Commercial International Bank Egypt CIB S A E (COMI) Q2 2023 earnings summary

Executive summary

• Q2 revenue was EGP 13.5bn, up 96% YoY, and net income was EGP 7.987bn, up 127%; Q2 EPS was EGP 2.38.

• H1 revenue reached EGP 25.476bn, up 74% YoY, and net income was EGP 14.056bn, up 81%.

• Q2 ROAE was 49.1% versus 21.5% a year earlier; ROAA was 4.31% versus 2.68%.

Financial highlights

• H1 net interest income was EGP 23.893bn, up 74% YoY; Q2 net interest income was EGP 13.009bn, up 86% YoY and 20% QoQ.

• H1 non-interest income rose 68% to EGP 1.583bn; non-interest expense increased 31% to EGP 4.297bn, and loan-loss provision was EGP 1.182bn.

• Total assets reached EGP 796.3bn, up 25% YtD; net loans were EGP 220.9bn and customer deposits EGP 658.5bn, up 12% and 24% YtD, respectively.

• Deposits grew by more than EGP 75bn amid intense competition; CASA represented 53% of deposits.

Outlook and guidance

• FY23 net income guidance was EGP 26bn, subject to revision; management expected NIMs to remain flat at the record level for the rest of the year.

• FY23 deposit growth guidance was 30% or less, with a higher CASA mix prioritized; H2 loan growth was expected to be comparable to H1's EGP 17bn.

• Non-funded income was expected to show a similar growth rate, excluding EGP 700m of H1 capital gains that may not recur.

• Management viewed 30%–35% ROE as achievable over the medium term; ROE was expected to remain above 40% this year and potentially most of next year before moving into the 30s.

• Strategy priorities included quality loan and household deposit growth, transactional banking, deeper SME and retail penetration, automation, digital banking and operational efficiency.