CI Capital Holding: Earnings Dented by One-off ESOP Expense
Diversification Paying Off
CI Capital Holding [CICH]
Egypt / Non-Banking Financials / Q1 2021 Results
Fair Value EGP5.2
set on 14 Jan 2021
Investment Rating: Overweight | Risk Rating: Medium
Normalized, growth comes to light: CI Capital Holding’s [CICH] total revenues grew 8% y/y to EGP560mn in Q1 2021, backed by solid performance in its investment banking platform as well as a diversified NBFS platform’s revenue stream. Bottom-line losses hit EGP17mn due in full to a one-off expense of EGP150mn related to an ESOP triggered by Banque Misr’s mandatory tender offer (MTO). Normalized, bottom line would swing to EGP133mn (+48% y/y). Meanwhile, a normalized TTM ROAE would hit 17%, in line with our 2021 expectations.
Sherif El Etr
Equity Analyst
T +202 3300 5720