Banque du Caire (BDQC) posted its Q1 2019 stand-alone figures, where net earnings expanded almost 3x y/y to EGP1.22bn from EGP407mn in Q1 2018. The stupendous earnings growth was derived from: (1) a 58% y/y leap in net interest income to EGP2bn on higher interest income and also on contained growth of funding cost, (2) a 46% y/y rise in non-interest income to EGP348mn, and (3) better tax management, given that effective tax rate declined to 19% from 56% as income from Treasuries contributed less to total income. IFRS9 was applied during Q1 2019, forcing the bank to book credit loss provisions of EGP25mn versus Q1 2018’s provisions reversal of EGP13mn. Below, we highlight stand-alone results:
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