Commercial International Bank - Egypt (cib) S.a.e. · EGX:COMI
Commercial International Bank - Egypt (cib) S.a.e — Commercial International Bank - Egypt (CIB) — Q1 2018 Earnings Presentation
36 slides from Commercial International Bank - Egypt (cib) S.a.e's earnings presentation, May 2018
Slide 1: Investor Relations Presentation Q1'2018
INVESTOR RELATIONS PRESENTATION Q1’2018
Slide 2: Table of Contents
TABLE OF CONTENTS Overview …… 3 About CIB …… 12 Financial Review …… 27 Conclusion …… 37
Slide 3: Disclaimer
Overview | About CIB | Financial Review | Conclusion Disclaimer By attending the meeting where this presentation is made or distributed, or by reading the presentation slides, you agree with the following limitations: • The information in this presentation may contain future projections and forward‐
Slide 4: Egypt's Fact Sheet
Overview | About CIB | Financial Review | Conclusion Egypt’s Fact Sheet Country Profile Diversified Economy¹ 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 27 Favorable Demographics Population 96.8
Slide 5: Macro-Environment - Real Sector
Overview | About CIB | Financial Review | Conclusion Macro-Environment- Real Sector Real GDP Growth* (%) Inflation (%) Core Inflation (%) Headline Inflation (%) 8.0% 80% 7.1% 7.2% 35.3%34.9% 70% 33.1%32.3%32.1% 33.3% 7.0% 30.9% 30.6%32.0% 30.5% 6.0% 60% 25.5% 5.1% 5.2% 4.7% 50% 19.9% 5.0% 4.0% 3.4%
Slide 6: External Sector (BOP)
Overview | About CIB | Financial Review | Conclusion External Sector (BOP) Tourism& Remittance proceeds Foreign Direct Investment (FDI)* 23,894 30,000 19,330 16,000 18,668 18,519 17,453 17,077 25,000 13,237 10,787 20,000 12,000 11,053 9,752 7,370 15,000 5,073 4,380 8,113 3,768 7,916 10,000 6,933 8,0
Slide 7: Fiscal Sector & Debt
Overview | About CIB | Financial Review | Conclusion Fiscal Sector & Debt Fiscal Budget Gross Domestic Debt/GDP ( % ) - Fiscal Year 100.00% 96.70% 1,400,000 14.00% 95.00% 91.10% 13.00% 90.00% 86.60% 12.50% 85.30% 1,200,000 12.20% 12.00% 82.10% 85.00% 11.50% 80.00% 75.00% 1,000,000 10.00% 491,488 70.
Slide 8: Economic Outlook & Credit Rating
Overview | About CIB | Financial Review | Conclusion Economic outlook & Credit Rating Projected Economic Indicators Q1/18 Q2/18 Q3/18 Q4/18 2020 GDP Growth Rate 3.7 4.1 4.7 4.2 4.9 percent Unemployment Rate 11.6 11.8 11 11.6 11 percent Inflation Rate 17 16 15 14 9.5 percent Government Debt to GDP 89
Slide 9: Egypt's Banking Sector
Overview | About CIB | Financial Review | Conclusion Egypt’s Banking Sector Total loans (EGP bn) Total deposits (EGP bn) LDR (%) 1,415 1,453 3,329 3,042 49% 49% 46% 44% 46% 44% 41% 41% 937 2,123 1,740 714 584 1,434 503 545 1,191 471 965 1,027 10/11 11/12 12/13 13/14 14/15 15/16 16/17 Dec-17 10/11 11
Slide 10: Egypt's Banking Sector (Cont'd)
Overview | About CIB | Financial Review | Conclusion Egypt’s Banking Sector (Cont’d) Total # of branches Total # of ATMs Total # of POS Dec-17 4,093 11,002 Dec-17 66,608 Dec-17 16/17 4,009 10,701 16/17 68,630 16/17 15/16 3,882 9,031 15/16 64,349 15/16 14/15 3,766 7,855 14/15 55,876 14/15 13/14 3,710
Slide 11: Why Egypt?
Overview | About CIB | Financial Review | Conclusion Why Egypt? Economic Environment Attracts Investments Among the most diverse in the MENA region Approved IMF Loan signaling a tremendous confidence boost in Egypt's ability to release its New Suez Canal economic potential in a sustainable way New C
Slide 12: CIB at a Glance
Overview | About CIB | Financial Review | Conclusion CIB at a Glance RW led Strategic subsidiaries consortium divested Actis Sold 2.6% Chase National IPO raising US$ 115mn; 150% established to complement our half its holdings in open market Bank established oversubscribed core business in to Actis i
Slide 13: CIB's Key Milestones
Overview | About CIB | Financial Review | Conclusion CIB’s Key Milestones First joint venture Following Chase Egypt’s largest First Egyptian First private • First Egyptian • First bank in bank in Egypt; Manhattan local bank IPO, bank to have a sector bank with bank to register Egypt to Chase Nationa
Slide 14: CIB's Key Milestones (Cont'd)
Overview | About CIB | Financial Review | Conclusion CIB’s Key Milestones (Cont’d) • Only Egyptian • First Egyptian • First Egyptian bank to sign • Launched its mobile banking bank recognized bank to establish a agreement with MCDR to application, with various banking as ‘Best Bank in Sustainable is
Slide 15: CIB's Associates
Overview | About CIB | Financial Review | Conclusion CIB’s Associates Ownership 32.5% Ownership 23.5% Profile: Offers a full suite of security services; Profile: an “Agent Bank” financial services; Registration Loans and Retail Cash Private Premises Cash-in- and Credit Cards Deposit and security pro
Slide 16: Lines of Business
Overview | About CIB | Financial Review | Conclusion Lines of Business Profile Institutional Banking Consumer Banking • Market leader • The take-off for a world class consumer Profile • Prime contributor to profitability banking franchise • Large and medium-size corporates (MNCs, institutions and ba
Slide 17: Business Banking
Overview | About CIB | Financial Review | Conclusion Business Banking Serves SMEs and non-borrowing Corporates through a comprehensive Covers all sectors and industries through over 100 highly trained range of financial solutions. Relationship Managers across Egypt. 2010 2011 2012 2013 2014 2015 201
Slide 18: Our Stock in a Nutshell
Overview | About CIB | Financial Review | Conclusion Our Stock in a Nutshell STOCK EXCHANGES TICKER Share Information 52 Weeks Performance Listed Egyptian Stock Exchange (EGX) COMI Shares outstanding 1,161,801,100 High EGP 96.50 Listed London Stock Exchange (LSE) CBKD Par value EGP 10.00 Low EGP 72.
Slide 19: Shareholding Structure
Overview | About CIB | Financial Review | Conclusion Shareholding Structure Free Float by Region North America (58.21%) Africa (13.16%) GCC (11.12%) UK & Ireland (7.09%) Continental Europe (6.13%) Rest of the World (4.29%) Free Float by Category Institutions (92.41%) Free Float (93.4%) Fairfax (6.6%
Slide 20: Our Presence in Egypt
Overview | About CIB | Financial Review | Conclusion Our Presence in Egypt CIB’s footprint Digital Banking Initiatives Distribution Network Digital Banking Reached 31 K Careem captains who are enrolled to Smart wallet platform. – Acquired New to bank clients over Smart wallet through Fawry Plus in w
Slide 21: Corporate Governance
Overview | About CIB | Financial Review | Conclusion Corporate Governance Commitment to Sound Corporate Governance Practices Continues to Define CIB This commitment is supported by several mandates: The Board’s main responsibilities include: Internal policies, risk controls, and manuals have been pu
Slide 22: Board of Directors
Overview | About CIB | Financial Review | Conclusion Board of Directors CIB’s Board consists of 9 members; The Board and its committees are governed by well-defined charters that sets out its responsibilities and composition requirements 7 are non-executive and 5 are independent* The Board is suppor
Slide 23: Our Strategy
Overview | About CIB | Financial Review | Conclusion Our Strategy Today Tomorrow Financial Quality loan growth, • Positioned as trade finance hub for Egypt & Africa Deposit growth, with focus on Transactional banking • Focus on SMEs & underpenetrated retail banking segment Performance increasing pro
Slide 24: Business Continuity Management & Information Security
Overview | About CIB | Financial Review | Conclusion Business Continuity Management & Information Security 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 bu
Slide 25: Awards and Recognition
Overview | About CIB | Financial Review | Conclusion Awards and Recognition 2018 Best Treasury & Best Foreign Best Trade Finance Cash Management Exchange Provider in Best Bank in Egypt - Provider in Egypt - by Providers in Egypt - Egypt - By Global by Global Finance Global Finance by Global Finan
Slide 26: Performance Snapshot: 31 March 2018
Overview | About CIB | Financial Review | Conclusion Performance Snapshot: 31 March 2018 Key Indicators Q1’ 2018 Comparison Commentary REVENUES EGP 4,150 mn EGP 3,322 mn; Q1’17 24.94% YoY Profitability NPAT EGP 2,021 mn EGP 1,733 mn; Q1’17 16.6% YoY ROAE 28.7% 31.9%; Q1’17 -10.0% YoY ROAA 2.67% 2.57
Slide 27: Performance Snapshot: Profitability
Overview | About CIB | Financial Review | Conclusion Performance Snapshot: Profitability Net Profit After Tax Fees & Commission Break-down Interest Income Break-down 2,500 1,200 786 12,000 7,936 17% 2,021 1,000 656 10,000 2,000 34% 1,733 6,377 17% 8,000 800 1% 1,500 1,292 1,108 455 463 6,000 4,179 1
Slide 28: Performance Snapshot: Balance Sheet
Overview | About CIB | Financial Review | Conclusion Performance Snapshot: Balance sheet Split of Assets by type Loan portfolio by industry Q1’2018 Q1'18 8% 14% 15% 2% 31% 27% 3% 309,750 2% Q4'17 5% 15% 18% 2% 30% 26% 3% 294,782 27% FI Manufacturing Q3'17 8% 14% 19% 2% 31% 23% 3% 282,886 43% Rel est
Slide 29: Performance Snapshot: Asset Quality
Overview | About CIB | Financial Review | Conclusion Performance Snapshot: Asset Quality Q1’17 Q2’17 Q3’17 Q4’ 17 Q1’18 *NPL Ratio 7.02% 6.81% 6.94% 6.95% 5.11% *Coverage 147% 148% 155% 154% 202% NPLs by segment (EGP Mn) Q1'18 84% 16% 582 Q4 '17 79% 21% 2,373 Corporate Q3'17 92% 8% 2,017 Retail Q2'1
Slide 30: Performance Snapshot: Funding Overview
Overview | About CIB | Financial Review | Conclusion Performance Snapshot :Funding Overview Funding Structure Due to Customers (90.83%) Due to Banks (4.03%) Other Liabilities (3.83%) Other Term Loans (1.31%) Customer Deposit Mix Demand (29.07%) CDs (27.94%) Savings (22.61%) TDs (18.23%) Other (2.15%
Slide 31: Performance Snapshot: Funding & Capital
Overview | About CIB | Financial Review | Conclusion Performance Snapshot: Funding & Capital Loans to Deposit Ratio Capitalization 30 25.00% 28.4 27.8 26.6 45.00% 41.50% 25 24.1 42.62% 42.19% 20.00% 40.00% 41.08% 40.84% 22 35.00% 30.00% 20 18.03% 17.87% 25.00% 16.95% 15.00% 20.00% 15.61% 14.49% 15.0
Slide 32: 10-Year Performance Summary
Overview | About CIB | Financial Review | Conclusion 10-Year Performance Summary 2.89% 2.93% 2.94% 2.95% 57.0% 2.62% 2.92% 2.51% 2.71% 2.69% 55.5% 43.2% 53.8% 53.2% 50.0% 2.03% 35.3% 36.9% 40.0% 294,782 36.6% 267,544 75,425 57,462 64,255 88.4 85.4 179,500 63.4 56.8 143,813 48.8 41.9 41.8 113,752 48.
Slide 33: Position Among Peers
Overview | About CIB | Financial Review | Conclusion Position Among Peers Total Assets (EGP Bn) Net Income (EGP Mn) Gross Loans/Deposits CAE 46 CAE 1,958 CIB 40.8% Alex 78 Alex 2,783 HSBC 45.1% HSBC 89 HSBC 4,468 CAE 48.7% AAIB 212 AAIB 4,528 AAIB 53.2% QNBA 220 QNBA 5,294 Alex 54.9% CIB 295 CIB 7,5
Slide 34: Market Share
Overview | About CIB | Financial Review | Conclusion Market Share 8.52% 8.58% 8.52% 8.54% 8.57% 8.45% 8.43% 8.45% 8.37% 8.40% 8.36% 8.32% 8.35% 8.12% 8.25% 8.28% 8.27% 8.09% 8.06% 7.99% 7.80% 8.18% 8.22% 8.18% 7.53% 7.91% 7.95% 7.84% 7.75% 7.90% 7.67% 7.65% 7.51% 7.56% 7.48% 7.56% 7.37% 7.40% 7.23%
Slide 35: Why CIB?
Overview | About CIB | Financial Review | Conclusion Why CIB? Profitability Total revenues EGP NPAT EGP 2,021mn 4,150mn Asset Quality Extremely skilled Highly qualified Among the best and experienced Board of Directors Investor Relations NPL/Gross loans 5.11%* Direct Coverage Ratio Management Team t
Slide 36: Thank You!
Overview | About CIB | Financial Review | Conclusion 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 co
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