Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,424.85 162.29 1.00%
S&P 500 1,862.31 19.33 1.05%
NASDAQ 4,086.22 52.06 1.29%
Ticker Volume Price Price Delta
STOXX 50 3,139.26 47.74 1.54%
FTSE 100 6,584.17 42.56 0.65%
DAX 9,317.82 144.11 1.57%
Ticker Volume Price Price Delta
NIKKEI 14,365.91 -51.77 -0.36%
TOPIX 1,163.81 -2.74 -0.23%
HANG SENG 22,731.30 35.29 0.16%

Commercial Int Bank CBKD 3rd Quarter Results Press Release



  Commercial Int Bank (CBKD) - 3rd Quarter Results Press Release

RNS Number : 0310R
Commercial Intnl Bank (Egypt) SAE
14 November 2012
 



 

News Release

 

13 November 2012

 

       COMMERCIAL INTERNATIONAL BANK ("CIB") REPORTS THIRD-QUARTER 2012
      CONSOLIDATED NET INCOME OF EGP 611 MILLION, OR EGP 0.91 PER SHARE,
              UP 94% FROM EGP 314 MILLION IN THIRD-QUARTER 2011

 

·     Record third-quarter 2012 financial results:

o  Consolidated net income of EGP 611 million, or EGP 0.91 per share, up 17%
quarter-on-quarter (QoQ) and 94% year-on-year (YoY)

o  Consolidated revenues of EGP 1.45 billion, up 18% QoQ and 57% YoY

 

·     September 2012 Year-to-Date (YtD) financial highlights:

o  Consolidated net income of EGP 1.64 billion, or EGP 2.73 per share (up 54%
YoY), on revenues of EGP 3.83 billion (up 35% YoY)

o  Consolidated net income before tax of EGP 2.28 billion, up 63% YoY

o  Standalone net interest margin of 4.65%^^[1], up 27% YoY

o  Consolidated efficiency ratio (cost-to-income) improved to 29.7% from 40.4%
in the comparable period last year

 

·     Robust balance sheet:

o  Total tier capital of EGP 9.43 billion (16.5% of risk-weighted assets)
versus EGP 8.53 billion at year-end 2011, of which 91% is high quality Tier I
capital

o  Total risk-weighted assets of EGP 57.2 billion, up 3% from year-end 2011

o  High quality of funding, with customer deposits comprising 94% of total
liabilities

o  Non-performing loans were 3.39% of the gross loan portfolio versus 2.81%
for year-end 2011

o  Loan loss provision balance increased to EGP 1.71 billion, up 17% from
year-end 2011, and covered non-performing loans by 116.0% (versus 120.6% at
year-end 2011)

 

·     Superior nine-month returns:

o  Consolidated return on average equity of 24.1% versus 15.0% in the
prior-year period

o  Consolidated return on average assets of 2.44% versus 1.81% in the
prior-year period

 

·     Committed to our community:

o  The CIB Foundation signed a EGP 1 million protocol of cooperation with
Rotary Kasr El-Nil to sponsor 1,000 children's eye surgeries through Rotary's
"Children's Right to Sight" programme. Another EGP 0.5 million was donated to
the Gozour Foundation for Development to fund ten eye exam caravans through
the 6/6 Eye Exam Caravan program

o  Following a previous EGP 13 million donation to the Magdi Yacoub Heart
Foundation, the CIB Foundation donated EGP 6 million to cover the costs
associated with 100 children's open heart surgeries, and committed to a
further EGP 2 million donation to fund a children's playroom in the Aswan
Heart Centre.

 

CAIRO - Commercial International Bank (EGX: COMI) today reported third-quarter
2012 consolidated net income of EGP 611 million, or EGP 0.91 per share, an
increase of 94% over third quarter 2011 net income of EGP 314 million, or EGP
0.54 per share. On a standalone basis, the Bank reported the same net income
of EGP 611 million.

Hisham Ezz Al-Arab, Chairman and Managing Director of CIB, commented on the
quarter: "I am delighted to report that CIB has continued its strong
performance in 2012, with record top and bottom lines for the third quarter
despite the typical seasonal slowdown at this time of year. Consolidated
revenues came in at EGP 3.83 billion in the first nine months, up 35% over
both 2011 and 2010. Third-quarter revenues were EGP 1.45 billion, an increase
of 57% year-on-year and 18% over a strong second quarter, demonstrating an
accelerating growth trend during the year.

"These outstanding numbers mark the success of CIB's approach of driving
strong expansion in our consumer banking position while upholding our leading
position in the corporate sector. We expect the Bank's momentum to continue
into the fourth quarter, producing strong full-year results."

 

THIRD-QUARTER FINANCIAL HIGHLIGHTS

REVENUES

Third-quarter consolidated revenues were EGP 1.45 billion, up 57% from EGP 923
million in third-quarter 2011 and 18% higher than second-quarter 2012.
Year-to-date consolidated revenues were EGP 3.83 billion, up 35% from the EGP
2.84 billion achieved in the year-ago period.

On a standalone basis, the Bank achieved EGP 1.42 billion in revenues for the
third quarter, up 59% over the year-ago period and 18% over second-quarter
2012. Year-to-date standalone revenues were EGP 3.74 billion, an increase of
34% over the equivalent year-ago period.

Net Interest Income

The asset pricing strategy adopted in early 2012, alongside larger sovereign
debt positions and yields, lifted the Bank's net interest margin (NIM) 100
basis points to 4.65% for the year-to-date, a 27% increase in margins over the
3.65% achieved in the first nine months of 2011. This generated consolidated
net interest income of EGP 2.83 billion, 45% higher than the EGP 1.95 billion
recorded in the year-ago period.

Non-Interest Income

Consolidated non-interest income for the first three quarters of 2012 was EGP
999 million, an increase of 12% over the year-ago period. Third-quarter
non-interest income was EGP 422 million, 43% over second-quarter 2012 and 81%
over third-quarter 2011.

Trade services experienced strong year-on-year growth of 15%, recording fees
of EGP 176 million in the first three quarters of 2012. Bancassurance revenues
surged to EGP 33 million, almost three times the year-ago figure. Net credit
and debit card fees reached EGP 72 million, a 40% year-on-year increase,
reflecting the Bank's solid growth strategy in consumer banking.

CIB incurred losses on financial investments of EGP 30 million compared to
income of EGP 38 million in the comparable year-ago period, and dividend
income decreased 62% to EGP 23 million from EGP 59 million in the year-ago
period. These declines were offset by EGP 101 million in income related to the
positive mark-to-market revaluation of the sovereign debt trading portfolio.

 

 

OPERATING EXPENSE

Consolidated operating expense in the first three quarters of 2012 was EGP
1.15 billion, up 1% from EGP 1.13 billion in the comparable year-ago period.
Third-quarter operating expense was EGP 376 million, down 2% from the second
quarter and up 2% year-on-year. Consolidated administrative expense grew by 7%
in the first nine months to EGP 1.12 billion, compared to 1.05 billion in the
year-ago period.

Despite aggressive revenue growth, management continued its strict control of
expenses, leading to a significantly improved consolidated year-to-date
efficiency ratio of 29.7% versus 40.4% in 2011. On a standalone basis, CIB's
operating expense increased 8%, and the standalone efficiency ratio improved
to 27.6% from 35.3% in the year-ago period.

 

LOANS

Total gross loans were EGP 43.3 billion at the end of the third quarter, up 9%
over third-quarter 2011 and 1% over year-end 2011. Gross and net loans
increased 1% over second-quarter 2012.

CIB maintained the highest loan market share of all private-sector banks at
8.35% as of August 2012 (according to the Central Bank of Egypt's latest data
at time of print).

 

DEPOSITS

Customer deposits were EGP 78.5 billion on a standalone basis, up 12%
year-on-year and 10% over year-end 2011. On a QoQ basis, deposits increased
2%.

Deposit market share grew to 7.59% as of August 2012, maintaining CIB's
leading position amongst all private-sector banks.

The loan-to-deposit ratio was 55% in third-quarter 2012, versus 60% at
year-end 2011.

 

ASSET QUALITY

Management's conservative risk management approach continued in third-quarter
2012, with cost of risk reaching 99 bp[2] in the first nine months of 2012, up
from 77 bp for full-year 2011. Non-performing loans were 3.39% of gross loans,
up from 2.81% at year-end 2011.

Coverage of non-performing loans by provisions was 116%, based on a total loan
loss provisions reserve of EGP 1.7 billion and EGP 284 million for contingent
and other provisions.

 

CAPITAL[3]

Total tier capital increased to EGP 9.43 billion in September 2012, or 16.5%
of risk-weighted assets, versus 15.4% at year-end 2011. High quality Tier I
capital grew to EGP 8.59 billion, or 15.0% of risk-weighted assets vs. EGP 7.8
billion, or 14.1%, at year-end 2011. The increase in capital base resulted
largely from a positive mark-to-market revaluation of the available-for-sale
(AFS) sovereign portfolio. Risk-weighted assets increased by 3% to EGP 57.2
billion from EGP 55.4 billion at year-end 2011.

 

 

Note on Taxes

In June 2011, the Government of Egypt raised corporate taxes from 20% to 25%
for all income over EGP 10 million. The tax burden for the first three
quarters of 2012 includes EGP 80 million related to taxes on full-year 2011
income from treasury bills and bonds. Management conservatively accrued this
amount in response to the Tax Authority's circular distributed in March 2012.
Normalising for this amount, consolidated year-to-date net income would be EGP
1.72 billion, up 61% over the year-ago period.

 

 

INSTITUTIONAL BANKING

Key Metrics and Business Updates[4]

·     #1 private-sector bank in Egypt in terms of revenues, net income,
deposits, loans, total assets, book value and market capitalization.

·     End-of-period loans retained were EGP 36.7 billion, down 3% from
year-end 2011 and flat from second-quarter 2012.

·     End-of-period deposits were EGP 19.1 billion, down 14% from year-end
2011 and 12% from second-quarter 2012.

·     Outstanding contingent business continued its growth trend in 2012,
reaching EGP 13.7 billion, or 9% over December 2011 and 3% over June 2012.

 

 

CONSUMER BANKING

Key Metrics and Business Updates^4

·     End-of-period loans retained were EGP 6.6 billion, up 27% over year-end
2011 and 8% over second-quarter 2012.

·     End-of-period deposits were EGP 59.5 billion, up 20% over year-end 2011
and 8% over second-quarter 2012.

·     155 branches and units throughout Egypt, supported by a network of 506
ATMs and 7,864 points of sale.

·     #2 position in debit card usage and #3 in credit cards.

 

 

                                          

                         CONSOLIDATED FINANCIAL HIGHLIGHTS                            

                                          
                                      CONSOLIDATED P&L STATEMENT                      
                    3Q12    2Q12   QoQ      3Q11     YoY      YtD      YtD     YoY    
                                  Change           Change    3Q12     3Q11   Change
                                  (3Q12             (3Q12                     (YtD
                    EGP     EGP    vs.      EGP      vs.      EGP      EGP    3Q12    
                  million million 2Q12)   million   3Q11)  million  million  vs. YtD
                                                                              3Q11)
Net Interest        1,030     932  10.5%       690   49.3%    2,831    1,952   45.0%  
Income
Non-Interest          422     296  42.6%       233   80.8%      999      890   12.3%  
Income
Net Operating       1,452   1,228  18.3%       923   57.3%    3,830    2,842   34.8%  
Income
Operating Expense   (376)   (382)  -1.6%     (367)    2.5%  (1,146)  (1,134)    1.1%  
Provisions          (247)   (143)  73.0%     (111)  122.9%    (407)    (312)   30.2%  
Net Income before     829     703  17.9%       446   86.0%    2,277    1,396   63.2%  
Tax
Income Tax          (224)   (182)  23.1%     (109)  106.0%    (654)    (325)  101.5%  
Deferred Tax            6       3  96.2%      (23)      NM       17      (6)      NM  
Net Income            611     524  16.6%       314   94.4%    1,640    1,065   54.1%  
Minority Interest       1     (0)     NA       (0)      NM        1        0      NM  
Net Income After      610     523  16.7%       314   94.2%    1,639    1,065   53.9%  
Minority
                                                                           

                                                                                      

                                                                           
                                 CONSOLIDATED KEY FINANCIAL INDICATORS
                    3Q12     2Q12      QoQ    3Q11   YoY     YtD     YtD 3Q11    YoY
                                     Change         Change  3Q12                Change
                                                                                 (YtD
                                      (3Q12         (3Q12                        3Q12
                                       vs.           vs.                         vs.
                                      2Q12)         3Q11)                        YtD
                                                                                3Q11)
Profitability
ROAE                26.9%      25.1%    7.3%  13.3% 102.8%   24.1%        15.0%  60.7%
ROAA                 2.7%       2.4%   13.4%   1.6%  69.9%    2.4%         1.8%  34.9%
NIM^1                4.9%       4.6%    5.4%   3.7%  31.1%    4.7%         3.7%  27.4%
Efficiency
Cost-to-Income      25.9%      30.6%  -15.6% 41.41% -37.5%   29.7%        40.6% -26.7%
                   3Q12      2Q12      QoQ    3Q11   YoY    3Q12       3Q11      YoY
                                     Change         Change                      Change
Liquidity
Gross               55.2%      55.8%   -1.2%  57.0%  -3.2%   55.2%        57.0%  -3.2%
Loans-to-Deposits
Asset Quality
NPLs-to-Gross        3.4%       2.8%   22.5%   2.9%  15.9%    3.4%         2.9%  15.9%
Loans
Direct Coverage    116.0%     134.8%  -14.0% 124.0%  -6.5%  116.0%       124.0%  -6.5%
Ratio
Capital Adequacy    16.5%      15.3%    7.5%  15.4%   7.3%   16.5%        15.4%   7.3%
Ratio

 

 

 

                           STANDALONE FINANCIAL HIGHLIGHTS
                                                                                        
                                           
                                         STANDALONE P&L STATEMENT
                    3Q12    2Q12     QoQ       3Q11     YoY       YtD    YtD 3Q11  YoY
                                    Change             Change    3Q12             Change
                                                                                   (YtD
                    EGP      EGP    (3Q12      EGP     (3Q12      EGP      EGP     3Q12
                  million million    vs.     million    vs.    million   million   vs.
                                    2Q12)              3Q11)                       YtD
                                                                                  3Q11)
Net Interest        1,027      929    10.6%       687    49.5%    2,821     1,945  45.0%
Income
Non-Interest          388      274    41.7%       205    89.3%      918       838   9.6%
Income
Net Operating       1,415    1,203    17.7%       892    58.7%    3,739     2,783  34.3%
Income
Operating Expense   (341)    (348)    -2.1%     (285)    19.3%  (1,042)     (969)   7.6%
Provisions          (247)    (143)    73.0%     (111)   122.9%    (407)     (312)  30.2%
Net Income before     827      712    16.2%       496    67.0%    2,290     1,502  52.5%
Tax
Income Tax          (222)    (181)    22.9%     (107)   107.3%    (650)     (320) 102.9%
Deferred Tax            6        3    95.2%      (11)       NM       18         5 262.1%
Net Income            611      534    14.4%       377    61.9%    1,658     1,187  39.7%
                                                                                        
                                  STANDALONE KEY FINANCIAL INDICATORS                   
                     3Q12      2Q12      QoQ      3Q11     YoY     YtD    YtD    YoY    
                                       Change            Change   3Q12   3Q11  Change
                                                          (3Q12                 (YtD
                                      (3Q12 vs.            vs.                  3Q12    
                                        2Q12)             3Q11)                vs. YtD
                                                                                3Q11)
Profitability                                                                           
ROAE                   27.0%    24.7%      9.4%    19.3%   40.3%  23.5%  19.2%   22.2%  
ROAA                    2.7%     2.4%     13.4%     1.9%   41.3%   2.5%   2.0%   21.9%  
NIM^1                   4.8%     4.6%      5.4%     3.7%   31.2%   4.7%   3.7%   27.3%  
Efficiency                                                                              
Cost-to-Income         24.0%    28.5%    -15.7%    33.4%  -28.2%  27.6%  35.3%  -21.9%  
                     3Q12      2Q12         QoQ   3Q11       YoY  3Q12   3Q11      YoY  
                                         Change           Change                Change
Liquidity                                                                               
Gross                  55.2%    55.8%     -1.2%    56.9%   -3.0%  55.2%  56.9%   -2.9%  
Loans-to-Deposits
Asset Quality                                                                           
NPLs-to-Gross           3.4%     2.8%     22.5%     2.9%   15.9%   3.4%   2.9%   15.9%  
Loans
Direct Coverage       116.0%   134.8%    -14.0%   124.0%   -6.5% 116.0% 124.0%   -6.5%  
Ratio
Capital Adequacy       16.5%    15.3%      7.5%    15.4%    7.3%  16.5%  15.4%    7.3%  
Ratio

 

 

 

 

 

 

 

                  CONSOLIDATED AND STANDALONE BALANCE SHEETS
                                    CONSOLIDATED             STANDALONE
Balance Sheet Highlights        3Q12    4Q11            3Q12    4Q11
                                 EGP     EGP   Change    EGP     EGP    Change
                               million million         million million
Cash & Due from Central Bank     3,415   7,492  -54.4%   3,415   7,492  -54.4%
Due from Banks                   8,851   8,528    3.8%   8,754   8,449    3.6%
Treasury Bills & Governmental    9,139   9,261   -1.3%   9,097   9,213   -1.3%
Notes
Trading Financial Assets         1,839     675  172.4%   1,773     561  216.1%
Available-for-Sale Investments  21,058  15,422   36.6%  21,042  15,413   36.5%
Net Loans & Overdrafts          41,129  41,065    0.2%  41,130  41,066    0.2%
Financial Derivatives              145     147   -1.3%     145     147   -1.3%
Held-to-Maturity Investments     4,222      39      NM   4,212      29      NM
Financial Investment in            138     107   29.4%   1,026     996    3.1%
Subsidiaries
Other Assets                     3,568   2,798   27.5%   3,239   2,263   43.1%
Total Assets                    93,505  85,534    9.3%  93,834  85,628    9.6%
Due to Banks                     2,085   3,341  -37.6%   2,085   3,341  -37.6%
Customer Deposits               78,428  71,468    9.7%  78,533  71,574    9.7%
Other Liabilities                2,590   1,939   33.6%   2,357   1,792   31.5%
Total Liabilities               83,103  76,748    8.3%  82,975  76,707    8.2%
Total Shareholders' Equity       8,716   7,125   22.3%   9,200   7,172   28.3%
Net Profit for the Period        1,639   1,615    1.5%   1,659   1,749   -5.2%
Shareholders' Equity & Net      10,354   8,740   18.5%  10,859   8,921   21.7%
Profit
Minority Interest                   48      46    4.2%     -       -  
Total Liabilities &             93,505  85,534    9.3%  93,834  85,628    9.6%
Shareholders' Equity

 

------------------------------------------------------------------------------

[1]  Based on managerial accounts

[2] Based on net loans

[3] Regulatory capital adequacy ratios for 2012 do not include net profits
from the period

[4] Loan and deposit balances based on managerial accounts

                     This information is provided by RNS
           The company news service from the London Stock Exchange
 
END
 
 
QRTBKNDNPBDDDDD -0- Nov/14/2012 07:00 GMT
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement