Commercial International Bank - Egypt (cib) S.a.e. · EGX:COMI
Commercial International Bank - Egypt (cib) S.a.e — Commercial International Bank - Egypt (CIB) S.A.E. — Q3 2022 Earnings Presentation
46 slides from Commercial International Bank - Egypt (cib) S.a.e's earnings presentation, November 2022
Slide 1: Investor Relations Presentation Q3 2022
Investor Relations Presentation Q3 2022
Slide 2: Table of Contents
TABLE OF CONTENTS Macroeconomic Overview … 04 About CIB …. 11 Strategy… 19 Business … 23 CIB Stock … 26 ESG … 29 Financial Performance … 38
Slide 3: Disclaimer
DISCLAIMER By attending the meeting where this presentation deck is being presented and/or distributed or by reading through its slides, you agree with the following limitations: • The information in this presentation may contain future projections and forward‐looking statements that reflect the ban
Slide 4: Macroeconomic Overview
VAIL MACROECONOMIC OVERVIEW
Slide 5: Egypt - Fact Sheet
EGYPT - FACT SHEET Country Profile Name Arab Republic of Egypt Capital Cairo Currency Egyptian Pound (EGP) Total area c.1,002,000 sqm.km Inhibited area 7.88% of total area Governorates 29 Demographics Population 104.1 mn* Median age 24.1** Participation rate (Labor force / population) 42.6*** Unempl
Slide 6: Macro Environment
MACRO ENVIRONMENT Real GDP Growth (%) Inflation (%) Reform-led boom 16.7% Global financial 14.6% 15.6% 13.3% 7.1% 7.2% crisis 11.9% Post-uprising 100% 10.1% turmoil Devaluation 5.3% 5.1% 5.1% 4.7% COVID-19 7.2% 6.3% 3.6% 4.9% 5.2% 5.8% 6.0% 3.4% 2.7% 2.5% 3.9% 4.0% 3.8% 3.9% 4.6% 4.5% 14.6% 3.6% 3.7
Slide 7: Sustainable FCY Resources
SUSTAINABLE FCY RESOURCES Foreign Inflows (USD mn) Petroleum and Suez Canal Proceeds (USD mn) 31,425 31,505 26,393 27,758 25,151 6,780 5,362 5,707 5,731 5,806 5,911 5,513 21,816 5,122 4,945 12,571 8 9,804 9,859 10,936 9,798 7,933 7,720 8,236 7,453 4,862 5,214 (421) (7) 4,380 (3,474) (3,619) (3,717)
Slide 8: Egypt's Banking Sector
EGYPT’S BANKING SECTOR Total loans (EGP bn) Total deposits (EGP bn) LDR (%) 7,372 7,491 49% 50% 3,490 3,522 47% 46% 46% 47% 47% 46% 44% 45% 41% 41% 2,856 5,751 4,701 2,180 4,007 1,840 3,570 1,619 3,043 1,418 937 2,123 1,740 503 545 584 714 1,027 1,191 1,434 11/12 12/13 13/14 14/15 15/16 16/17 17/18
Slide 9: Egypt's Banking Sector (Cont'd)
EGYPT’S BANKING SECTOR (Cont’d) Total # of branches Total # of ATMs Total # of POS 4,598 4,577 4,451 4,155 4,009 3,882 3,766 3,710 3,651 3,610 3,573 188,429 173,401 21,459 16,962 14,152 98,049 12,656 11,754 10,701 79,952 72,503 68,630 9,031 64,349 55,876 7,855 51,384 6,870 45,716 6,283 40,046 5,489
Slide 10: Why Egypt?
WHY EGYPT? Located in the northeastern corner of Africa, Egypt’s strategic location The introduction of “Meeza” prepaid card for governmental has always made it a hub for trade routes between Africa, Europe, and and local payments Asia, given its proximity to many European markets, being a gateway t
Slide 11: About CIB
VAIL ABOUT CIB
Slide 12: CIB's Shareholders
CIB’s SHAREHOLDERS 1975 1981 2006 2009 2014 2022 NBE (51%) and Commercial Consortium led Fairfax Financial ACTIS Alpha Oryx Ltd** Chase Manhattan International Bank by Ripplewood Holdings* Bank (49%) Actis sold 2.6% in open Acquired 18.6% in April RW led consortium market in March Following Chase Ac
Slide 13: CIB Key Milestones
CIB KEY MILESTONES • Concludes 1st & • 1st Egyptian • Selected by the • 1st bank to largest Euro bank to register IATA to act as the connect with the syndicated loan on NYSE; ADR BSP agent in international (USD 200mn) Level 1 Egypt, and SWIFT network remains the sole • 1st private sector • 1st bank
Slide 14: CIB Key Milestones (Cont'd)
CIB KEY MILESTONES (Cont’d) • For the 1st time in the Middle East and Africa, • 1st Arab and African • 1st Corporate Green • 1st Egyptian bank to • 1st bank in Egypt to CIB was awarded company listed on Bond Issuance in establish a Sustainable recognize conduct risk “World’s Best Bank in the 2019 Bl
Slide 15: CIB Subsidiaries
CIB SUBSIDIARIES Ownership: 99.9% Ownership: 99.8% Ownership: 51% Ownership: 49.95% Established in 2018, Commercial International Finance Company Mayfair CIB Bank Limited is a Kenyan Damietta Shipping and Marine CVentures is Egypt’s first (CIFC) was established in June 2022 offering banking institut
Slide 16: CIB Associates
CIB ASSOCIATES Ownership: 39.34% Ownership: 37% Ownership: 30% Ownership: 14.99% Established in October TCA Properties is an SPV Profile: Offers a full suite of Profile: an “Agent Bank” financial 1996 as a joint stock under Talaat Moustafa Group security services; services; company, ACE has a long e
Slide 17: Our Presence in Egypt
OUR PRESENCE IN EGYPT Distribution Network Total Branches and Units: 213 Greater Cairo:126 Alexandria Region: 32 Suez Canal Region: 22 Delta Region: 18 Upper Egypt Region: 15
Slide 18: Awards & Recognition
AWARDS & RECOGNITION Best Best Bank for Best Bank for Best Trade Transaction Payment Cash Management- Best Treasury & Cash Finance Provider Best Bank Banking - The Services -The The Digital Banker Management in Egypt – in Egypt – Providers in Egypt - Global Finance Digital Banker Digital Banker Glob
Slide 19: Strategy
STRATEGY
Slide 20: Our Strategy
OUR STRATEGY TODAY TOMORROW Quality loan growth, with focus on increasing product penetration and SoW Positioned as trade finance hub for Egypt & Africa Deposit growth, specially from households Focus on SMEs & underpenetrated retail banking segment with Transactional banking services more eff
Slide 21: CIB Digital Transformation
CIB DIGITAL TRANSFORMATION (as of September 2022) 69.2m EGP 842.2bn EGP 4.1bn No. of transactions Value of transactions Cost Synergy 🔺 9% YoY 🔺 44% YoY 🔺 28% YoY Digital Banking Channels: Global Transaction Banking Products: Growth Vs YtD Growth Vs YtD Growth Vs YtD Growth Vs YtD Channel…
Slide 22: CIB Presence in Africa
CIB PRESENCE IN AFRICA CIB aims to position itself as a trade finance hub for Egypt and East Africa, focusing on both corporate and SMEs, especially after the establishment of our representative office in Ethiopia and the acquisition of a 51% stake in a local Kenyan bank, which was renamed Mayfair C
Slide 23: Business
5 BUSINESS VAIL
Slide 24: Lines of Business
LINES OF BUSINESS Institutional Banking Retail Banking • Market leader • The take-off for a world class retail banking Profile • Prime contributor to profitability franchise • Large and medium-size corporates (MNCs, institutions • Consumer Banking (with special focus on Wealth and banks) and Plus) F
Slide 25: Lines of Business - Business Banking
LINES OF BUSINESS - BUSINESS BANKING Covers all SMEs sectors across Egypt through over 85 highly trained Serves SMEs through a comprehensive range of financial solutions Relationship Managers serving medium segment & 140 Growth Bankers serving small segment 2010 2011 2013 - 2018 2019 2020 2021 2022
Slide 26: CIB Stock
CIB STOCK
Slide 27: Our Stock in a Nutshell
OUR STOCK IN A NUTSHELL STOCK EXCHANGES TICKER SHARE INFORMATION 52 WEEKS PERFORMANCE Listed Egyptian Exchange (EGX) COMI High EGP 35.7 Shares outstanding 2,982,513,360 Listed London Stock Exchange (LSE) CBKD Low EGP 23 Par value EGP 10.00 GDR convertibility 1:1 Traded OTCQX Int’l Premier (Level 1 A
Slide 28: Credit Rating
CREDIT RATING Credit Rating Current Rating Previous Rating LT FCY ST FCY Outlook LT FCY ST FCY Outlook * B+ B Stable B+ B Stable ** B B Stable B+ B Stable *** B2 NP Negative B2 NP Negative **** B+ B Stable B+ B Stable * According to the latest report as of July 2022 ** According to the latest repo
Slide 29: ESG
ESG
Slide 30: ESG at CIB
ESG AT CIB 2010 2013 2014 2015 2016 2017 2018 2019 2020 2021 CIB Foundation *Carbon Footprint Sustainability Bank wide Energy First Sustainability FTSE4Good Report Founding Signatory Bloomberg Gender Supporter of the First Corporate Department Efficiency Project* Report Constituent & of the Principl
Slide 31: ESG at CIB (Cont'd)
ESG AT CIB (Cont’d) Environment Society Governance 30% of total workforce are women A strong ESG governance structure: Sustainability First Corporate Green Bond in Egypt Board Committee, Sustainable Finance Steering Committee, Sustainable Finance Department and First Bank in the MENA to receive the
Slide 32: Corporate Governance
CORPORATE GOVERNANCE Commitment to Sound Corporate Governance Practices Continues to Define CIB This commitment is supported by several mandates: The Board carries on with its mandate to continuously improve the overall corporate governance framework by regularly reviewing and supervising the Bank’s
Slide 33: Board of Directors
BOARD OF DIRECTORS • The Board enjoys significant diversity, leadership, skills, operating experience and professionalism in a broad set of industries • Complying with best international practices, an independent Lead Director is appointed • The Board and its committees are governed by well-defined
Slide 34: Board of Directors
BOARD OF DIRECTORS Audit Committee Corporate Governance & Nomination Committee 9 committees assist in fulfilling the Board’s responsibilities; Non- performing, • The Board enjoys significant Written-off and involuntary Risk diversity, leadership, skills, investment Committee operating experience and
Slide 35: Business Continuity & Resilience Management
BUSINESS CONTINUITY & RESILIENCE MANAGMENT Initiatives Pioneer in implementing international standards and best practices; established in 2010; ahead of all major players in the market CIB continues to invest in further improving its business continuity and recovery capabilities to ensure it provide
Slide 36: Response to COVID-19
RESPONSE TO COVID-19 Work from Home Arrangements • Laptops, Secure Remote Access, and Secured email access on mobile phones have been arranged for different bank departments Vaccination • CIB availed local medical center for employees & their families and conducted 27 vaccination rounds in CIB premi
Slide 37: Cyber & Information Security
CYBER & INFORMATION SECURITY Initiatives Strong Security Governance & policies aligned with International CIB continues to invest in further Standards and Best Practices improving its Cyber & Information Security capabilities to continuously Certified Payment Cards Industry – Data Security Standards
Slide 38: Financial Performance
5 FINANCIAL PERFORMANCE VAIL
Slide 39: Performance Snapshot: 3Q22
PERFORMANCE SNAPSHOT: 3Q22 Key Indicators 3Q22 Comparison Commentary REVENUES EGP 8.45bn EGP 7.14bn; 3Q21 18% YoY Profitability NPAT EGP 4.42bn EGP 3.81bn; 3Q21 16%YoY ROAE 27.1% 23.7%; 3Q21 15% YoY ROAA 3.16% 3.17%; 3Q21 0% YoY Efficiency NIM** 6.24% 5.7%; 3Q21 9% YoY COST/INCOME 21.4% 21.4%; 3Q21
Slide 40: Position Among Peers
POSITION AMONG PEERS (as of June 2022) Total Assets (EGP bn) Net Income (EGP mn) Gross Loans/Deposits EGP Billions EGP Millions CAE 1,019 HSBC 35.3% CAE 62 ALEX 1,234 CIB 44.8% ALEX 121 AAIB 1,702 ALEX 57.7% HSBC 147 HSBC 1,843 AAIB 59.5% AAIB 263 QNBA QNBA 4,413 QNBA 61.5% 400 CIB 522 CIB 7,774 CAE
Slide 41: Performance Snapshot: Funding Overview
PERFORMANCE SNAPSHOPT: FUNDING OVERVIEW Funding Structure Due to Customers (94.63%) Other Liabilities (1.9%) Other Loans (1.19%) Due to Banks (0.33%) Customer Deposit Mix Demand (39.42%) CDs (22.42%) TDs (20.27%) Savings (17.89%) CIB’s funding structure has no wholesale funds
Slide 42: 10-Year Performance Summary
10 – YEAR PERFORMANCE SUMMARY 3.26% 500 53% 60% 600,000 2.93% 3.03% 3.50% 2.94% 2.95% 2.71% 2.69% 2.72% 3.00% 43% 50% 500,000 2.51% 2.53% 400 40% 39% 37% 37% 35% 37% 35% 36% 498,236 267,544 2.50% 40% 400,000 300 407 427,842 179,500 2.00% 304 251 30% 341 386,742 285 232 143,813 146 300,000 342,461 11
Slide 43: Market Share
MARKET SHARE 8.6% 8.4%8.5% 8.3% 8.4% 8.4% 8.4% 8.4% 8.1% 8.1% 8.1% 8.0% 7.8% 7.7% 7.63% 7.59% 7.64% 8.2% 8.2% 7.5% 7.5% 7.47% 7.46% 7.51% 7.56% 7.41% 7.41% 7.44% 7.3% 7.29% 7.9% 7.9% 8.2% 8.0% 7.9% 7.19% 7.22% 7.00% 6.92% 7.6% 6.85% 7.4% 7.3% 6.76% 6.78% 6.75% 6.69% 6.67% 6.74% 6.69% 6.76% 6.72% 7.4
Slide 44: Why CIB?
WHY CIB? Profitability A diverse and NPAT EGP 12.2bn Revenues EGP 23.1bn Highly skilled and Prominent Board of experienced Directors inclusive Management Team workforce Asset Quality Direct Coverage Ratio NPL/Gross loans 4.59%* 216%* KPIs Cost/income ROAA 2.98% ROAE 24.4% 20.9% Largest in…** Strong
Slide 45: Thank You
THANK YOU • For more information, please visit our website; www.cibeg.com • To read about the projects that the CIB Foundation has helped support, and to know ways in which you can donate, please visit www.cibfoundationegypt.org Investor Relations contacts: Headquarters: Customer Service Hotline: Ni
Slide 46: Thank You
Thank You
Commercial International Bank - Egypt (CIB) S.A.E. — Q3 2022 Earnings Presentation on 6ix