Commercial International Bank - Egypt (cib) S.a.e. · EGX:COMI
Commercial International Bank - Egypt (cib) S.a.e — Commercial International Bank - Egypt (CIB) — Investor Presentation (2014)
41 slides from Commercial International Bank - Egypt (cib) S.a.e's investor presentation, 2014
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: 86.8mn¹ • Current A/C balance: $ -755.8mn** • Median age: 25² • Net International reserve: $17.3bn (May 2014) • Private consumption/GDP: 84.80%** • LT external debt: $42.5bn*** • Public consumption/GDP: 11.49%** • ST external debt: $2.7bn*** • Labor force/population: 3
Slide 6: Egypt Fact Sheet (Cont'd)
Egypt Fact Sheet (Cont’d) Diversified as % of GDP¹ Favorable Demographics² 18,000,000 0.90% 2.79% 16,000,000 2.69% 1.24% 14,000,000 3.92% 12,000,000 3.82% 26.95% 10,000,000 8,000,000 5.83% 6,000,000 6.46% 4,000,000 2,000,000 0 8.70% 0-14 yrs 15-24 yrs 25-54 yrs 55-64 yrs 65 yrs + 12.46% Males Female
Slide 7: Macroeconomics Snapshot
Macroeconomics Snapshot GDP Growth¹ 20% 18.3% Inflation (%) 8% 7.1% 7.2% 15% 13.5% 6% 5.1% 4.7% 11.7% 10.3% 9.6% 4% 10% 8.24% 6.9% 2.2% 2.1% 1.9% 4.7% 2% 1.1% 5% 0% 0% 06/07 07/08 08/09 09/10 10/11 11/12 12/13 H1 13/14 2007 2008 2009 2010 2011 2012 12/13 May 2014 Sovereign Debt FDI (USD mn) 16000 93
Slide 8: Egyptian Banking Sector Snapshot
Egyptian Banking Sector Snapshot Total Loans Total Deposits Loans to Deposits ratio 1,383 566 1,191 545 503 60% 1,027 58% 464 471 965 53% 52% 52% 427 900 49% 49% 382 399 820 46% 344 756 41% 658 571 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 Apr-14 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13
Slide 9: Challenges Facing Egypt
Challenges Facing Egypt Slow improvement in standards of living¹ • UNDP Human Development Index: Score of 0.662, ranking 112/187 • Population Below Poverty Line: 20% Low quality health care services¹ • 4.7% of GDP spent on health care services Lack of educational reforms¹ • 3.8% of GDP spent on educ
Slide 10: Prospects for Banking Environment
Prospects for Banking Environment Economic gradual pick up • Pent up demand for asset products • Increased investments by businesses and several PPP projects in the pipeline Low retail banking penetration • Only 10% of the population is banked Untapped opportunities in the growing SME sector Integra
Slide 11: About CIB
Slide 12: Strategic Milestones
Strategic Milestones Strategic Chase Divestiture: First GDR subsidiaries Ripplewood led Actis Sold Renamed CIB US$ 120M established consortium divested 2.6% in open 22.2% of share to complement our half of its holdings market in capital core business in CIB to Actis March 1975 1987 1993 1996 1998 20
Slide 13: CI Group Structure
Cl Group Structure ivy EGYPT FACTORS CORPLEASE a matter of life... CAPITAL ALSIB croup Member CAPITAL INVESTMENT. ss Ci IB CAPITAL CAPITAL [reco | id CAPITAL DYNAMIC
Slide 14: Business Segments
Business Segments Institutional Consumer CI Capital Banking Banking • Market leader • The take-off for a • Full-fledged • Prime contributor to world class consumer Investment Bank Description profitability banking franchise wholly owned by CIB • Large Corporates • Retail customers (with including MN
Slide 15: 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 908,173,443 EGP 2011 2012 2013 YTD 2014 Par value EGP 10.00 Market Cap. 11,115mn 11,257mn 21,839mn 34,218mn GDR R
Slide 16: Shareholding Structure
Shareholding Structure Free Float Breakdown by region 6.76% 2.35% 3.88% 15.68% 36.56% 21.47% 20.06% North America Africa 93.24% UK & Ireland GCC Continental Europe Rest of the World Free Float Breakdown by category Free Float 14.42% Fairfax Financial Holdings Ltd (“Fairfax”)* 85.58% Individuals Inst
Slide 17: Funding Overview
Funding Overview Funding Structure Customers Deposits Mix 2.91% 0.59% 0.18% 2.25% 18.25% 29.24% 96.25% 24.34% 25.92% Due to Customers Other Liabilities TDs CDs Demand Savings Other Deposits Due to Banks Long-Term Loans CIB’s funding structure has no wholesale funds 17
Slide 18: Key Strengths
Key Strengths Along with its Assets grew subsidiaries and The only “one-stop Continuous 15.3% from Affiliates shop” Growth 2009 till 2013 Highly skilled Highly group leading Experienced Strongest brand reputable the Bank management team equity in market among all banks in Egypt Acted as a Conservati
Slide 19: Total Outlets
Total Outlets Cairo Delta Sina & Canal Upper Egypt & Red Sea EGYPT aictocts Total Area a 18 18 c.1,002,000 sq. km Distribution Network Altemative Distribution Channels: ATMs 560 POS 9,200 Website visits in June’14: 485,342 Internet Banking in June’14: 107,400 Call Center: 170.5k hits in May’14 throu
Slide 20: Corporate Governance
Slide 21: Corporate Governance
Corporate Governance Commitment to Corporate Governance Importance of Corporate Governance • Corporate governance is an issue that rates high on It has been demonstrated over and over our list of priorities that effective corporate governance in banks • CIB was the first Egyptian corporation to esta
Slide 22: Board of Directors
Board of Directors • The Board and each of its commi1ees are governed by well-‐ Audit Commi2ee defined charters that sets out its responsibili<es and composi<on requirements • CIB’s Board consists of 8 members, 7 of which are Non-‐Execu<ve Corporate Governance & with a wide range of industry exper<
Slide 23: Board Members
Board Members Hisham Ezz Al-Arab Chairman & Managing Director Mark Richards Head of financial services of Actis Jawaid Mirza Non Executive Board Member Medhat Hassanein Egypt's former Minister of Finance Nadia Makram Ebeid Executive Director of the Center for Environment and Development for the Arab
Slide 24: CIB Financial Highlights
Slide 25: Performance Snapshot: June 2014
Performance Snapshot: 30 June 2014 Total Assets Net Loans Customer Deposits Shareholders’ Equity EGP 128,240mn EGP 45,062mn EGP 110,900mn EGP 12,965mn Year-End 2013: EGP 113,752mn; Year-End 2013: EGP 41,866mn; Year-End 2013 : EGP 96,846mn; Year-End 2013: EGP 11,960mn; 13% YTD 7.6% YTD 14.5% YTD 8.4%
Slide 26: Historical Performance
Historical Performance 50% 56% 56% 55% 56% 57% 52% 54% 53% 96.8 2.90% 3.08% 2.87% 2.89% 2.90 43% 2.48 78.7 2.37% 71.5 1.94% 2.09% 2.01% 63.4 113,752 54.8 48.9 39.5 85,506 93,957 31.6 64,255 75,425 24.0 24.9 47,906 57,462 27,977 30,389 37,553 14.0 17.5 20.5 26.3 27.4 35.2 41.1 41.9 41.8 13.4 2004 200
Slide 27: Peer Analysis – Q1'2014
Peer Analysis – Q1'2014 40% 33.69% ROAE 3% 2.81% ROAA Cost to Income 52.33% 2.67% 50% 2.29% 2.12% 41.13% 30% 25.82% 23.65% 1.76% 40% 2% 1.69% 29.10% 29.57% 30.03% 19.12% 20% 16.13% 16.10% 30% 23.09% 20% 1% 10% 10% 0% 0% 0% HSBC CIB CAE QNBA AAIB Alex HSBC CIB QNBA CAE AAIB Alex CIB AAIB HSBC QNBA CA
Slide 28: Market Share Trend
Market Share Trend 10.00% 9.00% 8.77% 8.47% 8.45% 8.52% 8.58% 8.52% 8.24% 8.30% 8.32% 8.25% 8.28% 8.27% 8.02% 8.10% 8.00% 7.58% 7.22% 7.04% 7.67% 7.65% 7.48% 7.48% 7.51% 7.56% 7.00% 6.70% 7.39% 7.37% 7.14% 7.23% 7.23% 6.89% 6.98% 6.66% 6.62% 6.56% 6.67% 6.00% 6.38% 5.00% Dec-09 Mar-10 Jun-10 Sep-10
Slide 29: Market Share Breakdown
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 0.00% 5.00% 10.00% 15.00% Dec-09 Dec-09 Mar-10 Mar-10 Jun-10 Jun-10 * As of April 2014 Sep-10 Sep-10 LCY Dec-10 Dec-10 Household Mar-11 Mar-11 Jun-11 Jun-11 Household Sep-11 LCY Sep-11 Dec-11 Dec-11 5.44% 6.99% Mar-12 Mar-12 Loans Loans Jun-12 FCY Jun-12 I
Slide 30: Consumer Banking Snapshot
Slide 31: Assets Portfolio Growth
Assets Portfolio Growth Assets Assets Mix 9,600 100% 4,048mn 10% 9% 9% 9% 9% 8% 7% 17% 13% (103%) 90% 10% 8,600 9% 9% 10% 10% 10% 10% 80% 10% 6% 12% 9% 8% 7% 8% 7% 7,600 10% 70% 10% 6,600 14% 27% 28% 60% 31% 30% 27% 30% 31% 5,600 50% 31% 8,904 26% 7,962 40% 4,600 7,305 7,073 7,210 7,182 6,664 30% 3,
Slide 32: Assets By Segment
Assets By Segment YoY Performance QoQ Performance 4,500 4,166 4,200 4,166 4,000 3,954 4,000 Wealth Segment 3,532 3,500 3,800 3,000 Mar-14 Jun-14 Jun-13 Jun-14 1,500 1,500 1,077 1,077 1,000 1,000 705 Business Banking 624 500 500 0 0 Jun-13 Jun-14 Mar-14 Jun-14 600 600 431 472 431 385 400 400 Plus Seg
Slide 33: Business Banking profile
Business Banking profile • Business Banking has been one of CIB’s strategic initiatives in the past couple of years • Was launched on a pilot basis in 2011 and went live in 2012, finally in 2013 was aggressively introduced to the market • Falls under CIB’s Consumer Banking umbrella • Manages financi
Slide 34: 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 Companies Total Deposits 11% 16% 19% 65% 89% Retail companies Business Banking Other Retail Business Banking Retail Companies Revenue Gros
Slide 35: CIB Strategy
Slide 36: Vision realization
Vision realization Where do we stand? Way forward Financial Quality loan • Positioned as trade finance Aggressive growth, with focus hub for Egypt Performance on increasing deposit growth, Transactional Drivers specially from banking services product penetration • Focus on mortgage lending household
Slide 37: Summary and Conclusion
Slide 38: Why Egypt?
Why Egypt? • Building new political structure to fulfill the dreams of all Egyptians Political Situation • General improved optimism about the political future in Egypt • Moving to a more open political system • Among the most diverse in the MENA region Economic • Started transformation to a stable
Slide 39: Why CIB?
Why CIB? Profitability Liquidity Largest in … Asset Quality KPIs • Total Assets • Market EGP 128bn leader • High • Loans and liquidity • ROAA deposits • NPAT EGP • NPL/Gross 2.89% market 1.7bn loans 4.66% • Net LDR shares • Total 40.8% • ROAE • Market Cap revenues • Direct 29.4% EGP 34.2bn EGP 3.79b
Slide 40: Awards and Recognition
Awards and Recognition 2014 • *CIB is the only ranked Egyptian organization in the Forbes world’s 2000 biggest public companies. CIB is ranked 1,735 as of 2014; an improvement of its previous rank of 1,966 in 2013 • Best Trade Finance Provider in Egypt by Global Finance for the 8 th year. • Best For
Slide 41: 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 Yasmine Hemeda IR Senior Analyst Hot line: 19666 Yasmine.Hemeda@cibeg.
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