Performance indicators at the Commercial International Bank (CIB) of Egypt showed that its loans portfolio increased to EGP 62.6bn at the end of December 2015, with a year- on-year growth rate of 17.8%, according to a report issued by the research department at Beltone Financial Holding.
In its report, Beltone stated that the loans portfolio of CIB Egypt has remained static from September to December 2015, a growth rate below what was expected by the bank’s administration.
Beltone stated that its forecast projected CIB to increase the volume of its loans portfolio by the end of December 2015 by 25% in a year-on-year comparison.
Additionally, the report stated that CIB Egypt registered only a nominal increase in the rate of deposit in December, a 0.6% increase since September 2015 and a 27.3% in a year-on-year comparison.
Beltone noted that weak growth of deposits at CIB was expected after the public banks raised interest rates for saving certificates to 12.5%.
According to the report, the bank had a 40.3% loans to deposits ratio in December 2015.
The majority of CIB Egypt’s profits that it sets aside to cover non-performing debts came from selling its 45% share in Commercial International Life Insurance (CIL), according to the Beltone report.
Non-performing loans at CIB Egypt retreated by 10% in December 2015, compared to September 2015, where they registered EGP 2.5bn.
The bank has set aside EGP 562m of its reserves to cover non-performing debts in December 2015, compared to the EGP 122m it set aside in December 2014, and the EGP 472m in September 2015.
According to Beltone, the non-performing debts coverage ratio at the bank increased to 188% in December, compared to 155% in September 2015.
As for the bank’s profits in the last quarter of 2015, Beltone noted that CIB Egypt registered a strong growth rate of 11%, compared to the last quarter of 2014.
CIB Egypt registered profits of EGP 1.15bn in the last quarter of 2015, over 7% more than the EGP 1.07bn Beltone forecasted.
CIB Egypt’s market price amounted to EGP 38.58bn, with a price of EGP 33.63 per share.
Beltone estimated the fair value of the share at EGP 52.08, expecting it to increase by 54.9%.