An unrivalled ability to grow its core business while tapping into new markets and pursuing new opportunities has solidified CIB’s market-leading status. The Egyptian bank’s dynamic business model and commitment to integrating leading technology across its operations have ensured a strategy that creates value for its customers, employees, shareholders and society.
“CIB has proven the strength and sustainability of its business model and flexible balance sheet by achieving yet another record year of success, while maintaining top-notch liquidity and solvency levels,” says Islam Zekry, the group’s chief financial officer.
All of CIB’s main business segments have enjoyed significant growth so far this year. The firm’s institutional banking loan book increased by 28% in the first half of 2024 to EGP253bn ($5.2bn) and its institutional deposits grew by 19% to EGP293bn.
Stellar loan growth has not come at the expense of asset quality. On the contrary, the bank’s non-performing loan ratio has declined to just over 4%.
The increase in loans and deposits was accompanied by impressive profits. CIB recorded net income of EGP27.5bn ($570m) for the first half of 2024 — up 96% on the same period in 2023.
“CIB’s financial performance, both historically and presently, is a proof of its sustained success and resilience in a dynamic financial landscape,” says Zekry. “This success is further evidenced by the bank’s ability to adapt to changing market conditions while maintaining strong performance.”
Three main themes form the core of CIB’s strategy: capitalising on the success of its corporate and liabilities franchises; growing and diversifying revenue streams to achieve sustainability and resilience; and becoming a digital leader in sales, customer service and operations.
CIB recognises that digital transformation is key to achieving business sustainability. Through integrating first class technology into its offerings, the bank strives to provide customers with a seamless and secure banking experience. It consistently prioritises the development of digital channels, data analytics, innovative solutions and customer satisfaction.
This in turn allows CIB to manage costs, ensure sales efficiency and offer distinctive digital value propositions. Zekry says: “Placing customers’ needs at the heart of the bank’s products and services has significantly contributed towards CIB’s digital transformation.”
Sustainable solutions
CIB also plays a leading role in the burgeoning sustainable finance market. It was the first Egyptian bank to issue a green bond programme, which funds a diverse range of green projects and has helped drive portfolio growth and green asset utilisation to over $130m.
In partnership with the International Finance Corporation, CIB has signed a $100m senior debt agreement for green financing. “This financing underlines CIB’s steadfast commitment towards sustainable finance and is a significant milestone that will deliver comprehensive and innovative financial solutions to our clients,” says Zekry. “This partnership enables CIB to offer sustainable solutions that will mitigate climate change, such as green buildings, resource efficiency, renewable energy and industrial energy efficiency.”
The institutional pillars of CIB’s approach to sustainable finance incorporate finance, governance, management, communication, education and innovation. A constantly evolving strategy allows the bank to offer innovative sustainable finance offerings, cultivate risk management, integrate environmental, social and governance practices across its operations and develop its disclosure practices. “CIB acknowledges its vital role in serving the environment and society,” says Zekry, “and is committed to leading Egypt’s transition towards a green and low carbon economy.”
Driving trade
Long a market leader in Egypt, CIB is bringing its unrivalled strength across all facets of modern banking to new frontiers.
Its acquisition of CIB Kenya in 2022 was the first by an Egyptian bank in Sub-Saharan Africa. CIB Kenya’s focus is on digital banking solutions and trade finance activities — helping drive the growing Egypt-Kenya trade corridor and supporting Egyptian small and medium-sized enterprises and large corporations in Eastern Africa.
CIB Kenya recently opened its seventh branch in Mombasa and underwent a comprehensive product revamp. The Kenyan operation has launched a variety of products to serve corporate banking and retail customers, to provide the Kenyan market with personalised financial solutions.
“These products underscore CIB Kenya’s commitment towards creating a brand that offers exceptional value and a superior banking experience,” says Zekry. “CIB Kenya aspires to become East Africa’s digital and business hub, helping both countries benefit from regional integration efforts and becoming members in several trade agreements, such as the African Continental Free Trade Area.”
KEY COMPANY DATA
First half of 2024
Total assets: $21.9bn
Net profit: $576.3m
Capital adequacy ratio: 26.2%
Loan to deposit ratio: 38.7%