Crédit agricole Egypt (CAE): Slowing Lending Inhibits Earnings Growth
Overweight and 12M PT maintained
Crédit agricole Egypt (CAE) [CIEB]
Egypt / Banks / Q1 2021 Results
Fair Value EGP36.3
set on 13 Apr 2021
Investment Rating: Overweight / Risk Rating; Medium
Earnings slow down: Q1 2021 stand-alone net profit retreated 16% y/y to EGP373mn as a result of higher provisions build-up (+4.2x y/y) of EGP128mn (-1.6% q/q) and lower net interest income (NII) (-6.6% y/y) of EGP697mn (-2.6% q/q). Earnings came in 19% lower than our estimates of EGP461mn, due to lower NII (-5.0%) and higher provisions by 83% (vs. our estimates of EGP70mn).
Shihab M. Helmy
Equity Analyst
T +202 3300 5723