HC Securities expects 5-year CAGR of 24% in CIB’s net income
Updated 7/7/2024 2:58:00 PM
Arab Finance: HC Securities and Investment is expecting the Commercial International Bank’s (CIB) net income to grow at a five-year compound annual growth rate (CAGR) of 24% from 2023 to 2028, as per a research note sent to Arab Finance.
It also forecasts a 70% year-on-year increase in 2024 net profits to reach EGP 50.4 billion due to high interest rates, the EGP devaluation, and increase in current accounts, representing 55% of total deposits.
Moreover, the firm projects the bank’s net interest margin (NIM) to rise to 9.57% in 2024 from 7.75% in 2023, with a return on equity (ROE) of 49.8%, up from 37.5% in the previous year.
In addition, the agency expects the CIB to maintain its deposit market share, which is estimated at 6.4% this year, growing its deposits by 23% YoY to EGP 835 billion in 2024.
Moreover, the CIB’s loan market share is estimated at 4.9% in 2024, growing its loan portfolio by 29% YoY to EGP 303 billion in 2024 to finance corporates’ higher working capital needs.
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