Commercial International Bank’s “CIB” (COMI) earnings surged in Q2 2019 to EGP2.7bn (+13% y/y, +3% q/q) on a 10% y/y rise in net interest income of EGP5.1bn stemming from contained funding costs. Meanwhile, earnings growth was flattened sequentially by only 3% growth in net interest income, side-by-side with less loan-loss provisions than those booked in Q1 2019 and Q2 2018. Non-interest income was weaker at EGP699mn (-17% y/y, -16% q/q), pressuring pretax income down 3% sequentially. Effective tax rate retreated in Q2 2019 to 25.5% (-420bps q/q), strongly supporting bottom line. Deposits expanded by only 4% q/q, while lending was sluggish as gross loans decreased 2% q/q, albeit still 3% higher ytd. This has led to a slide in utilization rates, with GLDR hitting c.40% (-239bps q/q). Highlights from a conference call held by the management to discuss the released Q2 2019 results are below.
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