Commercial International Bank (CIB) reported second-quarter (Q2) 2025 consolidated net income of EGP 16.7bn, or EGP 4.88 per share, marking a 7% increase from Q2 2024. The bank's management commented: "Building on a strong start to the year, CIB delivered another solid set of financial results in Q2 2025, closing the first half with top and bottom lines of EGP 54.9bn and EGP 33.3bn, representing growth of 18% and 21%, respectively, over the previous year. This was achieved despite the easing monetary cycle and supported by the stability in the foreign exchange market, reflecting the true resilience of CIB, underpinned by the strength of our core business performance. This is further evident in our year-on-year growth in USD terms, with revenues up 14% and net income up 17%." Each of the Bank's business lines performed robustly, enabling CIB to support corporate and individual clients as they navigated market dynamics. Despite relative normalization in local currency deposit market rates, total deposits continued to grow, increasing by a healthy 21% year-on-year. Both retail and corporate deposits contributed, rising by 22% and 21%, respectively. This growth was driven by continued momentum across all business segments and was accompanied by an increase in the share of current and savings accounts (CASA) to total deposits—from 54% last year to 59% by end of first-half 2025—helping manage cost of funds and maintain margins. Meanwhile, gross loans expanded impressively by 50% year-on-year, adding EGP 165bn, driven mainly by corporate loans, which grew by 57% (EGP 149bn). Over 40% of this corporate lending was directed towards capital expenditure (CAPEX). At the same time, lending to small and medium-sized enterprises (SMEs) continued to grow, reaching 29% of the loan portfolio, exceeding the Central Bank of Egypt's minimum requirement. Retail loans also showed strong growth of 23%, adding EGP 16bn, primarily in personal loans, credit cards, and mortgage loans. As a result, CIB maintained its position as the largest private-sector lender in the Egyptian banking sector, with a gross loan portfolio of EGP 496bn in of the first half of 2025—or EGP 523bn when including securitization deals—capturing a private-sector corporate loan market share of 9.23%. This robust balance sheet momentum supported strong revenue growth of 18% year-on-year, which would have been 23% when excluding the exceptional foreign exchange income generated in the first half of 2024. Growth was driven by a 24% increase in net interest income (NII) and a normalized 21% rise in non-interest income. The latter was largely underpinned by genuine growth in sustainable streams: net fee and commission income increased by 22%, reflecting active lending during the year, with loan fees recording an impressive 42% rise, and card fees nearly doubling, driven by a 38% increase in the credit card portfolio from the end of the first half of 2024. All of this was enabled by CIB's solid digital infrastructure, which reinforced its leadership in digital banking and alternative channels. The Bank saw a significant increase in transaction volumes and values, reaching 1.9 million users on its online banking platforms in of the first half of 2025, a 17% rise from the same period in 2024, while transaction values grew by 58% to EGP 2.3trn across all digital channels. Total provisions accrued this quarter were similar to the previous quarter, amounting to EGP 695m for the first half of 2025—down from EGP 2.24bn in the first half of 2024. This decrease was largely due to the adoption of the recalibrated Expected Credit Loss (ECL) calculation, which was successfully validated by a third party and communicated to the Central Bank of Egypt, with final approval pending. Despite slower provision accumulation, the Bank preserved its highest-in-market coverage for expected losses: loan loss provisions covered 8.9% of the gross loan portfolio, 12.6% of the unsecured portion, and 338% of non-performing loans (NPLs). Notably, even when excluding provisions, the Bank's bottom line still recorded a healthy 14% year-on-year growth in the first half of 2025. This strong profitability accommodated healthy capital utilization, as reflected in risk-weighted asset (RWA) growth, with CIB ending the period with a Capital Adequacy Ratio (CAR) of 28.4% and a Common Equity Tier I (CET1) capital ratio of 23.6%. This solid capital base supported one of the highest returns to shareholders, with Return on Average Equity (RoAE) reaching 40.5% for the first half of 2025. Looking ahead, management remains optimistic about Egypt's economic recovery while preparing for various scenarios, supported by CIB's resilient balance sheet, prudent risk management, and operational readiness. Revenues Second-quarter 2025 standalone revenues reached EGP 27.8bn, up 13% from the second quarter of 2024. First-half 2025 standalone revenues were EGP 54.6bn, an 18% increase over the first half of 2024, driven by a 23% rise in net interest income, partially offset by a 30% decrease in non-interest income. Net Interest Income First-half 2025 standalone net interest income totaled EGP 51.2bn, up 23% year-on-year, achieved with a total Net Interest Margin (NIM) of 8.94%. Local currency NIM improved by 51 basis points to 13.1%, while foreign currency NIM declined by 114 basis points to 2.71%. Non-Interest Income Standalone non-interest income for the first half of 2025 stood at EGP 3.47bn, down 30% year-on-year. Trade service fees grew 5% to EGP 1.72bn, with an outstanding balance of EGP 302bn. Operating Expense Operating expenses reached EGP 7.54bn in the first half of 2025, a 35% increase year-on-year. The cost-to-income ratio rose by 180 basis points to 13.8% but remained comfortably below the Bank's target ceiling of 30%. Loans Gross loans reached EGP 496bn, growing 24% or EGP 96.3bn year-to-date (YTD). Adjusting for the appreciation of the Egyptian pound, real growth was 25% or EGP 99.2bn. Local currency loans grew by 29% (EGP 80.5bn), while foreign currency loans rose by 16% ($377m). As of February 2025, CIB's total loan market share stood at 4.72%, and private-sector corporate loan market share at 9.23%. Deposits Total deposits rose to EGP 1.04 trillion, a 7% or EGP 72.3bn increase YTD, with real growth of 9% (EGP 82.2bn) net of currency appreciation. Local currency deposits increased by 8% (EGP 43.1bn), and foreign currency deposits grew by 10% ($790m). As of February 2025, CIB's deposit market share was 6.96%. Asset Quality Standalone non-performing loans accounted for 2.63% of the gross loan portfolio, covered 338% by the EGP 44.1bn loan loss provision balance. Impairment for credit losses saw a net release of EGP 346m in the first half of 2025, compared to a charge of EGP 2.06bn in the same period of 2024. Capital and Liquidity Total Tier Capital reached EGP 209bn, equivalent to 28.4% of risk-weighted assets by June 2025. Tier I capital stood at EGP 174bn, representing 83% of total Tier Capital. Liquidity remained well above regulatory requirements: the local currency liquidity ratio was 55.0% (regulator threshold: 20%) and foreign currency liquidity ratio was 74.0% (threshold: 25%). Net Stable Funding Ratio (NSFR) was 207% for local currency and 216% for foreign currency, while the Liquidity Coverage Ratio (LCR) was 530% for local currency and 407% for foreign currency—significantly above the Basel III requirement of 100%.
