Commercial International Bank Egypt CIB S A E (COMI) Q3 2024 earnings summary

Executive summary

• Consolidated 9M24 net profit was EGP 42.348bn, up 89% YoY; Q3 net profit was EGP 14.801bn, up 77% YoY and down 5% QoQ.

• Standalone Q3 net profit was EGP 14.874bn, up 96% YoY.

• Total assets rose to EGP 1,119.96bn at Sep. 30, 2024 from EGP 834.87bn at Dec. 31, 2023.

• Management cited organic growth and stable spreads, with continued focus on expansion and digitization.

Financial highlights

• Consolidated 9M24 net operating income was EGP 71.547bn, up 82% YoY; net interest income was EGP 65.683bn, up 74%, and non-interest income was EGP 5.864bn, up 268%.

• Consolidated Q3 net operating income was EGP 25.294bn, up 4% QoQ and 83% YoY; net interest income was EGP 24.086bn, up 6% QoQ and 75% YoY.

• Consolidated 9M24 net trading income was EGP 18.19bn vs EGP 3.17bn YoY; basic EPS was EGP 12.42 vs EGP 6.41.

• Standalone 9M24 operating expenses increased 40% YoY to EGP 8.795bn; impairment charges doubled to EGP 3.741bn.

• Non-interest income was EGP 1.137bn in standalone Q3, down 32% QoQ; non-interest expense was EGP 3.227bn, up 18% QoQ and 51% YoY.

Outlook and guidance

• FY2024 net profit guidance is EGP 55bn-57bn; total direct and contingent impairment-charge guidance remains EGP 6.5bn-7bn.

• FY2024 NIM guidance: local currency 13%, foreign currency 3.5%-3.8%, blended 9.5%-10%; management expects recent trends to continue through year-end.

• A less conservative ECL model is not expected in 2024; implementation is hoped for in Q1 2025, subject to discussions and accounting treatment.

• Strategic priorities include quality loan and household deposit growth, retail penetration, SME financing, digital adoption, automation, process redesign and CIB Kenya as a trade-finance hub.

• 2025 budget targets remain under discussion; CapEx demand could start in late 2025 or early 2026 if rates fall and utilization rises.