Cairo – Mubasher: Pharos Research has maintained their ‘Equalweight’ recommendation for Commercial International Bank - Egypt (CIB) based on a fair value (FV) of EGP 105 per share.
The bank is currently trading below the historical “good-times” average, Pharos said in a report on Thursday.
The CIB’s robust interim financial results were driven by resilient margins as CASA deposits leapt to 57% in the second quarter of 2018, the cost to income ratio that fell by 200 basis points, improved asset quality, and solid capital base with capital adequacy ratio registering 17.9%.
On the other hand, “investment income failed to support non-interest income as it fell by 61% quarter-on-quarter mainly on lower trading income,” the research firm added.
Pharos also noted that that the anticipated new banking act has overshadowed the sector’s price performance.
Earlier this morning, the CIB posted a 23.4% year-on-year rise in consolidated profits for the first half of 2018, recording a net profit of EGP 4.42 billion, versus EGP 3.58 billion.
Meanwhile, standalone profits went up by 22% to reach EGP 4.41 billion at the end of June, compared to EGP 3.6 billion in H1-17.
