MNHD income more than doubles in 9M 2022 + CIB’s bottomline rises 16% in 3Q 2022
Madinet Nasr Housing and Development’s (MNHD) net income was up 112% to record EGP 545 mn in the first nine months of 2022, according to the company’s earnings release (pdf). Revenues were up 129% to EGP 3.0 bn for the nine-month period. The strong results came on the back of a sharp rise in the number of units delivered to more than 1.1k, up from 570 in the same period last year.
A solid 3Q: Revenues almost tripled to hit EGP 1.2 bn in 3Q 2022 while net income was up more than twelvefold to EGP 308.1 mn during the quarter. MNHD delivered some 281 units in the third quarter of 2022.
MNHD’s gross contracted sales recorded EGP 6.7 bn in 9M 2022, up 218% on the same period last year, and rose more than fivefold in 3Q 2022 to EGP 3.3 bn. Sales growth in the first nine months was supported by the launch of MNHD’s Taj Ville and Elect projects in Taj City.
Steady as she goes: CEO Abdallah Sallam expects the company to maintain current profitability in the coming quarters. “We’re reaping some of the benefits of [action] done in Q1 and Q2, including resolving things related to distressed clients and cancellations, restoring confidence through new campaigns, strategies in dealing with clients and new launches,” he told CNBC Arabia (watch, 7:31).
CIB’s net income rose 16% y-o-y to EGP 4.4 bn in 3Q 2022, according to the bank’s latest earnings release (pdf). The bank recorded revenues of almost EGP 8.5 bn, up 18% from the same period last year, backed by a 25% rise in net interest income. In the first nine months of the year, net income rose 24% to EGP 12.2 bn while revenues were up 17% to EGP 23.1 bn.
CIB bank reported growth in both loans and deposits and delivered improved margins in 3Q, noting that “despite competitive environment,” margins could continue to strengthen “as interest rates continue to rise and reinvestment of the portfolio occurs.” Notably, the proportion of non-performing loans in CIB’s portfolio has decreased over the year despite challenging market conditions. Management said it is “optimistic, though cautiously so” about the economic outlook in the wake of the float of the EGP and the announcement of a staff-level agreement on an IMF facility.