Credit Agricole Egypt : PRESS RELEASE – Q1 2016 RESULTS

Credit Agricole Egypt reports an increase of 34.1% of its net income after tax for 1 quarter 2016 of EGP313.4 million compared with EGP233.8 million in 1 quarter of 2015.

Commercial development driven by all activities :-

The bank's overall activities have performed well. The number of customers has increased by 8% over the 1 quarter of 2015. The growth of the overall balance sheet was achieved through the development of clients' deposits by +3% over December 2015, out of which low cost deposits that increased by 8% over the same period. Client loans increased by 2.6% over December 2015 driven fully by retail loan activities. Corporates and enterprises' weaker demand during the 1 quarter was noticed due to the general slowdown of the market.

During the 1 quarter of 2016, Credit Agricole Egypt has increased its branch network to reach 79 branches.

Loans
EGP Million	March 2016		December 2015		Change %
Corporate	9,867.6		9,807.2		0.6%
Retail	4,917.7		4,706.9		4.5%
Banks	274.0		167.5		63.6%
Total	15,059.3		14,681.6		2.6%
Deposits
EGP Million		Q12016		Q42015		Change %
High Cost		16,601.6		16,682.2		-0.5%
Low Cost		10,795.0		9,981.0		8.2%
Total		27,396.6		26,663.2		2.8%

A Sustainable growth in profitability in Q12016 :

EGP Million	Q12016	Q42015	Change %	Q12015	Change %
Net Interest Income	442.4	424.6	4.2%	365.6	21.0%
Net Fees & Commission Income	115.1	117.4	-2.0%	118.9	-3.2%
Net Trading Income	45.4	34.8	30.4%	55.3	-17.9%
Other Operating Income	2.9	5.2	-43.8%	6.0	-51.4%
Net Banking Income	605.8	582.1	4.1%	545.7	11.0%
Total Expenses	(205.2)	(209.2)	-1.9%	(194.7)	5.4%
Gross Operating Profit	400.6	372.8	7.4%	351.1	14.1%
Other Income (Expenses)	12.3	(27.2)	-145.3%	11.0	12.5%
Income Before Impairment &Tax	412.9	345.6	19.5%	362.0	14.1%
Impairment	(5.8)	(28.2)	-79.6%	(25.5)	-77.3%
Net Income Before Tax	407.2	317.4	28.3%	336.5	21.0%
Tax	(93.8)	(31.7)	196.0%	(102.8)	-8.8%
Net Income	313.4	285.7	9.7%	233.8	34.1%
Cost / Income Ratio	33.9%	35.9%		35.7%

The growth of the NBI (net banking income) reached a satisfactory level of 11.0% over the 1 quarter of 2015. This increase is triggered by the growth of the net interest income by 21.0% driven by both higher margins and volumes, especially in retail, FCY (foreign currency) corporate loans and low cost deposits. On the other front, the net commissions and fees have decreased by 3.2%, impacted by the foreign currency scarcity.

Expenses growth was kept at a moderate level of 5.4% over the 1 quarter of 2015, despite the higher capital expenditure (new investments in the IT infrastructure) and increased wages.

The operating profit before provisions and taxation has reached EGP 412.9 million with a growth rate of 14.1% over the 1 quarter of 2015. The cost of risks recorded a low level due to higher selectivity on granting loans and good recovery results. The tax rate decreased from 30% to 25% contributing positively to tax expenses for the 1 quarter of 2016. Consequently, the net income after tax grew by 34.1% to reach EGP 313.4 million.