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Sunday, 28 August 2022

CI Capital delivers solid 1H 2022 results

CI Capital reported EGP 1.61 bn in group revenues in 1H 2022, a 36% y-o-y increase (after normalizing for one-off adjustments), with net income after tax and minority interest almost doubling to EGP 341 mn compared to the same period last year, according to its earnings release (pdf). For 2Q 2022, CI Capital reported net income of EGP 187 mn (on par with the same quarter last year) on group revenues of EGP 848 mn.

Growth was driven by CI Capital’s non-bank financial services arm and the “resilient performance” of its investment bank, the firm said. CI Capital’s non-bank financial services (NBFS) platform accounted for 88% of the group’s bottom line in 1H 2022. The NBFS arm grew its on-balance-sheet financing to EGP 15.4 bn as of 30 June 2022, up 36% from the same date the year before. Net interest margin for the unit came in at 8.7%, a solid 111 bps expansion year-on-year. The company’s investment bank platform also saw “the successful execution of a number of high-profile IB advisory transactions, AUM growth, and garnered market share at the brokerage level” despite what it called “a challenging equity market backdrop.”

Commentary: The firm said its “resilient results were a function of the group’s scale, diversified business model, solid balance sheet, and sound liquidity position” and will continue to stand it in good stead amid current market conditions. Alongside its investment banking arm, CI Capital’s NBFS portfolio includes Corplease (leasing and its recently launched factoring unit), Reefy (microfinance) and greenfield mortgage arm CI Mortgage Finance. CI’s merchant banking function holds investments in education and healthcare.

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