Final Results
Commercial Intnl Bank (Egypt) SAE
06 February 2007
Commercial International Bank (Egypt) S.A.E.
Financial Statements
December 31, 2006
COMMERCIAL INTERNATIONAL BANK (EGYPT) S.A.E
FINANCIAL POSITION
As of December 31, 2006
Amounts in L.E. Note 31-Dec-2006 31-Dec-2005
Assets
Cash & Due From Central Bank 4 3,742,876,516 3,077,734,972
Due From Banks 5 5,432,677,413 3,405,644,961
Treasury Bills & Other Notes Discountable at CBE 6 4,058,745,805 3,494,296,707
Trading Financial Investments 7 887,142,138 1,839,129,492
Available for Sale Financial Investments 8 3,178,163,512 2,183,075,763
Loans & Overdrafts (Net of Provision for
Doubtful Debts) 9&10 17,464,675,855 14,039,137,208
Held to maturity Financial Investments 11 822,284,338 1,098,310,684
Financial Investments in Subsidiary and
associated companies 12 475,836,460 114,592,987
Debit Balances and Other Assets 14 821,707,644 727,687,892
Deferred Tax 25 40,632,719 33,531,015
Fixed Assets (Net) 15 497,753,223 376,401,597
Total Assets 37,422,495,623 30,389,543,278
Liabilities & Shareholders' Equity
Liabilities
Due to Banks 16 1,212,524,120 719,680,104
Customer Deposits 17 31,600,227,198 24,870,258,033
Dividends & Profit Sharing 0 200,165,754
Credit Balances & Other Liabilities 18 843,634,575 1,025,908,291
Long Term Loans 19 99,166,861 98,271,001
Other Provisions 20 339,825,378 947,999,997
Total Liabilities 34,095,378,133 27,862,283,180
Shareholders' Equity
Issued & Paid- in Capital 1,950,000,000 1,300,000,000
Reserves 575,072,726 1,227,260,098
Total Shareholders' Equity 21 2,525,072,726 2,527,260,098
Net Profit of the Period 802,044,764 -
Total Shareholders' Equity & Net Profit 3,327,117,490 2,527,260,098
Total Liabilities & Shareholders' Equity 37,422,495,623 30,389,543,278
Contingent & commitments Liabilities 22 6,864,843,585 4,734,375,463
COMMERCIAL INTERNATIONAL BANK (EGYPT) S.A.E
INCOME STATEMENT
For the Period from Jan. 1 2006 to Dec. 31 2006
Amounts in LE. Note Dec. 31, 2006 Dec. 31, 2005
Interest Received from clients & Banks 1,749,822,089 1,407,279,746
Interest Received from Treasury Bills & Bonds 567,945,991 620,890,617
Interest Paid to Clients & Banks (1,378,162,881) (1,132,317,893)
Net Interest Income 939,605,199 895,852,470
Banking Fees & Commissions 399,573,750 342,974,826
Share Dividends 47,206,917 38,198,621
Foreign Exchange Income 23 108,888,845 142,301,237
Profit from Selling Investment 145,447,016 75,601,987
Trading Investment Revaluation Differences 16,534,014 (20,191,624)
Other Income 99,613,908 10,769,228
Total Fee Income 817,264,450 589,654,275
Net Operating Income 1,756,869,649 1,485,506,745
Provisions (194,312,570) (364,885,669)
Other Investment Revaluation Differences 24 (15,812,507) (35,559,923)
General & Administration Expenses &
Depreciation (604,812,445) (425,119,403)
Other Expenses (63,627,935) (49,296,365)
(878,565,637) (874,861,360)
Net Operating Profits 878,304,012 610,645,385
Non-Operating income 418,000 10,080
Net Profit before Tax 878,722,012 610,655,465
Income Tax (83,778,952) (34,049,494)
Deferred Tax 25 7,101,704 33,531,015
Net Profit After Tax 802,044,764 610,136,986
Earnings per share 27 3.64 2.77
COMMERCIAL INTERNATIONAL BANK (EGYPT) S.A.E
CASH FLOW STATEMENT 1a
For the Period from Jan. 1 2006 to Dec. 31 2006
Amounts in LE. Dec. 31, 2006 Dec. 31, 2005
Cash Flow From Operating Activities
Net Income Before Tax 878,722,012 610,655,465
Adjustments To Reconcile Net Income
Total Net Cash Provided by operating
Depreciation 93,436,004 68,239,568
Provisions (Additions during the period) 194,312,750 364,885,669
Trading Financial Investment Evaluation (16,534,014) 20,191,624
Other Financial Investment Evaluation 15,812,507 35,559,923
Utilization of Provision (Other than
Provision for Doubtful Debts) (330,276,044) (310,555)
FCY Revaluation Differences of Provision
Balances except Doubtful Debt (333,197) (7,813,953)
Gains From Selling of Fixed Assets (418,000) (10,080)
Profit From Selling of Investments (145,447,016) (75,601,987)
Paid Income Tax (34,049,494) 0
FCY Revaluation Difference of Long Term Loans 1,928,090 (2,615,545)
Operating Profit Before Changes in Operating
Assets and Liabilities 657,153,598 1,013,180,129
Net Decrease (Increase) in Assets
Due from banks (1,983,839,488) 1,242,232,176
Treasury Bills & Other Notes Discountable at CBE (651,338,798) 103,090,969
Trading Financial Investments 968,521,368 (1,186,119,215)
Available for Sale Financial Investments (865,453,240) 128,368,479
Loans & Overdrafts (3,591,677,947) (841,926,079)
Debit Balances & Other Assets (351,932,559) (82,271,212)
Net Increase (Decrease) In Liabilities
Due to Banks 492,844,016 495,030,762
Customer Deposits 6,729,969,165 891,052,059
Credit Balances & Other Liabilities (232,003,173) 536,710,553
Net Cash Provided from Operating Activities 1,172,242,942 2,299,348,621
COMMERCIAL INTERNATIONAL BANK (EGYPT) S.A.E
CASH FLOW STATEMENT 1b
For the Period from Jan. 1 2006 to Dec. 31, 2006
Dec. 31, 2005 Dec. 31, 2004
Cash Flow From Investment Activities
Purchase of Subsidiaries (363,430,845) (118,019,679)
Prepaid for Fixed Assets, premises and
Fitting-out of Branches (262,195,650) (173,201,917)
Purchase of Held-to-Maturity Investments 276,026,346 (943,035,406)
Net Cash (Used in) Investment Activities (349,600,149) (1,234,257,002)
Cash Flow From Financing Activities
Decrease in Long Term Loans (1,032,231) (20,155,711)
Dividends Paid (200,165,754) (285,661,900)
Net Cash (Used in) provided from
Financing Activities (201,197,985) (305,817,611)
Net cash & cash equivalent 621,444,808 759,274,008
Beginning Balance of cash and cash equivalent 3,401,951,193 3,325,602,325
Cash & Cash equivalent Balance At the
End of the period 4,023,396,001 4,084,876,333
Cash & Cash Equivalent are Represented as Follows
Cash and Due from Central Bank 3,742,876,516 3,077,734,972
Due From Banks 5,432,677,413 3,405,644,961
Treasury Bills & Notes Discountable at CBE 4,058,745,805 3,104,553,979
Due to Banks (5,303,514,833) (3,319,675,345)
Treasury Bills with Maturity More than
Three Months (3,907,388,900) (2,183,382,234)
Total Cash & Cash Equivalent 4,023,396,001 4,084,876,333
COMMERCIAL INTERNATIONAL BANK (EGYPT) S.A.E
STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY
For the Period from Jan. 1 2006 to Dec. 31 2006
2005 Capital Legal General Special Reserves for Profits of the Total
Reserves Reserves Reserves Inv. year
Revaluation
Beginning 1,300,000,000 300,621,785 344,311,172 162,709,903 15,472,698 0 2,123,115,558
Balance
Transfer to 0 30,506,849 379,464,383 0 0 (409,971,232) 0
Reserves
Distributed 0 0 0 0 0 (200,165,754) (200,165,754)
Profits
Net Profit 0 0 0 0 0 610,136,986 610,136,986
Usage Part 0 0 0 0 (5,826,692) 0 (5,826,692)
Ending 1,300,000,000 331,128,634 723,775,555 162,709,903 9,646,006 0 2,527,260,098
Balance
2006 Capital Legal Reserves General Reserves Special Reserves Profits of Total
Reserves for Inv. the year
Revaluation
Beginning Balance 1,300,000,000 331,128,634 723,775,555 162,709,903 9,646,006 0 2,527,260,098
Net Profit 0 0 0 0 0 802,044,764 802,044,764
Usage Part 0 0 0 0 (2,187,372) 0 (2,187,372)
Capital Increase 650,000,000 0 (650,000,000) 0 0 0 0
Ending Balance 1,950,000,000 331,128,634 73,775,555 162,709,903 7,458,634 802,044,764 3,327,117,490
COMMERCIAL INTERNATIONAL BANK (EGYPT) S.A.E
Recommended Appropriation Account for 2006
2006 2005
Net Profit 802,044,764 610,136,986
Profit Available for Distribution 802,044,764 610,136,986
To be distributed as follows:
- Legal Reserves 40,102,238 30,506,849
- First Dividends Share to Shareholders 97,500,000 65,000,000
- Staff Profit Sharing 80,204,476 61,013,699
- Board Members Bonus 12,030,671 9,152,055
- Second Dividends Share to Shareholders 97,500,000 65,000,000
- General Reserve 474,707,379 379,464,383
Total 802,044,764 610,136,986
4- Cash And Due From Central Bank
Dec. 31, 2006 Dec. 31, 2005
L.E L.E
- Cash & Cash Items 684,845,076 452,292,316
- Reserve Balance with CBE
(A) Current Accounts 1,489,221,888 1,387,524,020
(B) Time Deposits 1,568,809,552 1,237,918,636
Total Cash & Due From Central Bank 3,742,876,516 3,077,734,972
5- Due from Banks Dec. 31, 2006 Dec. 31, 2005
L.E L.E
(A) Central Bank
- Time Deposits 120,102,850 0
Total Due from central bank 120,102,850 0
(B) Local Banks
- Current Accounts 14,364,909 2,859,408
- Time Deposits 85,620,000 0
Total Due from Local Banks 99,984,909 2,859,408
( C ) Foreign Banks
- Current Accounts 114,797,671 83,110,208
- Time Deposits 5,097,791,983 3,319,675,345
Total Due From Foreign Banks 5,212,589,654 3,402,785,553
Total Due From Banks 5,432,677,413 3,405,644,961
6- Treasury Bills & Other Notes
Discountable at CBE
Dec. 31, 2006 Dec. 31, 2005
L.E L.E
- CBE Notes 0 692,000,000
- CBE CD's 3,315,000,000 0
- 91 Days Maturity 152,950,000 240,000,000
- 182 Days Maturity 137,150,000 450,475,000
- 364 Days Maturity 544,825,000 1,813,425,000
Total Treasury Bills 4,149,925,000 3,195,900,000
- Issuance Discount (91,179,195) (91,346,021)
Net Treasury Bills 4,058,745,805 3,104,553,979
- Reverse Repos 0 438,990,328
- Repos 0 (49,247,600)
4,058,745,805 3,494,296,707
7- Trading Financial Investments
Dec. 31, 2006 Dec. 31, 2005
L.E L.E
- Portfolio Managed By other parties 478,500,215 489,821,335
- Mutual Funds 239,839,987 1,141,913,352
- Bonds 95,195,095 157,163,803
- Shares 73,606,841 50,231,002
Total Trading Financial Investments 887,142,138 1,839,129,492
The Financial Trading Investments are represented as
follows :-
- Financial Investments Quoted on Stock Exchange 647,302,151 697,216,140
- Financial Investments Un-quoted on Stock Exchange 239,839,987 1,141,913,352
887,142,138 1,839,129,492
8 - Available for sale financial investments
Dec. 31, 2006 Dec. 31, 2005
(A) Shares L.E L.E
- Bank's Shares 11,046,621 9,706,354
- Corporate Shares 1,108,735,974 596,954,547
(B)Bonds
- Governmental Bonds 1,477,526,784 1,177,781,557
- Bank's Bonds 85,321,689 125,888,153
- Corporate Bonds 495,532,444 272,745,152
3,178,163,512 2,183,075,763
Available for sale financial investments
are represented as follows :-
- Financial Investments Quoted on Stock Exchange 1,941,629,448 1,688,822,485
- Financial Investments Un-quoted on Stock Exchange 1,236,534,064 494,253,278
3,178,163,512 2,183,075,763
The market Value of Available for sale Investments listed on the Capital market is L.E 2,288,247,619 as
of 31 Dec 2006 compared to LE. 1,856,718,818 as of December 31, 2005
An Investment value of L.E 43,217,435 in Middle East Turnaround fund transferred from Investment in
Subsidiary and Associated to Available for Sale Investments as they meet the rebooking terms and
conditions to that book
9 - Loans and Overdrafts
Dec. 31, 2006 Dec. 31, 2005
L.E L.E
- Discounted Bills 345,178,132 262,258,958
- Loans & Overdrafts to Customer 17,719,608,802 14,130,676,293
- Loans & Overdraft to Banks 652,533,908 774,845,225
18,717,320,842 15,167,780,476
- Unearned Bills discount (6,134,160) (6,259,830)
- Provision For Doubtful Debts (1,038,908,021) (948,900,512)
- Unearned Interest & commission (207,602,806) (173,482,926)
Net Loans & Overdrafts 17,464,675,855 14,039,137,208
10 - Provision For Doubtful Debts
Dec. 31, 2006
Specific General Total
LE LE LE
- Balance at beginning of the period 583,672,503 365,228,009 948,900,512
- Addition during the period 53,833,428 121,722,012 175,555,440
- written off debts recoveries 100,062,106 0 100,062,106
- Foreign currency revaluation diff. (1,264,639) 0 (1,264,639)
736,303,398 486,950,021 1,223,253,419
Usage during the period (228,447,476) 0 (228,447,476)
Transferred from Provisions of contingent 44,102,078 0 0
liability
Balance at the end of the period 551,958,000 486,950,021 1,038,908,021
Dec. 31, 2005
Specific General Total
LE LE LE
- Balance at beginning of the year 551,469,932 360,445,315 911,915,247
- Addition during the year 125,828,694 70,859,000 196,687,694
- written off debts recoveries 28,837,571 0 28,837,571
- Foreign currency revaluation diff. (17,955,087) 0 (17,955,087)
688,181,110 431,304,315 1,119,485,425
Usage during the Year (170,584,913) 0 (170,584,913)
Transferred from general to specific 66,076,306 (66,076,306) 0
Balance at the end of the Year 583,672,503 365,228,009 948,900,512
11 - Held to maturity Investments
Dec. 31, 2006 Dec. 31, 2005
L.E L.E
A. Bonds
- Housing Bonds (maturity Dec.2019) 215,000 215,000
- Corporate Bonds 789,569,338 928,840,360
- Treasury Bonds 0 144,255,324
B. Mutual Funds
- 250,000 Osoul Fund Certificates with market value LE 25,000,000 0
116.91 per certificates
- 50,000 Istethmar Fund Certificates with market value 5,000,000 0
LE 112.33 per certificates
- 25,000 Aman Fund Certificates with market value LE 2,500,000 0
102.80 per certificates
822,284,338 1,098,310,684
The held to maturity Financial Investments are represented as follows :-
- Investments Quoted on Stock Exchange 667,740,018 1,073,095,684
- Investments Un-quoted on Stock Exchange 154,544,320 25,215,000
822,284,338 1,098,310,684
- The market value of Held to Maturity Financial Investments reached EGP 672,356,231 on
31 Dec. 2006 while it reached EGP 1,071,811,698 on 31 Dec. 2005
12 - Financial Investments in subsidiary companies
Dec. 31, 2006 Dec. 31, 2005
LE % LE
A- Subsidiary Companies:
- Commercial International Holding Co. 368,390,000 %67 0 0
B- Associated Companies:
- Commercial International Brokerage co. 0 %0 %40
16,000,000
- Contact for Cars Trading 31,000,000 %38.4 %40
31,000,000
- Commercial International life insurance co. 32,000,000 %40 %40
32,000,000
- C I Assets Management 0 %0 %94
2,942,237
- Corplease co. 12,240,000 %40 %40
8,640,000
- Concept co. 0 %0 %40
500,000
- Giro-Nil 12,390,000 %30 12,390,000 %30
- Cotecna Trade Support 48,750 %40 48,750 %40
- Haykala for Investment 600,000 %40 300,000 %40
- Royal & Sun Alliance 10,872,000 %20 6,872,000 %20
- Egypt Factors 3,895,710 %39 0 0
- Egypt Int'l Trade & Investment 0 %0 3,900,000 %97.5
- International Co. for Appraisal & Collection 400,000 %40 0 0
- International Co. for Security & Services 4,000,000 %40 0 0
475,836,460 114,592,987
The Financial Investments in subsidiary companies are represented as follows :-
- Financial Investments listed on Stock Exchange 0
16,000,000
- Financial Investments Unlisted on Stock Exchange 475,836,460
98,592,987
475,836,460
114,592,987
- An Investment Value of EGP 43,217,435 in Middle East Turnaround fund was transferred from Investment in
Subsidiary and Associated to Available for Sale Investment as they meet the reclassifying terms
- C.I Holding Co. acquired the bank share in the Commercial International
Brokerage Co., Concept Co., and C.I Asset Management Co., and CIB share in the
said company reached 67%
13 -Capital Commitments (Financial Investments)
The capital commitments for the financial investments reached in date of Financial position L.E 398,017,342 as
follows:
Investments Value Paid Remaining
L.E L.E L.E
Available for sale Financial investments 608,984,428 228,308,226 380,676,202
Financial Investments in subsidiaries co. 34,125,600 16,784,460 17,341,140
14 -Debit Balances and Other Assets
Dec. 31, 2006 Dec. 31, 2005
L.E L.E
Accrued Interest receivable 286,829,442 240,339,882
Prepaid Expenses 28,645,872 21,415,800
Advances for Purchase of Fixed Assets 154,574,895 106,748,875
Assets Acquired for Settlement of Debts 78,927,129 132,445,347
Accounts Receivable & Other Assets 271,731,041 226,737,988
Accrued Balances of Customer Loans* 252,458,000 0
1,073,166,379 727,687,892
Deduct: Provision for General Risk & Risk (251,458,735) 0
Insurance**
Total Debit Balances and Other Assets 821,707,644 727,687,892
* These balances represent certain advances to customers that were made at one
of the branches in violation of the bank's standard operating procedures,
resulting in reclassifying these balances under 'other debit balances'.
Conservative provisions were adequately reallocated from other provisions to
meet the relevant operation risk
** Refer to Note No. 20
15 - Fixed Assets (Net of Accumulated Depreciation)
Dec. 31, 2006
Land Premises IT Vehicles Fitting Machines & Furniture & Total
-Out Equipment Furnishing
L.E L.E L.E L.E L.E L.E L.E L.E
Opening Balance 6,720,577 206,848,325 274,223,883 18,866,067 68,339,857 110,689,818 40,087,402 725,775,929
(3)
Additional 0 51,267,552 82,636,467 1,905,200 33,203,158 28,221,362 17,553,891 214,787,630
during the period
Closing Balance 6,720,577 258,115,877 356,860,350 20,771,267 101,543,015 138,911,180 57,641,293 940,563,559
(1)
Accu.Depreciation
at beginning of the - 67,625,757 143,542,529 13,941,594 51,838,506 53,969,382 18,456,564 349,374,332
period (4)
Current period - 10,941,843 47,803,921 1,856,210 13,432,263 13,008,115 6,393,652 93,436,004
Depreciation
Accu.Depreciation
at end of the 78,567,600 191,346,450 15,797,804 65,270,769 66,977,497 24,850,216 442,810,336
period (2)
End of period 6,720,577 179,548,277 165,513,900 4,973,463 36,272,246 71.933.683 32,791,077 497,753,223
net Assets (1-2)
Beginning of 6,720,577 139,222,568 130,681,354 4,924,473 16,501,351 56,720,436 21,630,838 376,401,597
period net assets
(3-4)
Depreciation rate 5% 20% 20% 33.3% 12.5% 10%
- Net fixed assets in financial position date includes LE. 47,715,652 represents fixed assets not registered yet and
registrations procedures in process
16 - Due to Banks
Dec. 31, 2006 Dec. 31, 2005
L.E L.E
(a) Central Bank
- Current Accounts 20,044,409 3,575,421
- Time Deposits 867,616,000 172,122,000
Total Due to Central Bank 887,660,409 175,697,421
( b )Local Banks
- Current Accounts 15,860,437 42,407,315
- Time Deposits 107,541,554 14,199,958
- Total Due to Local Banks 123,401,991 56,607,273
( c )Foreign Banks
- Current Accounts 201,260,025 487,375,410
- Time Deposits 201,695 0
- Total Due to foreign Banks 201,461,720 487,375,410
Total Due to Banks 1,212,524,120 719,680,104
17 -Customers' Deposits
Dec. 31, 2006 Dec. 31, 2005
L.E L.E
- Demand Deposits 8,836,825,720 6,919,662,686
- Time & Notice Deposits 11,033,225,620 6,918,653,016
- Saving & Deposits Certificates 5,190,298,212 5,618,281,210
- Saving Deposits 5,349,962,762 4,685,187,358
- Other Deposits 1,189,914,884 728,473,763
Total Customer Deposits 231,600,227,198 24,870,258,033
18 - Credit Balances and Other Liabilities
Dec. 31, 2006 Dec. 31, 2005
L.E L.E
- Accrued Interest Payable
109,691,056 109,102,166
- Accrued Expenses
34,131,526 24,077,927
- Accounts Payable 811,877,876
569,480,973
- Income Tax 82,305,727 34,049,494
- Other Liabilities
48,025,294 46,800,828
Total Credit Balances
And Other Liabilities 843,634,576 1,025,908,291
19 -Long Term Loans
Rate Maturity date Maturing Balance on Balance on
through
% next year Dec. 31, 2006 Dec. 31,
2005
KFW Bank 10.5 - 9 ten years 4,301,157 9,461,379 11,722,854
UNIDO 1 2011 2,958,082 10,483,577 11,765,933
Ministry of Agriculture (F.S.D.P) 3.5 - 5.5 3-5 years 43,586,946 70,617,084 63,316,886
depends on
maturity
date
Ministry of Agriculture (V.S.P) 3.5 - 5.5 3-5 years 20,000 30,000 233,328
depends on
maturity
date
Barclays bank (P.S.F.S) - - - - 1,232,000
Social Fund 3 months T 2010 3,325,000 8,574,821 10,000,000
/D
or 9%
which more
Total 54,191,185 99,166,861 98,271,001
20 -Other Dec. 31,
Provisions 2006
L.E
Opening Addition FCY Balance Usage Transfer Transferred to Closing
Balance During the Reval. During the Other Debit Balance
period Difference period Balances
- Provision for 621,677,559 - - (329,503,864) (65,000,000) - 227,173,695
Income Tax claims
- Provision for 1,728,828 178,750 (8,604) (772,180) - - 1,126,794
Legal Claims
- Provision for 138,878,000 17,073,560 (324,593) - (44,102,078) - 111,524,889
contingent
- Provision for 161,835,372 1,505,000 - - 65,000,000 (228,340,372) -
General risk *
- Provision for 23,880,238 0 (121,505) (640,370) 0 (23,118,363) -
Bank Risk insurance
Total Other 947,999,997 18,757,310 (454,702) (330,916,414) (44,102,078) (251,458,735) 339,825,378
Provisions
* These balances were reclassified under 'other debit balances' to meet the possible loss of value in certain assets
resulting from violation of the bank's standard operating procedures that were reclassified from 'Loans to Customers
'. Please refer to clarification # 14 for further details.
Dec. 31,
2005
L.E
Opening Addition FCY Balance Usage Closing
Balance During the Reval. During the Transfer Balance
Year Difference Year
- Provision for 506,791,890 114,885,669 0 0 0 - 621,677,559
Income Tax claims
- Provision for 2,111,720 0 (72,337) (310,555) 0 - 1,728,828
Legal Claims
- Provision for 99,584,497 43,312,306 (4,018,803) 0 0 - 138,878,000
contingent
- Provision for 154,043,142 10,000,000 (2,207,770) 0 0 - 161,835,372
General risk
- Provision for 25,395,281 0 (1,515,043) 0 0 - 23,880,238
Bank Risk insurance
Total Other 787,926,530 168,197,975 (7,813,953) (310,555) 0 - 947,999,997
Provisions
21 - Capital & Reserves
(a) Capital
- The Authorized Capital reached LE 5000 Million according to the Extraordinary General Assembly decision on
19 Mar. 2006
- Issued and Paid-in Capital reached EGP 1950 Million divided to 195 Million shares with par value of EGP 10
each
- Issued and Paid-in Capital has been increased from EGP 1300 Million to EGP 1950 Million on 31 Aug 2006
according to the Extraordinary General Assembly Approval on 26 June 2006 by transferring EGP 650 Million from the
General Reserve
- The Extraordinary General Assembly approved in the meeting of June 26, 2006 to activate a motivation &
rewarding program for the bank's employees & managers through employee share ownership plans (ESOPs) by issuing a
maximum of 5% of issued and paid-in capital at par value, through 5 years starting 31 Dec 2006 and delegated the
Board of Directors to establish the rewarding terms & conditions and increase the paid in capital according to the
program
(b) Reserves
- According to the bank statues 5% of net profit is to increase legal reserve until it reaches 50% of the
bank's issued and paid -in capital
- Concurrence of Central Bank of Egypt for usage of Special Reserve is required
- According to CBE regulations, a reserve has been formed for difference revaluation for financial
investment (available for sale) in foreign currency for preceding years (up to 2002), and this is used in case of
sale or decrease in the value of that investment, and the income statement will be carried with the difference
according to the issued instruction for such matter
22 - Contingent & Commitment Liabilities
Dec. 31, 2006 Dec. 31, 2005
L.E L.E
- Letters of Guarantee 5,636,795,144 3,897,197,061
- Letters of Credit ( import & export ) 865,777,545 550,778,552
- Customers Acceptances 418,344,500 361,630,866
- Forward Foreign Exchange contracts (bought) 1,353,283,099 666,250,179
- Forward Foreign Exchange contracts (sold) (1,352,168,802) (665,289,043)
- Swap Deals (bought) 1,048,742,044 1,240,421,184
- Swap Deals (sold) (1,105,929,945) (1,316,613,336)
- Option (Bought) 60,744,244 116,901,958
- Option (sold) (60,744,244) (116,901,958)
Total 6,864,843,585 4,734,375,463
23 - Foreign Exchange Profits (losses)
Dec. 31, 2006 Dec. 31, 2005
L.E L.E
profit from dealing with foreign currencies 103,752,327 105,101,970
Profit of revaluation of Monitoring
assets and Liabilities* 3,094,818 36,313,682
Forward deals revaluation profits / losses 1,254,271 61,108
profit revaluation of options 787,429 824,477
108,888,845 142,301,237
* Includes increase of L.E 5,223,316 due to the foreign currencies revaluation differences of the financial
Trading and Available for Sale Investments against an increase of L.E 2,916,734 and L.E 2,306,582
respectively in Financial Investments Revaluation Differences items in Income Statement
24 - Other Financial investments evaluation differences
Dec. 31, 2006 Dec. 31, 2005
L.E L.E
- Available for sale Financial investments (15,812,507) (35,559,923)
Total (15,812,507) (68,518,066)
25 - Deferred Tax Assets & Liabilities
Assets (Liabilities) Assets (Liabilities) Dec.
31, 2005
Dec. 31, 2006
L.E. 000
L.E. 000
- Fixed Assets Depreciation (19,762,207) (11,069,858)
- Other Provisions (excluding Loan Loss, 50,517,106 37,488,888
contingent liabilities and Income Tax Prov.)
- Other Items (other investment revaluation 9,877,820 7,111,985
difference)
- Total Deferred Tax Assets (Liabilities) 40,632,719 33,531,015
26- Reconciliation of Effective Tax Rate
Dec. 31, 2006 Dec. 31, 2005
L.E. L.E.
- Profit Before Tax 878,722,012 610,655,465
- Tax Rate 20% 20%
- Income Tax 175,744,402 122,131,093
- Non-Deductible Expenses 9,773,223 891,924
- Tax Exemptions (127,760,292) (138,950,159)
- Effect of Provisions 18,919,914 16,445,621
Income Tax 76,677,248 518,479
Effective Tax Rate 8.73% 0.08%
27 - Earning Per Share
Dec. 31, 2006 Dec. 31, 2005
L.E. L.E.
- Net Profit for the Year 802,044,764 610,136,986
- Board Members' Bonus (12,030,671) (9,152,055)
- Staff Profit Sharing (80,204,476) (61,013,699)
- Shareholders' Share in Profits 709,809,616 539,971,232
- Number of Shares 195,000,000 195,000,000
Earning Per Share 3.64 2.77
28 - Other Income
Other Income account reflects an extraordinary gain of EGP 71.7 million related to the sale of
some assets acquired in settlement of debts over its historical cost
29 - General, Administrative Expenses & Depreciation
The General & Administrative Expense accounts reflect non-recurring expenses of EGP 79 million
resulting from cancellation of the employee provident fund to improve and simplify the employee
remuneration policy without future burden on the bank's administrative expenses, in addition to
settlement part of staff loans of CIB shares to employees.
30 - Assets & Liabilities Maturities
Maturity Maturity
Within one year Over One Year
Assets
- Cash and Due from Central Bank 3,742,876,516 -
- Due from Banks 5,432,677,413 -
- Treasury Bills & Notes Discountable at CBE 4,149,925,000 -
- Trading Investments 887,142,138 -
- Available for sale investments 3,178,163,512 -
- Customers' Loans & Overdrafts 7,884,826,655 9,972,357,473
- Banks' Loans & Overdrafts 760,089 651,773,819
- Held to maturity Investments - 822,284,338
- Investments in subsidiary companies - 475,836,460
- Debit Balances and Other Assets 821,707,644 -
26,098,078,967 11,922,252,090
Liabilities
- Due to Banks 1,212,524,120 -
- Customer Deposits 25,519,665,229 6,080,561,969
- Long Term Loans 54,191,185 44,975,676
- Credit Balances and Other Liabilities 843,634,576 -
27,630,015,110 6,125,537,645
31 -Interest Rate
The average interest rates applied for Assets and Liabilities during the period are 6.58 %
& 3.76 % respectively .
32 -Tax Status
- The bank's corporate income tax position has been examined and settled with the Tax
Authority from the start up of operations up to the end of year 1984.
- Corporate income tax for the years from 1985 up to 2000 were paid according to the Tax appeal
Committee decision and the final settlement is under discussion in the court of law.
- The bank's corporate income tax position has been examined and settled with the Tax
Authority from 2001 up to 2002.
- Corporate Income Tax for the years from 2003 up to 2004 were paid according to the appeal
committee decision & the final settlement is under discussion with the tax appeal committee.
- The bank pay salary tax according to concerning domestic regulations and laws,
and the final settlement is under discussion in the court of law .
- The bank pay stamp duty tax according to concerning domestic regulations and laws,
and the final settlement is under discussion in the court of law .
33 - Distribution of Assets, Liabilities and Contingent Accounts
Assets
Local Currency Foreign Currency
1 - Due From Banks 134,459,726 5,298,217,687
2 - Loans & Overdrafts
%
Agriculture Sector 66,717,811 0.4
Industrial Sector 8,473,712,963 45.3
Trading Sector 699,970,060 3.7
Services Sector 7,068,165,160 37.8
Household Sector 1,448,619,186 7.7
Other Sectors 960,135,662 5.1
Total Loans & Overdrafts
(Including unearned interest) 18,717,320,842 100.00
Unearned Discounted Bills (6,134,160)
Provision for Doubtful Debts (1,038,908,021) 5.6
Unearned Interest & Commission (207,602,806)
Net Loans & Overdrafts 17,464,675,855
Liabilities
Local Currency Foreign Currency
1- Due to Banks 164,822,033 1,047,702,087
2 - Customers' Deposits %
Agriculture Sector 37,147,013 0.1
Industrial Sector 3,278,846,058 10.4
Trading Sector 1,322,064,847 4.2
Services Sector 6,842,344,799 21.7
Household Sector 17,065,943,122 54
Other Sector 3,053,881,359 9.7
Total Customers' Deposits 31,600,227,198 100.00
Contingent Accounts
Local Currency Foreign Currency
- Letters of Guarantee 1,742,629,625 3,894,165,519
- Letter of Credit ( import & export ) 4,628,734 861,148,811
- Customers Acceptances 93,711,557 324,632,943
- Forward Foreign Exchange Contracts 366,323,877 986,959,222
(bought)
- Forward Foreign Exchange Contracts (234,021,777) (1,118,147,025)
(sold)
- Swap Deals (bought) 19,752,320 1,028,989,724
- Swap Deals (sold) (692,887,663) (413,042,283)
- Option (bought) - 60,744,244
- Option (sold) - (60,744,244)
1,300,136,674 5,564,706,911
34- Foreign Currencies Positions
Dec. 31, 2006 Dec. 31, 2005
in thousand L.E in thousand L.E
- Egyptian Pound 5,550 19,852
- US Dollar (54,691) (32,337)
- Sterling pound 2,408 (3,095)
- Japanese Yen 27,721 (1,133)
- Swiss Franc 369 227
- Euro 14,894 16,850
35- Mutual Funds
(1) Osoul Fund
- The bank established an accumulated return mutual fund under license no. 331 issued from Capital Market
Authority on 22/02/2005. CI-Asset Management Co. - joint stock co.- manages the Fund.
- The number of certificates reached 39,322,629 with redeemed value L.E 4,597,208,556
- The market value per certificate reached L.E 116.91 on 28/12/2006
- The Bank portion got 2,139,588 certificates with redeemed value of L.E 250,139,233
(2) Istethmar Fund
- The bank established the second accumulated return mutual fund under license no. 344 issued from
Capital Market Authority on 26/02/2006. CI Asset Management Co. - joint stock co- manages the fund
- The number of certificates reached 2,160,804 with redeemed value LE 242,723,113
- The market value per certificate reached LE 112.33 on 28/12/2006
- The Bank portion got 108,044 certificates with redeemed value LE 12,136,583
(3) Aman Fund (CIB & Faisal Islamic Bank Mutual Fund)
- The bank & Faisal Islamic Bank established an accumulated return mutual fund under license
no. 365 issued from Capital Market Authority on 30/07/2006. CI Assets Management Co. -joint stock co.- managed
the fund
- The number of certificates reached 2,150,217 with redeemed value LE 221,042,308
- The market value per certificate reached LE 102.80 on 28/12/2006
- The Bank portion got 53,760 certificates with redeemed value LE 5,526,528
36- Transactions With Related Parties
All Banking transactions with related parties are conducted in accordance with the normal
banking practices and regulations applied to all other customers without any discrimination.
Due from Banks 167,409,569
Loans & Overdrafts 518,729,815
Investment in subsidiary companies 475,836,460
Due to banks 3,078,591
Customer Deposits 103,777,092
Contingent Accounts 77,501,203
37- Comparative Figures
The Comparative Figures are amended to confirm with the reclassification of the current year and
General Assembly held in 19 Mar, 2006 decisions, for ratifying the Appropriation account of year 2005.
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