Commercial International Bank - Egypt (cib) S.a.e. · EGX:COMI
Commercial International Bank - Egypt (cib) S.a.e — Commercial International Bank - Egypt (CIB) — Q4 2015 Earnings Presentation
44 slides from Commercial International Bank - Egypt (cib) S.a.e's earnings presentation, 2016
Slide 1: Investor Relations Presentation
Investor Relations | Presentation
Slide 2: Disclaimer
Disclaimer This document is the property of CIB and it may contain confidential information solely for use as an investor presentation. It must be treated confidentially by attendees at such presentation and should not be reproduced, redistributed or passed to any other person. The information conta
Slide 3: Table of Contents
Table of Contents Macro-Environment About CIB Corporate Governance Financial Highlights Consumer Banking Snapshot CIB Strategy Summary and Conclusion 3
Slide 4: Macro-Environment
Slide 5: Egypt Fact Sheet
Egypt Fact Sheet • Population: 90.4mn¹ • Current A/C balance: $-3,980mn*** • Median age: 25² • Net International reserve: $16.4bn (December 2015) • Private consumption/GDP: 85.74%** • LT external debt: $43.4bn*** • Public consumption/GDP: 10.47%** • ST external debt: $2.8n*** • Labor force/populatio
Slide 6: Egypt Fact Sheet (Cont'd)
Egypt Fact Sheet (Cont’d) Diversified as % of GDP¹ Favorable Demographics² 18,000,000 1.21% 0.50% 16,000,000 14,000,000 2.75% 3.40% 12,000,000 3.91% 10,000,000 4.28% 27.85% 8,000,000 6,000,000 5.81% 4,000,000 6.14% 2,000,000 0 0-14 yrs 15-24 yrs 25-54 yrs 55-64 yrs 65 yrs + 9.45% 14.06% Males Female
Slide 7: Macroeconomics Snapshot
Macroeconomics Snapshot Reform-led boom 8.0% 7.1% 7.2% Global financial crisis 7.0% 6.0% 5.1% 5.0% 4.7% Post-uprising turmoil 4.2% 4.0% 3.0% 2.2% 2.1% 2.2% 1.9% 2.0% 1.0% 0.0% 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Real GDP Growth (%)* Inflation (%) FDI (USD mn) 16,000 25% 13,237 21.5
Slide 8: Prospects for Egyptian Economy
Prospects for Egyptian Economy • New Suez Canal • Fuel subsidies • New Cairo Administrative Capital • Corporate tax • Investment law • Development Passage, in Western Mega General • CBE new mechanism for FCY repatriation Desert parallel to the Nile Valley • Mobile financial services • Golden Triangl
Slide 9: Egypt… Safe haven for investments
Egypt… Safe haven for investments Broad, and Proximity to increasing, local international customer base markets Major Improved ease investment of doing opportunities business Low labor costs Egypt Large market provides… share 9
Slide 10: Challenges Facing Egypt
Challenges Facing Egypt Slow improvement in standards of living1 • UNDP Human Development Index: Score of 0.682, ranking 110/187 in 2013 Low quality health care services2 • 5.1 % of GDP spent on health care services in 2013 Lack of educational reforms1 • 3.8% of GDP spent on education in 2012 Ease o
Slide 11: Egyptian Banking Sector Snapshot
Egyptian Banking Sector Snapshot Total Loans Total Deposits Loans to Deposits ratio 1,881 1,740 780 1,433 60% 58% 714 1,191 53% 52% 52% 49% 49% 584 1,027 46% 545 965 41% 41% 41.7% 503 900 464 471 820 427 756 382 399 658 344 571 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Nov-15 05/06
Slide 12: About CIB
Slide 13: 40 years of Sustainable Growth… and counting
40 years of Sustainable Growth… and counting First Chase First Egyptian Consortium Ripplewood led Actis Sold International led by National Bank IPO raising consortium 2.6% in open Rating by S&P Ripplewood; established US$ 115M; 150% divested half of market in and Fitch: acquired NBE oversubscribed i
Slide 14: Divestitures of Corplease and CIL stakes
• CIB sold its stake in Corplease to CI Capital in December 2015 • CIB finalized the sale transaction of its stake in CIL to AXA in November 2015 14
Slide 15: Business Segments
Business Segments Institutional Consumer CI Capital Banking Banking • Market leader • The take-off for a world • Full-fledged Investment • Prime contributor to class consumer banking Bank wholly owned by Description profitability franchise CIB • Large Corporates • Retail customers (with including MN
Slide 16: Total Outlets
Total Outlets Cairo Alex. Sina & Canal Upper Egypt & Red Sea Delta EGYPT aaicitacts Total Area c.1,002,000 sq. km Distrioution Network 187 Land 99.34% of total area Water 0.60% of total area Altemative Distribution Channels: ATMs 662 POS 10,730 Website visits during Q4’2015: 2,146,239 Internet Banki
Slide 17: Share Information
Share Information CIB’s Stock is listed in the Egyptian Stock Exchange, London Stock Exchange and traded in New York Stock Exchange Share Information* CIB Stock Info.* Shares outstanding 1,147,060,297 EGP 2012 2013 2014 2015 YTD 2016 Par value EGP 10.00 Market Cap. 20,646mn 29,329mn 44,673mn 43,691m
Slide 18: Shareholding Structure
Shareholding Structure Free Float Breakdown by region 6.7% 4.68% 7.15% 6.39% 13.43% 50.82% 17.54% North America Africa 93.3% GCC UK & Ireland Continental Europe Rest of the World Free Float Breakdown by category Free Float 12.84% Fairfax Financial Holdings Ltd (“Fairfax”)* 87.16% * Several wholly ow
Slide 19: Funding Overview
Funding Overview Funding Structure Customers Deposits Mix 3.65% 0.98% 0.08% 3.64% 16.61% 27.88% 95.28% 24.17% 27.70% Due to Customers Other Liabilities Demand TDs CDs Savings Other Deposits Due to Banks Long-Term Loans CIB’s funding structure has no wholesale funds 19
Slide 20: Business Continuity Management
Business Continuity Management • Leader in implementing international standards and best practices • Set a unique model within the Egyptian financial sector in Business Continuity field • Committed to providing uninterrupted services and support to our valuable customers Overview Initiatives Progres
Slide 21: Corporate Governance
Slide 22: Corporate Governance
Corporate Governance Commitment to Corporate Governance Importance of Corporate Governance • An issue that rates high on our list of priorities It has been demonstrated over and over that • CIB was the first Egyptian corporation to establish an effective corporate governance in banks Audit Committee
Slide 23: Board of Directors
Board of Directors • The Board and each of its committees are governed by well- Audit Committee defined charters that sets out its responsibilities and composition requirements • CIB’s Board consists of 8 members, 7 of which are Non-Executive Corporate Governance & with a wide range of industry expe
Slide 24: Board Members
Hisham Ezz Al-Arab Chairman & Managing Director Jawaid Mirza Non Executive Board Member Nadia Makram Ebeid Executive Director of the Center for Environment and Development for the Arab Region and Europe (CEDARE) Yasser Hashem Managing Partner of Zaki Hashem & Partners, Attorneys at Law BOD compositi
Slide 25: CIB Financial Highlights
Slide 26: Performance Snapshot: December 2015
Performance Snapshot: 31 December 2015 Total Assets Net Loans Customer Deposits Shareholders’ Equity EGP 179,500mn EGP 56,836mn EGP 155,234mn EGP 16,535mn Year-End 2014: EGP 143,813mn; Year-End 2014: EGP 48,804mn; Year-End 2014: EGP 121,975mn; Year-End 2014: EGP 14,754mn; 25% YTD 16% YTD 27% YTD 12%
Slide 27: Performance Summary: last 10 years
Performance Summary: last 10 years 56% 56% 55% 57% 3.03% 2.89% 2.92% 2.93% 2.94% 52% 54% 53% 122.0 50% 2.52% 2.62% 2.51% 43% 40% 2.09% 2.03% 96.8 143,813 78.7 71.5 63.4 48.9 54.8 113,752 39.5 93,957 31.6 75,425 85,506 24.9 47,906 57,462 64,255 30,389 37,553 17.5 20.5 26.3 27.4 35.2 41.1 41.9 41.8 48
Slide 28: Peer Analysis – Q3'2015
Peer Analysis – Q3'2015 EGP bn Total Assets EGP mn Net Income Gross Loans to Deposits 200 176 4,000 3,511 80% 68.65% 57.64% 150 126 3,000 60% 52.38% 2,228 47.44% 44.23% 101 1,868 40.87% 100 2,000 40% 65 1,242 47 903 750 50 33 1,000 20% 0 0 0% CIB QNBA AAIB HSBC Alex CAE CIB QNBA HSBC AAIB Alex CAE A
Slide 29: Market Share Trend
Market Share Trend 10.00% 9.00% 8.77% 8.47% 8.45% 8.52% 8.58% 8.52% 8.54% 8.57% 8.35% 8.24% 8.30% 8.32% 8.25% 8.28% 8.27% 8.43% 8.45% 8.11% 8.02%8.10% 8.00% 8.37% 8.18% 8.22% 7.91% 7.84% 7.67% 7.65% 7.75% 7.51% 7.56% 7.00% 7.39% 7.48% 7.48% 7.37% 7.14% 7.23% 7.23% 6.89% 6.98% 6.67% 6.00% 5.00% Dec-1
Slide 30: Market Share Breakdown
6.00% 8.00% 0.00% 2.00% 4.00% 10.00% 12.00% 0.00% 5.00% 10.00% 15.00% Dec-10 Dec-10 Mar-11 Mar-11 Jun-11 Jun-11 * As of October 2015 Sep-11 Sep-11 LCY Dec-11 Dec-11 Mar-12 Mar-12 Household Jun-12 Jun-12 Sep-12 Sep-12 Dec-12 Dec-12 LCY Mar-13 Mar-13 Household 5.93% 6.78% Jun-13 Jun-13 Loans Loans Sep
Slide 31: Consumer Banking Snapshot
Slide 32: Assets Portfolio Growth
Assets Portfolio Growth Assets Assets Mix 14 8.5bn EGP bn 100% 5% 4% 7% 7% 7% 7% 26%* 10% 9% 8% 7% 12 17% 13% 9% 11% 10% 10% 10% 10% 11% 10% 10% 10% 10% 7% 7% 6% 6% 6% 12% 7% 6% 6% 10 75% 10% 8% 10% 25% 26% 24% 24% 24% 14% 28% 29% 8 27% 27% 30% 50% 31% 6 11.84 12.43 26% 10.61 11.01 8.90 9.48 9.47 4
Slide 33: Assets By Segment
Assets By Segment YoY Performance QoQ Performance 7,000 7,000 5,553 5,553 5,272 5,000 4,336 5,000 Wealth Segment 3,000 3,000 1,000 1,000 Sep-15 Dec-15 Dec-14 Dec-15 2,500 1,605 1,676 2,000 1,600 1,676 Business Banking 1,500 1,100 993 600 1,000 100 500 Dec-14 Dec-15 Sep-15 Dec-15 1,000 1,000 781 781
Slide 34: Business Banking profile
Business Banking profile • Falls under CIB’s Consumer Banking umbrella • Manages financial needs of small and medium size retail companies with annual sales turnover below EGP 60mn Launched in 2011 Aggressively introduced (pilot basis) to the market in 2013 Went live in 2012 Currently has penetratio
Slide 35: Business Banking Performance
Business Banking Performance Business Banking model has proved its success when compared to the Retail Banking approach in terms of overall performance Number of Customers Total Deposits 18% 24% 76% 82% Business Banking Retail Business Banking Retail Revenue Gross Contribution 22% 30% 70% 78% Busine
Slide 36: Customer Experience
Customer Experience • Committed to continue meeting our customers’ expectations, maintaining customer satisfaction levels and dealing proactively with the challenges faced and focus on enhancing our employees’ capabilities in dealing with these challenges • Measuring customers’ satisfaction levels c
Slide 37: CIB Strategy
Slide 38: Vision realization
Vision realization Where do we stand? Way forward Financial • Positioned as trade finance hub for Egypt Quality loan growth, Aggressive deposit • Focus on SMEs & underpenetrated retail Performance with focus on growth, specially Transactional increasing product banking services banking segment Drive
Slide 39: e-Channels and Digital Banking Domain
e-Channels and Digital Banking Domain Initiatives Performance 99.5% 99.9% 99.8% 100.0% 98.0% Revamping Introducing 96.0% IVR * Mobile 94.0% Banking** 92.0% 90.0% 88.0% Oct-15 Nov-15 Dec-15 Introducing Revamping Internet Banking Availability Mobile Wallet and IVR * e-payments Launching 100.0% phase I
Slide 40: Summary and Conclusion
Slide 41: Awards and Recognition
Awards and Recognition 2015 - Best Commercial Bank Egypt by Banker Africa Banking Awards « Best Corporate Bank North Africa by Banker Africa Banking Awards « Most Socially Responsible Bank North Africa by Banker Africa Banking Awards : Bank of the Year Egypt - By The Banker + Elite Quality Recogniti
Slide 42: Why Egypt?
Why Egypt? • Building new political structure to fulfill the dreams of all Egyptians Political • General improved optimism about the political future in Egypt Situation • Moving to a more open political system • Among the most diverse in the MENA region • Started transformation to a stable and moder
Slide 43: Why CIB?
Why CIB? Along with its The only “one- • Market leader subsidiaries and Affiliates Profitability • NPAT EGP 1.1bn stop shop” • Total revenues EGP 2.9bn Assets grew 18.72% from Continuous • NPL/Gross loans 3.98%* 2009 till 2015 year-end Asset Quality Growth • Direct Coverage Ratio 188%* Highly reputa
Slide 44: Thank you
Thank you For more information, please visit www.cibeg.com Investor Relations contacts: Headquarters: Sherif Khalil Nile Tower Building Head of IR 21/23 Charles De Gaulle St., Giza Sherif.khalil@cibeg.com P.O Box 2430 Cairo Egypt Nelly El Zeneiny Hot line: 19666 IR Senior Analyst 24/7 dedicated cust
Commercial International Bank - Egypt (CIB) — Q4 2015 Earnings Presentation on 6ix