Annual Financial Report

RNS Number : 6999B

Commercial Intnl Bank (Egypt) SAE

06 April 2017

Commercial International Bank (Egypt) S.A.E.

Consolidated IFRS Financial Statements

December 31, 2016


Consolidated statement of profit or loss for the year ended December 31, 2016

	Notes	Dec. 31, 2016	Dec. 31, 2015
		EGP Thousands	EGP Thousands

Interest and similar income		19,144,218	14,765,337
Interest and similar expense		(9,127,195)	(6,651,056)
Net interest income	3	10,017,023	8,114,281

Fee and commission income		1,965,529	1,932,054
Fee and commission expense		(417,573)	(299,696)
Net fee and commission income	4	1,547,956	1,632,358

Dividend income	5	34,236	35,062
Net trading income	6	1,315,182	710,398
Profits (Losses) on financial investments	22	(25,533)	270,998
Goodwill impairment	40	(217,078)	-
Administrative expenses	7	(3,119,378)	(2,561,964)
Other operating expenses	8	(1,233,620)	(566,304)
Impairment charge for credit losses	9	(892,874)	(1,682,439)
Bank's share in the profits of associates	12	2,989	27,829
Profit before income tax from continuing operations		7,428,903	5,980,219

Current income tax expense		(2,017,034)	(1,949,694)
Deferred income tax	10.2	(76,849)	136,047
Net profit from continuing operations		5,335,020	4,166,572

Discontinuing Operations
Profit from discontinuing operations (Net of tax)	39	127,376	61,115
Net profit for the year		5,462,396	4,227,687

Attributable to:
Equity holders of the parent		5,448,248	4,227,001
Non-controlling interest		14,148	686
Net Profit for the year		5,462,396	4,227,687

Earnings per share	11
Basic attributable to equity holders of the parent		4.72	3.69
Diluted attributable to equity holders of the parent		4.65	3.64

Earnings per share from continuing operations
Basic attributable to equity holders of the parent		4.61	3.63
Diluted attributable to equity holders of the parent		4.55	3.58

The accompanying notes from 1 to 41 form an integral part of these consolidated financial statements.

Consolidated statement of other comprehensive income for the year ended December 31, 2016

	Notes	Dec. 31, 2016	Dec. 31, 2015
		EGP Thousands	EGP Thousands
Profit for the year		5,462,396	4,227,687
Other comprehensive income
Other comprehensive income to be reclassified to profit or loss in subsequent periods:
Net (Loss)/gain on available-for-sale financial assets		22,219	(1,609,226)
Cumulative foreign currencies translation differences	32	8,588	-
Other comprehensive income for the year		30,807	(1,609,226)
Total comprehensive income for the year		5,493,203	2,618,461

Attributable to:
Equity holders of the parent		5,479,055	2,617,775
Non-controlling interest		14,148	686

The accompanying notes from 1 to 41 form an integral part of these consolidated financial statements.

Consolidated statement of financial position as at December 31, 2016
	Notes	Dec. 31, 2016	Dec. 31, 2015
	Notes	EGP Thousands	EGP Thousands
Assets
Cash and balances with central bank	13	10,522,040	9,848,954
Due from banks	14	58,011,034	21,002,305
Treasury bills and other governmental notes	15	39,177,184	22,130,170
Financial assets held for trading	16	2,445,134	5,848,377
Loans and advances to banks, net	17	159,651	38,443
Loans and advances to customers, net	18	85,224,148	56,797,576
Non-current assets held for sale	39	4,890,438	1,066,270
Derivative financial instruments	19	269,269	80,995
Financial investments
- Available for sale	21	5,447,291	46,289,075
- Held to maturity	21	53,924,936	9,261,220
Investments in associates	23	36,723	159,983
Other assets	24	5,434,563	4,789,291
Goodwill	40	-	217,078
Intangible assets	40	651,041	651,041
Deferred tax assets	10.2	181,308	258,157
Property and equipment	25	1,324,808	1,096,760
Total assets		267,699,568	179,535,695
Liabilities and equity
Liabilities
Due to banks	26	3,008,996	1,600,769
Due to customers	27	231,740,795	155,234,416
Non current liabilities held for sale	39	3,684,676	371,622
Derivative financial instruments	19	331,091	145,735
Other liabilities	29	4,268,774	3,164,106
Current Tax Liability		2,017,034	1,949,694
Long term loans	28	160,243	131,328
Provisions	30	1,514,057	861,761
Total liabilities		246,725,666	163,459,431
Equity
Issued and paid in capital	31	11,538,660	11,470,603
Reserves	32	3,448,737	149,480
Reserve for employee stock ownership plan (ESOP)		343,460	248,148
Retained earnings		5,509,967	4,160,601
Total equity attributable to equity holders of the parent		20,840,824	16,028,832
Non-controlling interest		133,078	47,432
Total equity		20,973,902	16,076,264
Total liabilities , equity and non-controlling interest		267,699,568	179,535,695
The accompanying notes from 1 to 41 form an integral part of these consolidated financial statements.

Consolidated statement of changes in shareholders' equity

	Attributable to equity holders of the parents
Dec. 31, 2016	Issued and paid in capital	Reserve for employee stock ownership plan (ESOP)	Retained earnings	Reserves	Total	Non-controlling interest	Total equity
							EGP Thousands
Beginning balance	9,081,734	177,766	3,165,298	1,905,930	14,330,728	49,195	14,379,923
Profit for the year	-	-	4,227,687	-	4,227,687	686	4,228,373
Other comprehensive income	-	-	-	(1,609,226)	(1,609,226)	-	(1,609,226)
Total comprehensive income	-	-	4,227,687	(1,609,226)	2,618,461	686	2,619,147
Capital increase	2,388,869	-	-	(2,388,869)	-	-	-
Reserve for employee stock ownership plan (ESOP)	-	133,395	-	-	133,395	-	133,395
Dividend	-	-	(1,053,752)	-	(1,053,752)	(1,081)	(1,054,833)
Transferred to reserves	-	(63,013)	(2,178,632)	2,241,645	-	-	-
Change during the year	-	-	-	-	-	(1,368)	(1,368)
Balance at 31 December 2015	11,470,603	248,148	4,160,601	149,480	16,028,832	47,432	16,076,264
Profit for the year	-	-	5,448,248.0	-	5,448,248	14,148	5,462,396
Other comprehensive income :
Net (Loss)/gain on available-for-sale financial assets	-	-	-	22,219	22,219	-	22,219
Cumulative foreign currencies translation differences	-	-	-	8,588	8,588	-	8,588
Total comprehensive income	-	-	5,448,248	30,807	5,479,055	14,148	5,493,203
Capital increase	68,057	-		-	68,057	-	68,057
Reserve for employee stock ownership plan (ESOP)	-	187,000	-	-	187,000	-	187,000
Dividend	-	-	(1,467,346.0)	-	(1,467,346)	(1,394)	(1,468,740)
Transferred to reserves	-	(91,688)	(3,176,762.0)	3,268,450	-	-	-
Change during the year	-	-	545,226.0	-	545,226	72,892	618,118
Balance at 31 December 2016	11,538,660	343,460	5,509,967	3,448,737	20,840,824	133,078	20,973,902

Consolidated cash flow statement for the year ended December 31, 2016

	Notes	Dec. 31, 2016	Dec. 31, 2015
	Notes	EGP Thousands	EGP Thousands

Cash flow from operating activities
Profit before income tax from continued operations		7,428,903	5,980,219
Profit before income tax from discontinued operations	40	158,040	71,161
Adjustments to reconcile net profit to net cash provided by operating activities
Fixed assets depreciation		288,057	197,988
Impairment charge for credit losses		892,874	1,682,439
Other provisions charges		150,847	135,866
Trading financial investments revaluation differences		(269,283)	353,590
Available for sale and held to maturity investments exchange revaluation differences		(2,219,961)	(96,638)
Goodwill impairment		217,078	-
Financial investments impairment charge		82,428	140,751
Utilization of other provisions		(3,696)	(17,242)
Other provisions no longer used		(78,405)	(505)
Exchange differences of other provisions		583,550	13,330
Profits from selling property, plant and equipment		(1,682)	(564)
Profits from selling financial investments		(35,193)	(163,270)
Profits (losses) from selling associates		90,447	(285,431)
Shares based payments		187,000	133,395
Impairment (Released) charges of associates		(131,799)	(27,829)
Associates financial investments revaluation differences		683	1,048
Operating profits before changes in operating assets and liabilities		7,339,888	8,118,308

Net decrease (increase) in assets and liabilities
Due from banks		264,072	(13,346,479)
Treasury bills and other governmental notes		(16,057,258)	5,497,825
Trading financial assets		3,672,526	(2,439,249)
Derivative financial instruments		(2,918)	(20,247)
Loans and advances to banks and customers		(29,440,654)	(9,714,737)
Other assets		(4,450,111)	(1,273,556)
Due to banks		1,408,227	469,384
Due to customers		76,506,379	33,259,457
Income tax obligations paid		(1,949,694)	(1,814,609)
Other liabilities		4,354,673	15,319
Net cash provided from operating activities		41,645,130	18,751,416

Cash flow from investing activities
Payment for purchase of subsidiary and associates		(12,036)	(868,119)
Proceeds from selling subsidiary and associates		176,161	334,451
Payment for purchases of property, plant, equipment and branches constructions		(560,631)	(304,401)
Proceeds from redemption of held to maturity financial investments		4,094	3,919,074
Payment for purchases of held to maturity financial investments		(44,667,810)	(4,019,548)
Payment for purchases of available for sale financial investments		(3,334,122)	(25,392,460)
Proceeds from selling available for sale financial investments		46,370,851	5,315,438
Proceeds (payments) from real estate investments		(2,989)	884,094
Goodwill impairment		-	217,078
Intangible Assets		-	651,041
Net cash used in investing activities		(2,026,482)	(19,263,352)

Cash flow from financing activities
Increase (decrease) in long term loans	28,915	(111,550)
Dividend paid	(1,463,450)	(1,563,646)
Capital increase	68,057	94,748
Payment related to finance lease	(12,380)	(12,380)
Net cash used in financing activities	(1,378,858)	(1,592,828)


Net increase (decrease) in cash and cash equivalent during the year	38,239,790	(2,104,764)
Beginning balance of cash and cash equivalent	14,435,901	16,540,665
Cash and cash equivalent at the end of the year	52,675,691	14,435,901

Cash and cash equivalent comprise:
Cash and balances with central bank	10,522,040	9,848,954
Due from banks	58,011,034	21,002,305
Treasury bills and other governmental notes	39,177,184	22,130,170
Obligatory reserve balance with CBE	(5,438,235)	(8,268,202)
Due from banks with maturities more than three months	(11,408,904)	(13,664,965)
Treasury bills with maturity more than three months	(38,187,428)	(16,612,361)
Total cash and cash equivalent	52,675,691	14,435,901