Commercial International Bank Egypt CIB S A E (COMI) Q4 2023 earnings summary

Executive summary

• FY23 consolidated revenue reached EGP 56.0bn, up 70% YoY; net profit was EGP 29.669bn, up 83%, while attributable profit rose 84% to EGP 29.64bn.

• 4Q23 attributable profit increased 83% YoY to EGP 7.23bn.

• Total assets rose 31% YoY to EGP 834.9bn; customer deposits increased 27% to EGP 677.2bn.

Financial highlights

• FY23 net interest income reached EGP 52.93bn, up 71%; net fee and commission income was EGP 5.44bn, versus EGP 3.08bn in FY22.

• FY23 net interest margin was 7.55%, versus 6.10%; cost/income fell to 17.1% from 21.2%.

• Net loans were EGP 235.81bn versus EGP 196.6bn in FY22; shareholders’ equity rose 34% YoY to EGP 90.48bn.

• FY23 impairment charges for credit losses were EGP 4.27bn, up 169% YoY; non-interest expense rose 37% to EGP 10.08bn.

Outlook and guidance

• FY24 net income guidance is EGP 38bn-40bn, implying 33%-34% growth on the FY23 basis; ROE expected in the 40s, with guidance subject to updates.

• FY24 local-currency loan growth target is 20%; foreign-currency loan growth expected in the low single digits amid dollar-book repayments and prepayments.

• FY24 local-currency deposit growth target is 20%-25%, with 50%-55% of growth targeted in CASA; loan-to-deposit ratio expected to change little.

• Management expected another 200 bps of rate increases; local-currency NIM exceeded 10% in January, with potential to surpass 11% depending on rates and deposit competition.