CIB Achieves Strong 27% Growth in Loan Portfolio
Hisham Ezz Al-Arab, CEO of Commercial International Bank (CIB) – Egypt, announced that the bank achieved a 27% growth in its loan portfolio, marking a significant increase after neutralizing exchange rate effects.
In an interview with "Al Arabiya" channel, Ezz Al-Arab explained that the loan portfolio is not static but requires continuous balance. He clarified that these figures are calculated in Egyptian pounds, while the foreign currency portion is cautiously managed due to liquidity considerations.
Ezz Al-Arab pointed out that the bank's investments rely primarily on customer deposits, as banks compete in this sector. He added that while investment in government securities was higher in previous years, this year has seen a shift in favor of loans. He also emphasized that CIB's asset and liability management is focused on maintaining financial balance in decision-making.
Reduction in Interest Rates on Certificates
Regarding the 3% reduction in interest rates on savings certificates, Ezz Al-Arab stated that the decision was made in response to market interest rate trends rather than as a proactive measure. He noted that CIB reduced the interest rate on its three-year “Premium” certificates to 17% from 20%, with monthly interest payments and a minimum purchase requirement of EGP 1 million.
Inflation and Monetary Policy Outlook
Ezz Al-Arab predicted that inflation would decrease to 15% during April and May, which could prompt the Central Bank of Egypt to begin cutting interest rates to support the economy and stimulate lending. He also projected that inflation might decline further to 13% by the end of the year.
Strong Financial Performance in 2024
CIB delivered an outstanding financial performance in 2024, with total assets surpassing EGP 1 trillion and net profits reaching EGP 55 billion. This achievement makes CIB the first private-sector bank in Egypt to exceed $1 billion in net profit.
