CIB 3Q 2019 Consolidated Financial Results

RNS Announcement

RNS Number : 2272S

Commercial Intnl Bank (Egypt) SAE

05 November 2019

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Commercial International Bank (Egypt) S.A.E.

Consolidated Financial Statements

September 30, 2019


Consolidated balance sheet as at September 30, 2019

	Notes	Sep. 30, 2019	Dec. 31, 2018
		EGP Thousands	EGP Thousands

Assets
Cash and balances with central bank	15	27,205,020	20,058,974
Due from banks	16	25,599,127	46,518,892
Loans and advances to banks, net	18	642,973	67,703
Loans and advances to customers, net	19	109,994,085	106,309,205
Derivative financial instruments	20	291,686	52,289
Investments
- Financial investments securities	21	198,155,796	157,585,611
- Investments in associates	22	106,849	106,558
Other assets	23	9,507,964	9,563,018
Intangible assets	40	141,059	238,715
Deferred tax assets (Liabilities)	31	492,460	308,370
Property, plant and equipment	24	2,015,038	1,651,875
Total assets		374,152,057	342,461,210

Liabilities and equity
Liabilities
Due to banks	25	1,828,108	7,259,819
Due to customers	26	307,845,505	285,296,869
Derivative financial instruments	20	302,812	132,858
Current tax liabilities		3,283,731	3,625,579
Other liabilities	28	8,364,374	6,501,553
Other loans	27	3,400,294	3,721,529
Provisions	29	1,479,338	1,694,607
Total liabilities		326,504,162	308,232,814

Equity
Issued and paid up capital	30	14,585,408	11,668,326
Reserves	33	23,333,248	12,184,667
Reserve for employee stock ownership plan (ESOP)	33	1,110,317	738,320
Retained earnings *	33	8,618,922	9,637,083
Total equity		47,647,895	34,228,396
Total liabilities and equity		374,152,057	342,461,210





The accompanying notes are an integral part of these financial statements.
(Review report attached)
*Including net profit for the current period


		Hisham Ezz Al-Arab
		Chairman and Managing Director

Consolidated income statement for the period ended September 30, 2019

		Note	Sep. 30, 2019		Sep. 30, 2018
			EGP Thousands		EGP Thousands

Continued Operations
Interest and similar income			31,652,305		27,150,333
Interest and similar expense			(16,203,599)		(13,842,130)
Net interest income		6	15,448,706		13,308,203

Fee and commission income			2,544,996		2,464,173
Fee and commission expense			(857,475)		(703,749)
Net fee and commission income		7	1,687,521		1,760,424

Dividend income		8	22,454		25,063
Net trading income		9	561,877		745,248
Profits (Losses) on financial investments		21	263,132		402,153
Administrative expenses		10	(3,888,839)		(2,947,507)
Other operating (expenses) income		11	(1,016,445)		(997,218)
Intangible assets amortization		40	(97,656)		(97,656)
Impairment charge for credit losses		12	(1,207,315)		(2,803,402)
Bank's share in the profits of associates			291		16,346
Profit before income tax			11,773,726		9,411,654

Income tax expense	13		(3,283,731)		(2,563,006)
Deferred tax assets (Liabilities)	31 - 13		47,599		170,493
Net profit for the period			8,537,594		7,019,141
Bank shareholders			8,537,594		7,019,141


Earning per share		14
Basic			5.27		4.32
Diluted			5.23		4.29

				Hisham Ezz Al-Arab
				Chairman and Managing Director

Consolidated statement of other comprehensive income for the period ended September 30, 2019


	Notes	Sep. 30, 2019		Sep. 30, 2018
	Notes	EGP Thousands		EGP Thousands

Net profit for the period		8,537,594		7,019,141
Reserve for financial assets at fair value through OCI		5,199,526		(3,313,259)
Cumulative foreign currencies translation differences		3,747		-
Total other comprehensive income for the period		13,740,867		3,705,882


Consolidated cash flow for the period ended September 30, 2019
	Notes	Sep. 30, 2019		Sep. 30, 2018
		EGP Thousands		EGP Thousands

Cash flow from operating activities
Profit before income tax from continued operations		11,773,726		9,411,654
Adjustments to reconcile net profit to net cash provided by operating activities
Fixed assets depreciation	24	425,637		279,798
Impairment charge for credit losses	12	1,256,000		2,803,402
Other provisions charges	29	12,494		90,731
Provisions charges - due from banks	12	23,161		-
Provisions charges - financial investments	12	(71,846)		-
Impairment charge for other assets	23	83,213		242,481
Exchange revaluation differences for financial assets at fair value through OCI	21	1,303,741		(103,827)
Intangible assets amortization	40	97,656		97,656
Impairment charge financial assets at fair value through OCI	21	45,664		19,721
Exchange differences in financial investments in subsidiary	22	4,104		-
Utilization of other provisions	29	(27,733)		(969)
Other provisions no longer used	29	(96,499)		(45,079)
Exchange differences of other provisions	29	(103,531)		2,776
Profits from selling property, plant and equipment	11	(1,439)		(1,045)
(Profits) losses from selling financial investments	21	(310,329)		(421,874)
Shares based payments		371,997		324,510
Bank's share in the profits of associates		(291)		(16,346)
Operating profits before changes in operating assets and liabilities		14,785,725		12,683,589

Net decrease (increase) in assets and liabilities
Due from banks	16	(13,052,086)		(42,520,192)
Treasury bills and other governmental notes	41	4,974,205		6,405,425
Financial assets at fair value through P&L	21	2,252,280		3,182,127
Derivative financial instruments	20	(67,282)		(42,783)
Loans and advances to banks and customers	18 - 19	(4,796,325)		(18,806,624)
Other assets	42	247,459		(3,368,677)
Due to banks	25	(5,431,711)		(513,151)
Due to customers	26	22,548,279		29,858,162
Income tax obligations paid		(3,625,579)		(2,778,973)
Other liabilities	28	1,862,821		1,459,794
Net cash provided from operating activities		19,697,786		(14,441,303)

Cash flow from investing activities
Payment for purchases of associates		-		(10,575)
Payment for purchases of property, plant, equipment and branches constructions		(1,067,918)		(652,768)
Proceeds from selling property, plant and equipment	11	1,439		1,045
Proceeds from redemption of financial assets at amortized cost	21	33,937,957		7,321,780
Payment for purchases of financial assets at amortized cost	21	(47,344,534)		(4,703,236)
Payment for purchases of financial assets at fair value through OCI	21	(26,637,577)		(11,372,289)
Proceeds from selling financial assets at fair value through OCI		5,350,754		1,985,962
Net cash used in investing activities		(35,759,879)		(7,430,081)

Consolidated cash flow for the period ended September 30, 2019 (Cont.)
		Sep. 30, 2019		Sep. 30, 2018
		EGP Thousands		EGP Thousands
Cash flow from financing activities
Increase in long term loans	27	(321,235)	4,358
Dividend paid		(2,700,544)	(2,143,177)
Capital Increase		-	50,315
Net cash used in (provided from) financing activities		(3,021,779)	(2,088,504)


Net increase (decrease) in cash and cash equivalent during the period		(19,083,872)	(23,959,888)
Beginning balance of cash and cash equivalent		34,303,645	49,208,837
Cash and cash equivalent at the end of the period		15,219,773	25,248,949


Cash and cash equivalent comprise:
Cash and balances with central bank	15	27,205,020	33,253,111
Due from banks	16	25,629,602	45,038,599
Treasury bills and other governmental notes	17	44,736,504	48,324,427
Obligatory reserve balance with CBE	15	(20,770,245)	(23,004,955)
Due from banks with maturities more than three months		(16,541,989)	(30,113,810)
Treasury bills with maturity more than three months		(45,039,119)	(48,248,423)
Total cash and cash equivalent		15,219,773	25,248,949

Consolidated statement of changes in shareholders' equity for the period ended September 30, 2018

Sep. 30, 2018	Issued and paid up capital	Legal reserve	General reserve	General risk reserve*	Special reserve	Capital reserve	Reserve for financial assets at fair value through OCI	Banking risks reserve	IFRS 9 risk reserve	Retained earnings	Reserve for employee stock ownership plan	Cumulative foreign currencies translation differences	Total Shareholders Equity	Minority Interest	Total
															EGP Thousands

Beginning balance	11,618,011	1,332,807	9,000,023	-	20,645	11,815	(1,642,958)	3,634	1,411,549	6,193,879	489,334	-	28,438,739	-	28,438,739
Capital increase	50,315	-	-	-	-	-	-	-	-	-	-	-	50,315		50,315
Transferred to reserves	-	377,486	3,776,192	-	-	606	-	-	-	(3,994,924)	(159,360)	-	-	-	-
Dividend paid	-	-	-	-	-	-	-	-	-	(2,143,177)	-	-	(2,143,177)	-	(2,143,177)
Net profit of the period	-	-	-	-	-	-	-	-	-	7,019,141	-	-	7,019,141	-	7,019,141
Net unrealised gain/(loss) on AFS	-	-	-	-	-	-	(3,313,259)	-	-	-	-	-	(3,313,259)	-	(3,313,259)
Transferred (from) to bank risk reserve	-	-	-	-	-	-	-	689	-	(689)	-	-	-	-	-
Cost of employees stock ownership plan (ESOP)	-	-	-	-	-	-	-	-	-	-	324,510	-	324,510	-	324,510
Balance at the end of the period	11,668,326	1,710,293	12,776,215	-	20,645	12,421	(4,956,217)	4,323	1,411,549	7,074,230	654,484	-	30,376,269	-	30,376,269

Consolidated statement of changes in shareholders' equity for the period ended September 30, 2019

Sep. 30, 2019	Issued and paid up capital	Legal reserve	General reserve	General risk reserve*	Special reserve	Capital reserve	Reserve for financial assets at fair value through OCI	Banking risks reserve	IFRS 9 risk reserve	Retained earnings	Reserve for employee stock ownership plan	Cumulative foreign currencies translation differences	Total Shareholders Equity	Minority Interest	Total
															EGP Thousands

Beginning balance	11,668,326	1,710,293	12,776,215	-	20,645	12,421	(3,750,779)	4,323	1,411,549	9,637,083	738,320	-	34,228,396	-	34,228,396
Effect of applying IFRS 9**	-	-	-	117,251	-	-	1,889,928	-	-	-	-	-	2,007,179	-	2,007,179
Transferred to general risk reserve	-	-	-	1,432,194	(20,645)	-	-	-	(1,411,549)	-	-	-	-	-	-
Beginning balance after the impact of initial application	11,668,326	1,710,293	12,776,215	1,549,445	-	12,421	(1,860,851)	4,323	-	9,637,083	738,320	-	36,235,575	-	36,235,575
Capital increase	2,917,082	-	(2,917,082)	-	-	-	-	-	-	-	-	-	-	-	-
Transferred to reserves	-	477,736	6,375,589	-	-	1,045	-	-	-	(6,854,370)	-	-	-	-	-
Dividend paid	-	-	-	-	-	-	-	-	-	(2,700,544)	-	-	(2,700,544)	-	(2,700,544)
Net profit of the period	-	-	-	-	-	-	-	-	-	8,537,594	-	-	8,537,594	-	8,537,594
Net unrealised gain/(loss) on financial assets at fair value through OCI	-	-	-	-	-	-	5,271,372	-	-	-	-	-	5,271,372	-	5,271,372
Transferred (from) to bank risk reserve	-	-	-	-	-	-	-	841	-	(841)	-	-	-	-	-
Provision for impairment of debt instruments investments	-	-	-	-	-	-	(71,846)	-	-	-	-	-	(71,846)	-	(71,846)
Cost employees stock ownership plan (ESOP)	-	-	-	-	-	-	-	-	-	-	371,997	-	371,997	-	371,997
Cumulative foreign currencies translation differences	-	-	-	-	-	-	-	-	-	-	-	3,747	3,747	-	3,747
Balance at the end of the period	14,585,408	2,188,029	16,234,722	1,549,445	-	13,466	3,338,675	5,164	-	8,618,922	1,110,317	3,747	47,647,895	-	47,647,895

*The special reserve, general bank risk reserve and IFRS 9 risk reserve - were consolidated in the general risk reserve as per the instructions of the Central Bank of Egypt dated 26 February 2019
**The initial application impact (disclosure in page number 17)
The initial application impact is LE 109,697 thousand and the tax effect is LE 7,554 thousand

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QRTUSRWRKAAARAA

RNS metadata

Title: CIB 3Q 2019 Consolidated Financial Results
Time: 07:00:05
Date: 5 Nov 2019
Category: Results
ID: 2272S