Crédit Agricole-Egypt achieves net profits of EGP 1.87 bn during Q1-2025

4/30/2025 1:44:18 PM

The Board of Directors of Credit Agricole Egypt approved the Bank’s results for the period ending Mar 31, 2025, at its meeting on Tuesday, April 29, 2025.

Main Highlights Net Profit at EGP 1,869 million, down -18% Year-on-Year (due to one-off FX income in Mar 24); Customer Deposits reached EGP 94.9 billion, up 12% Year-on-Year; Gross Loans reached EGP 58.3 billion, up 28% Year-on-Year; Current and Saving Accounts to Total Deposits reached 56%, down -2% Year-on-Year; Non-Performing Loans ratio at 2% and Coverage Ratio at 196%; Loans-to-Deposit Ratio at 61%, up +7% Year-on-Year driven by strong loans growth; Resilient Capital Structure, Capital Adequacy Ratio of 21.1%; Return on Average Assets at 5.9% down -2.6% Year-on-Year and Return on Average Equity at 37.5% down -24% Year-on-Year; Cost Income Ratio at 24.8% Up by 8% Year-on-Year;

Economic Dynamics: The outlook for global economy and inflation remains bi-directional, with central banks in some advanced and emerging market economies continuing or starting to gradually cut their policy rates with a cautious approach on monetary policy due to slow pace of dis-inflation, persistent geopolitical tensions and anticipated disruptions to global trade triggered by the US led tariff evolutions.

Domestically, Egypt is progressing on the path of sustained recovery in economic activity in 1Q 2025, driven by lower inflation (base year effect), liquid FX markets, normalization of import and trade activities along with strong support from IMF and strategic growth partners (EU and GCC) thereby enhancing business confidence.

Crédit Agricole Egypt achieved good growth in business in Q1 2025 There was good commercial growth from all business lines with the bank's gross loan portfolio increasing by 28% YoY to reach EGP 58.3 billion, while customer deposits increasing by 12% YoY to reach EGP 94.9 billion. However, Crédit Agricole Egypt (CAE) achieved -8% YoY decrease in Net Banking Income at EGP 3.4 billion due to one-off large FX income post devaluation in Mar-24 (excluding the exceptional FX effect, NBI would have increased by 7%). Corporate banking continues to achieve good results in 1Q25 driven by strong growth in the lending portfolio, evidenced by increase of EGP 8.6 billion (25% YoY) while maintaining high asset quality.

Corporate deposits witnessed moderate growth of EGP 2.8 billion (5% YoY), driven by trade backlog clearance and dynamic liability profile management. CAE continues to meet evolving client needs by having strategic focus on providing tailored financial solutions and enhancing its product offerings in order to achieve diversified income streams.

Retail banking demonstrated strong portfolio growth in 1Q25, with loans increasing by 34% and Deposits by 27% YoY. This performance was driven by successful marketing campaigns, introduction of new products, and active client’s acquisition, despite the competitive (CDs) market. Cash loans witnessed a 29% YoY growth driven by strategic cross-selling efforts. Auto loans exhibited robust growth of 310% YoY, attributed to higher tickets and ticket size.

Active customer base demonstrated excellent growth i.e. 10% YoY and 3% QoQ sequentially resulting from key initiatives focused on customer acquisition (payroll), reactivation, loan campaigns, and cross-selling. This included launching new products i.e. Secured housing loans program, time deposit with competitive rates, AHLAN accounts (for non-digital and digital acquisition), Excellence Accounts for private banking customers, Cash Loan Program (Drive Cash), three new floating CDs (Excellence, Premium, and Standard). The bank also participated in events hosted by clubs, universities, and closed communities.

Dynamic Commercial Activity and Solid Balance Sheet Structure Commercial activity remained robust and met expected levels. This stability allowed the bank to effectively serve both corporate and individual customers with appropriate financial solutions, contributing to growth in the active customer base. This positive outcome is evident in the key performance indicators: gross loans (including loans to banks) increased by 28% YoY to EGP 58.3 billion, and customer deposits grew by 12% YoY to EGP 94.9 billion.

*Corporate and Retail breakdown based on Published Financial Statements Profitability Performance Net Banking Income (NBI) demonstrated anticipated decline in 1Q25, decreasing by -8% YoY to reach EGP 3,397 million. This decline was driven by a -73% YoY decrease in other operating income (one-off FX gains post EGP devaluation in March 2024). The Net Interest Income increased by 5% resulting from higher volumes and yields but restricted by increase in cost of funds. Commissions increased by 28%, operating expenses increased with 32% YoY driven by inflation/devaluation effect. Cost to Income Ratio (C/I) increased to 24.8% from 17.2% in 1Q24 and Gross Operating Income (GOI) has decreased by -17%, reaching EGP 2,554 million. Higher cost of risk at EGP -85 million, compared to +1 million in the same period last year driven by higher recoveries in March 2024 and supported by prudent risk management including expected provisions on the business side, As a result, the net profit has recorded a decrease by -18% YoY mainly from the one-off FX revenues decrease. Sequentially, (QoQ) net banking income (NBI) has a marginal decrease by -1%. Gross operating income (GOI), -3% YoY. This outcome mainly resulted from decrease in Net interest income by -2% YoY, a slight rise in operating expenses driven by inflationary pressures and normal cost of risk.

* Income Statement based on managerial reporting

High Quality of Assets, Strong Solvency and Liquidity CAE's NPL ratio at 2.0% in Q1 2025, continuing to rank among the best within the banking sector. This low ratio, coupled with a substantial coverage buffer, indicates the high quality of the bank's credit portfolio and reflects its commitment to prudent risk management practices. This strong credit profile enables CAE to pursue healthy organic growth in its lending portfolio.

Moreover, the bank's robust liquidity and capital positions, comfortably exceeding regulatory requirements, ensuring its resilience against potential market shocks as well as supporting organic growth.

* CAR, LCR, NSFR and Leverage as reported to CBE. Key Financial and Business Indicators

*Net Interest Margin “NIM” based on managerial reporting and Earnings per Share after relevant adjustments i.e. (Employees Profit Share, Banking Development Fund etc.) Digital Journey CAE continues to be one of the leading banks in digital and is progressing efficiently towards enhancing seamless digital experience for its customers. Customers adoption of digital continues to grow remarkably with more than 4.5 million transactions processed digitally in Q1 2025 (+12% vs Q1 2024) with 99% of domestic transfers done digitally and more than 2.5 million logins over our mobile app Banki Mobile in Q1 2025 sustaining the strong engagement levels achieved in Q4 2024 CAE went live on INSTAPAY in May 2023 and continues to make significant contribution as customers have increasingly setup their accounts i.e. over 16M outgoing transactions thereby demonstrating the participation of the bank within the growing digital banking ecosystem in alignment with the continuous efforts of the CBE.

For corporate and SMEs customers, 48% of the companies have been digitally active on the online platform, with almost half of the domestic transfers now done digitally with 17% increase over Q1 2024. CAE witnessed an increase in digital governmental payments volumes by around 49% in Q1 2025 vis-à-vis Q1 2024. For Ecommerce, CAE continued its solid steps to realize it’s digitalization ambitious roadmap by capitalizing on the payment acceptance product "banki Commerce" contributing further towards the CBE efforts for a "less cash society" as well as the gradual shift to payment acceptance. As of 1Q25, "banki Commerce" witnessed 60K transactions, with volume of 154Mn processed through the new gateway YoY.

CAE remains committed to its ambitious vision in the Payment Acceptance field, and its unique onboarding journey continues to make it easy for all customers. Sustainability and CSR Activities CAE ambition is to be a reference bank for Energy Transition and Sustainable Finance and is well positioned to accompany its customers through a dedicated team of experts as well as partnerships for the desired solutions offering.

CAE, as a main sponsor, participated in a Ramadan Football Tournament which was organized by Sanad Foundation and GOSOOR. The tournament helped in raising awareness and breaking stigma against youth without parental care in the private sector.

CAE donated Ramadan food boxes for unprivileged families across Egypt in collaboration with MISR EL-KHEIR Foundation, thereby reinforcing its giving back to the society commitment.

Elderly IFTAAR, this came in response to connecting our social duties with relevant activities for the community. CAE employees joined a warm iftar at one of the elderly houses with its residents to spread joy and the feeling of togetherness.