Read in PDF
Egypt/ Banks/ Q1 2020 results
Net profits plummet on higher provisions
CIEB’s stand-alone net profit plummeted 37% to EGP444mn in Q1 2020, given a provision build-up of EGP31mn vs. released provisions of EGP156mn a year ago. This coincided with an upsurge in operating expenses by 18.5%, raising the cost-to-income ratio to 34% in Q1 2020 vs. 28% a year earlier. In addition, core banking income softened by c.8%, mainly due to c.7% lower net interest income (NII), which weighed on profitability measures. Indeed, ROAE fell to 26.5% in Q1 2020, down from 49.4% a year earlier, as cost of risk (CoR) increased and financial leverage decreased. NIM declined to 6.7%, despite 1% lower cost of funding
Shihab M. Helmy
Equity Analyst
Tel.: +202 3300 5723