CIB Egypt scores 56.64 points on First Bank financial soundness index at Sep-end

Egypt's largest private-sector bank, Commercial International Bank (CIB Egypt), has been seen scoring 56.64 points by the end of September 2022 on First Bank’s financial soundness index, compared to the sector average of 50 points.

The financial soundness index set by First Bank, measures the strength and soundness of the banks' financial positions and their ability to preserve the funds of depositors and shareholders.

The financial soundness index is based on six measures: the capital adequacy ratio, the financial leverage ratio, assets to deposits ratio, shareholders equity to deposits ratio, loans to deposits ratio and non-performing loan ratio.

CIB Egypt’s capital adequacy ratio reached 26.70% at the end of Q3 of 2022 exceeding the average rate of banks operating Egypt which was at 20.50% during the same period as well as the regulatory limits set by the Central Bank of Egypt which are consistent with Basel Accord of 12.5.

The bank has been ranked second on First Bank list of the largest banks in terms of capital adequacy ratio at Q3-22. The analysis included 11 banks operating in the Egyptian banking sector for which financial statements were made available.

Moreover, the bank’s financial leverage ratio recorded 9.40% at the end of September 2022 above the average rate of banks operating Egypt of 6.7 %. The financial leverage ratio reflected the relation between tier I used in capital adequacy ratio and the bank’s non-risk-weighted assets exceeding the regulatory limits set by the Central Bank of Egypt

However, the bank’s ratio of non-performing loans to total loans portfolio recorded 4.23% in Q3-22 higher than an average of 3.2 % of the total banking sector.

Yet, the bank’s assets to deposits ratio declined below the banking sector average recording 118% at the end of Sep 2022, compared to an average of 138.14% of the total banking sector during the same period

 Furthermore, CIB’s loans to deposits ratio recorded 39.79 % at the end of September  2022, compared to an average of 47.40% of the total banking sector at the end of the same period.

However, the bank’s shareholders equity to deposits ratio recorded 12.97% at the end of Sep 2022 exceeding the average of the total banking sector compared at 9.02% during the same period