CIB posts record full-year earnings as it releases FY2016 results. Leading commercial bank CIB “posted another year of record performance despite the unfavorable macroeconomic environment and increasingly challenging regulatory requirements, generating consolidated full-year revenues of EGP 11.3 bn and net income of EGP 6.01 bn, up 11% and 27% from 2015, respectively,” the bank said overnight (pdf). The institution said 2016 was a “truly challenging year … for the entire Egyptian banking sector,” noting “the unprecedented decision by the CBE to allow the EGP to trade freely by year-end after severe foreign currency shortages, three corridor rate hikes throughout the year, with the latest being for an aggressive 300bp, along with the enforcement of ICAAP and the Capital Conservation Buffer.” CIB reported a return on average equity of 34.2% in FY2016 and a return on average assets of 2.7% in the same period with a standalone net interest margin of nearly 5.5%.

2017 outlook: CIB said in the statement that, “We believe the outlook in 2017 still remains ambiguous given the impact of recent macroeconomic developments on the banking sector performance in general and the Banks’ Capital Adequacy Ratios in particular,” but notes that its strong balance sheet and “robust fundamentals keep us well-positioned to withstand economic and regulatory pressures, should any arise.”