Commercial International Bank (CIB) today announced its fourth-quarter 2024 consolidated net income of EGP 12.8bn, reflecting a 78% increase from the same period in 2023. Full-year 2024 consolidated net income reached EGP 55.2bn, or EGP 16.4 per share, marking an 86% growth from last year. Concluding a year of significant macroeconomic shifts, CIB achieved another milestone in financial performance, reinforcing its market leadership in profitability and solvency. The bank remained committed to enhancing the overall customer banking experience while maintaining strong financial fundamentals. 2024 was a landmark year for CIB, surpassing EGP 1 trillion in total assets and exceeding EGP 55bn in net income, making it the first private-sector and listed bank in Egypt to record a USD 1bn bottom line, reflecting a 13% growth in USD terms. Growth in Deposits and Margins CIB's exemplary performance was fueled by robust core business growth. The bank's local currency customer deposits grew by 21%, equivalent to EGP 99bn, while foreign currency deposits increased by 16%, or USD 1.1bn. Of total deposit acquisitions, 59% came from Current and Savings Accounts (CASA), sustaining CASA's contribution to total deposits at 56%. This demonstrated the bank's strategic focus on expanding its funding base while preserving margins and spreads. Proactive treasury management and efficient fund allocation contributed to widening margins, with Net Interest Margin (NIM) expanding by 193 basis points (bp) YoY to a record 9.48%. Despite the high-interest-rate environment, CIB saw exceptional lending growth, with local currency loans rising by a record 47%, or EGP 90bn, of which EGP 38bn was added in the fourth quarter alone—marking the highest quarterly growth rate and net sales in the bank's history. This aligns with management's vision of strategically growing the core business in anticipation of an upcoming lending boom. Corporate banking, particularly in the service and industrial sectors, was the primary driver of lending growth. Additionally, CIB exceeded the Central Bank of Egypt's (CBE) minimum SME lending requirement, reaching 26%, reaffirming its commitment to fostering economic growth in this crucial sector. Retail Lending and Credit Card Growth Retail lending also saw strong momentum, particularly in personal loans and credit cards, with over 171,000 new credit cards issued and credit limits increased for 78,000 existing cards. This contributed to a 46% YoY expansion in the credit card portfolio. By year-end, CIB's Gross Loan Portfolio reached EGP 399bn, maintaining its position as the largest private-sector lender in Egypt. When factoring in securitization deals, the portfolio totaled EGP 430bn. Consequently, the Gross Loan-to-Deposit Ratio stood at 41.3%, rising to 44.4% when including EGP 30bn in securitization deals. The local currency loan-to-deposit ratio peaked at 55.4%. CIB's lending activity and a 65% growth in contingent business, amounting to EGP 114bn, contributed to a robust stream of non-interest income. Fee and commission income grew 30% YoY, further strengthening the bank's revenue base. This financial performance bolstered CIB's capital position, supporting business expansion while maintaining a Capital Adequacy Ratio (CAR) of 24.1%, factoring in 2024's proposed profit appropriation. CIB continued to lead in digital banking, with a solid infrastructure supporting significant transaction growth. By year-end, over 1.7 million users were active on CIB's digital banking platforms, marking a 12% increase from 2023. Transaction values across digital channels surged by 60%, reaching EGP 3.3 trillion. In parallel, CIB attracted 275,000 new customers in 2024, bringing its total client base to 2.2 million by year-end. Management remains optimistic about Egypt's economic outlook and CIB's ability to navigate market fluctuations, especially in light of an anticipated monetary easing cycle. The bank will continue leveraging its resilient balance sheet and effective management while staying aligned with global financial trends. Standalone Financial Performance Standalone revenues for the fourth quarter of 2024 reached EGP 26.8bn, reflecting a 59% increase from the previous year. Full-year standalone revenues amounted to EGP 98.6bn, growing by 72% YoY. Net interest income rose by 72% to reach EGP 90.8bn, with a total NIM of 9.48%, marking a 193bp increase YoY. Local currency NIM stood at 13.1%, up 374bp, while foreign currency NIM recorded 3.35%, down 52bp YoY. Standalone non-interest income grew by 67% to EGP 7.79bn, with trade service fees increasing by 57% to EGP 3.58bn and an outstanding balance of EGP 288bn. Operational Efficiency and Cost Management Operating expenses for 2024 reached EGP 13.3bn, up 37% YoY, with a cost-to-income ratio of 13.5%, decreasing by 349bp YoY and remaining well below the 30% threshold. The gross loan portfolio recorded EGP 399bn, reflecting a 50% YoY increase, with real growth of 27% after adjusting for EGP devaluation, which added EGP 47.8bn to the EGP equivalent balance. Growth was entirely driven by local currency loans, which increased by 47% or EGP 89.8bn, sufficiently offsetting net foreign currency loan repayments of 3% or USD 80.8 million. CIB's loan market share reached 4.53% as of September 2024, with the private corporate loan market share standing at 8.41%. Deposits grew by 43% over the year, reaching EGP 968bn, with real growth of 19% after accounting for the EGP devaluation impact, which added EGP 137bn to the EGP equivalent balance. Local currency deposits rose by 21% or EGP 99.1bn, while foreign currency deposits grew by 16% or USD 1.12bn. CIB's deposit market share recorded 6.96% as of September 2024. Asset Quality and Capital Adequacy Non-performing loans represented 3.24% of the gross loan portfolio and were covered 351% by the bank's EGP 45.4bn loan loss provision balance. The full-year 2024 impairment charge for credit losses amounted to EGP 4.47bn, up from EGP 4.29bn in 2023. Total tier capital stood at EGP 162bn, representing 24.1% of risk-weighted assets as of December 2024. Tier I capital reached EGP 135bn, accounting for 83% of total tier capital. CIB maintained a strong liquidity position, well above CBE requirements and Basel III guidelines. The local currency liquidity ratio stood at 45.9%, significantly above the 20% regulatory threshold, while the foreign currency liquidity ratio reached 74.4%, exceeding the required 25%. The NSFR was 239% for local currency and 236% for foreign currency, while the LCR was 1709% for local currency and 403% for foreign currency, all comfortably surpassing the 100% Basel III requirement. CIB's strong financial performance underscores its resilience and strategic positioning as a leader in the Egyptian banking sector, well-prepared for future growth and market opportunities.
