Mubasher TV
Contact Us Advertising   العربية

Pharos maintains FV of CIB at EGP86.8/shr

Pharos maintains FV of CIB at EGP86.8/shr
Pharos Research also maintained their 'Equalweight' Rating - (Photo Credit: Arabianeye-Reuters)
CIB
COMI
-3.05% 80.00 -2.52

Cairo - Mubasher: Pharos Research maintained their fair value (FV) of Commercial International Bank (CIB) at EGP 86.83, with an Equalweight rating, according to a recent report.

The research firm expects the bank to sustain high profit margins in the fourth quarter of 2016, hovering around 5.6% and 5.8%.

“Full year bottom line will record EGP5.8 billion which is 23% higher than 2015 profits,” the report stated.

Pharos projects higher lending growth at 24% per year between 2016 and 2021, and higher deposit accumulation pace at 22%, along with slower pace of margin compression and faster pickup in non-interest income.

“We estimate margins will level off from above 5.5% in 2016 to 4.5% in 2021, which demonstrates resilience despite lower interest rates,” the report indicated.

It attributed this estimate to the accumulation of low cost deposits, and the higher retail lending contribution to overall lending.

Non-interest income should pick up from 23% to 37% of operating income, mostly driven by fees and commissions than by investment income growth, while Pharos estimates that nonperforming loans NPLs will edge higher in 2016 and 2017.