Commercial International Bank IR presentation Year End 2012
Disclaimer This document is the property of CIB and it may contain confidential information solely for use as an investor presentation. It must be treated confidentially by attendees at such presentation and should not be reproduced, redistributed or passed to any other person. The information contained in this presentation may contain certain projections and forward ‐ looking statements that reflect the bank’s current views with respect to future events and financial performance. These views are based on current assumptions which are subject to various risks and thus may change over time. No assurance can be given that future events will occur, that projections will be achieved, or that the bank’s assumptions are correct. Actual results may differ materially from those projected. None of the statements contained in this presentation is to be relied upon as a statement or representation of fact. All parties must satisfy themselves as to the correctness of each of the statements contained in this presentation. This document is provided for informational purposes only. It is not an offer to buy or sell, or a solicitation to buy or sell CIB’s shares. Readers should take into account factors of uncertainty and risk when basing their investment decisions on information provided in this document. 2
Agenda Macro-Environment About CIB CIB Financial Highlights Consumer Banking Snapshot CIB Strategy Summary and Conclusion
Egypt Fact Sheet -Population: 87.1mn* -Median age: 24 -Growth: 3.1% over 2010 Favorable -Private consumption/GDP: 71.7% -Public consumption/GDP: 11.9% Demographics -Labor force/population: 27.9%* -Unemployment rate:12%* - Nominal GDP: EGP 381,246bn 2 -Historical GDP growth: 5.31% (2005/2011CAGR)¹ Attractive Growth -GDP Per Capita (PPP): $2,958¹ Opportunities -Total bank debt/GDP: 33% -Loans/Deposits: 47.8% (November2012) -Corporate loans/GDP: 25% -Household debt/GDP: 7% Underleveraged 2 -Agricultural: 9.98% -Gross Exports: 1.14%** * -Transportation: 4.59% Diversified as % of -Industrial: 27.78% -Government: 9.51% -Tourism: 3.29% Total Domestic -Mining: 11.76% -Remittances: 2.70%*** -Suez Canal: 1.37% Production - Financial services 2.1% -Trade:8.96% -Construction: 7.59% -FDIs:0.7 %*** -Net International reserve: $15bn (Sep.2012) -Current A/C balance: $-1535.7*** Manageable Debt -LT external debt: $31.5bn*** -ST external debt: $2.9bn*** 80% of debt is in local currency, held by public sector • Banking reform program, Phase I (2005-2008) successfully completed Robust banking • Phase II (2009- 2012) :currently being implemented, aiming at improving the sector reforms regulatory environment, adopting Basel II and increased focus on corporate governance • Stringent regulations limit concentrated risk exposure and proprietary investment Figure as of 2011 • 1. IMF WEO Estimates for 2012, April 2012 2. Figures as of April/June 2012 * Preliminary number *** Figures as of Q4 2011/2012 As of July/March 2011/2012 Source: Central Bank of Egypt (CBE) 5
Macroeconomics Snapshot GDP Growth Inflation 8% 7.2% 7.1% 18.3% 20% 6% 16% 5.1% 13.5% 4.7% 10.3% 12% 9.6% 4% 6.9% 2.2% 8% 1.9% 4.7% 2% 4% 0% 0% 06/07 07/08 08/09 09/10 10/11 11/12 2007 2008 2009 2010 2011 2012 *GDP at Factor Cost (Constant prices 2006/2007) **FY 11/12 based on preliminary figures FDI Sovereign Debt 150% In USD Millions 87.7% 93.7% 13,237 95.1% 14,000 125% 84.7% 11,053 12,000 73.5% 80.3% 76.2% 73.6% 72.5% 100% 74.9%* 10,000 8,113 75% 8,000 6,758 6,111 6,000 38.1% 50% 31.1% 3,902 27.6% 22.8% 4,000 20.1% 15.9% 16.9% 2,189 15.2% 13.5% 25% 2,078 11.9%* 2,000 701 428 407 0% 0 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 Sep-12 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 External Debt in LCY/GDP Gross Domestic Debt/GDP *2012 Provisional Figures 6
Egyptian Banking Sector Snapshot 67% 61% 60% 59% 58% 53% 52% 52% 50% 49% 1035 965 900 820 756 658 571 543 497 438 293 304 318 344 382 399 427 464 471 502 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 Aug-12 Total deposits (EGP bn) Total loans (EGP bn) loans to deposits ratio December 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 2012 # of 62 61 59 43 41 40 39 39 39 banking licenses Source: CBE 7
Strategic Milestones Chase Divestiture : First GDR Ripplewood led Strategic Subsidiaries US$ 120M consortium divested half established to complement Renamed CIB 22.2% of share capital of its holdings our core business in CIB to Actis 1975 1987 1993 1994 1995 1996 1997 1998 2006 2009 RW holding sold its Consortium led by First International First Egyptian Bank remaining stake in CIB, Chase National Rating by S&P and Ripplewood IPO raising US$ 115M thus marking the Acquired NBE Established Fitch : BBB- 150% oversubscribe d transition of strategic 19% Stake partnership to Actis 9
General Information CIB’s Stock is listed in the Egyptian Stock Exchange , London Stock Exchange and traded in New York Stock Exchange Shareholding Structure Share Information Shares outstanding 597,227,541 Actis 9.14% Par value EGP 10.00 GDR Ratio 1:1 Last 52 weeks Hi 39.6 Free Last 52 weeks Lo 21.11 Float P/E 9.27x 90.86% CIB Stock Activity CIB Stock Info. 300 250 2010 2011 2012* 200 Market Cap.-EGP 27,972mn 11,097mn 20.353mn 150 Daily Liquidity 57.06mn 26.85mn 33.74mn 100 Avg. Daily Volume 1.51mn 0.953mn 1.104mn 50 0 Avg. Daily Price-EGP 38.02 28.18 30.55 * As of 19/02/2013 CIB Index EGX30 Index Source: Bloomberg 10
CI Group Structure 11
CIB’s Distribution Network 12
CIB’s Business Segments Business Institutional Consumer CI Capital Banking Banking Segments Market leader in • Description The take-off for a • Egypt Full-fledged • world class Investment The prime • consumer banking Banking arm contributor to franchise profitability Focus on Multinationals and • Research • Egypt’s largest Retail customers • Securities • corporations, Mid- and SMEs Brokerage caps, Institutions Asset Management and Banks • Investment Banking • Customers Over 500 478,597 • • 84. 93 % 15.07% Loans Contribution to 24.92% 75 .08% Deposits 13
Corporate Governance Commitment to Corporate Importance of Corporate Governance Governance Corporate governance is an issue that rates high It has been demonstrated over and on our list of priorities over that effective corporate governance in banks CIB’s commitment to maintaining the highest standards of corporate governance is supported by not only several mandates, including: enhances investor confidence 1. Segregation of role of Executive Management and in the Bank Board of Directors and 2. Internal policies and manuals covering all business provides it with a competitive aspects advantage to attract domestic 3. Highly skilled Investor Relations Team and foreign capital 4. Board sub-committees: Audit Committee • but also Corporate Governance and Compensation • helps in withstanding Committee economic downturns Risk Committee • Management Committee • High Lending and Investment Committee • 14
Commitment to Corporate Governance CIB’s Board of Directors We take pride in our strong CIB was the first Egyptian corporation to establish corporate governance structures an Audit Committee in 1998 which include The Board and its committees are governed by Experienced team of well-defined charters professional executive directors and senior CIB’s Board of Directors sets the Bank’s overall management strategy and ensures that controls are in place to deliver maximum value to all stakeholders; Competent board committees CIB’s Board consists of nine members, seven of Distinguished group of non- which are Non-Executive members with a range of Executive directors industry expertise CIB’s Board met seven times over the course of CIB’s highly qualified Board of 2011 Directors is supported by internal and external auditors, as well as When a board seat becomes vacant, the other internal control functions Governance Committee is responsible for nominating a new member Risk • Compliance • 15 15
CIB’s Top Management CIB’s Top Management 16 16
Awards and Recognition 17
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