The Banking Executive Magazine - August Issue 2022

Egypt's CI Capital CI Capital announced its consoli- dated results for the first half (1H) of 2022, with revenues reaching EGP 1.612bn. The company’s net profits after tax and minority interest nearly dou- bled y-o-y to EGP 341m, versus EGP 172m in 1H 2021. “The Group’s diversified business model continues to prove its re- silience in the face of wide market challenges,” said CI Capital’s Group CEO, Hesham Gohar. “The Group continued to deliver positive results across its sell-side and buy-side businesses, as well as its NBFS plat- form. With revenues and bookings increasing y-o-y across all NBFS subsidiaries, and the investment bank lines of business delivering solid results, CI Capital continues to solidify its footing as the leading di- versified financial services group in Egypt. “We generated a net profit of EGP341m and extended EGP5.7bn in new credit, with a total on-bal- ance sheet financing portfolio reaching EGP15.4bn.” Backed by strong upturn in the Group’s NBFS activity, which recorded an 81% contribution of total revenues, total on balance sheet financing portfolio recorded EGP 15.4bn in 1H22, up 36% y-o- y. Net interest income reached EGP 582m, up 41% y-o-y with a blended net interest margin of 8.7%. The Group’s NBFS activity wit- nessed strong top and bottom-line growth, with leasing – through CI Capital’s subsidiary, Corplease re- porting net profit after tax of EGP 189m. During 1H 2022, Corplease reported new lease bookings of EGP 4bn, a 55% y-o-y increase. The outstanding lease portfolio reached EGP 12.3bn in 1H 2022. The company ended the first six months of the year as the top ranked leasing provider with a mar- ket share of 16.5%. Reefy, the Group’s microfinance subsidiary, also reported stellar re- sults with net profit after tax reach- ing EGP 157m, a significant 72% y-o-y growth, backed by a strong 55% y-o-y growth in outstanding loans that recorded EGP 2bn in 1H 2022. The company continues to expand its branch network, with 15 new branches added to reach 120 branches across Egypt. CI Capital Mortgage also delivered solid results, with a portfolio of EGP 576m in 1H 2022, a 249% y-o-y growth. The Group’s investment bank con- tinued to deliver strong financial and operational results on both the buy-side and sell-side, with assets under management (AUM) reach- ing EGP 14.1bn by the end of 1H 2022, up 18% y-o-y. Meanwhile, investment banking ad- visory revenues recorded EGP 44m, delivering a 50% y-o-y increase de- spite a strong comparative period in 1H 2021. The Group’s brokerage market shares continued to domi- nate the local market in terms of market share of executions, which reached 22.7%. Group revenues witnessed a 36% y-o-y increase, after normalizing for one-off adjustments, to record EGP 1.612bn, while net operating profits more than doubled y-o-y at a 115% increase to reach EGP 567m. The group nearly doubled its net profit after tax and minority interest, with a 98% y-o-y increase to record EGP 341m, versus EGP 172m in 1H 2021. Mahmoud Atalla, Chairperson and Managing Director at CI Capital, concluded: “The company’s prof- itability and strong balance sheet enable it to continue to diversify its service offering on both the invest- ment bank and our NBFS platform, in addition to investing in our teams, while maintaining our prof- itability ratio as the highest among all investment banks in Egypt.” ISSUE 164 AUGUST 2022 the BANKING EXECUTIVE 37 Egypt's CI Capital RECORDS OVER $83MLN REVENUES IN H1 2022