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. — Q1 2022 Earnings Presentation
46 slides from Commercial International Bank - Egypt (cib) S.a.e's earnings presentation, 2022
Slide 1: Investor Relations Presentation Q1 2022
Investor Relations Presentation Q1 2022
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
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 105.93 mn* Median age 24.1** Participation rate (Labor force / population) 43.8*** Unemp
Slide 6: Macro Environment
MACRO ENVIRONMENT Real GDP Growth* (%) Inflation (%) Reform-led boom Global financial 6.3% 7.1% 7.2% crisis 6.0% 4.9% 5.2% 5.8% Post-uprising 2.7% 4.0% 4.6% 4.5% turmoil 5.3% 5.1% 3.8% 3.9% 5.1% 2.5% 3.9% 3.4% 3.6% 3.7% 3.7% 4.7% 1.9% 1.9% 3.3% 3.3% 1.5% 1.0% 3.6% 3.4% 7.2% 0.7% 0.8% 7.3% 6.6% 6.3%
Slide 7: Sustainable FCY Resources
SUSTAINABLE FCY RESOURCES Foreign Inflows (USD mn) Petroleum and Suez Canal Proceeds (USD mn) 6,753 31,425 32,584 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 11,347 (421) (7) (404) 9,804 9,859 7,933 7,720 8,236 7,453 6,660 4,380 4,862 5,214 (3,474) (3,619) (3,717)
Slide 8: Egypt's Banking Sector
EGYPT’S BANKING SECTOR Total loans (EGP bn) Total deposits (EGP bn) LDR (%) 6,451 3,032 2,856 5,751 4,701 2,180 49% 50% 47% 4,007 46% 44% 47% 45% 46% 46% 1,840 41% 41% 3,570 1,619 1,418 3,043 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 19/20 20/2
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 16,962 173,401 14,152 12,656 11,754 10,701 9,031 98,049 7,855 6,870 79,952 6,283 72,503 68,630 5,489 64,349 4,953 55,876 51,384 45,716 40,046 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
VAIL ABOUT CIB
Slide 12: CIB's Shareholders
CIB’s SHAREHOLDERS 1975 1981 2006 2009 2014 Free Float (93.5%) Fairfax (6.5%)* NBE (51%) and Commercial Consortium led Actis Fairfax Financial Chase Manhattan International Bank by Ripplewood Holdings* Bank (49%) Actis sold 2.6% in open RW led consortium market in March Following Chase Acquired NBE
Slide 13: CIB Key Milestones
CIB KEY MILESTONES • Concludes 1st • 1st Egyptian • Selected by the • 1st bank to & largest Euro bank to IATA to act as connect with the syndicated loan register on the BSP agent international (USD 200 mn) NYSE; ADR in Egypt, and SWIFT network • 1st private Level 1 remains the sector bank with • 1st
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 Middle East and Africa, company listed on Bond Issuance in to establish a recognize conduct risk CIB was awarded 2019 Bloomberg Egypt Sustainable and establis
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: 37% Ownership: 30% Ownership: 14.99% Established in October TCA Properties is an SPV under Talaat Moustafa Group Profile: Offers a full suite of Profile: an “Agent Bank” financial 1996 as a joint stock security services; company, ACE has a long established
Slide 17: Our Presence in Egypt
OUR PRESENCE IN EGYPT Distribution Network Total Branches and Units: 213 Greater Cairo:126 Alexandria Region: 32 Suez Canal Region: 22 Delta Region: 18 Upper Egypt Region: 15
Slide 18: Awards & Recognition
AWARDS & RECOGNITION The World’s Best World's Best Trade Finance Foreign Exchange Providers in Providers 2022 – 2022 Egypt for 2022 – Global Finance Global Finance Best Treasury & Best Trade Best Best Bank for Best Bank for Cash Best Bank Transaction Cash Management- Finance Payment Management in Eg
Slide 19: Strategy
STRATEGY
Slide 20: Our Strategy
OUR STRATEGY Quality loan growth, with focus on increasing product penetration and SoW Deposit growth, specially from households Positioned as trade finance hub for Egypt & Africa Transactional banking services Focus on SMEs & underpenetrated retail banking segment with Financial more efforts
Slide 21: CIB Digital Transformation
CIB DIGITAL TRANSFORMATION* 23.3m EGP 258.6bn EGP 1.3bn No.of transactions Value of transactions Cost Synergy 🔺 3% y-o-y 🔺 51% y-o-y 🔺 30% 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
5 BUSINESS VAIL
Slide 24: Lines of Business
LINES OF BUSINESS 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 and Foc
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 - 2018 2019 2020 2021 2022
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 1,982,513,360 High EGP 54.00 Par value EGP 10.00 Low EGP 41.00 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 2010 2013 2014 2015 2016 2017 2018 2019 2020 2021 CIB Foundation *Carbon Footprint Sustainability Bank wide Energy First Sustainability FTSE4Good Report Founding Signatory Bloomberg Gender Supporter of the First Corporate Department Efficiency Project* Report Constituent & of the Principl
Slide 31: 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 Committee, Sustainable Finance Department and First Bank in the MENA to receive the
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 carries on with its mandate to continuously improve the overall corporate governance framework by regularly reviewing and supervising the Bank’s
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
Slide 34: 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 35: 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 36: 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 37: Cyber & Information Security
CYBER & INFORMATION SECUIRTY 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 38: Financial Performance
5 FINANCIAL PERFORMANCE VAIL
Slide 39: Performance Snapshot: 1Q22
PERFORMANCE SNAPSHOT: 1Q22 Key Indicators 1Q22 Comparison Commentary REVENUES EGP 7.77bn EGP 6.27bn; 1Q21 18% YoY Profitability NPAT EGP 4.24bn EGP 2.87bn; 1Q21 48%YoY ROAE 25.3% 19.3%; 1Q21 31% YoY ROAA 3.32% 2.63%; 1Q21 26% YoY Efficiency NIM** 5.66% 5.67%; 1Q21 0% YoY COST/INCOME 18.4% 23.1%; 1Q2
Slide 40: Position Among Peers
POSITION AMONG PEERS Total Assets (EGP bn) Net Income (EGP mn) Gross Loans/Deposits CAE 60 CAE 1,592 HSBC 34.2% ALEX 115 ALEX 2,750 CIB 40.2% HSBC 132 HSBC 3,401 ALEX 56.6% QNBA 354 QNBA 7,452 QNBA 62.4% CIB 13,420 CAE 64.2% CIB 497 ROAE ROAA Deposits Market Share QNBA 2.3% 7.5% QNBA 17.8% 6.3% ALEX
Slide 41: Performance Snapshot: Funding Overview
PERFORMANCE SNAPSHOPT: FUNDING OVERVIEW Funding Structure Due to Customers (95.10%) Other Liabilities (2.70%) Due to Banks (0.83%) Other Term Loans (1.37%) Customer Deposit Mix Demand (35.21%) CDs (24.74%) Savings (20.44%) TDs (19.61%) CIB’s funding structure has no wholesale funds
Slide 42: 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% 6.72% 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% 6.30% 7.0% 7.0% 7.
Slide 43: 10-Year Performance Summary
10 – YEAR PERFORMANCE SUMMARY 3.26% 500 53% 60% 600,000 2.93% 3.03% 3.50% 2.94% 2.95% 2.71% 2.69% 2.72% 3.00% 43% 50% 500,000 2.51% 2.53% 400 40% 39% 37% 37% 35% 37% 35% 36% 498,236 267,544 2.50% 40% 400,000 300 407 427,842 179,500 2.00% 304 251 30% 341 386,742 285 232 143,813 146 300,000 342,461 11
Slide 44: Why CIB?
WHY CIB? Profitability NPAT EGP 4.24bn Revenues EGP 7.77bn Highly skilled and Prominent Board of A diverse and experienced Directors inclusive Management Team workforce Asset Quality Direct Coverage Ratio NPL/Gross loans 4.89%* 218%* KPIs Cost/income ROAA 3.32% ROAE 25.3% 19.6% Largest in…** Strong
Slide 45: 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 46: Thank You.
Thank You.
Commercial International Bank - Egypt (CIB) S.A.E. — Q1 2022 Earnings Presentation on 6ix