Cairo - Mubasher: MubasherTrade Research has maintained its price target (PT) for Commercial International Bank (CIB) at EGP 58.3, with a "Sell/Moderate" risk rating, according to a recent report.

CIB has sold 74.75% of its investment banking arm CI Capital to a group of non-related Egyptian and Gulf investors in an EGP 710 million deal.

This implies a total value of EGP 950 million for CI Capital, and comes in line with the bank's strategy to gradually exit from its subsidiaries and affiliates, the report added.

As for the impact of this deal on our expectation for CIB's 2017 earnings, MubasherTrade expects net profit, excluding CI Capital's divested stake, to increase 2% to EGP 8.97 billion, including the one-off capital gain of EGP 302 million.

"We see the deal to have a slightly positive effect on the bank's profitability in 2017. Thus, we view the deal as neutral for CIB," the report concluded