Egypt’s Commercial International Bank half year profits drop amid raging COVID-19 pandemic

Egypt’s CIB Bank

EGYPT – The Commercial International Bank’s (CIB), one of the largest commercial banks in Egypt has recorded a profit drop in the first six months of the year owing to a tough business environment occasioned by the COVID-19 pandemic.

A statement from the Bank revealed that CIB recorded a profit of LE4.99 billion (US$312 million) during the first six months of this year, a 6.6 percent drop when compared to the LE 5.35 billionn (about US$335 million).

Commercial International Bank clarified in a statement that the net income from the revenue increased to LE 12.47 billion (about US$790 million), compared to LE 10 billion (about US$626 million) in the first half of last year.

CIB further noted that during the first quarter of 2020, its consolidated profits amounted to LE 2.39 billion (about US$150 billion), compared to profits amounting to LE 2.64 billion (about US$165 million) in the same period of 2019.

Prior to the Covid-19 pandemic, Commercial International Bank’s revenues were performing well rising to US$1.35 billion in 2019 from US$1.135 recorded in the previous year.

Earlier this year, Egypt’s Commercial International Bank (CIB) expanded its foot print into East Africa, acquiring a 51% stake in Kenya’s Mayfair Bank.

“The acquisition of a majority stake in Mayfair will anchor CIB’s expansion into the East African region. Its entry will also strengthen the trade and investment ties between Kenya and Egypt,” CBK said in statement.

Chairman of CIB Hisham Ezz Al-Arab, had confided to Reuters that following the acquisition, the Egyptian based bank injected additional capital of $35 million into Mayfair.

“The bank (Mayfair) is a small bank but this is our idea of growing in Kenya, a very well-regulated market. The deal is part of our expansion in Africa,” the chairman of CIB had then said.

Ezz Al-Arab confirmed that the Commercial International Bank had plans to expand the bank by focusing on the retail segment, corporate banking and trade finance.

According to Ezz Al-Arab, CIB hopes to eventually turn Mayfair into a hub for trade finance in Kenya and the neighbouring countries.

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