Commercial International Bank Egypt CIB S A E (COMI) Q1 2024 earnings summary

Executive summary

• Q1 consolidated net profit was EGP 11.925bn, up 97% YoY; revenue rose 82% to EGP 21.824bn.

• Standalone net profit reached EGP 11.947bn, up 96% YoY, on net operating income of EGP 21.830bn, up 82%.

• March devaluation, 800 bps of policy-rate hikes, expanded IMF support and the $35bn Ras El Hekma deal shaped the quarter; FX access improved sharply after March 7.

• Consolidated total assets were EGP 977.148bn and customer deposits EGP 796.081bn at March-end.

Financial highlights

• Consolidated net interest income rose 73% to EGP 18.8bn; non-interest income was EGP 3.024bn, up 175%, and net operating income rose 82% to EGP 21.824bn.

• Consolidated profit before tax was EGP 17.474bn, up 95%; continuing-operations net profit was EGP 11.925bn, up 97%.

• Standalone non-interest expenses were EGP 2.840bn, up 42% YoY; impairment charges were EGP 1.482bn, up 56%.

• Standalone basic EPS was EGP 3.50, versus EGP 1.78 YoY; diluted EPS was EGP 3.46, versus EGP 1.76.

• Net profit was predominantly core income; management put the devaluation-related net profit impact at just over EGP 100m after offsetting items.

Outlook and guidance

• 2024 net income guidance increased to EGP 46bn; ROE was expected near 50%.

• 2024 local-currency working-capital loan growth forecast: 30%–40%; foreign-currency loan growth: 3%–7%.

• Local-currency CASA growth target was 20%–25%; CD issuance expected to slow unless needed to defend deposits.

• Blended NIM expected just above 10%, with local-currency NIM potentially reaching 13%; cost-to-income expected below 20%.

• Cost-of-risk budget remained EGP 6bn–EGP 6.5bn pending loan-growth clarity and central-bank approval to revise PD assumptions.