CIB scores 53.55 points on First Bank financial soundness index during 9M-2023
Mai El-Kafoury
CIB was able to enhance its performance on First Bank’s financial soundness index scoring 53.55 points by the end of September 2023, compared to the sector average of 50 points at the same period.
The financial soundness index set by First Bank, measures the strength and soundness of the banks' financial position and 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.
Turning to the index's first element, the capital adequacy ratio, Commercial International Bank’s capital adequacy ratio reached 21.40% by the end of Q3 of 2023, which prompted it to rank fifth on the FirstBank list of the best banks included in capital adequacy ratio by the end of last September, exceeding the sector average of banks operating in Egypt of 18.1% by the end of the same period, and the regulatory limits set by the Central Bank of Egypt which are consistent with Basel Accord of 12.5%.
As for the second element of the Financial soundness Index, the leverage ratio, CIB exceeds the banking sector average, with the Bank's leverage ratio at 8.30% by the end of Q3 of 2023, compared to 6.6% across the sector at the end of the same period.
In terms of the third element, the non-performing loan ratio, it stood at 5.04% by the end of September 2023, compared to 3.3% across the sector at the end of the same period.
As for loans to deposits ratio (loans/deposits), CIB achieved about 38.22% by the end of Q3 of 2023, compared to the sector average of 52.40% by the end of the same period.
Regarding the fifth element, Asset coverage ratio for deposits (assets/deposits), the Bank registered 121.45%, compared to 150.96% at the banking sector level by the end of the same period, ranking eighth on the FirstBank list of the best banks included in the asset coverage ratio for deposits by the end of Q3 of last year.
Finally, in the sixth element, Shareholders’ Equity coverage ratio for deposits (equity/deposit), this index in CIB exceeds the sector average, registering 11.61% by the end of September 2023, compared to the sector’s 8.86% by the end of the same period.
