Commercial International Bank Posts 18% Rise in Net Income to EGP 39.3 Billion in H1 2026

Strong Q2 Growth Amid Macroeconomic Stabilization

CIB’s Q2 2026 results showed significant acceleration following a challenging Q1 affected by geopolitical tensions and global uncertainties. Net income for Q2 was EGP 21.5 billion, up 29% year-on-year and 21% sequentially. Revenues increased 23% year-on-year to EGP 34.4 billion, fueled by top-line growth and improved operational leverage. Return on average equity in Q2 reached 37.8%, with return on average assets at 5.28%, underscoring strong capital efficiency.

This positive momentum was supported by stabilizing macroeconomic conditions in Egypt, including lower inflation and currency appreciation. The Egyptian pound strengthened by EGP 5.37 against the US dollar during the period, benefiting the bank’s operations. The efficiency ratio improved to 15.1% in Q2 from 16.5% in Q1, reflecting disciplined cost management alongside growth investments. The net interest margin of 8.36% in Q2 demonstrated the bank’s pricing power despite a 500 basis point cut in local policy rates over the year.

Record Deposit Growth Fueled by Customer-Focused Strategy

A standout feature of H1 2026 was exceptional deposit growth, especially in local currency deposits. Local currency deposits increased by EGP 141 billion in Q2, the highest quarterly net sales ever recorded by the bank. Of this, EGP 106 billion (75%) was in current and savings accounts, highlighting strong customer preference for liquid deposit products. This occurred despite intense competition and the bank’s strategic choice not to offer the highest market deposit rates, underscoring CIB’s brand strength and customer trust.

The deposit base composition also improved, with customer deposits representing 90% of total liabilities, providing a stable funding base. Current and savings accounts accounted for 63% of total deposits by mid-2026, up from 62% in Q1 and 59% a year earlier. This shift helped sustain net interest margin resilience amid steep policy rate cuts, with only a 35 basis point year-on-year decline. Total deposits reached EGP 1.30 trillion, an 18% year-on-year increase, or 16% real growth adjusted for currency appreciation. The bank’s deposit market share was 7.17% as of March 2026.

Diversified Loan Portfolio Growth Across Segments

CIB expanded its loan portfolio across institutional, business, and retail segments in H1 2026. Gross loans rose 18% year-on-year to EGP 680 billion, with 17% real growth after adjusting for currency effects. Local currency loans grew 18% (EGP 79.3 billion), while foreign currency loans increased 14% (USD 416 million). The loan-to-deposit ratio was a healthy 52.2% in local currency and 52.5% overall at period end. The loan market share was 5.56% as of March 2026.

Institutional banking loans totaled EGP 559 billion, with 18% real year-to-date growth excluding currency effects. Capital expenditure lending accounted for EGP 63 billion of this increase, concentrated in transportation, natural gas, and real estate sectors. Corporate loan market share was 4.98%, with private corporate lending at 10.5% as of February 2026. Business banking loans reached EGP 20 billion, growing 21% year-to-date in real terms. SME funding represented 30.4% of the business banking portfolio, exceeding the Central Bank of Egypt’s 25% minimum. Retail loans totaled EGP 101 billion, growing 12% year-to-date, driven mainly by personal loans and credit cards.

Maintained Asset Quality Amid Portfolio Expansion

Asset quality remained strong during portfolio growth in H1 2026. Non-performing loans (NPLs) stood at 1.49% of gross loans on a standalone basis at period end, improving from 2.63% a year earlier, reflecting enhanced credit quality and underwriting standards. The NPL coverage ratio was 358%, indicating robust provisioning. Total gross loan coverage was 5.34%, with unsecured loan coverage at 7.65%, demonstrating conservative reserve levels.

Loan loss provisions totaled EGP 36.4 billion, supporting the bank’s asset base. Strong capital and reserves enabled continued growth with prudent risk management. The capital adequacy ratio was 28.4%, and common equity tier I ratio was 24.4%, well above regulatory minimums, providing capacity for balance sheet expansion and shareholder returns. Liquidity coverage ratios were 449% in local currency and 550% in foreign currency, significantly exceeding Basel III requirements.

Digital Banking and Customer Growth Drive Sustainable Expansion

Digital banking and customer acquisition were key growth drivers in H1 2026. The bank served 2.2 million digital banking users by period end, a 15% year-on-year increase. Digital transaction volumes rose 15%, while transaction values surged 55% to approximately EGP 3.6 trillion. New-to-bank customers totaled 227,000, up 35% year-on-year, with 83% registering digitally, a 21% increase.

Product innovation and digital-first services enhanced customer value. In Q2, CIB launched "CIB Business," Egypt’s first mobile app exclusively for business banking clients. Digital acquisition of certificates of deposit reached 90.2% via online channels, showing strong adoption. New-to-bank customers increased 26% from 100,000 in Q1 to 127,000 in Q2 despite competitive pressures and without offering top deposit rates. The bank introduced floating-rate certificates of deposit to meet customer demand for high-yield savings while protecting margins.

Retail Banking Growth Supported by Branch Expansion and Card Issuance

CIB bolstered retail banking through branch network growth and enhanced credit card offerings in H1 2026. The bank operated 208 branches and 11 units across Egypt, supported by 1,494 ATMs, reinforcing nationwide accessibility. Retail deposits reached EGP 741 billion, growing 13% year-to-date in real terms, driven by current and savings accounts and strong private and wealth segment contributions. Household deposit market share was 7.12% as of February 2026.

Credit card issuance grew 25% year-on-year, with 104,000 cards issued in H1. The "Explore Credit Card" strengthened CIB’s premium travel offering, while the "Talabat Co-branded Card" is under development with additional partnerships planned. Mastercard collaborations expanded payment and digital capabilities. Household loan market share was 6.56% as of February 2026, with gross retail loans of EGP 101 billion growing 12% year-to-date in real terms.

Institutional Banking Leadership and Contingent Liabilities

CIB reinforced its status as Egypt’s top corporate banking provider in H1 2026. Gross institutional loans totaled EGP 559 billion, the largest portfolio segment. Institutional deposits reached EGP 430 billion, growing 23% year-to-date in real terms, outpacing loan growth and reflecting strong client confidence. Corporate deposit market share was 6.67% as of February 2026.

Contingent business volumes highlighted active client use of trade finance and risk management. Institutional contingent liabilities totaled EGP 340 billion; business banking contingent liabilities were EGP 7.17 billion, covering letters of credit, guarantees, and trade finance products. A memorandum of understanding with OtroVato, an Orascom Investment Holding subsidiary, named CIB preferred banking partner for integrated trade finance and cross-border solutions across Africa, expanding institutional banking reach beyond Egypt.

Non-Interest Income and Fee Revenue Growth

Non-interest income expanded significantly in H1 2026, diversifying revenue streams beyond net interest income. Non-interest income reached EGP 4.76 billion, up 35% year-on-year. Net fee and commission income totaled EGP 5.8 billion, a 40% increase year-on-year. Q2 fee and commission income was EGP 3.6 billion, a 62% sequential increase, reflecting heightened client activity.

Trade service fees contributed EGP 1.86 billion in H1, up 8% year-on-year, supported by an outstanding balance of EGP 331 billion net of collateral. This growth demonstrated strong engagement with CIB’s trade finance and international banking services. Digital banking also boosted fee income through increased transactions and customer interaction. Combined with 18% net interest income growth, the 35% non-interest income rise supports diversified, sustainable revenue growth and profitability.

Robust Capital and Regulatory Compliance

CIB maintained capital levels well above regulatory requirements in H1 2026, supporting growth and shareholder returns. The capital adequacy ratio was 28.4%, with total tier capital of EGP 257 billion, representing 28.4% of risk-weighted assets. Common equity tier I capital was EGP 220 billion, 86% of total tier capital and 24.4% of risk-weighted assets. These figures exceed Central Bank of Egypt and Basel III minimums, reflecting strong capital generation and prudent management.

Liquidity ratios surpassed regulatory thresholds, with liquidity coverage ratios at 46.4% local currency and 56.3% foreign currency, versus Central Bank requirements of 20% and 25%. The net stable funding ratio was 191% local currency and 174% foreign currency, well above Basel III’s 100% minimum. This strong capital and liquidity profile reflects disciplined balance sheet management and profitability, enabling credit growth while maintaining buffers and capacity for shareholder returns.

Earnings Per Share and Shareholder Returns

CIB’s earnings per share rose to EGP 10.2 in H1 2026, an 18% year-on-year increase. Return on average equity was 33.5%, and return on average assets was 5.02%, indicating strong profitability and capital efficiency. Q2 return on average equity reached 37.8%, reflecting accelerating per-share profitability amid macroeconomic stabilization and deposit growth.

Profitability supports potential future shareholder distributions via dividends or share buybacks, subject to management and regulatory approval. Management emphasized commitment to balance sheet strength, operational efficiency, and maximizing shareholder value. The 18% net income and 20% revenue growth demonstrate the bank’s ability to grow profits faster than the broader economy.

Industry Awards and Community Engagement

CIB earned numerous accolades in H1 2026, recognizing operational excellence and market leadership. Global Finance honored CIB as Egypt’s best private bank, best bank, best SME bank, top financial innovator in Africa, best trade finance provider, best sustainable finance bank, best cash management bank, best collections bank in Africa, and best sub-custodian bank. The Egyptian Exchange named CIB best bank in sustainable finance in Africa 2025. Euromoney awarded Egypt’s best bank, best digital bank, and best ESG bank.

Forbes Middle East ranked CIB first among Egypt’s 50 most valuable companies and 53rd among the Middle East’s top 100 in 2026. These awards reflect consistent performance and market position. The CIB Foundation continued significant community investments, funding 100 open-heart surgeries and 200 catheterizations at Magdi Yacoub Heart Foundation Hospital; supporting three medical departments at Ain Shams University Hospital; funding operations at 57357 Children Cancer Hospital; initiating 4,000 medical convoys across 22 governorates with Raie Masr Foundation; funding 150 heart and 150 gastric surgeries at Al Nas Hospital; and supporting 1,800 eye surgeries for children at Maghrabi Hospital.