Back to the complete issue
Wednesday, 15 July 2020

Earnings watch: CIB reports 1H2020 results, OIH turns a profit in 1Q2020

EARNINGS WATCH- CIB’s net profits dipped 4% y-o-y to EGP 2.6 bn in 2Q2020 on revenues of EGP 6.23 bn, which rose 20% y-o-y. The country’s largest private-sector bank decided to take on “the highest permissible provision band” during the quarter in a move that was “not only grounded by profound macroeconomic ambiguity but rather builds more on methodical assessments,” it said in its quarterly earnings release (pdf). CIB recorded a capital adequacy ratio of 26.3% by the end of the quarter, which is above the minimum regulatory requirement. Net income for the first half of the year dropped 7% y-o-y, coming in at EGP 12.7 bn. Commenting on the results, management said the bank “managed to upkeep its resilient performance in the second quarter of 2020, delivering singular top line growth while leaving its solvency untouched.”

The outlook remains “beset with challenges,” management said, but the bank does not expect it will need to “replicate the aggressive provisioning” it saw in 1H2020. CIB says it was well-positioned to absorb the shock from covid-19 — alongside a steep decline in interest rates — thanks to its balance sheet positioning over the past several years.

Orascom Investment Holding reported a net profit of EGP 51.64 mn in 1Q2020, compared to a net loss of EGP 78.86 mn in 1Q2019, the company said in a disclosure to the EGX.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.