Commercial International Bank - Egypt (cib) S.a.e. · EGX:COMI
Commercial International Bank - Egypt (cib) S.a.e — Commercial International Bank - Egypt (CIB) — H1 2024 Earnings Presentation
41 slides from Commercial International Bank - Egypt (cib) S.a.e's earnings presentation, 2024
Slide 1: Investor Relations Presentation H1 2024
Investor Relations Presentation H1 2024
Slide 2: Table Of Contents
Table Of Contents ABOUT CIB STRATEGY • INVESTMENT CASE • STRATEGY • CIB AT A GLANCE • DIGITAL TRANSFORMATION • COMI AND CREDIT RATINGS ESG OPERATING SCENE • MACROECONOMIC ENVIRONMENT • EGYPTIAN BANKING SECTOR FINANCIAL PERFORMANCE INVESTOR RELATIONS PRESENTATION H1 2024
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: About CIB
ABOUT CIB INVESTOR RELATIONS PRESENTATION H1 2024
Slide 5: Investment Case
INVESTMENT CASE A dynamic long-term strategy Taking security seriously The central pillars of CIB’s strategy include the use of pragmatic balance sheet CIB’s security and governance policies are aligned with international standards and best management to profitably grow the Bank’s asset base, increa
Slide 6: CIB at Glance
CIB AT GLANCE Key Factors Total Assets Presence Egypt Branches Emloyees Revenues 209 8,106 EGP 46.3 bn EGP 1.057 U.A.E (Trillion) +27% YtD Change Ethiopia Clients ATMs Market Cap +2mn 1,394 EGP 245 bn Kenya Profits by Lines of bussiness Total Customer Desposits Subsidiaries and Associates Asset and
Slide 7: COMI and Credit Ratings
COMI AND CREDIT RATINGS STOCK EXCHANGES TICKER SHARE INFORMATION 52 WEEKS PERFORMANCE P/B Listed Egyptian Exchange (EGX) COMI Shares outstanding 3,019,501,000 High EGP 97.5 2.7 Par value EGP 10.00 Low EGP 50.48 Listed London Stock Exchange (LSE) CBKD GDR convertibility 1:1 Traded OTCQX Int’l Premier
Slide 8: Operating Environment
OPERATING ENVIRONMENT INVESTOR RELATIONS PRESENTATION H1 2024
Slide 9: Macroeconomic Environment
MACROECONOMIC ENVIRONMENT Real GDP Growth (%) Fiscal Budget Inflation (%) 80 EGP million 80 70 70 -6.10% -6% -3.5% 60 -7.40% -8.20% -7.90% 60 50 1,564,115 1,325,571 50 1,108,626 40 975,430 40 941,910 335,135 30 41% 30 34.20% 31.2% 2,184,783 27.50% 1,812,074 20 20 24.5% 1,434,724 1,369,870 1578,774 7
Slide 10: Macroeconomic Environment
MACROECONOMIC ENVIRONMENT Key Sector Growth (%) July/Sept. 2023/2024 Economic Activity Contribution to GDP (July/Sept. 2023/2024) MANAGEABLE DEBT Net International Reserve: USD 46.4bn (June 2024) 6.7% 14.7% 6.2% Current A/C balance: USD 6.8 bn 5.8% LT external debt: USD 138,551 bn 11.0% ST external
Slide 11: Egypt's Banking Sector
EGYPT’S BANKING SECTOR Total loans (EGP bn) Total deposits (EGP bn) LDR 18/19 19/20 20/21 21/22 22/23 24-Feb 18/19 19/20 20/21 21/22 22/23 24-Feb 18/19 19/20 20/21 21/22 22/23 24-Feb YtD Loan Growth YtD Deposit Growth 18/19 19/20 20/21 21/22 22/23 24-Feb 18/19 19/20 20/21 21/22 22/23 24-Feb INVESTOR
Slide 12: Egypt's Banking Sector
EGYPT’S BANKING SECTOR Total Number of Branches Total Number of ATMs Total Number of POS 188,429 212,705 215,923 173,401 98,049 22,708 79,952 23,275 21,459 16,962 12,656 14,152 18/19 19/20 20/21 21/22 22/23 Dec-23 18/19 19/20 20/21 21/22 22/23 Dec/23 18/19 19/20 20/21 21/22 22/23 Dec/23 Total Number
Slide 13: Strategy
STRATEGY INVESTOR RELATIONS PRESENTATION H1 2024
Slide 14: Our Strategy
OUR STRATEGY TODAY TOMORROW F i na nc i a l P erf o r m a n c e • Quality loan growth, with focus on increasing product penetration & SoW • Differentiating our lending portfolio towards sectors of the future • Deposit growth, particularly from households clients • Focus on underpenetrated retail ban
Slide 15: Financial Inclusion
FINANCIAL INCLUSION Since the launching of financial inclusion strategy by CBE and the CIB is continuing to develop all the necessary tools to enable better- access for unbanked & underbanked segments, understand the segments financial needs and offering the necessary financial literacy alongside ta
Slide 16: Financial Inclusion
FINANCIAL INCLUSION Financial inclusion business evolution Q2 2024 vs. Q2 2023 INDIVIDUALS MICRO BUSINESS Bedaya saving-no. of accounts Smart Wallet Customer Base Current & Business- no. of accounts 35,179 1,261,042 2,012 78% 40% 160% 902,873 19,730 773 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 202
Slide 17: Financial Inclusion
FINANCIAL INCLUSION CIB is always keen to be one of the main players to achieve the strategic objectives of the country believing in its role to improve the financial awareness for the underbanked in addition to include them in the ecosystem. CIB conducted awareness and literacy sessions for more th
Slide 18: ESG
ESG INVESTOR RELATIONS PRESENTATION H1 2024
Slide 19: Our Sustainability Journey
OUR SUSTAINABILITY JOURNEY CIB Foundation Bank-wide Energy FTSE4Good Founding Signatory Supporter of the Task Signatory of the UNEPFI Efficiency Project Constituent of the Principles for for Climate Related Commitment on Financial Responsible Banking* Financial Disclosures Health & Inclusion 2010 20
Slide 20: Our Approach
OUR APPROACH INTERNATIONAL STANDARDS AND GUIDELINES PILLAR 01 PILLAR 04 SUSTAINABILITY SUSTAINABILITY GOVERNANCE MANAGEMENT SYSTEM CIB PILLAR 02 SUSTAINABLE PILLAR 05 SUSTAINABLE FINANCE FINANCE SUSTAINABILITY INSTITUTIONAL & POLICY COMMUNICATION FRAMEWORKS & EDUCATION PILLARS ARCHITECTURE PILLAR 03
Slide 21: ESG Governance
ESG GOVERNANCE The integration of sustainability into CIB’s core operation starts at the highest level with signoff from the bank’s Board of Directors who are committed to advancing the bank’s governance structures to ensure the integration of ESG into the bank’s policies and culture Board of Board
Slide 22: Climate Change Governance
CLIMATE CHANGE GOVERNANCE Board Board Oversight of Directors Board Oversight Board Board Board Audit Committee Sustainability Committee Risk Committee Chief Executive Officer and Managing Director Executive Management Oversight Sustainable Finance Executive Management Oversight Steering Committee Me
Slide 23: Climate Change Governance
CLIMATE CHANGE GOVERNANCE Climate Change Task Force Task Force and Business Management Corporate Business Retail Direct Treasury Banking Banking Banking Investment More information is found in the Bank’s TCFD Report INVESTOR RELATIONS PRESENTATION H1 2024
Slide 24: Environmental, Social and Climate Risk
ENVIRONMENTAL, SOCIAL AND CLIMATE RISK CIB has had a robust Environmental and Social Risk Management System (ESRM) in place since 2016, which positions the Bank as the leader in sustainable finance in the Egyptian market and provides clients with the necessary tools and products to aid their transit
Slide 25: Corporate Governance
CORPORATE GOVERNANCE The Board carries on with its mandate to continuously Commitment to sound corporate governance practices continues to define CIB improve the overall corporate governance framework by regularly reviewing and supervising the Bank’s practices • Internal policies, risk controls, and
Slide 26: Board Committees
CORPORATE GOVERNANCE CIB’s Board consists of 10 members; 9 are non-executive, 6 are independent and 2 representing the interests of Alpha Oryx Ltd* Paresh Audit Hisham Sukthankar Fadhel Al Ali Hoda Mansour Jawaid Mirza Committee Go Cor Ezz Al-Arab v p No ern ora Independent, Non-executive Board Inde
Slide 27: Risk Management
RISK MANAGEMENT INVESTOR RELATIONS PRESENTATION H1 2024
Slide 28: Risk Management
RISK MANAGEMENT RISK APPETITE Risk Appetite is an integral component of CIB’s ERM framework as a governance and Risk Governance – Three Lines Model monitoring tool in evaluating the Bank’s risks. It covers all material risks (financial and Board of Directors non-financial) including its policies, pr
Slide 29: Financial Performance
FINANCIAL PERFORMANCE INVESTOR RELATIONS PRESENTATION H1 2024
Slide 30: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS YoY Standalone Profit and Loss (EGP million) 1H24 4Q23 1H23 Change NET INCOME MOVEMENT Net Interest Income 41,537 15,160 23,893 74% Non-Interest Income 4,716 1,184 1,583 198% Net Operating Income 46,253 16,344 25,476 82% EGP million 17,644 Non-Interest Expense (5,799) (3,
Slide 31: Loans and Advances
LOANS AND ADVANCES GROSS LOANS JUNE-24 GROSS LOAN COMPOSITION CORPORATE LOAN PRODUCTS Other Corporate 69 Loans 0.3% Corporate 65 Individual Overdraft 21% 53 57 60 26.7% 53 Syndicated Loans EGP billion 24.9% Corporate 249 263 & Business 191 199 198 206 Banking 79% Corporate Mar-23 Jun-23 Sep-23 Dec-2
Slide 32: Customers' Deposits
CUSTOMERS’ DEPOSITS DEPOSITS JUNE-24 DEPOSIT COMPOSITION JUNE-24 DEPOSIT BREAKDOWN BY TENOR 370 370 Corporate, 43% 307 306 EGP 370bn Term, EGP billion 46% EGP 491bn CASA 491 491 54% 371 360 Individual, 57% Jun-23 Sep-23 Dec-23 Jun-24 Individual Corporate DEPOSIT MOVEMENT DEPOSITS BREAKDOWN BY INTERE
Slide 33: Net Interest Income/Non-Interest Income
NET INTEREST INCOME/NON-INTEREST INCOME NET INTEREST INCOME NON-INTEREST INCOME 81,692 5,000 4,716 13,729 11,697 4,500 45,115 EGP million 4,000 3,500 24,313 21,017 3,000 1,583 2,500 (9,320) (10,584) 2,000 (21,222) 1,500 941 929 1,000 Jun-21 Jun-22 Jun-23 Jun-24 500 0 Interest Income Interest Expense
Slide 34: Cost Efficiency
COST EFFICIENCY NON-INTEREST EXPENSES HEADCOUNT 7,000.00 6,000.00 8,106 5,000.00 5,799.00 4,000.00 4,297.00 7,725 2,946.00 3,000.00 3,270.00 7,494 2,000.00 1,000.00 7,161 Jun-21 Jun-22 Jun-23 Jun-24 Jun-21 Jun-22 Jun-23 Jun-24 COST EFFICIENCY 23.2% 22.0% 16.4% 12.5% 2.92 3.23 4.17 (6) 13 15 26 46 Ju
Slide 35: Provisions and Coverage
PROVISIONS AND COVERAGE NPL COVERAGE RATIO NPL RATIO 5.7% 0.06 4.84% 5.1% 350% 300% 314% 4.1% 250% 200% 236% 209% 204% 150% 100% 50% 0% Jun-21 Jun-22 Jun-23 Jun-24 Jun-21 Jun-22 Jun-23 Jun-24 COST OF RISK FOR DIRECT FACILITIES DIRECT & OFF BALANCE SHEET BALANCE COVERAGE 58 55 13.1% 45 12.3% 12.1% 10
Slide 36: Capital and Liquidity
CAPITAL AND LIQUIDITY RISK-WEIGHTED ASSETS CAPITAL BASE CAPITAL ADEQUACY RATIO 142 122 25 24 100 91 541,984 16 83 600,000 438,652 381,507 75 15 15 500,000 14 117 400,000 484,592 EGP billion 98 300,000 390,626 84 427,202 76 68 200,000 62 100,000 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Feb-24 Jan-24
Slide 37: Position Among Peers
POSITION AMONG PEERS* Total Assets Net Income ROAE EGP Billions CIB 972 CIB 11.947 HSBC 66.9% CAE 61.5% QNBA 722 QNBA 6.851 CIB 50.2% AAIB 696 HSBC 5.554 ALEX 42.4% AAIB 3.510 HSBC 279 QNBA 41.2% CAE 2.291 ALEX 175 AAIB 12.6% ALEX 2.100 CAE 110 Capital Adequacy Cost to Income ALEX 25.4% QNBA 12.5% C
Slide 38: Position Among Peers
POSITION AMONG PEERS* ROAA Gross Loans to Deposits Deposit Market Share CAE 8.5% CAE 54.1% HSBC 8.4% QNBA 51.2% 6.3% 6.6% 5.2% CIB 5.3% ALEX 48.4% 4.6% 3.9% ALEX 5.0% AAIB 41.3% 2.5% 1.8% 1.7% 1.5% 1.3% QNBA 4.1% CIB 39.6% 0.7% 0.8% Dec-21 Dec-22 Dec-23 AAIB 1.8% HSBC 25.9% AAIB ALEX CAE CIB HSBC QN
Slide 39: Awards 2024
AWARDS 2024 Global Finance EUROMONEY EUROMONEY EMEA Finance Best securitisation house in Best FX bank in Egypt Corporate Banking Best Bank in Egypt 2024 Africa Global Finance EUROMONEY EUROMONEY Best Bank for Sustainable Finance in Emerging Markets for Africa 2024 Digital Solutions Best Digital Bank
Slide 40: Thank You
THANK YOU For more information, please visit our website; www.cibeg.com Investor Relations contacts: Headquarters: Email: Hotline: Nile Tower Building CIB.InvestorRelations@cibeg.com 19666 21/23 Charles De Gaulle St., Giza P.O Box 2430 Cairo-Egypt INVESTOR RELATIONS PRESENTATION H1 2024
Slide 41: Thank You
Thank You INVESTOR RELATIONS PRESENTATION Q1 2024
Commercial International Bank - Egypt (CIB) — H1 2024 Earnings Presentation on 6ix