Strong performance from CIB & Credit Agricole??, Egypt’s PMI rises slightly in October??, and TMGH reports historic sales???

CIB reports 77% YoY profit hike in Q3

Egypt’s top private bank “CIB” recorded a 77% YoY surge in net profit during the three months ending in September to EGP 14.8 billion,? it said in a statement.?

The bank also raked in revenues of EGP 25.3 billion in Q3, marking an 83% YoY hike.?

Deposits:

Deposits grew 5% or EGP 39.0 billion over the quarter, with local currency deposits growing by 4%, adding EGP18.6 billion, the lender said. Foreign currency deposits also grew by 5%, adding USD 382 million.

?CIB notes the uptick came while maintaining a share of current and saving accounts of 55% to total deposits.

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More details:

The bank’s net interest income also increased by 74% YoY in the three-month period to reach EGP 24.1 billion, while non-interest income stood at EGP 1.148 billion.

On a 9M basis:

?CIB saw an 89%YoY increase in net income to EGP 42.3 billion and an 82% YoY rise in revenues to EGP 71.5 billion in the first nine months (9M) of the year. During the first nine months of the year, net interest income increased by 74% YoY to reach EGP 65.7 billion, while non-interest income was recorded at EGP 5.9 billion.?

Deposits recorded EGP 897 billion, growing by 33% over 9M 2024 with real growth of 13% net of the EGP devaluation impact. Its gross loan portfolio recorded EGP 353 billion, growing by 33% during the period, with real growth of 15% net of the EGP devaluation impact.

Awards during the period:

The lender snagged several awards during the nine months ending in September including, the “ Market Leader for Corporate Banking” and “Best Digital Bank in Egypt” accolades from Euromoney, and the “Cash Manager of the Year in MENA Region” award from MEED.

Going forward:

“Moving forward, Management remains positive about the Bank’s growth prospects, with special regard to plans to expand the business pie and invest in more productive areas, and with due focus attended to reengineering the Bank’s processes and to heading further towards digitization, further safeguarding its market-leading position, while maintaining its sound financial performance and healthy solvency along,” the lender said in a press release.

Credit Agricole hikes its profits almost 60% in 9M

Credit Agricole Egypt raised its net income 59.58% YoY during the first nine months of the year to EGP 6.08 billion.

Net interest income:?

The bank recorded a 56.6% YoY rise during the period to EGP 8.211 billion.

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Net fee & commission income:

The lender saw a 9.7% YoY fall in net fee and commissions income for the period to EGP 1.05 billion.

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Comes after a great 1H:

Credit Agricole swelled its bottom line 68% YoY in the first half of the year to EGP 4.19 billion. The bank also recorded a 66.3% YoY rise in net interest income during the period to EGP 5.3 billion.

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Remember:

The bank was added to the main EGX30 index (which comprises the most highly capitalized and liquid stocks traded on the Egyptian Exchange) after the bourse completed its semi-annual periodic review of market indices.

Talaat Moustafa records historic sales thus far in 2024

Talaat Moustafa Group raked in EGP 470 billion in sales during 2024 – a volume equivalent to the “total sales of the 9 largest real estate companies in the Egyptian market,” the company’s CEO said late last week.

And the country is getting a slice:

Egypt’s revenues from its partnership with the firm on the “Madinaty” project amounted to EGP 100 billion, Hisham Talaat Moustafa noted.

?Impact:

Earlier in August, TMG said 2024 sales would drive its pre-tax profits by about EGP 45 billion over the next four to five years. It also added they would add significant foreign currency inflows to its coffers.

Strong performance in the first half of the year:

The company more than quadrupled its net profit in the first six months of the year, recording a 310% YoY rise to EGP 6.36 billion. TMG also hiked its revenues during the period 59% YoY to EGP 17.02 billion

What’s next:

The company plans to add 1500 hotel rooms to its hotel business in Egypt, which is expected to drive the total to 5000. Its local hotel operations are expected to generate over USD 300 million in aggregate revenues, it said.?

The firm’s CEO also said TMG is also planning to expand its operations in Iraq as part of its target to increase revenues generated overseas.

Egypt’s Purchasing Managers’ Index rises slightly MoM in October

The PMI, an indicator of business health in the economy, rose 0.2% month-on-month (MoM) in October 2024.?

So what:

A PMI reading over 50 indicates growth of the non-oil sector as compared to the previous month, while a reading under 50 suggests contraction. The index is calculated from measures of new orders, output, employment, supplier delivery times and stocks of purchases.

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Refresher:

Egypt’s PMI recorded 50.4 points in August 2024. This was the highest level reported since November 2020, and the results came on the back of local companies increasing their production levels for the first time in three years that month.?

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Details on October's numbers:

Significant cost pressures drove another increase in overall selling prices, which firms indicated had a “dampening effect” on new order volumes, S&P noted, adding that the most pronounced cuts in activity and sales were seen among construction firms.

Despite the slow down in activity, the data signaled minor expansions in firms’ stock levels and employment during October. The rate of input cost inflation also slowed back September’s six-month high as firms saw reduced pressure on purchase prices and staff costs.

Overall, only the Output and New Orders indices kept the headline measure below the 50.0 neutral mark, the global credit agency noted in its report.

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What they said:

“With the PMI at 49.0 in October, Egypt’s non-oil economy is not too far from growing again, and a lessening of cost pressures in the latest month provides some hope that economic headwinds could ease,” David Owen, Senior Economist at S&P Global Market Intelligence, said.

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