Commercial International Bank - Egypt (cib) S.a.e. · EGX:COMI
Commercial International Bank - Egypt (cib) S.a.e — Commercial International Bank - Egypt (CIB) S.A.E. — Q4 2023 Earnings Presentation
49 slides from Commercial International Bank - Egypt (cib) S.a.e's earnings presentation, 2024
Slide 1: Investor Relations Presentation 4Q 2023
Investor Relations Presentation 4Q 2023
Slide 2: Table of Contents
TABLE OF CONTENTS Macroeconomic Overview … 04 About CIB …. 11 Strategy… 19 Business … 23 CIB Stock … 26 Risk Management … 29 ESG … 32 Financial Performance … 41
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: Macroeconomic Overview
VAIL MACROECONOMIC OVERVIEW
Slide 5: Egypt - Fact Sheet
EGYPT - FACT SHEET Country Profile Name Arab Republic of Egypt Capital Cairo Currency Egyptian Pound (EGP) Total area c.1,002,000 sqm.km Inhibited area 7.88% of total area Governorates 29 Demographics Population 106 mn* Median age 24.1** Participation rate (Labor force / population) 43%*** Unemploym
Slide 6: Macro Environment
MACRO ENVIRONMENT Real GDP Growth (%) Inflation (%) 40.38% 41%40.73% 39.74% 40.3% 39.5% 40.31% 38.10% 6.2% 38.6% 35.90% 34.20% 31.2% 5.1% 24.5% 21.5% 3.9% 19.0% 18.0% 16.7% 15.6% 14.6% 13.3% 11.9% 10.1% 37.98% 37.40% 6.3%7.2% 36.50% 35.80% 2.5% 32.7% 31.9% 32.70%36% 30.6% 34.60% 33.70% 2.0% 25.8% 21
Slide 7: Sustainable FCY Resources
SUSTAINABLE FCY RESOURCES Foreign Inflows (USD mn) Petroleum and Suez Canal Proceeds (USD mn) USD million USD millions 31,924 8,760 31,425 27,758 6,997 25,151 5,731 5,806 5,911 22,076 4,433 12,571 13,629 10,748 10,039 8 410 9,859 8,937 8,236 7,453 4,8625,214 (7) (421) 18/19 19/20 20/21 21/22 22/23 1
Slide 8: Egypt's Banking Sector
EGYPT’S BANKING SECTOR Total loans (EGP bn) Total deposits (EGP bn) LDR (%) Loan growth (%) Deposit growth (%) Banking Sector Ratios* Total # of banks: 37** Total bank lending facilities/GDP: 72.84% Corporate loans/GDP: 59.68% Household debt/GDP: 13.16% Loans/Deposits: 48.63% *As per the latest publ
Slide 9: Egypt's Banking Sector (Cont'd)
EGYPT’S BANKING SECTOR (Cont’d) Total # of branches Total # of ATMs Total # of POS 4,638 4,598 4,577 215,923 188,429 173,401 4,451 22,708 21,459 98,049 79,952 16,962 4,298 14,152 12,656 18/19 19/20 20/21 21/22 22/23 18/19 19/20 20/21 21/22 22/23 18/19 19/20 20/21 21/22 22/23 Total # of Debit Cards (
Slide 10: Why Egypt?
WHY EGYPT? Located in the northeastern corner of Africa, Egypt’s strategic location The introduction of “Meeza” prepaid card for governmental has always made it a hub for trade routes between Africa, Europe, and and local payments Asia, given its proximity to many European markets, being a gateway t
Slide 11: About CIB
VAIL ABOUT CIB
Slide 12: CIB's Shareholders
CIB’s SHAREHOLDERS 1975 1987 2006 2009 2014 2022 NBE (51%) and Commercial Consortium led Fairfax Financial ACTIS Alpha Oryx Ltd** Chase Manhattan International Bank by Ripplewood Holdings* Bank (49%) Actis sold 2.6% in open Acquired 18.6% in RW led consortium market in March Following Chase Acquired
Slide 13: CIB Key Milestones
CIB KEY MILESTONES *Awards include: Best Bank in Egypt Supporting Women Owned and Women Run Businesses by the American Chamber of Commerce in Egypt, Two awards in Achievement in Liquidity Risk and Operational Risk for Middle East & Africa by Asian Banker for 2016, Best Retail Risk Management Initiat
Slide 14: CIB Key Milestones
CIB KEY MILESTONES National Organization for Social Insurance acquired 5.24% of CIB *Awards include: Best Bank in Egypt Supporting Women Owned and Women Run Businesses by the American Chamber of Commerce in Egypt, Two awards in Achievement in Liquidity Risk and Operational Risk for Middle East & Afr
Slide 15: CIB Subsidiaries
CIB SUBSIDIARIES Ownership: 100% Ownership: 99.83% Ownership: 49.95% CIB Kenya Limited is a Kenyan banking institution Commercial International Finance Company (CIFC) Damietta Shipping and Marine Services (DSMS) is serving small and medium enterprises, large was established in June 2022 offering mor
Slide 16: CIB Associates
CIB ASSOCIATES Ownership: 39.34% Ownership: 37% Established in October 1996 as a joint stock TCA Properties is an SPV under Talaat Moustafa company, ACE has a long track record in the Group established through its subsidiary field of trading and maintenance of specialized Alexandria Company for Real
Slide 17: Our Presence in Egypt
OUR PRESENCE IN EGYPT Total Branches and Units: 208 Greater Cairo:124 Alexandria Region: 31 Suez Canal Region: 21 Delta Region: 17 Upper Egypt Region: 15
Slide 18: Awards and Recognition
AWARDS AND RECOGNITION Best Bank for Cash Best Trade Finance World’s Best Sub- Best Bank in Trade Services in North custodian Bank management (Egypt) Finance - MEED Africa – EMEA Awards 2023 – – Global Finance Finance Global Finance Best Private Bank – Best securitisation Best Bank for SMEs Best SME
Slide 19: Strategy
STRATEGY
Slide 20: Our Strategy
OUR STRATEGY TODAY TOMORROW Quality loan growth, with focus on increasing product penetration and SoW Upscaling CIB Kenya’s operations to cement the Bank’s position as trade finance Deposit growth, particularly from households clients hub for Egypt & Africa Financial Transactional banking serv
Slide 21: CIB Digital Transformation
CIB DIGITAL TRANSFORMATION* 150m EGP 2.4tn EGP 6.5bn No. of transactions Value of transactions Cost Synergy 🔺 52% y-o-y 🔺 100% y-o-y 🔺 34% y-o-y Digital Banking Channels: Global Transaction Banking Products: Growth Vs YTD Growth Vs YTD Growth Vs YTD Growth Vs Channel Transactions Subscribers…
Slide 22: CIB Presence in Africa
CIB PRESENCE IN AFRICA CIB aims to position itself as a trade finance hub for Egypt and East Africa, focusing on both corporate and SMEs, especially after the establishment of our representative office in Ethiopia and the acquisition of a 51% stake in a local Kenyan bank, which was renamed Mayfair C
Slide 23: Business
AIA a BUSINESS
Slide 24: Lines of Business
LINES OF BUSINESS Institutional Banking Retail Banking • Market leader • The take-off for a world class retail banking Profile • Prime contributor to profitability franchise • Large and medium-size corporates (MNCs, institutions • Consumer Banking (with special focus on Wealth and banks) and Plus) F
Slide 25: Lines of Business - Business Banking
Serves SMEs through a comprehensive range of financial solutions covering all SMEs sectors LINES OF BUSINESS - BUSINESS BANKING across Egypt through over 85 highly trained Relationship Managers serving medium segment & 140 Growth Bankers serving small segment 2010-2018 2019-2020 2021 2022 2023 Pilot
Slide 26: CIB Stock
CIB STOCK
Slide 27: Our Stock in a Nutshell
OUR STOCK IN A NUTSHELL STOCK EXCHANGES TICKER SHARE INFORMATION 52 WEEKS PERFORMANCE Listed Egyptian Exchange (EGX) COMI Shares outstanding 3,019,501,000 High EGP 84.06 Par value EGP 10.00 Low EGP 41.25 Listed London Stock Exchange (LSE) CBKD GDR convertibility 1:1 Traded OTCQX Int’l Premier (Level
Slide 28: Credit Rating
CREDIT RATING Credit Rating Current Rating Previous Rating LT FCY ST FCY Outlook LT FCY ST FCY Outlook * B- B Stable B B Negative ** B- B Stable B B Negative *** B B Stable B+ B Stable **** Counterparty Risk Rating Bank Deposits Outlook Counterparty Risk Rating Bank Deposits Outlook B3/NP Caa1/NP Ne
Slide 29: Risk Management
a RISK MANAGEMENT VAIL
Slide 30: CIB Risk
CIB RISK ERM Framework Risk Governance – Three Lines Model Risk Group provides independent risk oversight and supports the Enterprise Risk The Bank has in place a robust governance framework that utilizes the Three Lines Management (ERM) framework across the organization. The group works to identify
Slide 31: CIB Risk (Cont'd)
CIB RISK (Cont’d) 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, and systems through which Risk appetite is estab
Slide 32: ESG
ESG
Slide 33: Our Sustainability Journey
OUR SUSTAINABILITY JOURNEY Environmental and Social Risk Environmental Supporter of the First Corporate Management Transparency by Sustainability First Task for Climate Green Bond 7-year USD 100 million System disclosing loan to finance Department Sustainability Related Financial Issuance in Egypt (
Slide 34: ESG at CIB
ESG AT CIB International Standards and Guidelines Sustainability Governance Recognition and Ratings Board Sustainability Committee Sustainable Finance Steering Committee Sustainable Finance Department0 Sustainability Strategic Network A 19.8 Medium Risk B (Management Level) More information is found
Slide 35: ESG at CIB (Cont'd)
ESG AT CIB (Cont’d) Environment Society Governance 30% of total workforce are women A strong ESG governance structure: Sustainability First Corporate Green Bond in Egypt Board Committee, Sustainable Finance Steering First Bank in the MENA to receive the Gender Committee, Sustainable Finance Departme
Slide 36: Corporate Governance
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 governance framework by regularly reviewing and • Internal policies, r
Slide 37: Board of Directors
BOARD OF DIRECTORS • The Board enjoys significant diversity, leadership, skills, operating experience and professionalism in a broad set of industries • Complying with best international practices, an independent Lead Director is appointed • The Board and its committees are governed by well-defined
Slide 38: Board of Directors
BOARD OF DIRECTORS Audit Committee Corporate Governance & Nomination Committee 9 committees assist in fulfilling the Board’s responsibilities; Non- performing, • The Board enjoys significant Written-off and involuntary Risk diversity, leadership, skills, investment Committee operating experience and
Slide 39: Business Continuity & Resilience Management
BUSINESS CONTINUITY & RESILIENCE MANAGEMENT Initiatives Pioneer in implementing international standards and best practices; established in 2010; ahead of all major players in the market CIB continues to invest in further improving its business continuity and recovery capabilities to ensure it provid
Slide 40: Cyber & Information Security
CYBER & INFORMATION SECURITY Initiatives Strong Security Governance & policies aligned with International CIB continues to invest in further Standards and Best Practices improving its Cyber & Information Security capabilities to continuously Certified Payment Cards Industry – Data Security Standards
Slide 41: Financial Performance
a FINANCIAL PERFORMANCE VAIL
Slide 42: Performance Snapshot: FY23
PERFORMANCE SNAPSHOT: FY23 Key Indicators FY23 Comparison (FY22) Commentary REVENUES EGP 56.0bn EGP 32.9bn 70% YoY NPAT EGP 29.6bn EGP 16.2bn 84% YoY Profitability ROAE 39.7% 25.1% 58% YoY ROAA 4.06% 2.86% 42% YoY NIM* 7.55% 6.1% 24% YoY Efficiency COST/INCOME 17.1% 21.2% -19% YoY TOTAL ASSETS EGP 8
Slide 43: Position Among Peers
POSITION AMONG PEERS (as of September 2023) EGP Billions Total Assets EGP Millions Net Income ROAE Captial Adequacy CIB 809 CIB 21,732 HSBC 48.1% ALEX 30.4% QNBA 584 QNBA 11,919 CAE 44.0% QNBA 23.7% AAIB 473 HSBC 8,783 CIB 40.0% HSBC 22.8% HSBC 228 AAIB 5,141 ALEX 31.9% CIB 21.4% ALEX 152 ALEX 4,004
Slide 44: Performance Snapshot: Funding Overview
PERFORMANCE SNAPSHOPT: FUNDING OVERVIEW Due to Customers (91%) Other Liabilities (2.46%) Other Loans (1.68%) Due to Banks (1.67%) Demand (37.74 %) CDs (27.88%) TDs (17.37%) Savings (15.89%) Funding Structure Customer Deposit Mix CIB’s funding structure has no wholesale funds
Slide 45: 10-Year Performance Summary
10 – YEAR PERFORMANCE SUMMARY 900,000 800 4.00% 50% 3.51% 43% 3.26% 700 40% 39% 45% 800,000 2.94% 3.03% 3.50% 37% 37% 37% 37% 2.93% 2.95% 2.86% 35% 35% 36% 35% 40% 700,000 2.71% 2.69% 2.72% 600 3.00% 2.53% 35% 600,000 500 834,866 2.50% 30% 635,832 677 294,782 500,000 267,544 400 2.00% 25% 532 498,23
Slide 46: Market Share
MARKET SHARE 6.93% 6.84% 6.81% 6.74% 6.72% 6.23% 6.24% 6.22% 6.18% 6.23% 6.13% 6.17% 6.12% 6.10% 6.09% 6.01% 5.84% 5.80% 5.84% 5.76% 5.65% 5.47% 5.51% 5.46% 5.40% 5.41% 5.43% 5.41% 5.44% 5.40% 5.33% 5.37% 5.35% 5.29% 5.25% 5.19% 5.04% 5.08% 5.00% 4.97% Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-2
Slide 47: Why CIB?
WHY CIB? Profitability A diverse and NPAT EGP 29.6bn Revenues EGP 56.0bn Highly skilled and Prominent Board of experienced Directors inclusive Management Team workforce Asset Quality Direct Coverage Ratio NPL/Gross loans 3.59%* 309%* KPIs Cost/income ROAA 4.06% ROAE 38.6% 17.0% Largest in…** Strong
Slide 48: Thank You
THANK YOU • For more information, please visit our website; www.cibeg.com • To read about the projects that the CIB Foundation has helped support, and to know ways in which you can donate, please visit www.cibfoundationegypt.org Investor Relations contacts: Headquarters: Customer Service Hotline: Ni
Slide 49: Thank You
Thank You
Commercial International Bank - Egypt (CIB) S.A.E. — Q4 2023 Earnings Presentation on 6ix