CIB net income rises 2% as deposits grow 31% and margins narrow

EGP 63.1 billion in net income for the first nine months of 2026 marked a 2% year-on-year increase for Commercial International Bank (Egypt) S.A.E., as deposit and loan growth offset pressure on lending margins.

Head of Investor Relations Yasmine Hemeda said normalized net income rose 18%. Consolidated revenue reached EGP 103 billion.

What drove earnings beyond the reported figures?

Hemeda's calculation removed an EGP 13.1 billion provision recalibration release from the third quarter of 2025, an EGP 2 billion regulatory expense reversal and an EGP 2.1 billion provision release linked to a corporate client repayment. She said normalized net income grew 9% in U.S. dollars.

Net interest income rose 19% year over year, while normalized non-interest income rose 46%. Fees and commissions helped drive a 43% increase in the sustainable component of non-interest income, and normalized revenue grew 20%.

Net interest margin (NIM, net interest income relative to interest-earning assets) fell to 8.40%, down 53 basis points, after cumulative monetary policy rate cuts of 600 basis points. One basis point equals one hundredth of a percentage point. Reported return on equity was 34.3%, compared with about 32.7% normalized, and the cost-to-income ratio stood at 15.6%.

Takeaway: Underlying income is strengthening, but lower policy rates are already compressing the margin.

How is CIB funding growth?

Group CFO Islam Zekry said the bank's blended cost of funds fell 290 basis points.

Its funding mix includes current and savings accounts, payroll services, acquiring businesses and small and medium-sized enterprise customers.

Deposits increased 31% year to date to EGP 1.45 trillion, including 42% growth in local-currency deposits. Gross loans rose 22% to EGP 705 billion, and local-currency loans rose 15%. Current and savings accounts represented 63% of total deposits.

Takeaway: CIB is adding deposits faster than loans, with accounts supplying most funding.

What changed in the 2026 guidance?

CIB raised its full-year 2026 deposit growth forecast to 30%, from 20%-25%, and kept its other guidance unchanged. Management expects a 50%-60% contribution to deposit growth from current and savings accounts.

Hemeda reiterated four forecast ranges:

• Net income growth of 15%-17%, based on a normalization for the EGP 13.1 billion recalibration.
• Blended loan growth of 20%-25%, including local-currency growth of 25%-30% and foreign-currency growth in the low teens.
• Net interest margin compression of 60-70 basis points and return on equity of 33%-35%.
• Cost of risk (expected credit losses as a share of lending) of 0.5%-0.7%.

Management had no definitive 2027 outlook and was still working on the budget.

Takeaway: The raised target concerns deposits; earnings, lending and risk assumptions remain unchanged.

What do capital, provisions and payouts show?

The capital adequacy ratio stood at 28.8%, including a common equity tier 1 ratio of 25.3%. Non-performing loans (loans unlikely to be repaid) made up 1.47% of loans, with a 343% coverage ratio, Hemeda said.

Zekry called the EGP 2.1 billion provision release a one-off transaction involving a tourism client and the EGP 2 billion regulatory expense reversal non-recurring. CIB accrued bank resolution-fund expenses from 2020 and reversed them this year, after the fund's establishment under a new calculation mechanism.

CRO Walid Fawzy said Egypt's credit upgrade was already reflected in the economic indicators used in the bank's expected credit loss model. Changes to those indicators or scenario weightings could still affect calculations.

Hemeda said CIB considers about 20% capital adequacy sufficient in normal conditions and targets 25% or more during periods of uncertainty. She said it was "too early to specify a payout," though it should fall between the historical low of 5% and the exceptional 30% paid last year.

Takeaway: A strong capital buffer leaves the payout undecided.

When will yomo reach the market?

CIB owns 100% of planned digital bank yomo and will invest $300 million, Zekry said. Most will fund technology and the people building the platform, with some covering operating losses in the first two years.

Zekry said the holding company was established in Abu Dhabi Global Market after reviewing taxes, geography and regulation. The structure provides options for expansion and additional capital.

Technical readiness is due by the end of the first quarter of 2027, followed by Central Bank of Egypt approval before launch. Hemeda expects break-even between the third and fourth years after launch.

Zekry acknowledged that yomo could attract existing CIB customers, but expects the platform to "offer better group economics" and reach customer segments conventional banks may not serve economically.

Takeaway: The digital launch still depends on regulatory approval, with break-even targeted after year three.

What does CIB do?

CIB provides financial products and services in Egypt through four segments: Corporate Banking, Investment, Retail Banking, and Assets and Liabilities Management.

Its product set spans:

• Current and savings accounts, business accounts, time deposits and certificates of deposit.
• Car, personal, travel, solar, education and overdraft loans, fund investment management, mortgage services and insurance products.
• Credit, debit and prepaid cards, a smart wallet, mobile, internet and phone banking, and ATM services.

Takeaway: CIB's core franchise covers four segments, while yomo extends the product set into digital banking.