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Tuesday, 6 September 2022

CIB plans record capital increase

EGX-listed private sector giant CIB is planning a multi-bn EGP capital increase that would raise its capital by around a third. The bank submitted documents to the EGX yesterday and the bourse is studying the proposal, it said, according to an EGX bulletin yesterday.

The plan: CIB would issue EGP 10 bn in new shares to shareholders, raising its capital to EGP 29.82 bn from EGP 19.85 bn currently. The bank would issue 1 bn shares at EGP 10 apiece to be covered by the general reserves for the period ended 31 December 2021.

Market reax: Traders didn’t get a chance to respond to the news yesterday because the EGX published the bulletin after the closing bell.

Earnings: CIB’s net income rose 9% y-o-y to EGP 3.5 bn in 2Q 2022 as demand for short-term credit picked up, according to the bank’s latest earnings release (pdf). The bank recorded revenues of EGP 6.9 bn, up 8% from the same period last year. On a 1H 2022 basis, the bank reported net income of EGP 7.8 bn (+28% y-o-y) on revenues of EGP 14.7 bn (+16% y-o-y).

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