EGX heavyweight CIB reported a 48% y-o-y increase in net income to EGP 4.2 bn in 1Q 2022 despite “challenging” conditions caused by the war in Ukraine, the bank said in its earnings release (pdf). The bank saw standalone revenues rise 22% y-o-y to EGP 7.6 bn on the back of a 16% increase in net interest income.

What drove growth? The bank’s solid performance was fuelled by strong deposit growth, “proactive treasury management” and 33% growth in local-currency loans, which increased fee and commission income.

The company has set aside EGP 1 bn in loan loss provisions in response to deteriorating economic conditions caused by the Russia-Ukraine conflict. This covers 11% of the bank’s gross loan portfolio. CIB’s loan book has remained “safely unscathed” by the crisis, with its capital adequacy ratio a “comfortable” 31%.

Looking ahead: “Management remains confident in the bank’s ability to uphold its market-leading performance, on both profitability and solvency fronts, supported by its flexible balance sheet structure and prudent risk management, which would cement the bank’s position against any unforeseen market dynamics,” the bank said.

Private sector education outfit CIRA reported EGP 943.9 mn in revenues during the first half of its fiscal year, rising 24% y-o-y, according to the company’s earnings release (pdf). CIRA’s fiscal year runs from September-August. The company’s adjusted bottomline rose 20% y-o-y to EGP 298.8 mn, with adjusted EBITDA rising 28% y-o-y to EGP 534.2 mn during the six-month period.

CIRA faced higher direct operating costs during 1H 2021-2022, including higher wages, maintenance costs, “and other expenses related to its newly developed schools.” The group’s launch of three new faculties at Badr University (BUC), along with work on the Assiut branch of its Badr University, which has yet to open its doors to students, and the establishment of three new schools in its K-12 segment, saw “similar start-up expenses” in direct operating costs. CIRA has “been diligent in implementing an effective cost control model across all of our business

units to mitigate the effect of current global and local economic conditions on our operations, and ensure that our model is prepared to absorb further potential headwinds,” said CEO Mohamed El Kalla.

Looking ahead, CIRA expects to kick off the enrollment process at Badr University Assiut in the upcoming 2022-2023 academic year. The company has received licenses for two of the eight faculties it has constructed, and expects to land the remaining six licenses ahead of AY2022-2023, El Kalla said. CIRA is also on track to launch its new nursery in Suez in May, and plans to “expand our presence throughout Egypt within each of our platforms.”

Education outfit Taaleem saw an 8% y-o-y increase in its bottomline in 1H 2021-2022 to EGP 139.5 mn, the company said in an earnings release (pdf). Revenues also rose more than 5% y-o-y to EGP 334.1 mn for the six-month period ending 28 February, despite a slight fall in enrolment, the company said. The strong performance came on the back of higher operating revenues as Taaleem continues to optimize its cost base with an eye to enhancing its margins.

The figures come despite a dip in enrolment: Total students enrolled at Nahda University in Beni Suef (NUB) declined 2.2% y-o-y on the back of a 48% drop in new admissions. The company said this came as a result of the changes to the Thanaweya Amma examination system, which reduced the number of eligible students. NUB raised its average tuition revenue per student by more than 7% y-o-y to EGP 52.3k, reflecting an increase in the number of revenue days compared to the same period last year.

Looking forward: Taaleem expects further growth during the rest of the academic year, despite challenging conditions given the global situation and the recent devaluation of the EGP, said Managing Director Mohamed El Rashidi in the release. NUB will launch two new faculties — a faculty of arts and a faculty of architecture — after getting approval through the required presidential decree. The new faculties will begin operating in September 2022, bringing the total number of faculties at the university to 10, while progress continues on the company’s second higher education institution, Badya University in West Cairo.