Today’s Trading Playbook
Amr Hussein Elalfy CFA | Head of Research
KEY THEMES
At last, CIB [COMI] released its Q3 2020 results over night. From the outside, the results (please read the Corporate News section below) may seem to be a short-term negative in view of higher provisions y/y as well as q/q. However, the bank looks to be on track to exceed EGP10bn in earnings this year, which would be ahead of our estimates of EGP9.3bn dated 25 October 2020. The bank continues to boast an even higher NPL coverage ratio of 289% with an NPL ratio of less than 4%. We will publish our detailed analysis of the results later on today.
NEUTRAL
COMI: Q3 2020 results raise no red flags about COMI’s sustainability in the aftermath of the Central Bank of Egypt’s probe. We see the results assuring investors of the bank’s future.