Commercial International Bank - Egypt (cib) S.a.e. · EGX:COMI
Commercial International Bank - Egypt (cib) S.a.e — Commercial International Bank - Egypt (CIB) — Q1 2014 Earnings Presentation
41 slides from Commercial International Bank - Egypt (cib) S.a.e's earnings presentation, May 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: 86.4mn¹ Current A/C balance: $ -1512.8mn** Median age: 25² Net International reserve: $17.4bn (March 2014) Private consumption/GDP: 86.74%** LT external debt: $42.9bn*** Public consumption/GDP: 11%** ST external debt: $2.8bn*** Labor force/population: 32.7%* 80% of debt
Slide 6: Egypt Fact Sheet (Cont'd)
Egypt Fact Sheet (Cont’d) Diversified as % of GDP¹ Favorable Demographics² 18,000,000 0.40% 2.59% 16,000,000 2.77% 1.23% 14,000,000 3.75% 12,000,000 3.94% 25.79% 10,000,000 5.42% 8,000,000 6,000,000 5.91% 4,000,000 2,000,000 9.11% 0 0-14 yrs 15-24 yrs 25-54 yrs 55-64 yrs 65 yrs + 14.23% Males Female
Slide 7: Macroeconomics Snapshot
Macroeconomics Snapshot GDP Growth* Inflation (%) 20% 18.3% 8% 7.2% 7.1% 15% 13.5% 6% 5.1% 4.7% 11.7% 10.3% 9.82% 9.6% 4% 10% 6.9% 2.2% 2.1% 1.9% 4.7% 2% 5% 1.0% 0% 0% 06/07 07/08 08/09 09/10 10/11 11/12 12/13 Q1 13/14 2007 2008 2009 2010 2011 2012 12/13 March 2014 Sovereign Debt FDI (USD mn) 100% 8
Slide 8: Egyptian Banking Sector Snapshot
Egyptian Banking Sector Snapshot Total Loans Total Deposits Loans to Deposits ratio 556 1,342 545 503 1,191 464 471 60% 1,027 58% 427 399 965 53% 52% 52% 382 900 49% 49% 344 820 46% 756 41% 658 571 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 Feb‐14 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13
Slide 9: Challenges Facing Egypt
Challenges Facing Egypt Slow improvement in standards of living¹ UNDP Human Development Index: Score of 0.662, ranking 112/187 Population Below Poverty Line: 20% Low quality health care services¹ 4.7% of GDP spent on health care services Lack of educational reforms¹ 3.8% of GDP spent on education Ea
Slide 10: Prospects for Banking Environment
Prospects for Banking Environment Economic gradual pick up* Pent up demand for asset products Increased investments by businesses and several PPP projects in the pipeline Low retail banking penetration Only 10% of the population is banked Untapped opportunities in the growing SME sector Integration
Slide 11: About CIB
Slide 12: Strategic Milestones
Strategic Milestones Strategic Chase Divestiture: First GDR subsidiaries Ripplewood led Actis Sold Renamed CIB US$ 120M established consortium divested 2.6% in open 22.2% of share to complement our half of its holdings market in March capital core business in CIB to Actis 1975 1987 1993 1996 1998 20
Slide 13: CI Group Structure
Cl Group Structure oe EGYPT FACTORS YPT FACTORS CORPLEASE CAPITAL ALEIB croup member CAPITAL BCAPITAL CAPITAL [asa | Ca Giskes
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 Descrip�on profitability banking franchise wholly owned by CIB Large Corporates Retail customers (with including MNCs, special f
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 33,984mn GDR R
Slide 16: Shareholding Structure
Shareholding Structure Free Float Breakdown by region 6.50% 4% 3% 14% 35% 16% 29% North America Africa 93.50% UK & Ireland GCC Con�nental Europe Rest of the World Free Float Breakdown by category 14.47% Free Float Fairfax Financial Holdings Ltd (“Fairfax”) 85.38% %s represents ordinary shares Indivi
Slide 17: Funding Overview
Funding Overview Funding Structure Customers Deposits Mix 4.18% 0.81% 0.13% 1.34% 18.05% 30.45% 94.88% 24.11% 26.05% Due to Customers Other Liabili�es 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 15.3% from Continuous Growth Affiliates shop” 2009 till 2013 Highly skilled Highly reputable group leading Experienced Strongest brand among all banks management team equity in market in Egypt the Bank Acted as a Conservati
Slide 19: Distribution Network
Distribution Network Total Outlets 153 Alternate Channel Cairo 87 Distribution: Alex. 23 ATMs 560 Delta 7 POS 8,693 Sina & Canal 18 On-line Banking hits per month: N/A Call Center: 174.8k hits per month through our 24 hours 7 days a week dedicated Customer Service short number 19666 Upper Egypt & Re
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 our It has been demonstrated over and over that list of priorities effective corporate governance in banks CIB was the first Egyptian corporation to establis
Slide 22: Board of Directors
Board of Directors The Board and each of its commi�ees are governed by well‐ Audit Commi�ee defined charters that sets out its responsibili�es and composi�on requirements CIB’s Board consists of 7 members, 6 of which are Non‐Execu�ve Corporate Governance & Compensa�on Commi�ee with a range of industr
Slide 23: BOD composition as of 19/5/2014
BOD composition as of 19/5/2014 23
Slide 24: CIB Financial Highlights
Slide 25: Performance Snapshot: March 2014
Performance Snapshot: 31 March 2014 Total Assets Net Loans Customer Deposits Shareholders’ Equity EGP 120,189mn EGP 42,513mn EGP 102,721mn EGP 11,881mn Year‐End 2013: EGP 113,752mn Year‐End 2013: EGP 41,866mn; Year‐End 2013 : EGP 96,846mn; Year‐End 2013: EGP 11,960mn; 5.66% QoQ 1.50% QoQ 6.07% QoQ ‐
Slide 26: Historical Performance
Historical Performance 2.09% oe T9449 27,977 30,38' 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2005 2006 2007 2008 2009 2010 + «©2011+«2012'~=S«2013 lm Total Assets (EGP mn) —e—ROAA% (eeefNet Loans(EGP bn) mmm Deposits (EGP bn) = -eNet Loans/Deposits 15.6% laa Bild fad ood Gied Lael oad ead D
Slide 27: Peer Analysis – Year end
Peer Analysis –Year end 114 Total Assets EGP Billions Net Income EGP Millions Cost to Income 51.18% 2,615 120 2,800 50% 38.93% 42.24% 2,400 81 1,740 40% 2,000 30.29% 80 64 26.55% 26.63% 59 1,600 30% 41 1,049 1,200 891 29 661 643 20% 40 800 10% 400 0 0 0% CIB NSGB AAIB HSBC Alex CAE CIB NSGB AAIB HSB
Slide 28: Market Share Trend
Market Share Trend 10.00% 9.00% 8.77% 8.47% 8.52% 8.58% 8.52% 8.45% 8.24% 8.30% 8.32% 8.25% 8.28% 8.10% 8.22% 8.02% 8.00% 7.58% 7.22% 7.04% 7.67% 7.65% 6.70% 7.39% 7.48% 7.48% 7.51% 7.50% 7.00% 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 Feb‐10 Feb‐10 Apr‐10 Apr‐10 Jun‐10 Jun‐10 Aug‐10 Aug‐10 * As of February 2014 LCY Oct‐10 Oct‐10 Dec‐10 Dec‐10 Feb‐11 Feb‐11 Household Apr‐11 Apr‐11 Jun‐11 Household Jun‐11 Aug‐11 Aug‐11 LCY Oct‐11 Oct‐11 5.27% 6.90%
Slide 30: Consumer Banking Snapshot
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Slide 31: Assets Portfolio Growth
Assets Portfolio Growth Assets Assets Mix 8,600 100% 4,048mn 13% 10% 9% 9% 9% 9% 8% (103%) 90% 17% 7,600 10% 9% 9% 10% 10% 10% 80% 10% 12% 9% 8% 7% 8% 7% 10% 6,600 70% 10% 14% 27% 60% 31% 30% 27% 5,600 31% 30% 50% 31% 7,962 26% 4,600 7,073 7,210 7,305 7,182 40% 6,664 3,600 30% 5,175 49% 42% 43% 44%
Slide 32: Assets By Segment
Assets By Segment YoY Performance QoQ Performance 4,000 3,954 4,000 3,954 3,800 3,800 Wealth Segment 3,600 3,600 3,480 3,380 3,400 3,400 3,200 3,200 Mar‐13 Mar‐14 Dec. 2013 Mar‐14 3,000 2,831 3,000 2,831 2,000 2,000 Business Banking 1,000 612 1,000 575 0 0 Mar‐13 Mar‐14 Dec‐13 Mar‐14 472 600 500 472
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 financial needs
Slide 34: Business Banking vs. Consumer Banking
Business Banking vs. Consumer Banking Business Banking model has proved its success when compared to Consumer Banking approach in terms of overall performance Number of Companies Customer Deposits 10% 46% 54% 90% Business Banking Consumer Banking Consumer Banking Business Banking Customers Gross Con
Slide 35: CIB Strategy
Slide 36: Vision realization
Vision realization Where do we stand? Way forward Financial Positioned as trade finance Quality loan growth, Performance with focus on Aggressive deposit Transactional hub for Egypt growth, specially Drivers increasing product from households banking services penetration and SoW Focus on mortgage le
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 Started transformation to a stable and modern economy
Slide 39: Why CIB?
Why CIB? Profitability Liquidity Largest in … Asset Quality KPIs Market Total Assets leader EGP 120bn Loans and High liquidity NPAT EGP deposits 806mn NPL/Gross ROAA 2.77% market shares loans 4.58% Net LDR 41.4% Market Cap Total ROAE 28.5% EGP 33,984mn revenues Direct in private EGP 1.8bn Coverage C
Slide 40: Awards and Recognition
Awards and Recognition 2014 + *#$ ("(!$ ")$ $ "#' "*# #$!% !##" # !" &$ $#!"& %#" 0 Best Trade Finance Provider in Egypt by Global Finance for the 8th year. 0 Best Foreign Exchange Provider in Egypt by Global Finance for the 11th year 0 Best Investment Bank 2014 - by Global Finance 0 Best Bank in Eg
Slide 41: Thank you
Thank you For more informa�on, please visit www.cibeg.com Investor Rela�ons 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.co
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