Commercial International Bank - Egypt (cib) S.a.e. · EGX:COMI
Commercial International Bank - Egypt (cib) S.a.e — Commercial International Bank - Egypt (CIB) — Q4 2022 Earnings Presentation
50 slides from Commercial International Bank - Egypt (cib) S.a.e's earnings presentation, 2023
Slide 1: Investor Relations Presentation Q4 2022
Investor Relations Presentation Q4 2022
Slide 2: Table of Contents
TABLE OF CONTENTS Macroeconomic Overview … 04 About CIB …. 11 Strategy… 20 Business … 24 Risk Management … 30 CIB Stock … 27 ESG … 33 Financial Performance … 42
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 104.6 mn* Median age 24.1** Participation rate (Labor force / population) 42.7*** Unempl
Slide 6: Macro Environment
MACRO ENVIRONMENT Real GDP Growth (%) Inflation (%) 19.0% 18.0% 16.7% 15.6% 6.2% 13.3% 14.6% 11.9% 5.1% 10.1% 7.2% 6.3% 5.2% 5.8% 6.0% 2.5% 16.2% 2.0% 14.6% 15.0% 13.1% 13.5% 13.2% 13.6% 10.5% 8.8% 6.3% 7.3% 5.6% 5.9% 18/19 19/20 20/21 21/22 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Ju
Slide 7: Sustainable FCY Resources
SUSTAINABLE FCY RESOURCES Foreign Inflows (USD mn) Petroleum and Suez Canal Proceeds (USD mn) 31,425 31,924 6,997 27,758 5,731 5,806 5,911 25,151 4,433 12,571 9,859 10,748 8,236 7,453 8,937 8 4,862 5,214 (421) (7) 18/19 19/20 20/21 21/22 18/19 19/20 20/21 21/22 Remittances (USD mn) Tourism Revenue (
Slide 8: Egypt's Banking Sector
EGYPT’S BANKING SECTOR Total loans (EGP bn) Total deposits (EGP bn) LDR (%) 50% 47% 3,490 3,618 7,372 7,835 46% 46% 46% 2,856 5,751 1,840 2,180 4,007 4,701 18/19 19/20 20/21 21/22 Sep-22 18/19 19/20 20/21 21/22 Sep-22 18/19 19/20 20/21 21/22 Sep-22 Loan growth (%) Deposit growth (%) Underleveraged 3
Slide 9: Egypt's Banking Sector (Cont'd)
EGYPT’S BANKING SECTOR (Cont’d) Total # of branches Total # of ATMs Total # of POS 188,429 173,401 4,598 4,628 21,459 4,577 16,962 98,049 12,656 14,152 79,952 4,451 11,754 4,298 17/18 18/19 19/20 20/21 21/22 18/19 19/20 20/21 21/22 18/19 19/20 20/21 21/22 Sep-22 Total # of Debit Cards (‘000) Total #
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 1981 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 April RW led consortium market in March Following Chase Ac
Slide 13: CIB Key Milestones
CIB KEY MILESTONES • Selected by the IATA • 1st bank to connect • Concludes 1st & largest to act as the BSP with the international Euro syndicated loan agent in Egypt, and SWIFT network (USD 200mn) remains the sole • 1st private sector bank bank that offers this with investment rating service to air
Slide 14: CIB Key Milestones
CIB KEY MILESTONES • Only bank in Egypt to be • 1 st Egyptian bank to • 1st bank in Egypt to awarded JP Morgan Quality establish a Sustainable recognize conduct risk Recognition Award (2005- Development and establish a 2012) Department framework for it, despite • 1st bank in Egypt to launch the lack
Slide 15: CIB Key Milestones (Cont'd)
CIB KEY MILESTONES Cont’d) • 1st Corporate Green Bond • Fully acquired Mayfair-CIB • For the 1st time in the Middle East • 1st Arab and African company and Africa, CIB was awarded listed on 2019 Bloomberg Issuance in Egypt “World’s Best Bank in the Gender Equality Index (GEI) — • Ranked 24th on Forb
Slide 16: CIB Subsidiaries
CIB SUBSIDIARIES Ownership: 99.83% Ownership: 100% Ownership: 49.95% Ownership: 99.9%** Commercial International Finance Company Mayfair CIB Bank Limited is a Kenyan Damietta Shipping and Marine Established in 2018, (CIFC) was established in June 2022 offering banking institution serving small and S
Slide 17: CIB Associates
CIB ASSOCIATES Ownership: 39.34% Ownership: 37% Ownership: 30% Ownership: 14.99% Established in October TCA Properties is an SPV Profile: Offers a full suite of Profile: an “Agent Bank” financial 1996 as a joint stock under Talaat Moustafa Group security services; services; company, ACE has a long e
Slide 18: Our Presence in Egypt
OUR PRESENCE IN EGYPT Total Branches and Units: 210 Greater Cairo:124 Alexandria Region: 32 Suez Canal Region: 22 Delta Region: 17 Upper Egypt Region: 15
Slide 19: Awards & Recognition
AWARDS & RECOGNITION 2022 Best Trade World's Best Best Best Green Sustainable Finance Foreign Wholesale/Tra Bond in Bank Provider in Exchange nsaction Bank Africa of the Year Egypt Providers for Digital CX EMEA MENA Global Global The Digital Finance Finance Finance Banker Country Awards Best Local R
Slide 20: Strategy
STRATEGY
Slide 21: Our Strategy
OUR STRATEGY TODAY TOMORROW Quality loan growth, with focus on increasing product penetration and SoW Positioned as trade finance hub for Egypt & Africa Deposit growth, specially from households Focus on SMEs & underpenetrated retail banking segment with Transactional banking services more eff
Slide 22: CIB Digital Transformation
CIB DIGITAL TRANSFORMATION* 94.2m EGP 1.2tn EGP 5.8bn No. of transactions Value of transactions Cost Synergy 🔺 9% y-o-y 🔺 40% y-o-y 🔺 38% 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 23: 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 24: Business
AIA 5 BUSINESS
Slide 25: 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 26: 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 2012 - 2018 2019 - 2020 2021 202
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 2,982,513,360* High EGP 48 Par value EGP 10.00 Low EGP 22.49 Listed London Stock Exchange (LSE) CBKD GDR convertibility 1:1 Traded OTCQX Int’l Premier (Level 1
Slide 29: Credit Rating
CREDIT RATING Credit Rating Current Rating Previous Rating LT FCY ST FCY Outlook LT FCY ST FCY Outlook * B+ B Negative B+ B Stable ** B B Stable B+ B Stable *** B2 NP Negative B3 NP Stable **** B+ B Stable B B Positive * According to the latest report as of November 2022 ** According to the latest
Slide 30: Risk Management
5 RISK MANAGEMENT VAIL
Slide 31: CIB Risk
CIB RISK ERM Framework Risk Governance – Three Lines Model The Bank has independent risk oversight and supports the Enterprise Risk The Bank has in place a robust governance framework that utilizes the Three Management (ERM) framework, applying the three lines model across the Lines Model, with a co
Slide 32: CIB Risk (Cont'd)
CIB RISK (Cont’d) 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, and systems through which Risk app
Slide 33: ESG
ESG
Slide 34: Our Sustainability Journey
OUR SUSTAINABILITY JOURNEY Environmental First Corporate Sustainability First Bloomberg and Social Risk Green Bond Department Sustainability Gender Equality Management Issuance in Egypt Establishment Report Index Inclusion System 2010 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Founding Suppor
Slide 35: 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
Slide 36: 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 37: 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 38: 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 39: 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 40: 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 41: 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 42: Financial Performance
5 FINANCIAL PERFORMANCE VAIL
Slide 43: Performance Snapshot: FY22
PERFORMANCE SNAPSHOT: FY22 Key Indicators FY22 Comparison (FY21) Commentary REVENUES EGP 32.9bn EGP 26.7bn 23% YoY Profitability NPAT EGP 16.2bn EGP 13.3bn 22%YoY ROAE 25.1% 21.7% 16% YoY ROAA 2.86% 2.88% -1% YoY Efficiency NIM** 6.1% 5.67% 8% YoY COST/INCOME 21.2% 22.8% -7% YoY TOTAL ASSETS EGP 635
Slide 44: Position Among Peers (as of September 2022)
POSITION AMONG PEERS (as of September 2022) Total Assets (EGP bn) Net Income (EGP mn) Gross Loans/Deposits EGP Billions EGP Millions CAE 1,604 HSBC CAE 67 30.6% ALEX 2,069 CIB 40.2% ALEX 126 AAIB 2,916 ALEX 55.5% HSBC 163 HSBC 3,434 AAIB 56.2% AAIB 278 QNBA QNBA 6,955 QNBA 57.2% 441 CIB 590 CIB 12,2
Slide 45: Performance Snapshot: Funding Overview
PERFORMANCE SNAPSHOPT: FUNDING OVERVIEW Funding Structure Due to Customers (93.68%) Other Liabilities (2.05%) Other Loans (1.41%) Due to Banks (0.62%) Customer Deposit Mix Demand (37.24%) CDs (24.14%) TDs (20.12%) Savings (17.3%) CIB’s funding structure has no wholesale funds
Slide 46: 10-Year Performance Summary
10 – YEAR PERFORMANCE SUMMARY 3.26% 600 50% 700,000 3.50% 43% 2.93% 2.94% 2.95% 3.03% 2.86% 40% 39% 600,000 2.71% 2.69% 2.72% 3.00% 500 37% 37% 37% 36% 37% 2.53% 35% 35% 40% 635,832 500,000 2.50% 400 532 294,782 267,544 30% 498,236 400,000 2.00% 300 407 197 285 179,500 341 427,842 251 304 143,813 23
Slide 47: Market Share
MARKET SHARE 7.00% 6.78% 6.69% 6.56% 6.54% 6.62% 6.63% 6.30% 6.13% 6.10% 5.80% 6.40% 6.10% 5.63% 5.47% 5.33% 5.37% 5.41% 5.23% 5.27% 5.19% 5.13% Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Total Loans Total Deposits Loan Market Share as of Sep’22 Deposit Market Share
Slide 48: Why CIB?
WHY CIB? Profitability A diverse and NPAT EGP 16.2bn Revenues EGP 32.9bn Highly skilled and Prominent Board of experienced Directors inclusive Management Team workforce Asset Quality Direct Coverage Ratio NPL/Gross loans 4.81%* 229%* KPIs Cost/income ROAA 2.86% ROAE 25.1% 21.2% Largest in…** Strong
Slide 49: 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 50: Thank You
Thank You
Commercial International Bank - Egypt (CIB) — Q4 2022 Earnings Presentation on 6ix