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We have a tight issue this morning as we await the International Monetary Fund (IMF) to begin its fourth review of our USD 8 billion loan program today. We have our ears to the ground for updates on that, and will bring you the latest when news trickles in. The fourth tranche, if approved, would unlock the largest portion of the loan yet ( USD 1.3 billion).
Before we start, an update related to our economic reform program:
In line with the IMF’s requirement to ultimately phase out fuel subsidies, the government has increased the prices of gas for households by EGP 0.40-1 per cubic meter. The decision was initially announced in September and materialized this month.
CIB reports 77% YoY profit hike in Q3
Egypt’s top private bank “CIB” recorded a 77% YoY surge in net profit during the three months ending in September to EGP 14.8 billion, it said in a statement.
The bank also raked in revenues of EGP 25.3 billion in Q3, marking an 83% YoY hike. |
Deposits:
Deposits grew 5% or EGP 39.0 billion over the quarter, with local currency deposits growing by 4%, adding EGP18.6 billion, the lender said. Foreign currency deposits also grew by 5%, adding USD 382 million.
CIB notes the uptick came while maintaining a share of current and saving accounts of 55% to total deposits.
More details:
The bank’s net interest income also increased by 74% YoY in the three-month period to reach EGP 24.1 billion, while non-interest income stood at EGP 1.148 billion. On a 9M basis:
CIB saw an 89%YoY increase in net income to EGP 42.3 billion and an 82% YoY rise in revenues to EGP 71.5 billion in the first nine months (9M) of the year. During the first nine months of the year, net interest income increased by 74% YoY to reach EGP 65.7 billion, while non-interest income was recorded at EGP 5.9 billion.
Deposits recorded EGP 897 billion, growing by 33% over 9M 2024 with real growth of 13% net of the EGP devaluation impact. Its gross loan portfolio recorded EGP 353 billion, growing by 33% during the period, with real growth of 15% net of the EGP devaluation impact. Awards during the period:
The lender snagged several awards during the nine months ending in September including, the “ Market Leader for Corporate Banking” and “Best Digital Bank in Egypt” accolades from Euromoney, and the “Cash Manager of the Year in MENA Region” award from MEED. Going forward:
“Moving forward, Management remains positive about the Bank’s growth prospects, with special regard to plans to expand the business pie and invest in more productive areas, and with due focus attended to reengineering the Bank’s processes and to heading further towards digitization, further safeguarding its market-leading position, while maintaining its sound financial performance and healthy solvency along,” the lender said in a press release. |
Social Impact Capital submits MTO to acquire CIRA Education
Social Impact Capital yesterday submitted a mandatory tender offer (MTO) to acquire 284.302 million shares — representing 48.78% — of CIRA Education at a purchase price of EGP 15 per share. |
The specifics:
Social Impact already owns 51.2% of CIRA’s shares, and, if the deal goes through, the company plans to delist CIRA from the EGX and go private.
Remember, CIRA has a big project in the works:
Back in June, the company said it will collaborate with management firm Blue Ribbon and real estate developer Madinet Masr to launch a sports-focused Swiss school dubbed Project Kayan in the latter’s Taj City development. Project Kayan will combine the professional sports coaching of Klub Kayan with the education of Swiss private school Lemania Swiss International School (LSIS). |
Non-governmental foreign currency deposits in Egyptian banks during the first nine months of 2024 saw more than a USD 5 billion hike to USD 55.96 billion. This marks a 10.5% increase from the USD 50.61 billion recorded by the end of 2023. |
For the banking sector:
Egyptian banks saw deposit inflows of USD 1.38 billion in September alone, the highest increase since the beginning of the current year.
Demand:
The Central Bank of Egypt said the volume of demand for foreign currency-denominated deposits reached about USD 13.9 billion by the end of September compared to USD 13.07 billion by the end of August.
The volume of time deposits and savings certificates increased by about USD 500 million during September, reaching USD 42.04 billion. |
What else is clapping?
- Tenth of Ramadan for Pharmaceutical Industries and Diagnostic Reagents (Rameda) recorded a 119% YoY rise in sales in September, outperforming the pharmaceutical market’s growth of only 50%.
- The government plans to float an international tender for the implementation of the Sixth Line of the Cairo Metro — which will span 34 kilometers — by the middle of next year at a cost of USD 3 billion, two cabinet sources said in an interview with Asharq on the condition of anonymity. The line would connect northern Cairo with the southern part of the capital through 26 subway stations.
- Egypt’s chemical and fertilizer exports amounted to EGP seven billion during the first nine months of the year. Chemical and fertilizer shipments are expected to bring in EGP 8.5 billion by the end of the year, Khaled Abo Al Makarem, the Chairman of Egypt’s Chemicals & Fertilizers Export Council, noted late last month.
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