03:56 PM
Sunday 25 October 2020
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Books – Mustafa Eid:
Last Friday, the Commercial International Bank officially announced the appointment of Sherif Sami as the bank’s non-executive chairman to succeed Hisham Ezz Al-Arab.
The departure of Ezz Al-Arab came after exciting events that began on Thursday morning when the Egyptian Stock Exchange announced the suspension of trading on the stock at the request of the Financial Supervisory Authority, but without mentioning the reasons.
The bank officially announced that Ezz Al-Arab would leave his post after a letter from the central bank included a decision by its board of directors to dismiss Azab al-Arab for “grave breaches.”
The stock exchange management re-dealt with the shares of Commercial International Bank, starting from the beginning of the trading session today, Sunday, to drop the share by about 10% in the first minutes of the session, to plunge the main index of the stock exchange by more than 5% before returning both the stock and the index to reduce the loss at a later time.
The most important information about the Commercial International Bank:
The Commercial International Bank is the largest private sector bank in Egypt, with a market value of more than 90 billion pounds, and it represents more than a third of the relative weight in the main index of the Egyptian Stock Exchange.
The Commercial International Bank was established in 1975 with joint ownership by the National Bank of Egypt (51%) and Chase Manhattan Bank (49%) under the name “Chase National Bank of Egypt”, and in 1987.
After Chase Bank’s decision to sell its share of the shares, the National Bank increased its stake to 99.9%, the bank’s name was changed to “Commercial International Bank-Egypt,” and the National Bank’s share continued to decline through several public offers to reach 18.7%.
In 2006, a consortium led by Ripplewood Holdings acquired the National Bank’s stake, and in July 2009, Actis bought a 9.1% stake in Commercial International Bank, making it the largest single shareholder in the bank’s capital.
In March 2014, Actis sold a portion of its 2.6% stake in the bank, and the sale took place through the Egyptian Stock Exchange for a multi-group of portfolio managers and international investment funds.
In May of the same year, Actis sold its remaining 6.5% stake in the bank’s capital to Fairfax Financial Services Holding Company.
According to the latest disclosure of the ownership structure of Commercial International Bank, at the end of the third quarter of 2020, the total free-to-trade shares amounted to about 1.115 billion shares, or 75.43% of the total shares.
Three shareholders own about 19.79% of the shares, namely the National Bank of Egypt by 7.96%, the Fairfax Financial Holding Company (through 13 subsidiaries) 6.55%, and the “Invesco Oppenheimer Developing Markets” Fund by 5.31%.
The bank owns about 23.5% of the shares of Fawry Plus for electronic payment services, about 30% of the shares of the international security and services company “Falcon”, about 7.6% of the shares of CI Capital, and about 2.9% of the shares of the Citadel Holding Company for Financial Advisors.
According to the bank’s annual report for the year 2019, the number of Commercial International Bank customers reached more than 1.4 million, and the number of branches reached 207 branches, with about 6,900 employees, and the bank recorded revenues last year about 23 billion pounds, and net profits of about 11.8 billion pounds. .
According to the bank’s financial statements, the net profit of Commercial International Bank has tripled during the last 5 years, reaching about 3.7 billion pounds in 2014.
However, the bank’s net profits declined during the first half of this year to about 5 billion pounds compared to about 5.4 billion pounds during the same period in 2019, a decline of 6.7% affected by the increase in provisions by about 1.1 billion pounds during the first half, and the increase in the income tax expense, Corona Effects wallpaper.
The value of customer deposits in the bank reached 320.1 billion pounds at the end of last June, compared to 304.4 billion pounds at the end of 2019, an increase of 15.7 billion pounds during the first half of 2020, by 5.2%.
The value of loans and facilities to customers scored about 120 billion pounds at the end of last June, compared to 119.3 billion pounds at the end of 2019, an increase of only 709.1 million pounds during the first half of 2020, a rate of 0.6%.
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