close

policy

We would like to invite you to continue a survey you have started. ...

Do you trust your insurer ?

Strongly agree
Agree
Disagree
Strongly disagree
Insurance provides peace of mind
Insurance is purchased only when compulsory
Terms and Conditions (small print) are clear and easily accessible
Insurance jargon (language) stands in the way of fully understanding each policy
Insurance companies try their best to uphold the details of the policy without cutting corners
Reducing risk, cutting costs and profits are more important to an insurance company than the customer
Insurance companies in the region are as professional as in other more developed markets
Gender
Age group
Do you feel your insurance provider works in your interest?
Have you had a rejected claim that you feel was not justified?
Do you trust your insurance provider?
Our Network

Register for our free newsletter

 
 
Latest News

Egypt’s CIB says second quarterly net income grows 18 percent

Central Bank of Egypt

Egypt's Commercial International Bank reported an 18 percent increase in second-quarter net income on Tuesday, above the expectations of analysts who say the country's lenders are benefiting from soaring yields on government debt.

0

August 15, 2012 10:26 by



Egypt’s Commercial International Bank reported an 18 percent increase in second-quarter net income on Tuesday, above the expectations of analysts who say the country’s lenders are benefiting from soaring yields on government debt.

Net profit at the country’s biggest privately owned bank by assets was 523 million Egyptian pounds ($86.17 million), above the 443 million it reported for the same period a year earlier and an analyst consensus forecast of 505 million.

Egypt’s business sector has been struggling to recover from the disruption that followed President Hosni Mubarak’s overthrow last year. Banks such as CIB kept their bottom line growing thanks partly to record-high interest rates paid by the state this year for its short-term borrowing.

Consolidated revenues at CIB grew 23 percent to 1.23 billion pounds, above the average forecast of 1.09 billion in the Reuters poll of analysts.

State borrowing costs have soared as foreign investors exited the local treasury market, tax receipts suffered from a weak economy and the government boosted spending to meet popular demands for better living standards after Mubarak’s overthrow.

“We already saw other banks reporting top-line growth on the higher yields from treasury bills,” Beltone Financial Sara Boutros said earlier on Tuesday ahead of CIB’s results.

She said banks’ retail loan books have also been growing, partially compensating for the decline in corporate lending.

CIB’s gross loans grew 9.6 percent to 42.83 billion pounds at the end of the quarter from a year earlier. Net interest income was 1.80 billion pounds for the first half, up 43 percent from a year earlier.

CIB said higher loan loss provisions meant they now covered 134.8 percent of non-performing loans, up from 120.6 percent at the end of 2011.

“Even with the higher cost of risk resulting from Egypt’s prolonged economic recovery, CIB is well on course to achieving outstanding full-year results,” the bank said in its statement.

CIB shares have gained 52 percent this year, tracking the wider market higher on optimism that the worst of the economic turmoil sparked by Mubarak’s overthrow may be over.

Much of the gain came since late June when a new president was propelled in office with the strongest popular mandate in the country’s history. ($1 = 6.0692 Egyptian pounds) (Reporting by Tom Pfeiffer; Editing by Gary Hill)



0

Tags: , , ,

Leave a Comment