Credit Agricole Egypt reports an increase of 34.1% of its net income after tax for 1st quarter 2016 of EGP313.4 million compared with EGP233.8 million in 1st quarter of 2015.
Commercial development driven by all activities :-
The bank’s overall activities have performed well. The number of customers has increased by 8% over the 1st quarter of 2015. The growth of the overall balance sheet was achieved through the development of clients’ deposits by +3% over December 2015, out of which low cost deposits that increased by 8% over the same period. Client loans increased by 2.6% over December 2015 driven fully by retail loan activities. Corporates and enterprises’ weaker demand during the 1st quarter was noticed due to the general slowdown of the market.
During the 1st quarter of 2016, Credit Agricole Egypt has increased its branch network to reach 79 branches.
| Loans | ||||||
|
EGP Million |
March 2016 |
December 2015 |
Change % |
|||
| Corporate |
9,867.6 |
9,807.2 |
0.6% |
|||
| Retail |
4,917.7 |
4,706.9 |
4.5% |
|||
| Banks |
274.0 |
167.5 |
63.6% |
|||
|
Total |
15,059.3 |
14,681.6 |
2.6% |
|||
| Deposits | ||||||
|
EGP Million |
Q12016 |
Q42015 |
Change % |
|||
| High Cost |
16,601.6 |
16,682.2 |
-0.5% |
|||
| Low Cost |
10,795.0 |
9,981.0 |
8.2% |
|||
|
Total |
27,396.6 |
26,663.2 |
2.8% |
|||
A Sustainable growth in profitability in Q12016 :
|
EGP Million |
Q12016 |
Q42015 |
Change % |
Q12015 |
Change % |
| Net Interest Income |
442.4 |
424.6 |
4.2% |
365.6 |
21.0% |
| Net Fees & Commission Income |
115.1 |
117.4 |
-2.0% |
118.9 |
-3.2% |
| Net Trading Income |
45.4 |
34.8 |
30.4% |
55.3 |
-17.9% |
| Other Operating Income |
2.9 |
5.2 |
-43.8% |
6.0 |
-51.4% |
| Net Banking Income |
605.8 |
582.1 |
4.1% |
545.7 |
11.0% |
| Total Expenses |
(205.2) |
(209.2) |
-1.9% |
(194.7) |
5.4% |
| Gross Operating Profit |
400.6 |
372.8 |
7.4% |
351.1 |
14.1% |
| Other Income (Expenses) |
12.3 |
(27.2) |
-145.3% |
11.0 |
12.5% |
| Income Before Impairment &Tax |
412.9 |
345.6 |
19.5% |
362.0 |
14.1% |
| Impairment |
(5.8) |
(28.2) |
-79.6% |
(25.5) |
-77.3% |
| Net Income Before Tax |
407.2 |
317.4 |
28.3% |
336.5 |
21.0% |
| Tax |
(93.8) |
(31.7) |
196.0% |
(102.8) |
-8.8% |
| Net Income |
313.4 |
285.7 |
9.7% |
233.8 |
34.1% |
| Cost / Income Ratio |
33.9% |
35.9% |
35.7% |
The growth of the NBI (net banking income) reached a satisfactory level of 11.0% over the 1st quarter of 2015. This increase is triggered by the growth of the net interest income by 21.0% driven by both higher margins and volumes, especially in retail, FCY (foreign currency) corporate loans and low cost deposits. On the other front, the net commissions and fees have decreased by 3.2%, impacted by the foreign currency scarcity.
Expenses growth was kept at a moderate level of 5.4% over the 1st quarter of 2015, despite the higher capital expenditure (new investments in the IT infrastructure) and increased wages.
The operating profit before provisions and taxation has reached EGP 412.9 million with a growth rate of 14.1% over the 1st quarter of 2015. The cost of risks recorded a low level due to higher selectivity on granting loans and good recovery results. The tax rate decreased from 30% to 25% contributing positively to tax expenses for the 1st quarter of 2016. Consequently, the net income after tax grew by 34.1% to reach EGP 313.4 million.
