Commercial International Bank - Egypt (cib) S.a.e. · EGX:COMI
Commercial International Bank - Egypt (cib) S.a.e — Commercial International Bank (CIB) — Q3 2014 Earnings Presentation
41 slides from Commercial International Bank - Egypt (cib) S.a.e's earnings presentation, November 2014
Slide 1: Investor Relations Presentation
Investor Relations | Presentation
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: 87.5mn¹ • Current A/C balance: $523.1mn*** • Median age: 25² • Net International reserve: $16.84bn (Aug. 2014) • Private consumption/GDP: 84.74%** • LT external debt: $42.51bn*** • Public consumption/GDP: 11.49%** • ST external debt: $2.77bn*** • Labor force/population
Slide 6: Egypt Fact Sheet (Cont'd)
Egypt Fact Sheet (Cont’d) Diversified as % of GDP¹ Favorable Demographics² 18,000,000 1.25% 2.70% 16,000,000 2.71% 1.50% 14,000,000 3.76% 12,000,000 4.14% 27.25% 10,000,000 8,000,000 5.94% 6,000,000 4,000,000 6.58% 2,000,000 0 8.80% 12.29% 0-14 yrs 15-24 yrs 25-54 yrs 55-64 yrs 65 yrs + Males Female
Slide 7: Macroeconomics Snapshot
Macroeconomics Snapshot GDP Growth¹ 20% 18.3% Inflation (%) 8% 7.1% 7.2% 6% 15% 13.5% 5.1% 4.7% 11.7% 11.49% 10.3% 9.6% 4% 10% 2.2% 6.9% 1.9% 2.1% 1.6% 4.7% 2% 5% 0% 06/07 07/08 08/09 09/10 10/11 11/12 12/13 July-March 0% 2013/2014 2007 2008 2009 2010 2011 2012 12/13 August 2014 FDI (USD mn) Soverei
Slide 8: Egyptian Banking Sector Snapshot
Egyptian Banking Sector Snapshot Total Loans Total Deposits Loans to Deposits ratio 1,457 60% 58% 584 53% 52% 52% 545 1,191 49% 49% 503 46% 464 471 1,027 40% 965 427 900 382 399 820 344 756 658 571 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 Jul-14 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13
Slide 9: 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 10: Prospects for Banking Environment
Prospects for Banking Environment Economic gradual pick up • Stabilized official reserves at around $17 billion • Crucial steps have been taken to reduce fuel subsidies and reform the tax system • The government announced 3 mega projects: the Golden Triangle in the South, the North Coast development
Slide 11: About CIB
Slide 12: Strategic Milestones
Strategic Milestones Strategic Chase Divestiture: First GDR subsidiaries Ripplewood led Actis Sold Renamed CIB US$ 120M established consortium divested 2.6% in open 22.2% of share to complement our half of its holdings market in capital core business in CIB to Actis March 1975 1987 1993 1996 1998 20
Slide 13: CIB Group Structure
Cl Group Structure ivy EGYPT FACTORS CORPLEASE a matter of life... CAPITAL ALSIB croup Member CAPITAL INVESTMENT. ss Ci IB CAPITAL CAPITAL [reco | id CAPITAL DYNAMIC
Slide 14: Business Segments
Business Segments Institutional Consumer CI Capital Banking Banking • Market leader • The take-off for a • Full-fledged • Prime contributor to world class consumer Investment Bank Description profitability banking franchise wholly owned by CIB • Large Corporates • Retail customers (with including MN
Slide 15: 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 908,173,443 EGP 2011 2012 2013 YTD 2014 Par value EGP 10.00 Market Cap. 11,115mn 11,257mn 21,839mn 45,795mn GDR R
Slide 16: Shareholding Structure
Shareholding Structure Free Float Breakdown by region 6.76% 3.52% 3.79% 15.48% 40.40% 18.01% 18.81% North America Africa 93.24% UK & Ireland GCC Continental Europe Rest of the World Free Float Breakdown by category Free Float 13.15% Fairfax Financial Holdings Ltd (“Fairfax”)* 86.85% Individuals Inst
Slide 17: Funding Overview
Funding Overview Funding Structure Customers Deposits Mix 3.90% 1.29% 0.19% 2.70% 17.75% 28.70% 94.63% 24.89% 25.96% Due to Customers Other Liabilities TDs CDs Demand Savings Other Deposits Due to Banks Long-Term Loans CIB’s funding structure has no wholesale funds 17
Slide 18: Key Strengths
Key Strengths Along with its Assets grew subsidiaries and The only “one-stop Continuous 15.3% from Affiliates shop” Growth 2009 till 2013 Highly skilled Highly group leading Experienced Strongest brand reputable the Bank management team equity in market among all banks in Egypt Acted as a Conservati
Slide 19: Distribution Network
Distribution Network Total Outlets 160 Attemative Distribution cane = Channels: Alex. 24 arene een Delta 7 Pos 9,195 Sina & Canal 17 Website visits in Sept’14: 393,493 Internet Banking in Sept’14: 115,839 Upper Egypt Call Center: 280k calls received & Red Sea 19 in Sept’14 through our 24 hours 7 day
Slide 20: Corporate Governance
Slide 21: Corporate Governance
Corporate Governance Commitment to Corporate Governance Importance of Corporate Governance • Corporate governance is an issue that rates high on It has been demonstrated over and over our list of priorities that effective corporate governance in banks • CIB was the first Egyptian corporation to esta
Slide 22: 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 23: Board Members
Board Members Hisham Ezz Al-Arab Chairman & Managing Director Mark Richards Head of financial services of Actis Jawaid Mirza Non Executive Board Member Medhat Hassanein Egypt's former Minister of Finance Nadia Makram Ebeid Executive Director of the Center for Environment and Development for the Arab
Slide 24: CIB Financial Highlights
Slide 25: Performance Snapshot: September 2014
Performance Snapshot: 30 September2014 Total Assets Net Loans Customer Deposits Shareholders’ Equity EGP 136,265mn EGP 46,102mn EGP 115,867mn EGP 13,768mn Year-End 2013: EGP 112,499mn; Year-End 2013: EGP 41,866mn; Year-End 2013 : EGP 96,846mn; Year-End 2013: EGP 10,706mn; 21.1% YTD 10.1% YTD 19.6% Y
Slide 26: Historical Performance
Historical Performance 50% 56% 56% 55% 56% 57% 52% 54% 53% 96.8 2.90% 3.08% 2.87% 2.89% 2.90 43% 2.48 78.7 2.37% 71.5 1.94% 2.09% 2.01% 63.4 113,752 54.8 48.9 39.5 85,506 93,957 31.6 64,255 75,425 24.0 24.9 47,906 57,462 27,977 30,389 37,553 14.0 17.5 20.5 26.3 27.4 35.2 41.1 41.9 41.8 13.4 2004 200
Slide 27: Peer Analysis – Q2'2014
Peer Analysis – Q2'2014 EGP Bn Total Assets EGP Mn Net Income Gross Loans to Deposits 140 128 2,000 70% 63.62% 62.09% 1,663 120 60% 51.75% 100 91 1,500 50% 44.58% 41.64% 80 1,029 40% 58 1,000 745 60 43 30% 40 30 500 336 310 20% 20 10% 0 0 0% CIB QNBA HSBC Alex CAE CIB QNBA HSBC Alex CAE Alex QNBA CA
Slide 28: Market Share Trend
Market Share Trend 10.00% 9.00% 8.77% 8.47% 8.45% 8.52% 8.58% 8.52% 8.24% 8.30% 8.32% 8.25% 8.28% 8.27% 8.43% 8.02% 8.10% 8.00% 7.58% 7.22% 7.04% 7.67% 7.65% 7.75% 7.51% 7.56% 7.00% 6.70% 7.39% 7.48% 7.48% 7.37% 7.14% 7.23% 7.23% 6.89% 6.98% 6.66% 6.62% 6.56% 6.67% 6.00% 6.38% 5.00% Dec-09 Mar-10 Ju
Slide 29: Market Share Breakdown
6.00% 8.00% 0.00% 2.00% 4.00% 10.00% 12.00% 0.00% 5.00% 10.00% 15.00% Dec-09 Dec-09 Mar-10 Mar-10 Jun-10 Jun-10 * As of July 2014 Sep-10 Sep-10 LCY Dec-10 Dec-10 Mar-11 Mar-11 Household Jun-11 Jun-11 Household Sep-11 Sep-11 LCY Dec-11 Dec-11 Mar-12 Mar-12 5.54% 7.28% Jun-12 Loans Loans Jun-12 FCY Se
Slide 30: Consumer Banking Snapshot
Slide 31: Assets Portfolio Growth
Assets Portfolio Growth Assets Assets Mix 9,600 100% 5,565mn 10% 9% 9% 9% 9% 8% 7% 5% 17% 13% 25%* 90% 10% 9% 8,600 9% 9% 10% 10% 10% 10% 7% 80% 10% 6% 12% 9% 8% 7% 8% 7% 7,600 10% 70% 10% 6,600 14% 27% 28% 29% 60% 31% 30% 27% 30% 31% 5,600 9,480 50% 31% 8,904 26% 7,962 40% 4,600 7,210 7,305 7,182 6
Slide 32: Assets By Segment
Assets By Segment YoY Performance QoQ Performance 5,000 4,444 4,500 4,444 4,000 3,530 4,166 3,000 4,000 Wealth Segment 2,000 1,000 3,500 - Jun-14 Sep-14 Sep-13 Sep-14 1,500 1,239 1,300 1,239 1,200 1,000 712 1,077 Business Banking 1,100 500 1,000 900 0 Sep-13 Sep-14 Jun-14 Sep-14 600 491 600 491 431
Slide 33: Business Banking profile
Business Banking profile • Business Banking has been one of CIB’s strategic initiatives in the past couple of years • Was launched on a pilot basis in 2011 and went live in 2012, finally in 2013 was aggressively introduced to the market • Falls under CIB’s Consumer Banking umbrella • Manages financi
Slide 34: 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 14% 12% 19% 67% 88% Retail companies Business Banking Other Retail Business Banking Retail Companies Revenue Gros
Slide 35: CIB Strategy
Slide 36: Vision realization
Vision realization Where do we stand? Way forward • Positioned as trade finance hub for Financial Quality loan Egypt Aggressive growth, with focus Performance on increasing deposit growth, Transactional • Focus on SMEs & underpenetrated Drivers specially from banking services retail banking segment
Slide 37: Summary and Conclusion
Slide 38: Why Egypt?
Why Egypt? Political • Building new political structure to fulfill the dreams of all Egyptians Situation • General improved optimism about the political future in Egypt • Moving to a more open political system • Among the most diverse in the MENA region • Started transformation to a stable and moder
Slide 39: Why CIB?
Why CIB? Profitability Liquidity Largest in … Asset Quality KPIs • Total Assets • Market EGP 136bn leader • High • Loans and liquidity deposits • NPAT EGP • NPL/Gross • ROAA 2.9% market 2.7bn loans • Net LDR shares 4.85%* • Total 40.1% • ROAE 29.5% • Market Cap revenues • Direct EGP 45.8bn EGP 5.8bn
Slide 40: Awards and Recognition
Awards and Recognition yy 2014 + *CIB is the only ranked Egyptian organization in the Forbes world’s 2000 biggest public companies. CIB is ranked 1,735 as of 2014; an improvement of its previous rank of 1,966 in 2013 + Best Subcustodian Bank 2014 - By Global Finance + Best Bank in Egypt 2014 - Excel
Slide 41: 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 Senior Analyst Hot line: 19666 Yasmine.Hemeda@cibeg.
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