CIB reports record profits this year

Commercial International Bank (CIB), Egypt’s largest private sector bank, reports record profits for the first half of 2014.

According to a statement released on Tuesday, the company’s net income reached LE932 million in the second quarter of 2014, a year-on-year increase of almost 39 percent. That brought net income for the first half of the year up to LE1.74 billion, a 31 percent increase over the same period last year.

Revenues for the quarter reached LE2.04 billion, bringing total revenue for the first half of 2014 up to LE3.79 billion, a 17 percent year-on-year increase.

Consolidated return on average equity climbed to 29.4 percent in the first half of 2014, compared to 26 percent in the same period last year.

"CIB achieved record top and bottom lines this quarter, generating the fourth consecutive quarter of growth in these key metrics. Quarterly revenue of over LE2 billion showed year-on-year growth of 18 percent, with Egyptian corporates starting to show signs of a turnaround and consumer banking continuing its strong performance in both asset and liability products,” said CIB Chairman and Managing Director Hesham Ezz al-Arab in a press statement.

The bank also reported that its loans to businesses and individuals reached LE49.2 billion by June 2014, while total deposits reached LE111 billion during the second quarter of the year.

Despite its strong performance, CIB suffers from poor scores by international ratings agencies, largely due to its exposure to Egyptian government debt. In May 2013, Standard & Poor’s cut the banks long-term counterparty credit rating to CCC+, seven levels below investment grade, raising it one notch to B- in November 2013. The agency noted that CIB’s standalone credit profile was rated slightly better, at B, still considered below investment grade.