EARNINGS WATCH- Our friends at CIB delivered a 13% y-o-y increase in net income of EGP 2.71 bn in 2Q2019 on revenues of EGP 5.21 bn, which rose 4% y-o-y. CIB recorded a capital adequacy ratio of 25.8% by the end of the quarter, which is above the minimum regulatory requirement. Net income for the first half of the year grew 21% y-o-y, coming in at EGP 5.36 bn. Commenting on the bank’s earnings, management said CIB “built on its strong performance at the onset of the year” to achieve “robust” balance sheet growth. The bank’s FX trading activity and strong topline performance were also buoyed by “Egypt’s strong macroeconomic conditions,” including the recent EGP appreciation against the greenback.

Looking ahead, the bank sees the macroeconomic climate during the second half of the year bringing with it a “somewhat high degree of ambiguity … in view of the anticipated inflationary pressure likely to accompany the energy subsidy cuts that took place at the onset of the current quarter.” Management remains confident, however, that CIB is well-equipped to adapt to macroeconomic and regulatory developments throughout the remainder of the year. You can read CIB’s full earnings release here (pdf).