Final Results

Commercial Intnl Bank (Egypt) SAE
24 February 2008

Board of Directors Meeting

On February 21st, 2008



Item No. 4/2008

2007 Overview

Introduction

The Board of Directors is pleased to review the results for the year ending 31/
12/2007 at the Annual General Assembly Meeting.

On a consolidated basis, CIB and CI-CH achieved EGP 2,480 million of Net
Operating Income and EGP 1,289 million of Net Profit, representing 35.6% and
51.1% growth, respectively. These earnings results include a one time capital
gain of EGP 148 million related to the sale of a stake in CI Capital.  Excluding
this one time item, Net Profit growth would have been 33.7% year-over-year.

Despite strong competition within the banking sector during 2007, CIB not only
grew its market share, but also enhanced its profit margins.  This was the
result of prudent executive management and efficient operations.

To further enhance our competitiveness and efficiency, as well as improve our
delivery of services to our corporate banking clients, in 2007 we commenced our
migration to T-24, the top ranked universal banking system.  In addition, we
made significant advances in our retail banking business, including important
investments in IT and risk management infrastructure, proper segmentation of our
client base, and the development of a more customer-centric model.

During 2007, CIB sustained its position as the market leader and best bank in
Egypt. The Bank was recognized by Banker magazine as 'Bank of the Year 2007' as
well as for the execution of the 'Deal of the Year 2007.'  The Bank was also
selected as Global Finance Magazine's 'Best Bank in Egypt' for the tenth
consecutive year, 'Best Foreign Exchange Bank in Egypt' for the seventh straight
year, 'Best Trade Finance Bank in Egypt' for the third consecutive year, and '
Best Provider of Money Market Funds in Africa.'  In addition, the Bank received
the 'Straight Through Processing Excellence' Award from Deutsche Bank, and was
dubbed the 'Strongest Brand in Corporate Banking as well as (the) Third
Strongest Brand in Consumer Banking in Egypt,' as per AC Nielson.

Major credit rating agencies continued to rate CIB at the country's sovereign
ceiling, BB+/Stable/B, while emphasizing that the Bank's rating is capped by
Egypt's sovereign rating.

In order to avoid any possible conflict of interest with the Bank's strategy to
launch its own branded auto-finance business, CIB decided in 2007 to sell its
stake in Contact, the Bank's auto loan affiliate. This divesture, amounting to a
38.38% ownership position, came as part of the Bank's policy of continuous
development and expansion in our retail banking and consumer finance businesses.





In 2007, we remained focused on our main growth strategies.  Our two-fold
strategy is based on both organic growth and expansion via mergers and
acquisitions.  Although most of the organic growth is still driven by our
corporate and institutional clients, we have also effectively achieved organic
growth through the build-up of our retail banking business via branch expansion
and re-engineering. We continue to examine opportunities for mergers and
acquisitions growth and will aggressively pursue those opportunities that create
shareholder value.

The Board believes that the Bank is in an excellent position to meet the
challenges of the future, and that it enjoys significant competitive advantages
in its strategy to capture opportunities in the under-penetrated Egyptian
market.

Macro Overview

During 2007, the Egyptian economy witnessed one of its most impressive
performances over the past forty years. Egypt achieved a real GDP growth rate of
7.1%, which is the highest rate since the year of 1985.  This strong growth was
generated by reforms and solid macro-economic conditions, and illustrated by
Egypt's increase in rank to 85th from 127th in the economic freedom index.  More
significant was the honour bestowed by the World Bank, which ranked Egypt the
top reformer in the world during 2007 in its annual Doing Business report.

The nation's economic growth has been driven by productivity increases.  Egypt's
GDP growth has traditionally been driven by the mining, oil, agriculture and
services sectors; for the first time in many years, though, the Egyptian
manufacturing sector became a major growth contributor.

As a result of economic reforms, total investment grew by almost 34%, reaching
EGP 155 billion for the year 2006/2007, compared to EGP 116 billion in 2005/
2006. Even more encouraging was the fact that the private sector was the largest
contributor of these investments, a result of the government's reform efforts
and its privatization program.  Consequently, this led to the attraction of
all-time high FDI net inflows, reaching US$ 11 billion, an 80% increase compared
to 2006.  Despite this, we remain somewhat concerned regarding the country's
high budget deficit, its high levels of sovereign debt, and its above average
level of inflation, as well as with the sustainability of growth in investments.

The economy has started to reap the benefits of the banking reform program,
evidenced by the increase in total bank borrowings of EGP 382 billion in 2007
compared to EGP 344 billion in 2006, a growth rate of 11%.  Private corporate
borrowings were EGP 246 billion in 2007 versus EGP 225 billion in 2006,
representing a growth rate of 9%.

Private corporate FCY borrowing in particular served as an important catalyst
for growth, with an increase of 22% to a record US$ 14.8 billion.  More
impressively, this major increase was anchored by lending to both the private
industrial (13%) and services sectors (10%).

As a natural result of CIB's focus on private industrial and service businesses,
the Bank's average monthly market share of total bank borrowings climbed to
5.66% in 2007, versus 4.9% in 2006.  On the FCY lending market side, CIB's
average monthly market share increased slightly to 9.17% in 2007, up from 8.11%
in 2006.

On the deposits front, the Egyptian banking sector remains very liquid, as
evidenced by a 54% utilization ratio.  Banks hold significant funding bases that
can be injected into the economy to achieve even higher growth rates.  In fact,
total deposits surged by 19.5% to reach EGP 709 billion in 2007, compared to EGP
594 billion in 2006.

Financial Position

At CIB, we analyze our performance against a broad spectrum of measures,
including growth, asset quality, risk management, marketing, collaboration,
operations, controls and compliance. We continue to make significant progress on
all these fronts.  Although we have not yet reached many of our absolute
performance goals, the rapid pace of our improvement has made us very positive
about the future.

On a consolidated basis, CIB and CI-CH achieved EGP 2,480 million of Net
Operating Income and EGP 1,289 million of Net Profit in 2007.  The Bank itself
contributed EGP 2,347 million of Net Operating Income and EGP 1,232 million of
Net Profit, representing 33.5% and 53.7% year-over-year growth, respectively,
while CI-CH contributed EGP 133 million of Net Operating Income and EGP 57
million of Net Profit.  On a consolidated basis, CIB and CI-CH achieved a Return
on Average Assets of 3.0% and a Return on Average Equity of 33.1%.

On a standalone basis, Total Shareholder's Equity and Net Profit increased
significantly by 29.2% to EGP 4.3 billion (before appropriation) in 2007,
representing 9% of total assets. Furthermore, CIB's equity base remained
extremely solid, evidenced by a conservative Capital Adequacy Ratio of 11.7% at
the end of 2007, prior to the appropriation of profits.  If we account for the
proposed appropriation of profits, the Capital Adequacy Ratio was 14.7%.

CIB also continued its persistent efforts to maintain a high quality loan
portfolio. Local and international credit risk concerns highlight the urgency of
employing prudent risk management policies, capacity building, transparency and
full compliance with regulatory capital requirements.  The high level of quality
of CIB's loan portfolio reflects the seriousness with which we take these
principles, and represents one of the major sources of value we offer to our
shareholders.  CIB's Non Performing Loans to Total Exposure Ratio was only 3.0%
as of FYE 2007, down from 3.8% as of FYE 2006.  Our overall Loan Loss Provisions
Coverage Ratio was 195.7%.

Management's focus on efficiency was reflected in the decrease of the Cost to
Income Ratio from 38.4% in 2006 to 30.4% in 2007.  Despite increased competition
in the market, CIB managed to improve its Net Interest Margin from 3.14% in 2006
to 3.27% in 2007.

CIB's Return on Average Equity (ROAE) and Return on Average Assets (ROAA) have
continued to improve, reaching 32.3% and 2.9% in 2007, compared to 26.5% and
2.4%, respectively, in 2006.  These results, produced with the support of a
still-favorable credit environment, are promising but may be difficult to
maintain.  Increasing inflation pressures and the government's budget deficit
are still major concerns.



During 2007, the Bank hired two key officers from top financial institutions in
Compliance and Retail Risk Management to further enhance our management
strength.  Both individuals bring significant experience in their fields to CIB
and will work to build our capabilities in their respective areas.

The Board of Directors is optimistic about the Bank's outlook. This optimism is
substantiated by CIB's strong financial, operational and market position, and we
are confident that the Bank will continue to maintain its leading position.

Establishing the Retail Banking

CIB's Corporate Banking division has historically been the prime contributor of
the Bank's earnings and market share.  However, we aggressively expanded our
Retail Banking business in 2007.  The Bank's management team understood the need
for building its retail capabilities as a crucial prerequisite to protecting our
asset quality and ensuring sustainable growth.  In 2007, we focused on market
research, the creation of the retail business plan, branch re-engineering, human
capital recruitment, the construction of appropriate IT infrastructure, and the
drafting of operational procedures and manuals. In collaboration with an
international retail banking consultant, all business and support areas'
managers re-examined and re-tooled their mission and vision, operational and
service models, and target customer base.

During 2007, the retail business experienced significant developments in its
delivery and distribution channels.  Since we believe that attracting new
clients is the catalyst for our growth and expansion, we decided to open 45 new
outlets, initiated a sales team recruitment process, and enhanced our product
offering.

Despite a number of recent branch expansions in the banking sector, we believe
that Egypt's population is still under-banked.  This is evidenced by the
consistency of banking density over the past eight years of approximately 21,000
per branch. Total bank branches nationwide reached 3,116 branches in September
2007 (including 1,036 village banks), while the economically active population
increased to approximately 29 million individuals.

Achieved Quality Growth & Driving Future Growth

CIB's strategy and vision is to accomplish real, sustainable growth, but not
growth at any cost.  In the financial services world, it is easy to stretch for
growth by reducing underwriting standards or taking on increasingly higher
levels of risk.  However this runs counter to our principles.

The Bank continues to grow its earnings, but not at the expense of smart,
longer-term investments.  We continue to invest in the areas that will drive our
future growth. Last year CIB opened 19 new outlets, added more than 700 staff,
logged 75,000 hours of employee training, and spent over EGP 50 million on IT
platform modernization.  We have a significant investment plan with respect to
our systems and operating infrastructure, while simultaneously focusing on the
reduction of operating expenses.  Although there is obviously a short-term cost
associated with these investments, we believe the long-term benefits will be a
significant increase in efficiency and improved quality of our services.

Alternative Growth Strategies

In July 2007, CIB officially applied for a banking license from the Central Bank
of Algeria. The Algerian subsidiary is expected to benefit from the booming
Algerian economy, especially with many of our corporate customers expanding
their operations to Algeria.

In 2007, we also continued to act upon the mandate approved by the General
Assembly in March 2006 to pursue the growth of our institution through mergers
and acquisitions.

Appropriation of Income

The Board of Directors has proposed the distribution of a dividend per share of
EGP 1.00, in addition to increasing both the Legal Reserve by EGP 61.6 million
to reach EGP 432.9 million and the General Reserve by EGP 834 million to reach
EGP 1,382.5 million after approval by the shareholders at the Annual General
Meeting.  These actions reinforce the Bank's solid financial position as
evidenced by a Capital Adequacy Ratio of 14.7 %.

Corporate Social Responsibility

Given the sense of duty and gratitude CIB feels towards our society, and in
continuation of the Bank's history of initiatives within Egypt, we made a number
of donations and spearheaded several fundraising efforts in 2007.  CIB defines
corporate responsibility as the continuing commitment by our business to behave
ethically and contribute to Egypt's prosperity while improving the quality of
life of the workforce, their families and the local community and society at
large. Our organization seeks to build meaningful relationships between the
corporate sector and the rest of society.

The function of Corporate Social Responsibility is an important component of
CIB's business and is consistent with our mission statement's objective 'to grow
and help others grow.'  It also supports our objective of contributing to the
sustainable development of Egypt's economic growth.

Our community service covers various types of charitable organizations
classified into three major fields: Healthcare, Education, and Social Support &
Commitment.






Social Involvement:


 •  Misr El Khair Foundation

An organization that promotes education, healthcare services, and food for
Egyptians under the poverty line in Upper Egypt.


 •  Yahya Arafa Children's Charity Foundation

A foundation dedicated to helping children who require surgical operations
related to the bones and heart.


 •  Arafa Charity Foundation

A foundation dedicated to the provision of healthcare services for impoverished
citizens in the Delta region.


 •  Ein Shams University Hospital

A public hospital that serves disadvantaged individuals.


 •  Mahmoud Hospital

A hospital that serves individuals who travel into Cairo from surrounding towns
and seek medical attention.


 •  Khayrazad Organization for Social Care

An organization that provides financial support for public hospitals within
Cairo.


 •  Lung Diseases Center - Faculty of Medicine Menoufeya University

A public university hospital that serves underprivileged individuals in
Menoufeya.


 •  Center for Social & Preventive Medicine, Faculty of Medicine, Cairo
University

Our donation will be utilized for the renovation of this under-equipped
hospital, including an X-ray unit and a dentistry unit.


 •  Three public schools

Three schools have been chosen for renovation in disadvantaged communities in
Upper Egypt.






Key Financial Highlights:

The following is a brief overview of the major financial indicators on both
consolidated and stand-alone basis for the year ended 31/12/2007:


I.        Balance Sheet (in EGP billions):


a.      CIB Stand-Alone
                                         Balance as of          Balance as of      % Change
                                            31/12/2007             31/12/2006

Total Footings                           47.5                   37.4                27.--


Contingent Liabilities                   11.5                    6.9                66.7


Net Loan Book                            20.4                   17.5                16.6


Investments                               3.8                    5.4                (29.6)


Treasury Bills and Other Sovereign        2.9                    4.1                (29.3)
Securities


Total Deposits                           39.5                   31.6                25.--


Other Provisions                          0.4                    0.3                33.3


Total Shareholders' Equity & Net Profit   4.3                    3.--*              43.3
for the Period



b.      Consolidated CIB and CI-CH


                                         Balance as of          Balance as of      % Change
                                            31/12/2007             31/12/2006

Total Footings                           47.8                   37.6                27.1


Contingent Liabilities                   11.5                    6.9                66.7


Net Loan Book                            20.4                   17.5                16.6


Investments                               3.6                    5.--               (28.0)


Treasury Bills and Other Sovereign        3                      4.1                (26.8)
Securities


Total Deposits                           39.5                   31.6                25.--


Other Provisions                          0.4                    0.3                33.3


Total Shareholders' Equity & Net Profit   4.4                    3.4*               29.4
for the Period





II.      Income Statement (in EGP millions):

a.      CIB Stand-alone


                                         Balance as of          Balance as of      % Change
                                            31/12/2007             31/12/2006

Interest Income                          2,993.7                2,317.8             29.2


Interest Expense                         (1,796.7)              (1,378.2)           30.4


Total Fees & Commissions                 1001.7                   817.3             22.6


Net Profit after Tax                     1,232.4                  802               53.7





b.      Consolidate CIB and CI-CH


                                         Balance as of          Balance as of      % Change
                                            31/12/2007             31/12/2006

Interest Income                          2,998.4                2,317.3             29.4


Interest Expense                         (1,797.8)              (1,375.5)           30.7


Total Fees & Commissions                 1130.8                 886                 27.6


Net Profit after Tax                     1,288.5                852.6               51.1




                               --------------------------


* Excluding 2006 cash dividends





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