CIB reports record results on YTD, 3Q basis: CIB reported late last night that its third quarter consolidated net profit had risen 28% over the same period last year to EGP 1.7 bn, noting: “CIB maintained its record performance in the third quarter, signaling a strong closure of the year despite the ambiguous macroeconomic environment.” Management said in a statement (pdf) that since the end of 2015, the bank has “correctly foreseen the possible forthcoming macroeconomic and regulatory circumstances. Since then, CIB has been taking a cautious stance regarding its capital adequacy and foreign currency position towards the long awaited increases in interest rates and exchange rates, both of which significantly materialized last week. By 2015 year-end, CIB underwent a cut in dividends in anticipation of a devaluation and interest rate hike along with higher regulatory capital requirements, such as the ICAAP and the Capital Conservation Buffer. Moving into second-quarter of 2016, and as the ambiguity of macroeconomic conditions continued, CIB took the lead in the decision to reclassify EGP 15 bn of the available-for-sale sovereign bond portfolio as held-to-maturity, as a precautionary measure to minimize the impact of interest rate movements on the Bank’s capital adequacy levels. CIB’s Management also continued its focus on lowering the Bank’s balance sheet duration, in order to maintain a proper balance sheet structure that would help boost the return to shareholders in light of an increasing interest rate environment, while maintaining its liquidity ratios comfortably above regulatory requirements. More impressively, and despite currently prevailing shortages in hard currency, CIB managed to exceed the minimum required liquidity ratios by Basel III in foreign currency, as Management has always been keeping an eye on international best practices together with CBE regulatory requirements.”