Yesterday, Commercial International Bank (CIB) closed its trading session at EGP 99.50, after reaching a midday high of EGP 99.80. As one of the most liquid and financially dominant performing companies on the EGX, CIB continues to draw strong investor interest, with the market closely watching its next move.

On the other hand, the EGX30 index surpassed the 35,000-point mark during the August 5th trading session and extended its gains yesterday, closing at 35,480 points.

For years, CIB has served as the backbone of the EGX30, acting as both a proxy for the Egyptian stock market and a mirror for the broader banking sector. Since the beginning of the year, following the weakening of the U.S. dollar, the bank’s stock has delivered exceptional performance, helping drive the index to new highs. If this trend continues, the market could be positioned for further gains in the coming months. 

In H1, CIB reported a net income of EGP 33.3 billion, up 21% YoY, and revenues of EGP 54.9 billion, reflecting an 18% increase.

Its gross loans-to-deposits ratio stood at 47.7%, highlighting a strong liquidity position and conservative lending strategy—factors that continue to bolster investor confidence.

It has been ranked as the #1 private-sector bank in Egypt in terms of revenues, net income, deposits, loans, and total assets.

Analyst’s view on CIB

According to Bloomberg, leading financial institutions, including Beltone Financial, Citibank, and Al Ahly Pharos, have set target prices above EGP 100 for CIB stock. All maintain a “Buy” recommendation, signaling strong confidence in the bank’s fundamentals and its ability to sustain momentum.

What can this mean for the EGX30?

CIB’s substantial 30.4% weight in the EGX30, according to Bloomberg, means its performance has a direct and significant impact on the broader index. Since the beginning of the year, both CIB’s share price and the EGX30 have posted strong gains. If analyst projections prove accurate and CIB’s momentum continues, the EGX30 is likely to follow suit.

Adding to this upward pressure, ongoing tensions between Trump and the Federal Reserve—particularly around interest rate policy and renewed tariff threats—have weighed on the U.S. dollar. A weaker dollar tends to benefit emerging markets like Egypt’s, and this backdrop could further support both CIB’s stock and the EGX30’s performance in the near term.

Banking sector and the EGX30

Beyond CIB, the banking sector as a whole maintains a strong reputation, underpinned by robust performance metrics and solid fundamentals. Several key players listed on the EGX—such as QNB, Credit Agricole, and Abu Dhabi Islamic Bank—have consistently demonstrated resilience and steady growth throughout their market journeys, earning the confidence of investors.

The banking sector is also known for its high liquidity and trading activity. As a result, the banking sector, led by the CIB, plays a crucial role in shaping the performance of the EGX30.

Notably, the banking sector accounts for approximately 22.79% of the total market capitalization of companies listed on the EGX. Interestingly, only three banks—Credit Agricole Egypt (CIEB), Commercial International Bank (CIB), and Abu Dhabi Islamic Bank (ADIB)—are currently included in the EGX30 index.

Despite their limited number, these institutions collectively represent a substantial 33.5% weight in the index, underscoring the sector’s critical influence on EGX30 performance.

All three banks exhibit strong historical profitability, with ADIB leading in five-year average return on equity (ROE) at 32.7%, followed by CAE at 30.4%, and CIB at 26.1%. Furthermore, ADIB (P/E 2.97) and Credit Agricole (P/E 3.13) are trading at notably lower price-to-earnings multiples compared to CIB (P/E 5.54), suggesting potentially more attractive valuations for investors looking to capitalize on undervalued opportunities within the sector.

Below are the YTD performances of the 3 banking sector constituents currently in the EGX30, along with the overall index performance: