Crédit Agricole Egypt (CAE) [CIEB]: Non-Interest Income Heals Earnings Growth
Overweight and 12M PT maintained
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Crédit Agricole Egypt (CAE) [CIEB]
Egypt / Banks / Q2 2021 Results
12MPT: EGP33 (+33%)
set on 13 Apr 2021
Investment Rating: Overweight | Risk Rating: Medium
Earnings recovered, backed by fee income and one-off gain despite higher opex and provisions
Crédit Agricole Egypt’s (CAE) [CIEB] H1 2021 stand-alone net profit inched up 9% y/y to EGP764mn after booking a non-recurring profit of EGP89mn in H1 2021 (due in part to gain on sale of land amounting to EGP47mn) vs. other operating expenses of EGP13.3mn in H1 2020. This came along with higher fees & commission income of EGP285mn (+24% y/y, Q2 2021: +0.3% q/q) and higher net interest income (NII) of EGP1.4bn (+0.8% y/y, Q2 2021: +5% q/q). Q2 2021 earnings came in 4% higher than our estimates of EGP375mn on higher NII (+12% variance vs. our estimate of EGP652mn) and higher provisions (+121% variance vs. our estimate of EGP28mn).
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Shihab M. Helmy
Senior Equity Analyst
T +202 3300 5723