Crédit Agricole Egypt (CAE) [CIEB]: Earnings Recover on Lower Provisions
Overweight and 12M PT maintained
Crédit Agricole Egypt (CAE) [CIEB]
Egypt / Banks / Q3 2021 Results
12M PT: EGP33 (+18%)
set on 13 Apr 2021
Investment Rating: Overweight | Risk Rating: Medium
Q3 earnings saved by lower provisions build-up
Crédit Agricole Egypt’s (CAE) [CIEB] Q3 2021 stand-alone net profit inched up 2.9% q/q to EGP403mn (+13.2% y/y in 9M 2021) after booking less provisions of EGP51mn in Q3 2021 (-16.7% q/q, -1% y/y in 9M 2021). This came along with higher net interest income (NII) of EGP735mn in Q3 2021 (+0.4% q/q, +1.4% y/y in 9M 2021) despite a lower net fees and commissions income of EGP129mn (-9.6% q/q, Q3 2021: +15.8% y/y). Q3 2021 earnings came in 7% lower than our estimates of EGP432mn, despite higher NII (+4% variance vs. our estimate of EGP707mn) and lower provisions (-24% variance vs. our estimate of EGP67mn).
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Shihab M. Helmy
Senior Equity Analyst
T +202 3300 5723