Commercial International Bank - Egypt (cib) S.a.e. · EGX:COMI
Commercial International Bank - Egypt (cib) S.a.e — Commercial International Bank (CIB) — Q1 2024 Earnings Presentation
38 slides from Commercial International Bank - Egypt (cib) S.a.e's earnings presentation, 2024
Slide 1: Investor Relations: Commercial International Bank (CIB) 1Q24
INVESTOR RELATIONS Commercial International Bank (CIB) 1Q24 CIB Annual Report 2023 is available on our website here
Slide 2: Table of Contents
TABLE OF CONTENTS ABOUT CIB 4 • CIB AT A GLANCE • COMI IN A NUTCHELL AND CREDIT RATINGS MACROECONOMIC ENVIRONMENT 7 • MACROECONOMIC ENVIRONMENT • EGYPTIAN BANKING SECTOR STRATEGY 10 • 5 YEAR STRATEGY • DIGITAL TRANSFORMATION ESG 16 RISK MANAGEMENT 24 FINANCIAL PERFORMANCE 26 2
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
VAIL ABOUT CIB
Slide 5: CIB at a Glance
ABOUT CIB CIB AT A GLANCE The Leading Local Private-Sector Bank with Regional Ambitions Key Facts 209 8,052 EGP 21.8 bn Branches Employees Revenues 2+ 1,384 232.4bn* Million Clients ATMs Market Cap Total Assets Total Customer Deposits +17% YtD Change EGP 796.081 (Billion) +18% YtD Change EGP 977.015
Slide 6: COMI in a Nutshell and Credit Ratings
ABOUT CIB COMI IN A NUTSHELL AND CREDIT RATINGS STOCK EXCHANGES TICKER SHARE INFORMATION 52 WEEKS PERFORMANCE Listed Egyptian Exchange (EGX) COMI Shares outstanding 3,019,501,000 High: EGP 97.5 Listed London Stock Exchange (LSE) CBKD Par value EGP 10.00 Low: EGP 47.26 GDR convertibility 1:1 Traded O
Slide 7: Macroeconomic Environment
MACROECONOMIC ENVIRONMENT 7
Slide 8: Macroeconomic Environment
OPERATING ENVIRONMENT MACROECONOMIC ENVIRONMENT Real GDP Growth (%) Fiscal Budget Inflation (%) Diversified Economy** EGP million 6.7% 14.7% 6.2% 18.0% -5% 16.7% 5.8% -8% -8% -7% 15.6% 11.0% 13.3% 14.6% 11.9% 6.2% 10.1% 2.7% 1,108,626 3.6% 14.6% 941,910 975,430 7.2% 5.1% 6.3% 780,996 1.8% 14.5% 6.9%
Slide 9: Egypt's Banking Sector
OPERATING ENVIRONMENT EGYPT’S BANKING SECTOR Egypt banking sector is well positioned for both resiliency and growth Total Loans (EGP bn) Total Deposits (EGP bn) Loan/Deposit Ratio (LDR) (%) Loan Growth (%) 46.2% 5,286 52% 9,886 31.0% 50% 7,372 47% 22.2% 3,490 46% 18.5% 46% 13.6% 2,856 5,751 4,701 2,
Slide 10: Strategy
VAIL STRATEGY
Slide 11: Our Strategy: Today and Tomorrow
INVESTOR RELATIONS OUR STRATEGY TODAY TOMORROW ❑ 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 banking segments with mo
Slide 12: Digital Transformation
STRATEGY DIGITAL TRANSFORMATION Global Transaction Banking Products: Transactions Transactions Growth Vs YTD Mar 2023 Growth Vs YTD Mar 2023 Volume Value Cash Management 2.4m 13% 465bn 69% IPN 26.1m 455% 182.5bn 545% Trade Finance Management 7.7k 16% 23.6bn 5% Corporate Payment Services 68k 11% 8.9b
Slide 13: Financial Inclusion
STRATEGY 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 alo
Slide 14: Financial Inclusion
STRATEGY FINANCIAL INCLUSION Financial inclusion business evolution Q1 2024 vs. Q1 2023 Individuals Micro business Bedaya Saving- no. of accounts Smart wallet customer base Current & business- no. of accounts 31,460 1,633 1,162,274 94% 43% 814,100 242% 16,220 478 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2
Slide 15: Financial Inclusion: Literacy Activities & CBE Events
STRATEGY FINANCIAL INCLUSION Financial literacy activities & CBE Events • 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 and underbanked in addition to include them in th
Slide 16: ESG
SG ILA)
Slide 17: Our Sustainability Journey
STRATEGY OUR SUSTAINABILITY JOURNEY Environmental and Social Risk Environmental Supporter of the First Corporate 7-year USD 100 million Management Transparency by Sustainability First Task for Climate loan to finance a Green Bond System disclosing Department Sustainability Related Financial pipeline
Slide 18: Our Approach
STRATEGY OUR APPROACH CIB Sustainable Finance Institutional Pillars International Standards and Guidelines Sustainability Global Reporting UN Global Net-Zero Banking Accounting Initiative Compact Standards Board Alliance CIB Sustainable Finance Policy Climate Target Published in 2021 and currently u
Slide 19: ESG Governance
STRATEGY 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
Slide 20: Climate Change Governance
STRATEGY CLIMATE CHANGE GOVERNANCE Board of Directors Board Board Risk Committee Board Sustainability Committee Board Audit Committee Oversight Chief Executive Officer and Managing Director Executive Sustainable Finance Steering Committee Management Oversight Member Member Chief Risk Officer Chief S
Slide 21: Environmental, Social and Climate Risk
STRATEGY 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 thei
Slide 22: Corporate Governance
STRATEGY 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 ▪ Internal policies, risk controls, and manuals have been put
Slide 23: Corporate Governance: Board of Directors
STRATEGY CORPORATE GOVERNANCE CIB’s Board consists of 11 members; 10 are non-executive, 7 are independent and 2 representing the interests of Alpha Oryx Ltd* Board of Directors ▪ The Board enjoys significant diversity, leadership, skills, Michael-Jay Fadhel Hisham Paresh Al Ali operating experience
Slide 24: Risk Management
VAIL RISK MANAGEMENT
Slide 25: Risk Governance and Risk Appetite
RISK MANAGEMENT Risk Governance – Three Lines Model Risk Appetite Risk Appetite is an integral component of CIB’s ERM framework as a governance and monitoring tool in evaluating the Bank’s risks. It covers all material risks (financial and non-financial) including its policies, processes, controls,
Slide 26: Financial Performance
VAIL FINANCIAL PERFORMANCE
Slide 27: Income Statement Highlights
FINANCIAL PERFORMANCE INCOME STATEMENT HIGHLIGHTS Standalone Profit and Loss 1Q24 4Q23 QoQ 1Q23 YoY NET INCOME MOVEMENT (EGP million) Change Change Net Interest Income 18,760 15,160 24% 10,832 73% EGP million Non-Interest Income 3,070 1,184 159% 1,192 158% 7,928 Net Operating Income 21,830 16,344 34
Slide 28: Loans and Advances
FINANCIAL PERFORMANCE LOANS AND ADVANCES GROSS LOANS 314 MAR-24 GROSS LOAN CORPORATE LOAN PRODUCTS COMPOSITION Other Corporate Loans, 1% Corporate 266 65 Overdraft, 252 255 244 Individual, 25% 60 21% 53 57 53 EGP EGP billion 66bn Syndicated Loans, 27% 249 191 199 198 206 EGP 249bn Corporate Direct L
Slide 29: Customers' Deposits
FINANCIAL PERFORMANCE CUSTOMERS’ DEPOSITS DEPOSITS DEPOSIT MOVEMENT 792 DEPOSITS BREAKDOWN BY INTEREST NATURE 792 675 35.41 656 666 5.80 675 149 574 349 5.66 31.32 122 EGP billion 305 306 306 24.72 EGP billion EGP billion 284 792 1.37 24.29 638 548 444 351 360 369 675 290 Dec-23 Mar-24 Floating Inte
Slide 30: Net Interest Income / Non-Interest Income
FINANCIAL PERFORMANCE NET INTEREST INCOME/NON- NET INTEREST INCOME NET INTEREST INCOME NON-INTEREST INCOME 3YR CAGR: 3,070 18,760 51% 3YR-CAGR: 35% 225 1,565 10,832 1,027 1,192 EGP million 103 EGP million 36,544 6,603 1,059 1,212 5,676 590 19,730 2,350 494 677 10,121 11,812 979 511 519 132 (4,444) (
Slide 31: Cost Efficiency
FINANCIAL PERFORMANCE COST EFFICIENCY NON-INTEREST EXPENSES NON-INTEREST EXPENSE BREAKDOWN 2,840 COST EFFICIENCY 2,840 23.5% 20.3% 21,830 2,005 1,246 16.7% EGP million 1,473 1,545 13.0% 868 12,024 2,005 671 665 7,629 1,594 6,267 1,137 1,545 802 880 1,473 (1,473) (1,545) (2,005) (2,840) Mar-21 Mar-22
Slide 32: Provisions and Coverage
FINANCIAL PERFORMANCE PROVISIONS AND COVERAGE IMPAIRMENT CHARGES NPL COVERAGE RATIO COST OF RISK FOR 1,482 307% DIRECT FACILITIES 58 55 948 279% EGP million 758 45 702 Basis Points 464 121 (41) 32 233% 218% (3) Mar-21 Mar-22 Mar-23 Mar-24 Impairment Charge for Credit Losses Other Provisions Mar-21 M
Slide 33: Capital and Liquidity
FINANCIAL PERFORMANCE CAPITAL AND LIQUIDITY RISK-WEIGHTED ASSETS CAPITAL BASE CAPITAL ADEQUACY RATIO 485 122 26.2% 25.2% 100 24 4.28% 21.4% 4.93% 91 19.3% 83 16 19.0% 3.52% 439 75 15 3.53% 3.48% EGP billion 15 427 14 EGP billion 22.0% 20.3% 98 17.9% 76 84 15.8% 15.5% 62 68 391 382 Mar-23 Jun-23 Sep-
Slide 34: Position Among Peers
FINANCIAL PERFORMANCE POSITION AMONG PEERS* Total Assets Net Income ROAE Capital Adequacy EGP Billions EGP Millions CIB 28,768 HSBC 46.9% ALEX 31.4% CIB 833 QNBA 15,770 CAE 42.1% HSBC 27.0% QNBA 621 CIB 36.4% CIB 26.2% AAIB 538 HSBC 12,276 ALEX 28.8% QNBA 25.1% HSBC 248 AAIB 7,034 AAIB 20.4% ALEX 16
Slide 35: Market Share
INVESTOR RELATIONS MARKET SHARE 6.93% 6.84% 6.81% 6.80% 6.74% 6.72% 6.71% 6.70% 6.64% 6.23% 6.12% 6.09% 5.65% 5.51% 5.46% 5.44% 5.40% 5.25% 5.08% 4.97% 4.99% 4.98% 4.90% 4.87% Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Total Loans Total Deposits Total Loans T
Slide 36: Awards
INVESTOR RELATIONS AWARDS 2024 Global Finance Best EUROMONEY EUROMONEY FX bank in Egypt Corporate Banking Best Bank in Egypt 2024 Global Finance Best Bank for EUROMONEY Sustainable Finance in EUROMONEY Best Digital Bank in Emerging Markets for Digital Solutions Egypt 2024 Africa 2024 Global Finance
Slide 37: Thank You
INVESTOR RELATIONS THANK YOU For more information, please visit our website; www.cibeg.com Investor Relations contacts: Headquarters: Customer Service Hotline: CIB.InvestorRelations@cibeg.com Nile Tower Building 21/23 Charles De Gaulle St., 19666 Giza P.O Box 2430 Cairo Egypt 37
Slide 38: Thank you
Thank you
Commercial International Bank (CIB) — Q1 2024 Earnings Presentation on 6ix