CI Capital Upgrades Credit Agricole Egypt To “Hold”

Credit Agricole Egypt’s quarterly profit got a boost from a rise in the bank’s net interest income, and beat the expectations of CI Capital, the brokerage said and upgraded the stock to “hold” from “underweight.”

Credit Agricole Egypt’s financial results posted a net profit of EGP 126,970 for the period from 01/01/2012 till 31/03/2012.

Noting that, it posted net profits of EGP 58,695 for the same period of the previous year.

“The first quarter showed some healthy operational trends, including stronger year-on-year banking income, and moderate expense growth coupled with a drop in loan impairment charges,” the brokerage wrote in a note.

At 13 percent, Credit Agricole’s capital adequacy ratio is well above the 10 percent CBE limit, with the majority in tier I capital, said the brokerage, which has a target price of 10 EGP on the bank’s stock.

Earnings at Egyptian banks were hurt last year by the uprising that toppled President Hosni Mubarak and the ensuing political turmoil and worker strikes which prompted the central bank to close banks for nearly two weeks.

Shares of the Cairo-based lender, closed at 9 EGP on Sunday on the Egyptian Stock Exchange, Reuters reported.