Moody Lowers Ratings for Commercial International Bank (Egypt) S.A.E. According to BAC Report17 Jan 2012 • by Natalie Aster
LONDON – 2009 and 2010 were strong years for MENA region in general and Egypt in particular. Commercial International Bank (Egypt) was among other Egyptian companies to benefit from rising GDP and consumer demand, lowering inflation. But 2011 started with political unrest, and despite the strength of Egyptian economy business environment stiffened. Continuing macroeconomic volatility and investor uncertainty put additional pressure on bank assets and affected profitability. The results of 2011 are expected to be idle/fair, and Moody was the first agency to react on this matter. For CIB new ratings are not bright:
|Bank Deposits -Fgn Curr||Ba3/NP|
|Bank Deposits -Dom Curr||B2/NP|
|Bank Financial Strength||D-
The worst part is negative outlook, which is going to affect of investors’ and potential clients’ decisions.
CIB’s performance reflects overall macroeconomic situation in the country. Q1, Q2 and Q3 brought stable revenues but declining net income. Comparing to December 2010, the quarter ending September 2011 had 7.2% higher revenue but 29% lower net income. Yet annual results look strong as they don’t include 2011 numbers yet. In FY 2010 revenue and net income grew by 12.2% and 15% respectively over the previous year.
Founded in 1975 and headquartered in Cairo (Egypt), Commercial International Bank (Egypt) is the largest Egyptian private bank focused mainly on corporate clients. CIB operates three main segments: Institutional banking, Consumer banking and Investment banking. CIB is an object to many prestigious awards for its strong performance and good prospectives.
Get more details on the company’s activities, risks, opportunities and peers from the report "Commercial International Bank (Egypt) S.A.E. Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis" recently published by Market Publishers Ltd.
Title: Commercial International Bank (Egypt) S.A.E. Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis
Date: Jan, 2012
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