FY 2019 Consolidated Financial Results

RNS Number : 8248B

Commercial Intnl Bank (Egypt) SAE

04 February 2020

 

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Commercial International Bank (Egypt) S.A.E.
Consolidated Financial Statements
December 31, 2019

Consolidated balance sheet as at December 31, 2019

Notes Dec. 31, 2019 Dec. 31, 2018 EGP Thousands EGP Thousands Assets Cash and balances with central bank 15  28,273,962 20,058,974 Due from  banks 16  28,353,366 46,518,892 Loans and advances to banks, net 18  625,264 67,703 Loans and advances to customers, net 19  119,321,103 106,309,205 Derivative financial instruments 20  216,383 52,289 Investments - Financial investments securities 21  197,541,651 157,585,611 - Investments in associates 22  107,693 106,558 Other assets 23  9,748,143 9,563,018 Intangible assets 40  -   238,715 Deferred tax assets (Liabilities) 31  350,339 308,370 Property, plant and equipment 24  2,204,464 1,651,875 Total assets 386,742,368 342,461,210 Liabilities and equity Liabilities Due to banks 25  11,810,607  7,259,819 Due to customers 26  304,448,455  285,296,869 Derivative financial instruments 20  282,588  132,858 Current tax liabilities  4,639,364  3,625,579 Other liabilities 28  8,396,794  6,501,553 Other loans 27  3,272,746  3,721,529 Provisions 29  2,011,369  1,694,607 Total liabilities 334,861,923 308,232,814 Equity Issued and paid up capital 30  14,690,821  11,668,326 Reserves 33  24,344,815  12,184,667 Reserve for employee stock ownership plan (ESOP) 33  963,152  738,320 Retained earnings * 33  11,881,657  9,637,083 Total equity 51,880,445  34,228,396 Total liabilities and equity 386,742,368  342,461,210 The accompanying notes are an integral part of these financial statements. (Review report attached) *Including net profit for the current period Chairman and Managing Director

Consolidated income statement for the period ended December 31, 2019 Note Dec. 31, 2019 Dec. 31, 2018 EGP Thousands EGP Thousands Continued Operations Interest and similar income 42,600,957  37,403,709 Interest and similar expense (21,022,338)  (19,260,190) Net interest income 6 21,578,619  18,143,519 Fee and commission income  3,451,688 3,402,616 Fee and commission expense  (1,170,893) (991,957) Net fee and commission income 7  2,280,795 2,410,659 Dividend income 8 53,423 25,958 Net trading income 9 688,059 1,089,076 Profits (Losses) on financial investments  21 450,697 402,067 Administrative expenses 10 (5,048,922) (4,223,959) Other operating (expenses) income 11 (1,794,750) (1,589,675) Intangible assets amortization 40 (238,715) (130,208) Impairment release (charges) for credit losses 12 (1,435,460) (3,076,023) Bank's share in the profits of associates 1,135 27,419 Profit before income tax 16,534,881 13,078,833 Income tax expense 13 (4,639,364) (3,625,579) Deferred tax assets (Liabilities) 31 - 13 (94,522) 128,740 Net profit for the period 11,800,995 9,581,994 Bank shareholders 11,800,995 9,581,994 Earning per share 14 Basic 7.33 5.94 Diluted 7.28 5.89 Hisham Ezz Al-Arab Chairman and Managing Director

Consolidated statement of other comprehensive income for the period ended December 31, 2019

Notes Dec. 31, 2019 Dec. 31, 2018 EGP Thousands EGP Thousands Net profit for the period 11,800,995 9,581,994 Other comprehensive income items that will not be reclassified to the Profit or Loss: Net change in fair value of debt instruments measured at fair value through other comprehensive income 212,967 57,026 Other comprehensive income items that is or may be reclassified to the profit or loss: Net change in fair value of debt instruments measured at fair value through other comprehensive income 5,944,586 (2,164,847) Cumulative foreign currencies translation differences 2,501 - Expected credit loss for fair value of debt instruments measured at fair value through other comprehensive income (184,921) - Total other comprehensive income for the period 17,776,128 7,474,173 Consolidated cash flow for the period ended December 31, 2019 Notes Dec. 31, 2019 Dec. 31, 2018 EGP Thousands EGP Thousands Cash flow from operating activities Profit before income tax from continued operations 16,534,881 13,078,833 Adjustments to reconcile net profit to net cash provided by operating  activities Fixed assets depreciation 24 576,544 390,830 Impairment charge for credit losses (Loans and advances to customers) 12 1,610,878 3,076,023 Other provisions charges 29 461,869 101,501 Impairment charge for credit losses (due from banks) 12 9,503 - Impairment charge for credit losses (financial investments) 12 (184,921) - Impairment charge for other assets 23 (93,313) 316,763 Exchange revaluation differences for financial assets at fair value through OCI 20 1,593,030 (102,991) Intangible assets amortization 238,715 130,208 Impairment charge financial assets at fair value through OCI 21 - 39,561 Utilization of other provisions 29 (28,135) (2,114) Other provisions no longer used 29 (6,910) (17,670) Exchange differences of  other provisions 29 (110,062) (2,269) Profits from selling property, plant and equipment 11 (1,439) (1,045) (Profits) losses from selling financial investments 21 (497,894) (441,628) Shares based payments 464,539 408,346 Bank's share in the profits of associates (1,135) (27,419) Operating profits before changes in operating assets and liabilities 20,566,150 16,946,929 Net decrease (increase) in assets and  liabilities Due from banks 15 (8,870,547) (13,661,577) Treasury bills and other governmental notes 41 - 4,640,524 Financial assets at fair value through P&L 21 2,318,924 4,557,492 Derivative financial instruments 20 (2,910) (66,141) Loans and advances to banks and customers 18 - 19 (14,533,328) (21,255,952) Other assets 42 163,933 (2,263,465) Due to banks 25 4,550,788 5,381,901 Due to customers 26 19,151,586 34,573,817 Income tax obligations paid (3,625,579) (2,778,973) Other liabilities 28 1,895,241 1,025,022 Net cash provided from operating activities 21,614,258 27,099,577 Cash flow from investing activities Payment for purchases of associates - (10,575) Payment for purchases of property, plant, equipment and branches constructions (1,303,181) (874,708) Proceeds from selling property, plant and equipment 11 1,439 1,045 Proceeds from redemption of financial assets at amortized cost 21 43,937,957 5,532,271 Payment for purchases of financial assets at amortized cost 21 (76,516,842) (33,995,313) Payment for purchases of financial assets at fair value through OCI 21 (50,954,311) (12,670,761) Proceeds from selling financial assets at fair value through OCI 54,855,966 2,059,341 Net cash used in investing activities (29,978,972) (39,958,700) Cash flow from financing activities Increase (decrease) in long term loans 27 (448,783) 46,793 Dividend paid (2,700,544) (2,143,177) Capital Increase 105,413 50,315 Net cash used in (provided from) financing activities (3,043,914) (2,046,069) Net increase (decrease) in cash and cash equivalent during the year (11,408,628) (14,905,192) Beginning balance of cash and cash equivalent 34,303,645 49,208,837 Cash and cash equivalent at the end of the year 22,895,017 34,303,645 Cash and cash equivalent comprise: Cash and balances with central bank 15 28,273,962 20,058,974 Due from banks 16 28,370,183 46,518,892 Treasury bills and other governmental  notes 17 27,634,062 41,999,252 Obligatory reserve balance with CBE 15 (22,397,310) (13,526,763) Due from banks with maturities more than three months (10,593,903) (10,733,386) Treasury bills with maturity more than three months (28,391,977) (50,013,324) Total cash and cash equivalent 22,895,017 34,303,645

Consolidated statement of changes in shareholders' equity for the period ended December 31, 2018

Dec. 31, 2018 Issued and paid up capital Legal reserve General reserve General risk reserve* Special reserve Capital reserve Reserve for financial assets at fair value through OCI Banking risks reserve IFRS 9 risk reserve Retained earnings Reserve for employee stock ownership plan Cumulative foreign currencies translation differences Total Shareholders Equity Minority Interest Total EGP Thousands Beginning balance 11,618,011 1,332,807 9,000,023 - 20,645 11,815 (1,642,958) 3,634 1,411,549 6,193,879 489,334 - 28,438,739 - 28,438,739 Capital increase 50,315 - - - - - - - - - - - 50,315 50,315 Transferred to reserves - 377,486 3,776,192 - - 606 - - - (3,994,924) (159,360) - - - - Dividend paid - - - - - - - - - (2,143,177) - - (2,143,177) - (2,143,177) Net profit of the period - - - - - - - - - 9,581,994 - - 9,581,994 - 9,581,994 Net unrealised gain/(loss) on AFS - - - - - - (2,107,821) - - - - - (2,107,821) - (2,107,821) Transferred (from) to  bank risk reserve - - - - - - - 689 - (689) - - - - - Cost of employees stock ownership plan (ESOP) - - - - - - - - - - 408,346 - 408,346 - 408,346 Balance at the end of the year 11,668,326 1,710,293 12,776,215 - 20,645 12,421 (3,750,779) 4,323 1,411,549 9,637,083 738,320 - 34,228,396 - 34,228,396

Consolidated statement of changes in shareholders' equity  for the period ended December 31, 2019

Dec. 31, 2019 Issued and paid up capital Legal reserve General reserve General risk reserve* Special reserve Capital reserve Reserve for financial assets at fair value through OCI Banking risks reserve IFRS 9 risk reserve Retained earnings Reserve for employee stock ownership plan Cumulative foreign currencies translation differences Total Shareholders' Equity Minority Interest Total EGP Thousands Beginning balance 11,668,326 1,710,293 12,776,215 - 20,645 12,421 (3,750,779) 4,323 1,411,549 9,637,083 738,320 - 34,228,396 - 34,228,396 Effect of applying IFRS 9** - - - 117,251 - - 1,889,928 - - - - - 2,007,179 - 2,007,179 Transferred to general risk reserve - - - 1,432,194 (20,645) - - - (1,411,549) - - - - - - Beginning balance after the impact of initial application 11,668,326 1,710,293 12,776,215 1,549,445 - 12,421 (1,860,851) 4,323 - 9,637,083 738,320 - 36,235,575 - 36,235,575 Capital increase 3,022,495 - (2,917,082) - - - - - - - - - 105,413 - 105,413 Transferred to reserves - 477,736 6,615,296 - - 1,045 - - - (6,854,370) (239,707) - - - - Dividend paid - - - - - - - - - (2,700,544) - - (2,700,544) - (2,700,544) Net profit of the year - - - - - - - - - 11,800,995 - - 11,800,995 - 11,800,995 Net unrealised gain/(loss) on financial assets at fair value through OCI - - - - - - 6,157,553 - - - - - 6,157,553 - 6,157,553 Transferred (from) to  bank risk reserve - - - - - - - 841 - (841) - - - - - Provision for impairment of debt instruments investments - - - - - - (184,921) - - - - - (184,921) - (184,921) stock ownership plan (ESOP) - - - - - - - - - - 464,539 - 464,539 - 464,539 Cumulative foreign currencies translation differences - - - - - - - - - (666) - 2,501 1,835 - 1,835 Balance at the end of the year 14,690,821 2,188,029 16,474,429 1,549,445 - 13,466 4,111,781 5,164 - 11,881,657 963,152 2,501 51,880,445 - 51,880,445 *The special reserve, general bank risk reserve and IFRS 9 risk reserve - were consolidated in the general risk reserve as per the instructions of the Central Bank of Egypt dated 26 February 2019 **The initial application impact (disclosure in page number 17) The initial application impact is LE 109,697 thousand and the tax effect is LE 7,554 thousand

 

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