Commercial International Bank [COMI]: Elegant Earnings Growth on All Fronts
Overweight and 12M PT maintained
Commercial International Bank [COMI]
Egypt / Banks / Q3 2021 Results
12M PT: EGP62.0 (+17%)
set on 25 Oct 2020
Investment Rating: Overweight | Risk Rating: Medium
Quarterly earnings at an all-time high, thanks to core-banking income and non-operating income
Q3 2021 separate net profits grew 19% q/q to EGP3.8bn—an all time-high (+34% y/y to EGP9.9bn in 9M 2021). This was a result of higher net interest income (NII) of EGP6.4bn (+7% q/q, -4% y/y to EGP18bn in 9M 2021), in addition to higher non-operating income of EGP33mn in Q3 2021 vs. non-operating losses of EGP277mn in Q2 2021. Furthermore, provisions build-up cooled down by 3% q/q to EGP307mn in Q3 2021 (-66% y/y to EGP1.3bn in 9M 2021). The bank’s strong earnings growth was further complemented by higher net fees and commissions income of EGP654mn (+9% q/q, +32% y/y to EGP1.8bn in 9M 2021) as well as a lower effective tax rate of 28.5% (-1.8ppts q/q, -5.7ppts y/y to 29.4% in 9M 2021).
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Shihab M. Helmy
Senior Equity Analyst
T +202 3300 5723