Commercial International Bank - Egypt (cib) S.a.e. · EGX:COMI
Commercial International Bank - Egypt (cib) S.a.e — Commercial International Bank (CIB) — Q1 2015 Earnings Presentation
45 slides from Commercial International Bank - Egypt (cib) S.a.e's earnings presentation, 2015
Slide 1: Investor Relations Presentation Q1'2015
Investor Relations. Presentation — Q1’ 2015 A BANK 70 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: 88.5mn¹ • Current A/C balance: $-2,857.3*** • Median age: 25² • Net International reserve: $15.3bn (March 2015) • Private consumption/GDP: 84.77%** • LT external debt: $38bn*** • Public consumption/GDP: 10.88%** • ST external debt: $3.32bn*** • Labor force/population:
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 • Fuel subsidies • New Suez Canal • Corporate tax • New Cairo Administrative Capital • Investment law • Development Passage, in Western • CBE new mechanism for FCY Desert parallel to the Nile Valley Mega General repatriation • Golden Triangle in the South Projects Refo
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 1,616 652 1,433 60% 58% 584 53% 52% 52% 545 1,191 49% 49% 503 46% 464 471 1,027 41% 40% 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 Feb-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 oversubscribed i
Slide 14: CIB Group Structure
Cl Group Structure (S2 Wf EGYPT FACTORS CORPLEASE FALCON peut ay Wallis, Ineernoticnol Security & Sevices SAE. a matter of life... =a 41 CI \Qy CAPITAL acl cl wicl cr. (iy CAPITAL YQ CAbrran Wy Capra \Q) CAPITAL CIB
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: Total Outlets
lotal Outlets Cairo Alex. Delta Sina & Canal Upper Egypt & Red Sea EGYPT cvicstacts Total Area 166 97 25 c.1,002,000 sq. km Distribution Network Altemative Distribution Channels: ATMs 605 POS 10,036 Website visits in Q1: 1,572,029 Internet Banking users in Q1: 136,271 Call Center: 572,921 calls rece
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** 908,173,443 EGP 2011 2012 2013 2014 YTD 2015 Par value EGP 10.00 Market Cap. 11,115mn 11,257mn 21,839mn 44,673m
Slide 18: Shareholding Structure
Shareholding Structure Free Float Breakdown by region 6.76% 4.92% 6.11% 13.70% 42.98% 14.71% 17.59% North America Africa 93.24% GCC UK & Ireland Continental Europe Rest of the World Free Float Breakdown by category Free Float 12.68% Fairfax Financial Holdings Ltd (“Fairfax”)* 87.32% * Several wholly
Slide 19: Funding Overview
Funding Overview Funding Structure Customers Deposits Mix 3.89% 0.29% 0.15% 3.62% 17.80% 28.35% 94.91% 23.50% 26.73% 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: 31 March 2015
Performance Snapshot :31 March 2015 Total Assets Net Loans Customer Deposits Shareholders’ Equity EGP 157,813mn EGP 53,098mn EGP mn 136,017mn EGP 14,508mn Year-End 2014: EGP 143,813mn; Year-End 2014: EGP 48,804mn; Year-End 2014: EGP 121,975mn; Year-End 2014: EGP 14,803mn; 9.73% YTD 8.80% YTD 11.51%
Slide 27: Funded and Unfunded Income
Funded and Unfunded Income NII vs. NIR Contribution to NIR 1.32% 2.12% 9.16% 28.19% 22.49% 71.81% 64.91% Net fee and commision income Profits (losses) from financial investments Non-interest Revenue Net Interest Income Net Trading income Bank's share in the profits of associates 27
Slide 28: 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 29: Peer Analysis – Yearend 2014
Peer Analysis – Yearend 2014 EGP bn Total Assets EGP mn Net Income Gross Loans to Deposits 200 4,000 3,648 80% 63.87% 144 59.00% 150 3,000 60% 50.08% 48.96% 2,199 43.94% 102 37.69% 79 1,767 40% 100 2,000 64 1,195 44 724 682 50 31 1,000 20% 0 0 0% CIB QNBA AAIB HSBC Alex CAE CIB QNBA HSBC AAIB Alex C
Slide 30: Market Share Trend
Market Share Trend 10.00% 9.00% 8.77% 8.45% 8.47% 8.45% 8.52% 8.58% 8.52% 8.24% 8.30% 8.32% 8.25% 8.28% 8.27% 8.43% 8.41% 8.02% 8.10% 8.00% 7.58% 7.22% 7.91% 7.84% 7.04% 7.67% 7.65% 7.75% 7.51% 7.56% 7.00% 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% 5.00% Mar-
Slide 31: 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 Sep-10 Sep-10 * As of February 2015 LCY Dec-10 Dec-10 Mar-11 Mar-11 Household Jun-11 Jun-11 Sep-11 Sep-11 Household Dec-11 Dec-11 LCY Mar-12 Mar-12 Jun-12 5.74% 7.44% Jun-12 Loans Sep-12 L
Slide 32: Consumer Banking Snapshot
Slide 33: Assets Portfolio Growth
Assets Portfolio Growth Assets Assets Mix EGPbn 12 100% 5% 4% 6.70bn 10% 9% 8% 7% 7% 17% 13% 28%* 10% 9% 11% 10% 10% 10% 10% 10 10% 7% 7% 6% 7% 6% 75% 12% 10% 8% 10% 8 14% 29% 25% 26% 27% 28% 27% 30% 6 50% 31% 10.61 26% 8.90 9.48 9.47 4 7.96 6.66 7.18 25% 49% 49% 50% 53% 51% 5.17 46% 36% 40% 2 3.91
Slide 34: Assets By Segment
Assets By Segment YoY Performance QoQ Performance 6,000 4,764 5,000 4,764 3,954 4,000 4,500 4,336 Wealth Segment 2,000 4,000 - Dec-14 Mar-15 Mar-14 Mar-15 1,500 1,367 1,500 1,367 993 1,000 1,000 687 Business Banking 500 500 0 0 Mar-14 Mar-15 Dec-14 Mar-15 600 547 600 529 547 472 400 400 Plus Segment
Slide 35: 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 36: 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% 37% 63% 86% Retail Business Banking Retail Business Banking Revenue Gross Contribution 25% 28% 72% 75% Retail
Slide 37: 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 38: CIB Strategy
Slide 39: 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 40: e-Channels and Digital Banking Domain
e-Channels and Digital Banking Domain Initiatives Performance 100.0% 99.6% Introducing 99.5% 99.4% Mobile Banking 99.0% 98.6% 98.5% Introducing 98.0% Mobile Revamping Jan-15 Feb-15 Mar-15 Wallet and IVR Internet Banking Availability e-payments 98.0% 97% Launching 96% 96% 96.0% phase II of Piloting 9
Slide 41: Summary and Conclusion
Slide 42: Awards and Recognition
Awards and Recognition 2015 + Best Business Continuity Team by DRI International + Best Trade Finance Provider in Egypt by Global Finance + Best Foreign Exchange Providers in Egypt by Global Finance + Best Bank in Egypt 2015 - By Global Finance 2014 + Bank of the Year in Egypt 2014 - by The Banker +
Slide 43: 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 44: Why CIB?
Why CIB? Along with its The only “one- • Market leader subsidiaries and Affiliates Profitability • NPAT EGP 1bn stop shop” • Total revenues EGP 2.6bn Assets grew 17.5% from Continuous • NPL/Gross loans 3.64%* 2009 till 2014 Asset Quality Growth • Direct Coverage Ratio 171%* Highly reputable among St
Slide 45: 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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