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We have earnings updates from CIB, Obour Land, Maridive, news of 3 new real estate development projects from several players including Palm Hills, and more in today’s issue.
CIB raises its profits 96% YoY in 1H 2024
The Clap:
Egypt’s largest private bank CIB recorded its best half yet, raising its net income in both 2Q and 1H 2024 96% YoY — with EGP 15.6 billion in the former and 25.7 billion in the latter — on the back of a growth in revenues and loans.Â
Revenues:
The bank’s revenues jumped 81% YoY to EGP 24.4 billion in 2Q, and 82% YoY in 1H to EGP 46.3 billion.Â
Loans:
CIB’s gross loan portfolio saw a 24% increase to reach EGP 331 billion, while deposits grew 27% YoY to EGP 858 billion.
Return on average equity:
The bank’s return on average equity — a metric measuring efficiency of generating profits from equity invested by shareholders – rose in 2Q to 56.8% and 52.5% overall in 1H 2024.
Obour Land almost doubles its profits in 1H
The Clap:Â
Egyptian dairy producer Obour Land for Food Industries (OLFI) swelled its profits 99.4% YoY to EGP 422.91 million in the first half of the year.Â
Revenues:
The company increased its topline 29.7% YoY to EGP 3.834 billion.
Coming after a great Q1:
Back in May, OLFI reported EGP 157 million in net income for the three months ending in March, and saw its revenues rise 18.36% YoY to EGP 1.74 billion during the period.
The Clap:
Palm Hills Developments and Middle East for Investment & Touristic Development have entered into separate agreements with Arco Egypt to develop two projects , one on the North Coast and the other in projects in 6th of October city, Asharq Business reported.
Arco?
Arco was founded in 2005 by Saudi businessmen Hassan Al-Shobokshi and Fahd Al-Shobokshi. Its portfolio includes projects in Marsa Alam, and 6th of October City, New Cairo, and the North Coast, Asharq notes.
Sahel first:
The first project, to be developed by Middle East Development , will span 734 acres in the North Coast on land owned by Arco in exchange for 65% of the targeted revenues, which are estimated at about EGP 200 billion over 12 years.
Then, the one in 6 October:
Palm Hills will develop a residential project on land owned by Arco on an area of 56 acres. Although the expected revenues from the project have not been disclosed, Palm Hills will reportedly be getting a 65% cut.
In other real estate news:
Madinet Masr signed an agreement with Midar for Investment and Urban Development to jointly develop a residential project spanning 238 acres in Mostakbal City whose future asset value is expected to total EGP 21.4 billion by 2032. Madinet Masr — which already made an EGP 1.07 billion payment to land owner Midar– will hold a 62% share and Midar will hold the remainder.
The Clap:
The government is mulling a 30% hike to the price of subsidized fertilizers farmers receive to around EGP 6,250 per ton in a bid to address the increase in production costs coming due to recent gas shortages, Asharq reports, citing a state source.
Remember:
Fertilizer companies closed their factories twice last month on the back of low gas feeds, leading to multi-million losses on a daily basis. Â
So what:
The shuttering of their factories and low supplies coupled with the devaluation of the EGP — as producers pay for raw materials in the USD equivalent of EGP — have led to a skyrocketing of prices.Â
The gap in price tags between subsidized and unsubsidized fertilizers is now almost 5x, with the black market cost for a ton of the product now averaging EGP 25000.
What else is clapping?
Real estate investment fund Bonyan — owned by Compass Capital — is planning to list shares on the EGX worth USD 120 million by the end of the year. The transaction would be managed by CI Capital and Arqaam Capital.
Maridive & Oil Services recorded a whopping 151.9% YoY rise in net profit in Q1 2024 to USD 20.37 million (c. EGP 986.8 million). The company’s operating revenues rose 35.9% YoY to USD 56.1 million (c. EGP 2.7 billion) during the period.
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