CI Capital Holding [CICH]
Egypt / Non-Banking Financials / Q3 2021 Results
12M PT: EGP6.0 (+57%)
set on 14 Jan 2021
Investment Rating: Overweight | Risk Rating: Medium
Stellar Investment Banking (IB) platform performance; diversity of Non-Banking Financial Services (NBFS) platform saves the day
CI Capital Holding’s [CICH] 9M 2021 results showed a bottom line of EGP412mn (+43% y/y). This robust growth was backed by a strong IB platform performance, thanks to (1) merchant banking gains amid Taaleem Management Services [TALM] exit and (2) advisory fees registered in Q3 for the conclusion of BLOM Bank Egypt’s sale to Bank ABC at a total value of USD425mn. However, NBFS platform performance slipped slightly due to a setback in leasing activities which was marginally offset by microfinance activities. In our opinion, we think this is the blessing of diversification within the NBFS platform. CICH’s TTM ROAE stood at 19%, merely touching its pre-COVID-19 levels (i.e. 21% in 2019).
For the full report, please click here.
Sherif El Etr
Equity Analyst
T +202 3300 5720