KEY THEMES
Commercial International Bank - Egypt [COMI] has reported its separate financials for the year 2021. Bottom line came in line with our estimates at EGP13.4bn (+30% y/y, -4% below PRe). Earnings growth came very bold, despite tepid net interest income of EGP24.8bn (-0.8% y/y). The main contributors to COMI’s 2021 bottom line growth were higher non-interest income, coupled with lower credit provisions. COMI booked 66% less credit provisions of EGP1.7bn in 2021, banking on comfortable coverage ratio of 213% in 2021 vs. 281% 2020. We note that Q4 2021 bottom line has witnessed a bit of a sequential weakness, given that earnings within the third quarter of 2021 were at all-time quarterly high. On the balance sheet side, COMI’s total assets hit EGP497bn (+17% y/y). We note that the bank has upped its Treasury exposure to EGP201bn (40% of total assets vs. 38% in 2020). Lending growth came robust, supported by a phenomenal 29% growth in LC loans, brining gross loan book at EGP163bn (+20% y/y). On the other hand, Deposits grew by 19%, where LC deposits grew by 23%. This has kept COMI’s GLDR nearly unchanged at 40%. COMI’s ROAE for 2021 stood at 21% vs. 19% a year earlier. The bank is currently traded at 2021 P/E and P/B of 7.5x and 1.5x, respectively. We remind you that we have an overweight recommendation on COMI, with our 12MPT of EGP72/share (ETR+40%). COMI is one of the 15 stocks we picked in our STANDPoint 2022 strategy outlook published on 30 January 2022.