom line growth over the forecast horizon which is triggered by buoyancy in NIM and the rush in non-interest income.
The management level within CIB aims to achieve at least a minimum of 30 percent lending growth in 2017 and a low cost deposit accumulation in efforts to build the appropriate funding base for growth.