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.