The Commercial International Bank – Egypt (CIB) has reported third-quarter 2024 standalone revenues of EGP 25.2bn, up 98% from third-quarter 2023. The bank's nine-month 2024 standalone revenues were EGP 71.4bn, up 87% from the same period in 2023, on the back of 74% increase in net interest income, coupled with 9x increase in non-interest income. CIB's third-quarter 2024 consolidated net income reached EGP 14.8bn, or EGP 4.34 per share, up 77% from third-quarter 2023. The bank said: "CIB ended the third quarter of 2024 on a positive note, growing its top line by 83% over last year and by a healthy 4% over last quarter, signaling a strong closure for the year. In a quarter that exhibited relative macroeconomic stability, this upheld financial performance comes as a further testament to the true metal of CIB, as it came primarily backed by genuine and organic growth in business acquisitions, while simultaneously not compromising on spreads and margins, which Management deems as the Bank's core sustainable stream of revenue growth." Deposits grew by a decent 5% or EGP 39bn over the quarter, with local currency deposits growing by 4%, adding EGP 18.6bn, and foreign currency deposits growing by 5%, adding $82m. This came while maintaining a healthy share of Current and Saving Accounts (CASA) of 55% to total deposits, which is an ongoing Management strategy that continues to reap its fruits in controlling the Bank's cost of funds and maintaining its margins, which, coupled with the effective recalibration of the Bank's balance sheet in accommodation for the dynamic interest-rate environment, fed into record Net Interest Margin (NIM) of 9.50%, growing by 214 basis points (bps) over last year. Lending growth came even more impressive, with local currency loans growing by a record 12%, adding EGP 25.2bn in the quarter, and cumulatively translating into 37% growth or EGP 65.7bn net loan acquisitions over last year. With that, gross loans for CIB recorded EGP 353bn, marking the largest lender among private-sector Banks, and EGP 381bn when further accounting for Securitization Deals. Thereupon, the Gross-Loan-to-Deposit ratio for CIB reached 39.4%, and with that pertaining to local currency hitting an all-time-high of 51%, after accounting for Securitization Deals amounting to EGP 27.8bn. In view of that strong lending and trade business growth, and going apace with the Bank's customary prudent risk management, Impairment Charge for Credit Losses for third-quarter of 2024 recorded EGP 1.69bn, more than double the provisions accrued for last quarter, which represents the prime reason behind the quarter-on-quarter decrease in bottom line. This remarkable core business growth came to pass while maintaining the Bank's top-notch solvency and asset quality, with Non-Performing Loans (NPLs) representing 4.39% of Gross Loans, down from 5.04% last year, and with Loan Loss Provision Balance recording EGP 44.7bn, covering 12.7% of the Bank's Gross Loan Portfolio. Likewise, Coverage for Unexpected Losses remained affluent, evidenced in CIB recording a market-high Capital Adequacy Ratio (CAR) of 29.1%, which comes accommodating for the Bank's growth, transformation and expansion plans. The entirety of that affected while delivering a Return on Average Equity (ROAE) of 49.4%, further attesting the commitment of the Bank's Management to safeguard the interests of both current and future shareholders, which comes also evidenced in CIB recording impressive year-on-year bottom line growth of 21% in US Dollar terms. Moving forward, the bank's management remains positive about the Bank's growth prospects, with special regard to plans to expand the business pie and invest in more productive areas, and with due focus attended to reengineering the Bank's processes and to heading further towards digitization, further safeguarding its market-leading position, while maintaining its sound financial performance and healthy solvency along." Nine-month 2024 standalone net interest income recorded EGP 65.5bn, increasing by 74% YoY, generated at 9.50% Total NIM1 , which increased by 214 basis points (bp) YoY, with Local Currency NIM1 recording 12.9%, coming 363bp higher YoY, while Foreign Currency NIM1 recorded 3.56%, coming 23bp lower YoY. Nine-month 2024 standalone non-interest income recorded EGP 5.88bn, coming 9x higher YoY. Trade service fees recorded EGP 2.60bn, growing by 47% YoY. Nine-month 2024 standalone operating expense recorded EGP 8.80bn, up 40% YoY. Cost-to-income4 reported 12.2%, coming 328bp lower YoY, and remaining comfortably below the desirable level of 30%. Gross loan portfolio recorded EGP 353bn, growing by 33% over Nine-month 2024, with real growth of 15% net of the EGP devaluation impact, which added EGP 41.7bn to the EGP equivalent balance. Growth was driven wholly by local currency loans, increasing by 27% or EGP 51.6bn, sufficiently counterbalancing net foreign currency loan repayments of 5% or $127m. CIB's loan market share reached 4.62% as of May 2024. Deposits recorded EGP 897bn, growing by 33% over nine-month 2024, with real growth of 13% net of the EGP devaluation impact, which added EGP 119bn to the EGP equivalent balance. Growth was driven by local currency deposits, increasing by 15% or EGP 67.9bn, together with foreign currency deposits adding 10% or $707m. CIB's deposit market share recorded 6.94% as of May 2024. Standalone non-performing loans represented 4.39% of the gross loan portfolio, and were covered 289% by the Bank's EGP 44.7bn loan loss provision balance. Nine-month 2024 impairment charge for credit losses recorded EGP 3.74bn compared to EGP 1.25bn in the first nine months 2023. Total tier capital recorded EGP 161bn, or 29.1% of risk-weighted assets as of September 2024. Tier I capital reached EGP 136bn, or 84% of total tier capital. CIB maintained its comfortable liquidity position above CBE requirements and Basel III guidelines in both local currency and foreign currency. CBE liquidity ratios remained well above the regulator's requirements, with local currency liquidity ratio recording 43.2% by end of September 2024, compared to the regulator's threshold of 20%, and foreign currency liquidity ratio reaching 73.5%, above the threshold of 25%. NSFR was 270% for local currency and 211% for foreign currency, and LCR was 1645% for local currency and 401% for foreign currency, comfortably above the 100% Basel III requirement.
