Commercial International Bank - Egypt (cib) S.a.e. · EGX:COMI
Commercial International Bank - Egypt (cib) S.a.e — Commercial International Bank - Egypt (CIB) — Q2 2023 Earnings Presentation
49 slides from Commercial International Bank - Egypt (cib) S.a.e's earnings presentation, 2023
Slide 1: Investor Relations Presentation Q2 2023
Investor Relations Presentation Q2 2023
Slide 2: Table of Contents
TABLE OF CONTENTS Macroeconomic Overview … 04 About CIB …. 11 Strategy… 19 Business … 23 Risk Management … 29 CIB Stock … 26 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 105.2 mn* Median age 24.1** Participation rate (Labor force / population) 42.8*** Unempl
Slide 6: Macro Environment
MACRO ENVIRONMENT Real GDP Growth (%) Inflation (%) 40.3% 39.5% 38.6% 6.2% 31.2% 5.1% 24.5% 21.5% 3.9% 19.0% 16.7% 18.0% 14.6% 15.6% 11.9% 13.3% 2.5% 10.1% 31.9% 32.7% 30.6% 2.0% 6.3% 7.2% 25.8% 21.3% 16.2% 18.7% 13.5% 13.2% 13.6% 14.6% 15.0% 10.5% 13.1% 18/19 19/20 20/21 21/22 H1 22/23 7.3% 8.8% Fi
Slide 7: Sustainable FCY Resources
SUSTAINABLE FCY RESOURCES Foreign Inflows (USD mn) Petroleum and Suez Canal Proceeds (USD mn) USD million USD millions 31,425 31,924 15,657 27,758 25,151 23,985 6,997 7,961 5,731 5,806 5,911 14,637 4,433 12,571 11,456 9,859 10,748 8,236 8,937 8 7,453 4,8625,214 (421) (7) 18/19 19/20 20/21 21/22 H1 2
Slide 8: Egypt's Banking Sector
EGYPT’S BANKING SECTOR Total loans (EGP bn) Total deposits (EGP bn) LDR (%) EGP billion EGP billion 50% 4,400 9,216 3,490 7,372 48% 47% 2,856 5,751 46% 4,701 46% 2,180 1,840 4,007 18/19 19/20 20/21 21/22 Mar-23 18/19 19/20 20/21 21/22 Mar-23 18/19 19/20 20/21 21/22 Mar-23 Loan growth (%) Deposit gro
Slide 9: Egypt's Banking Sector (Cont'd)
EGYPT’S BANKING SECTOR (Cont’d) Total # of branches Total # of ATMs Total # of POS 198,817 188,429 173,401 98,049 79,952 18/19 19/20 20/21 21/22 Dec-22 Total # of Debit Cards (‘000)* Total # of Credit Cards (‘000)* 23,838 22,960 20,110 17,756 16,012 5,001 4,810 4,163 3,573 3,158 18/19 19/20 20/21 21
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 April RW led consortium market in March Following Chase Ac
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 *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 15: CIB Subsidiaries
CIB SUBSIDIARIES Ownership: 99.83% Ownership: 49.95% Ownership: 100% Commercial International Finance Company Damietta Shipping and Marine CIB Kenya Limited is a Kenyan (CIFC) was established in June 2022 offering Services (DSMS) is a banking institution serving small and mortgage and factoring faci
Slide 16: CIB Associates
CIB ASSOCIATES Ownership: 39.34% Ownership: 37% Ownership: 30% Established in October TCA Properties is an SPV Profile: Offers a full suite of 1996 as a joint stock under Talaat Moustafa Group security services; company, ACE has a long established through its • Private security track record in the f
Slide 17: Our Presence in Egypt
OUR PRESENCE IN EGYPT Total Branches and Units: 211 Greater Cairo:125 Alexandria Region: 32 Suez Canal Region: 22 Delta Region: 17 Upper Egypt Region: 15
Slide 18: Awards & Recognition
AWARDS & RECOGNITION 2022 2023 Best Trade World's Best Best Best Green Best Supply Finance Foreign Wholesale/Tra Sustainable Best M&A Deal in Bond in Chain Finance Provider in Exchange nsaction Bank Bank Best Private MENA – EMEA Africa Best Bank in Bank in Africa Egypt Providers for Digital CX of th
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* 64.1m EGP 1tn EGP 3.2bn No. of transactions Value of transactions Cost Synergy 🔺 40% y-o-y 🔺 89% y-o-y 🔺 44% 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 5 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 2011-2018 2019-2020 2021 2022 2023
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 58.99 Par value EGP 10.00 Low EGP 24.528 Listed London Stock Exchange (LSE) CBKD GDR convertibility 1:1 Traded OTCQX Int’l Premier (Leve
Slide 28: 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 Negative ** B B Negative B+ B Stable *** B3 NP Stable B2 NP Negative **** B+ B Stable B B Positive * According to the latest report as of July 2023 ** According to the latest
Slide 29: Risk Management
5 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 The Bank has in place a robust governance framework that utilizes the Enterprise Risk Management (ERM) framework across the Three Lines Model, with a committees’ structure, wher
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 Sustainability First Management Transparency by Task for Climate Green Bond Department Sustainability System disclosing Related Financial Issuance in Egypt Establishment Report (ESRMS) through CDP
Slide 34: ESG at CIB
ESG AT CIB International Standards and Guidelines Sustainability Governance Recognition and Ratings Board Sustainability Committee Sustainable Finance Steering Committee Net-Zero Banking Alliance Sustainable Finance Department0 Sustainability Strategic Network A Financial Health & 20.2 Medium Risk I
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 supervising the Bank’s
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
5 FINANCIAL PERFORMANCE VAIL
Slide 42: Performance Snapshot: 2Q23
PERFORMANCE SNAPSHOT: 2Q23 Key Indicators 2Q23 Comparison Commentary REVENUES EGP 13.5bn EGP 6.9bn; 2Q22 96% YoY Profitability NPAT EGP 7.99bn EGP 3.52 bn; 2Q22 127% YoY ROAE 49.1% 21.5 %; 2Q22 129% YoY ROAA 4.31% 2.68 %; 2Q22 61% YoY Efficiency NIM* 7.47% 5.91%; 2Q22 26% YoY COST/INCOME 15.8% 21.7%
Slide 43: Position Among Peers (as of March 2023)
POSITION AMONG PEERS (as of March 2023) EGP Billions Total Assets EGP Millions Net Income ROAE CIB 684 CIB 6,084 CAE 47.7% QNBA QNBA 4,481 HSBC 38.3% 517 HSBC 1,996 CIB 37.5% AAIB 390 AAIB 1,236 QNBA 33.7% HSBC 205 ALEX 30.9% ALEX 138 CAE 1,221 AAIB 7.4% CAE 85 ALEX 1,179 ROAA Captial Adequacy Cost
Slide 44: Performance Snapshot: Funding Overview
PERFORMANCE SNAPSHOPT: FUNDING OVERVIEW Funding Structure Due to Customers (90.5%) Other Liabilities (2.26%) Other Loans (1.53%) Due to Banks (3.29%) Customer Deposit Mix Demand (17.48 %) CDs (25.59%) TDs (17.48%) Savings (15.42%) CIB’s funding structure has no wholesale funds
Slide 45: 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 46: Market Share
MARKET SHARE 6.23% 6.24% 6.22% 6.23% 6.17% 6.18% 6.13% 6.10% 6.12% 6.09% 6.01% 5.84% 5.80% 5.84% 5.76% 5.65% 5.47% 5.51% 5.40% 5.41% 5.43% 5.41% 5.44% 5.33% 5.37% 5.35% 5.29% 5.19% 5.04% 5.00% Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 To
Slide 47: Why CIB?
WHY CIB? Profitability A diverse and NPAT EGP 7.99bn Revenues EGP 13.5bn Highly skilled and Prominent Board of experienced Directors inclusive Management Team workforce Asset Quality Direct Coverage Ratio NPL/Gross loans 5.07%* 236%* KPIs Cost/income ROAA 4.13% ROAE 49.1% 15.8% 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) — Q2 2023 Earnings Presentation on 6ix