Commercial Intl Bank(Egypt)S.A.E reports 27.1% Net Income growth
01 Feb 2017 • About Commercial Intl Bank(Egypt)S.A.E (
$CBKD) • By InTwits
Commercial Intl Bank(Egypt)S.A.E reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Commercial Intl Bank(Egypt)S.A.E is a fast growth stock: 2016 revenue growth was 27.0%, 5 year revenue CAGR was 26.7% at 2016 ROIC 28.5%
- Commercial Intl Bank(Egypt)S.A.E has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's in pair with industry average of 13.1%.
- CAPEX is quite volatile: 561 in 2016, 304 in 2015, 243 in 2014, 529 in 2013, 212 in 2012
- The company has highly profitable business model: ROIC is at 28.5%
- It operates with high leverage: Net Debt/EBITDA is 2.2x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Commercial Intl Bank(Egypt)S.A.E ($CBKD) key annual financial indicators
| mln. EGP | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 9,474 | 11,718 | 13,934 | 17,667 | 22,434 | 27.0% |
| Net Income | 2,226 | 3,006 | 3,741 | 4,729 | 6,009 | 27.1% |
Balance Sheet
|
|---|
| Cash | 5,394 | 4,805 | 7,502 | 9,849 | 10,522 | 6.8% |
| Short Term Debt | 1,715 | 1,373 | 1,131 | 1,601 | 3,009 | 88.0% |
| Long Term Debt | 80 | 132 | 243 | 131 | 160 | 22.0% |
Cash flow
|
|---|
| Capex | 212 | 529 | 243 | 304 | 561 | 84.2% |
Ratios
|
|---|
| Revenue growth | 37.6% | 23.7% | 18.9% | 26.8% | 27.0% | |
| Net Income Margin | 23.5% | 25.7% | 26.9% | 26.8% | 26.8% | 0.0% |
| CAPEX, % of revenue | 2.2% | 4.5% | 1.7% | 1.7% | 2.5% | 0.8% |
| ROIC | 21.7% | 26.9% | 30.1% | 30.3% | 28.5% | -1.8% |
| ROE | 22.9% | 26.5% | 28.0% | 30.2% | 31.7% | 1.5% |
Revenue and profitability
The company's Revenue surged on 27.0% in 2016.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Commercial Intl Bank(Egypt)S.A.E had CAPEX/Revenue of 2.5%. Commercial Intl Bank(Egypt)S.A.E showed decline in CAPEX/Revenue of 2.0 pp from 4.5% in 2013 to 2.5% in 2016. It's average level of CAPEX/Revenue for the last three years was 2.0%.
Return on investment
The company operates at high and attractive ROIC (28.49%) and ROE (31.70%). ROIC decreased slightly on 1.8 pp from 30.3% to 28.5% in 2016. ROE increased slightly on 1.5 pp from 30.2% to 31.7% in 2016.
Leverage (Debt)
Debt jumped on 83.0% in 2016 while cash increased on 6.8% in 2016.
Appendix 1: Peers in Banks
Below you can find Commercial Intl Bank(Egypt)S.A.E benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kazkommertsbank JSC ($KKB) | | 6.0% | 16.3% | 41.4% | |
| Sberbank Of Russia ($SBER) | 37.2% | 25.1% | 23.4% | 27.4% | |
| Yapi Ve Kredi Bankasi As ($YKBD) | 14.9% | 4.8% | 19.7% | 25.3% | |
| Mcb Bank Ltd ($MCBS) | 3.0% | -1.7% | 19.4% | 22.4% | |
| Halyk Savings Bank Of Kazakhstn JSC ($HSBK) | 3.7% | 9.4% | 16.3% | 19.5% | |
| |
|---|
| Median (43 companies) | 11.7% | 4.2% | 11.5% | 4.2% | 4.4% |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | | 23.7% | 18.9% | 26.8% | 27.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Banque Marocaine Du Comm Exterieur ($69IR) | 3.7% | 9.7% | 4.3% | 26.8% | |
| Lloyds Banking Group ($LLPC) | 8.0% | 8.9% | 13.1% | 13.6% | 14.5% |
| Banco Santander Sa ($BNC) | 2.7% | 2.6% | 8.9% | 10.2% | 9.1% |
| Guaranty Trust Bank ($GRTB) | 6.7% | 6.1% | 6.8% | 7.7% | |
| Diamond Bank ($DBPA) | 8.2% | 7.9% | 6.0% | 6.7% | |
| |
|---|
| Median (41 companies) | 2.4% | 2.7% | 2.2% | 2.5% | 2.7% |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 2.2% | 4.5% | 1.7% | 1.7% | 2.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Guaranty Trust Bank ($GRTB) | 19.8% | 18.9% | 17.8% | 16.0% | |
| Mcb Bank Ltd ($MCBS) | 15.0% | 14.4% | 15.8% | 14.9% | |
| United Bank Ltd ($UBLS) | 11.7% | 11.8% | 13.8% | 12.6% | |
| Zenith Bank ($ZENB) | 19.0% | 17.6% | 15.0% | 11.2% | |
| Halyk Savings Bank Of Kazakhstn JSC ($HSBK) | 8.8% | 9.0% | 12.9% | 10.8% | |
| |
|---|
| Median (43 companies) | 6.0% | 5.3% | 4.4% | 3.4% | 4.5% |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 21.7% | 26.9% | 30.1% | 30.3% | 28.5% |
