News Column

CIB 2013 net income hits LE 3.01 billion

February 12, 2014



CAIROCommercial International Bank the leading financial institution in Egypt,  today announced its  full-year 2013 financial results recording 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. 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.   Source: Company Press Release


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Source: Arab Finance (Egypt)


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