Commercial International Bank - Egypt (cib) S.a.e. · EGX:COMI
Commercial International Bank - Egypt (cib) S.a.e — Commercial International Bank - Egypt (CIB) — Q2 2015 Earnings Presentation
44 slides from Commercial International Bank - Egypt (cib) S.a.e's earnings presentation, 2015
Slide 1: Investor Relations Presentation Q2 2015
Investor Relations. Presentation — Q2’ 2015 TO TRUST
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: 89.2mn¹ • Current A/C balance: $-4,080mn*** • Median age: 25² • Net International reserve: $19.6bn (May 2015) • Private consumption/GDP: 83.84%** • LT external debt: $36.9bn*** • Public consumption/GDP: 11.46%** • ST external debt: $3bn*** • Labor force/population: 32.
Slide 6: Egypt Fact Sheet (Cont'd)
Egypt Fact Sheet (Cont’d) Diversified as % of GDP¹ Favorable Demographics² 18,000,000 0.30% 2.75% 16,000,000 3.40% 1.21% 14,000,000 3.91% 12,000,000 3.96% 10,000,000 27.85% 8,000,000 4.84% 6,000,000 6.14% 4,000,000 2,000,000 0 9.45% 0-14 yrs 15-24 yrs 25-54 yrs 55-64 yrs 65 yrs + 14.06% Males Female
Slide 7: Macroeconomics Snapshot
Macroeconomics Snapshot Reform-led boom 8.0% Global financial crisis 7.1% 7.2% 7.0% 6.0% 5.5% 5.1% 5.0% 4.7% Post-uprising turmoil 4.0% 3.0% 3.0% 2.2% 2.1% 1.9% 2.0% 1.1% 1.0% 0.0% 06/07 07/08 08/09 09/10 10/11 11/12 12/13 H1 13/14 H2 13/14 H1 14/15 GDP Growth (%) Inflation (%) FDI (USD mn) 16,000 2
Slide 8: Prospects for Egyptian Economy
Prospects for Egyptian Economy • New Suez Canal • Fuel subsidies • New Cairo Administrative Capital • Corporate tax • Investment law • Development Passage, in Western Mega General • CBE new mechanism for FCY repatriation Desert parallel to the Nile Valley • Mobile financial services • Golden Triangl
Slide 9: Egypt… Safe haven for investments
Egypt… Safe haven for investments Broad, and Proximity to increasing, local international customer base markets Major Improved ease investment of doing opportunities business Low labor costs Egypt Large market provides… share 9
Slide 10: Challenges Facing Egypt
Challenges Facing Egypt Slow improvement in standards of living1 • UNDP Human Development Index: Score of 0.682, ranking 110/187 in 2013 Low quality health care services1 • 4.9 % of GDP spent on health care services in 2011 Lack of educational reforms1 • 3.8% of GDP spent on education in 2012 Ease o
Slide 11: Egyptian Banking Sector Snapshot
Egyptian Banking Sector Snapshot Total Loans Total Deposits Loans to Deposits ratio 1,676 692 1,433 60% 58% 584 53% 52% 52% 545 1,191 49% 49% 503 46% 464 471 1,027 41% 41% 427 965 382 399 900 344 820 756 658 571 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 Apr-15 05/06 06/07 07/08 08/09 09/
Slide 12: About CIB
Slide 13: 40 years of Sustainable Growth… and counting
40 years of Sustainable Growth… and counting First Chase First Egyptian Consortium Ripplewood led Actis Sold International led by National Bank IPO raising consortium 2.6% in open Rating by S&P Ripplewood; established US$ 115M; 150% divested half of market in and Fitch: acquired NBE its holdings ove
Slide 14: Disposal of Corplease and CIL stakes
• CI Capital has acquired CIB’s stake in Corplease in May 2015 • CIB has sold its stake in CIL to AXA in July 14
Slide 15: Business Segments
Business Segments Institutional Consumer CI Capital Banking Banking • Market leader • The take-off for a world • Full-fledged Investment • Prime contributor to class consumer banking Bank wholly owned by Description profitability franchise CIB • Large Corporates • Retail customers (with including MN
Slide 16: Distribution Network
Distribution Network Total Outlets 163 Alternative Distribution Cairo 95 Channels: Alex. 22 ATMs 619 Delta 18 POS 10,229 Sina & Canal 13 Website visits during Q2: 1,628,682 Internet Banking Users 149,642 Upper Egypt 569,900 received calls during Q2 & Red Sea 15 through our 24 hours/7 days a week ded
Slide 17: 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 917,648,237 EGP 2011 2012 2013 2014 YTD 2015 Par value EGP 10.00 Market Cap. 11,115mn 11,257mn 21,839mn 44,673mn
Slide 18: Shareholding Structure
Shareholding Structure Free Float Breakdown by region 6.7% 5.22% 6.70% 12.47% 43.70% 14.43% 17.48% North America Africa 93.3% GCC UK & Ireland Continental Europe Rest of the World Free Float Breakdown by category Free Float 12.94% Fairfax Financial Holdings Ltd (“Fairfax”)* 87.06% * Several wholly o
Slide 19: Funding Overview
Funding Overview Funding Structure Customers Deposits Mix 3.09% 0.40% 0.14% 3.87% 17.35% 29.70% 96.37% 24.11% 24.97% Due to Customers Other Liabilities Demand TDs CDs Savings Other Deposits Due to Banks Long-Term Loans CIB’s funding structure has no wholesale funds 19
Slide 20: Business Continuity Management
Business Continuity Management • Leader in implementing international standards and best practices • Set a unique model within the Egyptian financial sector in Business Continuity field Overview Initiatives High availability Established in 2010; ahead of all major Active-active players in the data c
Slide 21: Corporate Governance
Slide 22: Corporate Governance
Corporate Governance Commitment to Corporate Governance Importance of Corporate Governance • An issue that rates high on our list of priorities It has been demonstrated over and over that • CIB was the first Egyptian corporation to establish an effective corporate governance in banks Audit Committee
Slide 23: Board of Directors
Board of Directors • The Board and each of its committees are governed by well- Audit Committee defined charters that sets out its responsibilities and composition requirements • CIB’s Board consists of 8 members, 7 of which are Non-Executive Corporate Governance & with a wide range of industry expe
Slide 24: Board Members
Hisham Ezz Al-Arab Chairman & Managing Director Jawaid Mirza Non Executive Board Member Nadia Makram Ebeid Executive Director of the Center for Environment and Development for the Arab Region and Europe (CEDARE) Yasser Hashem Managing Partner of Zaki Hashem & Partners, Attorneys at Law BOD compositi
Slide 25: CIB Financial Highlights
Slide 26: Performance Snapshot: 30 June 2015
Performance Snapshot: 30 June 2015 Total Assets Net Loans Customer Deposits Shareholders’ Equity EGP 163,149mn EGP 54,560mn EGP 142,869mn EGP 14,858mn Year-End 2014: EGP 143,813mn; Year-End 2014: EGP 48,804mn; Year-End 2014: EGP 121,975mn; Year-End 2014: EGP 14,754mn; 13.44% YTD 11.79% YTD 17.13% YT
Slide 27: Performance Summary: last 10 years
Performance Summary: last 10 years 56% 56% 55% 57% 3.03% 2.89% 2.92% 2.93% 2.94% 52% 54% 53% 122.0 50% 2.52% 2.62% 2.51% 43% 40% 2.09% 2.03% 96.8 143,813 78.7 71.5 63.4 48.9 54.8 113,752 39.5 93,957 31.6 75,425 85,506 24.9 47,906 57,462 64,255 30,389 37,553 17.5 20.5 26.3 27.4 35.2 41.1 41.9 41.8 48
Slide 28: Peer Analysis – Q1'2015
Peer Analysis – Q1'2015 EGP bn Total Assets EGP mn Net Income Gross Loans to Deposits 200 1,080 80% 1,200 67.71% 158 70% 1,000 57.27% 150 60% 49.95% 49.13% 113 800 622 50% 42.73% 40.80% 91 525 40% 100 600 62 398 30% 45 400 245 50 20% 200 10% 0 0 0% CIB QNBA AAIB HSBC Alex CIB QNBA HSBC AAIB Alex Ale
Slide 29: Market Share Trend
Market Share Trend 10.00% 9.00% 8.77% 8.47% 8.45% 8.52% 8.58% 8.52% 8.45% 8.54% 8.57% 8.30% 8.32% 8.43% 8.24% 8.25% 8.28% 8.27% 8.02% 8.10% 8.00% 8.18% 7.91% 7.84% 7.67% 7.65% 7.75% 7.48% 7.48% 7.51% 7.56% 7.00% 7.39% 7.37% 7.14% 7.23% 7.23% 6.89% 6.98% 6.67% 6.00% 5.00% Dec-10 Mar-11 Jun-11 Sep-11
Slide 30: 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-10 Dec-10 Mar-11 Mar-11 Jun-11 Jun-11 * As of April 2015 Sep-11 Sep-11 LCY Dec-11 Dec-11 Mar-12 Household Mar-12 Jun-12 Jun-12 Household Sep-12 LCY Sep-12 Dec-12 Dec-12 5.99% 7.54% Mar-13 Mar-13 Loans Loans Jun-13 FCY Jun-13 L
Slide 31: Consumer Banking Snapshot
Slide 32: Assets Portfolio Growth
Assets Portfolio Growth Assets Assets Mix EGP bn 12 100% 5% 4% 7.1bn 10% 9% 8% 7% 7% 7% 17% 13% 23% 10% 9% 11% 10% 10% 10% 10% 10 10% 7% 10% 6% 7% 6% 12% 8% 7% 6% 75% 10% 10% 8 14% 29% 25% 26% 24% 27% 28% 27% 30% 6 50% 31% 10.61 11.01 26% 8.90 9.48 9.47 4 7.96 6.66 7.18 25% 49% 49% 50% 53% 51% 52% 5
Slide 33: Assets By Segment
Assets By Segment YoY Performance QoQ Performance 6,000 5,019 5,500 5,019 4,166 4,821 4,000 4,500 Wealth Segment 2,000 3,500 - Mar-15 Jun-15 Jun-14 Jun-15 1,400 1,500 1,404 1,270 1,270 1,200 1,077 Business Banking 1,000 1,000 500 800 Jun-14 Jun-15 Mar-15 Jun-15 800 687 800 687 585 600 600 431 400 40
Slide 34: Business Banking profile
Business Banking profile • Falls under CIB’s Consumer Banking umbrella • Manages financial needs of small and medium size retail companies with annual sales turnover below EGP 60mn Launched in 2011 Aggressively introduced (pilot basis) to the market in 2013 Currently has penetration Went live in 201
Slide 35: Business Banking Performance
Business Banking Performance Business Banking model has proved its success when compared to the Retail Banking approach in terms of overall performance Number of Companies Total Deposits 15% 37% 63% 85% Business Banking Retail Business Banking Retail Revenue Gross Contribution 19% 28% 72% 81% Busine
Slide 36: Customer Experience
Customer Experience • Committed to continue meeting our customers’ expectations, maintaining customer satisfaction levels and dealing proactively with the challenges faced and focus on enhancing our employees’ capabilities in dealing with these challenges • Measuring customers’ satisfaction levels c
Slide 37: CIB Strategy
Slide 38: Vision realization
Vision realization Where do we stand? Way forward • Positioned as trade finance hub for Egypt Financial Quality loan growth, Aggressive deposit • Focus on SMEs & underpenetrated retail Performance with focus on growth, specially Transactional increasing product banking segment Drivers banking servic
Slide 39: e-Channels and Digital Banking Domain
e-Channels and Digital Banking Domain Initiatives Performance 98.9% 98.8% 98.8% 98.8% Introducing 98.8% Mobile Banking 98.7% 98.7% 98.6% 98.6% 98.6% Introducing 98.5% Mobile Revamping Apr-15 May-15 Jun-15 Wallet and IVR Internet Banking Availability e-payments 98.0% 97.4% 97.3% 96.7% Launching 97.0%
Slide 40: Summary and Conclusion
Slide 41: Awards and Recognition
Awards and Recognition 2015 + Best Subcustodian Bank 2015 - by Global Finance + Trade Finance Deal of the Year - African Banker Awards + Best Bank in Egypt - Excellence Award by Euromoney + Best Business Continuity Team - by DRI International + Best Trade Finance Provider in Egypt by Global Finance
Slide 42: Why Egypt?
Why Egypt? • Building new political structure to fulfill the dreams of all Egyptians Political • General improved optimism about the political future in Egypt Situation • Moving to a more open political system • Among the most diverse in the MENA region • Started transformation to a stable and moder
Slide 43: Why CIB?
Why CIB? Along with its The only “one- • Market leader subsidiaries and Affiliates Profitability • NPAT EGP 2.3bn stop shop” • Total revenues EGP 5bn Assets grew 16.80% from Continuous • NPL/Gross loans 4.5%* 2009 till 1st Half 2015 Asset Quality Growth • Direct Coverage Ratio 142%* Highly reputable
Slide 44: Thank you
Thank you For more information, please visit www.cibeg.com Investor Relations 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 Officer Hot line: 19666 Yasmine.Hemeda@cibeg.com 24/
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