Commercial International Bank - Egypt (cib) S.a.e. · EGX:COMI
Commercial International Bank - Egypt (cib) S.a.e — Commercial International Bank - Egypt (CIB) — Q4 2021 Earnings Presentation
45 slides from Commercial International Bank - Egypt (cib) S.a.e's earnings presentation, 2022
Slide 1: Investor Relations Presentation Q4 2021
INVESTOR RELATIONS PRESENTATION Q4 2021 CIB Annual Report 2020 is available on our website here
Slide 2: Table of Contents
TABLE OF CONTENTS Macroeconomic Overview …. 4 About CIB …. 11 Strategy… 19 Business … 23 CIB Stock … 27 ESG … 29 Financial Performance … 38
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
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 102.99 mn* Median age 24.1** Participation rate (Labor force / population) 41.9*** Unemp
Slide 6: Macro Environment
MACRO ENVIRONMENT Real GDP Growth* (%) Inflation (%) Reform-led boom Global financial 4.9% 5.2% 5.8% 7.1% 7.2% 4.6% 4.5% crisis 2.7% 4.0% Post-uprising turmoil 2.5% 3.9% 3.8% 3.9% 3.6% 3.7% 3.7% 3.4% 5.1% 5.3% 5.1% 1.9% 1.9% 3.3% 3.3% 4.7% 1.5% 1.0% 3.4% 3.6% 7.2% 0.7% 0.8% 6.6% 6.3% 2.9% 2.5% 5.9%
Slide 7: Sustainable FCY Resources
SUSTAINABLE FCY RESOURCES Foreign Inflows (USD mn) Petroleum and Suez Canal Proceeds (USD mn) 31,425 5,362 5,707 5,731 5,806 5,911 5,122 4,945 26,393 27,758 25,151 21,816 8 12,571 9,804 9,859 (421) (7) 7,933 7,720 8,236 7,453 4,380 4,862 5,214 (3,474) (3,619) (3,717) (5,426) 16/17 17/18 18/19 19/20
Slide 8: Egypt's Banking Sector (Cont'd)
EGYPT’S BANKING SECTOR (Cont’d) Total loans (EGP bn) Total deposits (EGP bn) LDR (%) 6,191 2,940 5,751 2,856 49% 50% 47% 46% 46% 47% 46% 44% 45% 4,701 41% 41% 2,180 4,007 1,840 3,570 1,619 3,043 1,418 2,123 937 1,740 503 545 584 714 1,027 1,191 1,434 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 1
Slide 9: Egypt's Banking Sector (Cont'd)
EGYPT’S BANKING SECTOR (Cont’d) Total # of branches Total # of ATMs Total # of POS 4,601 4,577 4,451 4,155 4,009 3,882 3,766 3,710 3,651 3,610 3,573 173,401 16,962 14,152 12,656 11,754 10,701 98,049 9,031 79,952 72,503 7,855 68,630 64,349 6,870 55,876 6,283 51,384 45,716 5,489 40,046 4,953 32,911 10
Slide 10: Why Egypt?
WHY EGYPT? Economic Environment Attracts Investments Among the most diverse in the MENA region Low labor costs Cheap, abundant, and diversified energy sources Middle East’s largest private medical city Political Stability Dabaa Nuclear Power Plant Benban Solar Park, set to be the largest solar plant
Slide 11: About CIB
ABOUT CIB
Slide 12: CIB's Shareholders
CIB’s SHAREHOLDERS NBE (51%) Commercial Consortium Fairfax and Chase 1975 Manhattan 1981 Internationa 2006 led by 2009 Actis 2014 Financial l Bank Ripplewood Holdings* Bank (49%) Following Chase Acquired NBE RW led Actis sold 2.6% in Chase National Manhattan remaining consortium open market in Bank;
Slide 13: CIB Key Milestones
CIB KEY MILESTONES • Selected by • 1st bank to • Concludes 1st • 1st Egyptian the IATA to act connect with & largest Euro bank to register on as the BSP the syndicated loan NYSE; ADR Level 1 agent in Egypt, international (USD 200 mn) • 1st bank to and remains SWIFT • 1st private introduce FX the sol
Slide 14: CIB Key Milestones (Cont'd)
CIB KEY MILESTONES (Cont’d) • • For the 1st time in the • 1st Arab and African • 1st Corporate Green 1st Egyptian bank • 1st bank in Egypt to to establish a Middle East and Africa, CIB company listed on 2019 Bond Issuance in recognize conduct risk Sustainable was awarded “World’s Best Bloomberg Gend
Slide 15: CIB Subsidiaries
CIB SUBSIDIARIES Ownership: 99.9% Ownership: 51% Ownership: 49.95% Established in 2018, CVentures is Egypt’s Mayfair CIB Bank Limited is a Kenyan Damietta Shipping and Marine Services first corporate venture capital firm focused banking institution serving small and (DSMS) is a shareholding company,
Slide 16: CIB Associates
CIB ASSOCIATES Ownership: 39.34% Ownership: 30% Ownership: 14.99% Ownership: 37% Established in October 1996 as a Profile: Offers a full suite of Profile: an “Agent Bank” financial TCA Properties is an SPV under joint stock company, ACE has a security services; services; Talaat Moustafa Group long t
Slide 17: Our Presence in Egypt
OUR PRESENCE IN EGYPT Distribution Network Total Branches and Units: 215 Greater Cairo:128 Alexandria Region: 32 Suez Canal Region: 22 Delta Region: 18 Upper Egypt Region: 15
Slide 18: Awards & Recognition
AWARDS & RECOGNITION 2021 Best Treasury & Best Trade Cash Management Finance Provider Best Bank in Egypt Providers in Egypt in Egypt – Global – Global Finance - by Global Finance Finance Best Bank for Best Bank for Cash Best Transaction Payment Services Banking - The Management- The -The Digital Ba
Slide 19: Strategy
STRATEGY
Slide 20: Our Strategy
OUR STRATEGY Today Tomorrow Quality loan growth, • Positioned as trade finance hub for Egypt & Africa Deposit growth, Financial with focus on specially from Transactional banking • Focus on SMEs & underpenetrated retail banking segment increasing product services • Capture the pent-up CAPEX and inve
Slide 21: CIB Digital Transformation
CIB DIGITAL TRANSFORMATION (YTD Dec 2021) 97.1m EGP 861bn EGP 4.2bn No.of transactions Value of transactions Cost Synergy 🔺 19% y-o-y 🔺 61% y-o-y 🔺 33% y-o-y Digital Banking Channels Global Transaction Banking Products Growth Vs YTD Growth Vs YTD Growth Vs YTD Growth Vs YTD Channel Transactions…
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
BUSINESS
Slide 24: Lines of Business
LINES OF BUSINESS Profile Institutional Banking Consumer Banking • Market leader • The take-off for a world class consumer banking Profile • Prime contributor to profitability franchise • Large and medium-size corporates (MNCs, institutions and banks) • Retail customers (with special focus on Wealth
Slide 25: Lines of Business - Business Banking
LINES OF BUSINESS - BUSINESS BANKING Covers all SMEs sectors across Egypt through over 85 highly trained Serves SMEs through a comprehensive range of financial solutions Relationship Managers serving medium segment & 140 Growth Bankers serving small segment 2010 2011 2013 2015 2016 2017 2018 2019 20
Slide 26: 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 Stable *** B2 NP Stable B3 NP Positive **** B+ B Stable B B Positive * According to the latest report as of August 2021 ** According to the latest
Slide 27: CIB Stock
CIB STOCK
Slide 28: 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 1,970,241,790 High EGP 54.15 Par value EGP 10.00 Low EGP 36.53 Listed London Stock Exchange (LSE) CBKD GDR convertibility 1:1 Traded OTCQX Int’l Premier (Level
Slide 29: ESG
ESG
Slide 30: ESG at CIB
ESG AT CIB 2015 2016 2017 2018 2019 2020 2021 *Carbon Footprint Founding Signatory Supporter of the Report Bloomberg Gender Sustainability Bank wide Energy First Sustainability FTSE4Good of the Principles for Task for Climate First Corporate CIB Foundation *Environmental & Equality Index Department
Slide 31: ESG at CIB
ESG AT CIB Environment Society Governance First Corporate Green Bond in Egypt A strong ESG governance structure: Sustainability 30% of total workforce are women Board Committee, Sustainable Finance Steering Committee, Sustainable Finance Department and Green Loans for corporate customers to First Ba
Slide 32: Corporate Governance
CORPORATE GOVERNANCE Commitment to Sound Corporate Governance Practices Continues to Define CIB This commitment is supported by several mandates: The Board’s main responsibilities include: Internal policies, risk controls, and manuals have been put in place to ensure Setting the Bank’s overall strat
Slide 33: 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 charte
Slide 34: Business Continuity & Resilience Management
BUSINESS CONTINUITY & RESILENCE MANAGMENT 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 provides
Slide 35: Response to COVID-19
RESPONSE TO COVID-19 Work from Home Arrangements • Laptops, Secure Remote Access, and Secured email access on mobile phones have been arranged for different bank departments Vaccination • CIB availed local medical center for employees & their families and conducted 27 vaccination rounds in CIB premi
Slide 36: Cyber & Information Security
CYBER & INFORMATION SECUIRTY Initiatives Strong Security Governance & policies aligned with International Standards and Best CIB continues to invest in further Practices improving its Cyber & Information Security capabilities to continuously Certified Payment Cards Industry – Data Security Standards
Slide 37: Financial Performance
FINANCIAL PERFORMANCE
Slide 38: Performance Snapshot: 4Q21
PERFORMANCE SNAPSHOT: 4Q21 Key Indicators 4Q21 Comparison Commentary REVENUES EGP 6.93bn EGP 6.58bn; 4Q20 5% YoY Profitability NPAT EGP 13.3bn EGP 10.2bn; 4Q20 30%YoY ROAE 20% 20.4%; 4Q20 -1.96% YoY ROAA 2.72% 2.75%; 4Q20 -1.01% YoY Efficiency NIM** 5.68% 6.4%; 4Q20 -11.25% YoY COST/INCOME 22.4% 20.
Slide 39: Position Among Peers
POSITION AMONG PEERS Total Assets (EGP bn) Net Income (EGP mn) Gross Loans/Deposits EGP Billions EGP Millions CAE 57 CAE 1,167 CIB 39.0% ALEX 110 AAIB 1,707 HSBC 40.9% HSBC 126 ALEX 2,049 AAIB 55.5% AAIB 227 HSBC 2,478 ALEX 56.8% QNBA 331 QNBA 5,694 QNBA 65.2% CIB 491 CIB 9,895 CAE 66.3% ROAE ROAA D
Slide 40: Performance Snapshot: Funding Overview
PERFORMANCE SNAPSHOPT: FUNDING OVERVIEW Funding Structure Due to Customers (94.94%) Other Liabilities (1.89%) Due to Banks (0.2%) Other Term Loans (1.2%) Customer Deposit Mix Demand (33.34%) CDs (25.32%) Savings (21.44%) TDs (19.89%) CIB’s funding structure has no wholesale funds
Slide 41: Market Share
MARKET SHARE 8.4% 8.5% 8.6% 8.3% 8.4% 8.4% 8.4% 8.4% 8.1% 8.0% 8.1% 8.1% 7.8% 7.7% 7.5% 7.63% 8.2% 8.2% 7.5% 7.47% 7.46% 7.41% 7.3% 7.9% 7.9% 8.2% 8.0% 7.9% 7.19% 7.00% 6.92% 7.6% 6.78% 6.74% 6.69% 6.76% 7.4% 7.3% 7.4% 6.56% 6.54% 6.49% 6.62% 6.67% 6.63% 6.63% 7.2% 7.2% 7.1% 7.0% 7.0% 7.0% 6.98% 6.7
Slide 42: 10-Year Performance Summary
10 – YEAR PERFORMANCE SUMMARY 500 53% 60% 3.26% 400 43% 50% 600,000 2.93% 3.03% 3.50% 40% 39% 2.94% 2.95% 37% 37% 35% 37% 35% 36% 2.71% 2.69% 2.72% 3.00% 40% 500,000 2.51% 2.53% 300 407 304 251 30% 498,236 341 285 267,544 232 2.50% 146 400,000 200 120 120 106 427,842 179,500 20% 155 2.00% 386,742 88
Slide 43: Why CIB?
WHY CIB? Profitability A diverse and NPAT EGP 13.3bn Revenues EGP 26.7bn Highly skilled and Prominent Board of experienced Directors inclusive Management Team workforce Asset Quality Direct Coverage Ratio NPL/Gross loans 5.12%* 213%* KPIs Cost/income ROAA 2.72% ROAE 20% 24.5% Largest in…** Strong br
Slide 44: 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: Nile T
Slide 45: Thank You
THANK YOU CIB THE BANK TO TRUST
Commercial International Bank - Egypt (CIB) — Q4 2021 Earnings Presentation on 6ix