Bank’s loan loss provision balance records EGP 15.4bn, covering 11.5% of total loan portfolio
The Commercial International Bank – Egypt (CIB) reported, on Wednesday, consolidated net income of EGP 2.35bn, or EGP 1.44 per share in the third quarter (3Q) 2020, down 26% from 3Q 2019.
The bank’s management commented, “Approaching the end of one exceptionally dynamic year, CIB managed to deliver another record of strong financial performance, while prioritizing solvency over profitability in light of the macroeconomic challenges that followed the COVID-19 outbreak. Despite wide anticipations of a speedy global economic recovery, ambiguity continued to overshadow the overall outlook and hence the creditworthiness of clients. Accordingly, Management maintained consistency with provisions, accumulating EGP 1.6bn in 3Q 2020, further reinstating the Bank’s prudent Risk Management approach and pledge to put solvency first.”
With that, the bank’s loan loss provision balance recorded EGP 15.4bn, covering 11.5% of the total loan portfolio, and 16% of the unsecured portion, which alongside the steadfast capital base of EGP 59bn, translating into 31.0% capital adequacy ratio, affirms the resilient coverage for CIB in terms of both expected and unexpected losses, resting comfortably above regulatory requirements and pioneer in the Egyptian banking sector.
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