Leading private-sector bank CIB’s net income was up 20% y-o-y to EGP 2.87 bn in 1Q2021 compared to EGP 2.4 bn the year before, according to the bank’s earnings statement (pdf). Revenues for the quarter came in at EGP 6.27 bn, a 2% y-o-y dip. An 8% y-o-y decline in net interest income due to the maturities of high yielding bonds was offset by an almost threefold increase in non-interest income to EGP 590 mn. “This quarter witnessed favorable balance sheet growth, especially on the local currency front,” the bank said. “This … contributed broadly to upholding top line performance, amidst declining interest rates and consequent pressure posed on spreads.”

Credit quality looks good, with loan loss provisions slashed by more than 40% from last year, as the economic uncertainties caused by the pandemic dissipated, the bank said. The bank had set aside EGP 702 mn to cover potential losses, down from EGP 1.24 bn in 1Q2020 as concerns over client creditworthiness and the economic environment abated. CIB’s gross loan portfolio grew 2% y-o-y to EGP 138 bn, driven by local-currency loans, while the percentage of non-performing loans on its balance sheet rose to 4.4% from 4% in 1Q2020.

Looking ahead: “Management remains positive that CIB will continue to sustain its profitability and solvency against current and potential macroeconomic variations amid the global pandemic, drawing largely on its resilient coverage and strong balance sheet fundamentals,” the bank said in a press release (pdf).