CIB Investment Strategy by March-2023end

The separate financial statements of Commercial International Bank - Egypt (CIB), ending on March 31, 2023, revealed a growth in the bank's total assets by 7.98% during the first quarter of the current year, reaching EGP 684.2 bn by the end of March 2023, compared to EGP 633.6 bn by the end of December 2022, with an increase of EGP 50.6 bn.

Analyzing the investment trends of CIB by the end of March 2023:

The bank focuses on deploying a larger proportion of its funds in financial investments instead of lending to customers. This is evident from the increased relative weight of total financial investments in the bank, compared to the percentage of customer loans, which witnessed a slight increase in its relative weight as a share of the total asset portfolio by the end of March 2023.

Total Financial Investments

Although its relative weight has noticeably declined, the total portfolio of securities held the largest share of the bank's investment trends, accounting for a relative weight of 33.36% of its assets by the end of March 2023, compared to 37.42% by the end of December 2022.

Financial investments portfolio reached EGP 228.2 bn by the end of March 2023, compared to EGP 237.1 bn by the end of December 2022.

Customer Loans

The net portfolio of loans and facilities to customers obtained the second position in the bank's investment trends, despite a slight increase in its relative weight to 30.99% of the bank's total assets by the end of March 2023, compared to a relative weight of 30.40% by the end of December 2022.

Loans and facilities to customers portfolio in CIB increased by a growth rate of 10.07% and an increase of EGP 19.4 bn, reaching EGP 212 bn by the end of March 2023, compared to EGP 192.6 bn by the end of December 2022.

Balances with Banks

The relative weight of Balances with Banks increased to occupy the third largest relative weight of the bank's total asset portfolio, amounting to 24.79% by the end of March 2023, compared to a relative weight of 21.11% by the end of December 2022.

The volume of CIB's balances with banks increased by a growth rate of 26.79% and an increase of EGP 35.8 bn during the first quarter of the current year, reaching EGP 169.6 bn by the end of March 2023, compared to EGP 133.8 bn by the end of December 2022.

Cash and Balances with CBE

Despite a slight increase in the relative weight of Cash and Balances with the Central Bank, it ranked fourth in the bank's investment trends, with a relative weight of 7.65% of the bank's total assets by the end of March 2023, compared to a relative weight of 7.48% by the end of December 2022.

Its value reached EGP 52.3 bn by the end of March 2023, compared to EGP 47.4 bn by the end of December 2022, with a growth rate of 10.41% and an increase of EGP 4.9 bn during the first quarter of the current year.

Other Assets

The relative weight of other assets declined to 2.15% of the bank's total assets by the end of the previous March, amounting to EGP14.7 bn, compared to a relative weight of 2.48% and a value of EGP14.5 bn by the end of December 2022. Despite the decrease in its relative weight, other assets experienced a growth rate of 1.60% during the first quarter of the current year.

Bank's Loan Market Trends

By examining the components of the total loan portfolio, it is evident that the bank leans more towards granting credit to corporates rather than individuals, given the higher relative weight of corporates at the end of the first quarter of 2023.

Corporate Loans

Total corporate loans accounted for a relative weight of 78.20% of the bank's total customer loans by the end of March 2023, compared to 75.63% by the end of December 2022.

The bank's total corporate loan portfolio increased by a growth rate of 15.11% and an increment of EGP25 bn during the first quarter of the current year, reaching a value of EGP190.3 bn by the end of March 2023, compared to EGP165.3 bn by the end of December 2022.

Retail Loans

The relative weight of Retail loan portfolio decreased to 21.80% of the bank's total customer loans by the end of March 2023, compared to a relative weight of 24.37% by the end of December 2022. The value of Retail loans amounted to EGP53.1 bn by the end of March 2023, compared to EGP53.3 bn by the end of December 2022.