CREDIT AGRICOLE EGYPT
PRESS RELEASE – 2014 RESULTS
The Bank has reported a net income after taxation for 2014 of EGP682.4 million compares with EGP642.6 million in 2013, and has therefore increased by 6.2%. from a core business performance perspective.
2014 – A high level of profitability above plans:
Net banking income increased by 4.9% over 2013 showing a remarkable growth throughout the year, with a very robust 4th quarter performance (from quarter performance (NBI up…vs Q4 2013).
Net interest income was up 8.0%, driven by an increase in our retail loans in addition to growth of our deposits. Net commissions and fees increased by 31.9%, this increase triggered by growth in our trade finance activities with higher volumes, along with increase in net fee income driven from increase in our customers activities during the year. Regarding other income (comprising FX, Option Premium, Trading and Investment Income) revenues were down by 46.3%. The abrupt change in market conditions of foreign currency drove much lower FX revenues comparing with last year.
|
EGP Million |
2014 |
2013 |
Growth % |
| Net Interest Income |
1,223 |
1,132 |
8.0% |
| Net Fees & Commission Income |
456 |
345 |
31.9% |
| Net Trading Income |
121 |
225 |
-46.3% |
| Other Operating Income |
28 |
38 |
-27.4% |
| Net Banking Income |
1,828 |
1,742 |
4.9% |
| Total Expenses |
(733) |
(736) |
-0.4% |
| Gross Operating Profit |
1,095 |
1,006 |
8.8% |
| Impairment |
(112) |
(147) |
-24.3% |
| Net Income Before Tax |
983 |
858 |
14.5% |
| Tax |
(301) |
(216) |
39.4% |
| Net Income |
682 |
643 |
6.2% |
| Cost / Income Ratio |
40.2% |
42.2% |
2.0% |
Our operating profit before provisions and taxation increased by a satisfactory 8.8%, and despite increase of tax rate from 25% to 30%, income after tax grew by 6.2% to reach EGP 682.4 million.
Our Return on Equity is 30.3% in 2014 slightly higher than 2013 which is one of the highest profitability level among Banks in Egypt.
Capital Adequacy Ratio is 14.31% (against minimum 10% requested by the Central Bank of Egypt).
Strong commercial development driven by retail and capital market activities:
The Bank’s activities, on the whole, performed well. Growth in our overall balance sheet was achieved through very satisfactory development of client deposits (+8.8% over 2013), thanks to strong contribution of Corporate clients, with low cost deposits growing by 42.2% over the year.
|
Clients Deposits (EGP Million) |
2014 |
2013 |
Variance |
| High Cost |
17,678 |
18,178 |
-2.7% |
| Low Cost |
8,935 |
6,284 |
42.2% |
|
Total |
26,613 |
24,462 |
8.8% |
Gross loans increased by 4%, Retail segment dominated the growth over 2013. Corporate lending started to pick-up during 2014, with also solid development of our off balance sheet (letter of guarantees, letter of credit) activities, due to acquisition of new clients.
|
Loans to clients (EGP Million) |
2014 |
2013 |
Variance |
| Corporate |
9,098 |
9,289 |
-2.1% |
| Retail |
3,891 |
3,220 |
20.9% |
| Banks |
40 |
17 |
135.0% |
|
Total |
13,030 |
12,526 |
4.0% |
The Bank’s (gross) Loans to Deposits ratio was 49% at the end 2014, down from 51% last year given the loan slight increase, although the Egyptian market total average is around 40% only.
efficient resources management with major investments ahead :
Our expenses slightly below last year by 0.4%, below prevailing levels of inflation and one of the top performers in our Bank peer group which reflects rigorous management of expenses, cost to Income Ratio was reduced from 42.2% to reach 40.2% end of 2014.
|
EGP Million |
2014 |
2013 |
Growth % |
| Employment expenses |
346 |
350 |
-1.1% |
| Operating expenses |
338 |
330 |
2.6% |
| Depreciation expenses |
48 |
56 |
-13.6% |
|
Total |
733 |
736 |
-0.4% |
In the meantime in line with our core values based on proximity, usefulness and commitment, bank supported more major CSR projects in favor of youth, promoting access to education and better health (hospitals, care centers in slum areas, ..). Our donation expenses increased from 3 MEGP to 6 MEGP in addition to 10 MEGP paid to “Tahya Misr Fund” in 2014.
satisfactory cost of risk :
In 2014 we had satisfactory evolution of Cost of Risk despite a Mid Cap file loss, this positive trend applies to both Corporate & Retail. Worth to mention retail cost of risk reached its lowest level ever over the past 3 years due to decrease in delinquency and efficient collection which reflects satisfactory Retail portfolio quality.
|
Cost of Risk (EGP Million) |
2014 |
2013 |
Variance |
| Retail |
10 |
14 |
-28.6% |
| Corporate |
102 |
136 |
-25.0% |
|
Total |
112 |
150 |
-25.3% |
| Cost of Risk % (on and off balance sheet) |
0.70% |
0.95% |
-0.25% |
Consequently reflecting good evolution of quality risks. Non-performing loan level decreased since 03/2014 to 2.5% of total exposure, with total risk provision representing 85.2% of total NPL exposure
Outlook for 2015 : More growth opportunities in better economic environment
As we witness an acceleration of growth of the Egyptian economy triggered by structural reforms taken by the government, we will continue to improve the quality of service for our existing clients, at the highest standard.
We will seize the opportunities of better Egyptian economy in 2015 to further develop our retail network and grow our Corporate & Capital Markets activities, with the support of all our stakeholders.
