CIB, PHD post record earnings
EARNINGS WATCH- CIB delivered record top- and bottom-line performances to start 2017 as it released its first quarter earnings late last night. The lender delivered 29% revenue growth to EGP 3.32 bn, while its bottom line swelled 34% over the same period last year to EGP 1.73 bn. The bank’s management team noted in a statement that, “This quarter, besides normal growth in net interest income, CIB witnessed remarkable growth in its non-interest income, which tripled from last year, largely driven by a pick-up in trade finance activity and foreign exchange transaction volumes as the foreign currency shortage started to resolve following the CBE decision to float the Egyptian Pound.”
CIB also reminded its investors of the central bank’s February 2017 decision to allow the interim recognition of profits in the capital base for banks, which management noted “expected to allow for relative stability in Bank’s capital levels and to reflect the actual solvency for commercial banks operating in Egypt.” Download CIB’s full earnings release here (pdf).
Palm Hills Developments (PHD) reported its net profit after tax and minority interestincreasing by 101% y-o-y to EGP 212 mn in 1Q2017, the company’s best-ever bottom-line performance, it said in a regulatory filing (pdf). New sales in the quarter topped EGP 3.1 bn, up 58% y-o-y for best-ever single quarter of sales. Chairman Yaseen Mansour says the company “still expect sales growth in FY2017, driven by our new launches in Palm Hills New Cairo, Capital Gardens, the Crown (190 feddan in West Cairo) and Hacienda West, in addition to New Sales from our older projects which cater to clients who want to move in within 1-2 years.” PHD accordingly raised its sales target for the year to EGP 9.5 bn from its previous target of EGP 9.5 bn.
MM Group For Industry And International Trade (MTI) recorded a 171% y-o-y increase in net income in 1Q2017 to EGP 130 mn. MTI said revenues grew 38% y-o-y to EGP 1.5 bn on the back of “outstanding performance from the consumer electronics segment.” The company’s results presentation is here (pdf).