Q2 2015 Financial Results
CREDIT AGRICOLE EGYPT
PRESS RELEASE
The Bank has reported a net income after taxation for 1st half 2015 of EGP483.0 million compares with EGP310.2 million in 1st half 2014, and has therefore increased by 55.7%. from a core business performance.
Strong Loans growth continued:
Loans growth continued in the second quarter, as total gross loans reached 14.4 billion with 10.4% growth over end of 2014 and 8.4% over same period last year driven by all business lines. While deposit grew by 2.0% over December 2014 and 5.8% over same period last year, low cost deposits is the major contributor for deposits growth 15.5% over December 2014 and 39.5% over June 2014, loans to deposits ratio reached 53.% by end of June 2015 comparing with 49.0% as December 2014.
The Bank’s activities on the whole, performed very well. We had opened two new branches in the second quarter (Shoubra and Madinaty) accordingly our branches network reached 78 branches by end of June 2015. Number of customers increased by 2.6%(net) over first quarter 2015 and by 8.3% over same period last year.
After strong Q1 2015 results, Q2 2015 results at highest level ever :
|
EGP Million |
Q22015 |
Q22014 |
Change |
H12015 |
H12014 |
Change |
| Net Interest Income |
390.4 |
290.6 |
34.3% |
756.0 |
571.6 |
32.2% |
| Net Fees & Commission Income |
124.9 |
121.2 |
3.0% |
243.7 |
223.4 |
9.1% |
| Net Trading Income |
35.8 |
29.8 |
20.4% |
91.1 |
62.6 |
45.5% |
| Other Operating Income |
12.9 |
2.5 |
420.1% |
18.9 |
12.3 |
54.0% |
| Net Banking Income |
564.0 |
444.1 |
27.0% |
1,109.7 |
869.9 |
27.6% |
| Total Expenses |
(189.9) |
(171.9) |
10.5% |
(384.5) |
(346.5) |
11.0% |
| Gross Operating Profit |
374.1 |
272.2 |
37.4% |
725.2 |
523.4 |
38.6% |
| Other Income |
7.6 |
10.5 |
-28.3% |
18.5 |
9.4 |
96.9% |
| Income Before Impairment &Tax |
381.7 |
282.7 |
35.0% |
743.7 |
532.8 |
39.6% |
| Impairment |
(25.6) |
(44.7) |
-42.7% |
(51.1) |
(86.4) |
-40.9% |
| Net Income Before Tax |
356.1 |
238.1 |
49.6% |
692.6 |
446.4 |
55.2% |
| Tax |
(106.8) |
(82.0) |
30.3% |
(209.6) |
(136.1) |
54.0% |
| Net Income |
249.2 |
156.1 |
59.7% |
483.0 |
310.2 |
55.7% |
| Cost / Income Ratio |
33.7% |
38.7% |
34.7% |
39.8% |
Net interest income increased by 32.2% year over year driven by loans growth and better margins on deposits. Net commissions and fees increased by 9.1% over last year as result of growth in trade finance activities along with increase in net fee income due to increase in customers activities and growth in retail loans. While other income (comprising FX, Option Premium, Trading and Investment Income) revenues were up by 45.5% year over year and (20.4% over Q2 2014) benefiting from some market opportunities. On the other front total expenses increased by 11.0% over last year representing increase in staff costs and depreciation. Consequently cost to income ratio remarkably improved to reach 34.7% comparing with 39.8% as of end of June 2014.
Our operating profit before provisions and taxation reached EGP 743.7 million comparing with EGP 532.8 Million in H1 2014 with growth rate 39.6%.
Cost of risk reached 51.1 million 40.9% below same period last year as June 2014 was impacted by one sizeable Corporate NPL. Retail share in COR increased in 2015 driven by increase in loan booking, coverage ratio is 193% as of June 2015 comparing with 162.5% in June 2014.
Despite increase of tax rate from 25% to 30%, income after tax grew by 55.7% to reach EGP 483.0 million. Our Return on Equity is 39.2% in H12015 and our Capital Adequacy Ratio reached 14.99% evidencing satisfactory solvency and significant capacity to grow activities.
These results are consistent with the bank general ambitions of achieving in the future the same level of profitability , regularly improving Cost income ratio and growing revenue while supporting the development of the Egyptian economy and of our customers.