Commercial International Bank Egypt CIB S A E (COMI) Q2 2024 earnings summary

Executive summary

• Q2 consolidated revenue was EGP 24.4bn, up 81% YoY; net income reached EGP 15.6bn, up 96%, or EGP 4.59 per share.

• H1 consolidated revenue reached EGP 46.3bn, up 82%, and net income EGP 27.5bn, up 96%; standalone net profit was EGP 27.547bn, up 95%.

• Total assets and customer deposits each grew 27% YTD to EGP 1.057tn and EGP 861.720bn, respectively.

• Strategy prioritizes quality lending, household deposits, digital transformation, customer service, financial inclusion and responsible banking.

Financial highlights

• H1 consolidated net interest income rose 74% YoY to EGP 41.5bn; non-interest income increased 198% to EGP 4.7bn.

• H1 net operating income rose 82% to EGP 46.3bn and profit before tax rose 92% to EGP 38.4bn; non-interest expenses were EGP 5.8bn, up 35%, and impairment charges EGP 2.1bn, up 74%.

• Standalone H1 trade service fees reached EGP 1.65bn, up 40% YoY, with an outstanding balance of EGP 266bn.

• Higher dollar availability lifted daily customer FX sales to $20m-$40m from $3m-$4m a year earlier, supporting fee income; management cited no one-off items.

Outlook and guidance

• FY local-currency loan growth guidance was 25%-30%, with working-capital lending the near-term focus; foreign-currency loan growth was expected to be flat to low single digits.

• NIMs were expected to remain stable or edge higher in local and foreign currencies; net income guidance was EGP 50bn-54bn, with potential upside and an effective tax rate below 30%.

• Management forecast near-term ROA of 6% and ROE of 50%; longer-term normalized returns were framed as ROE of 30%-35% and ROA of 4.5%-5.5%.

• Digital adoption, automation, process redesign and centralization are intended to improve efficiency; priorities also include SME financing, transactional banking and expanding CIB Kenya as a trade-finance hub.