Commercial International Bank –CIB (COMI.CA/COMIq.L) posted FY2000 results ending December, in which the bank has produced better than expected results. Net income grew 9.7 percent to LE384.99 million compared to LE350.85 million in FY99.
Net interest income jumped 13 percent to LE448 million in FY2000 compared to LE396 million in FY99, as interest income grew 20.6 percent to LE1,226 million compared to LE1,025 million in FY99. Moreover, Interest income from Treasury Bills and bonds increased 20.8 percent to LE165.5 million versus LE136.9 million.
Non-interest income jumped 35 percent to LE394.5 million in FY2000 compared to LE292.2 million in FY99. It is worth noting that non-interest income to net banking income increased from 42 percent in FY99 to 47 percent. Most of the growth in non-interest income was from operations related to foreign currencies, of which income from currency revaluation surged from LE3.9 million to LE63.6 million while income from FOREX operations rose 28.1 percent to LE76.6 million compared to LE59.8 million.
CIB continued its conservative trend of increasing provisions, recording LE253.9 million of provisions in
FY2000 compared to LE150.7 million in FY99, a 68 percent increase.
Deposits saw 11.7 percent growth to LE11.4 billion in FY2000 versus LE10.2 billion in FY99. On the other hand, net loans increased by a lower rate of 4.8 percent to LE10.3 billion from LE9.8 billion. Accordingly, CIB’s loans to deposits ratio dropped to a more conservative ratio of 90.4 percent compared to 96 percent in FY99. It is worth noting that CIB had 17 percent of total private sector deposits and 14 percent of private sector loans as of June 2000.
It is worth noting that Non Performing Loans (NPLs) increased 131 percent to LE515 million compared to LE222 million in FY99. This huge increased has caused NPL/Gross loans to increase to 4.8 percent in FY2000 compared to 2.2 percent in FY99. Two particular exposures were the reason behind this increase in NPLs (without these two exposures, NPL to Loans is 1.8 percent). Both of these loans are currently being restructured. The bank expects to return to its normal NPL levels shortly.
Deposits increased as the bank is continuing its retail banking success story. Number of accounts rose 8.7 percent to 174,000 compared to 163,000 in FY99. Respectively,customers increased to 163 thousand from 145 thousand in FY99. Moreover, the bank has expanded its ATM machines from 30 at the end of FY99 to 62 at the end of FY2000, bringing the number of ATM cards issued to 101.4 thousand from 67 thousand in 1999. On the credit card side, CIB was able to increase number of credit cards issued from 2.6 thousand in FY99 to 30.5 thousand at the end of FY2000.
Treasury bills more than doubled to reach LE682.7 million compared to LE311.1. Inter-bank assets increased 49.1 percent to LE2.1 billion from LE1.4 billion in FY99. The board of directors plans to propose a dividend per share of LE3.75 for FY2000 versus LE3.50 in FY99.
Prime Securities S.A.E.
© 2001 Mena Report (www.menareport.com)
