CIB records net income of EGP 2.35 bn for Q32020 according to post CBE probe financial results
Commercial International Bank reported net income of 2.35 billion Egyptian pounds for 3Q2020 as it released its first set of financial results after CIB Chairman Hisham Ezz Al-Arab left office in the wake of a probe by the Central Bank of Egypt that found “regulatory, compliance and governance concerns.”
Net income was down 26 percent on the same period last year, while revenues came in at EGP 6.65 bn for the quarter, a gain of 10 percent over 3Q2019.
However, The CIB financial results showed that the bank’s net profit decreased by 14 percent at the end of the third quarter of this year, to reach about 7.344 billion pounds, compared to 8.537 billion pounds at the end of the third quarter of 2019.
Moreover, the bank’s net profit recorded 2.346 billion pounds in Q3 2020, compared to 3.183 billion pounds during the same period a year earlier.
The results show no hole in the bank’s balance sheet after the CBE said in late October that a review had found significant issues with the bank’s credit cycle and internal controls
The bank’s bottom line would have grown 15 percent had CIB not taken provisions of 1.6 billion Egyptian pounds in the third quarter.
That figure is in line with the conservative position the bank has taken on provisions for some time now, with management saying in a comment, “Despite wide anticipations of a speedy global economic recovery, ambiguity continued to overshadow the overall outlook and hence the creditworthiness of clients.” Meanwhile, the bank has “maintained resilient asset quality,” the release notes.
Everything from revenues (+21% y-o-y in 9M2020 when excluding the impact of provisions) and net interest income (the main way the bank generates its top line, up 22%), to operating costs were all healthy.
In addition local currency loans were up 16 percent in the first nine months of the year.
Interestingly, lending to all but the bank’s very biggest clients was up as small and medium sized businesses borrowed 36 percent more YTD in local currency and LCY loans to individuals were up 29 percent in the same period.
