FY 2013 Earning Release

RNS Number : 8209Z
Commercial Intnl Bank (Egypt) SAE
12 February 2014
 



News Release

 

11 February 2014

 

COMMERCIAL INTERNATIONAL BANK ("CIB") REPORTS FOURTH-QUARTER 2013
CONSOLIDATED REVENUE OF EGP 1.74 BILLION AND NET INCOME OF EGP 757 MILLION,
UP 29% FROM FOURTH-QUARTER 2012

 

RECORD FULL-YEAR 2013 CONSOLIDATED REVENUE OF EGP 6.98 BILLION AND
NET INCOME OF EGP 3.01 BILLION, OR EGP 2.67 PER SHARE, UP 35% FROM 2012

 

 

·     Strong Fourth-Quarter 2013 Consolidated Financial Results:

o  Net income of EGP 757 million, up 29% year-on-year (YoY)

o  Revenues of EGP 1.74 billion, up 15% YoY

o  Efficiency (cost-to-income) ratio of 26.2%, an improvement of 21% YoY

 

·     Record full-year 2013 Consolidated Financial Results:

o  Record net income of EGP 3.01 billion, or EGP 2.67 per share, up 35% YoY

o  Record revenue of EGP 6.98 billion, up 31% YoY

o  Record standalone net interest margin [1] of 5.36%

o  Efficiency ratio improved to 26.5% from 30.6% in 2012, on higher staff productivity

·     Robust Balance Sheet:

o  Total tier capital[2] of EGP 9.50 billion (before appropriation), or 13.55% of risk-weighted assets, of which 12.46% is Tier I capital.

o  Balance sheet growth of 21% YoY

o  High quality of funding, with customer deposits comprising 95% of total liabilities

o  Standalone non-performing loans were 3.96% of the gross loan portfolio

o  Loan loss provision balance of EGP 2.86 billion covered non-performing loans 1.6x

 

·     Sector-Leading Full-Year Returns:

o  Consolidated return on average equity[3] of 26.5% versus 22.9% in the year-ago period

o  Consolidated return on average assets of 2.90% versus 2.48% in the year-ago period

 

·     Supporting our Economy

o  Funding to businesses and individuals reached EGP 45.3 billion by the end of 2013

o  Deposits increased 23% in 2013 to EGP 96.8 billion, with deposit market share of 7.6%[4], up from 7.2% in December 2012

o  In 2013, CIB's operations generated EGP 1.52 billion in corporate, payroll and other taxes

 

 

 

·     Committed to our Community

o  In the fourth quarter, the CIB Foundation donated over EGP 14 million to sponsor the entire second pediatric floor at the Magdi Yacoub Heart Foundation's Aswan Heart Center.

o  The CIB Foundation participated once again in the annual One Million Blankets National Campaign, and contributed to the annual operating cost of the intensive care unit at the Abou El Reesh El Mounira Children's Hospital and four units at the Ain Shams Demerdash Hospital.

o  CIB donated EGP 52 million to the Federation of Egyptian Banks' initiative to help develop underprivileged areas throughout Egypt, under the supervision of the Ministry of Urban Development.

 

·     Awards & Rankings

o  CIB has continued to receive global recognition and international awards for its outstanding performance. Awards were received from Global Finance, The Banker, Euromoney, Global Investor and EMEA Finance.

 

 

 

CAIRO - Commercial International Bank (EGX: COMI) today reported full-year 2013 consolidated net income of EGP 3.01 billion, or EGP 2.67 per share, an increase of 35% over 2012 net income of EGP 2.23 billion, or EGP 2.34 per share.

Hisham Ezz Al-Arab, Chairman and Managing Director of CIB, commented: "CIB closed another consecutive record year in 2013, generating consolidated net income of over EGP 3 billion on revenues of EGP 6.98 billion, up 31% over 2012.

"We are proud that Egyptian savers turned to CIB in these uncertain times, trusting us with over EGP 18 billion in additional deposits during the year. We, in turn, demonstrated our commitment to the market through the addition of 17 new branches to our network, more than any of our peers.

"Despite a declining rate environment, full-year performance indicators remained impressive, achieving record margin and efficiency ratios. This was greatly aided by the strong growth in our non-interest income to just under EGP 2 billion, driven by our trade services and foreign exchange businesses.

"The Bank took this opportunity to strengthen its capital base while boosting distribution to shareholders by 20%. Today, CIB is ideally placed to take advantage of any opportunities that arise as market stability returns in the coming year."

 

 

FOURTH-QUARTER AND FULL-YEAR 2013 FINANCIAL HIGHLIGHTS

 

REVENUES

Fourth-quarter consolidated revenues were EGP 1.74 billion, 15% over the EGP 1.51 billion recorded in the last quarter of 2012.

Fourth-quarter standalone revenues were EGP 1.71 billion, 22% over third-quarter 2013 and up 25% from the EGP 1.37 billion achieved in fourth-quarter 2012.

Full-year consolidated revenues were EGP 6.98 billion, up 31% from the EGP 5.34 billion achieved last year. Standalone revenues were EGP 6.48 billion, up 27% from EGP 5.11 billion in 2012.

Net Interest Income

Fourth-quarter standalone net interest income generated EGP 1.37 billion, 27% higher than the year-ago period, leading to net interest margin (NIM) of 5.46%, up 51 basis points from fourth-quarter 2012.

Full-year standalone net interest income was EGP 5.05 billion, 29% higher than the year-ago period. 2013 NIM was 5.36%, 62 basis points higher than the year-ago period despite a falling interest rate environment (following a sharp decline in sovereign yields and three consecutive 50 basis point cuts by the CBE).

Non-Interest Income

Non-interest income generated a substantial portion of the Bank's growth in 2013. Consolidated non-interest income for the fourth quarter was EGP 377 million. Non-interest income for the full year was EGP 1.92 billion, up 34% over the year-ago period.  Key growth drivers were record years for trade services, dealing room profits and increased debt capital market activity.

 

OPERATING EXPENSE

Consolidated operating expense for fourth-quarter 2013 was EGP 475 million, 2% more than the third quarter, and 6% less YoY. The consolidated efficiency ratio decreased to 26.2% versus 33.2% in fourth-quarter 2012.

Full-year operating expense was EGP 1.88 billion, up 14% YoY and well below the top-line growth rate, leading to an improvement in 2013's efficiency ratio to 26.5%, versus 30.6% in 2012.

 

 

 

LOANS

CIB's total consolidated gross loan portfolio was EGP 45.3 billion at the end of 2013, adding EGP 949 million, or 2%, over year-end 2012.

CIB maintained the highest loan market share of all private-sector banks, at 8.27% as of October 2013 (latest published figures).

 

DEPOSITS

CIB had a record year in deposit gathering: client deposits were EGP 96.8 billion, up EGP 18.1 billion (23%) over year-end 2012 and up 3% on a quarterly basis. Deposit market share was 7.63% (as of October 2013), up 40 basis points since December 2012 and maintaining CIB's leading position amongst all private-sector banks.

The consolidated gross loan-to-deposit ratio was 46.8% at the end of 2013, versus 56.3% for the comparable year-ago period.

 

ASSET QUALITY

CIB maintained its resilient asset quality. Standalone non-performing loans represented 3.96% of the gross loan portfolio. 

Loan loss provision expenses were EGP 350 million in the fourth quarter, bringing full-year 2013 loan loss provision expense to EGP 916 million. The direct coverage ratio increased to 159% from 143% in third-quarter 2013 and 120% at year-end 2012, based on a total loan loss provision balance of EGP 2.86 billion.

 

CAPITAL AND LIQUIDITY

 

Total tier capital (before appropriation) was EGP 9.50 billion[5] in December 2013, or 13.55% of risk weighted assets (EGP 70.1 billion). Tier I capital was EGP 8.73 billion, or 12.46% of risk-weighted assets and 92% of total tier capital.

CIB maintained its conservative liquidity position in both local and foreign currencies, remaining comfortably above CBE requirements and Basel III guidelines (on a pro forma basis).



 

 

KEY METRICS AND BUSINESS UPDATES[6]

 

INSTITUTIONAL BANKING

·     #1 private-sector bank in Egypt in terms of revenues, net income, deposits, loans, total assets, book value and market capitalization

·     End-of-period loans retained were EGP 38.3 billion, up 2% from year-end 2012

·     End-of-period deposits were EGP 26.3 billion, up 34% from year-end 2012

·     Gross outstanding contingent business reached EGP 16.2 billion, up 9% YoY

 

CONSUMER BANKING

·     End-of-period loans retained were EGP 7.2 billion, 8% over year-end 2012

·     End-of-period deposits were EGP 70.7 billion, 19% over year-end 2012

·     CIB was one of the few banks to expand its network in 2013, opening 17 branches to reach a total of 125 branches and 27 units throughout Egypt, supported by a network of 555 ATMs and 8,683 points of sale

 

SECURITIES BROKERAGE, ASSET MANAGEMENT & INVESTMENT BANKING

·     CI Capital recorded revenues of EGP 141 million in 2013, up 16% YoY.

·     Brokerage maintained its leading position among brokerage companies during the fourth quarter and ranked second throughout 2013.

·     Asset Management ended the year with 10.5% market share and maintained its top three performance ranking among Egyptian asset managers for the fourth year in a row.

 

·     Investment banking achieved a record year after closing a number of landmark transactions in the local market.

CONSOLIDATED FINANCIAL HIGHLIGHTS


Income Statement


 4Q13

 3Q13

QoQ Change

 4Q12

YoY Change

 FY-13

 FY-12

YoY Change


 EGP million

 EGP million

(4Q13 vs. 3Q13)

 EGP million

(4Q13 vs. 4Q12)

 EGP million

 EGP million

(FY13 vs. FY12)

Net Interest Income

   1,363

   1,281

6.4%

   1,082

25.9%

     5,054

          3,914

29.1%

Non-Interest Income

       377

        520

-27.5%

        432

-12.6%

     1,923

          1,430

34.4%

Net Operating Income

   1,740

   1,801

-3.4%

   1,514

14.9%

     6,976

          5,344

30.6%

Non-Interest Expense

2.4%

-6.2%

14.0%

Provisions

365.3%

71.9%

50.1%

Net Profit before Tax

       915

   1,262

-27.5%

        804

13.8%

     4,176

          3,081

35.6%

Income Tax

-55.2%

-32.5%

33.2%

Deferred Tax

              9

NM

           16

NM

            12

                 33

-63.6%

Net Profit

       757

        920

-17.8%

        587

28.9%

     3,006

          2,227

35.0%

Minority Interest

              0

NM

NM

                    1

NM

Net Profit After Minority

       757

        920

-17.7%

        588

28.9%

     3,006

          2,226

35.1%











Key Financial Indicators


 4Q13

 3Q13

QoQ Change

 4Q12

YoY Change

 FY-13

 FY-12

YoY Change




(4Q13 vs. 3Q13)


(4Q13 vs. 4Q12)



(FY13 vs. FY12)

Profitability









ROAE

26.7%

33.2%

-19.7%

24.1%

10.5%

26.5%

22.9%

15.8%

ROAA

2.92%

3.62%

-19.5%

2.62%

11.4%

2.90%

2.48%

16.8%

Efficiency









Cost-to-Income

26.2%

26.0%

0.7%

33.2%

-21.3%

26.5%

30.6%

-13.4%

Liquidity









Gross Loans-to-Deposits

46.8%

47.9%

-2.4%

56.3%

-17.0%

46.8%

56.3%

-17.0%

Asset Quality









NPLs-to-Gross Loans

3.98%

4.01%

-0.6%

3.63%

9.7%

3.98%

3.63%

9.7%

Capital Adequacy Ratio[7]

13.6%

14.8%

-8.7%

15.7%

-13.7%

13.6%

15.7%

-13.7%










 

STANDALONE FINANCIAL HIGHLIGHTS


Income Statement


 4Q13

 3Q13

QoQ Change

 4Q12

YoY Change

 FY-13

 FY-12

YoY Change


 EGP million

 EGP million

(4Q13 vs. 3Q13)

 EGP million

(4Q13 vs. 4Q12)

 EGP million

 EGP million

(FY13 vs. FY12)

Net Interest Income

   1,365

   1,279

6.7%

   1,079

26.5%

     5,050

          3,901

29.5%

Non-Interest Income

       349

        129

170.1%

        289

21.0%

     1,433

          1,207

18.7%

Net Operating Income

   1,714

   1,408

21.7%

   1,368

25.3%

     6,482

          5,108

26.9%

Non-Interest Expense

10.1%

10.5%

19.5%

Provisions

365.3%

71.9%

50.1%

Net Profit before Tax

       920

        929

-1.0%

        762

20.7%

     3,840

          3,053

25.8%

Income Tax

-54.5%

-32.2%

33.4%

Deferred Tax

-97.8%

           16

NM

                 34

NM

Net Profit

       760

        531

43.2%

        544

39.7%

     2,615

          2,203

18.7%











Key Financial Indicators


 4Q13

 3Q13

QoQ Change

 4Q12

YoY Change

 FY-13

 FY-12

YoY Change




(4Q13 vs. 3Q13)


(4Q13 vs. 4Q12)



(FY13 vs. FY12)

Profitability









ROAE

26.0%

18.6%

39.7%

21.5%

20.7%

22.3%

21.8%

2.5%

ROAA

2.92%

2.09%

40.1%

2.42%

20.8%

2.51%

2.45%

2.7%

NIM[8]

5.46%

5.25%

4.0%

4.96%

10.2%

5.36%

4.74%

13.1%

Efficiency









Cost-to-Income

24.8%

29.0%

-14.4%

29.2%

-14.9%

26.1%

28.0%

-6.7%

Liquidity









Gross Loans-to-Deposits

47.0%

57.5%

-18.3%

56.3%

-16.5%

47.0%

56.3%

-16.5%

Asset Quality









NPLs-to-Gross Loans

3.96%

3.98%

-0.6%

3.63%

9.1%

3.96%

3.63%

9.1%

Direct Coverage Ratio

158.8%

142.7%

11.3%

119.9%

32.5%

158.8%

119.9%

32.5%

 

BALANCE SHEET

Balance Sheet Highlights

Consolidated

Standalone

Dec-13

Dec-12

YtD Change

Dec-13

Dec-12

 YtD Change

 EGP million

 EGP million


 EGP million

EGP million


Cash & Due from Central Bank

         4,805

     5,394

-10.9%

         4,796

5,394

-11.1%

Due from Banks

         9,004

     8,048

11.9%

         8,894

7,958

11.8%

Treasury Bills & Governmental Notes

      23,665

     8,018

195.2%

      23,655

7,978

196.5%

Trading Financial Assets

         2,286

     1,515

50.9%

         2,246

1,472

52.6%

Available-for-Sale Investments

      23,378

  21,177

10.4%

      23,364

21,162

10.4%

Net Loans & Overdrafts

      41,720

  41,877

-0.4%

      41,970

41,877

0.2%

Financial Derivatives

              103

          137

-25.0%

              103

137

-25.0%

Held-to-Maturity Investments

         4,197

     4,216

-0.4%

         4,187

4,206

-0.4%

Financial Investment in Subsidiaries

              193

          165

16.7%

              599

938

-36.1%

Other Assets

         4,254

     3,409

24.8%

         3,938

3,283

19.9%

Total Assets

   113,607

  93,957

20.9%

   113,752

94,405

20.5%

Due to Banks

         1,373

     1,715

-19.9%

         1,373

1,715

-19.9%

Customer Deposits

      96,846

  78,729

23.0%

      96,940

78,835

23.0%

Other Liabilities

         3,380

     2,701

25.2%

         3,324

2,545

30.6%

Total Liabilities

   101,600

  83,144

22.2%

   101,637

83,094

22.3%

Total Shareholders' Equity

         8,953

     8,538

4.9%

         9,500

9,108

4.3%

Net Profit for the Period

         3,006

     2,226

35.1%

         2,615

2,203

18.7%

Shareholders' Equity & Net Profit

      11,960

  10,765

11.1%

      12,115

11,311

7.1%

Minority Interest

                 47

             48

-0.2%

                   -  

-  


Total Liabilities & Shareholders' Equity

   113,607

  93,957

20.9%

   113,752

94,405

20.5%

 

 

http://www.rns-pdf.londonstockexchange.com/rns/8209Z_-2014-2-11.pdf 


[1] Based on managerial accounts

[2] CBE regulations announced in December 2012 stipulate that banks report capital adequacy according to a Basel II framework

[3] Equity includes profit of the year

[4] As of October 2013 (latest published figures)

[5] 2013 profits are excluded from the capital base as per regulations. Total tier capital would be EGP 11.4 billion subject to the approval of the appropriation proposal

[6] Loan and deposit balances based on managerial accounts

[7] Before appropriation of 2013 profits.

[8] Based on Managerial accounts


This information is provided by RNS
The company news service from the London Stock Exchange
 
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