Cairo – Mubasher: Export Development Bank of Egypt (EBE) posted its consolidated results for the third quarter of the fiscal year 2015/2016, which showed a 52% YoY drop in net profit to EGP 40 million compared to EGP 84 million in the same period last year, missing MubasherTrade Research's estimates (MTRe).
"The decline in earnings was a result of a 72% YoY plunge in non-interest income which came in at EGP 17 million. Weaker non-interest income was largely owed to losses from FX revaluation and AFS sales, after the bank achieved net gains in the comparative quarter of 2014/2015," the research unit said in a statement on Sunday.
EBE posted growth of only 1% YoY in net interest income in Q3 2015/2016 (-18% QoQ), whereas its administrative expenses were up 16% YoY to EGP 79 million.
The bank also reported a 5% YoY rise in profits in the nine-month period in 2015/2016 to EGP 295 million, supported mainly by its "outstanding performance in the first two quarters," according to the note.
Nine-month results for 2015/2016 earnings missed MTRe by 22%, the note said, adding that net interest income increased 12% YoY to EGP 574 million during the nine-month period, missing MTRe by 6%, while non-interest income declined 13% YoY in the same period to EGP 165 million (-8% vs. MTRe).
Due to EBE unexpected negative performance during Q3 2015/2016, MTR will revisit its target price and rating.
