CAIRO, (Reuters) – Commercial International Bank, Egypt’s largest lender by market value, posted a record profit in the second quarter, beating analysts’ expectations, as income from interest surged.
The bank made a consolidated net profit of 520.9 million Egyptian pounds ($98 million), up 31 percent from the same quarter the previous year. On a standalone basis without including its investment banking subsidiary, the bank made 516 million pounds, up 35 percent.
The figure far surpassed the expectations of two analysts, who had forecast 339.21 million pounds and 383.80 million pounds respectively in a Reuters survey.
“CIB enjoyed another successful quarter in Q2 and delivered strong financial and operational performance despite some of the most challenging market conditions,” the bank said in a statement. “This was achieved through significant growth across all business lines.”
Net interest income surged 45 percent to 407.0 million pounds in the second quarter, the bank said. Profits from selling investments soared more than six-fold to 140.9 million pounds.
“Although the bottom line was helped by high investment income, growth in net interest income and fee and commission income was very strong, following the same trend we have seen in the past few quarters,” said Elena Sanchez, banking analyst at investment bank EFG-Hermes.
Egyptian banks are posting strong earnings as the country’s economy grows at its fastest pace in at least two decades. AlWatany Bank, the country’s third largest lender by market value, posted a record first half income last week on growth in income from loans.
Credit Agricole Egypt CIEB.CA has estimated that the number of Egyptians eligible for bank accounts could grow by 25 percent a year.
Dubai Capital Group, part of government-owned Dubai Holding, said earlier this month it had bought a 5.24 percent stake in CIB.
CIB, which said in May talks to merge with Arab African International Bank had ended, posted a 67 percent surge in first-quarter profit.
It said in July it had received a 1.3 billion pound loan from a U.S. government agency to expand low- and middle-income mortgage lending in Egypt, the most populous Arab country.
Shares of the bank, which have fallen 22 percent this year, were up 0.17 percent at 0754 GMT.