TRANSFORMING
CHALLENGES INTO
TRIUMPHS
ANNUAL REPORT
2023
TRANSFORMING
CHALLENGES INTO
TRIUMPHS
Table of Contents
01• CIB Introduction
02• Strategic Direction
03• Our Businesses
04• Support Functions
05• Our Controls
06• ESG
At a Glance ........................................................................ 06
Financial Highlights ..................................................... 08
Our History ....................................................................... 10
Leadership ......................................................................... 14
What We Do ...................................................................... 34
CIB’s Stock ......................................................................... 38
Awards ................................................................................. 40
Our Strategy ...................................................................... 46
Value Creation Model .................................................. 50
Chairman’s Note ............................................................. 54
CEO’s Note ......................................................................... 58
BOD Report ....................................................................... 62
Institutional Banking .................................................. 82
Retail Banking ................................................................. 88
Digital Banking ............................................................... 96
Financial Inclusion ........................................................ 106
Operations and IT .......................................................... 110
Human Resources .......................................................... 114
Marketing and Corporate Communications .. 120
Transformation Office ................................................. 126
CFO Area ............................................................................ 130
Risk Group ......................................................................... 134
Internal Audit .................................................................. 136
Compliance Group ........................................................ 138
Sustainable Finance ..................................................... 144
Corporate Governance ................................................ 153
Social Development ...................................................... 160
FRA Disclosures ............................................................. 168
ANNUAL REPORT
2023
07• Subsidiaries and Associates
Subsidiaries ....................................................................... 184
Associates .......................................................................... 186
08• Financial Statements
Financial Statements ................................................... 188
2023 • CIB Annual Report • 3
CIB serves an expansive network of retail customers, high-net-worth individuals (HNWIs), enterprises, and institutions that drive the Egyptian economy. 01•
CIB
Introduction
4 • CIB Annual Report • 2023
2023 • CIB Annual Report • 5
CIB’s strategy focuses on strengthening its core business to serve current and potential customers in the corporate, SME, and retail segments. CIB Introduction
At a Glance
CIB, Egypt’s leading private-sector bank, is an
award-winning institution dedicated to creating
outstanding stakeholder value and providing supe-
rior customer service solutions to a broad range of
clients. The Bank furnishes clients with innovative
solutions to both satisfy their banking needs and
facilitate their financial pursuits.
Both CIB’s dynamic business model and commit-
ment to fully integrating world-class technology
into its services and products allow it to maintain
its leadership status in the market, and provide staff
with an engaging work environment, while gener-
ating mounting value. The Bank serves an expansive
network of retail customers, high-net-worth indi-
viduals (HNWIs), enterprises, and institutions that
are essential drivers of the Egyptian economy.
In fostering a well-established network of 208
branches and banking units, as well as a workforce
comprising 7,917 employees, CIB provides tailored,
client-centric services to clients in the corporate,
commercial, retail, wealth, and small and medium
enterprise (SME) spheres. The Bank works to deliver
the most streamlined, efficient banking service
offering in the Egyptian market. CIB also operates
two representative offices, one in Dubai and the
other in Addis Ababa, boosting business further
through these key market channels while capital-
izing on the synergies inherent in CIB’s business
model as a means of driving value for clients.
The Bank has three strategic subsidiaries: CIB
Kenya Limited, Damietta Shipping Marine Services
(DSMS), and Commercial International for Finance
Company (CIFC), in which CIB’s shares are 100%,
49.95%, and 99.83%, respectively. In addition to CIB’s
strategic subsidiaries, the Bank has direct owner-
ship in two affiliates: Al Ahly Computer Equipment
Company (ACE) and T.C.A Properties, in which it
owns 39.34% and 377%, respectively. For several
years, CIB has also been proud to be titled the Most
Profitable Bank operating in Egypt and the Bank of
Choice for over 800 of Egypt’s largest corporations.
It has been awarded numerous accolades from
prestigious bodies throughout the year, including
Best Private Bank by Global Finance, as well as Best
M&A Deal and Best Securitization House in Africa
by EMEA Finance.
+2
Million Clients
7,917
Employees
1,339
ATMs
EGP/ BN
170.5
Average Market Cap
208
Branches
EGP/ BN
56
Revenues
6 • CIB Annual Report • 2023
2023 • CIB Annual Report • 7
CIB Introduction
Financial Highlights
FY23
Consolidated
FY22
Consolidated
FY21
Consolidated
FY20
Consolidated
FY19
Consolidated
FY23
FY22
FY21
FY20
FY19
FY18
FY17
FY16
FY15
FY14
FY23
Consolidated
FY22
Consolidated
FY21
Consolidated
FY20
Consolidated
FY19
Consolidated
FY23
FY22
FY21
FY20
FY19
FY18
FY17
FY16
FY15
FY14
Common Share Information Per Share
Earning Per Share (EPS)1
Book Value
(BV/No of Shares)
Share Price (EGP) 2
High
Low
Closing
Shares Outstanding
(millions)
Market Capitalization
(EGP millions)
Value Measures
Price to Earnings Multiple
(P/E)
Dividend Yield (based on
closing share price)
Dividend Payout Ratio
Market Value to Book
Value Ratio
Financial Results (EGP millions)
8.59
29.9
84.1
41.7
72.7
4.83
22.7
48.0
22.5
41.5
6.10
35.0
64.0
41.0
52.0
6.26
40.2
59.5
59.0
59.2
7.33
35.3
83.5
82.7
83.0
7.26
29.3
96.5
67.0
74.1
5.76
24.4
88.8
71.1
77.4
4.56
18.4
73.6
30.8
76.4
3.58
3.55
14.4
16.3
47.4
51.3
28.9
32.6
38.1
49.2
3,020
2,983
1,970
1,478
1,469
1,167
1,162
1,154
1,147
908
219,367 123,715 102,453
87,464 121,963
86,439
89,865
88,155
43,692 44,673
8.46
8.59
8.52
9.46
11.3
10.2
13.4
16.8
10.6
13.9
0.76% 1.30% 2.62% 0.00% 1.51% 1.35% 1.29% 0.65% 1.97% 2.44%
5.8% 10.0% 20.0%
0.0% 15.6% 15.3% 15.4% 9.70% 18.5% 29.9%
2.43
1.83
1.49
1.47
2.35
2.53
3.17
4.14
2.65
3.02
Net Operating Income
55,999
32,898
26,696
25,881
23,019
54,578
32,752
26,755
25,839
23,018
20,351
15,192
11,370
10,165
7,717
Provision for Credit Losses
– Specific
Provision for Credit Losses
– General
4,270
1,585
1,680
5,019
1,435
4,287
1,512
1,677
4,989
1,435
3,076
1,742
893
1,682
589
Total Provisions
4,270
1,585
1,680
5,019
1,435
4,287
1,512
1,677
4,989
1,435
3,076
1,742
893
1,682
589
Non-interest Expense
10,076
7,372
6,183
5,626
5,049
9,766
7,177
6,096
5,553
5,045
4,223
3,119
2,433
2,028
1,705
Net Profit
29,635
16,114
13,272
10,238
11,801
28,768
16,130
13,420
10,300
11,804
9,556
7,550
5,951
4,641
3,648
Financial Measures
Cost : Income
Return on Average
Common Equity (ROAE)3
Net Interest Margin (NII/
Average Interest Earning
Assets)4
Return on Average Assets
(ROAA)3
Regular Workforce
Headcount
17.1% 21.2% 22.8% 20.7% 21.6% 17.0% 20.7% 22.4% 20.5% 21.6% 20.3% 20.4% 21.3% 19.7% 22.9%
39.7% 25.1% 21.7% 19.2% 29.5% 38.6% 25.1% 21.9% 19.3% 29.6% 33.1% 32.7% 34.0% 32.8% 30.3%
7.55% 6.10% 5.67% 6.75% 6.48% 6.43% 4.97% 5.47% 5.74% 5.41%
4.06% 2.86% 2.88% 2.53% 3.26% 3.95% 2.87% 2.93% 2.55% 3.26% 3.02% 2.72% 2.70% 2.90% 2.87%
7,917
7,700
7,308
7,071
6,900
6,759
6,551
6,422
5,983
5,403
Balance Sheet and Off-Balance Sheet Information (EGP millions)
Cash Resources and
Securities
(Non-governmental)5
Net Loans and
Acceptances
Assets
Deposits
Common Shareholders
Equity
Average Assets
Average Interest
Earning Assets
Average Common
Shareholders Equity
Balance Sheet Quality Measures
Equity to Risk-Weighted
Assets 3
Risk-Weighted Assets
(EGP billions)
Tier 1 Capital Ratio 3
336,908 209,044 136,211 131,858
63,270 336,711 209,387 136,502 131,708
63,226
69,030
63,673
73,035
34,097 19,430
235,808 196,578 145,887 120,347 119,946 234,647 195,599 145,078 119,632 119,946 106,377
88,428
86,152
57,211 49,398
834,866 635,832 498,236 427,842 386,742 832,527 633,643 496,651 426,145 386,697 342,423 294,771 263,852 179,193 143,647
677,237 531,617 407,242 341,169 304,448 675,310 530,125 406,101 340,087 304,484 285,340 250,767 231,965 155,370 122,245
90,481
67,758
68,848
59,476
51,880
90,300
67,721
68,928
59,405
51,800
34,147
28,384
21,276
16,512 14,816
735,349 567,034 463,039 407,292 364,602 733,085 565,147 461,398 406,421 364,560 318,597 279,312 221,523 161,420 128,700
655,193 505,581 411,014 363,922 328,296 652,498 503,323 409,075 362,981 328,296 290,869 258,315 203,625 145,835 117,133
79,120
68,303
64,162
55,678
43,054
79,010
68,324
64,166
55,602
42,973
31,265
24,830
18,894
15,664 13,465
22.3% 19.3% 27.5% 29.0% 24.3% 22.3% 19.3% 27.5% 28.9% 24.3% 16.9% 15.6% 13.3% 15.7% 15.8%
382
331
234
201
199
382
331
234
201
199
186
169
150
96
84
22.0% 19.2% 26.9% 28.1% 23.6% 22.0% 19.2% 26.9% 28.1% 23.6% 16.2% 14.9% 12.9% 15.0% 15.7%
Capital Adequacy Ratio 3
26.2% 22.7% 29.9% 31.4% 26.1% 26.2% 22.7% 29.9% 31.4% 26.1% 19.1% 18.0% 14.0% 16.1% 16.8%
1 Based on Net Profit Available for Distribution (After deducting Staff Profit Share and Board Bonus) and unadjusted to Stock Dividends and ESOP.
2 Unadjusted to Stock Dividends.
3 After Profit Appropriation.
4 Based on Managerial Accounts.
5 Including CBE Deposit Auctions.
8 • CIB Annual Report • 2023
2023 • CIB Annual Report • 9
CIB Introduction • Our History
Our History
Commercial International Bank (CIB) was founded in
1975 as Chase National Bank, a joint venture between
Chase Manhattan Bank and the National Bank of Egypt
(NBE), with ownership of 49% and 51%, respectively.
In 1987, Chase divested its ownership stake as part of
a shift in its international strategy. NBE acquired that
stake, renaming the former joint venture Commercial
International Bank (CIB). Over time, NBE’s ownership
stake in CIB declined, falling to 19% in 2006. That year,
a consortium led by Ripplewood Holdings acquired
NBE’s remaining stake. In July 2009, Actis, a Pan-African
private equity firm specializing in emerging markets,
acquired 50% of the Ripplewood Consortium’s stake. In
December 2009, Actis became the single largest share-
holder in CIB with a 9.09% stake after Ripplewood sold
its remaining share of 4.7% on the open market. The
emergence of Actis as the predominant shareholder
marked a successful transition in the Bank’s strategic
partnership. In March 2014, Actis undertook a partial
realization of its investment in CIB by selling 2.6% of
its stake on the open market, maintaining its seat on
the Board. In May 2014, the private equity firm sold its
remaining 6.5% stake to several wholly owned subsid-
iaries of Fairfax Financial Holdings, making the latter
the sole strategic shareholder in CIB. Fairfax is repre-
sented on CIB’s Board of Directors by a non-executive
member. In April 2022, as part of a major deal to acquire
stakes in several Egyptian companies, ADQ (one of Abu
Dhabi’s sovereign funds) acquired 18.4% in CIB worth
USD 911.457 million.
1975
• Establishes as Chase National Bank,
the first joint venture bank in Egypt
• Becomes the first Egyptian bank to
introduce an Institutional Banking
Risk Rating Model
1993
• Concludes Egypt’s largest
initial public offering (IPO) for a
domestic bank, which was 1.5x
oversubscribed, selling 1.5 million
shares in a span of 10 days and
generating EGP 390 million in
proceeds
1977
• Becomes first private sector bank to
create a dedicated division providing
24/7 banking services to shipping
clients, with a primary focus on
business in the Suez Canal
1987
• Chase Manhattan divests its stake
in the Bank, and the Bank changes
its name to Commercial International
Bank (CIB)
1989
• Selected by BSP to become its
agent in Egypt
1991
• First Egyptian commercial bank to
arrange debt swap transactions
• First bank to launch a smart card
center in Egypt
1994
• First bank in Egypt to connect with
the international SWIFT network
1996
• First Egyptian bank to have a Global
Depository Receipt (GDR) program
on the London Stock Exchange
(LSE)
1998
2001
• First private sector bank with
investment rating (after Luxor
incident), rated BBB by S&P
• First bank to link its database to the
Misr for Central Clearing, Depository,
and Registry (MCDR) Company
• First Egyptian bank to form a Board
of Directors’ Audit Committee
• First Egyptian bank to register its
shares on the NYSE in the form of
ADR Level 1 program
• First bank to introduce FX cash
services for five currencies through
ATM
2005
• First bank in Egypt to launch a
page on Bloomberg for local debt
securities
• First to adopt a pricing policy
according to client risk rating to
abide by Basel II requirements
2006
• First Egyptian bank to execute an
EGP 200 million repo transaction in
the local market
• First and largest Egyptian bank
to provide securitization trustee
services
• First Egyptian bank to establish
a Global Transaction Service
department
• The only bank in Egypt able to retain
one of the top two positions in the
primary and secondary markets for
Treasury Bills and Treasury Bonds
2010
• First and only Egyptian bank
to enforce business continuity
standards
• CIB Foundation becomes the first
in Egypt to have its annual budget
institutionalized as part of its
founding institution’s bylaws, as CIB
shareholders unanimously agree to
dedicate 1% of annual net profit to
the Foundation
2007
• Only bank in Egypt chosen by
UNIFEM and World Bank to
participate in the Gender Equity
Model (GEM)
2011
• CIB-TCM becomes pioneer in
trading in almost 114 new and
unconventional currencies
2008
• First bank to use Value at Risk
(VaR) for trading and banking
book for internal risk management
requirements, despite there being
no regulatory requirements
2009
• First regional bank to introduce
unique concierge and Mastercard
emergency services
• Only Egyptian bank recognized
as “Best Bank in Egypt” by four
publications — Euromoney, Global
Finance, EMEA Finance, and the
Banker — in the same year
2012
• First Egyptian bank to officially
establish a Sustainable
Development Department
• First Egyptian bank to upgrade
its ADRs to trade on the OTCQX
platform
• First Egyptian bank to sign an
agreement with Bolero International,
joining the Bolero multi-bank service
for guarantees
2013
• First Egyptian bank to establish an
ERM framework and roadmap
• Became first Egyptian bank to use
RAROC
• First Egyptian bank to introduce
an interactive multimedia platform
that offers customers the option of
interacting with call center agents
over video calls
10 • CIB Annual Report • 2023
2023 • CIB Annual Report • 11
CIB Introduction • Our History
• First Egyptian bank to sign an
agreement with the Misr for Central
Clearing, Depository, and Registry
(MCDR) company to issue debit
cards for investors to collect cash
dividends
• Launched first co-branded credit
card, Mileseverywhere, with national
carrier EgyptAir
•
Introduced the first interactive social
media platform in the Egyptian
banking industry
• The first block trading transaction on
the EGX took place when Actis sold
its 6.5% stake in CIB to Fairfax
2018
• First Egyptian bank to successfully
pass external quality assurance on
its Internal Audit Department
• Generated highest FX income in 10
years among private-sector banks in
Egypt
• First Egyptian bank to recognize
conduct risk and establish a
framework
• Launches a mobile banking
application
• Becomes the first Egyptian bank
recognized as an active member of
the United Nations Environmental
Program — Financial Initiative
• Receives the Socially Responsible
Bank of the Year 2016 award from
African Banker
2019
2014
2015
2016
2017
• Becomes the only Egyptian
bank ranked on the FTSE4Good
Sustainability Index
• First Middle Eastern company to be
analyzed in a case study conducted
by the Leadership Institute of the
London Business School
• Established CVentures, Egypt’s
first corporate venture capital firm
primarily focused on investing in
transformational fintech start-ups
• Received ISO22301:2012
certification for Business Continuity
Management by PECB, a global
provider of training, examination,
audit, and certification standards, in
partnership with EGYBYTE, a leader
in the MENA market for IT service
management
• Ranks first on the EGX’s
sustainability index (S&P/EGX ESG)
for the fifth year in a row since 2014
•
Included on the 2019 Bloomberg
Gender-Equality Index (GEI),
becoming the first Arab and African
company to be included in the index
out of the 230 companies, noting
that Bloomberg GEI is the world’s
only comprehensive investment-
quality data source on gender
equality
• Becomes the only representative
from Egypt’s private sector to join
the Digital Economy Task Force
(DETF)
• Launches CIB’s Chatbot named
Zaki, which uses artificial
intelligence, becoming the first bank
in Egypt to introduce a chatbot that
supports both English and colloquial
Arabic
• Becomes a founding signatory to
the United Nations Environment
Program Financial Initiative (UNEP-
FI) Principles for Responsible
Banking
• Recognized by Forbes among the
top 500 employers globally, coming
in 90th place within the top 100
companies in the world
2020
• Acquires 51% of a Kenyan bank,
now known as Mayfair CIB Bank
Limited in Kenya, through a capital
increase for a total transaction value
of USD 35.35 million
•
Included in the 2020 Bloomberg
Gender Equality Index (GEI),
becoming the only company in
Egypt and one of just a handful
from Africa to be included in
the index, which features 325
companies representing 42
countries across 50 industries with
a demonstrable commitment to the
global advancement of women in
the workplace
• Ranks 28th on Forbes Middle East’s
Top 100 Listed Companies in the
Arab World, ranking highest of the
four Egyptian companies on the list
2021
•
Issues a green bond worth USD
100 million, making it the first bank
to issue green bonds in the private
sector
• Ranks 24th on Forbes Middle East’s
Top 100 Listed Companies in the
Arab World
• Becomes a founding member of the
Net-Zero Banking Alliance (NZBA)
2022
• Named Best Bank for SME Banking
in Egypt and the Middle East in
Euromoney’s Awards for Excellence
2022
• Tops Forbes’ Top 50 Listed
Companies in Egypt
• Alpha Oryx Ltd., a subsidiary of
ADQ, acquired 18.595% of CIB
2023
Acquires the remaining 49% of its Kenyan
subsidiary, thus making it a fully owned
subsidiary of CIB under its new name
CIB Kenya Limited
12 • CIB Annual Report • 2023
2023 • CIB Annual Report • 13
Leadership
Leadership
Board of Directors
London Stock Exchanges, the stock is the global
investment community’s preferred proxy for Egypt
and a benchmark for the banking industry in
emerging markets.
Mr. Ezz Al-Arab’s leadership was committed to culti-
vating and perpetuating a culture of entrepreneurial
spirit and meritocracy, as well as to global best prac-
tices with respect to corporate governance and risk
management. Equally committed to the Bank’s global
responsibility, in 2013, Mr. Ezz Al-Arab introduced
sustainability and gender equality initiatives. CIB
was the first bank in Egypt to issue a sustainability
report and join the signatories of the United Nations
Environment Program Financial Initiative (UNEP FI):
Principles for Responsible Banking. The Bank was
also included in the Low-Carbon Select Index in the
Middle East and North Africa (MENA). In 2019, CIB
was named in the Bloomberg Gender Equality Index,
the only company in Egypt and Africa to be listed. Mr.
Ezz Al-Arab also led the digital transformation of the
Bank’s processes and practices, including the estab-
lishment of a Data Analytics unit, the first such effort
at an Egyptian bank. This unit subsequently advised
the Egyptian government regarding data collection
and analysis.
Recognizing the potential opportunities in Africa,
particularly East Africa as a trade hub, Mr. Ezz Al-Arab
led the transaction to open CIB Mayfair Bank in Kenya
to provide trade finance and credit facilities for the
Bank’s Egyptian mid-sized corporate customers
looking to expand into Africa. He was also instru-
mental in a fintech initiative for youth in East Africa.
Mr. Ezz Al-Arab has been recognized by several global
publications for his leadership and the Bank’s perfor-
mance. He was named Best CEO in Egypt and Africa by
EMEA Finance in 2014. In 2016, Euromoney recognized
his “Outstanding Contribution to Financial Services
in the Middle East.” CIB was awarded Euromoney’s
Best Bank in Global Emerging Markets award, the first
bank in Egypt and the MENA region to receive this
award. The Bank was also awarded Best Bank in the
Middle East in the same year. In 2018, CIB received the
Best Bank for Social Responsibility in the Middle East
award, and it was named Best Emerging Markets Bank
by Global Finance in both 2018 and 2020.
Mr. Ezz Al-Arab is the Chairman of the CIB Foundation,
which he founded in 2010. The CIB Foundation has
built strategic partnerships with healthcare providers
from the government, private, and non-government
sectors focused on the health and wellbeing of under-
privileged children throughout Egypt. As a result of its
efforts, the Foundation has impacted the lives of more
than 3.2 million children and is a leading Egyptian
voice for universal access to quality healthcare
extended to underprivileged children.
Mr. Ezz Al-Arab is a Member of the Institute of
International Finance (IIF) in Washington and the
Emerging Markets Advisory Council (EMAC), as well
as a board member at Ripplewood Advisors MENA.
He is also former Chairperson of the Federation
of Egyptian Banks, a former board member of the
American University in Cairo (where a scholarship
in his name was established for dedicated under-
graduate students), Smart Africa, and Fairfax Africa.
Prior to joining CIB in 1999, Mr. Ezz Al-Arab served as
a banker at Merrill Lynch, J.P. Morgan and Deutsche
Bank in London and the Middle East.
Mr. Hisham Ezz Al-Arab
Non-Executive Chairman
fintechs.
Mr. Hisham Ezz Al-Arab is the Chairman of the
Commercial International Bank (CIB) – Egypt. Prior
to his appointment at CIB, Mr. Ezz Al-Arab served
as an advisor to the Governor of the Central Bank of
Egypt (CBE) for three months. In 2020, Mr. Ezz Al-Arab
founded and chaired HE Advisory. With over 40 years
of experience as an international banker across
Europe, the Middle East, and Africa, he advises corpo-
rations on Growth Strategies, Resources Mobilization,
and Financial Risk Management. He also provides
fundraising advice and strategic counsel to start-up
Mr. Ezz Al-Arab is the former Chairman and
Managing Director of Commercial International
Bank - Egypt (CIB), where he served in that role
from 2002 to 2020. During his tenure, he trans-
formed the institution from a wholesale lender
with a market capitalization of EGP 1 billion into
Egypt’s largest private-sector bank with a market
capitalization of EGP 100 billion. As the blue-
chip component of the Egyptian Exchange (EGX)
with ADRs and GDRs listed on the New York and
14 • CIB Annual Report • 2023
2023 • CIB Annual Report • 15
Leadership • Board of Directors
Mr. Hussein Abaza
Chief Executive Officer and Managing Director
Mr. Hussein Abaza leads strategy and operations at
CIB, an institution with more than 7,900 employees
serving more than 2 million customers, including
Egypt’s 800 largest corporations, online and at 208
branches and units, 1,339 ATMs, and 24,229 points
of sale nationwide.
Mr. Abaza has been Chief Executive Officer and
Managing Director since 24 June 2021, and Chief
Executive Officer and a Member of the Board of
Directors from March 2017 until 24 June 2021. He
also Chairs the Executive Committees (Management
and High Lending and Investment Committees). He
assumed this position after a six-year run as CEO of
Institutional Banking. Prior to this, Mr. Abaza was
the Bank’s Chief Operating Officer and, from 2001 to
2010, its Chief Risk Officer, responsible for managing
credit, market, and operational risk across CIB.
Mr. Abaza is also a leader of the Bank’s award-winning
Investor Relations program, in which capacity he has
helped CIB grow from a market capitalization of EGP
10.8 billion in 2008 to EGP 218 billion as of December
2023. Under Mr. Abaza’s leadership, the team managed
Ripplewood’s 2009 exit from CIB, the entry into the
shareholding structure of global emerging markets
private equity firm Actis, and the subsequent sale of
Actis’s 6.5% stake to Canadian insurance firm Fairfax
Financial Holding Ltd. in the Egyptian Exchange’s first
block trading transaction. The Bank’s IR program has
taken home wins from the Extel / MEIRA poll for five
consecutive years, from 2014 to 2018.
In his more than 25 years with CIB, Mr. Abaza has
become actively involved in the Bank’s regionally
renowned credit training program, providing talented
young bankers with the theoretical basis and hands-on
experience needed to assess the creditworthiness of
organizations across all sectors of the economy.
He brings to CIB a sharp interest in financial markets
and non-bank financial services, having served as
Head of Research and then Managing Director at EFG
Hermes Asset Management from 1995 until his return
to CIB in 2001. He called on that experience from
2014 to 2017 as Chairman of Cl Capital, a leading
Egyptian investment bank and subsidiary of CIB until
the Bank exited its investments.
Mr. Paresh Sukthankar
Independent Director
Mr. Paresh Sukthankar has been a banker for over
three decades. He was part of the core team that
founded HDFC Bank Ltd. in 1995 and helped build
it into one of India’s leading, most respected finan-
cial institutions. At HDFC Bank, Mr. Sukthankar
contributed to various key areas, including credit,
risk management, finance, human resources,
investor relations, corporate communications,
and corporate social responsibility. He also led
the teams managing HDFC Bank’s two acquisitions
and its equity capital issuances in the domestic
and international markets. Mr. Sukthankar was
inducted on the bank’s Board as Executive Director
in 2007 and was elevated to the post of Deputy
Managing Director in 2014. Mr. Sukthankar
resigned from HDFC Bank in 2018.
Mr. Sukthankar has been a member of various
committees formed by the Reserve Bank of India
and Indian Banks’ Association. Prior to joining
HDFC Bank, Mr. Sukthankar worked in Citibank
from 1985 to 1994 in various departments,
including corporate banking, risk management,
and financial control. Mr. Sukthankar is currently
Lead Partner in Sanaksh Advisors LLP, a firm he
founded to provide advisory services to private
equity, venture capital, and other entities. He is
a member of the Board of Management of the
Jamnalal Bajaj Institute of Management Studies,
University of Mumbai, the Advisory Board of
two NGOs (Project Mumbai and KSWA’s Yuva
Parivartan), and the Academic Council of the
College of Supervisors of the Reserve Bank of India.
Mr. Sukthankar received a BCom from Sydenham
College and an MBA from Jamnalal Bajaj Institute of
Management Studies, University of Mumbai. He has
also completed the Advanced Management Program
(AMP) from Harvard Business School.
16 • CIB Annual Report • 2023
2023 • CIB Annual Report • 17
Leadership • Board of Directors
Mr. Rajeev Kakar
Independent Director
Mr. Rajeev Kakar is a seasoned banker, business
founder, entrepreneur, and Corporate Board Member
with over three decades of global banking experi-
ence and expertise in financial services, especially in
Emerging Local Corporate, Commercial, MSME, and
Retail Banking across multiple countries globally,
with a focus on high-growth emerging markets in the
Asia Pacific/China, Europe, Indian Sub-Continent,
MENA/GCC, and Central/Eastern Europe regions.
of Fullerton Financial Holdings, Singapore, where
he served for 13 years on the Global Management
Board as its Executive Vice President and Global
Head of Consumer Banking. Mr. Kakar was also the
CEO – CEEMEA region of Fullerton Financial from
2006 to 2017. During this time, he was the founder
of Dunia Finance LLC, Fullerton’s UAE subsidiary,
which he operated as its Founder Managing Director
and CEO until 2018.
Mr. Kakar has a strong track record of successfully
operating large banks and financial institutions,
as well as leading business turnarounds, with a
demonstrated ability to conceptualize and execute
multi-country business strategies, lead acquisi-
tions and business/digital transformations, launch
green-field financial services businesses, and deliver
profitability over a sustained period, while contrib-
uting to the community and actively serving on
several prominent boards across different countries.
Mr. Kakar also serves on the boards of several
Bank and Financial Institution, namely Eurobank
Ergasias SA (Greece), Gulf International Bank (GIB
Bahrain), Gulf International Bank (GIB Saudi Arabia),
Commercial International Bank (Egypt), UTI Asset
Management Company (India), and Commercial
International Bank (CIB) Kenya. He ihas also been
a member of the Global Advisory Board of the
University of Chicago’s Booth School of Business
since 2009.
He started his career at Citibank NA, where he
worked for two decades, culminating in his role as
the Regional CEO – Turkey/Middle East/Africa region
until 2006. He then served as the Global Co-Founder
Mr. Sherif Samy
Independent Director
Mr. Sherif Samy is an experienced senior executive
and advisor in the areas of financial markets and
services, in addition to investment and corporate
governance. He is currently non-executive chairman
of a real estate asset management company and
serves on the boards of directors of the state’s
project finance arm (the National Investment Bank),
the Universal Health Insurance Authority, and to
several listed and privately held companies in the
education, venture capital, fund management, and
private equity sectors. Additionally, he is the Chair
of the Audit Committee of the Social Insurance Fund
and of the International Advisory Board of the UAE
Securities and Commodities Authority. Also member
of Board of Trustees of the French University in Egypt.
Mr. Samy served as the Non-Executive Chairman of
Commercial International Bank from October 2020
to March 2023. Mr. Samy has also served a four-year
term (ending 2017) as Chairman of Egypt’s indepen-
dent non-banking financial regulatory authority
(FRA) where he achieved a major legislative and regu-
latory leap in capital markets, insurance, mortgage,
leasing, private pensions, factoring and microfinance.
He served on the board of the Central Bank of Egypt
(2013–2017), its Monetary Policy Committee, and
Chaired its Audit Committee. He was also Chairman
of the Financial Services Institute, the Egyptian
Institute of Directors, and a member of the board of
the country’s National Payment Council and its Anti
Money Laundering Unit.
In 2014, Mr. Samy was the first Egyptian to be elected
to the board of the International Organization of
Securities Commissions (IOSCO); he was reelected for
a second term in 2016. He was also elected President
of the Union of Arab Securities Authorities in 2016
/ 2017. Prior to that, he was the Managing Director
of Banque Misr’s investment arm, Misr Capital, and
a board member of Banque Du Caire. Starting 2007,
he was appointed for several consecutive terms to
the board of the investment promotion agency GAFI.
Mr. Samy started his professional career with global
consulting firm Accenture, where he worked at its
Chicago, Riyadh, and Beirut offices. He graduated from
Alexandria University’s Faculty of Commerce with high
distinction and attended numerous executive programs
at leading business schools in the US and Europe in the
areas of strategy, management, and investment.
18 • CIB Annual Report • 2023
2023 • CIB Annual Report • 19
Leadership • Board of Directors
Mr. Jay-Michael Baslow
Independent Director
Mr. Jay-Michael Baslow brings to the Board a variety
of banking experience acquired during the past four
decades. Mr. Baslow spent the last 16 years of his
career in Risk Management at J.P. Morgan covering
a range of sectors. Prior to his 2019 retirement, he
was the Head of EMEA Risk Management for the
bank’s Wealth Management organization and the
Chief Risk Officer of J.P. Morgan International Bank
Ltd, its London-based private bank. Prior to that,
Mr. Baslow worked in Credit Risk Management,
covering a variety of corporate and financial sectors
and EMEA regions, including over three years based
in Dubai as the Head of MENA Credit Risk, before
returning to London as the Head of EMEA Emerging
Markets Credit Risk.
During the late 1990s, Mr. Baslow was an investment
banking client executive at Chase Securities, covering
global telecommunications operators and equipment
manufacturers from the bank’s New York headquar-
ters. Mr. Baslow started his career with Chemical
Bank in the 1980s, first as a technologist and then as
a real estate investment banking analyst.
In addition to his banking experience, Mr. Baslow
was a strategy consultant in the Media and Telecoms
industry at Booz Allen and Hamilton. He co-founded
Frictionless Commerce Incorporated, a strategic
sourcing software start-up in Cambridge, MA, where
he was Chief Financial Officer and a member of the
Board and was the Associate Dean for Resource
Development at Harvard Medical School, overseeing
the major gifts and planned giving operations.
Mr. Baslow received a BA in Mathematics from the
University of Pennsylvania and an MBA in Finance
from The Wharton School.
Mr. Fadhel Al Ali
Non-Executive Director
Mr. Fadhel Al Ali serves as the Chairperson of
Dubai Financial Services Authority (DFSA). He is a
strategic leader with a vast range of experience in
corporate governance and commercial roles across
a variety of business contexts, such as start-ups,
rapid growth, fix-it, and turnarounds. He brings 30
years of experience in multiple industries including
real estate, hospitality, investment, and banking. He
also led several corporate functional organizations
such as finance, HR, Legal, Business Excellence, and
Marketing and Communication.
Throughout his career, Mr. Al Ali has made remark-
able achievements that extend from contributing
to the creation of Dubai Holding and managing its
2009 post-recession crisis, to contributing to the
creation of its new business model as a strategic
investor. Moreover, he recorded the highest ever
profit for Dubai Holding since its inception. He also
succeeded in issuing multi-currency multiple tenor
bonds worth USD 2.25 billion for Dubai Holding
Commercial Operations Group.
Mr. Al Ali started his career as a banker in 1989 at
Citibank and joined Dubai Holding in 2004, where
he served in multiple roles including CFO, COO and,
finally, CEO until 2017. This was followed by a four-
year stint as FAB’s Deputy CEO and group COO until
2021, before chairing DFSA.
Mr. Al Ali joined CIB’s Board of Directors in May 2022
as a Non-Executive Board member, representing the
interest of Alpha Oryx Ltd. — a subsidiary of ADQ.
Mr. Al Ali holds a bachelor’s degree of Industrial
and System Engineering from the University of
Southern California.
20 • CIB Annual Report • 2023
2023 • CIB Annual Report • 21
Leadership • Board of Directors
Mr. Aziz Moolji
Non-Executive Director
Ms. Hoda Mansour
Independent Director
Mr. Aziz Moolji serves as ADQ’s M&A and Alternative
Investments Director. He brings to the Board more
than 20 years of experience in Private Equity and
Investment Banking across North America and
emerging markets. He invested over USD 2 billion
in transactions across Financial Services, Consumer
Products, Industrials, Infrastructure, Education,
Hospitality and Logistics.
Mr. Moolji joined CIB’s Board of Directors on May
2022 as a Non-Executive Board Member representing
the interest of Alpha Oryx Ltd. – a subsidiary of ADQ.
He holds a BS in Electrical Engineering and Management
from Massachusetts Institute of Technology, Cambridge.
Later, he received his master’s degree in finance from
the Wharton School of the University of Pennsylvania.
Mr. Moolji started his career at Goldman Sachs & Co.
in 1996 and joined Lehman Brothers in 2005. In 2006,
he joined Merrill Lynch & Co. Inc. as Vice President,
Financial Sponsors Group, for two years. In 2009,
Mr. Moolji joined The Abraaj Group, Dubai, where
he served as Managing Director, Private Equity for
10 years, led transaction execution, post-acquisition
management, and exits for transactions across the
Middle East, Africa, Turkey, Asia, and Latin America.
Mr. Moolji also served as Vice President, Investments
and Portfolio Management at Dubai Holding for two
years until 2021 before joining ADQ.
Ms. Hoda Mansour is an experienced, creative, and self-
motivated leader, with more than 25 years of experience
in leading multinational software companies including
SAP, Oracle, and Microsoft in regional and global capaci-
ties that included Europe, Asia, and Africa.
She holds strong technical and business qualifica-
tions with a solid track record, having successfully led
diverse teams of professionals in highly competitive,
complex, and fast-paced environments.
Ms. Hoda was recognized by Forbes Middle East as
one of the Top 50 Power Businesswomen in 2021
and 2022, following her previous selection as one
of Forbes Top 100 Power Businesswomen in 2020
and Forbes Top 100 most Influential Women in
2018. She was also recognized as one of the Top
50 women in Egypt in 2019 and awarded the Best
Distinguished Women Award in the field of Digital
Transformation by the Arab Council for Social
Responsibility in 2021.
In September 2023, Ms. Hoda was appointed as the
Chief Operating Officer for Asia Pacific, Japan, Middle
East & Africa (APJ, ME&A) at IFS, the global cloud
enterprise software company. In January 2024, Ms.
Hoda was appointed as a Non-Executive of Board
Member of Centamin PLC.
Ms. Hoda is one of the Middle East’s leading technology
innovators and pioneers. Upon her appointment as
Managing Director of SAP Egypt, she made strong
progress on Egypt’s investment plan, expanding
the breadth and depth of the SAP Channel Partner
Program, and is continuing to enhance the partner-
ships with the academic sector to support young talent
development and job creation. She joined SAP in Dubai
in 2013, where she held various positions, the last
being Managing Director for SAP Egypt and Frontier
Countries (Lebanon, Jordan, Yemen, Sudan, Libya,
and Palestine), before being promoted in September
2021 to Head of Business Process Intelligence (BPI) for
Southern Europe, Middle East, and Africa.
Ms. Hoda was elected as a board member by American
Chamber of Commerce in June 2021 and as Vice President
and board member of the German-Arab Chamber of
Industry and Commerce since September 2020.
Ms. Hoda holds a BSc with Distinction and Honors in
Engineering from Alexandria University, in addition
to a master’s in business administration (MBA) with
Distinction from Maastricht School of Management.
22 • CIB Annual Report • 2023
2023 • CIB Annual Report • 23
Leadership • Board of Directors
Ms. Nevine Sabbour
Independent Director
Ms. Nevine Sabbour is a seasoned banker with exten-
sive experience in M&A, business strategy, banking
transformation, financial planning, and management
information systems.
She currently serves on the boards of several financial
and industrial institutions, including Meris (Moody’s
Egypt) and the Holding Company for Metallurgical
Industries. Ms. Sabbour is a member of the board of
trustees of the “We Owe it to Egypt” foundation, as well
as “Banking for Women in Egypt,” an institution aimed
at women empowerment and financial inclusion.
Upon her appointment as Head of Business Strategies
and Finance Group – Arab African Int’l Bank (AAIB)
from 2012 to 2022, she led the Financial Control,
Performance Analysis and Budgeting, Strategic
Planning/Project Management, Integration/Change
Management, Market Research, and Management
Information Systems divisions and played a vital
role in guiding the bank’s performance in terms of
growth and profitability.
Ms. Sabbour holds a BA in Economics from the
American University in Cairo.
Ms. Nevine holds the position of Director –
New Projects and Investments Appraisal at INI
Investments Company. She previously held the posi-
tion of Managing Partner at Panther Associates, a
boutique investment house, institutional advisory,
and a leading asset management institution. She also
served as Chairperson of AAIB Holding Company
and was a Board Member at Arab African Investment
Management Company, in addition to representing
AAIB at the International Capital Markets Association.
AMRO Bank as well as member of the Group Finance
and Group COO Board.
Mr. Mirza also serves as Non-Executive Independent
Director of Eurobank Ergasis in Greece where he chairs
the Board Audit committee and Vice Chair of Board
Nomination and Governance committee as well as
Vice Chair of Board Remuneration Committee. He is
also a Non-Executive Board member of AGT Food &
Ingredients (Canada), as well as IDRF (Canada).
Mr. Mirza holds various business management courses
from reputable institutions like Queens Business school,
Wharton Business school, Stanford Graduate School of
Business and also a member of the Institute of Corporate
Directors, Canada.
Mr. Jawaid Mirza
Non-Executive Director
Mr. Mirza is a strong proponent and practitioner of
international corporate governance and brings with
him over 35 years of diversified experience and a solid
track record in all facets of financial and risk manage-
ment, technology, mergers and acquisitions, business
turnarounds and operation management.
In the past, Mr. Mirza was also the lead Director with
Commercial International Bank of Egypt, as well as
Non-Executive Independent Director with South Africa
Bank of Athens ( Johannesburg). He also served as
Non-Executive Independent director with Atlas Mara - a
sub Saharan African financial services group operating
in seven sub-Saharan African countries. He also served
Commercial Bank of Egypt (CIB) as Managing Director
& CEO of Consumer Banking and Group COO.
Over the years, Mr. Mirza has worked with global institu-
tions like Citibank and ABN AMRO Bank Ltd where he
held several senior positions as CFO European Region,
Managing Director and Chief Operating Officer for
Global Private Banking, Asset Management and New
Growth Markets, Chief Financial Officer for Asian region
including Australia, New Zealand and Middle East. Mr.
Mirza led several due diligences for acquiring banks in
Europe, Asia, and Latin America. Mr. Mirza was also
a member of the Top Executive Group (TEG) of ABN
24 • CIB Annual Report • 2023
2023 • CIB Annual Report • 25
Leadership
Executive Management
Mr. Hussein Abaza
Chief Executive Officer and Managing Director
Mr. Hussein Abaza leads strategy and operations at
CIB, an institution with more than 7,900 employees
serving more than 2 million customers, including
Egypt’s 800 largest corporations, online and at 208
branches and units, 1,339 ATMs, and 24,229 points
of sale nationwide.
Mr. Abaza has been Chief Executive Officer and
Managing Director since 24 June 2021, and Chief
Executive Officer and a Member of the Board of
Directors from March 2017 until 24 June 2021. He
also Chairs the Executive Committees (Management
and High Lending and Investment Committees). He
assumed this position after a six-year run as CEO of
Institutional Banking. Prior to this, Mr. Abaza was
the Bank’s Chief Operating Officer and, from 2001 to
2010, its Chief Risk Officer, responsible for managing
credit, market, and operational risk across CIB.
Mr. Abaza is also a leader of the Bank’s award-winning
Investor Relations program, in which capacity he
has helped CIB grow from a market capitalization
of EGP 10.8 billion in 2008 to EGP 218 billion as of
December 2023. Under Mr. Abaza’s leadership, the
team managed Ripplewood’s 2009 exit from CIB,
the entry into the shareholding structure of global
emerging markets private equity firm Actis, and the
subsequent sale of Actis’s 6.5% stake to Canadian
insurance firm Fairfax Financial Holding Ltd. in the
Egyptian Exchange’s first block trading transaction.
The Bank’s IR program has taken home wins from the
Extel / MEIRA poll for five consecutive years, from
2014 to 2018.
In his more than 25 years with CIB, Mr. Abaza has
become actively involved in the Bank’s regionally
renowned credit training program, providing talented
young bankers with the theoretical basis and hands-on
experience needed to assess the creditworthiness of
organizations across all sectors of the economy.
He brings to CIB a sharp interest in financial markets
and non-bank financial services, having served as
Head of Research and then Managing Director at EFG
Hermes Asset Management from 1995 until his return
to CIB in 2001. He called on that experience from
2014 to 2017 as Chairman of Cl Capital, a leading
Egyptian investment bank and subsidiary of CIB until
the Bank exited its investments.
Mr. Amr El Ganainy
Deputy CEO and Managing Director
Mr. Amr El Ganainy is one of Egypt’s esteemed
financial industry executives, with over 35 years of
experience since his graduation from the Faculty
of Commerce, Cairo University in 1985. He started
his career at Suez Canal Bank, where he excelled
until becoming a Senior Dealer. He then moved to
Export Development Bank in 1994, reaching the post
of Chief Dealer. In 1996, he joined United Bank of
Egypt, as part of the new management team tasked
with revamping the bank, as Treasurer and Head of
Correspondent Banking.
Mr. El Ganainy joined CIB in 2004 as General Manager
Financial Institutions Group, leading the depart-
ment through his strong business relationships in
the market on the local and regional fronts. He is
also JP Morgan Chase, London credit certified since
2005. As a result of his prior excellence in taking any
organization he leads to a higher level, in 2010 CIB’s
Senior Management tasked him with launching the
Global Customer Relations Department.
In October 2023, Mr. El Ganainy was appointed
Deputy CEO and Managing Director. Prior to that,
he was the CEO Institutional Banking at CIB since
2017, achieving short- and medium-term strategic
objectives, while aligning with the Bank’s philosophy,
mission, and vision.
Mr. El Ganainy’s exposure has stretched globally; he
was the first Egyptian and youngest Chairman of the
InterArab Cambist Association (ICA) based in Beirut,
of which he is currently Honorary Chairman. He was
also an Executive Board Member of ACI International
based in Paris, in addition to being the Founder and
Chairman of ACI Egypt, and he is the Honorary
Chairman to date.
He represented CIB in a number of its affiliates,
chairing the Board of Directors of Commercial
International Brokerage Co. (CIBC) and CI Asset
Management Co. He was also a Board Member at CI
Capital Holding Co.
With his renowned reputation and widely acclaimed
experience, Mr. El Ganainy was selected as an inde-
pendent board member in large corporations in
Egypt, including aviation, tourism, financial services,
and telecommunications sectors. He was also elected
to the Board of Directors of Misr for Central Clearing,
Depositary and Registry Co. for five consecutive
rounds from 2005 to 2021.
The experience of Mr. El Ganainy entitled him to be
chosen as a member of the consortium to promote a
culture of dealing with tourists based on the decision
of the Egyptian Prime Minister in September 2022.
26 • CIB Annual Report • 2023
2023 • CIB Annual Report • 27
Leadership • Executive Management
Mr. Talha Karim
Chief Risk Officer
Mr. Rashwan Hammady
Chief Executive Officer, Retail Banking and Financial Inclusion
He holds a Bachelor of Commerce in Accounting from
Sohag University, and an MBA from the University of
Chicago – Booth School of Business. Mr. Rashwan
was awarded the Credit Certificate from CIB, the
Bank’s regionally renowned credit training program,
for assessing the creditworthiness of organizations
across all sectors of the economy.
Rashwan Hammady is CEO of Retail Banking at CIB
and a member of the Bank’s Management Committee.
Since his appointment in August 2022, he oversees
Consumer Banking and Business Banking.
Mr. Hammady has spent his career at CIB, having
joined the Finance Department in 2004. From 2020
to 2022, he was Head of Retail Segments & Products,
where he was responsible for the development and
execution of segments, product propositions, sales,
and channel strategies for both consumer and SME
customers. He was Head of Business Banking for
SMEs and Payment Acceptance from 2013 to 2020
and Head of Strategic Planning from 2010 to 2013.
Mr. Talha Karim was named CIB’s Chief Risk
Officer and member of the Bank’s Management
Committee in 2022. He is responsible for the Risk
organization and provides oversight of the Bank’s
spectrum of risk-taking activities encompassing
financial risks including credit, market, liquidity
as well as other core risks such as operational,
third-party, technology, reputation, strategic,
model, and social & environmental, along with
controls and governance established for each area
as appropriate.
Mr. Karim has over 25 years of experience in
Enterprise Risk Management (ERM) in the
banking sector. He has worked in both developed
and emerging markets, leading and implementing
comprehensive and effective ERM frameworks,
ensuring all risks are effectively managed within
the defined risk appetite, taking into consider-
ation the economic and regulatory challenges.
Additionally, he has successfully managed key
initiatives related to process reengineering, stra-
tegic project management and risk transformation.
Mr. K arim c omm en c ed hi s care er in Ri sk
Management in Canada with the Bank of Montreal
and then joined Toronto Dominion Bank. He later
moved to Bank ABC, Bahrain where he held various
senior roles in Risk Management. In 2009, he joined
CIB and held multiple positions such as the Head
of ALM, Head of Risk Management and Head of
ERM with the mandate to expand and transform
the areas into a comprehensive function as per best
practice which was successfully achieved.
Mr. Karim received a Master of International
Business in Finance from the University of San
Diego, USA and holds a Bachelor of Science in
Finance from Arizona State University, USA. He
also holds the following certifications:
• Cyber Risk Governance Certificate, The DCRO
(Directors & Chief Risk Officers) Institute, USA,
• QRD (Qualified Risk Director®), The DCRO
Institute, USA,
• GAICD (Graduate Australian Institute of
Company Directors), AICD, Australia,
• ISO 31000 Senior Lead Risk Manager, PECB,
Canada,
• The ACI (Association Cambiste Internationale)
Diploma, UK.
In 2021, Mr. Karim co-authored and published in
the Journal of Operational Risk, “Measurement of
operational risk regulatory capital in the banking
sector : developed countries versus emerging
markets,” and has received multiple awards for
achievements in enterprise risk management,
liquidity and operational risk for the Middle East
and Africa region.
28 • CIB Annual Report • 2023
2023 • CIB Annual Report • 29
Leadership • Executive Management
Mr. Khan attained his Bachelor of Business
Administration in Finance and Marketing from
the Institute of Business Administration. He is
also certified in Project Management (PMP), Agile
Scrum Master, Financial Risk Management (FRM),
Investment & Retirement Advice, Wealth Management
Solutions, and Six Sigma. Additionally, his experience
encompasses working in global and regional organiza-
tions, chairing board positions in CI Capital Egypt,
Atlas Mara Zambia, Atlas Mara Zimbabwe and Banc
ABC Zimbabwe Holding Company.
Mr. Omar Khan
Chief Operating Officer
Mr. Omar Khan is an accomplished Senior Executive
with more than 25 years of experience in financial
services, banking, finance, change management,
transformation, talent optimization, and enterprise
development.
Over the course of his distinguished career, Mr. Khan
has consistently showcased a remarkable ability to
transform businesses, drive sustainable growth, and
optimize operational efficiency.
He started his career in 1994 as Management Associate
in Citibank. He worked in a number of areas including
Treasury, Market Risk, Service Quality, Finance, and
Branch Management. He moved to Abn Amro Bank
as Regional Asset Liability Management Head – Asia
in 2005. Mr. Khan had a diverse experience in various
countries across the world as Canada, Netherlands,
UAE, Pakistan, China and Egypt. In 2019, he worked
as Group CFO of Atlas Mara Ltd, covering Africa with
seven subsidiaries and associate companies.
Mr. Khan passionately served CIB in different posi-
tions, being the Chief Operating Officer, a Senior
Advisor to the Chairman, and Transformation
Consultant, until he became the Chief Operating
Officer in December 2023.
Mr. Islam Zekry
Group Chief Financial Officer
Mr. Islam Zekry at his current capacity as a group
CFO is leading the group Finance and strategy with a
proven track record of success in optimizing financial
performance, driving growth, fostering innovation,
and delivering value to stakeholders, he has a deep
understanding of global markets, regulatory environ-
ments, and industry trends locally and globally. His
experience in the field of mergers and acquisitions
enables him to provide strategic financial guidance
and make informed decisions to support the organiza-
tion’s overall strategic objectives.
Mr. Zekry was previously appointed by CIB as the first
Chief Data Officer in Egypt. He led an impressive team
of quants powering capability spanning from data
warehousing design and operationalization, visualiza-
tion, and advanced analytics, to data science, quant
finance, and customer insights on big data platforms
to make CIB future ready.
Under his leadership, London Business School (LBS)
featured CIB’s data transformation as a case study in
2018, making CIB the first Middle Eastern company
to be analyzed in a case study by the Masters for
Advanced Analytics students. Shortly thereafter,
Harvard Business School started using the case study
in its curriculum.
A large group of international and academic
research centers also adopted the models that were
built by the team as reference cases for study.
Mr. Zekry is a Steering Committee member at Smart
Africa, an international alliance that spans across
half the continent with the purpose of accelerating
sustainable socioeconomic development in Africa.
He is also one of the actively contributing members
in the EU-AU Digital Economy Task Force, which is
concerned with the possible ways of cooperation in the
field of digital economy between Europe and Africa.
This is in addition to his membership of the Digital
Transformation Committee of the World Economic
Forum WEF.
In addition to his 25 years of experience, Mr. Zekry
has well-rounded international exposure to various
markets across Europe, Middle East and Africa, as
Mr. Zekry is a member of the Chartered Institute of
Managerial Accountants in UK, member of FITCH
Quantitative Finance Institute in London, as well as
Non-Executive-Director at NLB Banking Group in
Central Europe.
Bringing 25 years of international experience across
Europe, Middle East and Africa, Mr. Zekry is a member
of the Chartered Institute of Managerial Accountants
in UK, member of FITCH Quantitative Finance
Institute in London, as well as Non-Executive-Director
at NLB Banking Group in Central Europe.
Under his leadership, Mr. Zekry’s team has received
multiple prestigious awards and international recogni-
tion from global institutions such Euromoney, Global
Finance, International Institute of Finance (IIF),
Carnegie Mellon University distinguished quants
practice award and Digital Awards 50-Silicon Valley.
Mr. Zekry holds a Doctorate in Financial Mathematics
and MBA from the University of Chicago – Booth
Business School-with outstanding track record in the
area of Advanced Financial Analytics and Corporate
Economic Performance Management.
30 • CIB Annual Report • 2023
2023 • CIB Annual Report • 31
Leadership • Executive Management
Mr. Omar El-Husseiny
Head of Treasury Group
Mr. Omar El-Husseiny is Treasurer CIB and a member
of the Bank’s Management Committee. As Treasurer,
he is responsible for the overall funding and invest-
ment, risk management, and trading activities for
money markets, debt securities, and structured prod-
ucts. With over 20 years of experience in treasury,
capital markets, FX, balance sheet management, and
international trading, he constructs structured prod-
ucts and risk management strategies for CIB’s largest
corporate customers and high-net worth clients. He
has been integral to the Bank’s successful manage-
ment of external complex challenges, including
economic reforms, foreign exchange, and interest
rate volatility.
Mr. El-Husseiny has spent his career at CIB, having
joined after completing his Bachelor of Business
Administration at the Faculty of Commerce at Cairo
University in 2001. He holds an MBA in Banking and
Finance from the Maastricht School of Management
(MsM) and a Graduate School of Banking Diploma
from University of Wisconsin, Madison. In 2019,
he completed the Corporate Finance and Credit
Program at J.P. Morgan.
32 • CIB Annual Report • 2023
2023 • CIB Annual Report • 33
CIB’s experienced management team continuously works to ENSURE ITS ACTIONS AND DECISIONS are in the best interests of the Bank’s stakeholders. CIB Introduction
What We Do
CIB serves enterprises
ranging from industry leading
corporates to medium-sized
businesses.
Institutional Banking, Corporate Banking,
and Global Customer Relations Group
Widely recognized as Egypt’s leading preeminent corpo-
rate bank, CIB serves enterprises ranging from industry
leading corporates to medium-sized businesses.
Debt Capital Markets
CIB’s position as an industry leader in project
finance, syndicated loans, securitization, bonds, and
structured finance is cemented by its global product
knowledge, local expertise, and capital resources.
CIB’s project finance and syndicated loan teams facil-
itate market access for large borrowers, providing
them with world-class services with exceptional
execution times.
Direct Investment
As a local player that adheres to international stan-
dards, CIB actively participates in carefully selected
direct investment opportunities in Egypt and across
the region, maximizing return on investment.
Financial Institution Group
CIB provides a diverse and tailored set of services
designed to suit the needs of banking and non-
banking financial institutions.
Strategic Relations Group
CIB is dedicated to servicing institutional clients
through the Strategic Relations Group (SRG). Highly
qualified relationship managers provide customers
— including, but not limited to, sovereign diplomatic
missions — with exclusive, personalized services
catering to their unique business needs.
Enterprise and Governmental Relations Group
The Enterprise and Governmental Relations Group
provides world-class, value-accretive services to top-
tier local and regional companies under state-owned
enterprises, governmental entities, or sovereign
authorities. Additionally, the Group creates new
business for CIB’s other lines of business by offering
clients various corporate, digital, and consumer
products and services.
Global Transaction and Digital Banking
The Bank’s Global Transaction and Digital Banking
Group is responsible for managing all corporate and
consumer digital channels, ensuring it fully inte-
grates the Bank into clients’ daily lives. It develops
simple, reliable, and consultative digital experiences
that meet customers’ needs anytime, anywhere, and
on any device.
Retail Banking
Consumer Banking
The Consumer Banking division is central to CIB’s
dynamic service offering, providing a broad range of
retail clients in different customer segments (Prime,
Plus, Wealth, or Private) an extensive bundle of prod-
ucts and services tailored to satisfy their needs. These
products are diversified from personal to special-
ized lending solutions, cash management services
to credit and debit card offerings.
Treasury and Capital Market Services
CIB delivers world-class services in the areas of cash
and liquidity management, capital markets, foreign
exchange, and derivatives.
Business Banking
The Business Banking segment serves over 75,000
SMEs with revenues ranging from EGP 1 million to
over EGP 200 million through a network of over 100
experienced relationship managers. The division
works with clients across the industry, providing
market-leading services and innovative, bespoke
solutions for small and medium enterprises as it
continues to cement CIB’s position as a bank of
choice for business owners.
Representative Offices, Strategic
Subsidiaries, and Associates
Dubai Representative Office
CIB launched its UAE operations in 2005, offering a
full range of products to retail and corporate clients.
The office focuses on attracting and channeling
inbound investments and cementing relationships
with reputable GCC corporations with current or
planned investments in Egypt and Africa, in addition
to targeting HNWIs and business banking clients with
an appetite for the Egyptian market. The office creates
a bridge between the GCC and Egypt by building
and maintaining relationships with large corporate
clients and financial institutions in the GCC, aiming
to boost the corporate and trade finance business in
Egypt. These strategic alliances are key to the Bank’s
expansion strategy, allowing it to leverage unique
opportunities beyond Egypt.
Addis Ababa Representative Office
CIB established its Ethiopia Representative Office in
April 2019 in Kirkos Sub City, Addis Ababa. The office
has been fully operational since 19 July 2019. The office
works closely with Egyptian corporations operating in
Ethiopia, as well as international and local financial
institutions, to offer creative solutions for their foreign
and local financing needs. It maintains and builds
relationships with Egyptian expatriates in Ethiopia
and focuses on developing strong ties with Ethiopian
banks to pave the way for establishing on-the-ground
market intelligence within the country.
CIB Kenya Limited
CIB Kenya Limited ( formerly Mayfair-CIB) is an
established commercial bank in the Republic of
Kenya and was licensed by the Central Bank of
Kenya in June 2017. CIB Egypt anchored its regional
presence with the acquisition of the remaining 49%
stake in Mayfair CIB Bank Limited, making it the first
fully owned subsidiary of CIB out of Egypt. CIB Egypt
has since focused on financing activities through
CIB Kenya, with special focus on growing the Egypt-
Kenya trade corridor, building a bridge for Egyptian
large corporates and SMEs to do business, and even
set up shop in the hub of Eastern Africa, and serve
multinational and local SMEs in Kenya.
Commercial International for Finance
Company (CIFC)
CIFC was established in June 2022, offering mortgage
and factoring facilities, with operations scheduled
to start in 2Q23. CIFC is aiming to transform the
complicated mortgage customer experience into a
simple, fast, and accessible one through offering a
streamlined process and providing flexible repay-
ment plans. The company will offer a comprehensive
mortgage finance suite introduced in phases: Ijara
purchase, Ijara refinance, Murabaha, Musharaka,
Portfolio Acquisition, and Financing Usufruct.
Additionally, the company will offer a full factoring
product suite to cater for the increasing demand for
alternative financial solutions. The solutions will
consist of three categories: Export Factoring, Local
Factoring, and Import Factoring, including buyer-led
reverse factoring programs. Factoring products will
provide a wide range of value-added services catering
for Multinationals, Large, and SME clients.
Damietta Shipping and Marine Services (DSMS)
DSMS is a shareholding company, established in 1986
through a public offering. CIB acquired a 32% stake in
the company in July 2018, which was later increased
to 49.95% in October 2020. DSMS is a small-sized
company, with minimal operations focusing on marine
services, mainly container repairs, fuel tank rentals, and
electricity generators.
34 • CIB Annual Report • 2023
2023 • CIB Annual Report • 35
CIB Introduction • What We Do
SMEs served.
+7.5K
CIB delivers world-class
services in the areas
of cash and liquidity
management, capital
markets, foreign exchange,
and derivatives.
Al Ahly Computer Equipment Company (ACE)
Established in October 1996 as a joint stock company,
ACE maintains a long and strong track record in
the field of trading and maintenance of specialized
information technology hardware. The company is
well-positioned as the system integrator of choice for
the government, major banks, and large institutions.
ACE sources its original hardware products from
recognized companies in the field, such as Sedco,
Fujitsu, HP, and Cisco. In 2020, ACE worked with
numerous prominent institutions and was awarded
a mega tender project from one of the largest national
banks in Egypt. Despite challenging market condi-
tions arising from global economic disturbances due
to geopolitical conflicts, the company’s management
successfully increased its maintenance contracts to
offset the decline in trading activity, ensuring revenue
and profitability sustainability. ACE will continue
focusing on enhancing its maintenance experience
and expanding its client base, along with introducing
new products and exploring additional strategic
technology partnerships. The ultimate objective is
to increase the company’s market share and value
against competitors.
T.C.A Properties
T.C.A Properties is an SPV under Talaat Moustafa
Group, established through its subsidiary Alexandria
Company for Real Estate Investment (AREI) and
its parent company TMG for Real Estate Touristic
Investment. The SPV specializes in real estate
commercial business activities, including the acqui-
sition, leasing, and selling of commercial real estate
units, buildings, and/or spaces, and it will be managed
by Alexandria Company for Projects Management.
36 • CIB Annual Report • 2023
2023 • CIB Annual Report • 37
The Business Banking segment serves OVER 75,000 SMES with revenues ranging from EGP 1 MILLION TO OVER EGP 200 MILLION through a network of over 100 experienced relationship managers. CIB Introduction
CIB’s Stock
CIB continues to hold the highest weight on the
EGX30, accounting for around 28% of the index (by
end of December 2023).
April 2023, a cash dividend was distributed amounting
to EGP 0.538 for every share.
Breakdown of Shareholders by Region
(As of December 2023)
Breakdown of Shareholders by Type
(As of December 2023)
Continental Europe
3.50%
UK & Ireland
3.60%
Rest of the World
2.30%
Individuals
7.78%
Africa
22.37%
North America
43.44%
Institutions
92.21%
GCC
24.79%
Since the Bank began offering its shares to the public
in 1993, it has become the biggest constituent on
the EGX. Investors and analysts view CIB’s stock as a
proxy for the Egyptian market, with the Bank acting
as a mirror for the local banking sector. The economy’s
growth prospects are generally depicted in the credit
outlook, while retail banking is seen as portraying the
longer-term story of financial inclusion. In 1996, CIB
became the first Egyptian bank to offer its shares on
international markets, with a GDR program on the
London Stock Exchange (LSE). In 2001, CIB marked
another first by being the first Egyptian bank to register
its shares on the New York Stock Exchange (NYSE) in
the form of the American Depository Receipts (ADR)
Level 1 program. In 2012, the Bank began trading on
OTCQX International Premier, a segment of the OTCQX
marketplace reserved for international-leading, non-US
companies listed on a qualified international exchange
and providing their home country disclosure to US
investors.
In a remarkable performance placing it as the MENA
region’s top performer in 2023, Egypt’s main Exchange
Index, EGX 30, 10,296 points or 70.53% since the begin-
ning of the year, with an opening position of 14,598.1
points, closing the year at 24,894 points.
COMI’s performance was no different; in fact, it
surpassed the EGX 30’s huge growth, recording an
increase of 75.15% y-o-y. COMI started the year with
an opening price of EGP 41.48 and maintained strong
momentum until year-end, coming at EGP 72.65. COMI’s
VWAP during the year was EGP 56.6, with an average
daily volume of 5.93 million shares and an average
market capitalization of EGP 170.5 billion. Moreover,
its average price-to-book ratio recorded 2.45, with a high
of 3.28 recorded on 27 November at a closing price of
EGP 84.06, and a low of 1.836 recorded on 12 January at a
closing price of EGP 41.7. It is worth mentioning that in
By year-end, the Bank’s GDR outstanding position
reached 793,833,584 shares, and its ADR outstanding
position recorded 28,026,308 shares, representing
27.24 % of total issued shares. CIB continues to hold
the highest weight on the EGX30, accounting for 28 %
of the index, and free float at 69 %. CIB’s stock is one of
Egypt’s most liquid stocks, as it is considered the most
valuable financial institution.
Investor Relations
The Bank’s Investor Relations (IR) division main-
tains a proactive investor relations program to keep
shareholders and investors abreast of developments
impacting the Bank’s performance. The team and
senior management alike dedicate significant time to
one-on-one meetings, roadshows, investor conferences,
and conference calls, sparing no effort in providing
the investment community with transparent disclo-
sures while simultaneously ensuring analysts have
the information they need to maintain a balanced
coverage of the Bank’s shares. Throughout 2023, the
Bank’s IR division dedicated its efforts to accommodate
the conferences and calls to which CIB was invited.
The team attended three virtual conferences and six
physical conferences, accommodated more than 100
meetings, including more than 60 physical meetings.
It met with more than 200 companies incorporating a
wide range of international, regional, and local institu-
tions. The IR team also conducted four annual rating
review meetings with the rating agencies S&P, Fitch,
Moody’s, and Capital Intelligence.
During the year, disclosures, including regular
updates and releases, continued to be periodically
made available on CIB’s IR website, as well as the
EGX, LSE, and OTCQX portals in a timely manner
that ensures fair access to information for inves-
tors from around the world, allowing them to make
informed investment decisions.
38 • CIB Annual Report • 2023
2023 • CIB Annual Report • 39
CIB Introduction
Awards
1993 – 1998
Six-time Recipient of Best Bank in Egypt Award by
Euromoney
2005
First Egyptian bank to win the JP Morgan Quality
Recognition Award
2006 – 2012
Seven-time Recipient of JP Morgan Quality
Recognition Award
2013
First Egyptian bank to win the JP Morgan Elite STP
Award
2017
• World’s Best Bank in the Emerging Markets by
Euromoney, the first bank in the Middle East and
Africa to win this award
• First Egyptian bank to be named Best Bank in the
Middle East by Euromoney
2016
• Socially Responsible Bank of the Year by African
Banker
• Best Bank in Egypt Supporting Women-Owned
and Women-Run Businesses by the American
Chamber of Commerce in Egypt
• Achievement in Liquidity Risk and Operational Risk
for the Middle East and Africa by Asian Banker
• Best Retail Risk Management Initiative by Asian
Banker
• Most Active Issuing Bank in Egypt in 2015 by
the European Bank for Reconstruction and
Development
• Middle East Most Effective Recovery by BCI
2018
World’s Best Emerging Markets Bank by Global
Finance for the second consecutive year — CIB is
the first bank in Egypt and the Middle East to win
this prestigious award
2019
The Middle East’s Best Bank for Corporate
Responsibility - By Euromoney
40 • CIB Annual Report • 2023
2023 • CIB Annual Report • 41
CIB Introduction • Awards
2020
• World’s Best Bank in the Emerging Markets Award by Global Finance
• Best Foreign Exchange Provider in Egypt Award by Global Finance
• Best Treasury and Cash Management Providers in Egypt Award by Global Finance
• Best Emerging Markets Bank Award by Global Finance
• Best Private Bank in Egypt Award by Global Finance
• Best Bank in Egypt Award by Global Finance
• Middle East’s Best Bank for Corporate Responsibility Award by Euromoney
• Best Regional Bank in North Africa Award by African Banker
• Best Domestic Bank in Egypt Award by Asiamoney
• Best Digital Bank in Egypt Award by Asiamoney
• Pan-Africa Sustainability Award by EMEA Finance
The World’s Best Consumer Digital Banks in the Middle East 2020
• Best Consumer Digital Bank
• Best Integrated Consumer Banking Site
• Best Online Product Offerings
• Best Website Design – Best Mobile Banking App
• Best Information Security and Fraud Management
• Most Innovative Digital Bank
• Best Open Banking APIs
The World’s Best Corporate/Institutional Digital Banks in the Middle East 2020
• Best Online Investment Management Services
• Best Online Treasury Services
• Best Online Portal
• Best Integrated Corporate Banking Site
• Best Information Security and Fraud Management
• Best Mobile Banking Adaptive Site
• Most Innovative Digital Bank
• Best Open Banking APIs
2021
• Global Finance Best Bank
• Global Finance Best Digital Bank in Egypt
• Global Finance Best Treasury, Cash Management, Best Trade Finance Provider in Egypt
• Global Finance Best in Financial Leadership in Sustaining Communities
• Digital Banker Best Transaction Banking
• Digital Banker Best Bank for Payment Services
• Digital Banker Best Bank for Cash Management
• Digital Banker Best Supplier Financing
• Digital Banker Best Financial Chain Initiative in Egypt
• Euromoney Best Bank in Egypt
• The Banker Best Digital Bank in Africa
• African Banker Sustainable Bank of the Year
• EMEA Finance Most Innovative Bank in Pan-Africa
• Asiamoney Best Domestic Bank in Egypt
• MEED Best CSR Initiative in Asia and Middle East
• Forbes World’s Best Employers list for 2021
2022
• Global Finance World’s Best Trade Finance Providers in Egypt
• Global Finance World’s Best Foreign Exchange Providers
• The Digital Banker Best Wholesale/Transaction Bank for Digital CX
• EMEA Finance Best Green Bond in Africa
• MENA Sustainable Bank of the Year
• Euromoney Missile East’s Best Bank for SMEs
• Euromoney Best Bank in Egypt
• Euromoney Best Bank for Digital Solutions in Egypt
• Country Awards
• Euromoney Best Bank for SME Banking in Egypt
• EMEA Finance Best Local Currency Loan
• EMEA Finance Best Structures Finance Deal in Africa
• EMEA Finance Best Cash Management Services in North Africa
• EMEA Finance Best Payment Services in North Africa
• EMEA Finance Best Trade Finance Services in North Africa
2023
• Best Bank in Trade Finance/MEED
• Best Private Bank/Global Finance
• Best Supply Chain Finance Bank in Africa 2023/Global Finance
• Best M&A Deal in MENA/EMEA Finance
• Lifetime Achievement Award/African Banker
• Best Securitization House in Africa/EMEA Finance
• Best Trade Finance Provider (Egypt)/Global Finance
• Best Bank for Cash Management (Egypt)/Global Finance
• Best Securitization Deal in Africa/EMEA Finance
• Best Bank in Egypt/Euromoney
• Transaction Banking Award/Global Finance
• Best Bank for SMEs in Egypt/Euromoney
• Best Bank for ESG in Egypt/Euromoney
• Best Bank in Egypt 2023/Global Finance
• Best Service for Cash Management/Euromoney
• Best Payment Services in Africa/EMEA Finance
• Best Payment Services in North Africa/EMEA Finance
• Best Cash Management Services in North Africa/EMEA Finance
• Best Trade Finance Services in North Africa
• EMEA Finance Bank of the Year
• Bank of the Year (Egypt)/The Banker
42 • CIB Annual Report • 2023
2023 • CIB Annual Report • 43
02•
Strategic
Direction
2023 consolidated net income
29.6EGP/BN
44 • CIB Annual Report • 2023
2023 • CIB Annual Report • 45
CIB’s strategy focuses on strengthening its core business to serve current and potential customers in the corporate, SME, and retail segments. Strategic Direction
Our Strategy
Our strategy has continuously evolved in alignment
with dynamically changing market conditions and
emerging trends. It remains, however, centered
around creating value for our shareholders and
meeting customer needs.
Moving forward, our growth strategy is based on further
optimizing our commercial activities by capitalizing
on our comprehensive suite of physical and digital
channels/products, while leveraging on data-driven
decision-making to unlock potential opportunities.
Our three main strategic directions are
01
02
03
Protect the success
of the corporate and
liabilities franchises
Grow and diversify
sources of revenues to
achieve sustainability
and resilience
Become a digital
leader in customer
service, sales, and
operations
VISION
MISSION
To be at the forefront of change,
build for the future, and turn
aspirations into reality
To transform traditional financial
services into simple and
accessible solutions by investing
in people, data, and digitalization
to serve tomorrow’s needs today
Based on its mission and vision statements, CIB’s strategy focuses on the following growth drivers:
Our Values
• Customer first
• Lead the market
• Agility
• Integrity
Our Pillars
• A Customer-Centric Business Model – making
data-driven decision to unlock growth, lever-
aging on automation and data analytics.
• Digital Transformation and Distribution
– focusing on branch offloading, digital sales,
adoption, and engagement, while expanding
accessibility to the unbanked and underserved
segments via physical or digital mobility.
• Operational Efficiency – through digital inno-
vation and prudent cost management.
• Superior Customer Experience – to further
strengthen CIB’s brand equity.
Dynamic Long-Term Strategy
Core Business and Digitization
The foundation of CIB’s approach rests on its
commitment to being a bespoke bank, a finan-
cial-value-creating companion offering solutions
and bundles tailored to meet individual needs.
The Bank recognizes the opportunities still available in
the retail and SMEs sectors as the country and sectors
push for a comprehensive financial inclusion model.
Therefore, the Bank will be adopting a value-proposition
through a program-based pricing approach as a means
of providing a seamless model dedicated to developing
our digital capabilities, as well as re-energizing the SME,
affluent, and mass segments. The Bank also realizes
the potential in the Non-Resident Egyptians (NRE)
segment, which is in line with the government’s efforts
to support Egyptians abroad. CIB aspires to become the
core bank for NREs by providing a fully remote service
and coverage model.
The Adoption of corporate
governance best
practices continues to be
a key differentiator for CIB.
Institutional Banking will continue to strengthen
its leadership position in corporate banking by
focusing on increasing its share of wallet with
existing customers, while diversifying its lending
portfolio toward sectors of the future. This will be
accompanied by Global Trade and Cash manage-
ment solutions to cater for our customers’ evolving
needs for cash optimization.
Solidifying Our African Roots and Foundation
After CIB’s acquisition of the remaining 49% of CIB
Kenya in January 2023, the plan is to scale up the
bank, aiming to operate it as a business and digital
hub within the region, facilitating CIB’s strategy to
expand across the East African region. The hub will
channel trade opportunities between Egypt and
Kenya, providing regional integration opportunities
and synergies across the continent, leveraging on CIB’s
knowhow in corporate, SME, and household banking.
Organizational Development
The adoption of corporate governance best practices
continues to be a key differentiator for CIB. The Bank
continues to promote a culture of sound corporate
governance to be a leading example for the banking
industry. As part of the organization’s development,
the Risk Group has evolved as well to support busi-
ness growth aspirations by developing alternative
scoring models to unlock lending at scale.
46 • CIB Annual Report • 2023
2023 • CIB Annual Report • 47
Strategic Direction • Our Strategy
Our employees are our most valuable asset, the
cornerstone of CIB’s development. As such, identi-
fying and nurturing talent is a key priority for CIB,
especially as new market trends emerge. The Bank
will continue to invest heavily in employee training
and education as we commit to delivering the best
value to our shareholders and clients.
Corporate Social Responsibility
CIB will continue leading the industry with a sharp
focus on implementing sustainable finance instru-
ments, products, and frameworks. The Bank will
integrate the environmental, social, and governance
(ESG) principles into its policies, procedures, opera-
tions, and culture. We will continue facilitating and
upholding CIB’s strategic sustainability pillars: risk,
revenue generation, reputation, and E&S impacts.
Finally, CIB will develop sustainable finance prod-
ucts that promote energy efficiency, renewable
energy technologies, sustainable transportation,
green building and cities, pollution prevention, and
water and waste management by offering clients
financing packages supplemented by top-of-the-line
technical support.
We will continue to lead and advocate responsible
banking through driving financial inclusion and
literacy, supporting women and youth empower-
ment, and promoting equality.
CIB will continue
leading the industry
with a sharp focus
on implementing
SUSTAINABLE
FINANCE
INSTRUMENTS,
PRODUCTS AND
FRAMEWORKS.
48 • CIB Annual Report • 2023
2023 • CIB Annual Report • 49
Strategic Direction
Value Creation Model
Value creation remains one of the main pillars of CIB’s strategy. The Bank works diligently to create value for
its shareholders, customers, employees, and society. To do this, it efficiently utilizes its key resources to best
serve its strategic priorities, taking into account all prevailing macroeconomic driving forces. This results in
both financial and non-financial value for CIB’s stakeholders.
Key Stakeholders
Strategic Priorities
Clients
Employees
Shareholders and
Investors
Society
Customer-
Centricity
• Offering need-based,
bundled value propositions,
like digital solutions through
data analytics
• Quality of service initiatives
to enhance customer
experience
Organizational
Development and
Sustainability
• Performance-driven culture
• Social and environmental
management system
• Human capital development
Resources (Input)
Value Created (Outcome)
Financial Capital
Strong financial capital is
always reinvested in the Bank’s
activities.
• EGP 29.6 billion in consolidated net
income
• EGP 28.77 billion standalone revenues
• EGP 90.48 billion net worth
• EGP 834.9 billion total assets
• EGP 677.2 billion total deposits
• EGP 170.5 billion average market
capitalization
• 39.7% ROAE
• 3.59% NPLs
• 17.1% cost/income
Financial Performance
• Ranked number one bank among all
Egyptian private sector banks in terms
of revenues, net worth, total assets, and
deposits.
• The largest market capitalization in the
Egyptian banking sector, and one of the
highest ROEs.
Financial
Performance
• Asset quality
• Profitability
• Loan growth
Operational
Efficiency
• Centralization of operational
processes with focus on
automation through STP
• Business continuity,
cybersecurity, and resilience
management
Human Capital
CIB’s in-depth expertise
across different industries is
mainly rooted in its skilled,
specialized, and dedicated
employees.
• 7,917 total workforce, as of year-end.
• Received the prestigious ISO 29993
Certification for Learning Services
Management System, in recognition of
HR’s dedication to providing world-class
learning and development opportunities.
• First private bank to acquire Egyptian
Gender Equity Seal (EGES), guided by the
World Bank Gender Equity Model (GEM).
Human Capital
• Highly skilled staff capable of sustaining
CIB’s path of success and maintaining
the Bank’s leading position within the
market.
50 • CIB Annual Report • 2023
2023 • CIB Annual Report • 51
• Constituent of the FTSE4 Good Index.
• Included in the 2023 Bloomberg Gender
Equality Index (GEI) for the fourth
consecutive year, after being the first
Arab and African company listed on the
2019 Bloomberg GEI—the world’s only
comprehensive investment quality data
source on gender equality.
• Co-Chair of the Closing Gender Gap
Accelerator, supported by the World
Economic Forum (WEF).
• Included in the new Low-Carbon Select
Index in the MENA region, recently
launched by the Arab Federation of
Exchanges (AFE) and data provider
Refinitiv.
• Expanding digital banking platforms
through availing more services to
enhance customer experience and sales
efficiency and manage costs.
• Continuously upgrading the Bank’s infra-
structure and cybersecurity capabilities
to provide a seamless customer experi-
ence in a safe environment.
Strategic Direction • Value Creation Model
Resources (Input)
Value Created (Outcome)
Responsible Capital
Integrating ESG aspects into
the Bank’s policies, operations,
culture, products, and services
to achieve sustainable
development and act as
an advocate of responsible
banking.
Innovation and Technology
Innovation is chiseled in
CIB’s DNA, and the Bank is
at the forefront of the market
in offering simple, fast, and
contextual experiences to its
customers with a special focus
on digitalization.
• Issued Egypt’s first corporate green bond.
• First bank in Egypt to support the task
force for Climate Related Financial
Disclosures (TCFD).
• Has in place a robust Environmental and
Social Risk Management System (ESRM)
since 2016, which positions the Bank as
the leader in sustainable finance in the
Egyptian market and provides clients
with the necessary tools and products to
aid their transition to a more responsibly
profitable economic model.
• First Egyptian bank to conduct a debit
and credit life cycle assessment.
• First Egyptian bank to conduct an
Environmental and Social Impact
Assessment on borrowing SME clients.
• Founding signatory to the UNEP-FI
Principles for Responsible Banking.
• Largest ATM network among private
banks at 1,339 ATMs.
• A 17% y-o-y increase in mobile banking
transaction volume, amounting to EGP
348 billion, and a 15% y-o-y increase in
number of online banking customers.
• Acquisition channels have been
expanded on Smart Wallet throughout
2023 by adding new bank agent stores
across all governorates, with around
1.1 million customers using CIB Smart
wallet.
• During 2023, and despite the severe
foreign currency challenges in Egypt, we
witnessed online transactions increase by
10% y-o-y in volume, with a value of EGP
95 billion. This had a positive impact on
trade finance fees for online deals, which
were up 181% y-o-y to EGP 690 million.
• CIB ranks first in the Egyptian market
in the e-governmental payment space.
Corporate payment services (CPS) saw a
45% y-o-y increase in transaction volume,
amounting to EGP 43 billion. It also saw
a 41% y-o-y increase in the number of
customers.
52 • CIB Annual Report • 2023
2023 • CIB Annual Report • 53
Strategic Direction
Chairman’s Note
Prime segment gross contribution.
840 EGP/MN
We recognize the
transformative power of
technology in shaping the
future of banking.
Dear shareholders,
The past 12 months have tested the resilience and
agility of your Bank, just as they have every other
Egyptian institution. Macroeconomic challenges
are at the head of a considerable list of issues that
CIB’s staff, its Management team, and the Board of
Directors have had to deal with.
Despite remarkable changes in the flows of busi-
ness and capital, not just in Egypt, but globally, CIB
has delivered a record year when measured by our
financial results. I am grateful to all our employees
and our exceptional Management team for this
performance, but our guiding principle is that the
numbers are just the beginning.
Even in times as challenging as this, it is not profit-
ability that matters, but the quality of that profit.
The drivers of growth and profitability today will
not be the determining factors in success tomorrow
— we know this, just as we know that true value is
created by core operations.
This philosophy underpins our strategy going
forward and guides the decisions we make as we
ensure our Bank remains a beacon of sustainable
growth and is able to withstand exogenous
shocks, be they regulatory decisions, changes in
the business cycle, or new macroeconomic and
technological realities.
It is deeply gratifying to me that we have grown
despite the complexities of our time, and I am
satisfied that our strategy, rooted as it is in resil-
ience above all else, will ensure we capture the
potential of what is to come. To do so, however,
we must be steadfast when it comes to execu-
tion — whatever the challenges we face at home,
regionally, or globally.
As we prepare to start our 50th year as an engine of
growth for Egypt and its economy, it is clear to me
that future will bring its own set of challenges.
Alongside resilience, our strategy is rooted in continued
investment in our people, developing a more diverse
base of revenues, an even deeper embrace of technology
in a way that puts human creativity in the driver’s seat,
and a robust commitment to cybersecurity.
On the revenue front, our vision extends well
beyond the immediate horizon. We have already
taken solid steps outside of Egypt with our entry
into Kenya. Next, we must build an international
franchise that ensures operations outside of Egypt
for a sizeable proportion of both our revenues and
profits. As longtime shareholders know well, I feel
a deep attachment to this continent we share and
look forward to seeing African revenues become
more and more important to your Bank.
Becoming a multi-jurisdiction institution will also
allow us to become more innovative, using more
permissive sovereignty as laboratories to explore new
ideas and new products and later exporting them to
other countries in which we operate when and if the
regulatory environment allows.
We have spent a decade investing heavily in tech-
nology, new approaches to risk management, and
developing a market-leading digital experience. CIB
has been at the forefront of change: We were the first
Egyptian institution to hire a chief data scientist
and the first to embrace artificial intelligence across
multiple lines of business.
We will not rest on our laurels: Advances in artificial
intelligence will make our people better bankers —
and, in the process, help us remain the market leader
whether judged by our apps, services, advice, or
convenience we offer clients of all sizes. Technology
will ensure that we are a bank that better and more
efficiently serves our individual customers — and
one that is responsive to the changing needs of our
We have spent a
decade investing heavily
in technology, new
approaches to risk
management, and
developing a market-
leading digital experience.
54 • CIB Annual Report • 2023
2023 • CIB Annual Report • 55
Strategic Direction • Chairman’s Note
market-leading corporate franchise. Our people
will also harness technology to be able to not only
respond to challenges and opportunities but also
to anticipate them and plan ahead.
In parallel, an evermore complex digital threat
environment will demand we make sustained
investments in cybersecurity; an investment that
is ongoing and will remain unabated.
As we do so, we will always have resilience in mind.
No institution is immune from shocks, and the best
leaders know that their success is contingent on
their ability to respond decisively and nimbly to
black swan events. From the global financial crisis
to the revolutions of 2011 and 2013 through the
foreign currency challenges of recent years, CIB has
demonstrated time and time again that it has that
inborn ability to be resilient.
Fail to build a resilient institution and you risk
becoming complacent — and complacency too often
sees institutions resting on their successes. They may
find it easy going when times are good, but history is
a great banker: It tells us that if you are not actively
quantifying and mitigating risk, you will be unpre-
pared for when change or a crisis appear on your radar.
Looking well beyond 2024, I am increasingly confi-
dent that the Bank’s ability to cultivate and improve
resilience as a skill and as a characteristic will be
brought into sharp relief. Globally, we are at the
beginning of a new period of risk occasioned by
changes in regional and geopolitical dynamics. In
an increasingly fragmented world, resilience will
be the only insurance policy worth having. A fast-
changing regional economy will have deep impacts
on the flow of capital, and it remains far from settled
that the only way forward for global economy is “up
and to the right.”
The value of resilience and of its cousin, nimble-
ness, was reinforced for me during the two years in
which I was away from your Bank. I learned much
from advising fintech and finance companies and
from peering into new corners not just of our
industry and our nation, but of the wider economy
and of other countries.
Returning this year as Non-executive Chairman,
I have worked carefully with Management and
the Board to ensure that resilience is even deeper
rooted in our DNA and in the strategy to which it
gives rise. This process has been both exhaustive
and exhausting — it has demanded large time
commitments from the Board and Management
alike. Yet, it is necessary, because we are not in a
“business as usual” scenario.
I view the role of Non-executive Chairman as analo-
gous to being the Bridge-Builder-in-Chief between
Executive Management and the Board — to ensure
the smooth flow of traffic across that bridge as we
build trust on both sides.
True resilience is only possible when those trusted
with driving the business forward, Management,
share the same values and a commitment to quality
with those whose duty it is to safeguard the rights
and interests of all stakeholders, the Board.
Hisham Ezz Al-Arab,
Non-Executive Chairman
56 • CIB Annual Report • 2023
2023 • CIB Annual Report • 57
Strategic Direction
A Note From Our CEO
Y-o-y increase in 2023 profit.
84%
We play meaningful roles
in helping individuals
live better lives,
corporate clients build
better businesses, and
economies create jobs.
Our performance in 2023 underscores our steadfast
commitment to fundamental principles. The record
84% increase in profits is a testament to the efficient
management of our cost of funds, strategic pursuit
of real loan and deposit growth, and proactive focus
on generating fee income. Our return on average
equity stood at an impressive 39.7%, positioning us
among the industry’s top performers. Furthermore,
our unwavering dedication to maintaining sector-
leading solvency levels reinforces our reputation
for stability and reliability. This remarkable
performance exemplifies our dedication to
excellence and sets a solid foundation for continued
success in the future.
This achievement is all the more significant, consid-
ering the challenging market conditions of 2023. We
faced various obstacles, such as foreign exchange
challenges in Egypt, and the spillover effects of
global issues, notably the humanitarian crisis in
Gaza in the last quarter of the year, alongside a ship-
ping slowdown in the Suez Canal amid instability
in the Red Sea region.
Prudence was our guiding principle last year and
will remain central to our strategy in 2024. We
place a strong emphasis on risk management and
maintain a conservative approach to provisions to
mitigate any potential decline in asset quality.
As we enter 2024, I am confident that maintaining
focus on the fundamentals will enable us to once again
achieve the robust profitability our shareholders expect.
Our optimism comes from the same principles that
have sustained us since the Bank’s inception: a leading
deposit franchise and a robust corporate portfolio.
Our steady focus on core banking principles remains
unchanged, even as we navigate evolving industry
dynamics driven by regulation and digitization.
Some businesses that struggled in 2023 will declare
in the new year that it is time to “get back to basics”
and focus on core operations. At CIB, we have never
lost sight of our business model or the singular factor
that makes us great: Our people. As we approach our
50th year in the industry, I am more cognizant than
ever that the great bankers we employ, from the staff
in our branches to risk, from treasury to operations,
from our outstanding institutional franchise to busi-
ness banking and retail, are the core of CIB.
People are the driving force behind everything we
do, our people and the values by which they live
and work have together ensured we perform ahead
of our peers and competitors in the market. They
made CIB — and they will continue to make this
bank what it is in the years to come.
Our people — some 7,917 of them — reflexively put
our customers first, whether that is face-to-face in
branches, with Wealth and Private clients, in the
C-suite offices of our largest clients, or on our ever-
improving digital channels.
People will also be at the heart of our rebuilding
at CIB Kenya, where we will actively compete
for foreign trade, SME, and wealth management
business with a robust management team and
experienced board of directors.
In Egypt, we are increasingly optimistic that the
economy could decisively turn the corner. We have
seen signs in recent months of significant investment
— both realized and warehoused — that speak to
continued global appetite for the Egypt story. Our
economy is one that can rapidly change course for
the better: The challenge right now is fundamentally
about sentiment. Clarity on foreign exchange policy
will unlock fresh investment and magnify the impact
of tourism and exports. This policy will also create
Our people and the values by
which they live and work have
together ensured we perform
ahead of our peers and
competitors in the market.
58 • CIB Annual Report • 2023
2023 • CIB Annual Report • 59
Strategic Direction • Chairman’s Note
conditions for real economic growth that will see a
return to productive lending to businesses that want
to grow — our reason for being as bankers.
In the meantime, our continued partnerships with
leading international entities have time and again
demonstrated our resilience and agility in the face
of challenging economic circumstances. We are
particularly grateful to have enjoyed in 2023 the
unwavering support of our international partners,
including the European Bank for Reconstruction
and Development ( from whom we onboarded a USD
150 million, 10-year subordinated Tier II facility)
and the International Finance Corporation (USD
250 million in two facilities to support our capital
base and fund green projects).
Report, covering the 2021–2022 period. We remain
committed to giving investors, regulators, and
other stakeholders as much transparency on our
approach to emission reduction as we do on our
financial performance.
In anticipation of 2024, I acknowledge the chal-
lenges ahead. However, I strongly believe next year
holds the potential to mark a significant turning
point. Regardless of the uncertainties that lie ahead,
I am confident in the capabilities of our dedicated
team at Egypt’s Bank to Trust. Equipped with a
robust strategy, comprehensive training, a global
perspective, and efficient systems, I am certain that
we have what it takes to navigate through whatever
challenges come our way.
Hussein Abaza,
Chief Executive Officer
Our partners continue to take note of our commit-
ment to sustainable banking: Fully USD 100 million
of the funding we took onboard from IFC this year
was to finance a pipeline of environment-friendly
projects that include water treatment and effi-
ciency, green buildings, and renewables, as well as
sustainable agriculture projects.
That commitment is also emphasized by our
publication in late 2023 of our first Task Force on
Climate-Related Financial Disclosures (TCFD)
60 • CIB Annual Report • 2023
2023 • CIB Annual Report • 61
Our continued partnerships with LEADING INTERNATIONAL ENTITIES have time and again demonstrated our RESILIENCE AND AGILITY in the face of challenging economic circumstances. Strategic Direction
BOD Report
Dear stakeholders,
As we navigated through 2023, it became evident
that certain challenges persisted, echoing the diffi-
culties that emerged in 2022. The ripple effects from
the Russia-Ukraine war continue to shape economic
landscapes, giving rise to tightening monetary policies
and rising commodity prices, all of which continue to
pose significant challenges to global economies.
Closer to home, the unfortunate political crises that
turned into a humanitarian predicament on Egypt’s
borders in Gaza and Sudan have cast a sombre shadow
on the global stage. The impact of such events rever-
berates beyond borders, urging everyone to reflect on
our shared responsibility to address and alleviate such
a humanitarian catastrophe.
Said geopolitical tensions, in addition to the severe global
and regional economic slowdown, had repercussions on
Egypt, reflected in interest rate hikes and record-high
headline and core inflation, along with a weak pound.
Despite adverse market conditions caused by the
simultaneous and sequential global events, CIB has
proven the strength and sustainability of its business
model by achieving yet another record year of success.
On that note, CIB’s Board of Directors is pleased to
present to the stakeholders the following report,
outlining the key developments in the macroeconomic
environment and their impact on our operations.
Macroeconomic Environment
In 2023, the repercussions of the Russia-Ukraine war,
which unfolded in 2022, continued to have an impact
on Egypt.
The CBE implemented significant interest rate hikes
to curb inflationary pressures during the year, where
headline inflation rates reached 33.7% in December
2023. Overall, interest rates increased by 1,100 bps
since March 2022. Over eight Monetary Policy
CIB will continue to develop
digital capabilities with a
focus on value-proposition
and a program-based pricing
approach.
Committee (MPC) meetings during 2023, the CBE
hiked interest rates by a total of 300 bps to reach a
mid-corridor rate of 19.75% in December.
In October, credit rating agency Moody’s downgraded
Egypt’s credit rating by a notch to “Caa1” from “B3”
and S&P Global Ratings downgraded Egypt’s credit
ratings to “B-” from “B;” with both saying the outlook
was Stable. This was mostly due to USD 3 billion in
support from the IMF, along with the structural
reforms that the government is undertaking to
address the economic crisis and stimulate invest-
ment. In November, global rating agency Fitch
downgraded Egypt’s long-term foreign currency
issuer default rating (IDR) from “B” to “B-,” changing
the outlook to Stable, due to increased risks in Egypt’s
external financing, macroeconomic stability, and the
trajectory of the already high government debt.
The Egyptian pound (EGP) has lost nearly 50% of its
value against the US dollar (USD) in a series of deval-
uations since March 2022. The third and most recent
devaluation occurred in January 2023, reaching EGP
31 pounds per USD 1. It is worth noting that Egypt
received the first tranche from the IMF deal worth
USD 347 million, waiting for the disbursement of the
third and fourth tranches. Egypt is currently negoti-
ating with the IMF to increase the loan to match the
recent economic updates.
Days prior to the January devaluation, in an attempt
to absorb liquidity in the market to counter inflation,
two public sector banks issued one-year Certificates
of Deposit (CDs), offering 25% annual return and
22.5% monthly return, securing EGP 460 billion.
In addition, the foreign currency situation led to
tough banking requirements to finance imports,
destabilizing trade and making it difficult to import
raw materials and machinery. However, the Egyptian
government is working on implementing structural
reforms to address the current challenges.
The government is also intensifying its efforts to expe-
dite the implementation of its initial public offering
(IPO) program and encourage investment. Egypt had
launched the IPO program in February to offer state-
owned companies to strategic investors by the end of
June 2024. Recently, the Sovereign Fund of Egypt (TSFE)
achieved significant milestones through the finalization
of agreements to sell shares in state-owned companies,
amounting to a total of USD 2.5 billion, as part of Egypt’s
larger target of USD 5 billion for the FY2023/2024
period. The TFSE has confirmed that it had already
received USD 5 billion from the sale of state shares
in 13 companies between March 2022 and July 2023.
This is part of the State Ownership Policy Document,
a strategy released in December 2022 to increase the
private sector’s presence in the Egyptian economy.
In June, Egypt officially submitted its application to
join the BRICS group, which will take place officially
in January 2024. The bloc’s aspiration to create an
alternative currency for global trade, potentially
backed by gold, and to lessen reliance on the USD,
is believed to benefit Egypt in its foreign currency
challenges, and could also open doors to substantial
investments in the Egyptian economy.
The economy has been expanding, albeit slowly.
The CBE reported a 2.65% annual expansion in Q1
2023/2024, compared to 4.4% in FYE2022/2023.
Nevertheless, although USD availability remains an
issue, Egypt’s foreign currency resources experienced
notable increase across key sectors. The Suez Canal, a
critical source of revenue for the country, recorded a
significant increase of 25.19%, reflecting heightened
maritime activity and global trade. The tourism
sector also saw robust growth, with revenues surging
by 26.81%, indicative of a resurgence in international
travel and visitor spending. However, remittances
fell by 30.85%, signalling challenges in the global
economic landscape affecting Egyptians working
abroad. Despite this, Egypt’s foreign currency
reserves displayed resilience, reaching USD 35.17
billion in November 2023, compared to USD 33.532
billion in the same month of the previous year. This
upward trajectory indicates successful efforts by
the government to boost reserves, ensuring stability
and economic resilience amid global economic
challenges. It is also important to note that one of
Egypt’s fundamental strengths is that its banks are
well-capitalized and capable of absorbing shock.
In December, President Abdel Fattah El-Sisi secured
a third term in office, reaffirming his leadership
and the stability he has brought to the country.
The Egyptian government is focusing on several
important areas to address these difficult times,
including tightening control over commodity prices
and reducing parallel market activity. The govern-
ment continues to exert efforts to diversify and
strengthen foreign currency resources, acknowl-
edging the strategic importance of maintaining a
robust economic foundation.
Strategic Pillars
While our strategy remains ever-evolving in
alignment with the dynamically changing market
environment and emerging trends, it continues to
center on creating value for all our stakeholders.
Moving forward, our growth strategy will focus
62 • CIB Annual Report • 2023
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Strategic Direction • BOD Report
CIB maintained its leading
position in the Egyptian
market in governmental
e-payment transactions
over the Corporate Payment
Services (CPS) platform.
on further optimizing commercial activities by
capitalizing on our comprehensive suite of physical
and digital channels and products, while leveraging
on data-driven decision-making to unlock potential
opportunities. Three main strategic themes form the
core of this strategy are capitalizing on the success of
the corporate and liabilities franchises, growing and
diversifying revenue sources to achieve sustainability
and resilience, and becoming a digital leader in
customer service, sales, and operations.
Core Business
CIB’s strategy remains focused on offering solu-
tions designed with individual needs in mind to
build a bespoke bank and a financial-value-creating
companion for our targeted customer base. The Bank
recognizes the opportunities still available in the
Retail and SME sectors amid the push for a compre-
hensive financial inclusion model. As a result, CIB
will continue to develop digital capabilities with a
focus on value-proposition and a program-based
pricing approach to re-energize the SME, affluent,
and mass segments and provide a seamless service
model through digital means. The Bank also realizes
the potential in the non-resident Egyptians (NRE)
segment, in line with the government’s efforts to
support Egyptians abroad. CIB aspires to become
the core bank for NREs by providing a fully remote
service and coverage model.
Digital Transformation
CIB focuses on creating innovative solutions, new
digital channels, and a distinct customer journey
that ensures a unique digital value proposition.
Ultimately, the success of CIB’s digital transformation
efforts comes from putting customers’ needs first,
service development, and innovation across the
Bank. The Global Transactional and Digital Banking
division advocates for the customer during all process
redesigns, digital upgrades, and enhancements,
understanding customer needs to improve the
experience. The Group is dedicated to developing and
promoting its digital banking channels for individuals
and corporates, prioritizing those channels while
transforming customers’ behavior to perceive the
physical branch as an alternative.
As a result of CIB’s persistent efforts to digitize
processes and increase reliance on digital platforms,
the majority of the Bank’s customer base uses
online banking, with 1.9 million internet banking
transactions worth EGP 81.4 billion, a 24%y-o-y hike.
The online banking customer base reached 1.5 million
users, up 15% y-o-y. Mobile banking transactions
came in even higher, up 17% y-o-y to 13.3 million
transactions worth EGP 348 billion, a 61% y-o-y hike.
Online Banking migration rates from total branch
transactions reached 98% for credit card settlements,
97% for internal transfers, and 88% for external
transfers, while cost synergy heavily increased by 30%
y-o-y to reach EGP 3.4 billion as of December 2023.
Shifting consumer behavior toward using the
various digital channels has helped the Bank and
its customers enhance the overall banking experi-
ence. CIB worked on adding new revenue streams
through Online Banking channels by offering CDs/
TDs booking requests as investment tools. This has
transformed online platforms into a highly effective
digital sales channel that now contributes 64% of the
Bank’s total annual bookings in terms of volume and
56% in terms of value. As a result, CIB has reduced
branch traffic, enhanced customer experience, and
increased the use of digital channels for their unique
experience and convenience. The average monthly
value of digital bookings in 2023 surpassed EGP 6
billion, boosting total CDs/TDs booking volume by
50% y-o-y and value to EGP 72 billion, a 162% y-o-y
hike, in FY2023. Additional account opening requests
through Online Banking channels recorded a 40%
y-o-y hike, representing 76% of the total additional
accounts opened during 2023, while loan and credit
card submissions doubled, generating extra leads.
Playing a vital role in alleviating branch traffic, CIB’s
ATM network grew to reach 1,339 ATMs. The network
handled over 79 million transactions, a 9% y-o-y hike,
worth EGP 196 billion, up 28% y-o-y. Average monthly
dispensed cash reached EGP 11 billion, while average
monthly deposits reached EGP 5.6 billion. The
migration ratio from branches to ATMs was 97%
for eligible cash deposit transactions and 99.1% for
withdrawal transactions, saving EGP 598 million.
Additional Drive-Thru machines were deployed in
select areas, enabling customers to access banking
services from the comfort of their cars. Furthermore,
a contactless service was launched over our ATM
network, marking a significant improvement in
customer experience and transaction efficiency.
Financial Inclusion and SMEs
In accordance with the government’s direction to
promote financial inclusion, CIB formulated a five-
year financial inclusion strategy to provide easier
access to financial services to the most vulnerable
segments of society by harnessing its digital acumen.
The Financial Inclusion division collaborates with
other lines of business to build on existing initia-
tives, while further developing the Bank’s strategy,
products, services, and programs. The targeted
underserved and unbanked priority segments were
identified using behavioral segmentation analysis
through insights derived from third-party market
research and behavioral and transactional analysis
of CIB’s existing lower-income customer base.
CIB has also made significant strides in the ever-
expanding instant payments domain. Bill payments
went live in 2023, adding to the array of services
offered. The impact of these initiatives is best reflected
in numbers. In FY2023, the instant payment network
witnessed extraordinary growth, with transaction
volume and value surging to 46 million and EGP
308 billion, respectively. Moreover, the number of
CIB customers utilizing IPN soared from 176,000 to
692,000, an astounding 293% increase, underlining
the Bank’s commitment to innovation and excellence.
Building on CIB’s continued support of the government’s
efforts to automate governmental payments, the Bank
maintains a solid partnership with E-Finance Company,
the Egyptian government’s financial processor. This
year, CIB maintained its leading position in the Egyptian
market in governmental e-payment transactions over
the Corporate Payment Services (CPS) platform, with a
29% market share, as a result of the implementation of
aggressive focus business groups for selling CPS prod-
ucts. CPS transactions increased 45% y-o-y in volume
to reach 239,000 and 37% y-o-y in value to reach EGP
43 billion. This is in addition to a 41% y-o-y increase
in customer base, 16% y-o-y increase in the transac-
tion migration rate to 66%, and 101% y-o-y increase in
synergies to EGP 37 million. A key objective for 2024 is
to ease the burden of governmental payments on CIB
branches by enrolling corporate customers to the CPS
platform. We also plan to add other payment types over
governmental platforms to ensure customer satisfac-
tion, increase our market share, and maintain our top
ranking in the market.
CIB’s Smart Wallet is instrumental in complementing
the digital transformation process with financial
inclusion. It was primarily developed to serve
unbanked customers by providing a convenient,
secure, and cost-effective way to make financial
transactions through mobile devices. It also helps
customers easily pay bills, recharge their mobile lines,
transfer money to other wallet holders in Egypt, and
deposit or withdraw funds from any ATM machine
or any of CIB’s authorized Banking Agent outlets.
The application also supports contactless payments
through QR code purchases. As of end of August 2023,
Smart Wallet users reached 1.06 million, with a 21%
activity rate for 30 days.
As the government pushes forward with efforts to
finance SMEs due to their strategic importance
in achieving economic growth, Retail Banking
successfully on-boarded and activated a wide
base of non-borrowing SME customers over the
past 10 years. This base serves as the core of the
SME lending strategy to cross-sell assets using the
different lending programs, leveraging a strong
referral mechanism. Over the past five years, Business
Banking grew its asset book by 56%, reaching EGP
8.6 billion in 2023. Operating profit came in at EGP
6.95 billion, while gross profit reached EGP 5.075
billion. On the payment solutions side, the division
processed EGP 82 billion in transactions. Business
Banking has built a well-established cash and trade
management business, growing the client base by 8%
y-o-y to more than 83,000 companies during the year.
The segment recorded EGP 60 billion in deposits,
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2023 • CIB Annual Report • 65
Strategic Direction • BOD Report
while trade rose to EGP 50.6 billion, growing 25%
and 11% y-o-y, respectively. Moreover, in line with the
Bank’s strategy to support SMEs and grow the SME
lending portfolio, CIB and the Dutch Entrepreneurial
Development Bank (FMO), signed a credit guarantee
agreement worth USD 50 million to guarantee loans
granted to Business Banking borrowing customers,
with a special focus on underserved segments that
include women and youth.
Business Banking also upgraded the SME contact
center as part of CIB’s strategy to digitize and offload
pressure from branches, while providing customers
with round-the-clock banking services by improving
alternative channels. The upgrade included Business
Banking products and digital services, technical
support, and payment acceptance services.
Geographical Expansion
Cementing its presence in Africa, CIB Kenya Limited
( formerly Mayfair-CIB) continued to serve as a gateway
to Africa for CIB and the Egyptian market, despite the
challenging market conditions that predominated the
year. Stemming from the prudent risk management
culture for which CIB is known, Management decided
in 3Q23 to take an accounting impairment on the Bank’s
Kenyan investment, derived by extreme variations in
the macroeconomic assumptions and business plans
that were made at the time of the acquisition in 2020.
Even with such a conservative approach, Management
remains confident that the underlying fundamentals of
the Kenyan investment remain valid. As such, measures
were taken to weather these economic variations, the
strategy was revamped, and key management personnel
were recalibrated to implement the new strategy. The
cornerstone of our East African expansion strategy, CIB
Kenya focuses on trade finance activities and digital
banking solutions, particularly growing the Egypt-Kenya
trade corridor, enabling large Egyptian corporates and
Egyptian SMEs to operate in the hub of Eastern Africa.
The bank’s niche market is large and medium‐sized
corporates and HNWIs.
In 2023, CIB Kenya reported a profit of KES 35.5
million, compared to KES 445 million in 2022. Net
interest income for the year 2023 closed at KES
775 million compared to KES 773 million recorded
in the same period of 2022, a 0.3% increase y-o-y.
Non-interest income recorded KES 139 million, a
62% y-o-y increase from KES 86 million in 2022.
Sustainable Banking
The Sustainable Finance division continued the
implementation and integration of its Sustainable
Finance Pillars across the Bank’s operations and
functions, after having built a solid foundation of
Governance, Policy, Framework Architecture, Systems,
and Strategy since 2021. In recognition of the role all
internal functions play in the success of mainstreaming
sustainable finance, we aimed to bring all internal
stakeholders together to ensure the seamless
implementation of ESG principals across CIB.
CIB witnessed business growth under its Green Bond
Program, the first-of-its-kind in Egypt, where portfolio
utilization increased to reach a total eligible loan
amount equivalent to USD 136 million. Moreover, the
Bank received FX funding from the IFC under a New
Green Facility amounting to USD 100 million for green
buildings, signed in June 2023 after a thorough due
diligence and negotiation process. Additionally, building
on its COP27 initiatives introduced in 2022, CIB was
present at various regional and global events this year,
advocating for the mainstreaming of climate finance
innovation, transition finance, the development of
region-specific taxonomies, and scaling de-carbonization
efforts. Through engagement with leading stakeholders,
the Bank is making progress on its ESG ambitions to
create value for investors, partners, clients, and the
community at large.
Human Development
As CIB continues to achieve substantial growth, the
Bank is more committed to developing its human
resource management to better support its people as
they are fundamentally responsible for our excellence.
The Human Resources (HR) division will continue to
engage in regular planning to address long-term stra-
tegic needs, adhering to our core values and guiding
principles. The department’s primary objectives are
to increase confidence in our operations, attract high-
caliber employees, and foster an engaging environment.
HR’s talent strategy centers on reinforcing the
commitment to attracting, developing, retaining,
and motivating highly qualified talents. Investing in
our employees remains of paramount importance,
as they are the cornerstone of the Bank’s success.
Thus, leveraging on the skills and experience already
available within the organization, CIB’s external acqui-
sitions position the Bank for long-term sustainable
CIB witnessed business
growth under its Green Bond
Program, where portfolio
utilization increased to reach
a total eligible loan amount
equivalent to USD 136 million.
performance. This year, CIB hired 1,517 employees,
encouraged the internal mobility of 924, and promoted
880 employees.
In alignment with the Bank’s efforts to advance
its digitization skillset, the HR team continued to
incorporate digitization in the training and learning
opportunities offered to employees through different
learning tools and platforms. This includes a wide
network of international digital platforms, such as
LinkedIn, Thomson Reuters, Udemy, ARC institute,
Harvard, Coursera, Wharton, and the IMF, as well
as cross-functional bundles internally developed
in conjunction with the business, including Trade
Finance School, Legal School, and Arabic Writing
videos. In 2023, 1,282 employees received training, and
7,000+ employees completed 15 bank-wide e-learning
modules. Additionally, in accordance with CIB’s
strategy to provide exceptional customer experience,
HR laid out the necessary developmental learning
tracks, made available with additional courses.
Employee mental, physical, and financial wellbeing
continued to be a priority in 2023, in an effort to boost
morale and create a positive work environment. The
division continued to provide a workplace counselling
service and conducted bank-wide webinars on mental
health topics to raise awareness across the organiza-
tion. HR also launched a one-on-one texting service for
mental health support. Focus was given to the impor-
tance of physical wellbeing through the Wellbeing
initiative, providing employees with resources and
workshops on a variety of wellness topics, including
nutrition, healthy sleep habits, ergonomics, stress
reduction, and exercise. HR is also in the process of
developing financial wellbeing initiatives to enable
employees to live a healthy financial life, empower
them to manage their finances, and reduce overall
financial stress.
2023 Financial Position
CIB Performance
FY 2023 saw CIB’s consolidated net income increase
by 84% y-o-y to EGP 29.6 billion. Standalone net
income reached EGP 28.8 billion, up 78% from
2022. Standalone revenues grew by 67% from the
previous year to reach EGP 54.6 billion. Consolidated
net interest income hit EGP 52.9 billion during the
year, up 71% y-o-y. The Bank was able to maintain
its operational efficiency in 2023, with the cost-to-
income ratio standing at 17.1% compared to 21.2% in
2022. Return on average equity (ROAE) recorded 39.7%
on a consolidated basis (post-profit appropriation)
compared to 25.1% in 2022. Consolidated return on
average assets (ROAA) stood at 4.06% (post-profit
appropriation) in 2023, compared to 2.86% in 2022.
As of year-end 2023, CIB booked a net interest margin
(NIM) of 7.55%, compared to 6.10% a year earlier.
The Bank’s gross loan portfolio stood at EGP 267.2
billion at year-end, growing 20% y-o-y from EGP 222.7
billion by year-end 2022. This increase met the Bank’s
strategic objectives in maintaining asset quality and
enhancing profitability. CIB’s market-share of total
loans amounted to 4.97% in August 2023. The Bank
pursued deposit growth in 2023, adding EGP 145.6
billion to its base, which grew to a total of EGP 677.2
billion over the year (an increase of 27% from 2022).
CIB’s share of the deposits market reached 6.81%
in August 2023. Loan-loss provision expense for
2023 amounted to EGP 4.27 billion, with loan-loss
provision balance reaching an unprecedented EGP
29.2 billion. This was not associated with any asset
quality deterioration — as evident by a solid NPLs of
the gross loan portfolio of 3.59%, down from 4.86% by
year-end 2022, cushioned by a solid 305% coverage
ratio — but rather a result of the Bank’s conservative
risk management strategy and management’s
decision to cautiously frontload adequate provisions
to mitigate any and all potential risks that might arise
from such a fluid year. The Bank remains comfortably
covered in terms of capital adequacy, with year-end
capital adequacy ratio (CAR) recording 26.2% (post-
profit appropriation) — well above the minimum
regulatory requirement. This year’s financial
66 • CIB Annual Report • 2023
2023 • CIB Annual Report • 67
Strategic Direction • BOD Report
results highlight CIB’s solid strategic direction, the
Board’s invaluable oversight, management’s strong
leadership capabilities, and concrete execution
across the Bank’s channels, including brick and
mortar operations, digital platforms, and the product
and support functions.
In exploring and pursuing all available avenues to
ensure a sustainable, comfortable capital base that
is less vulnerable to external factors, CIB secured
dollar term funding from international financial
institutions. In July, the Bank secured USD 250 million
in long-term loans from the IFC to support its capital
and fund green projects. The first loan is a 10-year
USD 150 million Tier II facility, out of which USD
90 million was used to refinance the outstanding
subordinated debt facility that was initially obtained
from the IFC in 2017. The remaining USD 60 million
will be utilized to provide capital to support CIB’s
sustainable growth plans. The Bank also secured a
USD 150 million subordinated Tier II loan from the
European Bank for Reconstruction and Development
(EBRD), with 10-year maturity, in November.
Appropriation of Income for FY2023
The Board of Directors proposed the distribution
of total cash dividends of EGP 1.66 billion to share-
holders this year, increasing its legal reserve by EGP
1.44 billion to EGP 6.21 billion, and its general reserve
by EGP 22.0 billion to EGP 61.8 billion. This reinforces
the Bank’s solid financial position, as evidenced by
its CAR of 26.2%. The proposed dividend distribution
falls in line with the Bank’s strategy of maintaining a
healthy capital structure to address more stringent
regulations, mitigate associated risks, and support
the Bank’s future growth plans.
The EGX Performance, Stock Performance, and
Equity Analysts’ Coverage
In a remarkable performance placing it as the
MENA region’s top performer in 2023, Egypt’s main
Exchange Index, the EGX 30, increased by 9,705
points or 66.48% since the beginning of the year, with
an opening position of 14,598.1 points, closing the
year at 24,894 points.
COMI’s performance was no different, surpassing
the EGX 30’s significant growth, with a 75.14% y-o-y
increase. COMI started the year at an opening price
of EGP 41.48 and maintained momentum until year
end, closing off the year at EGP 72.65. COMI’s VWAP
during the year was EGP 56.6, with an average daily
volume of 5.93 million shares and an average market
capitalization of EGP 170.5 billion. Moreover, its
average price-to-book ratio recorded 2.46, with a
peak of 3.28 recorded on 27 November at a closing
price of EGP 84.06, and a trough of 1.836 recorded
on 12 January at a closing price of EGP 41.7. In April
2023, a cash dividend was distributed amounting to
EGP 0.538/share.
CIB is widely covered by leading research houses
locally, regionally, and internationally; 13 institutions
issued research reports on the Bank during 2023, six
of which were local.
Investor Relations Activities in 2023
With the primary role of delivering CIB’s story to
the investment community at large, the Investor
Relations (IR) team has been maintaining an ongoing,
open, two-way communication channel between
investors, shareholders, and the Bank’s executive
management. Throughout 2023, the team attended
nine conferences, roadshows, and forums, and it
accommodated more than 100 meetings, including
more than 60 physical ones. It met with more than
200 companies, incorporating a wide range of inter-
national, regional, and local institutions.
2023 Business Activities
Institutional Banking
CIB’s Corporate Banking and Global Customer
Relations (GCR) Groups weathered the ongoing global
and local economic pressures, staying on course to
meet their operational and financial goals, achieve
positive balance sheet growth, and support their port-
folio companies to deliver strong results compared
to 2022.
Capitalizing on their long track record and expertise
in the local market, the Corporate Banking and GCR
Groups delivered strong performances during 2023,
recording exceptional results. They continued to
enhance cooperation and collaboration among the
Bank’s stakeholders to build the necessary founda-
tion that will shape our future, backed by a significant
boost in the new client portfolios, while strengthening
the share of wallet of the existing client base. As a
result, the loan portfolio reached EGP 176.4 billion
during FY2023, up from EGP 142.6 billion in FY2022.
Additionally, despite the aggressive and fast-paced
macroeconomic developments leading to a series of
downgrades in sovereign and bank ratings, the Group
was able to achieve substantial 23.7% and 196.9%
growth in loan portfolio and gross contribution after
tax, respectively. It recorded unprecedented results
while arranging and participating with other syndicate
banks in an EGP 20 billion securitization transaction.
Additionally, in alignment with Egypt’s Green
Economy Strategy and the 2030 Sustainable
Development Vision, the Groups co-financed the
Fayoum Wastewater Expansion Program with the
EBRD, the Egyptian government, the European
Union’s Neighbourhood Investment Facility (NIF),
and the European Investment Bank (EIB). The
project’s overarching goal is to provide 86% of rural
Fayoum with sanitation access, up from the current
32%. Moreover, under the directives of CIB’s Green
Bond and Sustaining Sectors Program and in line
with COP27 recommendations, the Real Estate and
Education teams were able to sketch the blueprints for
the two rebates under the EDGE certification program
worth around EGP 300 million, representing 2.8% of
the equivalent granted loan to the respective clients.
The Groups also extended a variety of environmental-
incentivized facilities and programs (e.g. Green Bonds
and the Egyptian Environmental Agency Authority
– Egyptian Pollution Abatement Program “EPAP III”)
to finance projects mainly operating in the fertilizers,
chemicals, textiles, plastics, and packaging sectors.
Meanwhile, CIB’s Direct Investment Group (DIG)
secured a healthy level of dividend income from
the existing investment portfolio. The division also
successfully concluded a 100% exit from four invest-
ments in the financial services, general services, and
security services industries, and it has generated
notable capital gains. DIG also actively solicited and
assessed 20 potential investment opportunities in
various attractive sectors in the Egyptian economy
throughout FY2023.
The Debt Capital Markets’ (DCM) Securitization and
Bonds Desk has placed CIB at the forefront of the fixed
income securities market, with the Bank being named
Best Securitization House by EMEA Finance in FY2022,
in addition to being awarded Best Securitization
Deal in Africa for its successful closure of the largest
securitization transaction in the history of Egypt’s
debt capital markets, amounting to EGP 20 billion
in FY2022. In FY2023, the team further cemented its
leading market position by advising and arranging
six securitization issuances worth EGP 25 billion,
capturing a massive market share of 75%. This is in
addition to mandated deals worth EGP 27.4 billion, of
which EGP 20 billion are expected by year-end.
Following a successful debut in 2021, CIB continued to
build its Green Bond portfolio, offering subscriptions
in full by the IFC, making it the first bank in Egypt to
tap such funding. The Bank also signed a new senior
debt agreement with the IFC amounting to USD 100
million for the purpose of green finance. This under-
scores CIB’s commitment to sustainable finance and
is a key milestone that will provide innovative and
comprehensive financing for our clients and their
projects. It will also help promote sustainable solu-
tions to combat climate change, such as renewable
energy, industrial energy efficiency, green buildings,
and resource efficiency. CIB also signed a new sub debt
with the IFC amounting to EGP 150 million.
In 2023, the Development Finance (DF) segment, which
serves 27,494 agri-business beneficiaries, approved
developmental agri-loans worth a total of EGP 1.02
billion, of which around EGP 800 million is under the
Agricultural Development Program (ADP) Sustainable
Green Finance initiative. The launch of the initiative,
in cooperation with the Ministry of Agriculture and
Land Reclamation, has proven successful, with 80%
of approved loan amounts coming under the initia-
tive. DF contributed to green funding under the EPAP
Project through financing water treatment projects
for textile factories, as well as solvent recovery units
that absorb gases released by printing inks and recycle
them in the production process.
Retail Banking
Retail Banking’s continued success in 2023 can
be attributed to the unwavering commitment to
enhancing the Consumer Banking experience. As
interconnectivity increases worldwide, we recognize
the significance of seamless, personalized interac-
tions for an exceptional banking experience. Our
commitment to enhancing our customers’ journeys
is reflected across every level of CIB’s operations.
From innovative product offerings to tailored finan-
cial solutions, we strive to exceed expectations at
every touchpoint.
2023 was a transformative year for the Consumer
Banking division, marked by significant strides in
68 • CIB Annual Report • 2023
2023 • CIB Annual Report • 69
Strategic Direction • BOD Report
Internet banking underwent
an extended stability plan,
resulting in the release of an
updated version.
elevating our services to unprecedented levels. We
continued to invest in our front-liners and relationship
managers through comprehensive training programs
through the Retail Banking Academy’s inclusive
program. This has streamlined the integration process
and ensured that the segments and front-liners are
equipped with the latest knowledge to provide our
customers with exceptional service. We also empha-
sized the redirection of our Payroll customers from
branches toward alternative channels, ensuring a
seamless and secure banking experience.
Despite the year’s challenging macroeconomic envi-
ronment and rising interest rates, consumer assets
witnessed a slight growth in the personal loans port-
folio, reaching EGP 41.4 billion by year-end. The team
managed to overcome these challenges by providing
tools to enhance sales levels, such as continuing to
extend payroll loans, relying on application and
behavior scores as test programs to identify high-
quality customers.
proposition of our existing credit cards. On the debit
card side, retail spending increased by 48% y-o-y
(EGP 56.77 billion as of December 2023 compared to
EGP 38.34 billion as of December 2022). The strategy
with debit cards was to shift cardholders’ behavior,
converting cash only users to use Points of Sale
(POS) instead of ATMs. Debit card spend reached
30% of total debit card spending, with annual gross
contribution of EGP 401.6 million. Moreover, a new
service was launched that enables CIB credit, debit,
and prepaid cardholders to deposit via other partici-
pant Egyptian banks’ ATMs, as well as depositing
and withdrawing cash from any participant payment
service providers’ POSs, such as Fawry Plus.
2023 Operational highlights
Operations and IT
The COO area built a strong, cohesive environment
between all COO area stakeholders, creating the
necessary digital transformation strategy enabled by
technological advancement, thereby enhancing prod-
ucts and services and achieving overall operational
excellence. Operations continued to accommodate
business growth, not only by supporting the digital
transformation journey but also improving the effi-
ciency and productivity of front office and back-end
operations. IT is progressing with the implementation
of a full-fledged stability program aimed to support
overall business growth, beginning with the increase
in the number of customers. This has necessitated the
enhancement of system monitoring and implementing
an ongoing stability program across critical systems.
Following the public sector issuance of high-yielding
CDs, CIB issued a new CD with a monthly yield of 22%,
requiring a minimum subscription of EGP 3 million.
Reflecting increased consumer confidence in our
services, liabilities witnessed a remarkable surge in
LCY household deposits, recording EGP 253.9 billion
as of December 2023. This marks a 41.9% increase
compared to the EGP 178.9 billion recorded last year.
Building on the increased consumer confidence, card
acquisitions reached record levels, balancing build-
up and a hike in spend levels. Monthly acquisition
run rates increased by 14%, and ENR crossed EGP 10
billion, representing a year-on-year increase of 36%.
This growth was mainly driven by the expansion of
our credit card suite and the elevation of the value
Orchestrating the digital strategy with both our
technology and operations activities has required
aligning all initiatives to cohesively drive transfor-
mation. The banking sector is continuously driven
by digital transformation. CIB’s successful digital
transformation is driven by its ability to reimagine
its approach across the business, shape the tech-
nology landscape, and innovate an operating model
that led to exceptional business achievements while
diligently working on lower cost-to-income ratios,
increased customer acquisition and retention rates,
and a faster time-to-market.
CIB has always strived to be the employer of choice,
recognizing that its greatest asset is its people. This
year, the COO area continued to foster communica-
tion and collaboration between all departments and
business lines, allowing for better engagement and
productivity. CIB recognizes the significance of devel-
oping and empowering employees to keep up with
the rapidly changing business landscape, which can
be achieved through ongoing training and exposure
to enhance employees’ capacity and skillset.
In alignment with CIB’s digital strategy, the IT team
continued to expand its digital journey. This is
achieved by facilitating innovative financial solu-
tions, continuously enhancing customer centricity,
and providing seamless financial solutions through
focusing on the enhanced stability of systems and
applications, further increasing customer satis-
faction. With a growing customer database and
increased transactions, IT underwent a stability
program that targets critical systems and digital
application stability. The primary focus was to
enhance functions, such as core banking and
customer-centric applications.
On the customer front, internet banking underwent
an extended stability plan that led to restructuring
activities, resulting in the release of an updated
version. Additional features were applied to bill
payments and loan origination forms that provide
a more stable performance and high availability,
enhancing the customer experience.
Security and Resilience Management
With the ever-evolving complex environment in which
we operate, security and resilience have always been
key areas of focus for CIB to maintain its leading posi-
tion in the financial sector. The Bank is committed to
protecting its customers, employees, assets, and reputa-
tion from a wide range of threats, such as cyberattacks,
and different types of disruptive events. Various invest-
ments have been made to ensure the robustness of our
systems, processes, and capabilities to prevent, detect,
and respond to these threats. This enables us to ensure
the continuity of our operations and services, as well
as our compliance with relevant regulations, industry
standards, and best practices.
Further improvements to our employee and customer
awareness program were made during 2023 through
various internal and external channels to deliver key
awareness messages. This allowed us to foster a sense
of security within the Bank and for our customers by
using our digital and online channels. An additional
layer of protection for our mobile applications against
malicious attacks, tampering, and reverse engineering
was introduced this year, helping secure customers’
data and transactions, as well as our trusted brand
reputation. Moreover, we revamped the core tech-
nology of our Security Operations Center to introduce
more advanced capabilities to enhance our moni-
toring and visibility, as well as improve our efficiency
and effectiveness in detecting and responding to
cybersecurity incidents. Additionally, 2023 witnessed
the expansion of our Business Continuity testing and
exercising scope by introducing new testing scenarios
and activities to validate the viability of our BCM plans
and the reliability of our capabilities to ensure effective
response in case of any disruption.
Awards and Recognition in 2023
During 2023, CIB received international and regional
recognition across different functional areas and
business lines, which serves as valuable endorse-
ments to CIB’s continued commitment to delivering
excellence in all facets of its business and to its
leadership position as a preferred financial services
provider in the markets of Egypt and Africa, while
also ensuring the highest standards of governance
and accountability to all its stakeholders.
Global Finance:
Best Private Bank
Best Supply Chain Finance Bank in Africa 2023
Best Trade Finance provider (Egypt)
Best Bank for Cash management (Egypt)
Transaction Banking Award
Best Bank in Egypt 2023
Euromoney:
Best Bank in Egypt
Best Bank for SMEs in Egypt
Best Bank for ESG in Egypt
Best Service for Cash Management
EMEA Finance:
Best M&A Deal in MENA
Best Securitization House in Africa
Best Securitization Deal in Africa
Best Payment Services in Africa
Best Payment Services in North Africa
Best Cash Management Services in North Africa
Best Trade Finance Services in North Africa
The Banker:
Bank of the Year
70 • CIB Annual Report • 2023
2023 • CIB Annual Report • 71
Strategic Direction • BOD Report
Environmental, Social, and Governance
(ESG)
Environment and Climate Change
CIB is a firm believer in the power of global
collaboration, dialogue exchange, and stake-
holder engagement to bring forth major change
and reforms, particularly in the face of climate
challenges that are anticipated to impact the
region. Accordingly, the Bank continued to
maintain its presence across various global and
regional events, recognizing the role of dialogue in
furthering wider sustainability driven ambitions.
During 2023 and building on its COP27 initia-
tives introduced the year prior, CIB was present
at various regional and global events advocating
for the mainstreaming of climate finance inno-
vation, transition finance, the development of
region-specific taxonomies and scaling decarbon-
ization efforts. Through engagement with leading
stakeholders, the Bank is able to further its ESG
ambitions to create value for investors, partners,
clients, and the community at large.
Following the success of CIB’s Green Bond Program,
the Bank increased its efforts to provide convenient
technical and financial services to face complex
environmental challenges for carbon-intensive
industries, thereby promoting decarbonization
practices. CIB’s sustainable finance offerings include
Energy Efficiency, Renewable Energy, Green Cities
and Buildings, Waste and Water Management,
Non-energy GHG, Water Desalination, Energy
Management Systems, Building Retrofit, Pollution
Prevention and Control, Sustainable Agriculture,
Tourism and Transport.
This year, the Bank implemented several steps
to address its climate risk approaches, including
covering TCFD gap analysis, adaptive capacity
assessment, portfolio scans for physical and
transition risks, scenario planning, stress testing
narratives, and the development of a work plan for
climate strategy. It also conducted multiple train-
ings to support efficient climate risk management.
CIB has a robust Environmental and Social Risk
Management System (ESRMS) in place, which is
endorsed by DFIs. The Bank upgraded its ESRMS
to align with local and global standards. Moreover,
CIB has been entitled to foreign concessional
priced funds and/or de-risking facilities based
on the presence of a robust Sustainable Finance
System that led to the successful promotion of
ESG due diligence and internal synergies between
relevant departments.
Society and Development
Diversity and Inclusion
CIB’s commitment extends beyond financial success;
we are dedicated to fostering an environment that
supports individuals to reach their full potential.
We proudly integrate and embrace ESG practices
into our journey. Our commitment also extends to
promoting equality, inclusion, and diversity. We are
keen on providing equal opportunities and treating
all employees with dignity and respect. These prin-
ciples facilitate the attraction and retention of a
diverse workforce, creating an inclusive workplace
where every individual feels valued.
After conducting thorough analysis to identify areas
with low female representation, HR launched the
fourth round of the Helmek Yehemena program that
aims to promote female empowerment in the work-
place in those areas, mainly in the branch network.
The program aims to encourage young female talents
in the Upper Egypt and Delta regions to join the
workforce. It supports women through short training
programs to enable them to discover and expand their
untapped potential and equip them with the necessary
knowledge and skills to become members of CIB.
To help mothers in their transition back to work after
maternity or unpaid leave, the She is Back program
keeps its female employees informed of any external
or internal changes that affect both the Bank and their
own respective roles during their absence. In 2023, one
round was organized for more than 25 women.
In 2023, the HR team participated in the Carerha
summit, the first women’s career summit in the
MENA region promoting work-life balance and
fostering diversity and inclusion in the workplace.
The summit centers on the idea that every woman
deserves the opportunity to achieve her professional
goals, regardless of circumstances. It allowed CIB
to emphasize its commitment toward promoting a
more inclusive workplace by sharing a wide range
of job opportunities and hosting several activities,
including a panel discussion on Women Shaping the
Future of Data Science.
72 • CIB Annual Report • 2023
2023 • CIB Annual Report • 73
CIB is a firm believer in the power of GLOBAL COLLABORATION, DIALOGUE EXCHANGE, AND STAKEHOLDER ENGAGEMENT to bring forth major change and reforms, particularly in the face of climate challenges that are anticipated to impact the region. Strategic Direction • BOD Report
Differently abled candidates hired
91
In 2023, we continued to reinforce our commitment to
cultivating and preserving an inclusive workforce by
facilitating employment opportunities for differently
abled individuals. This initiative, which commenced
in 2020, and the Ader B Ekhtelaf initiative, which
was introduced in 2022, both aim to provide job and
development opportunities for differently abled indi-
viduals across CIB’s branches and departments. HR
successfully continued the hiring process, reaching a
total of 91 differently abled candidates, out of which
19% were women since the start of the program.
Corporate Social Responsibility
During 2023, CIB continued to be part of govern-
ment initiatives across Egypt, such as Hayah Karima,
International Women’s Month, International Youth
Day, Farmers’ Day, and Saving Day through the Smart
Wallet program.
In its continuous efforts to support entrepreneur-
ship in Egypt, the Bank has placed significant focus
on the fintech space, with the aim of bridging the
gap between the financial services sector and the
emerging entrepreneurial ecosystem. CIB helps
support new start-ups through the largest televi-
sion competition in the Arab world, El Forsa, hosted
by Egyptian TV presenter Lamis El Hadidy. The
program targets entrepreneurs who own start-ups
that provide unprecedented, innovative solutions
with high potential for local and global growth.
As part of the partnership started in June 2021 to
improve access to care and meet the demand for
cardiac care in Egypt, CIB continued funding the Adult
Outpatient Department at the Magdi Yacoub Global
Heart Centre. The Magdi Yacoub Heart Foundation
took the decision to develop the Magdi Yacoub Global
Heart Centre in Cairo to continue and build on the
Aswan Heart Centre’s legacy of excellence, while
tripling the scale of operations and capacity, which
will increase reach to help those most in need.
CIB also continued supporting community projects,
with a special partnership with Al Moassat Hospital
Patient Care Association for the care of patients
undergoing bone marrow transplants.
CIB Foundation
The CIB Foundation is committed to supporting
children of underprivileged families by extending
quality healthcare to those unable to access them.
Its efforts include not only donations but also the
monitoring of projects’ impact. In addition to the
direct donations made to its fundraising account,
the Bank supports the CIB Foundation with 1.5% of
its annual net profit, aiming to actualize its goals
of alleviating the burdens of families in need. The
CIB Foundation works with private, public, and
non-governmental healthcare providers that offer
free-of-charge services, therefore widening commu-
nity reach and maximizing the value of its efforts by
achieving positive and sustainable results.
2023 Newly Approved Projects
• Our Differences…Our Strength
EGP 2.5 million to outfit the sensory, psycho-
motor, and occupational therapy rooms at the
National Foundation for Family and Community
Development’s specialized center in Masr
El-Adema.
• Their Care…Our Responsibility
EGP 7 million to fund the annual operating
costs of the Ain Shams University Hospital’s
pediatric congenital heart defect unit, pediatric
heart surgical unit, children hospital’s pediatric
surgical unit, and the women and obstetrics
hospital’s neonatal unit.
• The Dream of the South
EGP 33.12 million to Aswan University Hospital’s
pediatric neurological center of excellence for
surgical devices and equipment, ward capacity
expansion, and the establishment of a simulation
training center for junior doctors.
• One Heart
EGP 24 million to cover 160 pediatric open-
heart surgeries and 40 catheterizations at Al
Nas Hospital, managed by Al Joud Foundation.
• Super Smile
EGP 3 million in collaboration with Rotary
District 2451 to fund 100 cleft lip and cleft palate
surgeries to be performed in Ganoub El Wadi
Hospital, Ain Shams University Hospital, and
one private children’s hospital.
• Strong Heart…Stronger Future
EGP 20 million for the Magdi Yacoub Foundation
to purchase 100 catheterization lab consum-
ables and fund 100 open-heart surgeries to be
performed at the Aswan Heart Center (AHC).
An additional EGP 5 million to develop a detailed
protocol for Retinopathy of Prematurity (ROP)
care that defines criteria for screening, treat-
ment, and follow-up services for premature
babies who are at risk of developing ROP, in
collaboration with the Ministry of Health,
national universities, and other health entities.
• L’MISR Initiative
• Our Kids…Our Future
Dedicated to supporting children’s physical and
mental health, nurturing them into becoming
productive members of society, in line with the
Presidential Hayah Karima initiative.
- A Warmer Winter
EGP 23.76 million for the Egyptian Clothing
Bank to manufacture and distribute 120,000
winter training suits.
EGP 12 million to fund a project in partnership
with the Ibrahim A. Badran Foundation to supply
48 convoys in underprivileged areas in Beni Suef,
led by a team of qualified doctors, to offer examina-
tion and treatment services in schools and health
centers, as well as sustain the services provided
at fixed clinics in Fayoum, Aswan, and Beni Suef.
• Gift of Life
• 57357 Fighters
EGP 4 million annually for a duration of five years
(2024–2028) to cover the costs of treatment for
approximately 500 children a year.
EGP 7.5 million to fund the fourth round of
100 open-heart surgeries to be performed in El
Kasr El Eini Hospital, in collaboration with the
hospital and the Rotary Club Giza Metropolitan.
• Treatment of Children with Cancer – Ayady
• Kids on Wheels
El-Mostakbal Hospital
EGP 10.8 million to fund the treatment of under-
privileged pediatric cancer patients in collaboration
with Ayady 4040 Association, with plans to cover
the costs of radiation therapy for 670 children in
Ayady El-Mostakbal Hospital in Alexandria.
• Faculty of Dentistry Cairo University –
Maxillofacial Unit
EGP 200,000 in collaboration with The Faculty
of Dentistry Cairo University and Rotary Club of
Zamalek, to provide free of charge surgical and
dental services for approximately 14,000 children
annually suffering from maxillofacial conditions.
• Step by Step
EGP 4.7 million to fund a project in collaboration
with the Hand in Hand Foundation to provide
prosthetics and physical rehabilitation to 400
underprivileged children.
• A Journey of Healing
EGP 25. 30 million, in collaboration with Shifaa
Al-Orman Hospital in Luxor, to equip the
emergency department with the latest and most
efficient devices and medical equipment and
cover the cost of purchasing cancer medication
for four months.
• To a Brighter World
EGP 10 million for the Maghrabi Foundation to
offer free surgical procedures to 1,000 children
in need at the Maghrabi Eye Hospital in Cairo.
EGP 10 million to fund the purchase of 100
customized wheelchairs and 100 electric wheel-
chairs for severe cases, such as quadriplegics,
muscular dystrophy patients, cerebral palsy
patients, and others by Al Hassan Foundation.
Ongoing Projects from Previous Years
• Strong Heart…Stronger Future
Increased the budget dedicated to the Magdi
Yacoub Heart Foundation’s New Global Heart
Center in Cairo from EGP 35 million to EGP
43.75 million. The project is set to be completed
over the course of three years and covers the
establishment of a pediatric catheterization lab.
• A Journey of Hope
EGP 18.38 million to the Nile of Hope Foundation
to fund 65 pediatric open-heart surgeries and
129 catheterizations to be performed at the Nile
of Hope Hospital, in addition to purchasing a
Heart-Lung Machine (HLM).
• L’MISR Initiative
- Sonaa El Kheir Foundation
EGP 19.2 million to fund another round with
the Sonaa El Kheir Foundation to enable
medical convoys providing comprehensive
medical services to reach poverty-stricken
areas in Beni Suef and El Behira governorates
to serve 95,000 children across 88 elementary
and middle schools.
74 • CIB Annual Report • 2023
2023 • CIB Annual Report • 75
Strategic Direction • BOD Report
- Healthy Children
• Together We Can
EGP 15 million to fund the second round of
the Healthy Children project in collabora-
tion with the Raie Masr Foundation for
Development to purchase and outfit three
Mobile Clinics (vehicles) and cover the
operating costs of 900 medical convoys for
children in schools and health centers.
• Their Care…Our Responsibility
EGP 6 million in partnership with the Yahiya
Arafa Children’s Charity Foundation to fund the
annual operating costs of Ain Shams University
Hospital’s four pediatric units.
• Our Differences…Our Strength
EGP 1 million to outfit the sensory, psychomotor,
and occupational therapy rooms in the Asmarat
Center, supervised by the National Foundation
for Family and Community Development.
• One Heart
EGP 24.36 million to equip Al Nas Hospital’s NICU
and PICU with new, state-of-art equipment.
• 57357 Fighters
EGP 30 million to cover the costs of 5,000 chil-
dren’s treatment.
EGP 30 million to establish the Digital Pathology
Lab at the hospital.
A final tranche of EGP 4 million as part of the
five-year contract (2019–2023) was disbursed
to the 57357 Hospital at the beginning of 2023 to
support the hospital’s essential services.
• Rehabilitation Center for Children with
Cerebral Palsy and Muscular Dystrophy
EGP 54 million to establish the first Rehabilitation
Center for Children with Cerebral Palsy and
Muscular Dystrophy in the region, in line with
the presidential initiative.
• Supporting Health Interventions for Refugee
Children in Egypt
EGP 3.1 million to treat 240 refugee children in
Egypt, in collaboration with the United Nations
High Commissioner for Refugees (UNHCR).
• For a Better Childhood
EGP 1.91 million to fund 50% of the annual oper-
ating costs of the PICU and NICU of the Benha
University Hospital.
• A Step for Life
EGP 12.5 million in January 2021 to establish
a specialized center for psychological, physi-
ological, and social rehabilitation of children
with disabilities at Beni Suef University, in
collaboration with the Awad Charity Foundation.
EGP 1 million to support the treatment of
patients suffering from epidermolysis bullosa
(EB), a rare genetic skin disease caused by the
absence of VII collagen that attaches the skin’s
layers together.
• Superstars Are Born from Scars
EGP 39.02 million to fund the outfitting of Ahl
Masr Trauma and Burn Hospital’s pediatric floor
as part of its third collaboration with the Ahl
Masr Foundation.
• Spreading Hope
EGP 6.52 million for the Beit Yehmeni program,
an initiative by the SFSD that provides
a comprehensive package of ser vices to
underprivileged families living in unsafe
environments with the aim of improving their
living conditions, in collaboration with the
Sawiris Foundation for Social Development.
• The Pediatric Surgery Hospital – Part of Ain
Shams University Integrated Medical City
EGP 100 million to sponsor the surgical wing in
the hospital, which equips 10 surgical theaters
with the capsule system. The fund will cover
medical and non-medical furniture in the 10
theaters.
The Foundation will also support the new pedi-
atric surgery hospital project.
• Little Smiles
EGP 4.8 million to fund the establishment of a
General Anesthesia Unit in Beni Suef University’s
Faculty of Dentistry.
• Children Without Risk
EGP 7.5 million in collaboration with the Garden
City Cosmopolitan Lions Club to establish a fully
equipped open-heart surgery room for children
in the Mabara El Maadi Hospital.
• Bridge of Knowledge
GBP 880,000 to fund a five-year education and
training program for 150 staff members of the
Ain Shams clinical team, in partnership with
the Great Ormond Street Hospital for Children
(GOSH) in London.
• Heal a Child…Change the World
EGP 2.15 million to support the annual operating
costs of two residence facility shelters in 6th of
October and Imbaba, operated and supervised by
Abnaa Al Ghad Foundation “Banati,” serving home-
less children and children deprived of family care.
• A Vision to the Future
EGP 1.31 million to fund the purchase of a 3D
Visualization System at Alexandria University
Hospital, in addition to the previously funded
Ophthalmology Operation Microscope.
Gift of Life
EGP 4.5 million to fund 90 open-heart surgeries for
underprivileged children, to be performed at El Kasr
El Eini Hospital, in collaboration with Rotary Club of
Giza Metropolitan.
Supporting Squash
In 2023, CIB extended its support of squash to
capitalize on the traction its players are attracting
globally. We believe that through supporting
these talents, more opportunities are generated
for Egypt’s athletic community, boosting Egypt’s
ranking in the global arena. Egyptian squash
players have dominated the sport both in the
men and women categories, as well as individual
and team competitions. Egypt has produced five
number one rankings in the men’s division and
three in the women’s division in global competi-
tions. As of October 2023, four Egyptian men
and three Egyptian women have made it to their
respective world’s top 10 players list.
CIB has tailored special sponsorships to help talented
players maintain their rankings and continue
representing the country around the world. As of
December 2023, 15 players were recipients of the
sponsorships.
Governance
CIB’s Corporate Governance plays a vital role in
ensuring that the Bank operates responsibly and
in compliance with regulations. In order to evolve
with the ever-changing market landscape, the
Corporate Governance Group proactively moni-
tors industry trends and adapts to new challenges,
regulations, and best practices. CIB has consis-
tently demonstrated unwavering commitment to
vigorous governance practices in recognition of
their significance, enabling the Bank to establish
a solid foundation for responsible and successful
operations in the financial industry, thus reas-
suring stakeholders that CIB’s management acts
in their best interests.
The Bank has developed and implemented a robust
corporate governance framework that outlines
the Bank’s governance principles, policies, and
procedures. This framework provides a clear
roadmap for decision-making and accountability
throughout the Bank. It ensures that governance
practices are consistently applied across all levels
of the Bank, promoting transparency and integrity.
This commitment to maintaining a strong control
environment underscores the Bank’s dedication to
promoting sound governance practices.
Providing a clear roadmap for decision-making
and accountability throughout the Bank, CIB has
developed and implemented a robust corporate
governance framework that outlines the Bank’s
governance principles, policies, and procedures. It
ensures that governance practices are consistently
applied across all levels of the Bank, promoting
transparency and integrity. This commitment to
maintaining a strong control environment under-
scores the Bank’s dedication to promoting sound
governance practices.
Board of Directors
The Board aims to promote CIB’s long-term
success, deliver profitable and sustainable value to
shareholders, and promote a culture of integrity, trans-
parency, trust, and respect among its stakeholders.
CIB Board members act on a fully informed basis, in
good faith, with due diligence and care, and in the
best interest of the Bank and the shareholders. The
majority of the Board is comprised of independent
non-executive directors. Led by its non-executive
Chairperson, the Board is primarily responsible
for providing oversight of senior management with
respect to strategic planning, financial and accounting
matters, risk management, human resources, and
other internal policies. It ensures the effectiveness
of the Bank’s internal control systems, manages risk,
and secures CIB’s institutional reputation and long-
term sustainability. The Board ensures that the Bank’s
purpose, values, strategy, and culture are all aligned,
and reviews management performance in that regard.
The Board is cognizant of its role in creating sustainable,
long-term value for shareholders and stakeholders. It
is committed to achieving high standards of gover-
nance designed to protect the long-term interests of all
stakeholders, while promoting the highest standards
of integrity, transparency, and accountability. The
Board ensures the Bank’s accounts and financial state-
ments are fair, balanced, understandable, and provide
necessary information for shareholders to assess CIB’s
76 • CIB Annual Report • 2023
2023 • CIB Annual Report • 77
Strategic Direction • BOD Report
down in March 2020 as he concluded his term of
service on the Board.
Board Committees
Backed by an experienced executive management
team, CIB’s highly qualified Board of Directors is
also supported by specialized board committees.
CIB’s Board has six standing committees that assist
in fulfilling its responsibilities. Each committee
operates under a written charter that sets out its
responsibilities and composition requirements and
reports to the Board on a regular basis. Committees
are chaired by the NEDs, who brief the Board on
major points raised by their respective committees.
Separate committees may be set up by the Board to
consider specific issues when the need arises.
To sum it up, despite the challenges faced throughout
the year, which are expected to persist, we remain
optimistic that the outlook is bright. The govern-
ment’s ongoing efforts continue to bear fruit, boding
well for the economy. With these positive indicators
and CIB’s demonstrated resilience and strength, we
look forward to a bright and prosperous future for
Egypt as a whole, and for the Bank.
position, performance, business model, and strategy.
The Board’s structure complies with prevailing local
regulations and international best practices, allowing
it to maintain its leading market position. The respec-
tive roles of the Chairperson and the CEO, which are
separate, are set out in writing and have been agreed
upon by the Board. An inclusive culture that recog-
nizes the importance of gender, social, and ethnic
diversity is the main driver of the Board’s strength.
Female representation on CIB’s Board is at 18% and
independent NEDs at 54%, according to the latest
Board structure.
Changes to the Board of Directors During 2023
CIB’s General Assembly Meeting was held on 20
March 2023, during which the Board of Directors
was elected and appointed for a new term of three
years, commencing 2023. On 19 August 2023, Mr.
Jawaid Mirza joined CIB’s Board of Directors as a
non-executive board member.
Mr. Mirza is the founder and Chief Executive
Officer of Focal One for Consultancy in Canada.
He is a strong proponent and practitioner of
international corporate governance practices
and brings with him over 35 years of diversified
experience and a solid track record in all facets
of Executive Leadership, Corporate Governance,
Business Reengineering, Change Management, IT
Management and Governance, Risk Management,
Performance Management, Process Improvement,
Financial Analysis, Assets under Administration,
International Banking, Auditing, and Global Client
Management. Mr. Mirza worked at a number of
prominent international institutions, including ABN
AMRO Bank, where he held several high-ranking
positions in a number of regions around the world,
including Central and Eastern Europe, Central Asia,
and the Middle East and Africa. He also assumed
the duties of Executive Vice President and Chief
Financial Officer for the Asia region. Mr. Mirza previ-
ously joined CIB in 2008 as Chief Operating Officer,
and in 2010 worked as consultant to CIB’s Board. He
joined CIB’s Board of Directors as Non-Executive
Independent Member in January 2014 and became
the Lead Director in July 2019. Mr. Mirza stepped
78 • CIB Annual Report • 2023
2023 • CIB Annual Report • 79
Backed by an experienced executive management team, CIB’s HIGHLY QUALIFIED BOARD OF DIRECTORS is also supported by specialized board committees.
03•
Our
Businesses
2023 Corporate Banking and GCR
loan portfolio.
176.4EGP/BN
80 • CIB Annual Report • 2023
2022 - CIB Annual Report
2022 - CIB Annual Report
81
81
CIB’s lines of business are backed by a team of highly experienced bankers and the help of a strong credit culture across the Bank’s core and support functions. Our Businesses
Institutional Banking
Corporate Banking and Global Customer
Relations (GCR) Groups
Despite the diminishing impact of the pandemic, a
favorable deal with the IMF, increased revenues from
the Suez Canal, and a rebound in tourism, the year
encountered multiple challenges. Factors including
the Russian-Ukrainian conflict, unrest in the Middle
East, a global rise in inflation rates, and continued
federal reserve interest rate hikes exerted pressure on
businesses. Egypt has continued to focus on gener-
ating foreign currency inflows by attracting FDIs
through asset sales, implementing structural reforms,
and reducing the import bill to ease foreign currency
demand. Egypt is expected to continue recording posi-
tive GDP growth of 3.35% in FY2024, an encouraging
indicator in such a turbulent global environment.
Navigating through these turbulent global political
and macroeconomic landscapes, CIB’s Institutional
Banking teams successfully weathered the pressures,
seizing emerging opportunities for high NIM growth
while maintaining a high-quality portfolio. Despite the
adversity, CIB stayed on course to meet operational
and financial goals, achieving successful balance
sheet growth and delivering robust results compared
to the preceding year. The Bank remained steadfast in
its strategy to support the nation’s development and
commitment to clients and key strategic industries,
expanding its client base to contribute positively to
Egypt’s broader economic landscape. CIB grew its
local currency portfolio, attracted foreign currency
deposits, and ensured a balance between liquidity and
profitability. Moreover, the Bank leveraged its robust
liquidity to exceed the CBE-set target in supporting
SMEs, showcasing resilience and adaptability in the
face of challenging global economic conditions.
2023 Highlights
Capitalizing on our extensive track record and exper-
tise in the local market, CIB’s Corporate Banking
and GCR Groups delivered a robust performance in
2023. The Groups achieved exceptional results while
fostering collaboration across the Bank’s stakeholders,
marked by a significant expansion in new clients’
portfolios and strengthening the share of the wallet
in the existing client base. These efforts saw the loan
portfolio grow to EGP 176.4 billion during FY2023,
up from EGP 142.6 billion in FY2022. Despite the
challenges posed by aggressive macroeconomic devel-
opments and subsequent downgrades in sovereign
and bank ratings, the Group realized a remarkable
growth of 23.7% and 169.9% in loan portfolio and gross
contribution after tax, respectively, closing 2023 with
record-high results.
In line with CIB’s commitment to innovation and
modernization, the Bank continues to prioritize digital
initiatives, recognizing their pivotal role in improving
the customer experience and operational efficiency.
Our vision remains focused on supply chain finance,
acknowledging its significance in fostering stronger
relationships with partners and clients. Despite a chal-
lenging economic landscape, the top-line performance
remained strong, driven by robust deposit growth and
a notable revival in corporate lending. The Group also
took steps to further strengthen CIB’s strategic objec-
tives by developing the lending portfolio, improving
financial performance indicators, and contributing
to financing green projects, particularly in education
and real estate, with a combined financing amount of
USD 0.66 million backed by CIB’s issuance of a green
bond in collaboration with the IFC.
In alignment with Egypt’s Green Economy Strategy
and Vision 2030, the Groups co-financed the Fayoum
Wastewater Expansion Program with the European
Bank for Reconstruction and Development (EBRD),
the Egyptian government, the European Union’s
Neighborhood Investment Facility (NIF), and the
European Investment Bank (EIB). The program aims to
significantly increase sanitation access in rural Fayoum
from the existing 32% to 86%. Additionally, under the
directive of CIB’s Green Bond and Sustaining Sectors
Program, and in line with COP27 recommendations,
the Real Estate and Education teams developed the
blueprints through two rebates under the EDGE
certification program, worth around EGP 300 million.
This represents 2.8% of the equivalent loan granted to
clients. The Groups also extended a variety of environ-
mental incentivization facilities and programs, such as
Green Bonds and the Egyptian Environmental Agency
Authority – Egyptian Pollution Abatement Program
“EPAP III”, to finance projects mainly operating in the
fertilizers, chemicals, textiles, plastics, and packaging
sectors.
Building on CIB’s historical ties with the New Urban
Communities Authority (NUCA), the Bank was
co-mandated to arrange the largest ever multi-issu-
ance program worth EGP 30 billion, of which CIB’s
share is EGP 10 billion. The issuance was backed by
a receivables portfolio originated by NUCA and capi-
talizes on CIB’s mandate of the largest securitization
transaction in 2022. Other projects include extending
a medium-term facility for the establishment of a fully
integrated healthcare facility on a 9,000 sqm land plot
in East Cairo. The facility is set to include 190 beds, 28
outpatient clinics, and seven operating rooms.
The year also saw CIB extend to the tourism sector for the
establishment of additional room capacity amid rising
tourist numbers. The funding is also directed toward the
renovation and refurbishment of various hotel complexes
in Greater Cairo and the Red Sea governorate, in line
with the CBE renovation initiative, as part of the Bank’s
efforts to promote Egypt’s strategy in targeting 30 million
tourists annually by 2028. CIB also played a vital role
by providing the needed finance to leading ICT players
through extending gross loans and contingent finance
ranging between EGP 5–5.7 billion.
In line with Egypt’s vision to become a logistical hub in the
area, CIB extended a medium-term loan of EGP 1.5 billion to
finance the establishment of a state-of-the-art warehousing
facility designed to meet the needs of companies in the
e-commerce, manufacturing, food and beverages, and tech-
nology fields.
CIB also established an Africa Business Desk in Egypt,
following the full acquisition of CIB Kenya, to estab-
lish and grow African-based business with prominent
Egyptian exporters in the textiles, consumer durables,
and construction sectors. This is in line with the
Group’s strategy to focus and support export business
to enhance foreign currency flows.
The GCC Representative Office, which became opera-
tional in January 2005 and is based in the UAE, serves
CIB’s interests in the GCC. The office supports busi-
ness growth in Corporate Banking, Consumer Business
Banking, Financial Institutions, Debt Capital Markets,
and CIB Kenya.
In 2023, the office was successfully able to:
• Market and materialize several new GCC inbound
investment opportunities for CIB. Referred trans-
actions amounted to USD 280 million and EGP 2.9
billion, and materialized transactions recorded
EGP 550 million and USD 5 million.
• Support hundreds of overseas Consumer Banking
retail clients in meeting their personal financial
needs and over 31 GCC Business Banking Groups
in conducting business with CIB.
• Support CIB Kenya in opening several new Retail
and Corporate Banking accounts, which contrib-
uted to the bank’s business growth.
• Cooperate with several internal stakeholders to
amend policies to facilitate the business of new
GCC corporate clients.
• Maintain sound GCC market coverage and formu-
late proper policies to safeguard CIB’s exposure.
2024 Forward-Looking Strategy
In the midst of a global rise in inflation and interest
rates, coupled with escalating geopolitical tensions,
2024 is poised to present significant challenges. During
2024, the Group will continue providing financial and
strategic support to its portfolio clients, capitalize on
sector-specific market expertise to effectively position
82 • CIB Annual Report • 2023
2023 • CIB Annual Report • 83
Our Businesses • Institutional Banking
corporate clients, safeguard interests, and navigate
future uncertainties.
In 2024, the Bank will continue growing its innovative
product offering and digital solutions for its clientele.
Embracing technological transformation, the Group is
fully digitizing the entire internal credit lending value
chain to achieve efficient and prudent turn-around
performance, meeting business needs while capturing
dynamic data analytics to ensure sustainable growth.
This is complemented by the continuous development
of corporate users’ online platforms, ensuring the
delivery of a seamless and satisfying banking experi-
ence, as well as the introduction of a diverse bundle of
attractive cash management solutions and implemen-
tation of the new trade transformation project, “CIB
Cash and Trade Online” services. This is in addition to
the ramp-up of the “Supply Chain Finance” platform
to optimize transactional banking channels.
Aligned with the increasing global focus on and
demand for responsible banking practices, the Group
is dedicated to integrating and promoting sustainable
financing. This involves granting a variety of environ-
mentally friendly facilities donor-funded programs
and technical assistance, guided by the Bank’s special-
ized in-house Sustainable Finance department. The
Group will further contribute by assimilating global
ESG standards and engaging in CIB’s program
“Sustaining Sectors” to create business opportunities,
mitigate risks in the corporate banking portfolio, and
assist clients pursuing growth through the adoption
of sectoral decarbonization pathways.
On a national level, CIB will continue supporting mega
projects and investments across key strategic sectors,
including export-oriented industries, energy, infra-
structure, tourism, food and beverages, education,
and healthcare. Despite the challenges faced in 2023,
CIB’s Corporate Banking and GCR Groups maintain an
optimistic view of Egyptian economic fundamentals.
The Group anticipates more visible and stable macro-
economic outlook in 2024. Consequently, the Bank
will strive to expand its loan book, contributing to a
robust national economic cycle while safeguarding
asset quality and preserving shareholders’ value.
bank affiliate in Kenya, the Group has successfully
accommodated and facilitated regional cross-border
business for local corporate exporters. Additionally,
it is noteworthy that CIB’s extensive global reach in
all regions — facilitated by Bank’s well-established
in-house Financial Institutions department and
equipped with a wide international network of
prominent correspondents — strongly supports the
cross-border business strategy.
Direct Investment Group (DIG)
CIB takes pride in offering a wide range of financial
services to its customers, including direct invest-
ment offerings. The Direct Investment Group (DIG)
acts as CIB’s investment arm by providing agile
financing solutions, such as direct equity financing
for customers through mergers and acquisitions, as
well as internal private equity advisory services. DIG’s
mandate is to ensure the maximization of returns by
effectively managing investments and the handling of
all aspects of the investment process.
2023 Highlights
Despite challenging local and global economic and
political conditions, DIG secured a healthy level of
dividend income from the existing investment port-
folio. Additionally, the division successfully concluded
a 100% exit from four investments in the following
industries: financial services, general services, and
security services, generating notable capital gains.
DIG also actively solicited and assessed 20 potential
investment opportunities in various attractive sectors
in Egypt throughout FY2023.
2024 Forward-Looking Strategy
DIG’s strategy is primarily focused on acquisitions in
attractive and defensive sectors, such as education,
healthcare, pharma, and industrial manufacturing,
which have shown significant potential for growth.
Our strategy is also geared toward investment expan-
sions, reaching a diversified investment portfolio
to secure yearly exits, generating steady streams of
dividends and visible profitability for the next three
to eight years.
As part of the ongoing bank-wide direction, DIG is also
prioritizing green investments that focus on:
• Companies or projects committed to the conserva-
Capitalizing on the Bank’s established presence
in Africa, particularly through CIB’s fully fledged
tion of natural resources;
• The production of an alternative energy source;
• The implementation of clean air and water proj-
ects; and
• The adoption of ESG standards or plans to expand
in green projects.
In accordance with the CBE guidelines related to the
SME share of the Bank’s portfolio, CIB is currently
assessing the expansion of its investment portfolio to
include investments in the SME sector.
Debt Capital Markets (DCM)
Despite the prevalent challenging environment, DCM
continued to deliver positive results and maintain its
leading position in the debt capital markets space.
This was made possible by its unmatched track
record and experience in advisory, underwriting,
structuring, and arranging large-ticket syndicated
loans and project finance, as well as securitization
and bonds.
2023 Highlights
Securitization and Bonds Issuances
DCM’s Securitization and Bonds Desk positions
CIB at the forefront of the Fixed Income Securities
market. The Bank won the Best Securitization House
award from EMEA Finance in 2022, as well as the Best
Securitization Deal in Africa for its successful closure
of the largest securitization transaction in the history
of Egypt’s debt capital markets, amounting to EGP 20
billion, that same year.
Throughout the year, the team further cemented its
leading market position in the market, having advised
and arranged six securitization issuances worth EGP 25
billion, capturing a significant 75% market share. This is
in addition to mandated deals worth EGP 27.4 billion,
of which EGP 20 billion were realized.
The team also closed a series of Sustainability Linked
Bonds in the form of Social Securitization, pending
FRA approval. Said issuances are aimed to benefit a
large segment of underserved individuals in impov-
erished areas, in addition to empowering women,
bolstering CIB’s financial inclusion efforts.
Project Finance and Syndications
With a transaction pipeline worth EGP 47.7 billion
across several sectors between 2023 and 2024, DCM
worked in conjunction with other departments and
clients in 2023:
• Projects with Corporate Banking and GCR
Groups: Closing six transactions in the secondary
market in the power and petroleum sectors,
bringing CIB’s loan portfolio up by EGP 4.9 billion.
• Private and public sector customers:
Restructuring and re-engineering balance sheets
to overcome challenges arising from prevailing
economic conditions. We effectively restructured
four transactions, with four more expected to
materialize during the last quarter of FY2023 and
the first quarter of FY2024.
• Acting as a financial advisor, structurer, and
pathfinder bank to several clients, in line with
the team’s goal to expand the Bank’s role in
transactions that generate higher premiums at
transaction close.
• The oil and gas sector: DCM was mandated as one
of the IMLAs to one of the largest syndicate trans-
actions expected to close in FY2023 for a leading
public entity. The transaction size amounts to EGP
10 billion, of which CIB’s share is EGP 750 million.
CIB was appointed as joint IMLA and Book-runner,
as well as the technical bank for the transaction.
2024 Forward-Looking Strategy
In terms of project finance and syndications, DCM
aims to apply a multi-faceted penetration strategy
that can focuses on:
• Screening the market and aligning with GCR and
market players to capture new business opportu-
nities across all sectors, with a special focus on
growing sectors, such as real estate, transporta-
tion, education, healthcare, renewables, and
infrastructure.
• Structuring and promoting green loans and
sustainable initiatives.
• Marketing and pitching advisory services to existing
and potential clients to enhance fee income and
capture any financing opportunities with sizable
tickets and leading roles in transactions.
• Supporting and engaging with the government
and private sectors in the implementation of the
privatization program.
• Strengthening relationships with different inves-
tors, such as private equity funds and firms
interested in investing in the Egyptian market,
as well as DFIs and IFIs, to capture any potential
financing opportunities with a special focus on
LCY needs that may arise for financing, as well as
advisory and agency services.
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Our Businesses • Institutional Banking
• Supporting existing clients through creative and
bankable solutions that serve their business needs,
including restructuring balance sheets to over-
come existing market challenges.
DCM’s Securitization and Bonds team aims to main-
tain CIB’s leading position in Egypt’s ever-growing
fixed income instruments market by:
• Capitalizing on its relationships with clients and
market peers and collaborating with its strategic
partners to capture new business opportunities.
• Pitching new deals to its existing NBFI customers
in the fields of consumer finance, microfinance,
leasing, and mortgage finance, in addition to
urban development and real estate. The team
will also pitch to new clients in different sectors,
such as education services, hospitals, and govern-
mental authorities.
• Focusing on newly introduced products, such
as Future Flow Securitization, Green and
Sustainability Linked Bonds, and Sukuk, as well
as closing a large ticket Sustainable Sukuk issuance
in FY2024, the first ever of this magnitude in the
Egyptian market. Several other issuances will be
launched, valued at EGP 49.8 billion.
Strategic Relations Group (SRG)
The Strategic Relations Group (SRG) is an institutional
banking group dedicated to initiating, nurturing, and
growing banking relationships with strategic insti-
tutional depositors who are essential contributors
to CIB’s stable funding base. The Group’s primary
objective is to offer a first-class banking experience
while maintaining the balance between mainstream
commercial banking activities and its clients’ non-
commercial needs.
CIB takes pride in being the sole bank operating in
Egypt with a focus group exclusively dedicated to
servicing prime institutional entities, including stra-
tegic clientele consisting of more than 180 diplomatic
missions, NGOs, educational entities, and interna-
tional and local donor agencies. Despite the recent
economic uncertainties, SRG continued to conduct
its business with foreign entities.
SRG carries out this function through highly quali-
fied relationship managers whose role is to ensure
customers receive superior, personalized services
catering to their respective business needs.
• SRG provides tailored banking services with a
focus on digital banking solutions, including
bespoke GTS products and short-term bridge
finance facilities for the educational sector
to eliminate cash f low gaps that develop
throughout the year.
• The team facilitates clients’ operations and meets
their banking requirements by creating innovative
and tailored products and services.
SRG leveraged electronic channels to ensure
business continuity and expanded the use of GTS
products in accordance with the Bank’s strategy.
Technology, in particular digital banking, is a key
marketing tool that the SRG team leverages when
marketing CIB products. It relies heavily on data
analytics and digital banking in all aspects of its
business decisions, including performance analysis,
pricing strategies, and customer behavior analysis.
The team also offers customized digital solutions,
the collection of tuition and visa fees, the moni-
toring and reporting of deposit activities, fund
management, savings plans, providing a settlement
system between tourism companies and airlines,
and special offerings for staff loans.
2023 Highlights
Despite continued challenges faced in 2023, the Group
successfully leveraged its digital banking solutions to
increase its funding base and boost the Group’s SOW
with existing clients, as well as attracting a consider-
able number of new-to-bank (NTB) clients.
2024 Forward-Looking Strategy
The Group has become one of CIB’s primary chan-
nels for corporate lead generators, leveraging existing
relationships while simultaneously capturing NTB
opportunities by creating a wider networking base.
A tailored, short-term bridge finance facility was
implemented for the education sector, including
universities and schools, to eliminate cash flow gaps
that develop during the year. It is poised to become a
major attraction for these institutions, helping expand
the institutional depositor rate and enhance the utili-
zation of CIB’s digital banking solutions.
Treasury Group (TG)
The Treasury Group (TG) is the Bank’s primary pricing
arm for all foreign exchange (FX) and interest rate
products. The TG’s accountabilities include FX and FX
hedging, fixed income and money market activities,
sovereign debt trading, interest rate gap management,
and pricing of deposits in local or foreign currency. The
TG is one of CIB’s main profit generating arms, with a
wide range of services and products offered to a large,
ever-growing, and diverse customer base.
The TG is dedicated to better understanding,
reaching, and growing its diverse client base with
large volumes of FX, interest rate, and hedging
businesses. The Group works closely with relation-
ship management fronts covering a portfolio of
retail clients, as well as large corporates and small
companies, from a variety of different industries,
both exporters with foreign currency proceeds and
importers with significant trade finance activities.
Additionally, the TG onboarded major emerging
market asset management arms and financial institu-
tions to capture investment flows to Egypt’s capital
markets. Supported by a strong database, a top-tier
front office treasury system, and an expert under-
standing of customer flows, the TG is well-equipped
to engage with and better serve CIB clients.
2023 Highlights
For the past decade, CIB successfully weaved through,
thriving during uncertain and volatile times. The TG
has always operated with resilience and agility in
trying to maneuver CIB’s balance sheet and FX posi-
tion toward serving the Bank’s long-term interest,
while maintaining and growing client relationships.
2023 was a year marked by geopolitical tensions,
proving challenging on the global, emerging, and
local fronts. The effects of the Russia-Ukraine conflict
continued into 2023, coupled with the impact of the
escalating conflict in the Middle East region, leading
to a continued increase in most essential commodity
prices and rising inflation globally, and making Egypt
and emerging markets less and less attractive to
portfolio investors. The challenge for CIB was thus
two-fold: overcoming the FX liquidity crunch to main-
tain CIB’s client needs and, at the same time, abiding
by the highly dynamic regulatory requirements.
By closely monitoring global developments, along
with Egypt’s economic indicators and financial posi-
tion, the TG was able to foresee and prepare for a
tighter FX market. The Group proactively engaged
with its customer base to adequately position CIB
to meet its commitments and issue new business
in difficult FX conditions, all while abiding by
regulatory requirements and maintaining its profit
margins. Through its diversified customer base, the
TG was able to maintain its FCY inflows and thus
cater to its client needs and offer support to the
main industries in the economy. The TG success-
fully supported the Egyptian economy though harsh
conditions, winning CIB multiple awards, including
the “World’s Best Foreign Exchange Providers”
country award by Global Finance in 2023.
Meanwhile, the Group efficiently managed CIB’s
FCY liquidity throughout the year. The strategy was
focused on maintaining abundant FCY liquidity on
one front and achieving the highest return on excess
FCY liquidity on the other. Accordingly, CIB held a
more resilient stand against all hits than other banks
regarding FCY liquidity.
The TG effectively managed to maintain a solid
FCY and LCY liquidity base, serving CIB’s clients
business cash flow. Serving clients’ liquidity require-
ments was met in parallel with the proper allocation
of excess liquidity into various money market tools,
maximizing returns.
The TG strategy focuses on balance sheet management
to capitalize on the interest movements, while maxi-
mizing the gains through tenor mismatching between
assets and liabilities. The Group’s view starting 2023
was that CIB is moving toward a high-rate environ-
ment. Accordingly, the team liquidated a significant
size of its LCY bond portfolio and reinvested it in short-
term bills, corridor-linked deposits, and floating rate
securities to maximize capital gains and capitalize on
the rising interest rates, increasing the NII.
2024 Forward-Looking Strategy
CIB’s TG continues to lead the transition from
product-centric to customer-centric through the
service quality it offers to its client base. The TG offers
its clients competitive rates, tailor-made investment,
and hedging products, as well as research-based
advice. The Group stands firm in the belief that such
a customer-centric culture will empower CIB and
help it sustain and grow its leading position in the
Egyptian market. Moreover, CIB continues to work on
diversifying its customer base to grow its balance sheet
and cater to its clients’ needs. The TG also continues to
work on the ongoing challenge of catering to the trade
finance needs of its clients in a timely manner amid
the scarcity of resources in the market.
86 • CIB Annual Report • 2023
2023 • CIB Annual Report • 87
Our Businesses
Retail Banking
Continued household LCY deposit
growth to
254EGP/BN
We recognize the
transformative power of
technology in shaping the
future of banking.
Consumer Banking
Reflecting on this past year, we can attribute our
success to our unwavering commitment to enhancing
the Consumer Banking experience.
As interconnectivity increases worldwide, we recognize
the significance of seamless, personalized interactions
for an exceptional banking experience. Our commit-
ment to enhancing our customers’ journey is reflected
across every level of our operations. From innovative
product offerings to tailored financial solutions, we
strive to exceed expectations at every touchpoint.
We also recognize the transformative power of tech-
nology in shaping the future of banking. With the
rapid evolution of digital channels, we continue to
emphasize CIB’s strength in our relationships with our
clients, investing in technologies and digital platforms
to further demonstrate this. By adopting this healthy
mix of the face-to-face interaction with our clients
with sustained technological evolution, we aim to
redefine convenience, accessibility, and security in
Consumer Banking.
2023 Highlights
2023 was a transformative year for our Consumer
Banking division, marked by significant strides in
elevating our services to unprecedented levels.
We continued to invest in our front-liners and
Relationship Managers through comprehensive
training programs explicated in the Retail Banking
Academy’s inclusive program that is provided
through two levels. This standout achievement has
streamlined the integration process and ensured
that the segments and front-liners are equipped
with the latest knowledge to provide our customers
with exceptional service.
We emphasized the redirection of our payroll customers
from branches toward alternative channels, ensuring a
seamless and secure banking experience.
Furthermore, we continued our persistent efforts in
enriching our segments’ offering, introducing two
new products that have redefined our offerings. The
launch of our Premium Metal Credit Card, designed
exclusively for our esteemed Private customers,
elevated the standards of luxury and convenience
in financial transactions.
In collaboration with Noon, a leading e-commerce
platform, we also introduced a co-branded credit
card that brings an array of exclusive benefits and
rewards to our valued customers. These achievements
collectively reflect our commitment to innova-
tion, customer-centricity, and a forward-thinking
approach in the realm of Consumer Banking.
The Digital Sales function was introduced in 2023,
leveraging on the growing appetite for digital
channels. Throughout the year, several initiatives
were implemented, including the launch of new
customer targeting to achieve more conversions,
a revamp of the overall online journey to provide
a better customer experience, and automation
to increase overall efficiency. This resulted in an
overall improvement in conversion ratios across
all products, increased productivity, and a higher
percentage share of digital acquisitions from total
Retail Banking sales.
Prime Segment
The Prime segment has set a new standard for
excellence in personalized financial services.
Leveraging the power of data analytics, we delved
deeper into understanding the unique needs and
preferences of our Prime customers, enabling us
to offer tailored solutions that truly resonate. By
embracing digital methods and innovative tech-
nologies, not only have we optimized costs but also
revolutionized the customer experience. This was
exemplified by a notable reduction in the Average
Waiting Times at CIB branches.
The minimum Payroll account opening threshold
was raised to EGP 5,000 to enhance service levels and
portfolio quality, off-load branches, and maximize
cross-selling opportunities.
Digital migration metrics have shown visible
improvements, with E-Statement and Internet
Banking Subscription penetration reaching 82% and
69%, respectively, as of December 2023, compared to
75% and 65% in December 2022.
In an effort to boost acquisitions, CIB has harnessed
the capabilities of the Contact Center Agents in
acquisition activities. The pilot phase was successful
in 2023, preparing for a full-fledged launch in 2024.
The Prime segment witnessed an unprecedented surge
in gross contribution, soaring 435% y-o-y from EGP
241 million in 2022 to an outstanding EGP 1.29 billion
in 2023. These achievements highlight our commit-
ment to pushing boundaries, embracing technological
advancements, and ultimately delivering unparalleled
value to our esteemed Prime Customer.
The Plus Segment added new services to Plus
Concierge, which extends beyond traditional finan-
cial offerings. This comprehensive service provides a
range of both financial and non-financial solutions,
designed to meet the diverse and dynamic needs of
our Plus customers.
Furthermore, our strategic lifestyle partnerships
have flourished, allowing CIB to offer exclusive
benefits and privileges that complement the
lifestyles of our Plus customers. The Plus Banker
Academy reached an impressive milestone with
the launch of Level Two. This advanced curriculum
places strong emphasis on customer-centricity,
business acumen, and leadership competencies,
equipping our Plus Bankers with the necessary
skills to serve our clients effectively in the rapidly
evolving financial landscape. These achieve-
ments collectively underscore our dedication to
innovation and our commitment to providing
unparalleled value to our Plus Customers.
Digital migration metrics improved notably; penetra-
tion rates for E-Statements and Internet Banking
Subscriptions reached 87% and 92%, respectively,
as of December 2023, compared to 79% and 89% in
December 2022.
The Plus Segment performed exceptionally in 2023,
showcasing remarkable financial growth. The gross
contribution for the segment surged from EGP 1.23
billion in 2022 to an impressive EGP 2.39 billion, up
93% y-o-y. This phenomenal growth not only under-
scores the robustness of our Plus Segment strategy
but also reaffirms the trust and confidence our
valued clients place in our offerings.
Plus Segment
In our pursuit of excellence, we have strategically rede-
fined the Plus Segment by adjusting its threshold. Not
only have we repositioned ourselves more competi-
tively in the market, but we have also ensured that a
wider audience can benefit from the segment.
Wealth Segment
2023 was a year of significant advancements for
CIB’s Wealth Segment, elevating its services for
HNWIs with a remarkable revitalization of the
Wealth Lounges, transforming them into exclusive
areas. These enhanced spaces serve as a testament
88 • CIB Annual Report • 2023
2023 • CIB Annual Report • 89
Our Businesses • Retail Banking
to our dedication to providing an environment that
matches the stature of our esteemed customers.
In response to the dynamic financial market, CIB took
progressive steps by raising the Wealth threshold
from EGP 1 million to EGP 1.5 million, offering an
extended grace period for existing customers to meet
the revised criteria.
Additionally, in prioritizing customers’ financial
wellbeing, insurance limits for customers when
applying for loans increased, providing an added layer
of protection and peace of mind. We streamlined our
lending process for Wealth customers, reducing the
unsecured minimum lending period required from
six months to only three months, ensuring that our
valued clients can leverage their Wealth privileges
effectively and efficiently.
CIB also continued to develop partnerships with
Egypt’s most elegant venues and elite brands for
CIB Wealth customers to enjoy premium benefits.
As a result, three events were held this year: EGO,
the BMW Series 7 launch, and the Le 5eme event.
There has been a good surge in internet banking
subscriptions, with adoption rates increasing from
91% to 92%. Furthermore, our push for sustainability
and efficiency was echoed in the rise of e-statement
adoption, which saw a noteworthy increase from 81%
to an outstanding 91%.
CIB Wealth’s financial performance demonstrated
impressive growth, with total deposits soaring by an
29% y-o-y. New-to-bank customers also grew by 40%.
The segment’s gross contribution recorded
substantial growth, marking an impressive 63%
increase compared to 2022.
Overseas Segment
In line with the Overseas segment’s main goal to
establish an appealing proposition that truly caters
to the various needs of non-resident Egyptians, the
Overseas team introduced a remote relationship
model for Overseas Wealth customers. Overseas
currently provides the most unique proposition in
the market, whereby customers can proceed with KYC
updates, account activations, and cheque book and
debit cards issuances or delivery end-to-end seam-
lessly from abroad.
On the technological front, CIB Overseas Banking
initiated a whitelisting exercise with telecom
providers in over 50 countries to ensure that CIB OTP
or SMS are received by our clients abroad.
Private Segment
CIB Private remains committed to providing clients
with a cutting-edge experience by offering premium
services, products, and partnerships that align with
their financial goals and lifestyles. In this regard, we
increased the capacity of our Private Distribution
Team to ensure an efficient span of control, aiming
to enhance customer penetration and service levels.
In pursuit of enriching our services, we have included
global services as part of the concierge services
package, enabling customers to enjoy a variety of
international VIP services and benefits.
Building on our commitment to developing our
skills and offering a top-notch banking experience,
we equipped our team with the required knowledge
and skills to maintain our position as the strongest
financial advisors in the market. Our team of Client
Advisors was enrolled in the preparation course of the
International Certificate in Wealth and Investment
Management – ICWIM program.
In terms of product offering, we increased our
unsecured limits to EGP 8 million. The new Metal
World Elite Credit Card was also launched, offering
unparalleled privileges in travel, dining, and lifestyle.
Liabilities
In 2023, Liabilities witnessed a remarkable surge
in LCY household deposits, reflecting increased
consumer confidence in our services. Our unwavering
commitment to customer needs, effective marketing
initiatives, and diverse product offerings have proven
instrumental in driving LCY household deposit
growth this year, recording EGP 253.9 billion as of
December 2023. This marks a 42% increase compared
to the EGP 178.9 billion recorded last year.
CIB also launched the Everyday Savers account,
offering a daily capitalization interest that has attracted
customers across all CIB household segments,
allowing their savings to grow faster. Incentivizing
customers by offering this type of depositary products,
designed especially for our valued customers’ appetite
for savings, allows them to watch their savings grow
steadily and achieve their financial goals faster.
Insurance
While the Insurance business focused on Bundled
Products throughout the year, the Individual busi-
ness continued to be the main driver for revenues,
offering higher life and medical insurance benefits
for customers. It also enhanced quality practices for
the insurance portfolio.
Bundled Products was expanded as an offering to
become a key pillar for growing the Insurance busi-
ness’ fee income. The aim is to capitalize on it by
bundling Insurance products with CIB Retail prod-
ucts, thus improving the current distribution model.
This expansion included extending the Group Life
Insurance business to Business Banking borrowers
that reached EGP 1.2 billion insured portfolios since
initiation. It also incorporated the revamping of the
Credit Shield Business, with 58% income growth
compared to 2022.
CIB will continue to utilize its data capabilities to
better understand customers’ insurance prefer-
ences, meet their insurance needs, and increase the
penetration of insurance products with the highest
contribution fees.
Insurance fees closed the year at EGP 434 million,
while volumes for life, health, and non-life insurance
reached EGP 973 million.
Consumer Assets
The Consumer Assets business showed growth in
consumer lending by 7.68% and credit cards by 36%.
This growth can be attributed to the success of moving
90% of the secured loan application approval authority
from the Credit Assessment and Fulfilment Unit to
the distribution channels and applying the necessary
system enhancements to automate most of the flow.
Loans
Despite the challenging macroeconomic environ-
ment and rising interest rates during the year,
Consumer Assets witnessed a slight growth in the
personal loans portfolio, reaching EGP 41.4 billion
by the end of the year. We managed to combat these
challenges by providing tools to enhance sales
levels, such as extending loans to suspended and
un-coded payroll companies and relying on applica-
tion and behavior scores as test programs to identify
high-quality customers.
In response to the dynamic
financial market, CIB
took progressive steps
by raising the Wealth
threshold from EGP 1 million
to EGP 1.5 million.
The maximum lending amount increased in the
payroll program, ensuring that individuals have
access to the necessary resources to achieve their
financial goals. Additionally, in recognition of the
loyalty and commitment of our Plus and Wealth
clients, we elevated the maximum loan amounts for
salary transfer programs, reflecting our dedication
to rewarding their ongoing partnership.
For CIB Private customers, we increased the unse-
cured loan ceiling for the Asset Under Management
(AUM) lending program, enabling them to leverage
their wealth for strategic investments and ventures.
These enhancements expand our lending capa-
bilities and reaffirm our commitment to providing
comprehensive financial solutions that empower
our clients on their unique financial journeys.
Moreover, Consumer Loans continued to leverage
the portfolio retention management exercises by
restructuring secured loans to longer tenors. The
purpose is to reduce attritions and increase profitability,
offering the customer other cash management solutions
and portfolio management benefits.
Finally, after the success of moving 90% of the
secured loan application approval authority from
the Credit Assessment and Fulfilment Unit to the
distribution channels and applying the necessary
system enhancements to automate most of the
flow, the team has launched the payroll STP for
payroll loan approvals. The move marks Phase
One of our efforts to continuously enhance
internal processes.
90 • CIB Annual Report • 2023
2023 • CIB Annual Report • 91
Our Businesses • Retail Banking
Cards
2023 witnessed record card acquisitions, balancing
build-up, and a big hike in spend levels. Monthly
acquisition run rates increased by 14%, and ENR
crossed EGP 10 billion, representing a year-on-year
increase of 36%. This growth was mainly driven by the
expansion of our credit card suite and the elevation
of the value proposition of our existing credit cards.
The first Metal World Elite credit card in Egypt
was launched, targeting CIB Private customers.
The card represents the pinnacle of luxury, offering
unparalleled convenience and exclusive benefits
to cardholders that meet their needs and lifestyle,
positioning it as a gateway to a world of indulgence
and rewards.
Consumer Assets has also launched the CIB-Noon
Credit Card, complementing CIB’s existing product
suite and positioning CIB as the first bank to
launch E-Commerce Co-Brand in the country.
This card has recorded a very healthy portfolio,
with almost 18,000 cards acquired in the first year,
reaching total spend of EGP 350 million and a card
activation rate of 81%.
On the debit cards side, Retail spending increased
year-on-year by 48 % (EGP 56.77 billion in December
2023 compared to EGP 38.34 billion in December
2022). Our strategy with debit cards was to shift the
cardholders’ behavior, encouraging cash only users
to use POSs instead of ATMs.
Debit card spend reached 30% of total debit card
spending, with an annual gross contribution of EG
401.6 million. Moreover, a new service was launched
that enables CIB Credit, Debit, and Prepaid card-
holders to deposit cash via other participant
Egyptian banks’ ATMs, as well as depositing and
withdrawing cash from any participant payment
service providers’ POSs, such as Fawry Plus.
Mortgage
CIB reaffirmed its commitment to fostering home-
ownership among middle-income individuals
and families. Through diligent underwriting and
streamlined application processes, the team strived
to ensure qualified middle-income individuals
could secure the financing they need with confi-
dence and ease. Our dedicated Mortgage Advisors
were on hand to provide Mortgage customers
In 2024, CIB Consumer
Banking’s main focus will
be on becoming a future-
ready bank to meet the
emerging needs of the young
Egyptian population.
with personalized guidance, making the journey
to homeownership a seamless and well-informed
one. As a result, numerous families were able to turn
their aspirations into reality, establishing a founda-
tion for financial stability and security.
During 2023, the Mortgage business successfully
achieved total sales of EGP 1.08 billion. The free
market middle-income mortgage sales, in particular,
significantly increased by 177% y-o-y, consequently
increasing its share of the middle-income mortgage
sales to 62% up from 34% in 2022.
Total Mortgage ENR reached EGP 4.3 billion as of
December 2023 versus EGP 3.3 billion in December
2022, with a growth rate of 30%.
2024 Forward-Looking Strategy
In 2024, CIB Consumer Banking’s main focus will
be on becoming a future-ready bank to meet the
emerging needs of the young Egyptian population.
CIB will continue focusing on performance-driven
culture strategy as our core business and building
for the future. We will also focus on accelerating
growth and maintaining market share by launching
new products, enhancing customers’ experience, and
investing in people development.
The Assets team will be working closely with other
leading businesses to leverage the synergistic power
of co-branding and partnerships to expand its
customer base and access new markets. This will
include a variety of industries to offer card products
with exclusive rewards and value propositions. This
mutually beneficial arrangement will enable CIB
to reach a wider audience and offer its customers
Market share of POS volume
17%
CIB is dedicated to
advancing Egypt’s digital
transformation efforts
and continues to invest
heavily in digital channels.
a more rewarding experience to drive sales and
increase customer loyalty.
We are also aiming to leverage our expertise in
process optimization to streamline asset acquisitions
and reduce turnaround time by introducing new
programs, including the Asset AUM-based surrogate
program, which will be processed from branches.
The Consumer business will continue to be our main
driver of revenues, as we are focusing on increasing
customer ticket size to drive lower cancelations and
provide a better customer experience. The Insurance
business will continue to expand Group business by
enhancing Retail product bundles.
With a commitment to providing outstanding services
and tailored offerings, the Premium segments will
continue to offer Affluent banking with the completion
of Wealth Management products, enhanced lifestyle-
related features, and a strong product offering, elevating
the value proposition through introducing a partner-
ship with Elite Lifestyle Management, a world-class
concierge company specialized in offering luxurious
services. This will provide a personalized banking
experience that exceeds customer expectations,
strengthening loyalty and satisfaction. The main objec-
tive of the year is to achieve the desired market share
percentage from non-resident Egyptians and raise CIB’s
remittance share from the present 0.5% to at least 5%.
The Overseas Banking team has conducted a market
study on Egyptian expats in the GCC area that will result
in developing internal processes to provide the most
critical daily banking services remotely, ensuring the
end-to-end execution of clients’ requests from abroad.
We will continue to focus on enabling online acqui-
sition to improve sales efficiency and attract NTB
customers through the online account opening
launch on our webpage. Big data will be used to
further improve and refine our targeted marketing
activities and promotions. We will also work on
advancing our digital marketing skills to increase
reach and enhance conversion rates per effective
reach. Focus will also be on responding to rapidly
changing customer behavior, which drives customer
satisfaction, loyalty, and advocacy.
Business Banking
Business Banking has built a well-established cash
and trade management business, growing the client
base by 8% y-o-y to more than 83,000 companies
during the year. The segment recorded EGP 60 billion
in deposits, while trade rose to EGP 50.6 billion, with
a compounded growth of 25% and 11% respectively
in the past five years.
Operating profit came in at EGP 6.95 billion, while
gross profit reached EGP 5.075 billion. On the
payment solution side, the division processed EGP
82 billion in transactions.
Retail Banking’s strategy for SMEs over the past 10
years has resulted in the successful onboarding and
activation of a wide base of non-borrowing customers.
This base is at the heart of the SME lending strategy to
cross-sell assets using the different lending programs,
leveraging a strong referral mechanism. There has
also been more focus on understanding industry sub-
segments and critical success factors for SMEs within
those segments, with advanced monitoring techniques
and an independent early warning function. Business
Banking managed to grow its asset book in the past five
years by 125% to reach EGP 9.7 billion in 2023.
2023 Highlights
CIB Business Banking received several recognitions
throughout the year. It was named “Best SME Bank in
Egypt” by Euromoney for the second consecutive year
and “Best Bank on Excellence” in providing innova-
tive and effective financial services to SMEs in Egypt
by Global Finance. These prestigious recognitions are
a testament to CIB’s innovative and unique solutions
for SMEs that have significantly transformed the
customer experience, solidified the Bank’s position
as the bank of choice for SMEs, and positioned CIB
as a leader in the Egyptian market.
92 • CIB Annual Report • 2023
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Our Businesses • Retail Banking
Business Banking’s asset growth strategy capitalized
on augmenting the current lending model with
changes in the acceptance criteria, along with adding
additional capacity across the relevant chains. In line
with the strategy’s focus on lending small tickets,
Business Banking launched the first-of-its-kind
unsecured standalone credit card targeting small
companies, and it was a first mover by adding an
equal payment plan feature to business cards.
Meanwhile, the newly minted Growth segment
targeting small-sized companies doubled its profit-
ability in the past year, offering convenient products
and services that cater to the business needs of
small enterprises.
The segment also managed to launch a new educa-
tional platform for SME clients in 2023, the Growing
Together Academy, in partnership with Visa and
Al Mentor to support the growth and success of
our SME clients with the knowledge, tools, prac-
tical skills, and experience needed to grow their
businesses. The initiative comes in line with CIB’s
commitment to supporting SMEs and enriching
Egypt’s business environment.
CIB is dedicated to advancing Egypt’s digital transfor-
mation efforts and continues to invest heavily in digital
channels to elevate customers’ digital experience and
offload front-liners through a safe banking environment
with the latest banking technologies. As a result, we
expanded the list of in-branch services to be available
only through the CIB Business Online platform as a
part of the Bank of the Future program, which focuses
on reviewing the way CIB serves Business Banking
customers through convenient digital transactions.
Business Banking also upgraded the SME contact
center as part of CIB’s strategy to offload pressure
from branches and provide customers with round-
the-clock banking services by improving alternative
channels. The upgrade included Business Banking
products and digital services, technical support, and
payment acceptance services.
SME Growth Initiatives
In line with CIB’s strategy to support SMEs and grow
the SME lending portfolio, CIB and FMO, the Dutch
entrepreneurial development bank, signed a credit
CIB continued targeting
unbanked customers
through the Bedaya accounts.
guarantee agreement worth USD 50 million to guar-
antee loans granted to Business Banking borrowing
customers, with a special focus on underserved
segments, such as women and youth.
Our partnership with FMO will allow us to better
target small-sized business customers and provide
them with the necessary support during the current
global economic challenges. CIB and FMO also
established a risk-sharing agreement encompassing
the NASIRA risk-sharing facility backed by FMO,
the European Union, and the Dutch government
(through the MASSIF fund), as well as a technical
assistance program provided by the Frankfurt School
of Finance and Management for product develop-
ment and internal/external capacity building.
With sustainability being among CIB’s core beliefs,
the Bank partnered with the German Agency for
International Cooperation (GIZ) to utilize their
technical know-how to advance sustainable prac-
tices throughout the Egyptian financial sector
by conducting awareness sessions and technical
assessments. These activities will support the
segment in designing new SME products, which
will ultimately boost profitability and result in a
more sustainable company model.
Furthermore, the Bank partnered with Nile University
to develop the first-of-its-kind Sustainable SME
Financing course in Egypt. The new curriculum aims
to support SME growth and youth capacity building.
For the third consecutive year, as part of the Bank’s
dedicated efforts to support women in business, CIB
and Visa’s “She’s Next” initiative took place, supporting
and empowering the rising number of female entre-
preneurs as they run, fund, and grow their businesses.
The initiative’s goal is to help women-led businesses
with more consideration for women-led businesses
and in cooperation with specialized entities. The
division will also continue growing its loan expo-
sure, with an emphasis on the enhanced onboarding
process through loan origination and leveraging new
programs that target small-sized companies with a
small ticket size. It will extend the SME borrowing
coverage model to improve credit offerings, particu-
larly outside Cairo, along with SME decentralized
hubs to expand geographically in select areas for
customer proximity, further enhancing TAT and
leading to faster credit decisions.
The team will also place more focus on sustaining
the portfolio, capitalizing on the technical assis-
tance that will be provided by the GIZ, to build and
test new products and raise internal and external
awareness of sustainable finance. Using state-of-
the-art technology, Business Banking will build the
infrastructure to automate processes to improve
the customer experience. It will also invest in its
online banking capabilities and remote services to
provide clients with convenient and efficient ways
to manage their finances around the clock, in addi-
tion to giving them access to online governmental
payments and payroll services.
gain access to and secure the required funding to thrive.
The program offers unmatched resources and oppor-
tunities to female entrepreneurs through coaching and
connecting them with likeminded peers and experts.
On the financial inclusion front and in line with
the CBE’s initiative and CIB’s goal to include the
unbanked segments of society by eliminating
entry barriers, CIB continued targeting unbanked
customers through the Bedaya accounts. In an
effort to simplify the account opening process and
encourage participation, the Bank reduced the
number of required documents.
In 2023, Business Banking became the official
sponsor of the Food Export Council (FEC), aiming
to support the government’s plan to raise Egyptian
exports. The sponsorship provided exporters
with various financial and non-financial services,
including access to finance needed to meet Food
Safety Authority requirements, and supported them
in utilizing their available funds competently.
Business Banking also established the Quality
Assurance department this year. Its main objec-
tive is to enhance the customer experience and
journey through developing, implementing, and
maintaining a system of quality, monitoring end-
to-end processes, and supporting the segment’s
customers and profitability.
Payment Acceptance
CIB maintained its dominant position in Egypt’s
payment acceptance sector in 2023, attaining
a market-leading share of 17% of POS volume.
Following the country’s push for financial inclu-
sion, the Bank managed to activate all POS and
e-commerce platforms to accept the government-
backed Meeza card and launched QR acceptance to
reach untapped segments. This has made CIB a key
enabler of payment business growth, especially with
very small merchants.
2024 Forward-Looking Strategy
In the coming year, CIB’s Business Banking SME
clients will enjoy a bouquet of products and services
designed for each segment according to their busi-
ness requirements. Business Banking will expand
the services offered through its different channels,
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Our Businesses
Digital Banking
Global Transaction and Digital Banking
Group
CIB’s Global Transaction and Digital Banking
Group has continuously prioritized the develop-
ment of innovative solutions, digital channels, data
analytics, and the overall customer journey to create
unique digital value propositions, ensure sales effi-
ciency, and manage costs. Our digital capabilities
enable us to best serve our customers and the wider
community. Ultimately, the success of CIB’s digital
transformation efforts comes from putting the
customers’ needs at the heart of product, service,
and innovation development across the Bank. The
Global Transactional and Digital Banking Group
advocates for the customer during all process
redesigns, as well as digital upgrades and enhance-
ments. Accordingly, we are able to translate an
understanding of customer needs into clear system
requirements, ultimately improving the customer
experience. Several services were extended to the
Bank’s support functions, resulting in notable gains.
The Group is dedicated to developing and promoting its
digital banking channels for individuals and corporates,
focusing on cementing them as the primary channels
and changing customers’ behavior to perceive CIB’s
physical branches as alternative options.
Ongoing investments drive the development of
cutting-edge banking digital solutions, such as the
implementation of “Banking as a Service” framework
and the launch of the revolutionary “Payment as a
Service” paradigm. These endeavors aim to foster
the seamless integration of both companies and
fintechs into CIB’s ecosystems, leveraging applica-
tion programing interfaces to outsource banking and
payment services. Through these initiatives, CIB is
actively contributing to the creation of innovative
and globally recognized technological services.
The Bank of the Future program continues to
support the offloading strategy, offloading more
customers to more convenient digital channels,
and enhancing CIB’s digital capabilities to better
serve existing and future customers. The Robotic
Process Automation (RPA) journey continues to
automate some of the Bank’s processes to increase
efficiency and reduce the workload and need for
human intervention for staff, as well as enhance the
customer experience and optimize TAT.
As the Digital Instant Payment Network continues
to grow in both scale and capabilities, it underscores
CIB’s commitment to driving innovation in the finan-
cial sector, enhancing customer convenience, and
supporting the vision for a modern economy. The
expansion of the Instant Payment Network by CIB
continues to surge in both volume and value, reflecting
a growing trend in the financial industry. One of the
notable aspects of this expansion is the facilitation of
utility payments for customers, making it easier for
individuals to settle their bills seamlessly. By enabling
such transactions, CIB contributes to fostering a tech-
nologically advanced payment landscape, which, in
turn, promotes the adoption of a cashless society,
aligning with the broader goals of the nation.
Agile Cultural Transformation
CIB’s Agile Cultural Transformation achieved a
significant milestone with the successful comple-
tion of phase one of its Agile program. This phase
was meticulously designed to introduce a new RPA
system for the processing of credit card and loan
applications submitted through online channels.
The decision to adopt this new process was guided
by several key objectives:
1. Enhancing Customer Experience: The new RPA
process instigated substantial improvements to
the customer experience. It notably reduced the
turnaround time for processing loan and credit
card applications. This was achieved by relieving
the online acquisition team from manual system
usage, allowing them to redirect their efforts
toward more meaningful customer communica-
tion. Furthermore, the online application forms
were redesigned to be more user-friendly, making
the entire application process smoother and
more customer-centric.
2. Enhancing Productivity: The implementation of
the RPA process resulted in a significant boost in
productivity. It enabled a higher number of cases
to be processed each month, leading to operational
efficiency gains. This not only streamlined internal
processes but also increased capacity to handle a
larger volume of applications.
3. Increasing Revenue: The enhanced efficiency
and capacity brought by the RPA process directly
contributed to revenue growth. Processing a greater
number of cases each month had a positive impact
on the revenue generated from approved cases,
making it a financially rewarding transformation.
The agile methodology was instrumental in the
program’s success. It allowed for rapid iterations
and continuous improvements throughout the
implementation of the new RPA process. Agile
practices ensured that the process could adapt and
evolve in response to changing requirements and
market dynamics. This approach not only ensured
the successful completion of phase one but also set
the stage for a broader cultural transformation within
CIB, emphasizing the importance of responsiveness
and customer-centricity in its operations.
Main Areas of Focus
• Maximizing transactional banking revenues and
creating new revenue streams.
• Driving and increasing the cost synergy generated
from various digital products and channels.
• Increasing efficiencies and reducing service costs.
• Providing new channels and features for customer
acquisition.
• Creating new touch points for existing CIB
customers.
• Increasing migration and automation ratios.
• Enhancing the customer experience and inte-
grating channels seamlessly.
• Driving product and service innovation.
• Re-engineering various operational processes to
reduce TAT and increase efficiency.
Main Divisions
Digital Transformation
The Digital Transformation division is focused on
paving the way for the future. Unlike the Digital
Channels division, Digital Transformation is a far
wider domain. The team is responsible for integrating
relevant digital technologies across different touch
points, optimizing operations, and creating and
enhancing services to support the interactions
between the Bank and its customers. The interactions
are more widely known as “service design” and are
used to deliver value to our customers.
The key enablers are a data-driven mindset, adopting
digital approaches, and developing technological
solutions that execute changes in a business and
tackle disruptions without disregarding the human
factors that affect the organization’s capacity to
achieve its strategic goals. The key activities of the
Digital Transformation division include using digital
technologies to create new, or leverage existing,
business processes and channels; evolve culture;
and elevate the customer experience to adapt to
changing business dynamics and market disruptions.
This innovative vision of business in the digital age
is CIB’s approach to enabling digital transformation.
Global Transaction Banking (GTB)
Global Transaction Banking (GTB) is a key function
of CIB that provides a range of value-added trans-
actional products and services to corporate and
business customers. GTB helps customers manage
their cash flow and offers trade activities, securi-
ties services, and supply chain finance through
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Our Businesses • Digital Banking
innovative and integrated digital solutions. It
also leverages CIB’s digital banking capabilities
to offer customers simple, reliable, and convenient
access to their accounts and transactions anytime,
anywhere, and on any device. This has allowed
GTB to become locally and globally recognized
for its excellence and innovation in delivering
value-added services to CIB customers. The GTB
division offers a comprehensive suite of value-
added, integrated, and innovative transactional
products and services to corporate and business
banking customers, including:
• Cash management products
• Governmental payments products
• Trade products
• Supply chain finance products
• GTB business development
• Global securities services products
Digital Banking Channels
The Digital Banking Channels division develops and
promotes digital services for Consumer Banking.
It monitors and analyzes the performance of these
channels and platforms in terms of traffic, segments,
products, and services to maximize product penetra-
tion and increase CIB’s share of customers’ “wallet.”
The division focuses on three core areas:
• Online banking channels (Internet and mobile
banking)
• CIB Conversational Channels (Chatbot, Phone
Baking, and SMS)
• ATMs and self-service channels
Financial Inclusion Digital Platforms
The Financial Inclusion Digital Platforms division
is responsible for managing the technological end
of mobile payment solutions. It acts as an enabler
of the Bank’s financial inclusion strategy to serve
the unbanked segment by providing a cost-effec-
tive platform that promotes online payments and
provides diverse services to attract the unbanked.
The division is also responsible for managing the
end-to-end delivery of mobile payment solutions
from the initiation of business to technical engage-
ment. This includes cross-functional coordination,
stakeholder alignment, test strategy, test cases,
and business testing management, in addition
to preparations for going live and production
service management. The division also manages
the enhancement of the currently offered services
and elevates the customer experience.
Digital Banking Governance and Support
The Digital Banking Governance and Support division
is dedicated to managing and ensuring collabora-
tion and compliance among all Group divisions, the
Bank’s internal stakeholders, the regulator, and other
external stakeholders.
Digital Transformation 2023 Highlights
Bank of the Future program
Three years ago, CIB launched Bank of the Future
(BOTF), a program that replicates the physical
branch experience and redirects customer traffic
toward our growing digital channels. Using robotics
and operation centralization systems to increase
efficiency and minimize service costs, the BOTF
program will help establish CIB’s digital platforms
as the primary channels for serving customers.
During 2023, the program continued its extension
over two phases for individual and business banking
customers; the execution of CDs and TDs booking for
the individuals and governmental payment (taxes,
customs, social insurance, and unified gateway) for
business banking customers were moved from the
branch network to the Bank’s digital platforms. Both
phases were outcomes of extensive collaborative
efforts from cross-functional teams that represent
several stakeholders across the Bank.
The program continues to enhance BOTF KPIs as
follows:
NTB registration in online banking same day
ratio (non-payroll) increased from
49% in FY2022 to 86% FY2023.
CDs/TDs booking ratio via online banking vs.
branches increased from
47% in FY2022 to 64% in FY2023.
Additional account opening ratio via online
banking vs. branches increased from 61% in
FY2022 to 76% in FY2023.
The five key pillars of the BOTF are service digitaliza-
tion, robotics and operations optimization, branch
digital experience, digital sales, and Banking as a
Service (BaaS). Some of these pillars have made
significant progress during 2023, including:
Robotics and Operations Optimization
RPA played a significant role in productivity
enhancement and saving time, effort, and cost. In
2023, CIB automated processes using RPA tech-
nology and enrolled 10 digital employees to work
within the CIB ecosystem, leading the aggregate
number of RPAs to reach 29 across the Bank. This
led to more time being dedicated to focusing on
improving customer engagement, innovation,
and accelerating transformation within business
activities. Among the benefits, the digital employees
marked progress on the Bank’s operations and
resources, whereby the total number of transac-
tions processed by RPA almost doubled by the end
of 2023. Total saved hours reached 285,000 hours
through 23 processes currently executed through
our digital workers.
Digital Sales
Digital Sales in CIB have transformed the way we
engage with our customers, drive growth, and
adapt to the evolving business landscape. Through
our robust online banking platforms, CIB offers a
comprehensive suite of assets and liabilities digital
products, empowering customers to explore and
purchase products and services, take control of
their financial wellbeing, and achieve their saving
and financial goals more effectively.
We have worked on adding new revenue streams
through Online Banking channels by offering CDs/
TDs booking requests as investment tools. This has
transformed our online platforms into effective
digital sales channels that now contribute 64% of the
Bank’s total annual booking in terms of volume and
56% in terms of value. As a result, we reduced branch
traffic, enhanced customer experience, and increased
the use of digital channels for their unique experi-
ence and great convenience. The average monthly
value of digital bookings in 2023 surpassed EGP 6
billion, marking a 50% y-o-y hike in total CDs/TDs
booking volume, and a 162% y-o-y jump in value to
EGP 72 billion in FY2023. Additional account opening
requests through Online Banking channels jumped
by 40% y-o-y, representing 76% of the total additional
accounts opened during 2023, while the number of
loan and credit card submissions almost doubled,
generating extra leads.
Banking as a Service (BaaS)
CIB strives to extend its services to other banks and
financial institutions, initiating the journey of trans-
forming our operating units into revenue generating
hubs by catering to financial entities. To achieve this,
the Bank needs to expose its APIs to integrate with
multiple channels, customer ERP, billing systems,
third-party vendors, payment service providers,
payment aggregators, switches, and payment hubs.
Accordingly, we are developing our API Gateway
infrastructure as a first step in achieving this strategy,
allowing us to make our APIs available. In doing so, the
Bank can tap new business opportunities, maximizing
customers and developing business-centric API prod-
ucts and packages. This will enable us to create new
revenue streams by charging back customers through
annual or monthly subscription packages.
In 2023, we focused on exploring and penetrating
the market for the ERP integration to a diversi-
fied portfolio of different industries and different
segments. This resulted in maintaining our brand and
product positioning in the market by always leading
with unique technological solutions offered to our
customers while conducting their daily business
operations. In the year ahead, we will explore more
integration services and adopt new market trends,
allowing CIB to stay on top of the market.
Global Transaction Banking (GTB) 2023
Highlights
GTB streams have diversified through innova-
tive offerings, contributing to sustainable growth
and stability. This has translated into streamlined
revenues and cost synergies that reached EGP 4.2
billion by the end of 2023.
Cash Management Products
Managing payments and receivables effectively is
vital for maintaining liquidity, optimizing working
capital, and ensuring financial stability. In an era
where businesses are becoming increasingly digitally
integrated, efficient and adaptable cash management
solutions are crucial.
CIB has recognized the evolution of financial trans-
actions and has taken bold steps to make payment
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Our Businesses • Digital Banking
and receivables management a pillar of its strategic
vision. With a vision firmly centered on this vital
aspect, CIB will lead the charge in revolutionizing
financial services.
CIB ‘s cash management strategy embraces the
digital age, offering intuitive online platforms for
real-time access to financial data.
1. Efficiency and Automation: Streamlined
payment and receivables/collection processing
minimizes manual workloads, fostering opera-
tional efficiency while cutting costs.
2. Security First: Robust security measures safe-
guard sensitive financial data, ensuring clients’
trust and peace of mind.
3. Global Reach: CIB’s international reach simplifies
cross-border payments and receivables manage-
ment for businesses with global aspirations.
CIB offers a variety of payments, collections, and trea-
sury products and services backed by web-based and
ERP integration solutions, from account information
to state-of-the-art liquidity management solutions.
The product offering includes several unique and
innovative tailored cash management options, aiming
to empower businesses to optimize their financial
operations based on their unique needs and standard/
tailored information reporting and delivered via a
variety of digital solutions. FY2023 saw outstanding
performance, with CIB ranking 1st in the Egyptian
market in domestic payments. There was a notable
increase in transactions, which were up 25% y-o-y to
9.1 million transactions worth EGP 1.4 trillion, an 88%
y-o-y hike, generating significant synergies for cash
management, which increased 52% y-o-y to EGP 2.3
billion. The customer base also increased by 37% y-o-y.
CIB intends to focus on building and enriching the
capabilities of current products, digital solutions,
and payment infrastructure by improving speed and
agility via the API Gateway, improving delivery of
aftersales solutions and accelerating process automa-
tion. The CIB Business Online platform will benefit
from an upgrade to the user interface experience by
enhancing the platform with new features, such as
adding governmental payments services. Additionally,
a new E-Business Mobile Banking Application will be
introduced to CIB corporate customers as an exten-
sion to the web-based platform to allow for better
accessibility and mobility to our users.
Payment as a Service
In the ever-evolving world of finance and technology,
we are spearheading a visionary transformation of
bank payment systems. This bold endeavor is driven
by the strategic objective of achieving customer-
centricity, speed, agility, innovative payment solutions,
and leadership. Our mission is to attain a sustained
competitive advantage in the rapidly changing global,
regional, and domestic payment landscape.
One of the key innovations in this journey is the
introduction of “Payment as a Service.” This ground-
breaking concept enables CIB payments to third-party
partners, seamlessly integrated with the Bank. This
not only enhances operational efficiency but also
allows CIB to keep pace with the ever-evolving world
of payment solutions. A significant accomplishment
in this quest is the successful integration between
international remittance partners and the ACH
domestic scheme, enabling companies to initiate
domestic payments to ACH scheme directly from
their systems. This level of integration fosters effi-
ciency and enhances user experience, placing CIB at
the forefront of customer-centric financial services.
CIB also finalized the requirements for enabling
payment initiation across various critical domains,
including instant payments, payroll transactions, and
cross-border payments. This empowers companies
to initiate payments through integration with CIB,
ensuring a seamless and efficient process.
The adoption of cutting-edge technology is also
central to CIB’s vision for payment modernization.
The Bank has been diligently working on creating the
first fully integrated payment hub, which will serve
as the core payment system. This hub is designed
to increase automation and ensure that payment
handling is in compliance with the latest interna-
tional standards across all available payment rails.
Instant Payment Network (IPN)
In the ever-expanding domain of instant payments,
CIB has made significant unique strides. During
2023, bill payments went live, adding to the array
of offered services. The instant payment network
witnessed extraordinary growth, with transaction
volume and value surging to 46 million and EGP 308
billion, respectively. Moreover, the number of CIB
customers utilizing IPN recorded astonishing growth,
soaring from 176,000 to 692,000. This represents an
astounding 293% increase, underlining the Bank’s
commitment to innovation and excellence. In a world
of dynamic change, our vision for payment modern-
ization stands as a testament to our commitment to
pioneering the future of banking. With a clear focus
on technology, integration, and service expansion,
CIB is well-poised to maintain its leadership in the
world of payments, ensuring that its customers
continue to access financial services that cater to
their evolving needs.
In the year to come, a groundbreaking step will be
taken in expanding the scope of instant payments to
enable IPN through different CIB digital channels.
This will empower companies and individuals to
make instant payments 24/7, 365 days a year. The
move is pivotal in ensuring business continuity and
promoting uninterrupted growth for businesses
and individuals. Additionally, the implementation
of certified, flow-related, IPN, ATM cash withdrawal
transactions and payment acceptance as an issuer
bank are now pending, awaiting the green light from
the network operator for commercial launch.
International Remittances Hub
Ranked the fifth largest recipient of remittances
globally, Egypt’s financial landscape is significantly
impacted by these cross-border fund transfers.
International remittances are a bedrock of Egypt’s
economy. These flows of funds serve as a crucial
source of foreign currency, making a substantial
contribution to the nation’s GDP. The remittances
sent by Egyptians working abroad provide Egypt
with the foreign exchange it needs to facilitate
international trade and ensure economic stability.
Additionally, remittances serve as essential sources
of investment in housing and infrastructure, thereby
promoting growth in construction and related
industries. This interaction between remittances and
local economic activities results in job creation and
poverty reduction.
Recognizing the pivotal role that international
remittances play in Egypt’s economic and social envi-
ronments, CIB is taking proactive steps to strengthen
the remittance ecosystem. As part of the “Payment-
as-a-Service” paradigm, CIB is developing specialized
APIs for payment initiation within the ACH domestic
scheme. These APIs encompass a range of transac-
tions, including family direct credit, ACH transfers
to other domestic banks, wallet, and in-account
CIB offers a variety of
payments, collections,
and treasury products and
services backed by web-
based and ERP integration
solutions.
transfers. These developments enhance the efficiency
and accessibility of domestic fund transfers, fostering
financial inclusion among Egyptians. Furthermore,
CIB is actively working on an electronic international
remittance platform designed to streamline integra-
tion with exchange houses and money service bureaus
in the Gulf region. This initiative aims to enhance the
technological infrastructure for international remit-
tances, ensuring a faster, secure, and efficient process
for both senders and recipients.
Governmental Payment Products
With CIB’s continued support of the government’s
efforts to automate governmental payments,
we maintain a solid partnership with E-Finance
Company, the Egyptian government’s financial
processor. The company develops and operates
governmental e-payment platforms and channels
to enable customs, tax, and other governmental
authorities to receive and collect payments through
the E-Pay and Corporate Payment Services (CPS)
platforms, which greatly improve the customer
experience. This year, CIB maintained its leading
position and ranked first in the Egyptian market in
governmental e-payment transactions over the CPS
platform, with a 29% market share, as a result of the
implementation of aggressive business focus groups
for selling CPS products. CPS transactions increased
45% y-o-y in volume to 239,000 and 37% y-o-y in
value to EGP 43 billion. Moreover, CPS recorded a
41% y-o-y increase in customer base, a 16% y-o-y
increase in transaction migration rate to reach 66%,
and a 101% y-o-y increase in synergies to EGP 37
million, with a positive impact on governmental
payment revenues, which were up 82% y-o-y to EGP
322 million. A key objective for 2024 is to ease the
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Our Businesses • Digital Banking
burden of governmental payments on CIB branches
by enrolling corporate customers to the CPS plat-
form. We also plan to add other payment types over
governmental platforms to ensure customer satisfac-
tion, increasing our market share and maintaining
our top ranking in the market.
Trade Products
Trade products offer corporate customers the ability
to conduct and manage their trade finance transac-
tions online. They provide customers with transparent
and clear information about their transactions, while
efficiently eliminating paperwork. During 2023, and
despite the severe foreign currency challenges in
Egypt, we witnessed online transactions increase by
10% y-o-y in volume with a value of EGP 95 billion.
There was also a 10% y-o-y increase in transaction
adoption rate to 46% and a 95% y-o-y increase in syner-
gies to EGP 42 million. This had a positive impact on
trade finance fees for online deals, which were up 181%
y-o-y to EGP 690 million. We successfully launched
the first phase of the Trade Transformation Program,
which aims to position CIB as the preferred provider
of Trade Services in Egypt. The program aims to add
more integration capabilities to the current platform
and increase operational efficiency, reduce transac-
tion timing, and increase productivity, all while
maintaining customer experience through increased
automation with higher STP levels.
Supply Chain Finance
Supply Chain Finance (SCF) is an effective way for
corporate customers to improve their working capital
position and strengthen supplier relationships. SCF
provides suppliers with access to financing, lever-
aging the buyer’s stronger credit rating. It provides
short-term credit, which can optimize cash flow by
allowing buyers to lengthen their payment terms
while providing suppliers with the option to receive
payments earlier. CIB is the first bank in Egypt to
bring this kind of digital supply chain finance product
offering to the Egyptian market, a testament to its
solid position as an innovator. During the year, we
managed to hike the SCF portfolio (loans booking)
by 37% y-o-y to EGP 1.3 billion. We continued our
development of the SCF module over the CIB Business
Online platform, working on different kinds of credit
facility modules. The SCF module has the flexibility
to work with seller- and buyer-centric customers.
Looking ahead, we will work on introducing more
SCF programs, techniques, and workflows to become
compatible with different types of credit approvals.
GTB Business Development
The GTB Business Development team provides
the most comprehensive GTB digital solutions for
corporate customers’ daily banking needs, providing
best-in-class digital financial solutions consultancy
and acting as the main stakeholder in developing
corporate business needs. We conduct in-depth
market analysis and research that lead to data-driven
strategies, helping us make proactive decisions
and stay ahead of industry trends, solidifying our
competitive position.
During the year, we enabled different lines of business
to improve their GTB KPIs for all corporate digital
products and channels. We managed to accelerate
migration from branches and manual-initiated trans-
actions to digital channels, optimized cost synergies,
increased digital channels’ penetrations, and improved
customer experience. Several initiatives were developed
to support the offloading strategy, including awareness
visits and trainings conducted through different means
and formats to raise digital channel awareness among
CIB’s staff, as well as marketing campaigns that were
launched internally and externally through multiple
channels. In the year to come, we will explore additional
segments and industries while enhancing the utiliza-
tion of our GTB digital platforms.
Global Securities Services
The Global Securities Services (GSS) division
provides a full range of custody services that serve
the capital market, including equities, governmental
instruments, and corporate and securitization bonds
in local and international markets, with experience
of over 20 years.
The division manages a diversified portfolio worth
EGP 783 billion of assets under custody favor of
multinational customers who are investing in the local
capital market. One of the major key pillars provided is
the securitization services, in which CIB has a signifi-
cant market share as a custodian that reached 36.5%
in terms of the value of bonds issued during 2023,
attaining EGP 35.5 billion out of EGP 97 billion in the
market. This had a positive impact on GSS revenues,
which were up 126% y-o-y to EGP 512 million.
GSS is looking forward to expanding in cash settle-
ment services for governmental sovereigns through
acting as a service provider for cash settlement for
brokerage companies in the secondary market. The
new initiative will represent a new revenue stream,
enriching market liquidity. The new service is
powered by a new central depository, the Egyptian
Central Settlement Depository, which specializes in
handling such investments and is owned by the CBE
and Ministry of Finance.
Digital Banking Channels 2023 Highlights
Online Banking (Internet and Mobile Banking)
Our online banking channels have become the
Bank’s primary channels for our customers, with a
significant increase in usage and penetration rates.
Internet banking recorded 1.9 million transactions,
worth EGP 81.4 billion, a 24% y-o-y hike. The online
banking customer base reached 1.5 million users, up
15% y-o-y. Mobile banking transactions performed
remarkably, up 17% y-o-y to 13.3 million transac-
tions worth EGP 348 billion, a 61% y-o-y hike. Online
Banking migration rates were also up, reaching 98%
for credit card settlements, 97% for internal trans-
fers, and 88% for external transfers. Cost synergy
increased by 30% y-o-y to reach EGP 3.4 billion as of
December 2023.
The division is set to launch a bill payment feature
over mobile banking in order to enrich the value
proposition of our digital channels and enable our
customers to execute all their needed financial trans-
actions through one single app. Looking forward, we
aim to introduce a new user interface (UI) that better
caters to our customers’ needs and enhances their
experience while continuing to offer unique banking
services through our online banking channels,
such as card activation, mutual fund services, and
insurance products. This will serve CIB to add new
revenue streams to the Bank’s distribution channels,
increase NTB onboarding rates, position the online
platforms as effective digital sales channels, boost
assets and liabilities products, reduce branch traffic,
and improve customer satisfaction and convenience.
CIB Conversational Channels (Chatbot, Phone
Banking, and SMS)
As we prioritize customer-centric approaches,
CIB’s conversational channels provide customers
with a seamless banking experience, allowing them
to engage with the Bank at their convenience. We
developed customer journeys across channels,
introducing new services and touch points to handle
the increased demand, ensure consistent and swift
responses to customers’ queries, and enhance
customer communication proactively. This has led to
improvements in customer experience and increased
their loyalty, boosting the self-service usage and
offloading the Contact Center team.
CIB Chatbot
Zaki the Bot emerged as a powerful tool into our
customer service ecosystem by providing instant
support and assistance to our customers, eliminating
wait times. During 2023, Zaki conducted over 550,000
interactions on both the public website and Facebook
Messenger, achieving a cost synergy of EGP 11 million, up
38% y-o-y. To expand our chatbot scope and capabilities,
a new bot was launched for the products and services
of Global Transaction Banking Customers. The new bot
is accessible through the public website and Business
Online platform and handles customers’ inquiries related
to GTB services and products serving different lines of
businesses. As for Retail customers, we enriched content
and enhanced the navigation experience for the most
frequent inquiries to improve the customer experi-
ence and offload the contact center team from similar
inquiries. In the year ahead, we will introduce Zaki on
WhatsApp to provide an additional familiar communica-
tion channel that aligns with the customers’ preferences.
We will also introduce the “Live Agent” feature, allowing
customers to seamlessly interact with the Bank’s agents
and providing a seamless multichannel experience.
Phone Banking
CIB’s phone banking adds value to customers by
offering services that let them bank more quickly and
efficiently wherever they are. In 2023, IVR Migration
Rate (% of eligible inquiries from call center to IVR-self-
service) reached 85%, while the IVR Resolve Rate (% of
calls handled through IVR to all incoming calls) reached
51%. IVR subscribers increased 20% y-o-y to 1.4 million
customers, while cost synergy increased 30% y-o-y to
EGP 141 million. In 2023, we introduced the dynamic
card activation option to allow customers to directly
activate their inactive cards once they are identified.
The new service contributed to activating 70% of cards
that had been activated through contact center and
IVR. As for Business Banking and GTB customers, we
integrated both hotlines to the Contact Center platform
to generate more automated analytical statistics to
understand customers’ needs and behavior. IVR menus
were introduced over both hotlines to enhance the expe-
rience of corporate customers. The initiative helped CIB
enhance user navigation, enabling customers to reach
the proper agent based on priority, paving the way for
the introduction of self-service in the future.
102 • CIB Annual Report • 2023
2023 • CIB Annual Report • 103
Our Businesses • Digital Banking
Monthly digital bookings
+6 EGP/BN
SMS
SMS alerts have emerged as a strategic communica-
tion solution, enabling us to create a seamless and
efficient channel for communication that keeps
customers informed with their financial activities
and relevant updates.
ATM Network
CIB’s ATM network grew to reach 1,339 ATMs and
handled over 79 million transactions, a 9% y-o-y
hike, worth EGP 196 billion, up 28% y-o-y. Average
monthly dispensed cash reached EGP 11 billion,
while average monthly deposits reached EGP 5.6
billion. The migration ratio from branches to ATMs
was 97% for eligible cash deposit transactions and
99.1% for withdrawal transactions, saving EGP 598
million. We focused on the deployment of more
Drive Thru machines in select areas, providing
customers with convenient access to banking
services. Additionally, a contactless service was
launched across the ATM network, marking a
significant improvement in customer experience
and transaction efficiency.
Financial Inclusion Digital Platforms 2023
Highlights
Following the successful upgrade of the CIB Smart
Wallet in 2022, our digital team worked on diverse
fronts this year to ensure high service availability.
The network national switch reports demonstrated
high rates of successful transactions and higher
service availability, maintaining consistent thresh-
olds. Acquisition channels were expanded on the
Smart Wallet throughout 2023 by adding new bank
agent stores across all governorates, with around 1.1
million customers using the CIB Smart wallet. We
worked toward enriching the wallet services to meet
customer needs, introducing more bill payments
and donation services, and optimizing end-to-end
services and operations that continue to project
positively. We also delivered multiple projects
related to CBE and Meeza Digital mandates, such
as Dormancy rules, KYC updates, and Agent Cash in
and out interoperability (issuer side). Additionally,
a new feature to allow customers to self-reset their
password was developed on the Smart Wallet appli-
cation and is pending CBE approval to go live. This
feature will significantly contribute to offloading
the Smart Wallet call center and enhancing the
customer experience.
On the data management front, one of the main areas of
focus throughout 2023, we developed several analytical
reports to improve efficiency and productivity for our
sales and distribution team, as we continuously work
toward optimizing our efforts and embracing flexibility
to drive dynamic changes within market conditions.
Finally, multiple service improvement streams were
established in collaboration with ecosystem entities
throughout 2023, which heavily contributed to the
reduction of overall customer complaints by 40%
compared to 2022. CIB’s digital team developed a prom-
ising roadmap to continue enriching the services f the
CIB Mobile Wallet throughout 2024.
Digital Banking Governance and Support
2023 Highlights
The Digital Banking Governance and Support team
is dedicated to managing collaboration between
the Bank’s different digital channels, internal
stakeholders, the regulator, and other external stake-
holders. In 2023, the division continued its vital role
in governing, managing, and coordinating different
regulations issued by the regulator, with the product
owners and the Bank’s internal stakeholders across
the GTB and digital banking channels, to guarantee
full alignment among all engaged parties. The team
also closely monitored the KPIs and deliverables of
all digital channels to evaluate overall performance,
highlighting areas of improvement. The team will
continue to ensure compliance across the Bank’s
digital products and channels in the coming year,
and it aims to motivate stakeholders to adopt new
technologies, while ensuring that digital products,
strategies, and financial inclusion efforts comply with
regulatory guidelines. We will also continue to elasti-
cize our strategy in line with updates to regulations
and initiatives issued by the government and CBE.
104 • CIB Annual Report • 2023
2023 • CIB Annual Report • 105
We developed several analytical reports to IMPROVE EFFICIENCY AND PRODUCTIVITY for our sales and distribution team. Our Businesses
Financial Inclusion Division
Overview
In 2020, the CBE mandated banks to establish
financial inclusion departments to advance Egypt’s
efforts in helping serve the unbanked and under-
served vulnerable segments of society. The goal is
to develop into a cashless society, while fostering
financial stability and economic development. The
departments were required to consolidate and
develop internal financial inclusion work streams
and act as the single source of consolidated infor-
mation for financial inclusion updates to the CBE.
As such, CIB launched its Financial Inclusion division
and developed a Board-approved, five-year financial
inclusion strategy to provide easier access to financial
services to the most vulnerable segments of society by
harnessing its digital acumen. The division collabo-
rates with other lines of business to build on existing
initiatives while developing and consolidating the
Bank’s strategy, products, services, and programs
related to financial inclusion.
The department aims to offer a consolidated,
sustainable, and profitable work stream for financial
inclusion, creating shareholder value and positive
ROE for investors, while serving the community and
fostering inclusive finance.
2023 Highlights
In 2023, the Financial Inclusion division categorized
the targeted underserved and unbanked segments
into three sub-segments:
Blue Collars Workers
This sub-segment comprises lower income, techni-
cians, and temporarily employed individuals whose
wages may be considered regular. This group is
thus a significant target sub-segment for financial
inclusion due to the high revenue generated per
customer in comparison to other sub-segments.
Women
According to national data, the number of women
over 16 years old is 31.8 million as of 2022, shaping
48.6% of the Egyptian population who are eligible
to open a financial account. Of this number the
financial inclusion rate is 57.6% as of 2022.
Youth
As defined by the CBE, the youth segment consists
of people between the ages of 16 and 35. Egypt’s
youth as of March 2022 consisted of around 35.5
million individuals.
The division also participated for the third
consecutive year in the national Haya Karima
(Decent Life) initiative in Egypt, led by the
Ministry of Planning and the CBE. The initia-
tive aims to improve the lives and livelihoods of
marginalized groups. The Bank’s collaboration
extended to provide financial literacy and aware-
ness programs, in addition to offering simple KYC
financial products to underserved, vulnerable
communities in rural governorates. Through the
program, CIB conducted awareness and literacy
sessions for more than 7,500 individuals in 2023.
Additionally, CIB is actively participating in six
annual CBE financial inclusion initiatives, which
have enabled broader NTB customer acquisitions
for the Bank.
The year also saw CIB launch its Differently-
Abled Program, in alignment with Egypt’s 2030
vision and the CBE’s directives and regulations.
The program aimed to promote the inclusion of
differently-abled graduates in the workforce and
equip them with the necessary skills to effectively
navigate the workplace. To date, 60 candidates
have graduated.
The Bank’s L&D department, alongside the Financial
Inclusion division, conducted internal bank-wide
staff awareness sessions about financial inclusion
to familiarize staff members with the importance of
the national objective of financial inclusion and the
newly launched simple KYC products.
Financial Inclusion Products
CIB Smart Wallet
The CIB Smart Wallet (SW) was launched in
2016 primarily to serve unbanked customers by
providing a convenient, secure, and cost-effective
way to make financial transactions through
mobile devices. Through the wallet, customers
can easily pay bills, recharge their mobile lines,
transfer money to other wallet holders in Egypt,
and deposit or withdraw funds from any ATM
machine or any of CIB’s authorized banking agent
outlets. The application also supports contactless
payments through QR code purchases.
As of the end of August 2023, Smart Wallet users
reached 1.1 million, with a 21% activity rate for 30
days.
Bedaya Accounts
The LCY account was launched in November 2021,
targeting individuals, entrepreneurs, housewife-
focused micro enterprises, youth, and freelance
professionals. The account aims to include soci-
ety’s unbanked segments, eliminate entry barriers,
and encourage the unbanked population to enter
the banking sector through the simplification of
the account-opening process. Bedaya also aims
to provide an interest baring savings account to
previously excluded segments of society.
Prepaid Cards
Prepaid cards (Meeza cards) are exclusively issued
for Egyptians, without the need to open a bank
account, using their valid national ID. Customers
can easily withdraw cash from any ATM in Egypt
and purchase from any in-store merchants and
Egyptian e-commerce platforms using their cards.
We are currently in the process of offering prepaid
cards through service providers and the Financial
Inclusion sales team, pending CBE approvals.
2024 Forward-Looking Strategy
The division’s strategy for 2024 is to develop and
utilize a digital platform that offers payments,
savings/investments, instant lending, and loyalty
services. The platform would also have the ability
to connect to third-party services to offer other
value-added financial services, such as insur-
ance. It would be built to be card/account-driven
(i.e. does not fall under the wallet regulations),
utilizing local payment rails (IPN), and, ideally, be
cloud-based (once regulations permit).
2024 Marketing Strategy
Digital Media
Throughout 2024, we plan to promote financial
inclusion products and services through ongoing
campaigns, with a focus on all the use-cases and
value propositions.
On-Ground Activation
On-ground activations will be launched throughout
the year to promote and offer the Bank’s financial
inclusion products, particularly during the CBE
Financial Inclusion initiatives, Haya Karima, and
Egyptian Families Development Project initiatives.
Financial Literacy
Financial awareness and literacy activities will be
extended throughout the year across Egypt’s gover-
norates, focusing on women and youth, through CBE
initiatives and partnerships with NGOs, women-led
platforms, and youth centers, among others.
Financial inclusion Acquisitions
Smart Wallet Cost Per Acquisition
The Financial Inclusion team succeeded in optimizing
the acquisition cost from the bank agents network,
reducing it by 26% in 2023, by establishing a set of KPIs
for bank agents to decrease the cost per wallet and
adding a new bank agent, thereby lowering acquisition
cost and diversifying acquisition channels.
106 • CIB Annual Report • 2023
2022 - CIB Annual Report
107
04•
Support
Functions
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2022 - CIB Annual Report
109
Bank-wide e-learning modules
15
Support Functions
IT & Operations
A key enabler of CIB’s longstanding leading position
in the market is the strategic incorporation of scalable
technologies in all our services, as well as continually
enhancing security systems to manage possible cyber-
security threats and risks while ensuring optimum
operational efficiency.
The COO area succeeded in building a strong, cohe-
sive environment between all COO area stakeholders,
creating the necessary digital transformation strategy
enabled by technological advancement, thereby
enhancing products and services and achieving overall
operational excellence.
Operations continued to accommodate business
growth, not only by supporting the digital trans-
formation journey but also by improving and
increasing the efficiency and productivity of front
office and back-end operations.
IT is progressing with the process of implementing
a full-fledged stability program aimed to support
overall business growth, beginning with the increase
in the number of customers. This has necessitated the
enhancement of system monitoring and implementing
an ongoing stability program across critical systems.
CIB’s Business Banking Sector is an integral part
of the economic landscape. Accordingly, there was
added focus this year on implementing the latest
technologies, whereby additional capabilities will
continue to be introduced. This includes customer
onboarding and debt collection, which will enable
a set of dedicated modules to better serve the busi-
ness banking segment. For the Corporate Banking
Sector, the full credit cycle, including the origina-
tion, fulfillment, and servicing stages, is currently
being rolled out in phases.
By implementing open banking, we are starting a
new chapter in our banking evolution, granting us
the ability to accelerate development and flexibly
integrate new and existing services to enhance CIB
customers’ experience while exploring new business
opportunities.
Orchestrating the digital strategy with both our tech-
nology and operations activities has required aligning
all initiatives to cohesively drive transformation. The
banking sector is continuously driven by digital trans-
formation. CIB’s successful digital transformation is
driven by its ability to reimagine its approach across
the business, shape the technology landscape, and
innovate an operating model that led to exceptional
business achievements. This is done in conjunction
with diligently working on lower cost-to-income
ratios, increased customer acquisition and retention
rates, and a faster time-to-market.
Because our people are our best and greatest asset, CIB
always strives to be the employer of choice. This year,
the COO area continued to foster communication and
collaboration between all departments and lines of
business, allowing for better engagement and produc-
tivity. We recognize the significance of developing
and empowering our employees to keep up with the
rapidly changing business landscape through ongoing
training and exposure to enhance employees’ capacity
and skillset.
The Bank’s advancement on the technological, opera-
tional, and security fronts allowed CIB to offer a more
agile banking environment, which has increased effi-
ciency, enriched resilience, streamlined operations,
and improved productivity, ultimately benefiting the
end-user experience.
Information Technology
Our IT strategy continues to move toward automation
and digital adoption to guarantee enhanced customer-
centricity, in alignment with the Bank’s strategy and
business growth targets. This cements IT as a true
enabler and cornerstone for business success.
In alignment with CIB’s digital strategy, IT continues
to expand its digital journey. This is achieved by facili-
tating innovative financial solutions, continuously
enhancing customer-centricity, and offering a seam-
less experience by focusing on enhanced stability
of systems and applications, further increasing
customer satisfaction. With a growing customer
database and increased transactions, IT underwent
a stability program that targets critical systems and
digital application stability. The primary focus was
to enhance functions, such as core banking and
customer-centric applications.
Efforts are ongoing to enhance the stability of CIB’s
core banking systems, including close-of-business
(COB), effectively reducing turnaround time and
resulting in faster COB report generation. The Core
Banking database slimming resulted in an almost 70%
enhancement, boosting capacity and migrations to the
latest technology and avoiding repeat issues.
On the customer front, internet banking underwent an
extended stability plan that led to restructuring activi-
ties, resulting in the release of an updated version.
Additional features were applied to bill payments and
loan origination forms, which provides a more stable
performance and high availability, thus enhancing the
overall customer experience.
With increased customer activity, the ATM and POS
Switch was enabled for active-active configuration. This
resulted in distributing card transaction traffic over
two servers to prevent failure caused by overloading,
which improved performance and the availability of
ATM, POS, and internet banking services.
During 2023, efforts to upgrade CIB’s workflow systems
to the latest versions were completed. The latest
comprehensive solution has tools that can simplify
designing and deploying business solutions; a user
interface that is ready-to-use, flexible, and customiz-
able for specific business needs; and an active-content
infrastructure that helps flexibly manage different case
models and activities. It also offers a set of capabili-
ties that integrates information, processes, and users
to provide a 360-degree view of work to enhance
productivity and workflow performance and facilitate
workflow throughout the organization.
Furthermore, CIB’s middleware platform (ESB)
was upgraded to the latest modern release. The
project included the modernization of the platform,
migrating existing integration services to the new
platform, and modernizing some services to start
the adoption of micro services.
IT integrated all existing and new services across all
CIB platforms, supported by a hybrid cloud approach
using the latest technology to integrate services from
branches, digital channels, mobile and internet
banking, IVR, business processes, and CRM.
As part of the vision to revolutionize digital banking,
microservices were implemented using Cloud Pak for
integration, which provides a simple, unified experi-
ence that connects applications to data. Implementing
this kind of architecture has resulted in unprecedented
simplicity in version maintenance, dynamic scaling
service governance, and service discovery.
Security
With the ever-evolving complex environment in which
we operate, security and resilience have always been
key areas of focus for CIB to maintain our leading posi-
tion in the financial sector. The Bank is committed
to protecting our customers, employees, assets, and
reputation from a wide range of threats, such as
cyberattacks and different types of disruptive events.
Various investments have been made to ensure the
robustness of our systems, processes, and capabili-
ties to prevent, detect, and respond to these threats.
This ensures the continuity of our operations and
services and our compliance with relevant regulations,
industry standards, and best practices.
Further improvements to our employee and customer
awareness program were made during 2023 through
various internal and external channels to deliver key
awareness messages to employees and customers.
This has fostered a sense of security within the
Bank and for our customers by using our digital and
online channels. An additional layer of protection for
our mobile applications against malicious attacks,
tampering, and reverse engineering was introduced
this year to secure customers’ data and transactions,
as well as our trusted brand reputation. Moreover,
we revamped the core technology of our Security
Operations Center to introduce more advanced
110 • CIB Annual Report • 2023
2023 • CIB Annual Report • 111
Support Functions • IT & Operations
The Bank is committed to
protecting our customers,
employees, assets, and
reputation from a wide
range of threats.
capabilities to enhance our monitoring and visibility,
as well as improve our efficiency and effectiveness in
detecting and responding to cybersecurity incidents.
A full revamp of our endpoint security suite was also
implemented, providing better visibility on the activi-
ties and behaviors of endpoints across our network
and enabling real time detection and response to
advanced threats. It also provides robust protection
for our endpoints against malware, ransomware,
exploits, and other attacks, supporting our capabili-
ties to collect forensic evidence for proactive security
incident management and response.
Additionally, 2023 witnessed the expansion of our
Business Continuity testing and exercising scope
with the introduction of new testing scenarios and
activities to validate the viability of our BCM plans
and the reliability of our capabilities to ensure effective
response in case of any disruption.
Operations
The impact of Operations’ ongoing transformation
strategy is reflected in our continued business growth
not only by supporting digital transformation but also
by increasing the efficiency and productivity of front
office and back-end operations, while fully abiding by
the regulations and controls in place.
The Operations Group’s key strategic goals are based
on customer-centricity. The Group concluded a
roadmap to optimize service levels across several
customer-facing channels, while maintaining
customer satisfaction and decreasing complaints.
Focus was placed on reducing operating costs by
applying the optimum cost synergies, starting with
migrating more services to our digital channels;
promoting the existing automation tools, such as RPA
for branch staff and across the centralized operating
areas; and, accordingly, improving our Straight-
Through Processing (STP) rates, and minimizing
headcount requirements through increasing efficiency
and productivity. The main approach simplifies and
streamlines processes through enhanced digitaliza-
tion for a better customer experience by reducing
turn-around time (TAT), which, in turn, reduces
customer serving time.
Since customer touchpoints are the main contribu-
tors to CIB’s success, and branches are the most
influential point, a full-scale roadmap is set to
implement different solutions across branch opera-
tions. The aim is to enhance the customer journey
by reducing customer waiting time and upgrading
the customer service touchpoints user-experience,
including interactions with ATMs, tellers, cash
centers and contact center reps.
CIB is the first bank in the market to offer a cash
settlement service and cash flow payments for non-
banking entities, in compliance with CBE regulations,
after transferring the depository of the government
debit instruments to the Egyptian Central Securities
Depository (ECSD). CIB is currently the settlement
bank for the leading companies CIBC, Ostoul, and
Prime, handled by the Custody department.
In light of the continuous and successful collabo-
ration between the Transformation Office, branch
operations, and corporate support branches, as well
as the GCR departments’ focus on increasing process
efficiency and eliminating the current challenges
faced across the Bank, the Institutional Banking
(IB) KYC Unit under the Operations Group – Branch
Operations and Corporate Support was established.
The establishment of the unit demonstrates our
commitment to upholding the highest standards of
compliance and ethics, while also ensuring that our
customer always comes first with smart controls.
This overcomes the current challenges faced by our
corporate customers in the KYC process, including
high return rates and a lengthy TAT.
The Operations Group has been focusing on increasing
the efficiency of available resources to maximize their
productivity while meeting or exceeding quality and
service level benchmarks. Moreover, despite several
services being migrated to alternative channels, the
number of customer transactions continues to rise
y-o-y with an increase in the Bank’s customer base.
This increase was successfully absorbed while main-
taining optimum productivity and performance.
Efforts are underway to transform the Bank’s contact
center into a revenue generation hub. Different initia-
tives and investments are in the pipeline to expand
and enhance the contact center’s capacity and service
model. Our service-oriented contact center targets
lowering Average Handling Time (AHT), ensuring
lower cost, optimal staffing, and increased opportuni-
ties for cross-selling and upselling additional services
through stronger customer relationships.
The Operations team works with all stakeholders
on reviewing our current processes and identifying
potential areas for optimization. This could involve
analyzing customer flow patterns, identifying
bottlenecks, and exploring technology solutions
that could expedite transactions without compro-
mising service quality.
In 2023, the COO brought together technology and
operations stakeholders to work on a complete
customer experience roadmap, where services,
processes, and products are reviewed and analyzed
to resolve any friction in the customer experience
journey, with targeted changes that create high
value. Through this ongoing embedding of customer
experience consciousness within the organization
and its operating model, CIB will always provide
superior customer experience and realize its
tangible business impact.
112 • CIB Annual Report • 2023
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Support Functions
Human Resources
2023 new hires
1,517
CIB values diversity in its
workforce and is committed
to providing equal
opportunities irrespective
of gender and background.
As CIB continues to achieve substantial growth, the
Bank is more adamant on developing its Human
Resources Management to better support our
people as they are fundamentally responsible for
our excellence. HR will continue to engage in regular
planning to address long-term strategic needs,
adhering to our core values and guiding principles.
The department’s primary objectives are inspiring
confidence in our operations, attracting high-caliber
employees, and fostering a high-performing and
engaging environment.
2023 Highlights
Talent Strategy
Our Talent Strategy revolves around reinforcing our
commitment to retaining, motivating, developing,
and attracting highly qualified talents. Investing in
our employees remains of paramount importance,
as they are the cornerstone of our success. Thus,
while leveraging the skills and experience already
present within the organization, CIB’s external
acquisitions further position the Bank for long-term
sustainable performance. This year, we hired 1,517
employees, encouraged the internal mobility of 924
staff members, and promoted 880 employees. CIB
values diversity in its workforce and is committed to
providing equal opportunities irrespective of gender
and background. The interviews and assessments
are standardized, guaranteeing an unbiased and just
hiring process.
In 2023, the HR team carried out 17 employment
initiatives across universities and local employment
fairs in Egypt, increasing brand awareness, announcing
employment opportunities, and expanding our
network among other organizations.
Building on previous efforts to identify and develop
high-performing employees, HR launched the Talent
Management program responsible for identifying
top-performers bank-wide through international
assessments and efficiently streamlining corporate
succession. As such, our competency evaluations
feed into our talent promotion process, allowing
us to build a qualified talent pool, encourage high
performance, and ensure talent retention.
Business Enablement and Skills Development
Business Enablement
In 2023, HR contributed to business enablement, in
alignment with the Bank’s strategic goals and direc-
tions, by providing more than 28 customized tracks
across different areas dedicated to employee develop-
ment, enabling our employees to acquire additional
knowledge to complement their skills.
Moreover, the HR team designed an employee-
tailored training guide with different learning
domains to promote development and empower
employees in achieving their strategic goals. More
than 426 training rounds were offered throughout the
year. The Bank also offered international and local
certifications, with 29 certificates acquired by 91
employees to support career progression ambitions.
In 2023, CIB received the prestigious ISO 29993 Certification
for Learning Services Management System, in recognition
of HR’s dedication to providing world-class learning
In 2023, CIB received the
prestigious ISO 29993
Certification for Learning
Services Management
System, in recognition of
HR’s dedication to providing
world-class learning and
development opportunities for
our employees, empowering
them to reach their full
potential.
and development opportunities for our employees,
empowering them to reach their full potential.
In alignment with the Talent Management Framework,
a comprehensive international Leadership Excellence
program was conducted to 35 selected members from
the Bank’s management, paving the road for more
talent development activities.
Customer Experience
In alignment with CIB’s strategy to provide an
exceptional customer experience, HR laid out
targeted developmental learning tracks, made
available with additional courses, experienced
by more than 2,000 trained employees. To boost
morale, HR recognizes the Retail Banking customer
experience heroes in the Bank’s quarterly Customer
Experience Success Stories and Customer Experience
Gurus newsletters.
Digitization of Learning Experience
In alignment with the Bank’s direction toward
advancing its digitization skill set, the HR team
continues to incorporate digitization in the training
and learning opportunities offered to employees
through different learning tools and platforms. This
includes a wide network of international digital
platforms, such as LinkedIn, Thomson & Reuters,
Udemy, ARC institute, Harvard, Coursera, Wharton,
and the IMF, as well as cross-functional bundles
internally developed in conjunction with the busi-
ness, including Trade Finance School, Legal School,
and Arabic Writing videos. This concluded with
the training of 3,099 employees, in addition to 15
bank-wide e-learning modules completed by 7,500
employees in 2023. This supported the business in
developing the skills of the Bank’s wider population
and allowed it to reach out to them in a highly effi-
cient manner.
Multilateral Development Initiatives
In light of the wider macroeconomic events and
changes that took place in 2023, HR took multiple
responsive actions as follows:
• Exporting of international gurus and professionals
to the local boundaries through the “Meet the
Expert” series, which was conducted over three
events with more than 1,000 attendees from
across the Bank.
• Expanded CIB’s network of international vendors
and training partners, giving employees access
to offshore expertise from IMD, Frankfurt, LIBF,
INSEAD, and others. More than 300 employees
attended more than 15 programs.
• Continued to support organizational develop-
mental directions, conforming with regulators’
sustainability mandate. This concluded with
more than 242 trained employees, in addition
to 1,034 employees who successfully completed
the Sustainability Capacity Building e-learning
bundle.
• Supported the Bank in its efforts to improve
culture through Culture Transformation
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activities attended by more than 200 employees,
paving developmental paths for Culture
Champions and Agents.
• Provided non-conventional gears and paths for
reaching out to staff by introducing the “CIB Book
Series” tackling different daily business skills and
practical guidelines.
East Africa Developmental Initiatives
In 2023, HR successfully completed another round
of the CIB East Africa Analyst Program attended
by 20 young Kenyan talents to complement the
Bank’s strategy toward its Africa expansion plan.
This is a comprehensive credit technical program
led by our knowledgeable instructors with the goal
of supporting the African financial ecosystem. HR
also supported CIB Kenya through providing it
with multiple developmental tracks and paths
that concluded with a “CIB Kenya Annual Offsite”
program attended by all the bank’s staff.
Youth Development Initiatives
In line with the nation’s focus on youth empowerment
and financial inclusion, we established several initia-
tives dedicated to shaping the labor market as follows:
• Launched the CIB Summer Internship Program,
which is the annual summer program that
concluded with training more than 16,000
undergraduates in 2023, in addition to having
a dedicated “CIB Case Study” on LinkedIn in
acknowledgement of CIB’s role in the shaping of
Egypt’s digital learning roadmap.
• Cooperated with educational institutions and
universities, in alignment with Egypt and the
CBE’s direction for corporate support to the
educational ecosystem. This includes a recent
initiative of collaboration with Nile University
in developing a special track under the name
of Sustainable SME Financing, being the first
specialization of its kind in Egypt and in the
Middle East. This collaboration concluded with
having 46 graduates completing the program with
a better understanding of the SMEs market and
the concept of sustainable financing.
Organization Effectiveness Initiatives
During 2023, CIB’s strategy continued to focus
on promoting organizational effectiveness by
improving engagement and enablement levels,
while enhancing HR’s value proposition through
the following initiatives:
• Recognition Program
Throughout the year, HR capitalized on the
existing recognition program to provide adequate
engagement and empowerment tools that fit all
functions across all levels within CIB, as well as
to enhance the bank-wide recognition culture.
• Employee Wellness Program
HR prioritized employees’ mental, physical,
and financial wellbeing in 2023 to boost
morale and create a positive work environ-
ment. HR continued to provide a workplace
counseling service and conducted bank-wide
webinars on mental health topics to raise
awareness across the organization. HR also
launched the one-on-one texting service for
mental health support.
Furthermore, CIB highlighted the vitalness
of physical wellbeing through the Wellbeing
Initiative with the aim of helping employees
with resources and workshops on a variety of
wellness topics, including nutrition, healthy
sleep habits, ergonomics, stress reduction, and
exercise. Finally, financial wellbeing initiatives
are being developed to enable employees to
lead a healthy financial life, empower them
to manage their finances, and reduce overall
financial stress.
• Life at CIB – Social Media Page
In 2023, CIB made significant strides in bolstering
its employer brand presence on these platforms,
further solidifying its reputation as the employer
of choice. Notable approaches include show-
casing our commitment to diversity, inclusion,
and women’s empowerment initiatives, in addi-
tion to highlighting our active participation in
career events and summits targeting diverse
audiences and talent profiles. Moreover, Life at
CIB promotes CIB’s brand image and is consid-
ered an effective sourcing tool, enabling us to
identify and fill vacant positions across different
areas across the Bank.
• Flexible Work Arrangement (FWA)
In 2023, CIB continued to adopt the hybrid work
approach established during the pandemic,
providing a flexible work environment and
adapting to the global digital transformation trend.
Gender Diversity and Inclusion
At CIB, our commitment extends beyond financial
success; we are dedicated to fostering an environ-
ment that supports individuals in reaching their
full potential. We proudly integrate and embrace
ESG practices into our journey. Our commitment
also extends to promoting equality, inclusion, and
diversity. We are keen on providing equal opportu-
nities and treating all employees with dignity and
respect. These principles facilitate the attraction and
retention of a diverse workforce, creating an inclu-
sive workplace where every individual feels valued.
We are currently particularly focused on gender
equity and differently abled employees through the
following initiatives:
Helmek Yehemena
After conducting a thorough analysis to identify
areas with low female representation, HR launched
the fourth round of the Helmek Yehemena program
that aims to promote female empowerment in the
workplace in those areas, mainly in the branches
network. The program aims to encourage young
female talents in the Upper Egypt and Delta regions
to join the workforce. It supports women through
short training programs to enable them to discover
and expand their untapped potential and equip them
with the necessary knowledge and skills to become
members of CIB. We started off with the city of
Hurghada and aim to visit Menoufia, Mansoura, and
Beni Suef governorates to increase female participa-
tion on those areas.
Women in Tech
CIB launched the fourth round of the Women in Tech
Program that was introduced back in 2019. This year’s
program took place in partnership with the German
University in Cairo (GUC), targeting senior female
students during their final semester. The aim of the
program is to address the gender gap in the Bank’s
technology departments and build up talented
women to work in technology divisions, such as IT,
Security and Resilience Management, and Global
Transaction and Digital Banking.
She Is Back
She Is Back helps mothers in their transition back to
work after their maternity or unpaid leave. Women
are informed of any external or internal changes
that affect both the Bank and their own respective
roles during their absence. In 2023, two rounds were
organized for more than 35 women.
Carerha Summit
In 2023, the HR team successfully participated in the
Carerha summit, the 1st women’s career summit in
the MENA region promoting work-life balance and
fostering diversity and inclusion in the workplace.
The summit is built around the idea that every
woman deserves the opportunity to achieve her
professional goals, regardless of circumstances. It
allowed CIB to emphasize its commitment toward
promoting a more inclusive workplace by sharing a
wide range of job opportunities and hosting several
activities, including a panel discussion on Women
Shaping the Future of Data Science. Two workshops
were conducted on different topics, such as interview
skills tips for winning the job offer and IT service
management. The event is part of the HR team’s
ongoing commitment to gender equality and women
empowerment initiatives with CIB.
Women Development Track
HR provided a set of developmental tracks for women
across various managerial levels, with 2,169 women
attending trainings in 2023, in addition to a large
presence of women in the HR summer program where
females represented more than 60% of attendees.
Workplace Anti-Harassment Campaign
In 2023, HR worked on an anti-harassment campaign
to enhance CIB employees’ understanding of the
workplace anti-harassment policy and to normalize
the right to report inappropriate behavior. As part of
the initial awareness phase, CIB also implemented an
e-learning module along with sending an awareness
message to all employees.
Better Together
In 2023, we continued to reinforce our commit-
ment to cultivating and preserving an inclusive
workforce by facilitating employment opportuni-
ties for differently abled individuals. This initiative,
which commenced in 2020, and the Ader B Ekhtelaf
initiative, which was introduced in 2022, both aim
to provide job and development opportunities for
differently abled individuals across various branches
and departments within CIB. HR successfully
116 • CIB Annual Report • 2023
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Support Functions • Human Resources
new hires. Additionally, HR customized a training
program for current front-line staff called “Customer
Experience for Special Needs,” which resulted in the
training of 595 front-line staff members.
Reward Management
CIB is committed to a fair and responsible remunera-
tion approach to reward and recognize exceptional
performance. CIB’s remuneration approach and
practices are gender-neutral, and we are committed
to eliminating any bias in our practices. Our competi-
tive remuneration and benefits packages attract top
talents and strengthen employee loyalty.
In 2023, CIB’s remuneration structure continued
to be based on employee performance reviews to
maintain its competitive pay program. HR also
introduced a salary increase framework, based
on the Bank’s strategic direction, that combines
employees’ performance with their positioning
within CIB’s internal salary structure that bench-
marks its competitiveness against market best
practice. This was created while considering market
conditions, as well as offering competitive packages
to face hefty competition from rivals.
Moreover, to maintain our competitive edge, we
accommodated departmental performance in
driving employees’ compensation, thus shifting
management direction toward maximizing its profits
while positively affecting employees pay.
CIB benchmarks its compensation and benefits
scheme offerings against local and regional players
to strengthen its value proposition and enhance
employee enablement and satisfaction.
CIB is committed to a fair
and responsible remuneration
approach to reward and
recognize exceptional
performance.
continued the hiring process, reaching a total of 113
differently abled candidates, out of which 18% were
females since the start of the program. Moreover,
to ensure that we offer them the necessary support
for their success, we will enroll all managers who
have differently abled team members in the LinkedIn
E-Learning course titled “Supporting People with
Disabilities.” This course will equip managers with
the knowledge and skills needed to know how to deal
with the differently abled population and provide
them with the best possible support.
Furthermore, HR has expanded its efforts by orga-
nizing and implementing “CIB Career Day” for
differently abled individuals in collaboration with
the Ministries of Social Solidarity and Labor, and in
alignment with the directives of the CBE. This event,
exclusively designed for differently abled individuals,
provided meaningful opportunities in the fields of
banking and finance. Over 1,000 differently abled
candidates participated in engaging sessions and
workshops, equipping them with valuable busi-
ness skills. Through this event, CIB emphasized its
commitment to driving impact and fostering a more
inclusive workplace.
In an effort to provide better customer experience
for customers with disabilities, HR incorporated
training on sign Language into the new hires’ induc-
tion program, which was attended by more than 627
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Marketing and Corporate
Communications
Global and local market turbulence, such as the ongoing
Russia-Ukraine war, rising inflation, and, in the case
of Egypt, currency devaluation, has strained many
companies. However, despite this instability, CIB’s
core operations remain firm as the Bank remained
committed to achieving growth in the face of obstacles.
2023 Highlights
High-Net-Worth (HNW) Experiences and
Offerings Catering to Our Customers’ Lifestyle
The essence of premium banking lies in the availability
of customized services and exclusive, unconventional
luxury experiences, which is why we have been focusing
in 2023 on enhancing the lifestyle experiences platform,
offering our Private and Wealth customers exclusive,
elite, and progressive experiences every step of the way.
We have grown our network of exclusive partnerships
by maintaining the current partnerships, securing a
bundle of exceptional benefits and privileges, engaging
with our clientele throughout the year, as well as offering
exclusive gifts and perks that match our brand image
and value. As such, CIB continues to capitalize on our
adopted strategy to continue creating a remarkable
customer story and foster loyal brand ambassadors
across the years.
We aim to support unbanked individuals in accessing
the Bank’s products and services to secure their future
and gain financial independence. In light of the CBE’s
dedication to catering to the banking needs of the
differently abled segment of customers, CIB launched a
special program to promote the inclusion of differently
abled graduates in the workforce and equip them
with the necessary skills to effectively navigate the
workplace. The program ended successfully with 60
candidates graduated.
CIB’s L&D department, alongside the Financial
Inclusion division, carried out internal bank-wide
staff awareness sessions about financial inclusion to
familiarize staff with the importance of the national
objective of financial inclusion and the newly launched
simple KYC products. The Bank also has a number of
ongoing activities serving the Hayah Karima initiative.
CIB Business Banking: Empowering SMEs
and Driving Growth
CIB Business Banking is the leading provider
of financial services for SMEs in Egypt. We are
committed to empowering SMEs and driving growth
by offering innovative financial products and services,
educational resources, and support programs.
In parallel, we have been working on exclusive
collaborations with several platforms covering lavish
retail shopping, wellness and beauty, and others to
bring to our HNW customers exclusive discounts and
special experiences from high-end providers by using
their CIB Premium card. As a result, CIB continues
to lead the market by tailoring lifestyle experiences
to boost customer satisfaction and loyalty.
Financial Inclusion: Serving the Underserved
CIB launched dedicated initiatives targeting underserved
customers throughout the year. This falls in line with CIB’s
core goal of promoting financial inclusion and literacy by
continuing to build on our existing product and service
offerings, with the goal of significantly increasing the
number of financially included individuals.
Our award-winning SME banking solutions include a
comprehensive range of lending products, the first-of-
its-kind unsecured standalone credit card targeting
small companies, and an educational platform called
the Growing Together Academy. We also support
women in business and the unbanked through our
She’s Next initiative and Bedaya accounts.
We are proud to be the official sponsor of the Food
Export Council, and we are committed to supporting
exporters in achieving their growth goals.
Digital Marketing Channels
We witnessed the influential impact of our digital
marketing activities, particularly always-on
campaigns, with a significant increase in the number
Facebook Follwers
1.3 MN
LinkedIn Follwers
908 K
Instagram Follwers
124 K
Youtube Subcribers
57.7 K
of our social media followers and engagement. In
addition to expanding our social media footprint to
include X ( formerly known as Twitter) and TikTok, we
aim to reach out to the digital population and create
new channels of communication with our customers.
Despite working with half of our usual spending on
Digital Sales, card leads have almost matched 2022
levels and are expected to exceed them by 30% by the
end of the year. This is due to a significant increase
in Apply Online conversion rates. We also estimate
that at least 15% of card sales and 19% of loan sales
to date were exposed to digital marketing activities
on Facebook. Loan leads came lower than 2022 due
to reduced spending and focus on existing customers
only, minimizing the risk of acquiring low-quality
leads. August 2023 saw an introduction of CLI (credit
limit increase via online applications). This has
contributed to a 370% y-o-y increase in overall CR
and leads. Nevertheless, excluding CLI to compare
apple-to-apple with 2022, there is a 7% increase in
leads from 2022, despite narrowing our targeting to
only existing customers.
CIB Website
Although CIB witnessed a slight decrease in the number
of users and sessions on the website this year, the
bounce rate decreased by 57%, reflecting an increase
in time spent by targeted users on the website. As for
the returning visitors, the personalized experience
launched in 2022 is proving successful. Personalized
content has not had a significant impact on engage-
ment rate. However, users exposed to personalized
content have a cards conversion rate of 16% compared
to the average 7.4%. Personalization has not had a
tangible impact on loan conversion rates.
Accordingly, our plans include expanding the scope of
personalization by including more website visitors in the
personalization funnel. We will also use AI technologies
to optimize existing funnels and create new ones.
Marketing Analytics
Customer behavior is ever-evolving, requiring the
Marketing department to closely monitor customer
behavior, lead generation trends, and utilize and
adopt technological advancements.
To do so, we established a Marketing Analytics
function, which has automated most of our reporting,
enabling us to utilize internal data for fast analytics
pre-campaigns and bridge the gap between website
traffic personalization, online campaigns, and
customer behaviors.
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Support Functions • Marketing and Corporate Communications
CIB is in the process of expanding this function to
ensure the department’s cohesiveness and enhance
learning, aiming to continuously adapt the formula to
encompass the plethora of variables. In 2023, the team
expanded the efficacy of SEO activities and offline part-
nership activity assessments. We are also developing a
marketing model to assess the impact of any/all spend,
organic performance, and market conditions (such as
FX rate) to enhance the performance of multiple objec-
tives, starting with cards and loans.
CIB Credit Cards: The Smarter Way to Pay
and Get Rewarded
CIB’s credit cards had a stellar year in 2023, with record-
breaking customer acquisition, balance growth, and
spending. The number of new credit cards issued each
month increased by 14%, along with an increase in net
revenue (ENR) of almost 23% y-o-y.
This growth was driven by several factors, including
the expansion of CIB’s credit card product suite and
the enhancement of its existing credit cards through
strategic partnerships with companies like Amazon and
WaffarX. CIB also successfully launched the CIB-noon
credit card, the first e-commerce co-brand credit card
in Egypt. The card has been well-received by customers,
with a significant number of cards issued and a plastic
activation rate of over 90% in the first three months.
This co-branding and partnership strategy helped CIB
expand its customer base to reach new markets.
CIB also launched acquisition campaigns for the ISIC
card, which is unique in the market, and focused on
its female-targeted Heya credit card for shopping to
boost ENR by doubling customer points. CIB also
promoted its Mileseverywhere EgyptAir credit card
to travelers. Finally, CIB enriched its current credit
card offerings by providing more enticing rewards
and increasing loyalty engagement.
CIB Kenya
We have diligently executed branding, marketing,
and communication strategies to further CIB’s stra-
tegic plan for expansion in Africa and enhance trade
finance and credit solutions for Egyptian corporates
engaging with African nations. This comprehensive
approach has resulted in the successful rebranding
of all branches under our new identity. The proven
success of CIB Egypt is currently being replicated in
our newly established branches in Kenya.
Merchandise Marketing
Introducing Standardized Air Scent and
Updating Branch and ATM Locations on Digital
Platforms
Knowing the importance of creating a positive customer
experience, CIB is continuously on the lookout for new
ways to enhance our customer journey. In 2023, we
introduced the Standardized Air Scent at our branches
and headquarters. The standardized scent has been
carefully crafted to be both inviting and memorable,
setting us apart from our competitors. To further elevate
the customer journey, we have updated our branch and
ATM locations on all major digital platforms, such as
Google Maps and Apple Maps, making it easier for our
customers to locate us.
Expanding Branding Image at Egyptian Airports
Building on the success of previous years by
expanding our branding image at the main Egyptian
airports, CIB has secured a branding exclusivity deal
across the financial sector with two new airports:
New Capital and Sphinx.
We are committed to providing our customers with the
best possible experience. By introducing Standardized
Air Scent, updating our branch and ATM locations on
digital platforms, and expanding our branding image in
Egyptian airports, we are making it easier for customers
to find us, do business with us, and enjoy the experience.
Internal Communication
At CIB, we believe that internal communication
is essential to successfully build a culture that
represents our vision, values, and behaviors. We
utilize all available communication channels to
provide our employees with an effective flow of
information, boost engagement and productivity,
and bring people together.
To create a productive, collaborative, and effi-
cient workplace, this year we continued to use a
single source of email communication to consoli-
date and share information with employees in a
transparent and clear manner. We also use our
weekly newsletter, CIB Roundup, which has been
revamped with a new layout and diverse topics and
themes that are of interest and use to all staff. The
newsletter helps keep employees updated on both
internal and external news, with a focus on sustain-
able finance, digital banking, and transactions.
Moreover, internal events and town halls, such
as Culture Transformation Program Roadshows,
were inaugurated with the launch of the program
bank-wide across different governorates. Culture
Transformation Agents onboarding took place
in June to further emphasize our values and the
behavior expected from all CIB staff. The Bank also
held an Executive Management gathering, which
included one member from the Management
Committee and several management staff from
across the Bank in a casual and friendly setup.
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Support Functions • Marketing and Corporate Communications
Our eagerly awaited Staff Portal was also launched
this year, with the objective of serving as our main
internal communication hub. The main goal is to
provide employees with a one-stop-shop platform
that keeps them connected, informed, and engaged,
while promoting cross-collaboration between
departments, teamwork, and unity.
Sustainable Finance
During 2023, CIB executed diverse marketing and
communication activities to support its sustainable
finance communication strategy, position itself as
the domestic ESG champion, and highlight its ESG
and sustainability efforts globally.
We worked on various initiatives, executing multiple
campaigns with internal and external activities,
including social media posts, website blogs, local
and foreign press releases, roundtables, event
sponsorships, airport messages, adverts, and
report publications (TCFD, Ecological Report, and
Principles for Responsible Banking Report).
Corporate Social Responsibility
Corporate social responsibility (CSR) is at the heart of
CIB’s core values. This year, we implemented various
CSR projects and supported related initiatives
carried out by other organizations. We diversified
our community development activities to include
sports, culture, and social welfare.
Social Activities
CBE Initiatives
During 2023, CIB continued to be part of govern-
ment initiatives across Egypt, such as Hayah Karima,
International Women’s Month, International Youth
Day, Farmers’ Day, and Saving Day through the
Smart Wallet program.
Helmek Yehemena
In light of CIB’s efforts to maintain an inclusive
culture and support women’s empowerment in
the workplace, the Bank continued the Helmek
Yehemena Program with a special day at the
Hurghada branch on 22 September. Helmek
Yehemena is a program that aims to empower
young women across Egypt by developing their
skills and banking knowledge in multiple phases. In
the first phase, various members of the CIB family,
including members of the HR, business, and CIB
success models, met students and fresh graduates
at university campuses to raise awareness about
the importance of women’s role in the workplace
and the economy, with a promise to receive their
applications to join the next phase of the program:
a tailored banking academy.
Magdi Yacoub Heart Foundation
CIB continued funding the Adult Outpatient
Department at Magdi Yacoub Global Heart Centre
as part of the partnership that started in June 2021
to improve access to care and meet the demand
for cardiac care in Egypt. The Magdi Yacoub Heart
Foundation took the decision to develop the Magdi
Yacoub Global Heart Centre in Cairo to continue
and build on the Aswan Heart Centre’s legacy of
excellence, while tripling the scale of operations
and capacity, which will increase reach to help
those most in need.
Al-Moassat Association
CIB continued supporting community projects with
a very special partnership with Al Moassat Hospital
Patient Care Association for the care of patients
undergoing bone marrow transplant procedures.
El Forsa Program
Over the past years, CIB has supported entre-
preneurship in Egypt with the aim of generating
a profound, positive impact on society through
various CSR initiatives. The Bank has placed
significant focus on the fintech space, with the
aim of bridging the gap between the financial
services sector and the emerging entrepreneurial
ecosystem, encouraging new start-ups, particu-
larly in fintech, and helping them reach investors,
develop their ideas, and gain widespread exposure.
CIB helps support new start-ups though the largest
television competition in the Arab world, El Forsa
Program, hosted by Egyptian TV presenter Lamis
El Hadidy in its second season. The program targets
entrepreneurs who own start-ups that provide
unprecedented, innovative solutions with high
potential for local and global growth.
Dialogue in the Dark
As part of its CSR efforts, CIB started 2023 with a new
partnership with El Nour wel Amal by supporting the
unique project, Dialogue in the Dark. 2,000 public
school students were invited to visit the Dialogue
CIB has tailored special sponsorships to help
16 talented players maintain their rankings and
continue representing the country around the world.
As of December 2022, the following players were
recipients of the sponsorships:
• Ali Farag: #1 on the Men’s PSA World Squash List
• Nouran Gohar: #2 on the Women’s PSA World
Squash List
• Karim Abdel Gawad: #6 on the Men’s PSA World
Squash List
• Nour El Tayeb: #6 on the Women’s PSA World
Squash List
• Tarek Momen: #9 on the Men’s PSA World Squash
List
• Hania El-Hammamy: #3 on the Women’s PSA
World Squash List
• Mohamed Abouelghar: #26 on the Men’s PSA
World Squash List
• Salma Hany: #11 on the Women’s PSA World
Squash List
• Mazen Hesham: #7 on the Men’s PSA World
Squash List
• Fares Dessouky: #18 on the Men’s PSA World
Squash List
• Rowan El Araby: #15 on the Women’s PSA World
Squash List
• Farida Mohamed: #19 on the Women’s PSA World
Squash List
• Youssef Ibrahim: #24 on the Men’s PSA World
Squash List
• Moustafa El Sirty: #850 on the Men’s PSA World
Squash List
• Jana Shiha: #37 on the Women’s PSA World
Squash List
Squash Tournaments Sponsorships
CIB has expanded its squash-related sponsorships to
allow for more Egyptian athletes to progress in the
PSA world rankings by participating in the biggest
squash events for the third consecutive year. CIB
powered the successful and popular El Gouna Squash
Open and, for the fifth consecutive year, brought the
CIB PSA World Tour Finals to Sodic West.
in the Dark exhibition, with the aim to educate the
public on visual impairment in order to create an
inclusive community and help better integrate differ-
ently abled members of our society.
Al Jamal Hamada Hospital
CIB continued supporting community projects,
sponsoring the three outpatient clinics at Al Jamal
Hamada Hospital in Alexandria.
Supporting Squash: Best Bank – Best
Players
CIB has played a significant role in the develop-
ment and growth of the squash sport scene in
Egypt and around the world. The Bank has been a
title sponsor of squash tournaments, including the
World Championship, El Gouna Squash Open, CIB
PSA World Tour Finals, and others. CIB has also
supported individual squash players, including most
of Egypt’s top-ranked athletes.
CIB’s support for squash has helped raise the
profile of the sport and attract new players and
fans. The Bank’s commitment to squash has also
been instrumental in the sport’s inclusion in the
2028 Olympics. As the most watched sporting
event in the world, the Olympics will give squash
a global platform to reach new fans and players,
which will directly benefit CIB’s brand equity.
Additionally, the Olympic squash tournament will
help promote Egypt as a global squash destination.
Egypt already has a strong reputation for squash,
and seeing the world’s best squash players compete
at the Olympics will inspire a new generation of
Egyptian players to take up the sport.
In 2023, we extended our support of squash to
capitalize on the traction its players are attracting
globally. We believe that through supporting
these talents, more opportunities are generated
for Egypt’s athletic community, boosting Egypt’s
ranking in the global arena. Egyptian squash players
have especially gained traction due to their innova-
tive techniques that have entertained worldwide
spectators and brought home trophies. Egypt has
produced five number one rankings in the men’s
division and three in the women’s division in global
competitions. As of October 2023, four Egyptian
men and three Egyptian women have made it to
their respective world’s top 10 players list.
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Support Functions
Transformation Office
Looking forward, the
Transformation Office will
continue to drive strategic
initiatives that reflect our
core values.
Embracing Change in 2023
Modern transformations have been centered
around generating new value to unlock new
opportunities, drive new growth, and deliver new
efficiencies. The Transformation Office’s strategy
in 2023 was to steer key strategic initiatives, adding
value within the organization, creating transpar-
ency, enabling better collaboration, and advancing
our digital and technology arms for a consistently
seamless, hassle-free customer experience.
2023 Highlights
“Putting our customer first, we lead the market with
agility and integrity” was our moto for everything we
did in 2023. We followed a strategy centered around
customer and employee satisfaction and sought to
transform CIB’s approach to creating value today
and in the future.
Th u s , th e “ D e p l o y ” p h a s e of th e C u ltu re
Transformation Journey was set into motion,
promoting efficient communication and aiming to
foster a healthy, inclusive culture so our employees
would gain a unified sense of purpose and passion.
The Transformation Office led the execution of the
Customer Excellence-Based Processes Initiative and
ran collaborative taskforces to revamp multiple key
processes that are of high value to our customers.
Cultural Transformation and
Communication
In February 2023, a Culture Transformation Kickoff
mega event was launched, sharing the Change Story, a
new approach to the whole organization that empha-
sizes our values and behaviors. The event hosted our
Management Committee, branch representatives,
culture transformation core team, and all influential
leaders from across the Bank. The event agenda took
the audience through the Change Story, highlighting
the significance of culture transformation in modern
times, the progress of quick win implementation,
and the introduction of Culture Transformation
Champions to the organization. It was concluded
with a status update, the way forward, and what to
expect in the coming period.
Various culture roadshows were also rolled out across
CIB branches and buildings to rally the organization
around a clear view of how values should be exercised
on a day-to-day basis by every employee. Regular
networking events took place to help facilitate this
change, along with various breakfasts held with CIB
executives in all of the Bank’s buildings.
Over 90 Culture Change Champions followed a series
of learning programs that aspired to engage them in
business storytelling and an in-depth values simula-
tion, enriching their skillsets with design thinking
and strengthening their change management skills.
The Champions then ran ideation and brainstorming
sessions and came up with departmental initiatives
and dissemination sessions, which communicate
our core values to a wider population. They acted
as the communication arm, spreading the word and
responding to inquiries from colleagues and agents
regarding CIB’s aspired culture.
In June, a Culture Transformation Event was
organized to onboard our Culture Change Agents.
The event’s highlight were inspirational speeches
delivered by our Chairman, CEO and Managing
Director, and Institutional Banking CEO. The
speeches covered many topics, including the Bank’s
emphasis on customer experience and how our staff
are CIB’s most valuable asset, being the drivers of
achieving our goals and aspirations.
339 agents were chosen to act as a communica-
tion link between their colleagues in the location/
branch, Champions, and the Core Team throughout
the culture transformation journey. Our Culture
Change Agents were enrolled in specially designed
development programs and various non-conven-
tional LinkedIn-based programs. The programs
covered topics such as implementing change
effectively, creative thinking and innovation
skills, driving innovation in your organization,
overcoming fear of public speaking, and speaking
confidently and effectively. Agents’ primary role
was to educate their teams on how to live the
values and behaviors and to respond to inquiries
regarding the aspired culture. They also supported
Champions with the execution of the culture
initiatives, providing suggestions for enhanced
deployment and providing guidance as needed.
Two additional culture transformation initiatives
ran in the background throughout the year, namely
Driving Change and C-Impact Forum.
• The Driving Change initiative encompassed two
cross-collaborative groups of 25 employees each,
who came from CIB’s various divisions and met
with group heads of different areas across the
Bank to identify existing problems. The groups
126 • CIB Annual Report • 2023
2023 • CIB Annual Report • 127
Support Functions • Transformation Office
then worked together to develop viable solutions
with a positive impact on the organization that
can enable us to achieve our strategic goals.
• The C-Impact Forum was created to provide
staff members with an outlet to share their
proposals or suggestions for the Bank to
further achieve our strategic objectives. The
Transformation Office then constructed a
framework to gather, discuss, and prioritize
initiatives coming from various channels,
named “Every Idea Counts,” and set the frame-
work for the implementation of feasible ideas.
This has resulted in 20+ initiatives going live in
2023, prioritizing issues that affect customer
experience and processes efficiency.
Forward-Looking Strategy
Looking forward, the Transformation Office will
continue to drive strategic initiatives that reflect
our core values. This will require the involvement of
different stakeholders across the Bank, synergizing
thoughts and efforts and supporting the execution
process until the expected value has been realized.
Leveraging on the Winning Together concept
embedded in many activities this year, collabora-
tive task forces will be organized in every initiative
taking place in 2024. The Transformation Office will
also continue to run the Culture Transformation
Initiatives Implementation program, monitor KSIs,
and assess the journey’s annual progress.
Better Collaboration with All Stakeholders
In May 2023, the Customer Excellence Based
Processes initiative was launched, designed to
optimize processes that have directly high customer
experience value in the organization. The appli-
cation and deployment of the initiative involves
improving employees’ productivity and efficiency,
while simultaneously reducing turnaround times
for selected processes, with clear accountabilities
through process reengineering.
Other potential processes will be studied and assessed
for a full revamp. The selected processes will be
re-engineered and automated to promote seamless
communication between departments, lowering the
TAT and positively impacting the customer journey.
Other transformation initiatives have been explored to
optimize credit processes for corporate customers, and
the Transformation Office plans on engaging with an
external consultant to optimize our cost centers, trans-
forming them into revenue-generating functions in 2024.
128 • CIB Annual Report • 2023
2023 • CIB Annual Report • 129
Support Functions
CFO Area
In recognition of the significance of utilizing change
and innovation to modernize operations, CIB under-
went several organizational changes throughout 2023
that allowed for more flexibility and agility in align-
ment with current market trends. The CFO Area was
revamped to cover a wider scope of responsibilities,
aiming to have a fully fledged area that central-
izes and combines the Financial Control, Business
Analytics, Budgeting and Planning, and Strategy
functions under one group. It will serve to promote
an analytics-driven culture across the organization to
propel the Bank across all financial and non-financial
KPIs for more effective governance and control.
The CFO Area’s functionalities align with the Bank’s
international best practice, which assumes a modern
finance function that drives shareholder value, rather
than being merely monitoring accounting profit.
More precisely, the CFO Area, which is also desig-
nated as the Finance and Strategy Group, currently
acts as a seamless decision-making powerhouse
that enables CIB to ensure seamless operations,
particularly through turbulent times, with four major
prominent pivots highlighted in the agenda for 2023.
Adopting a Value-Based Approach
According to international best practices, the modern
finance function should generate value across the
Bank, leading the changes in business trajectory by
working with and leading other Bank groups toward
more informed decision-making. It extends beyond
reporting and budgeting to become more involved
in the strategic planning process, while driving the
Bank’s organizational and business performance,
ensuring that strategic objectives are set in line with
financial and capital regulations.
In alignment with the Bank’s commitment to driving
growth and innovation, the CFO Area pursued its
strategic role in leveraging data analytics to gain
insights into market trends and customer behavior
in order to enhance operational efficiency and the
customer experience. This typically entails a back-
ward/forward-looking decision-making approach,
which builds on historical data to drive future
business decisions. This was clearly exemplified in
CIB taking the lead in applying adjustments to the
limits of card usage abroad in an effort to mitigate
the impact of economic uncertainties on foreign
currency liquidityf, to which other banks followed
suit, cementing the foreign currency liquidity base
not only for CIB, but for the Egyptian banking sector
as a whole.
The CIB Taxation team, as part of its commitment
to timely compliance with regulatory requirements,
successfully finalized the tax inspection until the year
2020. With that, CIB became the first bank in Egypt
to settle the Corporate Income Tax Position until the
last tax inspection date. This further amplifies the
quality of CIB’s financial reporting and demonstrates
its commitment to responsible financial practices
and adherence to legal requirements in a timely
manner, hence granting shareholders a higher level
of comfort in the Bank’s regulatory standing.
Striving Toward a More Cost-Conscious
Organization
CIB tailors its operations to achieve optimal finan-
cial performance while maintaining prudent cost
management practices. By effectively managing
costs, CIB continues to maximize efficiency, enhance
profitability, and ultimately safeguard value for its
stakeholders. The CFO Area accordingly imple-
mented a comprehensive Cost Control Strategy that
focuses on identifying, monitoring, and managing
all aspects of the Bank’s expenditures in a holistic
cost control approach that would ensure that every
aspect of the Bank’s operations is being efficiently
and optimally utilized, with four focus areas.
Operational Efficiency
Striving to continuously streamline operations and
enhance efficiency across all Bank groups, the CFO
Area continued to design Cost Control Initiatives in
2023 to identify and eliminate redundancies, auto-
mate processes, and leverage technology to reduce
manual intervention and improve productivity. In
that, CIB considered outsourcing certain non-core
functions or processes to cut in-house operational
costs and implemented energy-saving measures
within the Bank’s facilities, aiming to reduce utility
costs. Through these efforts, CIB aims to achieve a
lean and agile operational structure that drives cost
savings without compromising the quality of service.
Supplier Relationship Management
Stemming from its belief in the importance of effec-
tive supplier relationship management to maximize
shareholder value, while maintaining the quality and
reliability of the goods and services that the Bank
procures to its customers, CIB continued to maintain a
close link with its suppliers. Regular performance evalu-
ations and vendor assessments are conducted to ensure
the proper identification of cost-saving opportunities.
Strategic Workforce Planning
CIB continues to adopt a strategic workforce plan-
ning approach to its headcount allocation, assessing
the evolving needs of the business, aligning them
with the Bank’s long-term objectives and market
dynamics, and identifying areas where staffing
adjustments may be necessary to optimize efficiency
and cost effectiveness. Accordingly, through careful
analysis and forecasting, CIB strategically allocates
staff with the prime objective of having the right
talent in the right role to adeptly meet business
needs, reducing unnecessary recruitment costs.
Transparent Reporting
Transparency is a key cost control component
for CIB, providing detailed and accurate financial
reporting that truthfully highlights the Bank’s cost
structure, trends, and the impact of implemented
cost management initiatives. This enables stake-
holders to gain insights into cost control efforts
adopted by the Bank’s Management and understand
how they contribute to the Bank’s overall financial
performance and value proposition.
Embracing a Capital-Oriented Business
Environment
Further extending its value-based approach to
embrace the strategic and pivotal role of capital
in supporting the Bank’s business operations and
growth initiatives, and in light of current local and
global macroeconomic and geopolitical turbulence,
the CFO Area worked collaboratively and proac-
tively with other stakeholders across the Bank to
find preemptive solutions that would cement the
capital position of CIB and the Egyptian banking
sector as a whole. With that, CIB joined forces with
other banks to present a list of proposed initiatives
and recommendations to the Federation of Egyptian
Banks (FEB) to accommodate for macroeconomic
and regulatory diversities, fastening the sector-wide
Capital Adequacy Ratio (CAR).
This comes in parallel with maintaining a disciplined
capital planning framework that focuses on both
capital adequacy and allocating capital to areas
that generate sufficient and sustainable returns.
This is conducted in a way that would optimize
the utilization of the Bank’s available capital while
simultaneously maintaining a healthy and resilient
financial position without hindering the Bank’s core
activities. As a result of this approach, CIB success-
fully manages the inherent trade-off between solvency
and profitability. Moreover, the CFO Area continues
to strive to maintain the optimal capital mix between
Tier I and Tier II capital on one hand, and LCY and
FCY allocations on the other, in addition to proposing
the appropriate cash and share dividend mix that
would safeguard the Bank’s shareholder value.
Expanding to the Group Scope
Contributing to the Bank’s expansion plans, while
firmly believing in the importance of the central-
ization and unification of reporting, the CFO Area
assumed the role of the financial and reporting
arm this year, not only for CIB as a Bank but as a
Group, integral of its subsidiaries. Accordingly, the
role of the CFO Area encompasses monitoring the
accounts and business operations for CIB and its
subsidiaries. With that, the CFO Area is currently
driving performance across all Group operations,
ensuring stringent control over the Bank’s expansion
plans and consolidated financial results.
130 • CIB Annual Report • 2023
2023 • CIB Annual Report • 131
05•
Our
Controls
LCY liquidity ratio
30.2%
132 • CIB Annual Report • 2023
2022 - CIB Annual Report
133
Our Controls
Risk Group
The Risk Group is an integral part of the organiza-
tion, leading the Enterprise Risk Management (ERM)
framework and creating value by contributing to the
achievement of CIB’s objectives and the improve-
ment of business performance. The Group uses the
Three Lines Model in risk oversight, control, and
governance to efficiently utilize existing risk manage-
ment capabilities. It further ensures the sustainable
development of a risk management function that
is operationalized, allowing management to make
informed and risk adjusted decisions.
foreign currency, and Liquidity Coverage Ratio
(LCR) was 2,250% for local currency and 175% for
foreign currency, all above the 100% regulatory and
Basel requirements.
CIB’s interest rate risk in the banking book (IRRBB
ratio) remained resilient, allowing the balance
sheet to benefit from the current volatile interest
rate environment. In 2024, the Bank is expected
to continue maintaining a healthy balance sheet,
supported by the dynamic growth and ongoing
realignment of the funding strategy.
The ERM framework consists of the following five
interrelated components:
Credit Risk
1. Alignment of business and risk strategy and risk
appetite framework;
2. Identifying, measuring, managing, monitoring,
and reporting (IMMMR) initiatives for all prin-
cipal risks;
3. Effective risk infrastructure consisting of people,
data, systems, methodologies, policies, and limits;
4. Robust risk governance and culture; and
5. An integrated and forward-looking risk approach
reflected in the ICAAP, ILAAP, Integrated Stress
Testing, and Recovery Plan frameworks.
Liquidity and Interest Rate Risks
Thresholds
CIB continued to have a solid LCY and FCY liquidity
position throughout 2023, with healthy buffers
to sustain both the global and local increase in
risk profile. The Bank also enjoys an ample level
of High-Quality Liquid Assets (HQLA), with the
LCY CBE liquidity ratio recording 30.2% as of the
end of 2023, against the threshold of 20%, while
the FCY liquidity ratio reached 45.3%, against the
threshold of 25%. The Net Stable Funding Ratio
(NSFR) was 264% for local currency and 229% for
Institutional Banking Risk
Loan portfolio growth was driven by industries
with adequate risk and favorable reward attributes.
KPIs and asset quality are factored in the achieved
growth and continue to be the Bank’s priority.
Consumer Banking Risk
New programs were developed, and parameters were
amended to strengthen the product offering to cater
to a wider target segment and further shift toward
STP. The Risk Group introduced advanced assessment
techniques, with more reliance on the application and
behavior scorecards for advanced customer selection.
The aim is to maximize cross-sell and up-sell oppor-
tunities under key products and segments, while
maintaining sustainable portfolio quality. Additionally,
comprehensive portfolio analysis and monitoring
reports consider various risk dimensions, as well as
profitability indicators, to ensure robust controls and
preemptive measures are adopted.
Business Banking Risk
In line with the Bank’s strategy and the CBE’s
mandate, CIB achieved the 25% allocation of the
The Group uses the Three
Lines Model in risk oversight,
control, and governance to
efficiently utilize existing risk
management capabilities.
were also introduced to the existing behavior credit
scoring models to further develop the forward-
looking risk factors and behavioral trends.
Risk Culture
CIB promotes a strong risk culture by conducting
awareness sessions for employees, encouraging
open communication, and fostering a collaborative
environment. The Bank’s focus is also on devel-
oping next-generation risk competencies, such
as data analytics, machine learning, and artificial
intelligence.
portfolio to SME lending. The portfolio is being
closely monitored, and early warning capabilities
and dashboards are being enhanced to ensure the
Bank is within its risk appetite.
Non-Financial Risks Management (NFRM)
CIB continued to enhance its NFRM and integrate
its operational, third-party, and model risk manage-
ment to lay the foundation for a comprehensive
framework. Additionally, significant enhancements
were made to its security and technology risk
management capabilities, including establishing
a dedicated second-line function. The Bank also
incorporates reputational risk into its ERM frame-
work and utilizes innovative assessment tools to
provide a quantitative and qualitative assessment.
Environmental, Social, and Governance
(ESG) Risks
The Bank is identifying, assessing, monitoring,
and reviewing ESG risks in its lending and invest-
ment portfolios to ensure alignment with its
Environmental and Social Risk Management System
(ESRMS). CIB is currently in the process of estab-
lishing and integrating a climate risk management
framework. It also published its financed emissions
baseline report, as well as its first Task Force on
Climate-Related Financial Disclosures (TCFD)
report, which highlighted the ongoing efforts
toward the goal of fully incorporating climate risk
and opportunity identification and management
into the overall business strategy.
Risk Infrastructure / Technology
The Bank successfully digitized and automated
several processes across the risk organization with
the aim of enhancing models to ensure adequate
assessments and automated workflow processes
across the credit origination cycle. Enhancements
134 • CIB Annual Report • 2023
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Our Controls
Internal Audit
covers all aspects of IAG’s mandates and allows it
to increase the efficiency and effectiveness of the
division’s activities, while identifying opportunities
for improvement.
IAG’s activities are backed by a team of highly qual-
ified, professional calibers that are continuously
undergoing professional development, awareness,
and training and obtaining international certifica-
tion in the Internal Audit field.
2023 Highlights
IAG continued to focus on CIB’s digital transforma-
tion and the effectiveness of controls in this regard,
while utilizing the Bank’s big data capabilities.
2024 Forward-Looking Strategy
IAG will continue to monitor ever-shifting market
dynamics to meet its mandates and maintain stra-
tegic alignment with CIB’s objectives. The division’s
strategy is fundamental to remaining relevant and
playing an important role in achieving a balance
between cost and value, while making meaningful
contributions and enhancements to the organiza-
tion’s overall governance, risk management, and
internal controls.
IAG continued to focus
on CIB’s digital
transformation and the
effectiveness of controls in
this regard, while utilizing the
Bank’s big data capabilities.
CIB’s Internal Audit Group (IAG) is an indepen-
dent and objective function that provides its
stakeholders assurance and consulting services
designed to add value and improve the Bank’s
operations. IAG supports the Board of Directors
and Senior Management in accomplishing CIB’s
objectives by evaluating the adequacy and effec-
tiveness of the Bank’s governance processes, risk
management, and internal control systems.
IAG derives its authority and independence from
the Board Audit Committee, overseeing the Bank’s
Audit function and approving its Audit Plan. The
Chief Audit Executive reports functionally to the
Board Audit Committee and administratively to
the CEO and Managing Director, according to
international standards and practices.
IAG complies with the International Professional
Practice Framework (IPPF) of the Institute of
Internal Auditors (IIA) and its Code of Ethics. This
falls in line with results derived from the regular
external quality assessment that is carried out in
accordance with the IIA standards and takes place
as a part of the quality assurance and improve-
ment program that IAG maintains. The assessment
136 • CIB Annual Report • 2023
2023 • CIB Annual Report • 137
Our Controls
Compliance
Given our unique positioning, CIB highly prioritizes
operating compliantly as one of its fundamental prin-
ciples. Our unyielding belief is that no matter what
we do, we will always strive to do it while upholding
our responsibility toward our employees, customers,
shareholders, and society.
processes handled by the two arms of Regulatory
Compliance, namely the Regulator y Af fairs
Department and Business, as well as the Advisory
Compliance Department. These two functions
collaborate to set an end-to-end process to imple-
ment the Regulatory Compliance Program.
Compliance Risk Management
Framework
CIB started a transformative journey in 2019 by
establishing a best-practice framework positioned on
strong, well-defined foundational pillars. In 2023, we
strengthened the pillars of our Compliance Program
to properly identify, measure, monitor, and decide on
ways to manage compliance risks on a bank-wide level.
We also defined our approach toward managing the
different compliance risks in a pragmatic, business-
centric, and forward-looking manner.
The Compliance Group’s strategic objective is to
oversee compliance risks across the Bank and
continue strengthening its ability to identify, measure,
monitor, control, and report on these different risks.
CIB defines compliance risk as the potential for finan-
cial or non-financial losses to the Bank, or an adverse
impact on our customers, stakeholders, or the integrity
of the markets we operate in due to a failure to comply
with applicable laws and regulations. The Compliance
team is responsible for managing the main pillar of
the Compliance Program, with a focus on promoting
compliance consciousness across the Bank.
CIB maintains a Compliance Program that is
grounded on the following pillars:
Regulatory Affairs
CIB maintains a transparent relationship with regu-
lators through open channels of communication.
Consequently, CIB established a dedicated function,
the Regulatory Affairs Department, to act as the focal
point of contact between the Bank and the Regulators
by virtue of the Contact with Regulators Policy, with
a focus on how the Bank manages the various types
of regulatory engagements and relationships. This
function is responsible for ensuring that all regula-
tory engagements are duly fulfilled and managed in
a logical, transparent, and well-coordinated manner
through standardized practices, processes, and tools.
Compliance Business Advisory
Business Advisory Compliance, which is part of
the Regulatory Compliance Function, operates as a
compliance business partner and a trusted advisor to
all CIB business lines to ensure that all CIB operations,
policies, procedures, products, and services are fully
compliant with the relevant laws and regulations. This
dedicated function is responsible for providing advice,
guidance, and interpretations regarding regulations to
the first, second, and third lines of defense on different
regulatory issues. It is also responsible for conducting
proper risk assessment and finding compliant
approaches to enable the execution of customers’
requests and the Bank’s business initiatives.
Regulatory Compliance
Regulatory compliance risk within CIB is managed
through a comprehensive Regulatory Compliance
Program designed by the Regulatory Compliance
Department under the Compliance Group. This
program is translated into a set of actions and
Financial Crime
CIB ensures its compliance with all laws and regula-
tions issued in Egypt related to combating Money
Laundering and Terrorism Financing (AML/CTF),
taking all necessary measures to combat money
laundering and terrorism financing and adhere
to sanctions requirements. In addition, CIB is
committed to adopting the recommendations of
the Financial Action Task Force (FATF), as well as
the instructions of the Basel Committee on Banking
Supervision, relevant to AML/CTF.
Accordingly, CIB has developed a program for
combating Money Laundering and Terrorism Financing
that covers several key elements, such as the written
policy and procedures manual, using the automated
transactions monitoring system, and automated
sanctions screening system. These highly developed
training and awareness programs are mandatory for
all employees and seniors, further ensuring compliance
consciousness across the Bank.
Know Your Customer
CIB is committed to applying the principle of
Know Your Customer (KYC), adopting a risk-based
approach, conducting Customer Due Diligence (CDD)
measures across all relationships and Enhanced Due
Diligence (EDD) for high-risk relationships that
require compliance pre-fact approval.
The Bank ensures the effective implementation
of the KYC principle, which enables it to identify
ultimate beneficial owners for all customers during
on-boarding, and flagging any KYC updates.
CIB is in compliance with the CBE’s rules and regula-
tions in regards to record keeping, restricting dealing
with shell banks and prohibiting the opening of
anonymous or numbered accounts as stated in the
KYC policies and procedures.
Moreover, CIB is keen on identifying US-based
customers or entities (a US citizen or resident for
tax purposes). Under the Foreign Account Tax
Compliance Act (FATCA), financial institutions
in Egypt are required to provide the US Internal
Revenue Service with the necessary information
regarding their clients who are subject to this law.
CIB maintains a transparent
relationship with regulators
through open channels of
communication.
Transactions Monitoring
CIB has in place modern, state-of-the-art technology
and systems that monitor customer transactions and
identify suspicious transactions.
The system is also equipped to handle several
scenarios to ensure seamless monitoring of transac-
tions, immediately reporting any such transactions
to the authorities in accordance with regulations
and the approved policy and reporting procedures.
Sanctions Monitoring
CIB implements sanctions issued by the Egyptian
Money Laundering Combating Unit (EMLCU),
Security Council of the United Nations, Office of
Foreign Asset Control, European Union, United
Kingdom, and France on countries, territories, indi-
viduals, or entities.
CIB pre-fact screens all trade finance and
incoming and outgoing transactions in order to
detect sanctioned individuals and entities to take
the necessary actions to stop or hold dealing with
such entities.
Anti-Bribery and Corruption
CIB has a zero tolerance policy for bribery and
corruption, in line with the Bank’s ethical stan-
dards for internal and external stakeholders. It
has established principles in place to identify
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Our Controls • Compliance
To ensure success, the
Compliance team
evaluates and measures
quantitative and
qualitative conduct
risks retrospectively and
proactively.
and prevent potential bribery and corruption to
protect the Bank’s integrity and reputation.
Conduct Risk and Customer’s Rights
Protection
CIB’s Conduct Risk program is focused on behaviors
rather than demonstrating solutions in a tick-box
exercise. This requires combining the core elements
of a conduct framework, namely strategy, appetite,
governance, and reporting, across the lifecycle of
products and services. The Conduct Risk program
encompasses advertising and promotional materials,
product, and sales process development, as well as
aftersales services.
Improving customer service continues to be a
priority. To ensure success, the Compliance team
evaluates and measures quantitative and qualita-
tive conduct risks retrospectively and proactively, in
consideration of current and future outcomes.
Conduct Risk Framework Pillars:
• Developing a Conduct Risk Strategy that aligns
with the Bank’s strategy and business model to
ensure a customer-centric approach is applied.
• Fostering a customer-centric work environment.
• Tailoring the Bank’s operating model to uphold
customers’ best interests, in compliance with regu-
latory requirements and customer expectations.
• Identifying and preventing actions and behav-
iors that constitute market misconduct and
responding accordingly.
Our Conduct Risk management centers around
treating customers fairly, protecting their rights,
and positively impacting the communities we serve.
This also aligns with the CBE’s instructions issued
in February 2019 to clearly govern the relationship
between banks and their customers in all stages of
dealings. The Customers’ Rights’ Protection unit was
established with the primary objectives of ensuring
the protection of customers’ rights and the enforce-
ment of compliance with those principles, including:
• Treating customers fairly and candidly;
• Conducting business with skill, care, and dili-
gence;
• Handling customers’ complaints fairly and inde-
pendently, under clear and specific mechanisms;
• Raising the level of financial awareness and
education of current and potential customers;
• Protecting the privacy and confidentiality of
customers’ financial and personal information;
• Protecting customers against financial fraud; and
• Protecting customers and the Bank against secu-
rity, reputation, and regulatory compliance risks
using third-party service providers.
Whistleblowing
The Speaking-Up Program was designed to support
and encourage confidential and anonymous whis-
tleblowing reports, complying with all applicable
regulations. Our whistleblowing channels are avail-
able to everyone, including employees, contractors,
suppliers, and the public. The reporting channels
include the dedicated Whistleblowing Hotline,
Whistleblowing Email, and a portal launched over
the CIB official website, enabling anyone to submit
a whistleblowing report anonymously.
All received reports are handled independently and
confidentially, while ensuring that the identity of
the whistleblower is safeguarded and protected.
Results of investigated cases are raised directly
to the Board Audit Committee responsible for
ensuring that appropriate remediating actions
have been implemented.
Compliance Monitoring and Testing
To ensure CIB’s full compliance with all the
applicable laws and regulations, the Compliance
Group established the Compliance Monitoring and
Testing function to provide post-fact assurance
regarding the effectiveness of the Compliance
Program and CIB’s compliance status. In 2023,
we implemented our monitoring and testing
methodology, utilizing the risk-based approach
to focus on high-risk areas, ensuring efficient and
effective testing that entails identifying, assessing,
and prioritizing regulatory requirements based
on their potential impact on the organization.
This approach was successfully executed through
fostering a culture eager for development, carrying
out ongoing monitoring to ensure the organiza-
tion’s Compliance Program remains up-to-date and
effective, and conducting comprehensive training
and awareness programs to ensure employees
understand their compliance responsibilities and
the consequences of non-compliance.
The monitoring and testing reports reassure the
Board and Senior Management that compliance risks
are being adequately identified and mitigated.
Compliance Training and Awareness
CIB attributes its continued achievement of compli-
ance strategic objectives on its development of
employee awareness and the emphasis placed on
behavioral compliance.
Compliance conducts different programs to
cover staff, outsourced employees, and third-
party companies’ employees who represent the
Bank in related activities. These programs include
Combating Financial Crime, Compliance Ethics and
Business Integrity, Sanctions Screening Refresher
training for front-liners, Customer Due Diligence
for High-Risk Customers, Trade Compliance
Advanced Training, Advanced Financial Crime
for second and third lines of defense, Regulatory
Compliance for Branches Operations, Compliance
for Business Banking and Corporate Business, and
Customers’ Rights Protection for front-liners.
This is in addition to awareness campaigns, such
as Say No to Bribery and Corruption, Conduct
Risk Awareness, Whistleblowing – CIB Integrity
Channel, Celebrating World Whistleblowing Day,
Conduct Risk – Treating Customers Fairly, Fighting
Corruption is Everyone’s Responsibility, Financial
Crime and Regulatory Compliance Guide, and
Fighting Corruption Starts with You.
140 • CIB Annual Report • 2023
2023 • CIB Annual Report • 141
06•
ESG
Portfolio utilization under Green
Bond program
136USD/MN
142 • CIB Annual Report • 2023
2022 - CIB Annual Report
2022 - CIB Annual Report
143
143
ESG
Sustainable Finance: A Vehicle for
System Transformation at CIB
CIB’s Sustainable Finance journey is built on the firm
belief that multi-stakeholder engagement is key to
driving system transformation and ensuring sustained
growth. CIB is a founding signatory of the Principles for
Responsible Banking (PRB) and the Net-Zero Banking
Alliance (NZBA), and it has worked alongside industry
leaders, banks, and regional advocates to influence
the trajectory of the banking sector in a continuously
developing climate landscape. Accordingly, CIB intro-
duced its Sustainable Finance Institutional Pillars
initiative to achieve bank-wide system transformation
and organizational readiness. Despite the challenges
and aftershocks of the COVID-19 pandemic and the
associated economic crisis, the initiative has been
instrumental in helping CIB undertake an ambitious,
holistic sustainability system transformation plan that
succeeded in generating value for the Bank.
The Institutional Pillars have since evolved to
provide the Bank with the guidance and support
needed to continuously innovate its sustainable
finance offerings, foster its risk management,
enhance its disclosure practices, and integrate
ESG principles across our operations. CIB aims
to continue leading the transition to a low-carbon
economy in Egypt, as well as further integrating its
ESG efforts, recognizing its role as an institution
that serves the environment and society.
Sustainable Finance Institutional Pillars
Sustainability
Governance
Sustainable
Finance
Strategy
Sustainability
Management
Systems
Sustainable
Finance Policy
Frameworks &
Architecture
Sustainability
Communication
& Education
Sustainable
Finance
Innovation
Sustainability Governance
CIB’s solid sustainability governance structure
is set in place to ensure holistic ESG integration
across the Banks’ operations. We attribute the
success of our robust governance procedures to the
unwavering support of CIB’s top management, who
cemented sustainability values as core components
of our operations.
The presence and active engagement of the Bank’s
Executives and top management ensures vibrant
and action-oriented discussions take place with all
internal stakeholders to promote equality, empower-
ment, and sustainable growth across all facets of the
Bank. Additionally, it enables ongoing dialogue to
assesses areas of improvement and the way forward
to overcome challenges and create further value.
In 2023, the Board Sustainability Committee
convened six times, providing strategic guidance on
ESG matters and ensuring the effective ESG integra-
tion into operations in alignment with global and
regional frameworks. On the executive level, the
Sustainable Finance Steering Committee, headed by
the CEO and Managing Director, convened five times
and oversaw the Bank’s ESG system and strategy
implementation, and it monitored ESG activities,
compliance, reporting, and disclosures commit-
ments, aiming to accelerate the transition.
CIB’s Chief Sustainability Officer led the Sustainable
Finance Department toward seamlessly executing
the transformation in alignment with and influenced
by the Bank’s extensive framework architecture,
national guidance and directions, and internal gover-
nance practices primed to position sustainability at
the forefront of all Bank operations. CIB’s Sustainable
Finance Department comprises environmental
experts, engineers, and financiers, ensuring various
lenses and perspectives are in place to approach
full-fledged integration of sustainability across the
Bank’s operations.
Firmly established governance practices ensured
continued operational compliance with global
fram e w ork s and st and ard s and th e C BE’s
Sustainable Finance Circulars, the implementation
of its six Sustainable Finance Guiding Principles; the
mandated governance, policies, and SOPs; as well as
disclosures and reporting. Being listed on the EGX,
CIB also complies with FRA mandates to report on
ESG and TCFD.
Sustainable Finance Strategy and
Sustainability Management Systems
The Sustainable Finance Institutional pillars allowed
bank-wide mobilization along parallel tracks,
allowing CIB to flawlessly execute its sustainability
conscious operations. This resulted in the incorpora-
tion of the Sustainable Finance Strategy within the
Bank’s four-year Corporate Strategy, focusing on
E&S and climate risk, revenue generation, sustain-
able finance advocacy, and our ecological footprint.
Sustainable Finance integration on both the strategic
and operational levels supported CIB in achieving
long-term value creation for its stakeholders.
In parallel, CIB’s Sustainability Management System
underwent a well-integrated and multi-track
sustainability system transformation that includes
embedding sustainability across all Bank policies,
SOPs, capacity building, data, monitoring, and disclo-
sures. The Sustainable Finance Systems and Strategy
Implementation Workstreams were formulated to act
as the Bank’s Sustainable Finance Strategy implemen-
tation arm. The eight cross-functional workstreams
address a dual track by building robust sustainability
systems to ensure the effective integration of ESG
across all CIB’s lines of business and support units,
hence guaranteeing that sustainability criteria are
embedded within all relevant business decisions and
daily operations.
Since their launch in April 2022, considerable achieve-
ments have been accomplished under the eight
cross-functional workstreams, which came as a result
of the synergies between CIB’s internal stakeholders
through the active contribution and dedication
of the Bank’s functions, including Risk, Corporate
Banking and Global Customer Relationship, Retail
Banking and Financial Inclusion, as well as the Direct
Investment Group, jointly representing CIB’s main
lines of business.
CIB’s support units also played an integral
role in the implementation of the Sustainable
Finance Strategy through the active participa-
tion of CIB’s Corporate Services, Marketing and
Communication, Learning and Development,
IT, and Data teams in the Ecological Footprint,
Advocacy and Stakeholders Relations, Education,
and ESG Data Digitalization workstreams.
144 • CIB Annual Report • 2023
2023 • CIB Annual Report • 145
ESG • Sustainable Finance
Notable 2023 Highlights and
Achievements
Sustainable Finance Sourcing
CIB witnessed business growth under its Green Bond
Program, the first-of-its-kind in Egypt, with portfolio
and green assets utilization up to USD 130.3 million as
of October 2023, to finance different criteria of green
projects according to the CIB Green Bond Framework.
The Bank also signed a seven-year USD-100-million
green loan to finance a pipeline of environment-
friendly projects that include water management and
energy efficiency, green buildings and renewables, and
sustainable agriculture projects.
Sustainable Finance Offerings for Corporates
and SMEs
Following the success of CIB’s Green Bond Program,
the Bank increased its efforts to provide convenient
technical and financial services to face complex
environmental challenges for carbon-intensive
industries, therefore promoting decarbonization
practices. CIB’s sustainable finance offerings include
Energy Efficiency, Renewable Energy, Green Cities
and Buildings, Waste and Water Management,
Non-Energy GHG, Water Desalination, Energy
Management Systems, Building Retrofit, Pollution
Prevention and Control, Sustainable Agriculture, and
Tourism and Transport.
Environmental and Social Risk Management
System (ESRMS)
CIB has a robust ESRMS in place, which is endorsed
by DFIs. The Bank upgraded its ESRMS to align
with local and global standards. CIB has been
entitled to foreign concessional priced funds and/
or de-risking facilities based on the presence of a
robust Sustainable Finance System that led to the
successful ESG due diligence and internal synergies
between relevant departments.
Partnership with the IFC on Climate Risk and
TCFD Implementation
Addressing the Bank’s climate risk approaches,
covering TCFD gap analysis, adaptive capacity assess-
ment, portfolio scans for physical and transition
risks, scenario planning, stress testing narratives,
the development of a work plan for climate strategy,
and the conducting of multiple trainings were all
implemented to support efficient climate risk
management.
Transition Finance Programs and Initiatives
– Client Engagement and Growth
CIB endorses its vision for a sustainable economy
by supporting clients toward the development of
low-carbon pathways, the use of low-carbon tech-
nologies and products, and encouraging a circular
economy aiming for growth and resilience for the
Bank and its stakeholders. Through Sustainable
Finance’s flagship program “Sustaining Sectors,” as
well as “Sustaining SMEs,” the Bank engages with
clients and aids their transition toward a low-carbon
economy. The Bank also supports corporations by
conducting Energy Walk-Through Audits to enable
clients to adopt cost-saving solutions for resource
efficiency, while also providing capacity building,
technical assistance, and certifications. The EDGE
Green Buildings Certification was facilitated for
two of our major clients in real estate development,
successfully enhancing their sustainability position
in the market.
Empowering SMEs – Partnership with GIZ
and Development of CIB’s “Sustaining
SMEs” Program
CIB’s “Empowering and Promoting Sustainable
Finance within the Financial Sector in Egypt” project
with the GIZ agency is committed to providing a
holistic framework to support Egypt’s SMEs access
to funding, in recognition of the crucial role played
by SMEs in the areas of green transformation and the
transition of Egypt’s economy toward sustainability.
This partnership aligns with the Bank’s Sustaining
SMEs Program, which aims to unlock opportunities
for SMEs — the hidden engine of the economy — to
drive the transition through facilitating adherence to
globally recognized standards on green performance,
social practices, and other ESG matters.
Sustainable Finance Policy and
Frameworks Architecture
CIB’s Sustainable Finance Policy is a comprehen-
sive and progressive document issued in January
2021. The policy stresses commitment to a wide
array of thematic obligations, which are reviewed
annually. It mandates the integration of the ESG
dimensions across all lines of business and is
reviewed annually to reflect local and global ESG
trends and developments.
CIB is engaged in several global sustainable finance
frameworks supporting its sustainable finance trans-
formation journey. As a co-founding signatory of the
United Nations PRB and the NZBA in 2019 and 2021,
respectively, and an active member of the Glasgow
Financial Alliance (GFANZ) and GFANZ Africa
Network, the Bank recognizes that the journey to
true sustainable growth involves global collabora-
tion and outreach with industry leaders. Additionally,
the frameworks have played an extensive role in the
evolution of the Bank’s sustainable finance practices,
as reflected in our Policy.
Financial Health
& Inclusion
Risk/ESRMS
Enhances CIB’s risk management by
including Climate, Environmental, and
Social risks
Portfolio
Portfolio ESG Assessment and
enhancement
EESG Reporting
Allows for transparent reporting on CIB’s
ESG measures
ESG Indices
Global ratings and indices indicative of
the Bank’s sustainability considerations
Science-Based Approaches
Ensuring streamlined and globally
accepted scenario-setting
146 • CIB Annual Report • 2023
2023 • CIB Annual Report • 147
ESG • Sustainable Finance
Reporting and Disclosures
Since 2015, CIB has evolved its disclosure practices
in alignment with global standards and investor
needs. In 2023, CIB maintained its commitment
to transparency in reporting and disclosures by
publishing the below reports:
The Power of System Thinking – CIB’s First
ESGDD Integrated Report
A c o m p re h e n siv e a pp r o a c h c o n s o li d a t i n g
sustainability related frameworks (including GRI,
SASB, UNGC, EP, NZBA, PRB, CFHI, and TCFD, as
well as CIB’s ecological footprint) and reporting on
their progress and operations, acting as a singular
resource for investors on ESG as well as Data and
Digitization disclosures.
Climate Risk Management and Resilience –
The Task Force on Climate-Related Financial
Disclosures (TCFD) Report 2021–2022
Addressing climate-related risks, structured
around governance, strategy, risk management,
and metrics and targets.
positive and negative impacts. In response to the
assessment results, we address our efforts under
climate and financial inclusion to mitigate any
negative impacts and enhance positive ones by
setting clear relevant targets.
Green Bond Impact – CIB’s First Green Bond
Impact Report (for 2021)
CIB published its first Green Bond Impact Report
covering the year 2021, which gives an overview of the
allocation of eligible green assets to the Commercial
International Bank Green Bond and describes the
impact of the Green Bond at a portfolio level.
Decarbonization – The Net-Zero Banking
Alliance Targets Report “Advancing the
Transition to Net-Zero”
This report presents finance emissions and portfolio
targets for two carbon-intensive sectors: power
generation and both commercial and residential
real estate. We plan to include more sectors in the
future and concentrate our current efforts on the
decarbonization of our internal operations.
Portfolio Impact – The Bank’s Third Principles
for Responsible Banking (PRB) Portfolio
Impact Assessment Report
Covering F Y2022 and addressing the Bank’s
sustainability activities under the six key prin-
ciples that lead to responsible banking. Under
the second principle, CIB addresses its corporate,
business and retail banking portfolios’ potential
Decarbonization – The Ecological Footprint
Report
CIB began reporting on its carbon footprint in 2018
and later expanded onto Ecological Reporting to
account for its impact on land, water, and carbon
usage. Since we started reporting our efforts in 2018,
we have made significant progress in improving our
footprint, as outlined below:
2018 (BY)
2019
2020
2021
2022
mtCO2e Status mtCO2e Status mtCO2e Status mtCO2e Status mtCO2e Status
SCOPE 1 – DIRECT
EMISSIONS (mtCO2e)
SCOPE 2 – INDIRECT
EMISSIONS (mtCO2e)
TOTAL SCOPE 1 & 2
EMISSIONS (mtCO2e)
10,058
37,678
47,736
SCOPE 1 & 2 (mtCO2e/
employee)
7.6
SCOPE 3– INDIRECT
EMISSIONS (mtCO2e)
8,170
TOTAL SCOPE 1, 2, & 3
EMISSIONS (mtCO2e)
55,906
AVOIDED EMISSIONS
(mtCO2e)
-144
-
-
-
-
-
-
-
5,148
-49%
5,551
-45%
2,685
-73%
4,221
-58%
36,704
-3%
34, 105
-9%
31,541
-16%
33,414
-11%
41,852
-12%
39,656
-17%
34,225
-28%
37,635
-42%
6.0
-21%
5.5
-28%
4.11
-46%
4.3
-43%
10,879
+33%
8,916
+9%
9,236
+13%
25,653
+214%
52,731
-6%
48,572
-13%
43,461
-22%
63,288
+13%
-144
-
-144
-
-223
+55%
-270
+87.5%
Stakeholder Communication and
Education
Global Engagement
In 2023, the Bank was present across various
networks, including the PRB Banking Board, Net
NZBA Steering Group, GFANZ Africa Advisory
Board, GFANZ Africa Network Working Groups,
UNEP-FI ’s Working Groups, and the World
Economic Forum’s Green Hydrogen Initiative, all
of which aim to accelerate sustainability efforts on
a regional and global scale.
CIB is a firm believer in the power of global collabora-
tion, dialogue exchange, and stakeholder engagement to
bring forth major change and reformations, particularly
in the face of climate challenges that are anticipated to
impact the region. Accordingly, the Bank continues to
maintain its presence across various global and regional
events, recognizing the role of dialogue in furthering
wider sustainability driven ambitions. During 2023, and
building on its COP27 initiatives introduced the year
prior, CIB was present at various regional and global
events advocating for the mainstreaming of climate
finance innovation, transition finance, the development
of region-specific taxonomies, and scaling decarbon-
ization efforts. Through engagement with leading
stakeholders, the Bank progresses to actualize its ESG
ambitions to create value for investors, partners, clients,
and the community at large.
2023 AWARDS
EGX Award
Euromoney
Global Economics
Best ESG Report
Best Bank for
ESG in Egypt
Best Institution for
ESG Integration
in Egypt
During the Annual Conference for the Arab
Federation of Capital Markets (AFCM) by
Global Economics, held in Oman
Ratings and Recognitions
Index/Rating
FTSE4GOOD
BLOOMBERG GEI
CDP
MSCI ESG
S&P (CSA)
SUSTAINALYTICS
S/P EGX ESG
Current Rating
Constituent
Constituent
B- (Management)
A
30
23.18
Constituent
148 • CIB Annual Report • 2023
2023 • CIB Annual Report • 149
ESG • Sustainable Finance
Innovation remains at the
heart of our product and
service development, as
well as the Bank’s internal
data architecture, to ensure
sustained growth.
Sustainable Finance Innovation
Innovation is at the core of CIB’s achievements and
has played a key and active role in the development
of CIB’s sustainable finance journey. Innovation
remains at the heart of our product and service
development, as well as the Bank’s internal data
architecture, to ensure sustained growth.
ESG Data Digitization Platform
CIB is designing and in the process of developing
an ESG Data Digitization platform to enable
efficient ESG data management and reporting,
in addition to supporting the environmental and
social risk management assessment processes.
The main purpose of the platform is to streamline
and automate ESG data tracking, monitoring,
analy si s, and re p or tin g in alignm ent w ith
national and international sustainability related
frameworks and standards. The platform is under
development with the key goal of acting as a robust
digital solution to overcome data hurdles while
mainstreaming sustainable finance.
Sustainable Finance Education
CIB recognizes the role of education in shaping
future generations and transforming the climate
trajectory of the region. Accordingly, the Bank
has developed a comprehensive sustainable
finance learning program and offers specialized
training for staff to ensure the proper integration
of ESG principles across the Bank’s operations and
culture. CIB is also keen on collaborating with
higher education bodies to integrate this discipline
across curriculums in Egypt.
150 • CIB Annual Report • 2023
2023 • CIB Annual Report • 151
CIB’s Sustainable Finance journey is built on the firm belief that MULTI-STAKEHOLDER ENGAGEMENT is key to driving system transformation and ensuring sustained growth. ESG
Corporate Governance
CIB’s Corporate Governance plays a vital role in
ensuring that the Bank operates responsibly and in
compliance with regulations. In order to evolve with
the ever-changing market landscape, the Corporate
Governance Group proactively monitors industry
trends and adapts to new challenges, regulations, and
best practices. CIB has consistently demonstrated
unwavering commitment to vigorous governance
practices in recognition of their significance,
enabling the Bank to establish a solid foundation for
responsible and successful operations in the financial
industry, thus reassuring stakeholders that CIB’s
management acts in their best interests.
CIB has implemented a range of measures to
ensure its adherence to best practices, ascertaining
their positive impact on the Bank and its stake-
holders. Through its comprehensive Governance
Framework, diverse Board composition, sound
Board Committees, proficient management team,
effective internal control processes, and transparent
communication and reporting, the Bank exemplifies
the significance of governance in ensuring its long-
term success and maintaining stakeholder trust. The
Bank’s efforts in practicing good governance serve as
a notable example for the banking industry, setting
a high standard for others to emulate.
CIB has developed and implemented a robust corpo-
rate governance framework that outlines the Bank’s
governance principles, policies, and procedures. This
framework provides a clear roadmap for decision-
making and accountability throughout the Bank. It
ensures that governance practices are consistently
applied across all levels of the Bank, promoting
transparency and integrity. This commitment to
maintaining a strong control environment under-
scores the Bank’s dedication to promoting sound
governance practices.
The Bank protects and enhances the shareholders’
rights and participation in decision-making
processes through various measures, including
well-structured and transparent General Assembly
meetings, providing clear information about the
meeting date, agenda, and proposed resolutions
well in advance, allowing shareholders to prepare
and participate effectively. There are also options
for remote participation to increase accessibility for
shareholders, especially regarding matters requiring
shareholders’ consent on key decisions. The Bank has
accordingly expanded effective channels of commu-
nication with shareholders through a dedicated
Investor Relations team responsible for regularly
providing timely and transparent information and
updates on the Bank’s performance, strategy, and
governance matters.
Governance policies are designed to ensure trans-
parency, accountability, and effectiveness in the
decision-making process. They foster trust and reaf-
firm the Bank’s a positive reputation. These policies
are regularly reviewed and updated to adapt to
changing circumstances and tailoring best practices
to reflect ESG consciousness.
CIB’s Code of Corporate Governance ensures the
corporate governance system remains documented,
transparent, and understandable to boost stakeholders’
confidence in the Bank’s management and supervision.
Our Code of Conduct serves as a reference for
employees to thoroughly comprehend the Bank’s
expectations and standards for behavior. It encourages
employees to act in an honest, fair, and transparent
manner, upholding the Bank’s reputation and adhering
to regulatory requirements. As such, it helps create a
culture of integrity and customer-centricity, mitigate
risks associated with unethical practices, and foster
trust among stakeholders.
The Conflict of Interest policy sets forth the guide-
lines needed to manage situations where Board
of Directors members, senior management, or
employees’ personal benefits may interfere with
their ability to act in the Bank’s best interests. It helps
identify and address potential conflicts of interest
and ensures that decisions and actions are taken
objectively and with integrity.
To create a foundation of shared knowledge and
ensure compliance to CIB’s Code of Conduct and
Conflict of Interest policy, induction sessions are
provided for new employees to help them better
understand the Bank’s expectations and standards.
Additionally, awareness sessions are provided for
existing employees as reminders and updates, there-
fore building a strong corporate culture intrinsic to
the Bank’s success.
The Social Media policy helps establish a framework
for responsible social media use, protecting the
Bank’s interests while promoting a positive online
presence. It sets clear expectations, reduces legal
risks, and fosters a culture of professionalism and
online etiquette.
The Disclosure Policy outlines the Bank’s commit-
ment to open communication and provides a
framework for disclosing relevant information
to various stakeholders, including employees,
shareholders, customers, and the general public.
It promotes transparency and ensures that disclo-
sures are published in a timely and accurate
manner. It also defines what constitutes mate-
rial non-public information to help the material
risk takers (insiders) — who have access to such
information or have key functional responsibili-
ties with significant potential impact/influence
— understand the boundaries and consequences
of engaging in insider trading during the blackout
period. This builds trust and confidence among all
stakeholders, as they can make informed decisions
based on reliable information.
The Staff Issues and Ethics Committee is responsible
for tackling staff complaints related to conduct and
performance management within the Bank. Its role
is to conduct thorough investigations and reach
impartial and respectful resolutions.
The Board of
Directors maintained
its commitment to a
governance framework that is
in line with international best
practices.
Board of Directors
The Board aims to promote CIB’s long-term
success, deliver profitable and sustainable value to
shareholders, and promote a culture of integrity, trans-
parency, trust, and respect among its stakeholders.
CIB Board members act on a fully informed basis, in
good faith, with due diligence and care, and in the best
interest of the Bank and the shareholders, taking into
account the interests of all other related stakeholders.
The majority of the Board is made up of independent
directors. Led by its non-executive Chairperson,
the Board is primarily responsible for providing
the oversight of senior management with respect
to strategic planning, financial and accounting
matters, risk management, human resources, and
other internal policies. It ensures the effectiveness
of the Bank’s internal control systems and risk
management to secure CIB’s institutional reputation
and long-term sustainability. The Board ensures
that the Bank’s purpose, values, strategy, and
culture are all aligned, and it reviews management
performance in that regard.
CIB’s Board members have the range of skills, under-
standing, experience, and expertise necessary to
ensure high corporate governance standards are main-
tained. The Board plays a pivotal role in setting high
152 • CIB Annual Report • 2023
2023 • CIB Annual Report • 153
ESG • Corporate Governance
standards of corporate governance across the Bank and
promoting a work environment in which said standards
can be reflected. The Bank’s Governance Framework
establishes systems of checks and controls required to
drive accountability and effective decision-making, with
appropriate policies and practices in place to ensure
that the Board and its committees operate effectively.
To ensure clear lines of accountability for manage-
ment throughout the Bank, the Board continuously
monitors CIB’s Governance Framework. It also
assesses the framework’s relevance in relation to
material changes to the Bank’s size, complexity, busi-
ness strategy, markets, and regulatory requirements.
In exercising its responsibilities, the Board liaises
with and supports the Bank’s internal control func-
tions and constructively uses outcomes and reports
received by these functions to monitor the necessary
corrective actions. It ensures the clear segregation
of the roles and responsibilities of these functions,
enabling each to communicate directly and inde-
pendently with the Board and senior management.
The Board is cognizant of its role in creating
sustainable, long-term value for shareholders
and stakeholders. It is committed to achieving
high standards of governance designed to protect
the long-term interests of all stakeholders, while
promoting the highest standards of integrity, trans-
parency, and accountability. The Board ensures the
Bank’s accounts and financial statements are fair,
balanced, understandable, and provide necessary
information for shareholders to assess CIB’s position,
performance, business model, and strategy.
The Board’s structure complies with prevailing local
regulations and international best practices, allowing it
to maintain its leading market position. The respective
roles of the Chairperson and the CEO, which are separate,
are set out in writing and have been agreed upon by the
Board. An inclusive culture that recognizes the impor-
tance of gender, social, and ethnic diversity is the main
driver of the Board’s strength. Female representation on
CIB’s Board is at 18% and among independent directors
is at 54%, according to the latest Board structure. Over
the course of 2023, CIB’s Board of Directors met 11 times.
Serial Board Member Name
(Executive / Non-Executive /
Independent)
Joining
Date
1
2
3
4
5
6
7
8
9
10
11
Mr. Hisham Ezz El-Arab
Non-Executive
Mr. Hussein Abaza
Executive
Mr. Paresh Sukthankar
Independent
Mr. Rajeev Kakar
Independent
Mr. Sherif Samy
Independent
Mr. Jay-Michael Baslow
Independent
Mr. Fadhel Al Ali
Non-Executive
22-Nov
17-Mar
19-Oct
19-Oct
20-Mar
20-Oct
22-May
Mr. Aziz Moolji
Non-Executive
22-May
Ms. Nevine Sabbour
Independent
Ms. Hoda Mansour
Independent
Mr. Jawaid Mirza
Non-Executive
23-Apr
23-Apr
23-Aug
Capacity
Experienced
Member
Experienced
Member
Experienced
Member
Experienced
Member
Experienced
Member
Experienced
Member
Representing the
interests of Alpha
Oryx Ltd. – a
subsidiary of ADQ
Experienced
Member
Experienced
Member
Experienced
Member
In light of the list of candidates for Board of Directors
membership for the March 2023–March 2026 term,
CIB’s General Assembly approved the new Board
of Directors composition chaired by Mr. Hisham
Ezz El-Arab, succeeding Mr. Sherif Samy. Mr. Tarek
Rouchdy, Ms. Magda Habib, and Dr. Amani Abou Zeid
did not submit for nomination for a new term, while
Ms. Nevine Sabbour and Ms. Hoda Mansour joined CIB
as independent board members, commencing March
2023 (subject to CBE approval, which was obtained
on 19 April 2023). Accordingly, the composition of the
non-executive Board Committees was changed. On 17
August 2023, Mr. Jawaid Mirza joined the CIB Board of
Directors as a non-executive board member.
Board Committees
The Board of Directors established six standing
committees to support and assist the Board in
carrying out its designated responsibilities and duties.
The committees were formed in adherence with the
Bank’s corporate governance regulations issued by
the CBE, relevant applicable laws, regulations, and
international best practices. The committees submit
their recommendations to the Board of Directors to
take the necessary decisions. Each Board Committee
has a charter outlining its objective, scope, authorities,
responsibilities, attendance quorum requirements, and
voting procedures. All Board Committees are chaired
by NEDs, who brief the Board on major points raised
by their respective committee.
Board Audit Committee
Responsibilities: The committee was established to
provide oversight over the integrity of the Bank’s finan-
cial reporting process, the effectiveness of the Bank’s
internal control systems, and its compliance with all
statutory requirements. The committee is also respon-
sible for overseeing and reviewing the performance of
the Bank’s Internal Audit and Compliance functions,
as well as the work of the Bank’s External Auditors, to
ensure the independence and objectivity of each, in
addition to the quality of the applied outputs. It also
has oversight on the whistleblowing process and its
outcome. Additionally, in line with the Bank’s dedi-
cation to customer service, the committee reviews
complaint trends and their root causes.
2023 Audit Committee Highlights
The Audit Committee reviewed the financial statements
and their notes and discussed them with the relevant
Bank officers and External Auditors, receiving assur-
ances that the financial statements fairly presented
CIB’s financial position and comply with regulatory
(CBE and FRA) directives and reporting standards.
This is in addition to the 2022 IFRS statements. The
Audit Committee monitored the effectiveness of the
Internal Audit Department and discussed audit engage-
ment reports addressing measures taken to remediate
identified deficiencies. The committee also discussed
the proposal for the fee agreement with the External
Auditors for FY2023. It also initiated the process for
the Internal Controls Framework Assessment and the
Internal Audit Group External Quality Assurance, both
to be undertaken in 2024.
The committee discussed policies, controls related
to compliance, combatting money laundering, and
preventing financial crime. It also monitored the
handling of whistleblowing issues.
The committee met six times in 2023.
Chairperson: Mr. Sherif Samy
Members: Mr. Paresh Sukthankar and Ms.
Neveen Sabbour
Board Risk Committee
Responsibilities: The Risk Committee assists the Board
in carrying out its duties related to Risk Management
oversight, concurs on all Risk Policies, and makes the
necessary resolution recommendations to the Board.
The committee’s role includes assisting the Board in
the organization’s governance and exercising due
care and diligence in terms of the Risk Management
Framework and processes for all Financial and
Non-Financial Risks, as well as Emerging Risks.
2023 Risk Committee Highlights
The committee reviewed Standard Risk reports
advising on Institutional, Consumer, and Business
Banking, as well as other Financial and Non-Financial
Risks’ main challenges that occurred during the
quarters. The committee ensured the existence of a
Risk Management structure and an effective process
for identifying, assessing, and mitigating Credit,
Market, and Operational Risks; other Financial and
Non-Financial Risks; and Emerging Risks and the
adequacy of the existing Risk Measurement method-
ologies. The committee also reviewed and challenged
the Expected Credit Loss (ECL) calculation and was
confident in the Bank’s relatively better and more
stable portfolio quality and healthy coverage ratios.
In addition, the committee reviewed risk-related poli-
cies and addressed the necessary recommendations.
154 • CIB Annual Report • 2023
2023 • CIB Annual Report • 155
ESG • Corporate Governance
Furthermore, it reviewed the adequacy of Capital
Ratios (Economic and Regulatory) and concurred
the Internal Capital Adequacy Assessment
Process (ICAAP) document, the Recovery Plan
(RP), and Write-Off cases that were referred by the
Non-Performing Loans and Investments Committee
(NPLIC) or the Management Risk Committee (MRC).
It also recommended appropriate actions as deemed
necessary to the Board for final approval.
The committee met nine times in 2023.
Chairperson: Mr. Jay-Michael Baslow
Members: Mr. Fadhel Al Ali and Ms. Neveen
Sabbour
Board Governance and Nomination Committee
Responsibilities: The Governance and Nomination
Committee (GNC) advises the Board on the general
oversight of governance matters and ensures the
promotion of a sound governance culture within
the Board and the Bank. The GNC also reviews addi-
tions and amendments to the Board and Committee
Charters, along with the governance group of policies.
This entails a periodic review of the Bank’s corporate
governance structure, while recommending changes,
when and if necessary, to the Board. The committee
also acts as the Nomination Committee, which
contributes to the Board’s effectiveness and gover-
nance, sets the criteria for selecting new directors, and
assists the Board in identifying suitable individuals
for nominations as non-shareholder representative
Board members. The committee’s duties extend to
Board succession planning, including the Bank’s CEO.
2023 Governance and Nomination Committee
Highlights
Throughout 2023, the Governance and Nomination
Committee played a vital role in ensuring effective
corporate governance practices and overseeing
the nomination process for the Board of Directors.
The committee’s efforts were focused on promoting
transparency, accountability, and ethical conduct
throughout the organization. The committee regu-
larly advised the Board on governance matters based
on its periodic review of the Bank’s governance
framework. It also assisted the Board in operating
as effectively as possible and governing the Bank’s
operations to be executed in accordance with
international governance best practices. Succession
planning was a key priority in 2023, with a focus
on identifying and cultivating potential candidates
for key positions to ensure a smooth transition and
continuity of leadership.
During 2023, the committee reviewed and updated
the Bank’s corporate governance policies and
practices to align with evolving regulatory require-
ments, industry best practices, and stakeholder
expectations. In addition, it reviewed the Bank’s 2023
Annual Corporate Governance and BoD reports. The
committee also conducted a comprehensive evalu-
ation of the Board’s effectiveness to identify areas
of improvement and enhance overall performance.
The committee received updates throughout the year
on newly issued or amended laws, executive regula-
tions, rules, or decrees affecting the governance of
the Bank, and it recommended the necessary actions.
The committee also oversaw the nomination process
for new directors in 2023, including identifying
suitable candidates, conducting due diligence, and
recommending appointments to the Board, culmi-
nating in the appointment of three NEDs. Emphasis
was placed on attracting qualified individuals with
diverse perspectives, skills, and experiences to
enhance the Board’s effectiveness and decision-
making. Non-executive board committees were
formed to accommodate the new directors and
leverage their knowledge and experience.
The committee met five times in 2023.
Chairperson: Mr. Paresh Sukthankar
Members: Mr. Rajeev Kakar and Mr. Sherif Samy
Board Operations and Technology Committee
Responsibilities: The Operations and Technology
Committee assists the Board of Directors in fulfilling
its oversight responsibilities over operations and
technology, with respect to direction and alignment
with the Bank’s strategy, efficiency, and support of
the business, robustness and resilience. This is in
addition to ensuring it is at the forefront of develop-
ments, adopting cost-justified best practices, with
the objective of increasing the Bank’s competitive-
ness and reducing risks.
2023 Operations and Technology Committee
Highlights
During 2023, the Operations and Technology
Committee maintained its oversight over 2023 key
strategic projects, direction, and the associated
budget. The committee reviewed the operations
and technology projects and strategies in light
of the Bank’s overall strategy, best practices, and
competitive assessment. Under the committee’s
oversight, the Bank was able to work on several
initiatives to enhance the customer experience and
key service indicators, as well as develop a strategy
to increase Contact Center capacity and, accord-
ingly, improve its service levels. The committee has
also overseen the Bank’s efforts to further enhance
our cybersecurity capabilities.
There was particular focus on the introduction of new
services on our digital channels and establishing the
Bank’s Digital Delivery Center, aiming to enhance
our digital platforms and develop a strategy to create
a value proposition for low-income customers and
Financial Inclusion for the untapped segments.
The committee continued its focus on critical non-
financial risks across different operational and
technology domains, as well as outstanding internal
and external audit issues.
The committee met six times in 2023.
Chairperson: Mr. Rajeev Kakar
Members: Mr. Aziz Moolji, Ms. Hoda Mansour,
and Mr. Jawaid Mirza
Board Compensation Committee
Responsibilities: The Compensation Committee
recommends the adequate compensation level
of directors, senior executive officers, executive
officers, and key personnel, based on their annual
performance evaluations and in accordance with
corporate goals and objectives. Furthermore, the
committee assesses the Bank’s competitive position
on an annual basis to ensure the Bank’s ability to
attract and retain the best calibers.
2023 Compensation Committee Highlights
In 2023, the committee assessed Management
Committee members’ and CEO direct reports’
performances for the year 2022 and recommended
appropriate compensation accordingly. The committee
also reviewed and approved the Bank’s overall vari-
able compensation guidelines for 2022. Salary Review
methodology and guidelines were presented to the
committee for alignment, and a brief about 2022
performance management was presented to show the
performance rating distribution approach that CIB
pursued during 2022.
The committee met two times in 2023.
Chairperson: Mr. Rajeev Kakar
Members: Mr. Paresh Sukthankar, Mr. Aziz
Moolji
Board Sustainability Committee
Responsibilities: CIB’s Board of Directors established
the Board Sustainability Committee (BSC) to ensure
sustainable finance is well-attended on the Bank’s
agenda and that there is continuous and active engage-
ment with sustainability matters across the Bank. The
committee provides the Bank with strategic guidance
on ESG matters and oversees the effective integra-
tion of ESG practices within the Bank’s business and
operations, while ensuring compliance with regulatory
guidelines and alignment with global and regional
frameworks. In acknowledging and identifying that
all businesses have the potential to affect people and
the planet in both positive and negative ways, CIB’s
focus is to ensure that its products and services are
intended to minimize the Bank’s long-term negative
impacts and to create and maximize sustainable value
for all its stakeholders.
2023 Sustainability Committee Highlights
During 2023, the committee convened six times with the
Bank’s executives on all sustainability topics, enacting
its role as a core component of the Sustainable Finance
Governance Structure, and monitored CIB’s compli-
ance with regulator mandates, including the CBE and
FRA. The committee oversaw the implementation of
the sustainability systems and ESG integration within
the Bank, including the Environmental and Social Risk
Management System and Climate Risk Management
System. It also ensured the Sustainable Finance System
and Strategy implementation across the Bank, the prog-
ress of the Green Bond, Sustainable Finance Programs,
and product offerings.
The committee monitored the Bank’s architecture of
Sustainable Finance Frameworks and related disclo-
sures, enacted a proper governance mechanism,
and supported the establishment of an ESG Data
Digitization Platform, strengthening the disclosure
governance, promoting innovative banking solutions
to maximize integrity and coherence. Furthermore,
it ensured Sustainability Stakeholder Engagement,
Partnerships and Advocacy through regional and
156 • CIB Annual Report • 2023
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Highly specialized Board
Committees
6
ESG • Corporate Governance
international events to advance both the business and
the brand to maximize business returns, in addition
to overseeing the development of Sustainable Finance
Education and Capacity Building activities for CIB
staff and clients. This is in addition to peer knowl-
edge exchange, as well as promoting gender equality
through ensuring the existence of proper policies,
activities, and services to constantly improve criteria
of the received Gender Equity Seal.
The committee met six times in 2023.
Chairperson: Ms. Hoda Mansour
Members: Mr. Jay- Michael Baslow, Mr. Fadhel
Alali
External Auditor
Based on the Audit Committee’s statutes, the Audit
Committee proposes the appointment of the two
External Auditors to the Bank’s Board of Directors, to be
presented to the General Assembly for approval of the
nominations and their annual fees. The committee also
appoints an External Auditor to review the financial
statements prepared in accordance with International
Financial Regulatory Standards (IFRS) to comply with
GDR listing rules of the LSE.
Nominated External Auditors should be CBE-listed,
taking into consideration their selection from repu-
table and competent firms, in addition to being
registered with the FRA. This is to ensure their exper-
tise, competence, and ability to review the Bank’s
business.
To promote the independence of the External
Auditors, only the Audit Committee is responsible
for overseeing External Auditors’ technical work,
examining the efficiency of their audit work,
discussing and approving their audit plan, and
evaluating their performance, as well as taking
decisions related to terminating or renewing their
contracts in a manner that does not violate the
provisions of laws in force.
The Audit Committee also continuously ensures
that External Auditors face no difficulties upon
performing their work and oversees the coordination
between External Auditors and the Internal Audit
Group. Moreover, it ensures that there are no restric-
tions impeding communications and cooperation
among the Chief Audit Executive, Chief Compliance
officer, the External Auditors, and all members of the
Board of Directors and Audit Committee.
The members of the Audit Committee also review the
reports issued by the External Auditors, discuss their
observations, follow up on corrective actions, and
notify the Board of Directors, along with presenting
the committee’s directives and recommendations.
Furthermore, to ensure the External Auditors’ inde-
pendence, their services should be limited to the
External Audit function only. In some cases, where one
or both are required to perform any other function,
the Audit Committee’s approval must be obtained in
advance before assigning any service to them.
External Auditors are periodically changed based on
the CBE’s regulations in this regard.
Shareholders’ Rights
CIB’s Annual General Meeting of Shareholders is held
in March of each year, no later than three months
after the end of the Bank’s financial year. Additional
extraordinary general shareholder meetings may be
convened at any time by the Board. Shareholders
are provided with sufficient and timely information
concerning the date, format, location, and agenda of
general meetings, as well as fully detailed and timely
information regarding the issues to be decided at the
meeting. The General Assembly provides a platform
for shareholders to engage with the Board, ask ques-
tions, and exercise their voting rights. Shareholder
consent is required for key decisions, such as:
• The adoption of financial statements
• Voting on proposed dividends by the Board
• The remuneration of NEDs
• The appointment of the External Auditor
• The appointment, suspension, or dismissal of the
members of the Board
• The issuance of shares or rights to shares,
restriction, or exclusion of preemptive rights of
shareholders, and the repurchase or cancellation
of shares
• Amendments to the Articles of Association
158 • CIB Annual Report • 2023
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ESG
Social Development
The CIB Foundation
The CIB Foundation is committed to supporting
children of underprivileged families by extending
quality healthcare to those unable to access them.
Its efforts include not only donations but also the
monitoring of projects’ impact. In addition to the
direct donations made to its fundraising account,
the Bank supports the CIB Foundation with 1.5% of
its annual net profit, aiming to actualize its goals
of alleviating the burdens of families in need. The
CIB Foundation works with private, public, and
non-governmental healthcare providers that offer
free-of-charge services, therefore widening commu-
nity reach and maximizing the value of its efforts by
achieving positive and sustainable results.
2023 Newly Approved Projects
Our Differences…Our Strength
In line with the Foundation’s commitment to
supporting children with disabilities, the CIB
Foundation allocated a budget of EGP 2.5 million
to fund the outfitting of the Sensory, Psychomotor,
a n d O c c u p a t i o n a l T h e ra p y r o o m s a t t h e
National Foundation for Family and Community
D e velopm ent ’s sp e ci ali z ed c ent er in Ma sr
El-Adema. The project serves disabled children
by enhancing their sensory and motor skills, with
a particular emphasis on autistic children. The
project is expected to serve approximately 250
children annually.
Their Care…Our Responsibility
A s par t of C IB Found ation’s lon gstandin g
partnership with the Yahiya Arafa Children’s Charity
Foundation, the CIB Foundation’s Board allocated
EGP 7 million to fund the annual operating costs of
the Ain Shams University Hospital’s four pediatric
units. The fund covers the pediatric congenital heart
defect unit, pediatric heart surgical unit, children
hospital’s pediatric surgical unit, and the women
and obstetrics hospital’s neonatal unit, serving
15,000 children annually.
The CIB Foundation works
with private, public, and non-
governmental healthcare
providers that offer free-of-
charge services.
The Dream of the South
Building on previous successful collaborations
between the CIB Foundation and Aswan University
Hospital, the entities joined forces to establish a
center of excellence in Upper Egypt, dedicated to
treating children with neurological disorders. The
CIB Foundation’s Board allocated EGP 33.12 million
to fund surgical devices and equipment to supply
surgery rooms, expand the ward capacity, and estab-
lish a simulation training center for junior doctors,
with a capacity to serve 1,600 children annually.
One Heart
Capitalizing on the essential role played by the CIB
Foundation in supporting children with critical
heart diseases, the Foundation allocated EGP 24
million to cover 160 pediatric open-heart surgeries
and 40 catheterizations. This contribution led to
a reduction in the number of children on waiting
lists and relieved some of the hospital’s financial
burdens. Since its inauguration, Al Nas Hospital,
managed by Al Joud Foundation, has been a strategic
partner for the CIB Foundation, as it operates in line
with international standards and offers its services
free of charge to underprivileged communities.
Super Smile
In collaboration with Rotary District 2451, CIB
Foundation allocated EGP 3 million to fund 100
cleft lip and cleft palate surgeries to be performed
in Ganoub El Wadi Hospital, Ain Shams University
Hospital, and one private children’s hospital. The
cleft lip and cleft palate defects not only affect the
child’s appearance and constitute speech difficul-
ties but can also be emotionally taxing on them,
making this a vital cause in the Foundation’s
agenda.
Strong Heart…Stronger Future
The longstanding partnership between the Magdi
Yacoub Foundation and CIB Foundation continues
to be a key driver of the latter’s involvement in heart-
related surgeries. The CIB Foundation’s Board allocated
EGP 20 million to purchase 100 catheterization lab
consumables and fund 100 open heart surgeries to
be performed at the Aswan Heart Center (AHC). The
center successfully performs approximately 4,000
surgical and cardiac procedures annually.
L’MISR Initiative
In line with the Presidential Hayah Karima initiative,
the CIB Foundation launched its first national
initiative, “L’MISR”, leveraging on over a decade’s
experience of successful contributions to children’s
health. The initiative is dedicated to supporting
children’s physical and mental health, nurturing
them into becoming productive members of society.
A Warmer Winter
Building on the continuous and fruitful collabora-
tion between the CIB Foundation and the Egyptian
Clothing Bank, the former allocated EGP 23.76
million to manufacture and distribute 120,000 winter
training suits. This year’s collaboration complements
the medical component of L’MISR initiative by
distributing clothing and revisiting the beneficiaries
of the initiative in the schools of Qena, Beni Suef, and
El Behira Governorates.
57357 Fighters
In line with the longstanding partnership between the
57357 Hospital and CIB Foundation, the Foundation’s
Board allocated EGP 4 million annually for a duration
of five years (2024–2028) to cover the costs of treatment
for approximately 500 children a year. This includes
medical tests, examinations, chemotherapy, radio-
therapy, immunotherapy, and more.
Ayady El-Mostakbal Hospital
The CIB Foundation aims to alleviate the burdens
of parents of sick children and support them in
receiving the required treatments and medications
for their children, particularly following the recent
increase in medication costs in light of Egyptian
currency devaluations and hiked inflation. The
CIB Foundation’s Board therefore allocated a
budget of EGP 10.8 million for underprivileged
children suffering from cancer in collaboration
with the AYADY 4040 Association. The project
aims to contribute further by supporting the costs
of radiation therapy for 670 children in Ayady
El-Mostakbal Hospital in Alexandria, which works
on directing beams of high-energy radiation to the
tumor with exceptional precision, making it an
indispensable tool in curing patients.
Faculty of Dentistry Cairo University –
Maxillofacial Unit
Building on successful collaboration between the
Faculty of Dentistry at Cairo University and Rotary
Club of Zamalek, the CIB Foundation’s Board allocated
a fund amounting to EGP 200,000 to purchase the
requested equipment for the Faculty’s Maxillofacial
Department for approximately 14,000 children
annually to replace missing teeth, surrounding tissue,
and jaw and face deformities.
Step by Step
The essential role played by the CIB Foundation
in supporting underprivileged children drove the
Foundation’s Board to allocate a EGP 4.7 million
to fund a project in collaboration with the Hand in
Hand Foundation, aimed at enhancing the lives of
underprivileged children living with amputations
by helping them regain their strength, power, and
spirit by giving them prostheses for amputated
160 • CIB Annual Report • 2023
2023 • CIB Annual Report • 161
ESG • Social Development
limbs. The project aims to provide 400 children
with prostheses to boost their seamless navigation
in society.
aiming to serve 65,000 children. The fund will also
sustain the services provided in the fixed clinics in
Fayoum, Aswan, and Bani Suef.
A Journey of Healing
Building on the successful collaboration between the
CIB Foundation and Shifaa Al-Orman Hospital for
Oncology in Luxor, the Foundation allocated EGP 25.
22 million to equip the emergency department with
the latest and most efficient devices and medical
equipment, as well as securing cancer medication
for the course of four months. This emergency
department is expected to support the hospital in
serving approximately 10,060 children annually. This
specialized center in treating children with cancer
in Upper Egypt will therefore decrease the need for
patients to travel long distances to Cairo, due to the
shortage of such centers in those governorates.
To a Brighter World
As a result of the previous successful collaborations
between the CIB and Maghrabi Foundation, the
former’s Board of Trustees allocated EGP 10 million
to offer free surgical procedures to 1,000 children
in need. These surgeries aim to reduce the number
of patients on waiting lists and cure blindness-
related diseases in children and infants across
Egypt. The surgeries constitute: squint, cataract,
retinal, glaucoma, and other illnesses, which will be
performed at the Maghrabi Eye Hospital in Cairo.
An additional EGP 5 million were allocated to develop
a detailed protocol for Retinopathy of Prematurity
(ROP) care that defines criteria for screening,
treatment, and follow-up services for premature
babies who are at risk of developing ROP, as their
retinal blood vessels are not fully developed before
birth. This protocol will be designed by a professional
team of ophthalmologists who will consequently
provide the needed surgical interventions. The
protocol will be established in collaboration with the
Ministry of Health, national universities, and other
health entities.
Our Kids…Our Future
The allocation of EGP 12 million was approved to
fund a project in partnership with the Ibrahim A.
Badran Foundation. The project will supply 48
convoys in underprivileged areas in Giza, led by a
team of qualified doctors, to offer examination and
treatment services in schools and health centers,
Gift of Life
In light of the successful collaboration between the CIB
Foundation, Rotary Club of Giza Metropolitan, and El
Kasr El Eini Hospital, the Foundation allocated EGP
7.5 million to fund the fourth round of 100 open-heart
surgeries to be performed in El Kasr El Eini Hospital,
reducing the number of children on waiting lists and
alleviating some of the hospital’s financial burdens.
Kids on Wheels
Building on the successful collaboration between
the CIB Foundation and Al-Hassan Foundation
for Differently Abled Inclusion, the former’s Board
approved the allocation of EGP 10 million to fund
the purchase of 100 customized wheelchairs and 100
electric wheelchairs for underprivileged children.
The electric wheelchairs are for high-severity cases,
such as quadriplegics, muscular dystrophy patients,
or cerebral palsy patients, and others. Customized
wheelchairs are for medium/low-severity cases,
designed to provide children with the optimum
mobility. The wheelchair allows five-year-old
children to achieve physical independence despite
mobility constraining issues.
Ongoing Projects from Previous Years
Strong Heart…Stronger Future
The CIB Foundation increased the budget dedicated
to The Magdy Yacoub Heart Foundation’s New Global
Heart Center in Cairo from EGP 35 million to EGP
43.75 million. The project is set to be completed over
the course of three years and covers the establish-
ment of a pediatric catheterization lab that allows
doctors to perform minimally invasive tests and
procedures on patients with various heart condi-
tions. The catheterization lab will serve around 960
children annually.
A Journey of Hope
Building on our successful collaboration with the
Nile of Hope Foundation after establishing a center
of excellence to treat children with congenital
defects in the great Alexandria region, the CIB
Foundation’s Board allocated the fund amounting
to EGP 18.38 million. The allocation is dedicated to
funding 65 pediatric open-heart surgeries and 129
catheterizations to be performed in Nile of Hope
Hospital, in addition to, purchasing a heart-lung
machine (HLM), therefore reducing the number of
children on waiting lists for surgeries.
L’MISR Initiative
Sonaa El Kheir Foundation
The CIB Foundation’s Board allocated EGP 19.2
million to fund another round of the project with
the Sonaa El Kheir Foundation. The funds will enable
medical convoys to reach poverty-stricken areas in
Beni Suef and El Behira governorates to serve 95,000
children across 88 elementary and middle schools.
These medical convoys will provide comprehensive
medical services to those children in many fields,
including ophthalmology, general pediatrics, anemia
and stunting, diabetes, and others. The convoys
will also provide necessary medications, tests and
surgeries if needed.
Healthy Children
The CIB Foundation approved a contribution of EGP
15 million to fund the second round of the Healthy
Children project in collaboration with the Raie Masr
Foundation for Development. The project aims to
purchase and outfit three Mobile Clinics (vehicles)
and cover the operating costs of 900 medical convoys
in which a team of qualified doctors will provide
examinations and treatments to children in schools
and health centers. The project is expected to serve
200,000 Children annually.
Their Care…Our Responsibility
In alignment with the CIB Foundation’s long-
standing partnership with Yahiya Arafa Children’s
Charity Foundation, the CIB Foundation’s Board
allocated EGP 6 million to fund the annual oper-
ating costs of the Ain Shams University Hospital’s
four pediatric units. This covers the pediatric
congenital heart defect, pediatric heart surgical,
children’s hospital’s pediatric surgical, and the
women and obstetrics hospital’s neonatal units,
serving 17,000 children annually.
The CIB Foundation’s Board also allocated EGP 9
million in 2021 to retrofit the depreciated medical
equipment and operate the five pediatric units at
the Ain Shams University Hospitals, which are the
pediatric congenital heart defect unit, pediatric
heart surgery unit, women and obstetrics hospital’s
neonatal unit, children’s hospital’s pediatric surgery
The CIB Foundation
increased the budget
dedicated to The Magdy
Yacoub Heart Foundation’s
New Global Heart Center in
Cairo from EGP 35 million to
EGP 43.75 million.
unit, and the children’s hospital’s neonatal unit.
Our Differences…Our Strength
The CIB Foundation allocated EGP 1 million to outfit the
sensory, psychomotor, and occupational therapy rooms
in the Asmarat Center, supervised by the National
Foundation for Family and Community Development,
to improve the sensory and motor skills of children with
disabilities, particularly autistic children. The funding
is expected to serve 250 children annually.
One Heart
The CIB Foundation allocated EGP 24.36 million
to equip the NICU and PICU with new state-of-art
equipment at Al Nas Hospital. Since its inauguration,
Al Nas Hospital, managed by Al Joud Foundation,
has been a strategic partner for the CIB Foundation.
The hospital operates in line with international stan-
dards, and the two units will serve approximately
2,000 children annually and will offer its services free
of charge to underprivileged communities.
57357 Fighters
Maintaining the longstanding partnership between
57357 Hospital and the CIB Foundation, the
Foundation’s Board allocated funding amounting to EGP
30 million to cover the costs of 5,000 children’s treatment.
Costs cover medical tests, examinations, chemotherapy,
radiotherapy, immunotherapy, and more.
The CIB Foundation allocated EGP 30 million to
establish the Digital Pathology Lab at the hospital.
The Lab uses computer-based technology to generate
information from digitized specimen slides. The
specimen glass slides (conventional) are converted
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ESG • Social Development
into digital slides that can be electronically shared
and analyzed using computer software. This piece
of technology will increase diagnosis efficiency
by rendering faster results and reducing human
error. The automated lab is expected to benefit
approximately 7,000 children annually.
Furthermore, the CIB Foundation disbursed the
final tranche of EGP 4 million in their five-year
contract (2019–2023) to 57357 Hospital at the
beginning of 2023. The funds were used to support
the hospital’s essential services, which included
nuclear medicine, radiography, laboratories,
medication, and supplies. The fund served 836
children throughout 2023.
Rehabilitation Center for Children with
Cerebral Palsy and Muscular Dystrophy
As part of the CIB Foundation’s mission to support
children in need, and in line with the Presidential
initiative to support children with cerebral palsy
and muscular dystrophy, The CIB Foundation’s
Board allocated a total budget of EGP 54 million
to establish the first Rehabilitation Center for
Children with Cerebral Palsy and Muscular
Dystrophy in the region. The goal of the project is
to provide medical services and rehabilitate chil-
dren with these physical disabilities. This project
is expected to serve 1,000 children annually.
Supporting Health Interventions for Refugee
Children in Egypt
A total of EGP 3.1 million was allocated to treat 240
refugee children in Egypt, in collaboration with the
UNHCR. The funding will go to children suffering
from diseases that require secondary and tertiary
medical care, such as cardiovascular and chronic
respiratory diseases, diabetes, neurological disor-
ders, cerebral palsy, and cancer.
For a Better Childhood
The CIB Foundation’s Board allocated EGP 1.91
million to fund 50% of the annual operating costs
of the pediatric and neonatal ICU sections of
Benha University hospital, which were outfitted
through a fund from the Foundation. The two
units serve approximately 3,500 children in the
Qalyubia region annually. This fund ensures the
project continues to operate sustainably at the
highest level of service provided to the children
in both units.
A Step for Life
CIB Foundation’s Board allocated EGP 12.5 million to
establish a specialized center for the psychological,
physiological, and social rehabilitation of children
with disabilities in Beni Suef University to integrate
them into society, in collaboration with the Awad
Charity Foundation. The Outfitting of Rehabilitation
Center will include a pediatric rehabilitation unit, a
psychomotor room, and an electromyography unit,
which are expected to serve 20,000 children annually.
Together We Can
The CIB Foundation allocated EGP 1 million to
support the treatment of patients suffering from
epidermolysis bullosa (EB), a rare genetic skin
disease caused by the absence of VII collagen that
attaches the skin’s layers together, in collaboration
with the Yasmin El Samra Charity Foundation. This
disease causes the skin to be fragile and blister and
is estimated to affect one in 40,000 people.
Superstars Are Born from Scars
The CIB Foundation’s Board allocated EGP 39.02
million to fund the outfitting of Ahl Masr Trauma
and Burn Hospital’s pediatric floor as part of its third
collaboration with the Ahl Masr Foundation. This
collaboration comes in response to a severe shortage
in medical care for burn victims across Egypt. It is
expected to serve around 3,500 children annually.
Spreading Hope
In collaboration with the Sawiris Foundation for Social
Development (SFSD), the CIB Foundation’s Board dedi-
cated EGP 6.52 million for the Beit Yehmini program,
an initiative by SFSD that provides a comprehensive
package of services to underprivileged families living
in unsafe environments with the aim of improving
their living conditions. The CIB Foundation funds
medical convoys to provide children under the Beit
Yehmini initiative with necessary health services. The
Ibrahim Badran Foundation (IBF) is the implementing
partner leveraging its wide experience in providing
medical convoys’ services to deprived areas. The
project is expected to serve more than 30,000 children.
The Pediatric Surgery Hospital – Part of Ain
Shams University Integrated Medical City
In support of Ain Shams University’s goal to estab-
lish an integrated medical city on campus, the CIB
Foundation allocated a budget of EGP 100 million
to sponsor the surgical wing of the hospital, which
equips 10 surgical theaters with the capsule system.
The fund will cover the medical and non-medical
furniture in the 10 theaters. The new pediatric
surgery hospital project is expected to serve approxi-
mately 30,000 surgeries annually, enabling Ain Shams
University to double its current capacity.
Little Smiles
The CIB Foundation allocated a budget of EGP
4.8 million to fund the establishment of a General
Anesthesia Unit in Beni Suef University’s Faculty of
Dentistry, given the larger demand for general anes-
thesia when performing dental operation on toddlers
and infants. The project is expected to serve 1,000
children annually.
Children Without Risk
Building on successful collaborations with the
Garden City Cosmopolitan Lions Club, the CIB
Foundation’s Board approved EGP 7.5 million to
establish a fully equipped open-heart surgery room
for children in the Mabara El Maadi Hospital.
It will medically serve children with congenital
heart defects and those who suffer from heart
complications. This project is expected to serve
approximately 720 children annually.
Bridge of Knowledge
The Foundation is funding a five-year education
and training program for 150 staff members of the
Ain Shams clinical team, with a total fund of GBP
880,000 in partnership with the Great Ormond Street
Hospital for Children (GOSH) in London.
Following the program’s completion, the Ain Shams
University Children’s Hospital is expected to double
its capacity and serve an additional 67,200 children
annually, enhancing its overall level of care.
GOSH has an international center of excellence in
pediatric care, globally recognized as one of the few
world-class hospitals for children suffering from
rare, complex, or multiple illnesses. The emphasis on
education and training projects is key to the delivery
of improved patient care. GOSH trains more pediatric
specialist doctors than any other center in Europe and
has Europe’s largest pediatric nurse education program.
The center will work with the Ain Shams University
Children’s Hospital to deliver bespoke education and
training with specific focus on pediatric/neonatal
intensive care and hematology/oncology.
Heal a Child… Change the World
The CIB Foundation allocated a total budget of EGP
2.15 million to support the annual operating costs
for two residence facility shelters in 6th of October
and Imbaba, operated and supervised by Abnaa
Al Ghad Foundation “Banati.” The two shelters
provide various types of protection and support to
serve approximately 200 children at risk annually,
including homeless children and children deprived
of family care.
A Vision to the Future
Following several successful collaborations
between the CIB Foundation and the Alexandria
University Hospital, the Board allocated EGP 1.31
million to fund the purchase of a 3D visualiza-
tion system in addition to the previously funded
ophthalmology operation microscope. The 3D
visualization system will provide up to five times
extended depth of field, up to 48% increased
magnification, and up to 42% increased depth
resolution. With both the visualization system
and the microscope, they can increase precision,
reduce operating time, and, in turn, raise surgery
success rates. This project is expected to serve
48,000 children annually.
Gift of Life
A total allocation of EGP 4.5 million was approved
to fund 90 open-heart surgeries for underprivileged
children, to be performed at El Kasr El Eini Hospital
in collaboration with the Rotary Club of Giza
Metropolitan. This partnership aims to reduce the
number of children on waiting lists while alleviating
some of the hospital’s financial burdens.
A Warmer Winter
The CIB Foundation allocated EGP 21 million
to fund the ninth round of collaboration with
the Egyptian Clothing Bank, distributing warm
clothing to children to make sure they are warm
during harsh winters. The funding covers 100,000
winter training suits and pairs of shoes to be
distributed to children in underprivileged and
poverty-stricken areas in the Red Sea, Al Wadi Al
Gadid, Al Minya, Beni Suef, Fayum, Cairo, and Giza.
It also covers relief convoys to be sent to victims
of natural disasters nationwide.
164 • CIB Annual Report • 2023
2023 • CIB Annual Report • 165
Total disbursements in 2023
253.2EGP/MN
ESG • Social Development
Beneficiary
Amount in EGP
L’MISR Initiative – A Warmer Winter
Their Care…Our Responsibility
57357 Fighters
Withholding Tax
Superstars Are Born from Scars
L’MISR Initiative – Healthy Children
Gift of Life
Our Differences…Our Strength
Our Kids, Our Future
One Heart
Children Without Risk
A Journey of Hope
Heal a Child…Change the World
L’MISR Initiative – Sonaa El Kheir Foundation
A Step for Life
Together We Can
The Pediatric Surgery Hospital – Part of Ain Shams University
Integrated Medical City
Rehabilitation Center for Children with Cerebral Palsy and Muscular
Dystrophy
Strong Heart…Stronger Future
Spreading Hope
A Journey of Healing
The Dream of the South
Step by Step
To a Brighter World
23,760,000.00
13,237,609.65
5,638,863.75
145,138.80
9,295,059.39
2,705,775.00
1,142,470.35
979,992.50
2,998,320.00
24,886,585.26
2,243,084.69
4,595,000.00
448,338.72
19,154,370.00
4,715,198.90
250,000.00
50,000,000.00
27,012,353.00
25,875,000.00
4,888,440.00
5,101,660.00
20,497,291.89
1,164,375.00
2,500,000.00
Total Disbursements During 2023 in EGP
253,234,926.90
166 • CIB Annual Report • 2023
2023 • CIB Annual Report • 167
ESG
FRA Disclosures
Environmental, Social and Governance (ESG) Key Performance Indicators (KPIs)
ESG Key
Performance
Indicators
(KPIs)
Actions taken by the
Company
Answer
Yes No
Comment/Clarification
Environmental KPIs
• Has the company developed
any official Environmental and
Social (E&S) or Sustainability
policies?
•
• Is this policy originating from
within the company or derived
from global or national policies?
•
Environmental
Operations &
Oversight
• Does the company identify
and assess the environmental
and social risks arising from its
economic activity?
•
CIB’s Sustainable Finance Policy: Released in 2020, serves as
the foundation for embedding sustainability across the Bank.
It emphasizes CIB’s commitment to streamlining sustainability
and integrating ESG principles across all business lines. The
Policy is applicable to all the Bank’s departments, functions,
and lines of business. Annually reviewed and updated, the
policy mirrors the dynamic nature of sustainability, effectively
addressing and integrating emerging trends in Sustainable
Finance. CIB – Sustainable Finance Policy: https://www.cibeg.
com/-/media/project/downloads/about-cib/cib-corporate-
responsibility-formerly-community/corporate-sustainability/
policy/cib-sustainable-finance-policy-a4-en-v3.pdf
CIB’s Sustainable Finance Strategy, integrated within the Bank’s
five-year corporate strategy, is aligned with the Sustainable
Finance Policy and utilizes the Policy’s principles and guidelines
to shape its approach and implementation. This policy asserts
CIB’s commitment to implementing sustainable finance across
its lines of business by integrating the environmental, social, and
governance principles into its policies, procedures, operations, and
culture. This policy defines and sets a comprehensive framework
that translates the Bank’s commitments into actions and instils a
governance framework to monitor proper implementation. This
policy is supported by a series of additional policies catering to
specific themes, sectors and lines of business.
CIB’s Environmental and Social Risk Management System
(ESRMS) was in place since 2016 and it has been updated in
2021. The system is the Bank’s basis for maintaining a strong
risk management system, which is core to the Bank’s operating
principles. The ESRMS consists of a set of policies, procedures,
and tools that identify and manage a financial institution’s
exposure to the environmental and social risks of its clients.
The system is aligned with CIB’s Sustainable Finance Strategy and
ensures compliance with the Multilateral Development Banks’
ESRM requirements. The system is aligned with national laws
and the International Finance Corporation (IFC), the European
Bank for Reconstruction and Development (EBRD) performance
standards, and the Equator Principles (EP).
ESG Key
Performance
Indicators
(KPIs)
Actions taken by the
Company
Answer
Yes No
Comment/Clarification
CIB is the process to implementing a Solid Waste Management
(SWM) System across its head offices to promote responsible
environmental management. This initiative aims to reduce CIB’s
environmental impact by minimizing waste and promoting
sustainable practices in its operations. The system includes
measures such as waste segregation, recycling, and responsible
disposal of hazardous waste. The Bank has launched several
(SWM) programs:
•
•
•
E-Waste Management CIB monitors the quantities of
electronic waste and recycles it through designated waste
management companies.
Recycling Bank Cards in collaboration with an Egyptian start-
up specializing in waste management, CIB’s shredded cards
are now collected and recycled. It contributes to reducing
greenhouse gas emissions associated with raw material
consumption and waste disposal of bank cards.
Bank Statements Project CIB has partnered with a certified
local waste management enterprise, ensuring the responsible
disposal and upcycling of undelivered and returned bank
statements. The bank also ensures the safe and secure
disposal of all bank statements through shredding, paper
milling, and de-inking before reusing the recycled paper. These
initiatives demonstrate CIB’s commitment to reducing its
environmental impact and promoting sustainable practices.
In 2021 CIB was a founding member of the Net-Zero Banking Alliance
(NZBA), the Bank sets intermediate and long-term targets in decar-
bonizing its financed emissions (2030 targets) for its corporate loans
of two of the Bank’s carbon-intensive sectors; Power generation and
Commercial & Residential Real Estate. CIB-NZBA Climate Targets
Report: chttps://www.cibeg.com/-/media/project/downloads/
about-cib/cib-corporate-responsibility-formerly-community/cib-
--nzba-report-draft---final---21-june---01.pdf
• Does the company follow
specific policies concerned with
waste recycling, water consump-
tion, or energy consumption?
•
• Does the company set any goals
related to reducing greenhouse
gas (GHG) emissions?
• Does the management have
any system/certification
regarding the company’s envi-
ronmental practices (ISO 14001
certification)?
•
•
168 • CIB Annual Report • 2023
2023 • CIB Annual Report • 169
ESG • FRA Disclosures
ESG Key
Performance
Indicators
(KPIs)
Actions taken by the
Company
Answer
Yes No
Comment/Clarification
Environmental Disclosures
Carbon
Emissions /
Greenhouse
gases (GHG)
• Does the company calculate
the total amount of carbon
emissions (Carbon Footprint) in
metric tons?
•
2.
3.
Since 2018 CIB has been reporting and publishing its “Carbon
Footprint” on its own/ internal operations covering (Scope 1,2
and 3). CIB’s ecological footprint assessment focuses on three
primary impact categories:
1.
land footprint, which measures the total amount of land
used to provide resources;
carbon footprint, which measures the total amount of
greenhouse gas emissions; and
water footprint, which measures the total amount of
water consumed, both directly and indirectly. CIB 2022-
2023 ESGDD Integrated Report: cibeg.com/-/media/
project/downloads/about-cib/cib-corporate-respon-
sibility-formerly-community/corporate-sustainability/
publications/sustainability-reports/esgdd-reportcib17-
jan-2024-masader.pdf
• Does the company calculate the
total amount of energy directly
consumed?
•
Energy Sources
usage and
diversification
• Does the company calculate the
percentage of energy consump-
tion according to the type of
generation source?
•
CIB calculates its directly consumed energy under (Scope 1 and 2).
•
•
Total Purchased Electricity in 2022: 40,462,182 kWh
Total Purchased Chilled Water in 20222: 32,383,057 kWh To
know more about the Bank’s Operational Indicators, please
visit “CIB 2022-2023 ESGDD Integrated Report”: cibeg.
com/-/media/project/downloads/about-cib/cib-corporate-
responsibility-formerly-community/corporate-sustainability/
publications/sustainability-reports/esgdd-reportcib17-jan-
2024-masader.pdf
Total energy consumption (including renewable energy) in 2022:
74,045 MWh
To know more about the Bank’s Operational Indicators,
please visit “CIB 2022-2023 ESGDD Integrated Report”: cibeg.
com/-/media/project/downloads/about-cib/cib-corporate-
responsibility-formerly-community/corporate-sustainability/
publications/sustainability-reports/esgdd-reportcib17-jan-
2024-masader.pdf
• Does the company calculate
the percentage of annual saved
energy?
•
• Total energy saved in 2022: 1.23%
• Total Annual Renewable Generation of (Solar Panel
Systems) in 2022: 473,597 kWh
• Percentage Renewable energy from total electricity
consumption in 2022: 1.5%
ESG Key
Performance
Indicators
(KPIs)
Actions taken by the
Company
Answer
Yes No
Comment/Clarification
Water Usage
• Does the company calculate the
total amount of water annual
consumed?
• Does the company calculate the
total amount of annual water
recycled and treated?
Waste
Management
• Does the company calculate the
total amount of waste generated
or recycled and that, which has
been treated according to type
and weight?
Social KPIs
• Does the company disclose the
number of male and female
employees according to the type
of employment (temporary or
permanent)?
• Does the company disclose the
percentage of total employees
who are male and female?
• Does the company disclose the
percentage of positions held by
males and females (specifically
for entry-level and mid-level
jobs)
• Does the company disclose the
percentage of positions held by
males and females (specifically
for senior-level and executive
positions)?
• Does the company disclose the
average pay ratio for females
compared to the males?
•
•
•
•
•
•
•
•
Total water footprint in 2022: 7,689,475 m3
Total Wastewater Treatment in 2022: 1,311,112 m3
Office solid waste disposal: 1454 Tons
• Permanent Employees: 6,942 (Male: 4,907 – Female: 2,035
• Temporary Employees: 878 (Male: 617 – Female: 261)
Male: 5,524 – Female: 2,296
Entry Level: (Male 66%) – (Female 34%)
Mid-level jobs, according to the Bank’s classification will be the
Middle Management: (Male: 84%) – (Female: 16%)
Senior Management: (Male 74%) – (Female 26%) Executive
Management: (Male 86%) – (Female 14%)
170 • CIB Annual Report • 2023
2023 • CIB Annual Report • 171
ESG • FRA Disclosures
ESG Key
Performance
Indicators (KPIs)
Actions taken by the
Company
Answer
Yes No
Comment/Clarification
ESG Key
Performance
Indicators (KPIs)
Actions taken by the
Company
Answer
Yes No
Comment/Clarification
Employee Turnover rate
• Does the company disclose the
annual percentage rate of turn-
over for full-time employees?
• Does the company disclose the
annual percentage rate of turn-
over for part-time employees?
• Does the company disclose
the annual percentage rate of
turnover for contract employees
and consultants
Non-Discrimination
• Does the company follow a
policy condemning sexual
harassment and a non-
discrimination policy based on
any racial, religious, or gender
basis?
Global Health & Safety
Standards
• Does the company follow an
occupational health and safety
(OHS) policy and/or a policy
related to global health and
safety standards ( for example
ILO’s International Labor
Standards on Occupational
Safety and Health)?
•
x
x
•
•
In 2022 total employee turnover rate was 5.7%
• What is the number of occupa-
tional accidents if any?
•
The Staff Issues & Ethics Committee was established
to provide a platform for employees to voice their
concerns and receive independent decisions.
Furthermore, if there is any element of discrimination,
the case is referred to the Legal Department for
investigation. In addition, the Bank’s HR policy
aligns with and implements relevant ESG principles,
standards, frameworks, and best practices while
remaining compliant with national laws and
regulations. Additionally, the policy ensures the
measurement, monitoring, control, and consistent
reporting of ESG indicators, as outlined in the
Sustainable Finance Policy. Code of Conduct Policy:
https://www.cibeg.com/-/media/project/downloads/
about-cib/risk-and-responsibility/corporate-
governance/cib---code-conduct-july-2022.pdf
CIB prioritizes its employees’ wellbeing and follows
Egyptian laws and regulations to guarantee that its
people work safely and stay healthy. The Bank follows
Labor Law No. 12 of 2003, pertaining to private sector
companies which controls the relationship between
employers and employees.
In 2022, CIB conducted 20 Occupational Health and
Safety (OHS) inspections with zero work-related
injuries and zero work-related ill health reported.
In addition to organizing initiatives and training to
ensure health and safety in the workplace.
• Does the company offer train-
ings related to environmental,
social AND Occupational
Health and safety (OHS) issues
for employees. If the answer is
yes, please disclose the number
of trainings hours?
Child & Forced Labor
• Does the company follow a
policy prohibiting child labor
and forced labor?
• Does that policy apply to the
suppliers and vendors dealing
with the company?
•
•
•
CIB conducted 20 Occupational Health and Safety
(OHS) inspections with zero work-related injuries
and zero work-related ill health reported.
CIB 2022-2023 ESGDD Integrated Report: cibeg.
com/-/media/project/downloads/about-cib/
cib-corporate-responsibility-formerly-community/
corporate-sustainability/publications/
sustainability-reports/esgdd-reportcib17-jan-2024-
masader.pdf
The Bank has conducted and organized several
training sessions to ensure health and safety in the
workplace which includes:
• Primary Medical Check-ups: 768 employees
• Safe Driving Training: 11 trainees
• OHS Specialist Advanced (OHS employees with all
necessary skills for following and observing OHS
issues): 16 sessions – 17 trainees
• OHS Committee Advanced & OHS Committee
Basic trainings help OHS members (To be familiar
and know their responsibilities and duties well):
16 sessions – 56 trainees
• First Aid & Cardiac Resuscitation Training: 73
trainees
• Safety plan/ Firefighting: 350 trainees
These policies are included in the Bank’s policies.
172 • CIB Annual Report • 2023
2023 • CIB Annual Report • 173
ESG • FRA Disclosures
ESG Key
Performance
Indicators (KPIs)
Actions taken by the
Company
Answer
Yes No
Comment/Clarification
ESG Key
Performance
Indicators (KPIs)
Actions taken by the
Company
Answer
Yes No
Comment/Clarification
Labor Rights
• In addition to the requirements
of Egyptian Labor Law, does the
company follow the laws and
standards of the International
Labor Organization or any other
international framework, stan-
dards, or laws related to labor’s
rights?
• Does that policy include the
suppliers and vendors dealing
with the company?
Governance KPIs
• Does the company disclose the
number and percentage of the
board of directors occupied by
males and females?
• Does the company disclose
the number and percentage of
committee chairs occupied by
males and females?
•
•
•
•
Bribery/ Anti-
Corruption
• Does the company issue any
decisions related to combating
bribery / corruption and follow
them?
•
The bank’s internal policy follows the Egyptian Labor
Law however, it integrates additional rules and regula-
tions.
Ethics and Code of
Conduct
• Does the company issue code
of conduct / Ethic and follow
them?
•
Data Privacy
• In addition to the requirements
of the Egyptian data protec-
tion law, does the company
follow any other international
frameworks, rules, or recom-
mendations regarding data
privacy?
•
Sustainability
Reporting &
Disclosures
• Does the company issue
sustainability report according
to GRI, CDP, SASB, IIRC, UNGC,
or any other type of sustain-
ability reports frameworks?
•
11 Board members with 18% Female representation
in the Board
Six Board Committees: (5 chaired by males – 1
chaired by a female)
Four Executive Committees: (4 Chaired by Males)
The Anti-bribery and Corruption Policy at CIB is
designed to prevent bribery and corruption while
promoting ethical standards for all stakeholders.
It helps protect the bank’s integrity and reputation
by providing guidelines for employees to identify
and manage risks related to bribery and corruption.
The Compliance Group is involved in reports related
to bribery, corruption, and misconduct, as received
through CIB’s whistleblowing or anti-bribery and
corruption channels.
These reports are handled independently and confi-
dentially as per the stipulations of the related policies.
During 2022, there was no bribery cases recorded.
Code of Conduct Policy:
https://www.cibeg.com/-/media/project/
downloads/about-cib/risk-andresponsibility/corpo-
rate-governance/cib---code-conduct-july-2022.pdf
CIB’s Security & Resilience strategy aligns with
the Bank’s digital strategy and aspirations, staying
informed about the ever-changing threat landscape
and evolving attack techniques. CIB’s focus is
directed toward ensuring Information Security,
Data Protection, Cybersecurity, Disaster Recovery,
Business Continuity, and Crisis Management. In
2022, CIB updated all of its IT and cybersecurity
policies, aligning them with ISO 22301- Business
Continuity Management Systems, ISO 27001-
Information Security Management Systems,
Payment Card Industry Data Security Standard
(PCI-DSS), Control Objectives for Information
and Related Technologies (COBIT), Central Bank
of Egypt regulations, SWIFT Customer Security
Program (CSP), and relevant laws and regulations.
In 2022, the Bank had Zero data privacy breaches.
CIB 2022-2023 ESGDD Integrated Report: https://
www.cibeg.com/-/media/project/downloads/about-
cib/cib-corporateresponsibility-formerly-community/
corporatesustainability/publications/sustainability-
reports/esgdd-reportcib17-jan2024-masader.pdf
- CIB 2022-2023 ESGDD Integrated Report: https://
www.cibeg.com/-/media/project/downloads/
about-cib/cib-corporate-responsibility-formerly-
community/corporate-sustainability/publications/
sustainability-reports/esgdd-reportcib17-jan-2024-
masader.pdf
- CIB 2023 Principles For Responsible Banking
(PRB) Report: https://www.cibeg.com/-/media/
project/downloads/about-cib/cib-corporate-
responsibility-formerly-community/cib-prb/
cib-2023-principles-for-responsible-banking.pdf
- CIB 2021 Equator Principles (EP) Report: https://
www.cibeg.com/-/media/project/downloads/
about-cib/cib-corporate-responsibility-formerly-
community/equator-principles-report/
cib---equator-principles.pdf
- CIB 2022 Net-Zero Banking Alliance
(NZBA) Report: https://www.cibeg.com/-/
media/project/downloads/about-cib/cib-
corporate-responsibility-formerly-community/
cib---nzba-report-draft---final---21-june---01.pdf
174 • CIB Annual Report • 2023
2023 • CIB Annual Report • 175
ESG • FRA Disclosures
ESG Key
Performance
Indicators (KPIs)
Actions taken by the
Company
Answer
Yes No
Comment/Clarification
ESG Key
Performance
Indicators (KPIs)
Actions taken by the
Company
Answer
Yes No
Comment/Clarification
• Is the company striving to
achieve specific goals from the
United Nations Sustainable
Development Goals?
•
To deliver on its Responsible Growth vision, CIB built
on the Sustainability Systems Building method and
set the Sustainable Finance (SF) Strategy, integrated
within CIB’s Corporate Strategy, ensuring a Bank-
wide implementation of the sustainability mandate.
Understanding the manifold nature of climate and
socioeconomic impacts on national and global levels
has been the Bank’s first step in aligning its goals and
strategy with international commitments and frame-
works. CIB’s progress and implementation of the Global
Sustainability Frameworks (TCFD, PRB, NZBA, EP, etc.)
is not only complements but also advances its commit-
ment to the United Nations Sustainable Development
Goals (UN SDGs), the Paris Agreement, Africa Agenda
2063, Egypt Vision 2030.
• Does the company identify these
goals and report on the progress
made within the framework of
the United Nations Sustainable
Development Goals (SDGs)?
•
Please revert to answered question (G5.1) which
includes all Sustainabilityrelated reporting which
showcases CIB progress in its commitment within
global sustainability frameworks in addition to
national and international strategies.
• Has the company clearly
declared its commitment
toward corporate social
responsibility standards?
•
Corporate social responsibility (CSR) is at the heart of
CIB’s core values. This year, we implemented various
CSR projects and supported initiatives carried out by
other organizations. We diversified our community
development activities by expanding our scope to
include sports, culture, and social welfare.
As for “CIB Foundations” it seeks to ease the burden
on families in need of affordable healthcare services.
In pursuit of this vision, the Foundation is committed
to enhance the quality of services in our partner
institutions to provide the best possible care for young
Egyptians. A productive community requires a healthy
citizenry, and CIB Foundation strives to ensure that
Egyptian children are receiving the care they deserve to
lead the healthiest lives possible.
To know more about CIB’s CSR programs and
initiatives and CIB Foundation activity progress and
achievements, visit the following links:
- CIB 2022-2023 ESGDD Integrated Report: https://
www.cibeg.com/-/media/project/downloads/about-
cib/cib-corporate-responsibility-formerly-community/
corporate-sustainability/publications/sustainability-
reports/esgdd-reportcib17-jan-2024-masader.pdf
- CIB 2022 Annual Report: https://www.cibeg.com/-/
media/project/downloads/investor-relations/
ir-library/annual-reports/2022/ar22.pdf
- CIB 2021 Foundation Report: https://www.cibeg.
com/-/media/project/downloads/about-cib/
cib-corporate-responsibility-formerly-community/cib-
foundation/2021-cib-foundation-activity-report-en.pdf
• Does the company follow a
clear and explicit policy /
principle regarding community
investments?
•
• Does the company participate
in public or private sector
initiatives concerned with
community development?
•
Please revert to answer question G5.4 - To know
more about CIB’s CSR programs and initia-
tives and CIB Foundation activity progress and
achievements, visit the following links: - CIB
2022-2023 ESGDD Integrated Report: https://
www.cibeg.com/-/media/project/downloads/
about-cib/cib-corporate-responsibility-formerly-
community/corporate-sustainability/publications/
sustainability-reports/esgdd-reportcib17-jan-2024-
masader.pdf
- CIB 2022 Annual Report: https://www.cibeg.com/-/
media/project/downloads/investor-relations/
ir-library/annual-reports/2022/ar22.pdf
- CIB 2021 Foundation Report: https://www.cibeg.
com/-/media/project/downloads/about-cib/
cib-corporate-responsibility-formerly-community/
cib-foundation/2021-cib-foundation-activity-report-
en.pdf
Please revert to the answered question (G5.4). To
know more about CIB’s CSR programs and initia-
tives and CIB Foundation activity progress and
achievements, visit the following links:
- CIB 2022-2023 ESGDD Integrated Report: https://
www.cibeg.com/-/media/project/downloads/
about-cib/cib-corporate-responsibility-formerly-
community/corporate-sustainability/publications/
sustainability-reports/esgdd-reportcib17-jan-2024-
masader.pdf
- CIB 2022 Annual Report: https://www.cibeg.com/-/
media/project/downloads/investor-relations/
ir-library/annual-reports/2022/ar22.pdf
- CIB 2021 Foundation Report: https://www.cibeg.
com/-/media/project/downloads/about-cib/
cib-corporate-responsibility-formerly-community/
cib-foundation/2021-cib-foundation-activity-report-
en.pdf
External Assurance
• Are the company’s ESG
disclosures assured by an
independent third party?
•
All conducted (Sustainability/ ESG) related reports
are assured with either (Limited or Independent
Assurance).
2023 • CIB Annual Report • 177
ESG • FRA Disclosures
Task force for Climate Related Financial Disclosers (TCFD)
TCFD Key
Performance
Indicators
Actions taken by the
Company
Answer
Yes No
Governance
Comment/Clarification
• Does the board have oversight
of climate-related risks and
opportunities?
•
Climate Related
Governance
• Does the management have a
role in assessing and managing
climate related risks and
opportunity?
•
The Commercial International Bank (CIB) believes
in the importance of climate-related risks and
opportunities, and therefore the Board of Directors
oversees how climate-related risks and opportuni-
ties are managed, through its committees: the
Sustainability Committee and the Risk Committee.
It is worth noting that the bank issued its first report
on the framework of Climate-Related Financial
Disclosures (TCFD) in 2023, which highlights the
bank’s progress in implementing the recommenda-
tions of the working group/Task Force on the four
main axes of governance, the bank’s strategy, and its
ability to manage risks, in addition to the metrics
and goals related to climate change
Link to the climate-related financial disclosures
report:
https://www.cibeg.com/-/media/project/
downloads/about-cib/cib-corporate-responsibility-
formerly-community/cib-tcfd-report.pdf
CIB has dedicated specific and separate roles
and responsibilities for measuring and managing
Environmental, Social and Governance (ESG) risks,
including climate-related risks and opportunities,
from the Board of Directors down to operational
levels and business departments to ensure adequate
oversight and day-to-day management.
The bank has a Sustainable Finance steering
committee emanating from the Senior Management
Committee, headed by the Chief Executive Officer
and Managing Director of the bank, and includes
members from the executive management such
as the Head of the Sustainable Finance Sector and
the Head of the Risk Sector. The bank also has a
Sustainable Finance department, which plays a key
role in identifying and evaluating climaterelated
opportunities, in addition to an independent envi-
ronmental, social and governance risk department
to serve as the second line of defense for evaluating
and measuring climate-related risks.
TCFD Key
Performance
Indicators
Actions taken by the
Company
Answer
Yes No
Strategy
Comment/Clarification
Environmental opera-
tions, Oversight and
Mitigation
• Does the organization identify
any climate related risks and
opportunities over the short,
medium and long run?
• Does the company reflect
the climate-related risks
opportunities on the organiza-
tion’s business, strategy, and
financial planning?
•
•
The Bank identifies climate-related risks and oppor-
tunities, which include transitional and physical
risks, and the Bank is currently working to identify
these risks and opportunities at the short, medium
and long-term levels.
Climate-related risks and opportunities are one of
the cornerstones of the Bank’s Sustainable Finance
strategy. The bank is also currently working on
developing its capabilities in methods for measuring
and evaluating climate-related financial risks and
the extent of their impact on other financial risks
such as credit risks, which will fundamentally
contribute to implementing the bank’s climate
strategy and including these risks and opportunities
in its financial planning.
• Does your company invest,
annually, in climate-related
infrastructure, resilience, and
product development?
•
The bank invests annually to combat climate
change, whether emissions related to the bank’s
operations, through various activities, such as
converting some electricity consumption to solar
energy, rationalizing water and paper consump-
tion, etc. The bank also helps customers/clients
reduce their emissions by providing financial
products and various grants to implement
projects that contribute to reducing the effects
of climate change to finance adaptation and
mitigation projects, in addition to rationalizing
energy and water consumption and increasing
the production of renewable energy sources.
178 • CIB Annual Report • 2023
2023 • CIB Annual Report • 179
ESG • FRA Disclosures
TCFD Key
Performance
Indicators
Actions taken by the
Company
Answer
Yes No
Comment/Clarification
TCFD Key
Performance
Indicators
Actions taken by the
Company
Answer
Yes No
Comment/Clarification
Risk Management
Metrics & Targets
• Does the company set a
defined process for identifying
and assessing the climate
related risks?
•
Climate-related risks have been identified as a major
and material type of risk to which the Bank may be
exposed to.
• Does the company have a
solid process for managing the
climate related risks?
•
Climate
Change-related
Risks
• Does the company incorpo-
rate climate-related risks in
the company’s overall risk
management?
•
The bank is currently working on developing a
framework to identify and evaluate climate-related
financial risks to measure the bank’s portfolio’s
exposure to physical and transitional risks, in addi-
tion to integrating those risks into the current risk
management framework, in line with the instruc-
tions of the Central Bank of Egypt (CBE), and in
accordance with the latest findings of international
standards and recommendations in this regard. The
bank has disclosed its climate risk management
methodology in its first report on the Climate-
related Financial Disclosure Framework (TCFD).
The bank is currently working on developing a
framework to identify and evaluate climate-related
financial risks to measure the extent of the bank’s
portfolio’s exposure to physical and transitional
risks, in addition to integrating those risks into the
current risk management framework, in line with
the instructions of the Central Bank of Egypt, and in
accordance with the latest findings of international
standards and recommendations in this regard.
The bank has disclosed its climate risk management
methodology in its first report on the Climate-
related Financial Disclosure Framework (TCFD).
• Does the company use any
metrics to assess climate-
related risks and opportunities
in line with its strategy and risk
management process?
•
The bank measures the carbon emissions of the
bank’s activities for segments 1, 2, and 3 at the level
of internal operations. The bank also measured the
financed emissions for three different sectors and
set goals for the energy and real estate development
sectors. The bank will expand its scope to include
the rest of the sectors with the highest carbon emis-
sions financed during the year 2024 to set policies
and goals for them that are consistent with the Paris
Climate Agreement.
Carbon/GHG
Emission
• Total amount, in CO2
equivalents, for Scope 1 (if
applicable)?
•
The Bank has been fully disclosing its carbon emis-
sions of Scope 1 and 2 since 2018, and the Bank
is also disclosing the emissions of Scope 3 in an
expanded/extended manner every year.
180 • CIB Annual Report • 2023
2023 • CIB Annual Report • 181
07•
Subsidiaries
& Associates
182 • CIB Annual Report • 2023
2023 • CIB Annual Report • 183
Subsidiaries and Associates
Subsidiaries and Associates
Subsidiaries
CIB Kenya Limited (CIB K)
CIB Kenya Limited ( formerly Mayfair-CIB) is an
established commercial bank in the Republic of
Kenya and was licensed by the Central Bank of Kenya
in June 2017. CIB Egypt anchored its regional pres-
ence with the acquisition of the remaining 49% stake
in Mayfair CIB Bank Limited, making it the first fully
owned subsidiary of CIB beyond Egypt. CIB’s strategy
for its Kenyan subsidiary focuses on trade finance
activities and digital banking solutions, particularly
growing the Egypt-Kenya trade corridor, enabling
large Egyptian corporates and Egyptian SMEs to
operate in the hub of Eastern Africa. The bank’s niche
market is large and medium‐sized corporates and
HNWIs.
2023 Highlights
As of 31 December, tthe bank’s total capital stood at
KES 3.34 billion (USD 21.4 million) while core capital
stood at KES 3.25 billion (USD 20.8 million), against a
minimum core capital threshold of KES 1 billion (USD
6.41 million). The core capital to total risk weighted
assets stood at 25.4% against a regulatory minimum
of 10.5%. The total capital to total risk-weighted assets
stood at 26.1% against a regulatory minimum of 14.5%,
reflecting that the bank was adequately capitalized.
CIB Kenya reported a profit of KES 0.62 million for the
period ending 31st December 2023, against a budget
of KES 360 million and 2022 profit of KES 445 million.
Net interest income for the year 2023 closed at KES 775
million compared to KES 773 million recorded in the
same period of 2022, a 0.3% increase y-o-y. Non-interest
income closed at KES 136 million, a 58% y-o-y increase
from KES 86 million in 2022. The variance was mainly
driven by an increase in trading income on bonds and
foreign exchange income. Other operating expenses
(excluding depreciation) y-t-d came in at KES 344
million, up 38% y-o-y from KES 250 million in 2022. The
increase was mainly driven by general and administra-
tive expenses as a result of the rise in inflation. Staff
expenses recorded KES 729 million, up 37% from the
KES 532 million reported in 2022. The y-o-y increase is
due to an increase in staff headcount, in line with the
bank’s expansion strategy. Loan portfolio at risk stood
at 14.32% as of 31 December 2023, compared to 18.44%
reported for the same period in 2022. Meanwhile, the
NPL ratio stood at 13.62% compared to 13.81% in the
same period of 2022.The decrease in NPL ratio is due
to increase in volumes. The bank still operates in a
challenging economic environment manifesting the
non-performing loans due to macroeconomic factors
that are exogeneous to the bank and that have affected
the ability of customers to repay their loan obligations.
Forward-Looking Strategy
CIB Kenya intends to strengthen its consumer banking
team by hiring more highly skilled and experienced
sales forces. This move aims to strategically grow our
Customer Accounts and Savings Accounts (CASA) from
KES 2.27 billion reported in December 2023 to KES 4.25
billion by 2026. Moreover, we plan on increasing the
share of CASA in the deposit base from 19.7% to 35%, a
target we are confident we can maintain in the long run.
CIB Kenya also aims to enhance its control of HR poli-
cies and procedures. A highly qualified HR Head has
joined the bank and will be tasked with restructuring
the bank’s HR department with the aim of increasing
the dividend income derived from its investment in
Damietta Container and Cargo Handling (DCHC).
The investment was part of an in-kind settlement
of facilities initially granted to one of CIB’s clients
in the shipping sector. The investment is currently
being monitored by the Direct Investment Group
(DIG) and Investment Exposure Management (IEM).
CIB’s strategy is to exit from the investment to an
external investor (strategic – financial).
Commercial International Finance
Company
The Commercial International Finance Company
(CIFC) was established in June 2022 as the Bank’s arm
offering non-bank financial services. CIFC’s operations
are set to begin in 1Q2024 through a full factoring
product suite catering to the increasing demand for
alternative financial solutions. The solutions will mainly
consist of three categories: Export Factoring, Local
Factoring, and Import Factoring, also covering buyer-
led reverse factoring programs. Factoring products will
provide a wide range of value-added services catering
for multinationals, as well as large corporates and SME
clients. Other NBFS activities are also under study.
the effectiveness of human capital. This step aims to
optimize the bank’s internal operations and improve
overall performance.
However, despite these promising measures, CIB Kenya
acknowledges that they have fallen short of their loan
growth targets. The continuous increase in lending
rates, primarily driven by the government’s constric-
tion of market liquidity, poses a challenge for banks.
With government paper yielding higher rates, 15% on
One-Year T-bills, banks are forced to raise their deposit
ratios to compete. This results in a high cost of funds,
which subsequently leads to high lending rates.
Nevertheless, CIB Kenya remains confident that it
will continue to deliver bottom-line results in line
with its budget.
DSMS
Investment Overview
Damietta Shipping and Marine Services (DSMS)
is a shareholding company, established in 1986
through a public offering with a paid capital of EGP
10 million. DSMS is a small-sized company with
minimal operations that focus on marine services,
such as container repairs, fuel tank rentals, and
electricity repairs. The company’s main income is
184 • CIB Annual Report • 2023
2023 • CIB Annual Report • 185
Subsidiaries & Associates
Associates
ACE
TCA
Investment Overview
In January 2021, CIB and Talaat Moustafa Group
(TMG) established a new commercial real estate
company, TCA Properties. TCA started its
operations in early 2021 by acquiring a number of
TMG Holding’s outstanding premium commercial
assets located in Al Rehab and Madinaty.
2023 Highlights
During 2023, TCA’s management company,
Alexandria Company for Projects Management
(APM), promoted TCA commercial assets for rent
and sale to reputable brand names in the F&B
and retail sectors. The company secured various
contracts with many market players in those areas.
TCA 2024 Forward-Looking Strategy
Management will continue focusing on expanding
TCA’s client base through targeting best-in-class
retailers, enabling TCA to include a premium
tenant mix serving customers’ needs and fulfilling
market demand. TCA is also currently exploring
high-end expansion projects to add to the compa-
ny’s portfolio.
Investment Overview
Al Ahly Computer Equipment (ACE) was established
in October 1996, under law No.159 for the year 1981,
as a joint stock company. ACE has a long track record
in the field of Information Technology. The compa-
ny’s product mix ranges from tailored maintenance
services to specialized hardware, whereby it sources
original hardware from recognized companies in
the field. ACE provides IT maintenance services
through a large team of highly trained technical
engineers. It has a longstanding track record as an
IT services and hardware provider for governmental
entities, major banks, and large institutions.
2023 Highlights
In 2023, despite the significantly challenging
market conditions, ACE’s management team
exerted notable effort and managed to increase
the company’s revenues through securing mainte-
nance and sales contracts with well-known banks
and governmental bodies in Egypt. In addition, the
company has been working to add new offerings to
ACE’s portfolio of products by initiating a collabora-
tion agreement with well-established brands and
hardware providers in the IT Sector.
ACE 2024 Forward-Looking Strategy
Management is dedicated to maintaining strong
relationships with existing customers, while simul-
taneously improving both the maintenance and
direct sales experiences to ultimately expand the
clientele base. The primary objectives for FY2024
are to steadily expand the company ’s market
reach, cement its market share, and build a solid
and sustainable competitive edge. The company’s
strategic approach emphasizes a balanced and
measured expansion for long-term business growth.
186 • CIB Annual Report • 2023
2023 • CIB Annual Report • 187
08•
Financial
Statements
188 • CIB Annual Report • 2023
2023 • CIB Annual Report • 189
Auditor’s Report
190 • CIB Annual Report • 2023
2023 • CIB Annual Report • 191
Financial Statements • Consolidated • Consolidated Statement of Financial Position
As at December 31, 2023
Consolidated Income Statement
For the year Ended December 31, 2023
EGP Thousands
Notes
Dec.
31, 2023
Dec.
31, 2022
15
16
18
19
20
21
21
22
45
23
43
44
32
24
25
26
46
20
29
27
28
30
31
34
34
34
71,887,821
231,085,244
822,448
234,985,936
47,492,549
133,856,720
2,978,197
193,599,872
1,105,148
1,939,961
233,125,234
38,341,019
115,979
161
18,972,786
-
-
1,685,231
2,739,092
834,866,099
12,458,003
677,237,479
873
140,934
9,395,534
18,339,465
3,073,349
12,483,907
11,095,089
744,224,633
30,195,010
28,807,042
1,486,010
29,993,331
90,481,393
160,073
90,641,466
834,866,099
204,020,733
34,524,760
186,062
-
14,521,427
96,268
24,188
185,746
2,405,434
635,831,917
3,496,698
531,616,550
-
219,752
3,051,583
11,606,912
2,456,607
7,978,975
7,066,672
567,493,749
29,825,134
19,643,327
1,895,435
16,393,841
67,757,737
580,431
68,338,168
635,831,917
Assets
Cash and balances at the central bank
Due from banks
Loans and advances to banks, net
Loans and advances to customers, net
Derivative financial instruments
Financial investments
- Financial Assets at Fair Value through OCI
- Financial Assets at Amortized cost
- Investments in associates
Non current assets held for sale
Other assets
Goodwill
Intangible assets
Deferred tax assets
Property and equipment
Total assets
Liabilities and equity
Liabilities
Due to banks
Due to customers
Non current liabilities held for sale
Derivative financial instruments
Current income tax liabilities
Other liabilities
Issued debt instruments
Other loans
Other provisions
Total liabilities
Equity
Issued and paid up capital
Reserves
Reserve for employee stock ownership plan (ESOP)
Retained earnings *
Total equity and net profit for the year
Non Controlling Interest
Total minority interest, equity and net profit for the year
Total liabilities and equity
The accompanying notes are an integral part of these financial statements .
(Audit report attached)
* Including net profit for the current year
Interest and similar income
Interest and similar expense
Net interest income
Fee and commission income
Fee and commission expense
Net fee and commission income
Dividend income
Net trading income
Profits (Losses) on financial investments
Administrative expenses
Other operating income (expenses)
Goodwill amortization
Intangible assets amortization
Impairment release (charges) for credit losses
Bank’s share in the profits / losses of associates
Profit before income tax
Income tax expense
Deferred tax assets (Liabilities)
Net profit from continued operations
Discontinued Operations
Net profit (loss) from discontinued operations
Net profit for the year
Non Controlling Interest
Bank’s shareholders
Earnings per share
Basic
Diluted
Notes
6
7
8
9
21
10
11
12
13
47
14
EGP Thousands
Dec.
31, 2023
104,028,379
(51,098,717)
52,929,662
9,049,924
(3,611,699)
5,438,225
234,010
3,942,939
221,810
(10,076,013)
(6,590,740)
(96,268)
(24,188)
(4,270,081)
(55,983)
41,653,373
(13,099,948)
1,157,542
29,710,967
(42,102)
29,668,865
34,323
29,634,542
Dec.
31, 2022
55,723,701
(24,718,803)
31,004,898
5,555,082
(2,476,945)
3,078,137
52,411
2,749,657
1,162,195
(7,371,629)
(5,080,138)
(41,257)
(10,366)
(1,584,942)
(17,680)
23,941,286
(6,345,103)
(1,424,033)
16,172,150
-
16,172,150
57,762
16,114,388
8.59
8.48
4.80
4.74
Hussein Abaza
CEO & Managing Director
Hisham Ezz Al-Arab
Chairman
Hussein Abaza
CEO & Managing Director
Hisham Ezz Al-Arab
Chairman
192 • CIB Annual Report • 2023
2023 • CIB Annual Report • 193
Financial Statements • Consolidated • Consolidated Statement of Comprehensive
Income
For the year Ended December 31 2023
Consolidated Cash Flow
for the year Ended December 31, 2023
Net profit for the year
Comprehensive income items that will not be reclassified to the Profit or Loss:
Change in fair value of equity instruments measured at fair value through comprehensive
income
Deferred Tax impact for investments that will not be reclassified to P&L
Transferred to RE from financial assets at fair value through comprehensive income
Comprehensive income items that may be reclassified to the profit or loss:
Change in fair value of debt instruments measured at fair value through comprehensive
income
Selling FVOCI financial instruments
Deferred Tax impact for investments that may be reclassified to P&L
Cumulative foreign currencies translation differences
Effect of ECL on fair value of debt instruments measured at fair value through comprehen-
sive income
Total comprehensive income for the year
As follows:
Bank’s shareholders
Non Controlling Interest
Total comprehensive income for the year
EGP Thousands
Dec.
31, 2023
Dec.
31, 2022
29,668,865
16,172,150
259,291
294,799
(131,008)
(95,308)
(61,753)
(3,436)
(6,926,653)
(14,517,696)
(205,344)
1,530,823
(32,971)
(1,116,776)
1,119,625
185,542
1,888,326
455,047
25,956,021
2,527,502
25,921,698
34,323
25,956,021
2,469,740
57,762
2,527,502
194 • CIB Annual Report • 2023
EGP Thousands
Notes
Dec.
31, 2023
Dec.
31, 2022
Cash flow from operating activities
Profit before income tax from continued operations
Profit (loss) from discontinued operations
Adjustments to reconcile profits to net cash provided by operating
activities
Fixed assets depreciation
Impairment (Released) charge for credit losses (Loans and advances to
customers and banks)
Other provisions charges
Impairment (Released) charge for credit losses (due from banks)
Impairment (Released) charge for credit losses ( financial investments)
Impairment (Released) charge for other assets
Exchange revaluation differences for financial assets at fair value through OCI
and AC
Goodwill amortization
Intangible assets amortization
Revaluation differences Impairment charge for Financial Assets at Fair value
through OCI
Revaluation differences Impairment charge for Financial Assets at Amortized cost
Utilization of other provisions
Other provisions no longer used
Exchange Revaluation differences of other provisions
profits from selling property and equipment
profits from selling financial investments at fair value through OCI
Losses (Profits) from selling investments in associates
Impairment (Released) charges of investments in associates
Shares based payments
Bank’s share in the profits / losses of associates
Operating profits before changes in operating assets and liabilities
Net decrease / increase in assets and liabilities
Due from banks
Financial assets at fair value through P&L
Derivative financial instruments
Loans and advances to banks and customers
Other assets
Non current assets held for sale
Due to banks
Due to customers
Current income tax obligations paid
Non current liabilities held for sale
Other liabilities
Net cash generated from (used in) operating activities
24
12
30
12
12
21
43
44
30
30
30
11
21.1
21.1
21.1
16
21
20
18 - 19
41
25
26
29
41,653,373
(42,102)
23,941,286
-
788,209
885,801
2,311,867
1,043,776
2,821,141
(47,234)
2,005,448
17,620
2,133,535
8,395
524,838
(277,766)
(5,442,433)
(7,477,865)
96,268
24,188
1,903
607
(5,850)
-
1,213,126
(1,663)
(205,344)
(7,466)
(9,000)
754,817
55,983
45,983,458
18,441,280
-
755,995
(41,467,103)
(3,968,123)
(161)
8,961,305
145,620,929
(3,704,414)
873
3,680,970
41,257
10,366
-
-
(3,126)
(172)
1,394,973
(2,208)
(1,162,195)
-
-
723,965
17,680
21,802,540
(25,811,654)
240,987
(1,760,303)
(51,705,061)
(2,862,478)
-
2,630,642
124,375,012
(3,293,520)
-
1,286,382
174,305,009
64,902,547
2023 • CIB Annual Report • 195
Financial Statements • Consolidated • Consolidated Cash Flow (Cont.)
for the year Ended December 31 2023
EGP Thousands
Notes
Dec.
31, 2023
Dec.
31, 2022
y
t
i
u
q
E
Cash flow from investing activities
Proceeds from investments in associates
Payment for purchases of property, equipment and branches construction
Proceeds from selling property and equipment
Proceeds from redemption of financial assets at amortized cost
Payment for purchases of financial assets at amortized cost
Payment for purchases of financial assets at fair value through OCI
Proceeds from selling financial assets at fair value through OCI
Payment for investment in subsidiaries.
Net cash generated from (used in) investing activities
Cash flow from financing activities
Other loans
Dividends paid
Issued debt instruments
Capital increase
Net cash generated from (used in) financing activities
Net (decrease) increase in cash and cash equivalent during the year
Beginning balance of cash and cash equivalent
Cash and cash equivalent at the end of the year
Cash and cash equivalent comprise:
Cash and balances at the central bank
Due from banks
Treasury bills and other governmental notes
Obligatory reserve balance with CBE
Due from banks with maturity more than three months
Treasury bills and other governmental notes with maturity more than
three months
Total cash and cash equivalent
11
28
15
16
17
15
4,510
(1,685,846)
1,663
6,125,452
(9,409,257)
(129,066,885)
100,481,027
(1,142,840)
-
(1,033,499)
2,208
6,738,937
(19,978,014)
(45,646,889)
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196 • CIB Annual Report • 2023
2023 • CIB Annual Report • 197
Financial Statements • Consolidated •
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Notes to the consolidated financial statements
for the year ended December 31, 2023
1. General information
Commercial International Bank-Egypt (CIB) S.A.E. provides retail, corporate and investment banking services in various parts of
Egypt through 193 branches, and 15 units employing 7,917 employees on the statement of financial position date.
Commercial International Bank-Egypt (CIB)s S.A.E. was formed as a commercial bank under the investment law no. 43 of 1974
amended by law no. 32/1977 and its amendments. The address of its registered head office is as follows: Nile tower, 21/23 Charles
de Gaulle Street-Giza. The Bank is listed in the Egyptian stock exchange.
The bank owns investments in subsidiaries “Commercial International Bank (CIB) Kenya”, “Damietta Shipping” and “Commercial
International for Finance” in which the bank’s shares are 100%, 49.95% and 99.83% respectively.
Financial statements have been approved by board of directors on February 11, 2024.
2. Summary of accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have
been consistently applied to all years presented, unless otherwise stated.
2.1. Basis of preparation
The consolidated financial statements have been prepared in accordance with the instructions of the Central Bank of Egypt
approved by the Board of Directors on December 16, 2008 as modified by the instructions for applying the International
Standard for Financial Reports (9) issued by the Central Bank of Egypt on February 26, 2019, reference is made to what was not
mentioned in the instructions of the Central Bank of Egypt to the Egyptian Accounting Standards.
2.1.1. Basis of consolidation
The basis of the consolidation is as follows:
• Eliminating all balances and transactions between the Bank and group companies.
• The cost of acquisition of subsidiary companies is based on the company’s share in the fair value of assets acquired and obligations
outstanding on the acquisition date.
• Minority shareholders represent the rights of others in subsidiary companies.
• Proportional consolidation is used in consolidating method for companies under joint control.
2.2. Subsidiaries and associates
2.2.1. Subsidiaries
Subsidiaries are those investees, including structured entities, that the Bank controls because the Bank (i) has power to direct
relevant activities of the investees that significantly affect their returns, (ii) has exposure, or rights, to variable returns from
its involvement with the investees, and (iii) has the ability to use its power over the investees to affect the amount of inves-
tor’s returns. The existence and effect of substantive rights, including substantive potential voting rights, are considered when
assessing whether the Bank has power over another entity. For a right to be substantive, the holder must have practical ability
to exercise that right when decisions about the direction of the relevant activities of the investee need to be made. The Bank
may have power over an investee even when it holds less than majority of voting power in an investee. In such a case, the Bank
assesses the size of its voting rights relative to the size and dispersion of holdings of the other vote holders to determine if it
has de-facto power over the investee. Protective rights of other investors, such as those that relate to fundamental changes of
investee’s activities or apply only in exceptional circumstances, do not prevent the Bank from controlling an investee. Subsidiaries
are consolidated in the Bank’s consolidated financial statements from the date on which control is transferred to the Bank, and
are deconsolidated from the date on which control ceases.
The acquisition method of accounting is used to account for the acquisition of subsidiaries [other than those acquired from
parties under common control]. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business
combination are measured at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest.
The Bank measures non-controlling interest that represents present ownership interest and entitles the holder to a proportionate
share of net assets in the event of liquidation on a transaction by transaction basis, either at: (a) fair value, or (b) the non-control-
ling interest’s proportionate share of net assets of the acquiree. Non-controlling interests that are not present ownership interests
are measured at fair value.
198 • CIB Annual Report • 2023
2023 • CIB Annual Report • 199
Financial Statements • Consolidated •
Goodwill is measured by deducting the net assets of the acquiree from the aggregate of the consideration transferred for the
acquiree, the amount of non-controlling interest in the acquiree and fair value of an interest in the acquiree held immediately
before the acquisition date. Any negative amount (“negative goodwill”) is recognized in profit or loss, after management reassesses
whether it identified all the assets acquired and all liabilities and contingent liabilities assumed, and reviews appropriateness of
their measurement.
2.3. Segment reporting
A business segment is a group of assets and operations engaged in providing products or services that are subject to risks
and returns that are different from those of other business segments. A geographical segment is engaged in providing
products or services within a particular economic environment that are subject to risks and returns different from those of
segments operating in other economic environments.
The consideration transferred for the acquiree is measured at the fair value of the assets given up, equity instruments issued
and liabilities incurred or assumed, including fair value of assets or liabilities from contingent consideration arrangements,
but excludes acquisition related costs such as advisory, legal, valuation and similar professional services. Transaction costs
incurred for issuing equity instruments are deducted from equity; transaction costs incurred for issuing debt are deducted from
its carrying amount and all other transaction costs associated with the acquisition are expensed.
Intercompany transactions, balances and unrealized gains on transactions between group companies are eliminated; unrealized
losses are also eliminated unless the cost cannot be recovered. The Bank and all its subsidiaries use uniform accounting policies
consistent with the Group’s policies.
Non-controlling interest is that part of the net results and of the equity of a subsidiary attributable to interests which are not
owned, directly or indirectly, by the Bank. Non-controlling interest forms a separate component of the Group’s equity.
Purchases and sales of non-controlling interests. The Bank applies the economic entity model to account for transactions with
owners of non- controlling interest. Any difference between the purchase consideration and the carrying amount of non-control-
ling interest acquired is recorded as a capital transaction directly in equity. The Bank recognizes the difference between sales
consideration and carrying amount of non-controlling interest sold as a capital transaction in the statement of changes in equity.
2.2.2. Associates
Associates are entities over which the Bank has significant influence (directly or indirectly), but not control, generally accompa-
nying a shareholding of between 20 and 50 percent of the voting rights. Investments in associates are accounted for using the
equity method of accounting and are initially recognized at cost. The carrying amount of associates includes goodwill identified
on acquisition less accumulated credit losses, if any. Dividends received from associates reduce the carrying value of the invest-
ment in associates. Other post- acquisition changes in Group’s share of net assets of an associate are recognized as follows: (i)
the Group’s share of profits or losses of associates is recorded in the consolidated profit or loss for the year as share of result of
associates, (ii) the Group’s share of other comprehensive income is recognized in other comprehensive income and presented
separately, (iii); all other changes in the Group’s share of the carrying value of net assets of associates are recognized in profit
or loss within the share of result of associates. However, when the Group’s share of losses in an associate equals or exceeds its
interest in the associate, including any other unsecured receivables, the Group does not recognize further losses, unless it has
incurred obligations or made payments on behalf of the associate.
Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the
associates; unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The Bank applies the impairment requirements in IFRS 9 to long-term loans, preference shares and similar long-term interest
that in substance form part of the investment in associate before reducing the carrying value of the investment by a share of a loss
of the investee that exceeds the amount of the Group’s interest in the ordinary shares.
Disposals of subsidiaries, associates or joint ventures. When the Group ceases to have control or significant influence, any
retained interest in the entity is re-measured to its fair value, with the change in carrying amount recognized in profit or loss.
The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate,
joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that
entity, are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts
previously recognized in other comprehensive income are recycled to profit or loss.
2.4. Foreign currency translation
2.4.1. Functional and presentation currency
The financial statements are presented in Egyptian pound, which is the Bank’s functional and presentation currency.
2.4.2. Transactions and balances in foreign currencies
The Bank maintains its accounting records in Egyptian pound. Transactions in foreign currencies during the period are trans-
lated into the Egyptian pound using the prevailing exchange rates at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are retranslated at the end of reporting period at the prevailing
exchange rates. Foreign exchange gains and losses resulting from settlement and translation of such transactions and balances
are recognized in the income statement and reported under the following line items:
• Net trading income from held-for-trading assets and liabilities.
• Items of other comprehensive income with equity in relation to investments in equity instruments at fair value through
comprehensive income.
• Other operating revenues (expenses) from the remaining assets and liabilities.
Changes in the fair value of financial instruments of a monetary nature in foreign currencies that are classified as financial invest-
ments at fair value through comprehensive income (debt instruments) are analyzed between valuation differences that resulted
from changes in the cost consumed for the instrument and differences that resulted from changing the exchange rates in effect
and differences caused by changing the fair value For the instrument, the evaluation differences related to changes in the cost
consumed are recognized in the income of loans and similar revenues and in the differences related to changing the exchange
rates in other operating income (expenses) item, and are recognized in the items of comprehensive income.
Valuation differences arising from the measurement of items of a non-monetary nature at fair value through profit and losses
resulting from changes in the exchange rates used to translate those items include, and then are recognized in the income state-
ment by the total valuation differences resulting from the measurement of equity instruments classified at fair value through
Profits and losses, while the total valuation differences resulting from the measurement of equity instruments at fair value
through comprehensive income are recognized within other comprehensive income items in equity, fair value reserve item for
financial investments at fair value through comprehensive income.
2.5. Financial assets
Key Measurement Terms:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The best evidence of fair value is price in an active market. An active market is one
in which transactions for the asset or liability take place with enough frequency and volume to provide pricing information on
an ongoing basis. Fair value of financial instruments traded in an active market is measured as the product of the quoted price
for the individual asset or liability and the quantity held by the entity.
Valuation techniques such as discounted cash flow models or models based on recent arm’s length transactions or consideration
of financial data of the investees, are used to measure fair value of certain financial instruments for which external market
pricing information is not available. Fair value measurements are analyzed by level in the fair value hierarchy as follows: (i) level
one are measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level two measure-
ments are valuations techniques with all material inputs observable for the asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices), and (iii) level three measurements are valuations not based on solely observable market
data (that is, the measurement requires significant unobservable inputs).
200 • CIB Annual Report • 2023
2023 • CIB Annual Report • 201
Financial Statements • Consolidated • Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial instru-
ment. An incremental cost is one that would not have been incurred if the transaction had not taken place. Transaction costs
include fees and commissions paid. Transaction costs do not include debt premiums or discounts.
Amortized cost is the amount at which the financial instrument was recognized at initial recognition less any principal repay-
ments, plus accrued interest, and for financial assets less any allowance for expected credit losses. Accrued interest includes
amortization of transaction costs deferred at initial recognition and of any premium or discount to maturity amount using the
effective interest method.
The effective interest method is a method of allocating interest income or interest expense over the relevant period, so as to
achieve a constant periodic rate of interest (effective interest rate) on the carrying amount. The effective interest rate is the rate
that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or a
shorter period, if appropriate, to the gross carrying amount of the financial instrument.
The effective interest rate discounts cash flows of variable interest instruments to the next interest repricing date, except for the
premium or discount, which reflects the credit spread over the floating rate specified in the instrument, or other variables that are
not reset to market rates. Such premiums or discounts are amortized over the expected life of the instrument. The present value
calculation includes all fees paid or received between parties to the contract that are an integral part of the effective interest rate.
Financial instruments - initial recognition.
Financial instruments at FVTPL are initially recorded at fair value. Fair value at initial recognition is best evidenced by the transaction
price. A gain or loss on initial recognition is only recorded if there is a difference between fair value and transaction price which can be
evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include
only data from observable markets. After the initial recognition, an ECL allowance is recognized for financial assets measured at amor-
tized cost and investments in debt instruments measured at FVOCI, resulting in an immediate accounting loss.
All purchases and sales of financial assets that require delivery within the time frame established by regulation or market convention
(“regular way” purchases and sales) are recorded at trade date, which is the date on which the bank commits to deliver a financial asset.
All other purchases are recognized when the entity becomes a party to the contractual provisions of the instrument.
Financial assets - classification and subsequent measurement - measurement categories.
The bank classifies financial assets in the following measurement categories: FVTPL, FVOCI and AC. The classification and
subsequent measurement of debt financial assets depends on: (i) the bank’s business model for managing the related assets
portfolio and (ii) the cash flow characteristics of the asset.
The following table summarizes measurement categories
Financial
Instrument
Methods of Measurement according to Business Models
Amortized Cost
Fair Value
Through Other
Comprehensive
Income
Through Profit or Loss
Equity Instruments
Not Applicable
Debt Instruments
/Loans & Facilities
Business Model of Assets held
for Collecting Contractual Cash
Flows
An irrevocable election at Initial
Recognition
Business Model of Assets held
for Collecting Contractual Cash
Flows & Selling
Normal treatment of equity
instruments
Business Model of Assets held
for Trading
Financial assets - classification and subsequent measurement - business model.
The business model reflects how the bank manages the assets in order to generate cash flows - whether the bank’s objective is:
(i) solely to collect the contractual cash flows from the assets (“hold to collect contractual cash flows”,) or (ii) to collect both the
contractual cash flows and the cash flows arising from the sale of assets (“hold to collect contractual cash flows and sell”) or, if
neither of (i) and (ii) is applicable, the financial assets are classified as part of “other” business model and measured at FVTPL.
Business model is determined for a group of assets (on a portfolio level) based on all relevant evidence about the activities that
the bank undertakes to achieve the objective set out for the portfolio available at the date of the assessment. Factors considered
by the bank in determining the business model include the purpose and composition of a portfolio, past experience on how the
cash flows for the respective assets were collected, how risks are assessed and managed, how the assets’ performance is assessed.
Financial assets - classification and subsequent measurement - cash flow characteristics.
Where the business model is to hold assets to collect contractual cash flows or to hold contractual cash flows and sell, the bank
assesses whether the cash flows represent solely payments of principal and interest (“SPPI”). Financial assets with embedded
derivatives are considered in their entirety when determining whether their cash flows are consistent with the SPPI feature. In
making this assessment, the bank considers whether the contractual cash flows are consistent with a basic lending arrange-
ment, i.e. interest includes only consideration for credit risk, time value of money, other basic lending risks and profit margin.
Where the contractual terms introduce exposure to risk or volatility that is inconsistent with a basic lending arrangement, the
financial asset is classified and measured at FVTPL. The SPPI assessment is performed on initial recognition of an asset and it is
not subsequently reassessed.
The following table summarizes the classification of the Banks Financial Assets in accordance with the business model:
Financial asset
Business model
Basic characteristics
Financial Assets at Amortized
Cost (AC)
Business model for financial
assets held to collect contrac-
tual cash flows
Financial Assets at Fair Value
through Other Comprehensive
Income (FVTOCI)
Business model of financial
assets
held to collect cash flows and
sales
Financial Assets at Fair Value
through Profit or Loss (FVTPL)
Other business models include
trading - management of
financial
assets at fair value - maximiz-
ing
cash flows by selling
• The objective of the business model is to retain the
financial assets to collect the contractual cash flows
of the principal amount of the investment and the
proceeds.
• Sale is an exceptional event for the purpose of this
model and under the terms of the criterion of a dete-
rioration in the creditworthiness of the issuer of the
financial instrument.
• Lowest sales in terms of turnover and value.
• The Bank makes clear and reliable documentation of
the reasons for each sale and its compliance with the
requirements of the Standard.
• Both the collection of contractual cash flows and
sales are complementary to the objective of the model.
• High sales (in terms of turnover and value) compared
to the business model retained for the collection of
cash flows.
• The objective of the business model is not to retain the
financial asset for the collection of contractual or retained
cash flows for the collection of contractual cash flows and
sales.
• Collecting contractual cash flows is an incidental event
for the model objective.
• Management of financial assets at fair value through
profit or loss to avoid inconsistency in accounting
measurement.
202 • CIB Annual Report • 2023
2023 • CIB Annual Report • 203
Financial Statements • Consolidated • Financial assets - reclassification. Financial instruments are reclassified only when the business model for managing the port-
folio as a whole changes. The Bank did not change its business model during the current and comparative year and did not make
any reclassifications.
The timing of recognition in profit and loss, of any gains or losses arising from changes in the fair value of derivatives, depends
on whether the derivative is designated as a hedging instrument, and the nature of the item being hedged. The Bank designates
certain derivatives as:
Financial assets impairment - credit loss allowance for ECL. The bank assesses, on a forward-looking basis, the ECL for
debt instruments measured at AC and FVOCI and for the exposures arising from loan commitments and financial guarantee
contracts. The bank measures ECL and recognizes credit loss allowance at each reporting date. The measurement of ECL reflects:
(i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value
of money and (iii) all reasonable and supportable information that is available without undue cost and effort at the end of each
reporting date about past events, current conditions and forecasts of future conditions.
The bank applies a three-stage model for impairment, based on changes in credit quality since initial recognition. A financial
instrument that is not credit-impaired on initial recognition is classified in Stage 1. Financial assets in Stage 1 have their ECL
measured at an amount equal to the portion of lifetime ECL that results from default events possible within the next 12 months
or until contractual maturity, if shorter (“12 Months ECL”). If the bank identifies a significant increase in credit risk (“SICR”)
since initial recognition, the asset is transferred to Stage 2 and its ECL is measured based on ECL on a lifetime basis, that is, up
until contractual maturity but considering expected prepayments, if any (“Lifetime ECL”). If the bank determines that a finan-
cial asset is credit-impaired, the asset is transferred to Stage 3 and its ECL is measured as a Lifetime ECL.
Financial assets - write-off. Financial assets are written-off, in whole or in part, when the bank exhausted all practical recovery
efforts and has concluded that there is no reasonable expectation of recovery. The write-off represents a derecognition event.
Financial assets - derecognition. The bank derecognizes financial assets when (a) the assets are redeemed or the rights to cash
flows from the assets otherwise expired or (b) the bank has transferred the rights to the cash flows from the financial assets or
entered into a qualifying pass-through arrangement while (i) also transferring substantially all risks and rewards of ownership
of the assets or (ii) neither transferring nor retaining substantially all risks and rewards of ownership, but not retaining control.
Control is retained if the counterparty does not have the practical ability to sell the asset in its entirety to an unrelated third party
without needing to impose restrictions on the sale.
When the financial asset is derecognized, the difference between the carrying amount of the financial asset and the total of the
consideration received in other comprehensive income is recognized in profit or loss.
Gain / Loss recognized in other comprehensive income in respect of investment securities in equity securities is not recognized
in profit or loss on disposal of such securities.
Financial liabilities - measurement categories. Financial liabilities are classified as subsequently measured at AC, except for financial
liabilities at FVTPL: this classification is applied to derivatives or financial liabilities held for trading (e.g. short positions in securities)
Financial liabilities - derecognition. Financial liabilities are derecognized when they are extinguished (i.e. when the obligation
specified in the contract is discharged, cancelled or expires).
2.6. Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a legally enforce-
able right to offset the recognized amounts and there is an intention to be settled on a net basis.
2.7. Derivative financial instruments and hedge accounting
Derivatives are recognized initially, and subsequently, at fair value. Fair values of exchange traded derivatives are obtained from
quoted market prices. Fair values of over-the-counter derivatives are obtained using valuation techniques, including discounted
cash flow models and option pricing models. Derivatives are classified as assets when their fair value is positive and as liabilities
when their fair value is negative.
Embedded derivatives in other financial instruments, such as conversion option in a convertible bond, are treated as separate
derivatives when their economic characteristics and risks are not closely related to those of the host contract, provided that the
host contract is not classified as at fair value through profit and loss. These embedded derivatives are measured at fair value with
changes in fair value recognized in income statement unless the Bank chooses to designate the hybrid contact as at fair value
through net trading income in profit or loss.
• Hedging instruments of the risks associated with fair value changes of recognized assets or liabilities or firm commit-
ments ( fair valuehedge).
• Hedging of risks relating to future cash flows attributable to a recognized asset or liability or a highly probable forecast
transaction (cash flow hedge)
• Hedge accounting is used for derivatives designated in a hedging relationship when the following criteria are met.
At the inception of the hedging relationship, the Bank documents the relationship between the hedging instrument and the
hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore,
At the inception of the hedge, and on ongoing basis, the Bank documents whether the hedging instrument is expected to be
highly effective in offsetting changes in fair values of the hedged item attributable to the hedged risk.
2.7.1. Fair value hedge
Changes in the fair value of derivatives that are designated and qualified as fair value hedges are recognized in profit or loss
immediately together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged
risk. The effective portion of changes in the fair value of the interest rate swaps and the changes in the fair value of the
hedged item attributable to the hedged risk are recognized in the ‘net interest income’ line item of the income statement.
Any ineffectiveness is recognized in profit or loss in ‘net trading income’.
When the hedging instrument is no longer qualified for hedge accounting, the adjustment to the carrying amount of a hedged
item, measured at amortized cost, arising from the hedged risk is amortized to profit or loss from that date using the effective
interest method.
2.7.2. Derivatives that do not qualify for hedge accounting
All gains and losses from changes in the fair values of derivatives that do not qualify for hedge accounting are recognized
immediately in the income statement. These gains and losses are reported in ‘net trading income’, except where derivatives
are managed in conjunction with financial instruments designated at fair value , in which case gains and losses are reported
in ‘net income from financial instruments designated at fair value’.
2.8. Interest income and expense
Interest income and expense for all financial instruments except for those classified as held-for-trading or designated at fair value
are recognized in ‘interest income’ and ‘interest expense’ in the income statement using the effective interest method.
The effective interest method is a method of calculating the amortized cost of a financial asset or a financial liability and of allo-
cating the interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts
estimated future cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter
period to the net carrying amount of the financial asset or financial liability. When calculating the effective interest rate, the Bank
estimates cash flows considering all contractual terms of the financial instrument ( for example, prepayment options) but does
not consider future credit losses. The calculation includes all fees and points paid or received between parties to the contract that
represents an integral part of the effective interest rate, transaction costs and all other premiums or discounts.
Once loans or debts are classified as nonperforming or impaired, the revenue of interest income will not be recognized and will
be recorded off balance sheet, and are recognized as income subsequently based on a cash basis according to the following:
• When all arrears are collected for consumer loans, personnel mortgages and micro-finance loans.
• When calculated interest for corporate are capitalized according to the rescheduling agreement conditions until paying 25%
from rescheduled payments for a minimum performing period of one year, if the customer continues to perform, the calcu-
lated interest will be recognized in interest income (interest on the performing rescheduling agreement balance) without
the marginalized before the rescheduling agreement which will be recognized in interest income after the settlement of the
outstanding loan balance.
204 • CIB Annual Report • 2023
2023 • CIB Annual Report • 205
Financial Statements • Consolidated • Fee and commission income
2.9.
Fees charged for servicing a loan or facility that is measured at amortized cost, are recognized as revenue as the service is
provided. Fees and commissions on non-performing or impaired loans or receivables cease to be recognized as income and are
rather recorded off balance sheet. These are recognized as revenue, on a cash basis, only when interest income on those loans is
recognized in profit and loss, at that time, fees and commissions that represent an integral part of the effective interest rate of
a financial asset, are treated as an adjustment to the effective interest rate of that financial asset. Commitment fees and related
direct costs for loans and advances where draw down is probable are deferred and recognized as an adjustment to the effective
interest on the loan once drawn. Commitment fees in relation to facilities where draw down is not probable are recognized at the
maturity of the term of the commitment.
Fees are recognized on the debt instruments that are measured at fair value through profit and loss on initial recognition and
syndicated loan fees received by the Bank are recognized when the syndication has been completed and the Bank does not hold
any portion of it or holds a part at the same effective interest rate used for the other participants portions. Commission and fee
arising from negotiating, or participating in the negotiation of a transaction for a third party such as the arrangement of the
acquisition of shares or other securities or the purchase or sale of properties are recognized upon completion of the underlying
transaction in the income statement .
Other management advisory and service fees are recognized based on the applicable service contracts, usually on accrual basis.
Financial planning fees related to investment funds are recognized steadily over the period in which the service is provided. The
same principle is applied for wealth management; financial planning and custody services that are provided on the long term are
recognized on the accrual basis also.
Operating revenues in the holding company are:
• Commission income is resulting from purchasing and selling securities to a customer account upon receiving the transac-
tion confirmation from the Stock Exchange.
• Mutual funds and investment portfolios management which is calculated as a percentage of the net value of assets under
management according to the terms and conditions of agreement. These amounts are credited to the assets management
company’s revenue pool on a monthly accrual basis.
2.10. Dividend income
Dividends are recognized in the income statement when the right to collect is established.
2.11. Sale and repurchase agreements
Securities may be lent or sold subject to a commitment to repurchase (Repos) are reclassified in the financial statements and
deducted from treasury bills balance. Securities borrowed or purchased subject to a commitment to resell them (Reverse Repos)
are reclassified in the financial statements and added to treasury bills balance. The difference between sale and repurchase price
is treated as interest and accrued over the life of the agreements using the effective interest method.
2.12. Investment property
The investment property represents lands and buildings owned by the Bank in order to obtain rental returns or capital gains and
therefore do not include real estate assets which the Bank is carrying out its operations through or those that have owned by the
Bank as settlement of debts. The accounting treatment is the same used with property and equipment.
2.13. Property and equipment
Land and buildings comprise mainly branches and offices. All property, plant and equipment are stated at historical cost less deprecia-
tion and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or as a separate asset, as appropriate, only when it is probable that
future economic benefits will flow to the Bank and the cost of the item can be measured reliably. All other repairs and mainte-
nance are charged to other operating expenses during the financial period in which they are incurred.
Land is not depreciated. Depreciation of other assets is calculated using the straight-line method to allocate their residual values
over estimated useful lives, as follows:
Buildings
Leasehold improvements
Furniture and safes
Air-conditioners
Vehicles
Computers and core systems
Fixtures and fittings
20 years.
3 years,
3-5 years.
5 years
5 years
3-4 years
3 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. Depreciable
assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recovered. An asset’s carrying amount is written down immediately to its recoverable value if the asset’s carrying amount exceeds
its estimated recoverable amount. The recoverable amount is the higher of the asset’s fair value less costs to sell and value in use.
Gains and losses on disposals are determined by comparing the selling proceeds with the asset carrying amount and charged to
other operating expenses in the income statement.
2.14. Impairment of non-financial assets
Assets that have an indefinite useful life are not amortized -except goodwill- and are tested annually for impairment. Assets that
are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds
its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Assets are tested for impairment with
reference to the lowest level of cash generating unit/s. A previously recognized impairment loss relating to a fixed asset may be
reversed in part or in full when a change in circumstances leads to a change in the estimates used to determine the fixed asset’s
recoverable amount. The carrying amount of the fixed asset will only be increased up to the amount that it would have been had
the original impairment not been recognized.
2.14.1. Goodwill
Goodwill is capitalized and represents the excess of acquisition cost over the fair value of the Bank’s share in the acquired entity’s
net identifiable assets on the date of acquisition. For the purpose of calculating goodwill, the fair values of acquired assets, liabili-
ties and contingent liabilities are determined by reference to market values or by discounting expected future cash flows. Goodwill
is included in the cost of investments in associates and subsidiaries in the Bank’s separate financial statements. Goodwill is tested
for impairment on an annual basis or shorter when trigger event took place, impairment loss is charged to the income statement.
Goodwill is allocated to the cash generating units for the purpose of impairment testing. The cash generating units represented
in the Bank main segments.
2.14.2. Other intangible assets
The intangible assets other than goodwill and computer programs (trademarks, licenses, contracts for benefits, the benefits of
contracting with clients).
Other intangible assets that are acquired by the Bank are recognized at cost less accumulated amortization and impairment
losses. Amortization is charged to the income statement on a straight-line basis over the estimated useful lives of the intangible
asset with definite life. Intangible assets with indefinite life are not amortized and tested for impairment.
2.15. Leases
The accounting treatment for the finance lease is complied with the instructions of Central Bank of Egypt, if the contract entitles
the lessee to purchase the asset at a specified date and predefined value. The other leases contracts are considered operating
leases contracts.
206 • CIB Annual Report • 2023
2023 • CIB Annual Report • 207
Financial Statements • Consolidated • 2.15.1. Being lessee
Finance lease contract recognizes the lease cost, including the cost of maintenance of the leased assets in the income state-
ment for the period in which they occurred. If the Bank decides to exercise the right to purchase the leased asset the leased
assets are capitalized and included in ‘property, plant and equipment’ and depreciated over the useful life of the expected
remaining life of the asset in the same manner as similar assets.
Operating lease payments leases are accounted for on a straight-line basis over the periods of the leases and are included in
‘general and administrative expenses’.
2.15.2. Being lessor
For finance lease, assets are recorded in the property and equipment in the balance sheet and amortized over the expected useful
life of this asset in the same manner as similar assets. Lease income is recognized on the basis of rate of return on the lease in
addition to an amount corresponding to the cost of depreciation for the period. The difference between the recognized rental
income and the total finance lease clients’ accounts is transferred to the in the income statement until the expiration of the lease
to be reconciled with a net book value of the leased asset. Maintenance and insurance expenses are charged to the income state-
ment when incurred to the extent that they are not charged to the tenant.
In case there is objective evidence that the Bank will not be able to collect the of financial lease obligations, the finance lease
payments are reduced to the recoverable amount.
For assets leased under operating lease it appears in the balance sheet under property, plant and equipment, and depreciated
over the expected useful life of the asset in the same way as similar assets, and the lease income recorded less any discounts given
to the lessee on a straight-line method over the contract period.
2.16. Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents comprise balances with less than three months’ maturity
from the date of acquisition, including cash and non-restricted balances with Central Bank, treasury bills and other eligible bills,
loans and advances to banks, amounts due from other banks and short-term government securities.
2.17. Other provisions
Provisions for restructuring costs and legal claims are recognized when the Bank has present legal or constructive obligations as
a result of past events; where it is more likely than not that a transfer of economic benefit will be necessary to settle the obligation,
and it can be reliably estimated.
In case of similar obligations, the related cash outflow should be determined in order to settle these obligations as a group. The
provision is recognized even in case of minor probability that cash outflow will occur for an item of these obligations.
When a provision is wholly or partially no longer required, it is reversed through profit or loss under other operating income (expenses).
Provisions for obligations, other than those for credit risk or employee benefits, due in more than 12 months from the balance
sheet date are recognized based on the present value of the best estimate of the consideration required to settle the present
obligation at the balance sheet date. An appropriate pretax discount rate that reflects the time value of money is used to calculate
the present value of such provisions. For obligations due within less than twelve months from the balance sheet date, provisions
are calculated based on undiscounted expected cash outflows unless the time value of money has a significant impact on the
amount of provision, then it is measured at the present value.
2.18. Share based payments
The Bank applies an equity-settled, share-based compensation plan. The fair value of equity instruments recognized as an expense
over the vesting period using appropriate valuation models, taking into account the terms and conditions upon which the equity
instruments were granted. The vesting period is the period during which all the specified vesting conditions of a share-based
payment arrangement are to be satisfied. Vesting conditions include service conditions and performance conditions and market
performance conditions are taken into account when estimating the fair value of equity instruments at the date of grant. At each
balance sheet date the number of options that are expected to be exercised are estimated. Recognizes estimate changes, if any, in
the income statement, and a corresponding adjustment to equity over the remaining vesting period.
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share
premium when the options are exercised.
The bank’s contributions to the employees’ social insurance fund
Bank employees benefit from the Social Insurance Fund that has been established under the Law No. 64 of year 84 regarding
alternative social insurance systems. This system is considered an alternative to state regulations and is subject to the supervision
of the Ministry of Social Insurance. A Ministerial Resolution No. 22 of year 83 was issued regarding approval of the establishment
of the Social Fund for Employees. The bank is obliged to pay to the fund the contributions due for each month represented in
the employer’s share and the share of the insured and pay his obligations towards the fund in implementation of the provisions
of the fund system. This is a system of benefits enjoyed by employees, a system of specific benefits for the bank, according to the
Egyptian accounting standards.
2.19. Income tax
Income tax on the profit or loss for the period and deferred tax are recognized in the income statement except for income tax
relating to items of equity that are recognized directly in equity.
Income tax is recognized based on net taxable profit using the tax rates applicable at the date of the balance sheet in addition to
tax adjustments for previous years.
Deferred taxes arising from temporary time differences between the book value of assets and liabilities are recognized in
accordance with the principles of accounting and value according to the foundations of the tax, this is determining the value of
deferred tax on the expected manner to realize or settle the values of assets and liabilities, using tax rates applicable at the date
of the balance sheet.
Deferred tax assets of the Bank recognized when there is likely to be possible to achieve profits subject to tax in the future to be
possible through to use that asset, and is reducing the value of deferred tax assets with part of that will come from tax benefit
expected during the following years, that in the case of expected high benefit tax, deferred tax assets will increase within the
limits of the above reduced.
2.20. Borrowings
Borrowings are recognized initially at fair value net of transaction costs incurred. Borrowings are subsequently stated at amor-
tized cost also any difference between proceeds net of transaction costs and the redemption value is recognized in the income
statement over the period of the borrowings using the effective interest method.
2.21. Dividends
Dividends on ordinary shares and profit sharing are recognized as a charge of equity upon the general assembly approval. Profit
sharing includes the employees’ profit share and the Board of Directors’ remuneration as prescribed by the Bank’s articles of
incorporation and the corporate law.
2.22. Comparatives
Comparative figures have been adjusted to conform to changes in presentation in the current period where necessary.
208 • CIB Annual Report • 2023
2023 • CIB Annual Report • 209
Financial Statements • Consolidated • 2.23. Noncurrent assets held for sale
a non-current asset (or disposal group) to be classified as held for sale if its carrying amount will be recovered principally through
a sale transaction rather than through continuing use.
Determining whether (and when) an asset stops being recovered principally through use and becomes recoverable principally
through sale.
For an asset (or disposal group) to be classified as held for sale:
(a) It must be available for immediate sale in its present condition, subject only to terms that are usual and customary for sales
of such assets (or disposal groups);
(b) Its sale must be highly probable;
The standard requires that non-current assets (and, in a ‘disposal group’, related liabilities and current assets,) meeting its criteria
to be classified as held for sale be:
(a) Measured at the lower of carrying amount and fair value less costs to sell, with depreciation on them ceasing; and
(b) Presented separately on the face of the statement of financial position with the results of discontinued operations presented
separately in the income statement.
2.24. Discontinued operation
Discontinued operation as ‘a component of an entity that either has been disposed of, or is classified as held for sale, and
(a) Represents a separate major line of business or geographical area of operations,
(b) Is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations or
(c) Is a subsidiary acquired exclusively with a view to resale.
Important Accounting Estimates, and Judgements in Applying Accounting Policies
The bank makes estimates and assumptions that affect the amounts recognized, and the carrying amounts of assets and
liabilities within the next financial year. Estimates and judgements are continually evaluated and are based on management’s
experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Management also makes certain judgements, apart from those involving estimations, in the process of applying the accounting
policies. Judgements that have the most significant effect on the amounts recognized and estimates that can cause a significant
adjustment to the carrying amount of assets and liabilities within the next financial year include:
ECL measurement: Measurement of ECLs is a significant estimate that involves determination of methodology, models and data
inputs. The following components have a major impact on credit loss allowance: definition of default, SICR, probability of default
(“PD”), exposure at default (“EAD”), and loss given default (“LGD”), as well as forward-looking of macro-economic indicators.
The bank regularly reviews and validates the models and inputs to the models to reduce any gaps between expected credit loss
estimates and actual credit loss experience.
The bank used forward-looking information for measurement of ECL, primarily an outcome of its own macro-economic fore-
casting model. The most significant forward-looking assumptions, for both corporate, that correlate with ECL level and their
assigned weights were interest rate, GDP growth rate, Inflation rate and Foreign currency index. In addition to these assumptions
liquidity standard M2 and foreign direct investment have been used for the retail facilities portfolio.
A change in the assigned weight to the base scenario of the forward looking macro-economic variables by 10% towards the down-
turn scenario would result in an increase in ECL by EGP 1,817,837 thousand as of 31 December 2023 (31 December 2022: by EGP
1,188,080 thousand). A corresponding change towards the upturn scenario would result in a decrease in ECL by EGP 1,817,788
thousand as of 31 December 2023 (31 December 2022: by EGP 1,179,558 thousand). A 10% increase or decrease in LGD estimates
would result in an increase or decrease in total expected credit loss allowances of EGP 2,055,659 thousand at 31 December 2023
(31 December 2022: increase or decrease of EGP 1,530,366 thousand).
Significant increase in credit risk (“SICR”). In order to determine whether there has been a significant increase in credit risk,
the bank compares the risk of a default occurring over the life of a financial instrument at the end of the reporting date with the
risk of default at the date of initial recognition. The assessment considers relative increase in credit risk rather than achieving
a specific level of credit risk at the end of the reporting date using, Transition in risk ratings, delinquency status, number of
defaulted days and restructured status resulting from credit risk in addition to watch list. The bank considers all information
about actual or estimated negative changes at working environment , financial and economic circumstances and regulatory
jurisdiction which may affect negatively the ability of the borrower to settle outstanding’s dues. The bank identifies behavioral
indicators of increases in credit risk prior to delinquency and incorporated appropriate forward-looking information into the
credit risk assessment, either at an individual instrument, or on a portfolio level.
Business model assessment. The business model drives classification of financial assets. Management applied judgement in
determining the level of aggregation and portfolios of financial instruments when performing the business model assessment.
When assessing sales transactions, the bank considers their historical frequency, timing and value, reasons for the sales and
expectations about future sales activity. Sales transactions aimed at minimizing potential losses due to credit deterioration are
considered consistent with the “hold to collect” business model. Other sales before maturity, not related to credit risk manage-
ment activities, are also consistent with the “hold to collect” business model, provided that they are infrequent or insignificant in
value, both individually and in aggregate. The bank assesses significance of sales transactions by comparing the value of the sales
to the value of the portfolio subject to the business model assessment over the average life of the portfolio. In addition, sales of
financial asset expected only in stress case scenario, or in response to an isolated event that is beyond the bank’s control, is not
recurring and could not have been anticipated by the bank, are regarded as incidental to the business model objective and do not
impact the classification of the respective financial assets.
The “hold to collect and sell” business model means that assets are held to collect the cash flows, but selling is also integral to
achieving the business model’s objective, such as, managing liquidity needs, achieving a particular yield, or matching the dura-
tion of the financial assets to the duration of the liabilities that fund those assets.
The residual category includes those portfolios of financial assets, which are managed with the objective of realizing cash flows
primarily through sale, such as where a pattern of trading exists. Collecting contractual cash flow is often incidental for this
business model.
Assessment whether cash flows are solely payments of principal and interest (“SPPI”). Determining whether a financial
asset’s cash flows are solely payments of principal and interest required judgement.
The time value of money element may be modified, for example, if a contractual interest rate is periodically reset but the frequency
of that reset does not match the tenor of the debt instrument’s underlying base interest rate. The effect of the modified time
value of money was assessed by comparing relevant instrument’s cash flows against a benchmark debt instrument with SPPI
cash flows, in each period and cumulatively over the life of the instrument. The assessment was done for all reasonably possible
scenarios, including reasonably possible financial stress situation that can occur in financial markets.
3. Financial risk management
The Bank’s activities expose it to a variety of financial risks and those activities involve the analysis, evaluation, acceptance and
management of some degree of risk or combination of risks. Taking risk is core to the financial business, and the operational risks
are an inevitable consequence of being in business. The Bank’s aim is therefore to achieve an appropriate balance between risk
and rewards and minimize potential adverse effects on the Bank’s financial performance. The most important types of financial
risks are credit risk, market risk, liquidity risk and other operating risks. Also market risk includes exchange rate risk, rate of
return risk and other prices risks.
The Bank’s risk management policies are designed to identify and analyze these risks, to set appropriate risk limits and controls,
and to monitor the risks and adherence to limits by means of reliable and up-to-date information systems. The Bank regularly
reviews its risk management policies and systems to reflect changes in markets, products and emerging best practice.
Risk management is carried out by risk department under policies approved by the Board of Directors. Bank treasury identifies,
evaluates and hedges financial risks in close co-operation with the Bank’s operating units.
The board provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign
exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments. In addi-
tion, credit risk management is responsible for the independent review of risk management and the control environment.
210 • CIB Annual Report • 2023
2023 • CIB Annual Report • 211
Financial Statements • Consolidated • 3.1. Credit risk
The Bank takes on exposure to credit risk, which is the risk that counterparty will cause a financial loss for the Bank by failing to
discharge an obligation. Management therefore carefully manages its exposure to credit risk. Credit exposures arise principally
in loans and advances, debt securities and other bills. There is also credit risk in off-balance sheet financial arrangements such
as loan commitments. The credit risk management and control are centralized in a credit risk management team and reported
to the Board of Directors and head of each business unit regularly.
3.1.1. Credit risk measurement
3.1.1.1. Loans and advances to banks and customers
Bank’s rating
1
2
3
4
description of the grade
performing loans
regular watching
watch list
non-performing loans
Loss given default or loss severity represents the Bank expectation of the extent of loss on a claim should default occur. It is
expressed as percentage loss per unit of exposure and typically varies by type of counterparty, type and seniority of claim and
availability of collateral or other credit mitigation.
3.1.1.2. Debt instruments Treasury Bills and Other Governmental Notes
For debt instruments and bills, by external rating agencies are used for assessing of the credit risk exposures, and if this rating
is not available, then other ways similar to those used with the credit customers are uses. The investments in those securities
and bills are viewed as a way to gain a better credit quality mapping and maintain a readily available source to meet the funding
requirement at the same time.
3.1.2. Risk limit control and mitigation policies
The Bank manages, limits and controls concentrations of credit risk wherever they are identified − in particular, to individual
counterparties and banks, and to industries and countries.
The Bank structures the levels of credit risk it undertakes by placing limits on the amount of risk accepted in relation to one
borrower, or groups of borrowers, and to geographical and industry segments. Such risks are monitored on a revolving basis
and subject to an annual or more frequent review, when considered necessary. Limits on the level of credit risk by individual,
counterparties, product, and industry sector and by country are approved quarterly by the Board of Directors.
The exposure to any one borrower including banks and brokers is further restricted by sub-limits covering on- and off-balance
sheet exposures, and daily delivery risk limits in relation to trading items such as forward foreign exchange contracts. Actual
exposures against limits are monitored daily.
Exposure to credit risk is also managed through regular analysis of the ability of borrowers and potential borrowers to meet
interest and capital repayment obligations and by changing these lending limits where appropriate.
Some other specific control and mitigation measures are outlined below:
3.1.2.1. Collateral
The Bank employs a range of policies and practices to mitigate credit risk. The most traditional of these is the taking of security for
funds advances, which is common practice. The Bank implements guidelines on the acceptability of specific classes of collateral
or credit risk mitigation. The principal collateral types for loans and advances are:
• Mortgages over residential properties.
• Mortgage business assets such as premises, and inventory.
• Mortgage financial instruments such as debt securities and equities.
Longer-term finance and lending to corporate entities are generally secured; revolving individual credit facilities are generally
unsecured. In addition, in order to minimize the credit loss the Bank will seek additional collateral from the counterparty as soon
as impairment indicators are noticed for the relevant individual loans and advances.
Collateral held as security for financial assets other than loans and advances is determined by the nature of the instrument. Debt
securities, treasury and other governmental securities are generally unsecured, with the exception of asset-backed securities and
similar instruments, which are secured by portfolios of financial instruments.
Derivatives
The Bank maintains strict control limits on net open derivative positions (i.e., the difference between purchase and sale contracts),
by both amount and term. At any one time, the amount subject to credit risk is limited to the current fair value of instruments
that are favorable to the Bank (i.e., assets with positive fair value), which in relation to derivatives is only a small fraction of the
contract, or notional values used to express the volume of instruments outstanding. This credit risk exposure is managed as
part of the overall lending limits with customers, together with potential exposures from market movements. Collateral or other
security is not usually obtained for credit risk exposures on these instruments, except where the Bank requires margin deposits
from counterparties.
Settlement risk arises in any situation where a payment in cash, securities or equities is made in the expectation of a corresponding
receipt in cash, securities or equities. Daily settlement limits are established for each counterparty to cover the aggregate of all
settlement risk arising from the Bank market transactions on any single day.
3.1.2.2. Clearing house
The Bank further restricts its exposure to credit losses by entering into master netting arrangements with counterparties with
which it undertakes a significant volume of transactions. Master netting arrangements do not generally result in an offset of
balance sheet assets and liabilities, as transactions are usually settled on a gross basis. However, the credit risk associated
with favorable contracts is reduced by a master netting arrangement to the extent that if a default occurs, all amounts with
the counterparty are terminated and settled on a net basis. The Bank overall exposure to credit risk on derivative instruments
subject to master netting arrangements can change substantially within a short period, as it is affected by each transaction
subject to the arrangement.
3.1.2.3. Credit related commitments
The primary purpose of these instruments is to ensure that funds are available to a customer as required. Guarantees and standby
letters of credit carry the same credit risk as loans. Documentary and commercial letters of credit - which are written undertak-
ings by the Bank on behalf of a customer authorizing a third party to draw drafts on the Bank up to a stipulated amount under
specific terms and conditions - are collateralized by the underlying shipments of goods to which they relate and therefore carry
less risk than a direct loan.
Commitments to extend credit represent unused portions of authorizations to extend credit in the form of loans, guarantees or
letters of credit. With respect to credit risk on commitments to extend credit, the Bank is potentially exposed to loss in an amount
equal to the total unused commitments. However, the likely amount of loss is less than the total unused commitments, as most
commitments to extend credit are contingent upon customers maintaining specific credit standards. The Bank monitors the
term to maturity of credit commitments because longer-term commitments generally have a greater degree of credit risk than
shorter-term commitments.
212 • CIB Annual Report • 2023
2023 • CIB Annual Report • 213
Financial Statements • Consolidated • 3.1.3. Impairment and provisioning policies
The internal rating system described in Note 3.1.1 focus on the credit-quality mapping from the lending and investment activities
perspective. Conversely, for only financial reporting purposes impairment losses are recognized for that has been incurred on the
balance sheet date when there is an objective evidence of impairment. for internal operational management.
The impairment provision reported in balance sheet at the end of the year is derived from each of the four internal credit risk
ratings. However, the majority of the impairment provision is usually driven by the last two rating degrees. The following table
illustrates the proportional distribution of loans and advances reported in the balance sheet for each of the four internal credit
risk ratings of the Bank and their relevant impairment losses:
Bank’s rating
1-Performing loans
2-Regular watching
3-Watch list
4-Non-Performing Loans
December 31, 2023
December 31, 2022
Loans and advances
(%)
Impairment
provision
(%)
Loans and
advances
(%)
Impairment
provision
(%)
81.87
13.98
0.58
3.57
32.83
36.63
2.59
27.95
78.40
15.02
1.76
4.82
22.91
25.02
12.93
39.14
The internal rating tools assists management to determine whether objective evidence of impairment exists, based on the
following criteria set by the Bank:
• Cash flow difficulties experienced by the borrower or debtor
• Breach of loan covenants or conditions
• Initiation of bankruptcy proceedings
• Deterioration of the borrower’s competitive position
• Bank granted concessions may not be approved under normal circumstances due to economic, legal reasons and financial
difficulties facing the borrower
• Deterioration of the collateral value
• Deterioration of the credit situation
The Bank’s policy requires the review of all financial assets that are above materiality thresholds at least annually or more regularly
when circumstances require. Impairment provisions on individually assessed accounts are determined by an evaluation of the incurred
loss at balance-sheet date, and are applied to all significant accounts individually. The assessment normally encompasses collateral
held (including re-confirmation of its enforceability) and the anticipated receipts for that individual account. Collective impairment
provisions are provided portfolios of homogenous assets by using the available historical loss experience, experienced judgment and
statistical techniques.
3.1.4. Model of measuring the general banking risk
In addition to the four categories of the Bank’s internal credit ratings indicated in note 3.1.1, management classifies based on
more detailed subgroups to comply with CBE requirements.
The Bank calculates required provisions for impairment of assets exposed to credit risk, including commitments relating
to credit on the basis of rates determined by CBE. In case, the provision required for impairment losses as per CBE credit
worthiness rules exceeds the required provisions by the application used in balance sheet preparation in accordance to the
International Financial Reporting Standard (9) issued by the Central Bank of Egypt on February 26, 2019 . That excess shall
be added to the general banking risk reserve in the equity section. Such reserve is always adjusted, on a regular basis, by any
increase or decrease so, that reserve shall always be equivalent to the amount of increase between the two provisions. Such
reserve is not available for distribution.
Below is a statement of institutional worthiness according to internal ratings, compared to CBE ratings and rates of provisions
needed for assets impairment related to credit risk:
CBE Rating
Categorization
Provision%
Internal
rating
1
2
3
4
5
6
7
8
9
10
Low risk
Average risk
Satisfactory risk
Reasonable risk
Acceptable risk
Marginally acceptable risk
Watch list
Substandard
Doubtful
Bad debts
0%
1%
1%
2%
2%
3%
5%
20%
50%
100%
1
1
1
1
1
2
3
4
4
4
Categorization
Performing loans
Performing loans
Performing loans
Performing loans
Performing loans
Regular watching
Watch list
Non performing loans
Non performing loans
Non performing loans
214 • CIB Annual Report • 2023
2023 • CIB Annual Report • 215
Financial Statements • Consolidated • 3.1.5. Maximum exposure to credit risk before collateral held
3.1.6. Loans and advances
Loans and advances are summarized as follows:
In balance sheet items exposed to credit risk
Dec. 31, 2023 Dec. 31, 2022
EGP Thousands
Cash & balances at the central bank
Gross Due from banks
Less: ECL
Gross loans and advances to banks
Less: ECL
Gross loans and advances to customers
Individual:
-Overdraft
- Credit cards
- Personal loans
- Mortgages
Corporate:
- Overdraft
- Direct loans
- Syndicated loans
- Other loans
Unamortized bills discount
Unamortized syndicated loans discount
ECL
Suspended credit account
Derivative financial instruments
Financial investments:
-Debt instruments
Other assets (Accrued revenues)
Total
Off balance sheet items exposed to credit risk
Financial guarantees
Customers acceptances
Letters of credit (import and export)
Letter of guarantee
Total
71,887,821
231,087,402
(2,158)
823,739
(1,291)
2,927,620
10,297,598
42,552,132
4,348,982
55,047,153
99,455,837
51,311,552
434,524
(509,523)
(145,003)
(29,237,737)
(1,497,199)
1,105,148
269,897,248
13,018,038
822,801,883
8,021,170
4,800,405
9,075,124
160,776,153
182,672,852
47,492,549
133,906,112
(49,392)
2,988,410
(10,213)
2,132,876
7,636,331
40,374,834
3,399,858
42,595,303
78,759,856
44,722,871
124,453
(678,795)
(221,018)
(24,536,712)
(709,985)
1,939,961
237,224,773
11,437,147
628,529,219
8,977,208
3,482,249
8,640,327
123,073,882
144,173,666
Gross Loans and advances
Less:
ECL
Unamortized bills discount
Unamortized syndicated loans discount
Suspended credit account
Net
EGP Thousands
Dec.31, 2023
Dec.31, 2022
Loans and
advances
tocustomers
266,375,398
Loans and
advances
to banks
823,739
Loans and
advances to
customers
219,746,382
Loans and
advances
to banks
2,988,410
29,237,737
509,523
145,003
1,497,199
234,985,936
1,291
-
-
-
822,448
24,536,712
678,795
221,018
709,985
193,599,872
10,213
-
-
-
2,978,197
Expected credit losses for loans and advances totaled EGP 29,239,028 thousand During the year, the Bank’s total loans and
advances increased by 19.96%.In order to minimize the probable exposure to credit risk, the Bank focuses more on conducting
business with large enterprises, banks and retail customers with good credit rating or sufficient collateral.
Total balances of loans and facilities to customers divided by stages:
Dec.31, 2023
Individuals
Corporate and Business Banking
Total
Stage 1:
12 months
53,641,448
129,155,165
182,796,613
Stage 2:
Life time
5,646,750
68,344,499
73,991,249
EGP Thousands
Stage 3:
Life time
838,134
8,749,402
9,587,536
Total
60,126,332
206,249,066
266,375,398
Expected credit losses for loans and facilities to customers divided by stages:
The above table represents the Bank’s Maximum exposure to credit risk on December 31, 2023, before taking into account any held collateral.
For assets recognized on balance sheet, the exposures set out above are based on net carrying amounts as reported in the balance sheet.
As shown above, 28.66% of the total maximum exposure is derived from loans and advances to banks and customers against
31.27% on December 31, 2022, while investments in debt instruments represent 32.8% against 37.74% on December 31, 2022.
Dec.31, 2023
Individuals
Corporate and Business Banking
Total
Management is confident in its ability to continue to control and sustain minimal exposure of credit risk resulting from both the
bank’s loans and advances portfolio and debt instruments based on the following:
Loans, advances and expected credit losses to banks divided by stages:
• 95.85% of the loans and advances are concentrated in the top two grades of the internal credit risk rating system against
93.42% on December 31, 2022
• Loans and advances assessed individualy are valued EGP 9,413,975 thousand against EGP 10,663,438 thousand on December 31, 2022
• The Bank has implemented more prudent processes when granting loans and advances during the financial year ended on
December 31, 2023.
• 88.05% of the investments in debt Instruments are Egyptian sovereign instruments against 89.49% on December 31, 2022.
Dec.31, 2023
Time loans
Expected credit losses
Net
EGP Thousands
Stage 1:
12 months
86,495
-
86,495
Stage 2:
Life time
737,244
(1,291)
735,953
Stage 3:
Life time
-
-
-
Total
823,739
(1,291)
822,448
216 • CIB Annual Report • 2023
2023 • CIB Annual Report • 217
EGP Thousands
Stage 2:
Expected
credit losses
Over a
lifetime
that is not
creditworthy
205,628
14,882,887
15,088,515
Stage 3:
Expected
credit losses
Over a
lifetime
Credit
default
486,555
7,701,248
8,187,803
Total
2,243,295
26,994,442
29,237,737
Stage 1: Expected
credit losses
over 12 months
1,551,112
4,410,307
5,961,419
Financial Statements • Consolidated •
Off balance sheet items exposed to credit risk and expected credit losses divided by stages:
Expected credit losses divided by internal classification:
Corporate and Business Banking:
Dec.31, 2023
Facilities and guarantees
Expected credit losses
Net
EGP Thousands
Stage 1:
12 months
113,577,662
(5,128,681)
108,448,981
Stage 2:
Life time
55,000,921
(3,391,432)
51,609,489
Stage 3:
Life time
6,073,099
(2,150,455)
3,922,644
Total
174,651,682
(10,670,568)
163,981,114
Total balances of loans and facilities to customers divided by stages:
Dec.31, 2022
Individuals
Corporate and Business Banking
Total
EGP Thousands
Stage 1:
12 months
47,483,664
91,616,120
139,099,784
Stage 2:
Life time
5,269,640
64,555,274
69,824,914
Stage 3:
Life time
790,595
10,031,089
10,821,684
Total
53,543,899
166,202,483
219,746,382
Expected credit losses for loans and facilities to customers divided by stages:
EGP Thousands
Stage 1:
Expected
credit
losses over
12 months
1,024,932
2,631,413
3,656,345
Stage 2:
Expected
credit
losses
Over a lifetime
that is not
creditworthy
171,725
11,053,147
11,224,872
Stage 3:
Expected
credit
losses
Over a
lifetime
Credit
default
397,479
9,258,016
9,655,495
Total
1,594,136
22,942,576
24,536,712
Dec.31, 2022
Individuals
Corporate and Business Banking
Total
Loans, advances and expected credit losses to banks divided by stages:
Dec.31, 2022
Time loans
Expected credit losses
Net
EGP Thousands
Stage 1:
12 months
-
-
-
Stage 2:
Life time
2,988,410
(10,213)
2,978,197
Stage 3:
Life time
-
-
-
Total
2,988,410
(10,213)
2,978,197
Off balance sheet items exposed to credit risk and expected credit losses divided by stages:
Dec.31, 2022
Facilities and guarantees
Expected credit losses
Net
218 • CIB Annual Report • 2023
EGP Thousands
Stage 1:
12 months
84,513,998
(3,561,390)
80,952,608
Stage 2:
Life time
45,046,087
(1,443,926)
43,602,161
Stage 3:
Life time
5,636,373
(1,670,378)
3,965,995
Total
135,196,458
(6,675,694)
128,520,764
EGP Thousands
Scope of
probability
of default
(PD)
1%-12%
12%-21%
21%-37%
100%
Stage 1:
Expected
credit losses
over 12
months
3,513,490
896,817
-
-
“Stage 2:
Expected
credit losses
Over a lifetime
that is not
creditworthy”
4,535,215
9,607,743
739,929
-
“Stage 3:
Expected
credit losses
Over a
lifetime
Credit
default”
-
-
16,517
7,684,731
Total
8,048,705
10,504,560
756,446
7,684,731
EGP Thousands
Stage 1:
Expected
credit
losses
over 12
months
1,551,112
-
-
-
Stage 2:
Expected
credit losses
Over a lifetime
that is
not
creditworthy
-
205,544
84
-
Scope of
probability
of default
(PD)
1% - 10%
11% <
11% <
100%
Stage 3:
Expected
credit
losses
Over a
lifetime
Credit
default
-
-
-
486,555
Total
1,551,112
205,544
84
486,555
Dec.31, 2023
Performing loans (1-5)
Regular watching (6)
Watch list (7)
Non-performing loans (8-10)
Individual Loans
Dec.31, 2023
Performing loans (1-5)
Regular watching (6)
Watch list (7)
Non-performing loans (8-10)
The total balances of loans and facilities divided according to the internal classification:
Corporate and Business Banking:
Dec.31, 2023
Performing loans (1-5)
Regular watching (6)
Watch list (7)
Non-performing loans (8-10)
Individual Loans:
Dec.31, 2023
Performing loans (1-5)
Regular watching (6)
Watch list (7)
Non-performing loans (8-10)
Scope of
probability
of default
(PD)
1%-12%
12%-21%
21%-37%
100%
Scope of
probability
of default
(PD)
1% - 10%
11% <
11% <
100%
EGP Thousands
Stage 1:
12 months
117,477,290
11,677,875
-
-
Stage 2:
Life time
46,809,570
20,062,699
1,472,230
-
Stage 3:
Life time
-
-
46,604
8,702,798
Total
164,286,860
31,740,574
1,518,834
8,702,798
EGP Thousands
Stage 1:
12 months
53,641,448
-
-
-
Stage 2:
Life time
-
5,608,073
38,677
-
Stage 3:
Life time
-
-
207
837,927
Total
53,641,448
5,608,073
38,884
837,927
2023 • CIB Annual Report • 219
Financial Statements • Consolidated • Expected credit losses divided by internal classification:
Corporate and Business Banking:
Stage 2:
Expected
credit losses
Over a
lifetime
that is
not
creditworthy
2,522,526
5,403,728
3,126,893
-
Stage 2:
Expected
credit losses
Over a
lifetime
that is
not
creditworthy
-
171,724
1
-
Stage 1:
Expected
credit
losses
over 12
months
2,066,209
565,204
-
-
Stage 1:
Expected
credit
losses
over 12
months
1,024,932
-
-
-
EGP Thousands
Stage 3:
Expected
credit losses
Over a lifetime
Credit default
-
-
46,758
9,211,258
Total
4,588,735
5,968,932
3,173,651
9,211,258
EGP Thousands
Stage 3:
Expected
credit losses
Over a lifetime
Credit default
-
-
253
397,226
Total
1,024,932
171,724
254
397,226
Scope of
probability
of default
(PD)
1%-11%
11%-22%
22%-38%
100%
Scope of
probability
of default
(PD)
1% - 9%
10% <
10% <
100%
Dec.31, 2022
Performing loans (1-5)
Regular watching (6)
Watch list (7)
Non-performing loans (8-10)
Individual Loans:
Dec.31, 2022
Performing loans (1-5)
Regular watching (6)
Watch list (7)
Non-performing loans (8-10)
The total balances of loans and facilities divided according to the internal classification:
Corporate and Business Banking:
Scope of
probability
of default
(PD)
1%-11%
11%-22%
22%-38%
100%
Scope of
probability
of default
(PD)
1% - 9%
10% <
10% <
100%
Stage 1:
12 months
81,876,093
9,740,027
-
-
Stage 2:
Life time
42,257,778
18,454,375
3,843,121
-
Stage 1:
12 months
47,483,664
-
-
-
Stage 2:
Life time
-
5,269,603
37
-
EGP Thousands
Stage 3:
Life time
-
-
82,698
9,948,391
Total
124,133,871
28,194,402
3,925,819
9,948,391
EGP Thousands
Stage 3:
Life time
-
-
1,429
789,166
Total
47,483,664
5,269,603
1,466
789,166
Dec.31, 2022
Performing loans (1-5)
Regular watching (6)
Watch list (7)
Non-performing loans (8-10)
Individual Loans:
Dec.31, 2022
Performing loans (1-5)
Regular watching (6)
Watch list (7)
Non-performing loans (8-10)
220 • CIB Annual Report • 2023
The following table provides information on the quality of financial assets subject to ECL calculation during the financial year:
Dec.31, 2023
Due from banks
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
Less: ECL
Net
EGP Thousands
Stage 1
12 months
Stage 2
Life time
Stage 3
Life time
5,436,043
-
-
-
5,436,043
(2,158)
5,433,885
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
5,436,043
-
-
-
5,436,043
(2,158)
5,433,885
The following table provides information on the quality of financial assets during the financial year:
Individual Loans:
Dec.31, 2023
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
Less: ECL
Net
Corporate and Business Banking:
Dec.31, 2023
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
Less: ECL
Net
Debt Instruments at Fair value through OCI
Dec.31, 2023
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
ECL
Stage 1
12 months
Stage 2
Life time
53,641,448
-
-
-
53,641,448
(1,551,112)
52,090,336
-
5,608,073
38,677
-
5,646,750
(205,628)
5,441,122
EGP Thousands
Stage 3
Life time
-
-
207
837,927
838,134
(486,555)
351,579
Total
53,641,448
5,608,073
38,884
837,927
60,126,332
(2,243,295)
57,883,037
Stage 1
12 months
Stage 2
Life time
Stage 3
Life time
Total
EGP Thousands
117,477,290
11,677,875
-
-
129,155,165
(4,410,307)
124,744,858
46,809,570
20,062,699
1,472,230
-
68,344,499
(14,882,887)
53,461,612
-
-
46,604
8,702,798
8,749,402
(7,701,248)
1,048,154
164,286,860
31,740,574
1,518,834
8,702,798
206,249,066
(26,994,442)
179,254,624
Stage 1
12 months
Stage 2
Life time
Stage 3
Life time
Total
EGP Thousands
183,605,059
47,951,170
-
-
231,556,229
(2,868,271)
-
-
-
-
-
-
-
-
-
-
-
-
183,605,059
47,951,170
-
-
231,556,229
(2,868,271)
2023 • CIB Annual Report • 221
Financial Statements • Consolidated • Debt Instruments at amortized cost
Corporate and Business Banking:
Dec.31, 2023
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
ECL
Net
Stage 1
12 months
Stage 2
Life time
Stage 3
Life time
Total
EGP Thousands
34,467,915
4,071,573
-
-
38,539,488
(198,469)
38,341,019
-
-
-
-
-
-
-
-
-
-
-
-
-
-
34,467,915
4,071,573
-
-
38,539,488
(198,469)
38,341,019
Dec.31, 2022
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
Less: ECL
Net
The following table provides information on the quality of financial assets subject to ECL calculation during the financial year:
Debt Instruments at Fair value through OCI
Due from banks
Dec.31, 2022
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
Less: ECL
Net
Stage 1
12 months
Stage 2
Life time
Stage 3
Life time
Total
EGP Thousands
4,389,069
15,639,858
-
-
20,028,927
(38,884)
19,990,043
-
6,095,598
-
-
6,095,598
(10,508)
6,085,090
-
-
-
-
-
-
-
4,389,069
21,735,456
-
-
26,124,525
(49,392)
26,075,133
The following table provides information on the quality of financial assets during the financial year:
Individual Loans:
Dec.31, 2022
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
Less: ECL
Net
Stage 1
12 months
Stage 2
Life time
Stage 3
Life time
Total
EGP Thousands
47,483,664
-
-
-
47,483,664
(1,024,932)
46,458,732
-
5,269,603
37
-
5,269,640
(171,725)
5,097,915
-
-
1,429
789,166
790,595
(397,479)
393,116
47,483,664
5,269,603
1,466
789,166
53,543,899
(1,594,136)
51,949,763
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
ECL
Debt Instruments at amortized cost
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
ECL
Net
Stage 1
12 months
Stage 2
Life time
Stage 3
Life time
Total
EGP Thousands
81,876,093
9,740,027
-
-
91,616,120
(2,631,413)
88,984,707
42,257,778
18,454,375
3,843,121
-
64,555,274
(11,053,147)
53,502,127
-
-
82,698
9,948,391
10,031,089
(9,258,016)
773,073
124,133,871
28,194,402
3,925,819
9,948,391
166,202,483
(22,942,576)
143,259,907
Stage 1
12 months
Stage 2
Life time
Stage 3
Life time
Total
163,452,629
39,247,384
-
-
202,700,013
(979,945)
-
-
-
-
-
-
-
-
-
-
-
-
163,452,629
39,247,384
-
-
202,700,013
(979,945)
Stage 1
12 months
Stage 2
Life time
Stage 3
Life time
Total
31,376,120
3,227,477
-
-
34,603,597
(78,837)
34,524,760
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31,376,120
3,227,477
-
-
34,603,597
(78,837)
34,524,760
222 • CIB Annual Report • 2023
2023 • CIB Annual Report • 223
Financial Statements • Consolidated • s
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226 • CIB Annual Report • 2023
2023 • CIB Annual Report • 227
Financial Statements • Consolidated •
Loans and advances restructured
Restructuring activities include rescheduling arrangements, applying obligatory management programs, modifying and deferral
of payments. The application of restructuring policies are based on indicators or criteria of credit performance of the borrower
that is based on the personal judgment of the management, which indicate that payment will most likely continue. Restructuring
is commonly applied to term loans, specially customer loans. Renegotiated loans totaled at the end of the year are as follows :
Loans and advances to customer
Corporate
- Direct loans
Total
Dec.31, 2023
EGP Thousands
Dec.31, 2022
18,472,670
18,472,670
17,207,400
17,207,400
3.1.7. Financial investments:
The following table provides analysis of financial investment balances by rating agencies at the end of the year:
Dec.31, 2023
Amortized cost
AAA
AA+ to AA-
A+ to A-
Less than A-
Not rated
Total
Dec.31, 2023
Fair value through OCI
AAA
AA+ to AA-
A+ to A-
Less than A-
Not rated
Total
Stage 1:
12 months
-
-
-
38,341,019
-
38,341,019
Stage 1:
12 months
-
-
-
231,556,229
-
231,556,229
EGP Thousands
Stage 2:
Life time
Stage 3:
Life time
Individually
impaired
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
-
-
-
38,341,019
-
38,341,019
EGP Thousands
Stage 2:
Life time
Stage 3:
Life time
Individually
impaired
Total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
231,556,229
-
231,556,229
The following table displays the analysis of expected credit losses of financial investments by rating agencies at the end of the year:
EGP Thousands
Stage 1:
Expected credit
losses over
12 months
Stage 2:
Expected credit
losses
Over a lifetime
that is not
creditworthy
Stage 3:
Expected credit
losses
Over a lifetime
Credit default
Individually
impaired
-
-
-
3,066,740
-
3,066,740
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
-
-
-
3,066,740
-
3,066,740
Dec.31, 2023
Fair value through OCI
& Amortized cost
AAA
AA+ to AA-
A+ to A-
Less than A-
Not rated
Total
228 • CIB Annual Report • 2023
3.1.7. Financial investments:
The following table analyzes financial investment balances by rating agencies at the end of the year:
EGP Thousands
Dec.31, 2022
Amortized cost
AAA
AA+ to AA-
A+ to A-
Less than A-
Not rated
Total
Dec.31, 2022
Fair value through OCI
AAA
AA+ to AA-
A+ to A-
Less than A-
Not rated
Total
Stage 1:
12 months
Stage 2:
Life time
Stage 3:
Life time
Individually
impaired
-
-
-
34,524,760
-
34,524,760
Stage 1:
12 months
-
-
-
202,700,013
-
202,700,013
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
-
-
-
34,524,760
-
34,524,760
EGP Thousands
Stage 2:
Life time
Stage 3:
Life time
Individually
impaired
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
-
-
-
202,700,013
-
202,700,013
The following table displays analysis of impairment on credit losses of financial investments by rating agencies at the end of the year:
Dec.31, 2022
Fair value through OCI
& Amortized cost
AAA
AA+ to AA-
A+ to A-
Less than A-
Not rated
Total
Stage 1: Expected
credit losses
over 12 months
-
-
-
1,058,782
-
1,058,782
EGP Thousands
Stage 2:
Expected
credit losses
Over a
lifetime
that is not
creditworthy
-
-
-
-
-
-
Stage 3:
Expected
credit losses
Over a lifetime
Credit default
-
-
-
-
-
-
Individually
impaired
-
-
-
-
-
-
Total
-
-
-
1,058,782
-
1,058,782
2023 • CIB Annual Report • 229
Financial Statements • Consolidated • 3.1.8. Concentration of risks of financial assets with credit risk exposure
3.1.8.1. Geographical sectors
Following is a breakdown of the Bank’s main credit exposure at their book values categorized by geographical region at the end
of the year.
The Bank has allocated exposures to regions based on the country of domicile of its counterparties.
EGP Thousands
s
d
n
a
s
u
o
h
T
P
G
E
Dec.31, 2023
Cash and balances at the central bank
Gross due from banks
Less: ECL
Gross loans and advances to banks
Less: ECL
Gross loans and advances to
customers
Individual:
- Overdrafts
- Credit cards
- Personal loans
- Mortgages
Corporate:
- Overdrafts
- Direct loans
- Syndicated loans
- Other loans
Unamortized bills discount
Unamortized syndicated loans dis-
count
ECL
Suspended credit account
Derivative financial instruments
Financial investments:
-Debt instruments
Total
Total as at December 31, 2022
Alex, Delta
Cairo
and Sinai Upper Egypt
Outside
Egypt (CIB
Kenya)
-
-
-
-
-
-
-
-
-
-
593,886
1,823,675
10,055,677
195,951
4,454,786
26,635,089
3,026,430
226,464
(30,319)
158,004
304,705
2,284,529
29,176
1,422,155
7,546,425
-
-
-
136,036
377,791
(1,966)
-
-
5,459
-
43,638
12,351
223,093
987,183
-
-
-
Total
71,887,821
231,087,402
(2,158)
823,739
(1,291)
2,927,620
10,297,598
42,552,132
4,348,982
55,047,153
99,455,837
51,311,552
434,524
(509,523)
71,751,785
230,709,611
(192)
823,739
(1,291)
2,170,271
8,169,218
30,168,288
4,111,504
48,947,119
64,287,140
48,285,122
208,060
(479,204)
(145,003)
-
-
-
(145,003)
(22,385,965)
(1,496,706)
1,101,896
(4,175,424)
(336)
-
(2,565,815)
(157)
-
(110,533)
-
3,252
(29,237,737)
(1,497,199)
1,105,148
268,790,594
755,015,986
570,576,462
-
42,805,879
35,113,647
-
9,179,022
9,214,884
1,106,654
2,782,958
2,187,079
269,897,248
809,783,845
617,092,072
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230 • CIB Annual Report • 2023
2023 • CIB Annual Report • 231
Financial Statements • Consolidated •
3.2. Market risk
Market Risks represent the potential losses resulting from unfavorable movements in market prices that may negatively affect
the values of the bank’s investment positions linked to the bank’s balance sheet as a whole, which in turn affects the bank’s profit-
ability and its capital base. These investments are represented in debt instruments, stocks, or investment funds, in addition to
the currency exchange rate risks. Market risk results from open positions of the rate of return, currencies, and equity products,
as each of them is exposed to general and specific risks in the market and changes in the level of sensitivity to market rates or to
prices such as interest rates, exchange rates and prices of equity instruments. The bank distinguishes between the trading Book
portfolio and the Banking Book portfolio in measuring market risks, as the trading portfolio includes instruments held for the
purpose of resale or taken by the bank to benefit in the short term from the actual or expected difference between the buying
and selling prices or benefiting from any changes that may occur in the return rates and any other prices that affect the trading
portfolio, in addition to the financial derivative positions used for the purpose of hedging The banking book portfolio for non-
trading purposes includes instruments acquired that are salable or held until settlement dates and managing the return rate of
assets and liabilities. As part of market risk management, the bank performs several hedging strategies, as well as entering into
interest rate swap contracts in order to balance the risk associated with debt instruments and long-term loans. Periodic reports
on market risks are submitted to the Board of Directors and the members of the Assets and Liabilities Committee (ALCO).
3.2.1. Market risk measurement techniques
3.2.1.1. Value at Risk
The Bank applies a “Value at Risk” methodology (VaR) to its trading and non-trading portfolios, to estimate the market risk of
positions held and the maximum losses expected under normal market conditions, based upon a number of assumptions for
various changes in market conditions.
VaR is a statistically based estimate of the potential loss on the current portfolio from adverse market movements. It expresses the
‘maximum’ amount the Bank might lose , but only to a certain level of confidence (99%). There is therefore a specified statistical prob-
ability (1%) that actual loss could be greater than the VaR estimate. The VaR model assumes a certain ‘holding period’ until positions
can be closed ( 1 Day). The Bank assesses the historical movements in the market prices based on volatilities and correlations. The
use of this approach does not prevent losses outside of these limits in the event of more significant market movements.
3.2.2. Value at risk (VaR) Summary
Total VaR by risk type
Foreign exchange risk
Interest rate risk
- For non trading purposes
- For trading purposes
Portfolio managed by others risk
Total VaR
Trading portfolio VaR by risk type
Foreign exchange risk
Interest rate risk
- For trading purposes
Portfolio managed by others risk
Total VaR
Last 12 months
ended 31/12/2023
Medium
High
Low Medium
EGP Thousands
Last 12 months
ended 31/12/2022
Low
High
16,184
257,479
255,617
1,862
-
135,847
103,290
502,517
495,768
6,749
-
309,967
228
139,481
139,248
233
-
58,224
12,300
154,140
154,140
-
323
157,529
84,183
257,980
257,980
-
8,739
256,962
117
79,399
79,399
-
-
86,401
Last 12 months
ended 31/12/2023
Medium
16,184
1,862
1,862
-
16,184
High
103,290
6,749
6,749
-
103,290
Low Medium
12,300
228
-
233
233
-
323
-
12,469
228
Last 12 months
ended 31/12/2023
EGP Thousands
Last 12 months
ended 31/12/2022
Low
117
-
-
-
117
High
84,183
-
-
8,739
84,183
EGP Thousands
Last 12 months
ended 31/12/2022
Low
79,399
79,399
High
257,980
257,980
As VaR constitutes an integral part of the Bank’s market risk control regime, the Market Risk Management set VaR Limits, for the
trading book, which have been approved by the board, and are monitored and reported on a daily basis to the Senior Management.
In addition, monthly limits compliance is reported to the ALCO.
Non trading portfolio VaR by risk type
- Interest rate risk
Total VaR
Medium
255,617
255,617
High
495,768
495,768
Low Medium
154,140
154,140
139,248
139,248
The Bank is calculating the Market Risk Capital Requirements by applying Basel II “Standardised Measurement Method”,
according to the Central Bank of Egypt regulatory requirements.
3.2.1.2. Stress testing
Stress tests provide an indication of the potential size of losses that could arise under extreme market conditions. Therefore, the
bank computes on a daily basis trading Stressed VaR, combined with the trading VaR, to capture the abnormal movements in
financial markets and to give more comprehensive picture of risk. The results of the stress tests are reviewed by the ALCO on a
monthly basis and the board risk committee on a quarterly basis.
The three previous outcomes of the VAR were calculated independently from the positions involved and historical market move-
ments. The aggregate value at risk for trading and non-trading is not the Bank’s risk value because of the correlation between
types of risks.
232 • CIB Annual Report • 2023
2023 • CIB Annual Report • 233
Financial Statements • Consolidated • 3.2.3. Foreign exchange risk
The Bank’s financial position and cash flows are exposed to fluctuations in foreign currency exchange rates. The Board sets
limits on the level of exposure by currency and in aggregate for both overnight and intra-day positions, which are monitored
daily. The table below summarizes the Bank’s exposure to foreign exchange rate risk and financial instruments at carrying
amounts, categorized by currency.
Interest rate risk
3.2.4.
The Bank addresses exposure to the effects of fluctuations in the prevailing levels of market interest rates on both its fair value and
cash flow risks. Interest margins may increase as a result of such changes but profit may decrease as a consequence unexpected
movements.The Board sets limits on the gaps of interest rate repricing that may be undertaken,which is monitored by the bank’s
Risk Management Department.
Dec.31, 2023
EGP
USD
EUR
GBP
Other
Total
Equivalent EGP Thousands
The table below summarizes the Bank’s exposure to interest rate risks. It includes the Bank’s financial instruments at carrying
amounts, categorized by the earlier of repricing or contractual maturity dates.
Financial assets
Cash and balances at the central bank
Gross due from banks
Gross loans and advances to banks
Gross loans and advances to custom-
ers
Derivative financial instruments
Financial investments
Gross financial investment securities
Investments in associates
Total financial assets
Financial liabilities
Due to banks
Due to customers
Derivative financial instruments
Issued debt instruments
Other loans
Total financial liabilities
Net on-balance sheet financial
position
Total financial assets as of
December 31, 2022
Total financial liabilities as of
December 31, 2022
Net financial position as of
December 31, 2022
68,287,770
175,148,470
34,558
2,203,511
52,502,950
789,181
771,722
1,361,594
-
116,742
1,950,328
-
508,076
124,060
-
71,887,821
231,087,402
823,739
191,787,867
67,423,771
6,003,208
4,847
1,155,705
266,375,398
624,313
477,583
-
-
3,252
1,105,148
218,415,842
115,979
48,616,170
-
654,414,799 172,013,166
3,748,758
-
11,885,282
-
-
2,071,917
883,952
-
271,664,722
115,979
2,675,045 843,060,209
531,455
463,338,470
45,916
-
226,917
11,335,981
187,718,800
95,018
3,073,349
12,086,470
464,142,758 214,309,618
545,424
21,960,477
-
-
170,520
22,676,421
9,961
1,992,672
-
-
-
2,002,633
35,182
2,227,060
-
-
-
12,458,003
677,237,479
140,934
3,073,349
12,483,907
2,262,242 705,393,672
190,272,041 (42,296,452) (10,791,139)
69,284
412,803 137,666,537
452,425,118 169,455,300
18,509,254
1,501,039
2,993,095 644,883,806
369,855,281 157,397,713
15,225,576
1,430,547
1,859,465 545,768,582
82,569,837
12,057,587
3,283,678
70,492
1,133,630
99,115,224
Dec.31, 2023
Financial assets
Cash and balances at
the central bank
Gross due from banks
Gross loans and
advances to banks
Gross loans and
advances to customers
Derivatives financial
instruments (including
IRS notional amount)
Financial investments
Gross financial
investment securities
Investments in
associates
Total financial assets
Financial liabilities
Due to banks
Due to customers
Derivatives financial
instruments (including
IRS notional amount)
Issued debt instruments
Other loans
Total financial
liabilities
Total interest
re-pricing gap
Total financial assets as
of December 31, 2022
Total financial
liabilities as of
December 31, 2022
Total interest re-pric-
ing gap as of December
31, 2022
Up to1
Month
1-3
Months
3-12
Months
1-5 years
Over 5
years
-
-
-
-
202,400,864
21,252,299
308,931
4,633,965
171,319
652,420
-
-
-
-
-
177,524,994
28,835,218
20,841,660
31,299,932
7,873,594
107,866
111,047
405,399
15,927,386
-
Non-
Interest
Bearing
Total
71,887,821
71,887,821
2,491,343
231,087,402
-
-
-
823,739
266,375,398
16,551,698
79,759,112
29,028,568
74,543,284
62,529,010
24,759,464
1,045,284
271,664,722
-
-
-
-
-
115,979
115,979
459,964,155
79,879,552
96,099,274 114,390,293
32,633,058
75,540,427 858,506,759
9,896,311
276,798,801
64,381
69,358,398
521,130
55,497,147
-
152,834,754
-
808,683
1,976,181
121,939,696
12,458,003
677,237,479
1,566,854
13,918,717
6,895
95,018
-
40,807
-
7,463,123
-
4,792,479
3,073,349
187,498
-
-
-
-
-
-
15,587,484
3,073,349
12,483,907
288,302,773
90,804,619
60,817,651 156,190,619
808,683 123,915,877 720,840,222
171,661,382 (10,925,067)
35,281,623 (41,800,326)
31,824,375 (48,375,450)
137,666,537
287,210,474
75,741,644
94,671,298
113,411,522
43,605,574
50,186,474 664,826,986
235,230,243
75,497,885
54,772,128
99,211,335
3,730,655
97,269,516 565,711,762
51,980,231
243,759
39,899,170
14,200,187
39,874,919 (47,083,042)
99,115,224
3.3. Liquidity risk
Liquidity risk is the risk that the Bank is unable to meet its payment obligations associated with its financial liabilities when they
fall due and to replace funds when they are withdrawn.
The consequence may be the failure to meet obligations to repay depositors and fulfill commitments to lend.
234 • CIB Annual Report • 2023
2023 • CIB Annual Report • 235
Financial Statements • Consolidated • Liquidity Risk Management Organization and Measurement Tools
Liquidity Risk is governed by Asset and Liability Committee (ALCO) and Board Risk Committee (BRC) subject to provisions of
Treasury Poilcy Guide (TPG).
3.3.3. Non-derivative cash flows
The table below presents the cash flows payable by the Bank under non-derivative financial liabilities by remaining contractual maturi-
ties and the maturities assumption for non contractual products on the - basis of their behaviour studies, at balance sheet date.
Board Risk Committee (BRC): Provides oversight of risk management functions and assesses compliance to the set risk strate-
gies and policies approved by the Board of Directors (BoD) through periodic reports submitted by the Risk Group. The committee
makes recommendations to the BoD with regards to risk management strategies and policies (including those related to capital
adequacy, liquidity management,various types of risks: credit, market, operation, compliance, reputation and any other risks the
Bank may be exposed to).
Asset & Liability Committee (ALCO): Optimises the allocation of assets and liabilities, taking into consideration expectations
of the potential impact of future interest rate fluctuations, liquidity constraints, and foreign exchange exposures. ALCO monitors
the Bank’s liquidity and market risks, economic developments, market fluctuations, and risk profile to ensure ongoing activities
are compatible with the risk/ reward guidelines approved by the BoD.
Treasury Policy Guide (TPG): The purpose of the TPG is to document and communicate the policies that govern the activities
performed by the Treasury Group and monitored by Risk Group.
The main measures and monitoring tools used to assess the Bank’s liquidity risk include regulatory and internal ratios, gaps,
Basel III liquidity ratios, asset and liability gapping mismatch, stress testing, and funding base concentration. More conservative
internal targets and Risk Appetite indicators (RAI) against regulatory requirements are set for various measures of Liquidity and
Funding Concentration Risks.
At the end of Period, the Basel III Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) maintained strong and
well above regulatory requirements.
The Bank maintained a solid LCY & FCY Liquidity position with decent buffers to meet both the global and local increase in
risk profile. CIB will continue with its robust Liability strategy with reliance on customer deposits (stable funding) as the main
contributor of total liabilities, and low dependency on the Wholesale Funding. CIB has ample level of High Quality Liquid Assets
(HQLA) based on its LCY & FCY Sovereign Portfolio investments, which positively reflects the Bank’s solid Liquidity Ratios and
Basel III LCR & NSFR ratios, with a large buffer maintained above the Regulatory ratios requirements.
3.3.1. Liquidity risk management process
The Bank’s liquidity management process is carried by the Assets and Liabilities Management Department and monitored inde-
pendently by the Risk Management Department, and includes projecting cash flows by major currency under various stress
scenarios and considering the level of liquid assets necessary in relation thereto:
Up to 1
month
One to
three
months
Three
months to
one year
One year
to five
years
Over five
years
Total
EGP Thousands
12,296,040
61,646,285
10,189
137,513
65,462
77,872,527
19,720
215,330
552,098
194,550,897
90,384
658,073
-
414,913,382
3,257,074
5,372,219
-
12,533,110
-
12,080,624
12,913,600
761,516,201
3,377,367
18,463,759
74,090,027
78,173,039
195,851,452
423,542,675
24,613,734
796,270,927
277,803,459
75,457,297
209,938,489
321,260,443
117,900,508
1,002,360,196
Up to 1
month
One to
three
months
Three
months to
one year
One year
to five
years
Over five
years
Total
EGP Thousands
3,579,434
47,230,473
8,161
821,482
-
65,858,750
15,531
338,609
-
167,856,018
72,392
971,984
-
282,414,105
2,697,474
6,158,164
-
11,079,361
-
1,787,943
3,579,434
574,438,707
2,793,558
10,078,182
51,639,550
66,212,890
168,900,394
291,269,743
12,867,304
590,889,881
147,046,643 103,639,656
142,239,730
272,824,348
113,525,774
779,276,151
Dec.31, 2023
Financial liabilities
Due to banks
Due to customers
Issued debt instruments
Other loans
Total liabilities (contractual
and non contractual matu-
rity dates)
Total financial assets (con-
tractual and non contrac-
tual maturity dates)
Dec.31, 2022
Financial liabilities
Due to banks
Due to customers
Issued debt instruments
Other loans
Total liabilities (contractual
and non contractual matu-
rity dates)
Total financial assets
(contractual and non con-
tractual maturity dates)
• Maintaining an active presence in global money markets to enable this to happen.
• Maintaining a diverse range of funding sources with back-up facilities
• Monitoring balance sheet liquidity and advances to core funding ratios against internal and CBE regulations.
• Managing the concentration and profile of debt maturities.
The disclosed figures cannot be compared with the corresponding items in the financial statements, as they include the principal amount and related interest.
Assets available to meet all of the liabilities and to cover outstanding loan commitments include cash, due from CBE and due
from banks, treasury bills, other government notes , loans and advances to banks and customers.
Monitoring and reporting takes the form of cash flow measurement and projections for the next day, week and month respec-
tively, as these are key periods for liquidity management. The starting point for those projections is an analysis of the contractual
maturity of the financial liabilities and the expected collection date of the financial assets.
In the normal course of business, a proportion of customer loans contractually repayable within one year will be extended. In
addition, debt instrument and treasury bills and other governmental notes have been pledged to secure liabilities. The Bank
would also be able to meet unexpected net cash outflows by selling securities and accessing additional funding sources.
3.3.2. Funding approach
Sources of liquidity are regularly reviewed jointly by the bank’s Assets & Liabilities Management Department and Consumer
Banking to maintain a wide diversification by currency, provider, product and term.
236 • CIB Annual Report • 2023
2023 • CIB Annual Report • 237
Financial Statements • Consolidated • 3.3.4. Derivative cash flows
The Bank’s derivatives include:
Foreign exchange derivatives: exchange traded options and over-the-counter (OTC) ,exchange traded forwards currency options
that will be settled on a gross basis interest rate derivatives: interest rate swaps, forward rate agreements, OTC and exchange
traded interest rate options, other interest rate contracts and exchange traded futures .
The table below analyses the Bank’s derivative undiscounted financial liabilities into maturity groupings based on the remaining
period of the balance sheet to the contractual maturity date will be settled on a net basis. The amounts disclosed in the table are
the contractual undiscounted cash flows:
Up to 1
month
One to
three
months
Three
months to
one year
One year
to five
years
EGP Thousands
Over five
years
Total
Dec.31, 2023
Liabilities
Derivatives financial
instruments
Foreign exchange derivatives
Interest rate derivatives
Total
Total as of Dec. 31, 2022
Off balance sheet items
22,199
-
22,199
215,085
16,822
-
16,822
4,667
6,895
-
6,895
-
-
95,018
95,018
-
-
-
-
-
45,916
95,018
140,934
219,752
Dec.31, 2023
Letters of credit, guarantees and other commitments
Total
Total as of Dec. 31, 2022
EGP Thousands
Up to 1
year
112,655,172
112,655,172
78,378,459
1-5 years Over 5 years
13,826,592
48,169,918
13,826,592
48,169,918
10,409,540
46,408,459
Total
174,651,682
174,651,682
135,196,458
Dec.31, 2023
Credit facilities commitments
Total
Total as of Dec. 31, 2022
Up to 1
year
4,296,934
4,296,934
1,818,133
1-5 years
1,078,987
1,078,987
5,259,267
Total
5,375,921
5,375,921
7,077,400
3.4. Fair value of financial assets and liabilities
3.4.1. Financial instruments not measured at fair value
The table below summarizes the book value and fair value of the financial assets and liabilities not presented on the Bank’s
balance sheet at their fair value.
Financial assets
Gross due from banks
Gross loans and advances to banks
Gross loans and advances to customers
Financial investments:
Financial Assets at Amortized cost
Total financial assets
Financial liabilities
Due to banks
Due to customers
Issued debt instruments
Other loans
Total financial liabilities
Book value
Dec.31, 2023 Dec.31, 2022
Fair value
Dec.31, 2023 Dec.31, 2022
231,087,402
823,739
266,375,398
133,906,112
2,988,410
219,746,382
231,713,694
823,739
263,012,927
134,627,973
2,988,410
219,163,469
38,539,488
536,826,027
34,603,597
391,244,501
36,709,182
532,259,542
33,813,552
390,593,404
12,458,003
677,237,479
3,073,349
12,483,907
705,252,738
3,496,698
531,616,550
2,456,607
7,978,975
545,548,830
12,783,893
681,407,303
3,074,203
12,613,487
709,878,886
3,502,732
534,738,218
2,461,042
7,981,357
548,683,349
The fair value is considered in the previous note from the second and third level in accordance with the fair value standard
Due from banks
The fair value of floating rate placements and overnight deposits is their carrying amount. The estimated fair value of floating
interest bearing deposits is based on discounted cash flows using prevailing money-market interest rates for debts with similar
credit risk and similar maturity date.
Fair values of financial instruments
The following table provides the fair value measurement hierarchy of the assets and liabilities according to EAS.
Quantitative disclosures fair value measurement hierarchy for assets as at 31 December 2023:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing
the asset or liability,assuming that market participants act in their best economic interest.A fair value measurement of a non-
financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and
best use or by selling it to another market participant that would use the asset in its highest and best use. All assets and liabilities
for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described
as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
• Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the bank can access at the
measurement date.
• Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
or indirectly.
• Level 3 - Unobservable inputs for the asset or liability.
Fair value measurement using
Date of
Valuation
Total
EGP Thousands
Quoted
prices
in active
markets
(Level 1)
Significant
observable
inputs
(level 2)
Valuation
techniques
(level 3)
31-Dec-23
233,125,234
233,125,234
114,973,913
114,973,913
118,151,321
118,151,321
-
-
31-Dec-23
31-Dec-23
31-Dec-23
31-Dec-23
31-Dec-23
1,105,148
140,934
1,246,082
36,709,182
823,739
263,012,927
300,545,848
31-Dec-23
31-Dec-23
31-Dec-23
3,074,203
12,613,487
681,407,303
697,094,993
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,105,148
140,934
1,246,082
36,709,182
-
-
36,709,182
-
823,739
263,012,927
263,836,666
3,074,203
12,613,487
-
15,687,690
-
-
681,407,303
681,407,303
Dec.31, 2023
Measured at fair value:
Financial assets
Financial Assets at Fair Value through OCI
Total
Derivative financial instruments:
Financial assets
Financial liabilities
Total
Assets for which fair values are disclosed:
Financial Assets at Amortized cost
Loans and advances to banks
Loans and advances to customers
Total
Liabilities for which fair values are
disclosed:
Issued debt instruments
Other loans
Due to customers
Total
238 • CIB Annual Report • 2023
2023 • CIB Annual Report • 239
Financial Statements • Consolidated • Fair value measurement using
EGP Thousands
Date of
Valuation
Total
Quoted
prices
in active
markets
(Level 1)
Significant
observable
inputs
(level 2)
Valuation
techniques
(level 3)
3.5 Capital management
For capital management purposes, the Bank’s capital includes total equity as reported in the balance sheet plus some other
elements that are managed as capital. The Bank manages its capital to ensure that the following objectives are achieved:
Complying with the legally imposed capital requirements in Egypt.
•
• Protecting the Bank’s ability to continue as a going concern and enabling the generation of yield for shareholders and other
parties dealin with the bank.
• Maintaining a strong capital base to enhance growth of the Bank’s operations.
31-Dec-22
204,020,733
204,020,733
142,101,346
142,101,346
61,919,387
61,919,387
-
-
Capital adequacy and the use of regulatory capital are monitored by the Bank’s management, employing techniques based on
the guidelines developed by the Basel Committee as implemented by the banking supervision unit in the Central Bank of Egypt.
Dec.31, 2022
Measured at fair value:
Financial assets
Financial Assets at Fair value through OCI
Total
Derivative financial instruments
Financial assets
Financial liabilities
Total
Assets for which fair values are disclosed:
Amortized cost
Loans and advances to banks
Loans and advances to customers
Total
Liabilities for which fair values are
disclosed:
Issued debt instruments
Other loans
Due to customers
Total
31-Dec-22
31-Dec-22
1,939,961
219,752
2,159,713
31-Dec-22
31-Dec-22
31-Dec-22
33,813,552
2,988,410
219,163,469
255,965,431
31-Dec-22
31-Dec-22
31-Dec-22
2,461,042
7,981,357
534,738,218
545,180,617
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,939,961
219,752
2,159,713
33,813,552
-
-
33,813,552
-
2,988,410
219,163,469
222,151,879
2,461,042
7,981,357
-
10,442,399
-
-
534,738,218
534,738,218
Fair value of financial assets and liabilities
Loans and advances to banks
Loans and advances to banks are represented in loans that do not consider bank placing. The expected fair value of the loans
and advances represents the discounted value of future cash flows expected to be collected. Cash flows are discounted using
the current market rate to determine fair value.
Loans and advances to customers
Loans and advances are net of ECL. The estimated fair value of loans and advances represents the discounted amount of estimated
future cash flows expected to be received. Expected cash flows are discounted at current market rates to determine fair value.
Financial Investments
Investment securities include financial assets at amortized cost while fair value through OCI is being revaluated. Fair value for
amortized cost assets is based on market prices. If this data is not available, the fair value is estimated using financial market
prices for traded securities with similar credit characteristics, maturity dates, and rates.
Due to other banks and customers
The estimated fair value of deposits with no stated maturity, which includes non-interest-bearing deposits, is the amount
repayable on demand. The estimated fair value of fixed interest-bearing deposits and other borrowings not quoted in an active
market is based on discounted cash flows using interest rates for new debts with similar maturity date.
The required data is submitted to the Central Bank of Egypt on a monthly basis.
Central Bank of Egypt requires the following:
• Maintaining EGP 5 billion as a minimum requirement for the issued and paid-in capital, noting that at the reporting date the
issued and paid up capital has reached EGP 30.2 billion.
• Maintaining a minimum level of capital adequacy ratio of 12.75%, calculated as the ratio between total value of the capital
elements, and the risk-weighted assets and contingent liabilities of the Bank (credit risk, market risk and opertional risk).
While taking into consideration the conservation buffer.
The numerator of the capital adequacy ratio consists of the following two segments:
Tier one:
Tier one comprises of paid-in capital, retained earnings and reserves resulting from the distribution of profits except the banking
risk reserve, interim profits, fair value through other comprehensive income reserve and deducting some items such as previously
recognized goodwill, any retained losses and deferred tax assets
Tier two:
Tier two consists of stage one of Expected Credit Lossed (ECL) for debt instrument, loans and credit facilities capped by 1.25%
risk weighted assets and contingent liabilities ,subordinated loans with more than five years to maturity (amortizing 20% of its
carrying amount in each year of the remaining five years to maturity) and 45% of the increase in fair value than book value for the
investments in subsidiaries and associates.
When calculating the numerator of capital adequacy ratio, total amount of subordinated loans (deposits) should not exceed 50
% of Tier 1.
Assets risk weight scale ranging from zero to 400% is based on the counterparty risk to reflect the related credit risk scheme,
taking into considration the cash collatrals and local currency guarantees. Similar criteria are used for off balance sheet items
after applying conversion factors to reflect the nature of contingency and the potential loss of those amounts. The Bank has
complied with all local capital adequacy requirements for the current period.
240 • CIB Annual Report • 2023
2023 • CIB Annual Report • 241
Financial Statements • Consolidated • The tables below summarize the compositions of capital base , capital adequacy ratio and leverage ratio.
1. Capital Adequacy Ratio
Tier 1 capital
Share capital
Goodwill
Reserves
Retained Earnings (Losses)
Total deductions from tier 1 capital common equity
Net profit for the year
Total qualifying tier 1 capital
Tier 2 capital
Subordinated Loans
**Expected Credit Losses for loans , Credit facilities, contingent liabilities and debt
instruments - stage 1
Total qualifying tier 2 capital
Total capital 1+2
Risk weighted assets and contingent liabilities
Total credit risk
Total market risk
Total operational risk
Cross border over limit
Total
*Capital adequacy ratio (%)
EGP Thousands
Dec.31, 2023 Dec.31, 2022
30,195,010
-
30,800,441
332,888
(1,829,068)
24,254,227
83,753,498
29,825,134
(96,268)
21,337,273
261,557
(297,397)
12,364,059
63,394,358
12,057,970
7,874,520
4,281,122
3,712,734
16,339,092
100,092,590
11,587,254
74,981,612
343,408,395
-
36,038,665
2,060,413
381,507,473
26.2%
298,496,606
1,648,310
27,697,003
3,072,997
330,914,916
22.7%
*Based on consolidated financial statement figures and in accordance with Central Bank of Egypt regulation issued on 24 December 2012.
**Not more than 1.25% of total assets and contingent liabilities weighted by credit risk weights.
2. Leverage ratio
Total qualifying tier 1 capital
On-balance sheet items & derivatives
Off-balance sheet items
Total exposures
Percentage*
EGP Thousands
Dec.31, 2023 Dec.31, 2022
63,394,358
641,042,272
86,762,583
727,804,855
8.7%
83,753,498
856,118,571
106,722,210
962,840,781
8.7%
3. Critical accounting estimates andjudgments
The Bank makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year.
Estimates and judgments are continually evaluated and based on historical experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances and available information. Uncertainty about these assumptions and
estimates could result in outcomes that require adjustments to the carrying amount of assets or liabilities affected in future periods.
3.1. Fair value of derivatives
The fair value of financial instruments that are not quoted in active markets are determined by using valuation techniques. these valu-
ation techniques (as models) are validated and periodically reviewed by qualified personnel independent of the area that created them.
All models are certified before they are used, and models are calibrated to ensure that outputs reflect actual data and compara-
tive market prices. For practicality purposes, models use only observable data; however, areas such as credit risk (both own and
counterparty), volatilities and correlations require management to make estimates. Changes in assumptions about these factors
could affect reported fair value of financial instruments.
4. Segment analysis
By business segment
The Bank is divided into the following business segments:
• Corporate banking & SME’s: This includes current account activities, deposits, overdrafts, loans, credit facilities, and finan-
cial derivatives to large, medium, and small entities, currency and derivative products.
• Investment : Incorporating financial instruments, structured financing, corporate leasing, merger and acquisitions Information .
• Retail banking: incorporating private banking services, private customer current accounts, savings, deposits, investme
savings products, custody, credit and debit cards, consumer loans and mortgages.
• Assets and liabilities management –Including other banking business.
Inter-segment activities which is affected by the Bank’s normal course of business. Assets and liabilities of each segment include
operating assets and liabilities as displayed in the Financial Statements.
Dec.31, 2023
Net revenue according to busi-
ness segment *
Expenses according to busi-
ness segment
Profit before tax
Income tax
Profit for the year
Total assets
Total liabilities
Corporate
banking
SME’s Investments
EGP Thousands
Retail
banking
Asset Liability
Mangement
Total
23,243,897
6,953,542
7,821,971
16,358,868
8,388,368
62,766,646
(11,174,590)
(1,913,988)
(2,291,261)
(5,202,654)
(607,205)
(21,189,698)
12,069,307
(3,290,559)
8,778,748
202,130,053
287,279,101
5,039,554
(1,462,052)
3,577,502
8,211,322
60,305,027
5,530,710
(1,678,066)
3,852,644
271,690,860
11,156,214
(3,254,295)
7,901,919
57,840,618
- 369,256,762
7,781,163
(2,257,434)
5,523,729
294,993,246
27,383,743
41,576,948
(11,942,406)
29,634,542
834,866,099
744,224,633
*Based on consolidated financial statement figures and in accordance with Centeral Bank of Egypt regulation issued on 14 July 2015.
* Represents the net interest income and other income.
For December 2023 NSFR ratio record 253% (LCY 264% and FCY 229%), and LCR ratio record 1342% (LCY 2250% and FCY 175%).
For December 2022 NSFR ratio record 229% (LCY 239% and FCY 208%), and LCR ratio record 1086% (LCY 1291% and FCY 297%).
Dec.31, 2022
Net revenue according to busi-
ness segment
Expenses according to busi-
ness segment
Profit before tax
Income tax
Profit for the year
Total assets at 31 December
2022
Total liabilities at 31 Decem-
ber 2022
Corporate
banking
SME’s Investments
Retail
banking
Asset Liability
Mangement
Total
11,629,435
3,201,847
7,944,944
10,108,567
5,144,825
38,029,618
(8,192,459)
(1,491,815)
(278,474)
(4,179,967)
(3,379)
(14,146,094)
3,436,976
(1,134,070)
2,302,906
1,710,032
(554,919)
1,155,113
7,666,470
(2,487,830)
5,178,640
5,928,600
(1,923,877)
4,004,723
5,141,446
(1,668,440)
3,473,006
23,883,524
(7,769,136)
16,114,388
157,888,749
6,819,154
243,597,100
53,296,732
174,230,182
635,831,917
239,694,892
67,995,672
- 251,469,542
8,333,643
567,493,749
242 • CIB Annual Report • 2023
2023 • CIB Annual Report • 243
Financial Statements • Consolidated • 5. By geographical segment
7. Net fee and commission income
Dec.31, 2023
Revenue according to geographical segment
Expenses according to geographical segment
Profit before tax
Income tax
Profit for the year
Total assets
Total liabilities
Dec.31, 2022
Revenue according to geographical segment
Expenses according to geographical segment
Profit before tax
Income tax
Profit for the year
Total assets at 31 December 2022
Total liabilities at 31 December 2022
6. Net interest income
Interest and similar income
- Banks
- Clients
Total
Treasury bills, bonds and other governmental notes
Debt instruments at fair value through OCI and AC
Total
Interest and similar expense
- Banks
- Clients
Total
Repos
Other loans
Issued debt instruments
Total
Net interest income
Alex,
Delta &
Sinai
Cairo
8,531,843
52,412,050
(2,115,141)
(18,600,171)
6,416,702
33,811,879
(1,861,583)
(9,741,043)
4,555,119
24,070,836
776,593,063
45,036,445
558,474,448 151,824,454
Upper
Egypt
1,435,796
(25,997)
1,409,799
(409,004)
1,000,795
9,773,559
31,298,613
Alex,
Delta &
Sinai
Cairo
4,486,973
32,546,617
(1,547,224)
(12,119,363)
2,939,749
20,427,254
(953,972)
(6,779,801)
1,985,777
13,647,453
586,848,023
36,636,416
439,604,426 107,081,685
Upper
Egypt
758,580
(156,132)
602,448
(195,499)
406,949
9,747,543
19,101,653
EGP Thousands
Outside
Egypt
(CIB
Kenya)
386,957
(448,389)
(61,432)
69,224
7,792
3,463,032
2,627,118
Outside
Egypt
(CIB
Kenya)
237,448
(323,375)
(85,927)
160,136
74,209
2,599,935
1,705,985
Total
62,766,646
(21,189,698)
41,576,948
(11,942,406)
29,634,542
834,866,099
744,224,633
Total
38,029,618
(14,146,094)
23,883,524
(7,769,136)
16,114,388
635,831,917
567,493,749
EGP Thousands
Dec.31, 2023 Dec.31, 2022
30,018,930
36,650,367
66,669,297
32,950,513
4,408,569
104,028,379
(2,458,316)
(47,249,312)
(49,707,628)
(156,017)
(1,115,442)
(119,630)
(51,098,717)
52,929,662
5,345,778
19,936,711
25,282,489
28,823,013
1,618,199
55,723,701
(195,095)
(23,807,888)
(24,002,983)
(165,895)
(473,246)
(76,679)
(24,718,803)
31,004,898
Fee and commission income
Fee and commissions related to credit
Custody fee
Other fee
Total
Fee and commission expense
Other fee paid
Total
Net income from fee and commission
8. Dividend income
Financial assets at fair value through P&L
Financial assets at fair value through OCI
Total
9. Net trading income
Profit (Loss) from foreign exchange transactions
Profit (Loss) from forward foreign exchange deals revaluation
Profit (Loss) from interest rate swaps revaluation
Profit (Loss) from currency swap deals revaluation
Profit (Loss) from financial assets at fair value through P&L
Total
10. Administrative expenses
Staff costs
Wages and salaries
Social insurance
Other benefits
Other administrative expenses *
Total
*The expenses related to the activity for which the bank obtains a commodity or service, donations and depreciation.
EGP Thousands
Dec.31, 2023 Dec.31, 2022
3,286,402
551,324
5,212,198
9,049,924
1,885,109
241,455
3,428,518
5,555,082
(3,611,699)
(3,611,699)
5,438,225
(2,476,945)
(2,476,945)
3,078,137
EGP Thousands
Dec.31, 2023 Dec.31, 2022
-
234,010
234,010
1,600
50,811
52,411
EGP Thousands
Dec.31, 2023 Dec.31, 2022
4,096,288
(60,945)
291,504
(401,470)
17,562
3,942,939
1,617,694
716,231
482
421,130
(5,880)
2,749,657
EGP Thousands
Dec.31, 2023 Dec.31, 2022
(5,339,030)
(354,136)
(282,763)
(4,100,084)
(10,076,013)
(3,696,111)
(157,565)
(214,640)
(3,303,313)
(7,371,629)
244 • CIB Annual Report • 2023
2023 • CIB Annual Report • 245
Financial Statements • Consolidated • 11. Other operating income (expenses)
15. Cash and balances at the central bank
EGP Thousands
Dec.31, 2023 Dec.31, 2022
(756,492)
1,663
(2,838,761)
(2,997,150)
(6,590,740)
(1,089,939)
2,208
(1,855,407)
(2,137,000)
(5,080,138)
EGP Thousands
Dec.31, 2023 Dec.31, 2022
(2,311,867)
47,234
(2,005,448)
(4,270,081)
(1,043,776)
(8,395)
(532,771)
(1,584,942)
EGP Thousands
Dec.31, 2023 Dec.31, 2022
41,653,373
22.50%
9,372,009
4,790,895
(7,458,312)
5,237,814
11,942,406
28.67%
23,941,286
22.50%
5,386,789
3,853,758
(6,345,343)
4,873,932
7,769,136
32.45%
EGP Thousands
Dec.31, 2023 Dec.31, 2022
28,763,709
(110,239)
(2,876,371)
25,777,099
3,001,981
8.59
16,124,903
(110,239)
(1,612,490)
14,402,174
3,001,981
4.80
3,038,040
8.48
3,038,040
4.74
Profits (losses) from revaluation of non-trading assets and liabilities by FCY
Profits from selling property and equipment
Release (charges) of other provisions
Other income (expenses)
Total
12. Impairment release (charges) for credit losses
Loans and advances to customers and banks
Due from banks impairment provision
Financial securities
Total
13. Adjustments to calculate the effective tax rate
Profit before tax
Tax rate
Income tax based on accounting profit
Add / (Deduct)
Non-deductible expenses
Tax exemptions
Withholding tax
Income and Deferred tax
Effective tax rate
14. Earnings per share
Net profit for the year, available for distribution
Board members’ bonus*
Staff profit sharing*
Profits attributable to shareholders
Weighted average number of shares
Basic earning per share
By issuance of ESOP earning per share will be:
Average number of shares including ESOP shares
Diluted earning per share
* Proposed amounts are subject to change according to GAM decision.
Based on separate financial statement profits.
246 • CIB Annual Report • 2023
Cash
Obligatory reserve balance with CBE
- Current accounts
Total
Non-interest bearing balances
16. Due from banks
Current accounts
Deposits
Expected credit losses
Total
Central banks
Local banks
Foreign banks
Total
Non-interest bearing balances
Floating interest bearing balances
Fixed interest bearing balances
Total
Current balances
Non-Current balances
Total
17. Treasury bills and Other Governmental notes
91 Days maturity
182 Days maturity
273 Days maturity
364 Days maturity
Unearned interest
Total Treasury bills
Repos - Treasury bills
Net
Other Governmental notes
Total Treasury bills and other governmental notes
Governmental bonds
Governmental bonds
Repos - Treasury bonds
Net
EGP Thousands
Dec.31, 2023 Dec.31, 2022
7,491,636
6,998,942
64,396,185
71,887,821
71,887,821
40,493,607
47,492,549
47,492,549
EGP Thousands
Dec.31, 2023 Dec.31, 2022
4,750,675
226,336,727
(2,158)
231,085,244
198,129,519
7,418,937
25,536,788
231,085,244
2,491,343
98,470,020
130,123,881
231,085,244
226,451,466
4,633,778
231,085,244
2,920,513
130,985,599
(49,392)
133,856,720
86,487,886
25,816,767
21,552,067
133,856,720
1,768,912
69,663,117
62,424,691
133,856,720
130,145,210
3,711,510
133,856,720
EGP Thousands
Dec.31, 2023 Dec.31, 2022
718,500
6,619,200
9,998,675
51,590,470
(4,911,765)
64,015,080
(611,377)
63,403,703
50,000,000
113,403,703
10,575
656,150
7,515,700
54,502,250
(2,878,502)
59,806,173
(659,349)
59,146,824
-
59,146,824
Dec.31, 2023
Financial Assets at
Fair Value through OCI
EGP Thousands
Dec.31, 2022
Financial Assets at
Fair Value through OCI
87,442,849
-
87,442,849
124,344,205
(3,711,489)
120,632,716
2023 • CIB Annual Report • 247
Financial Statements • Consolidated • 18. Loans and advances to banks, net
Time loans
ECL
Net
Current balances
Net
Analysis for ECL of loans and advances to banks
Beginning balance
Released (charged) during the year
Ending balance
19. Loans and advances to customers, net
Individual
- Overdraft
- Credit cards
- Personal loans
- Mortgage loans
Total 1
Corporate and Business Banking
- Overdraft
- Direct loans
- Syndicated loans
- Other loans
Total 2
Total Loans and advances to customers (1+2)
Less:
Unamortized bills discount
Unamortized syndicated loans discount
ECL
Suspended credit account
Net loans and advances to customers
Distributed to
Current balances
Non-current balances
Total
EGP Thousands
Dec.31, 2023
Dec.31, 2022
823,739
(1,291)
822,448
822,448
822,448
2,988,410
(10,213)
2,978,197
2,978,197
2,978,197
Dec.31, 2023
EGP Thousands
Dec.31, 2022
(10,213)
8,922
(1,291)
(2,118)
(8,095)
(10,213)
Dec.31, 2023
EGP Thousands
Dec.31, 2022
2,927,620
10,297,598
42,552,132
4,348,982
60,126,332
55,047,153
99,455,837
51,311,552
434,524
206,249,066
266,375,398
(509,523)
(145,003)
(29,237,737)
(1,497,199)
234,985,936
2,132,876
7,636,331
40,374,834
3,399,858
53,543,899
42,595,303
78,759,856
44,722,871
124,453
166,202,483
219,746,382
(678,795)
(221,018)
(24,536,712)
(709,985)
193,599,872
126,122,466
108,863,470
234,985,936
99,866,973
93,732,899
193,599,872
Analysis of the expected credit losses on loans and advances to customers by product during the year is as follows:
Beginning balance
EGP Thousands
Dec.31, 2023
Individual Loans
Overdraft Credit cards
Personal
loans
Mortgage
loans
Beginning balance
Released (charged) during the year
Written off during the year
Recoveries during the year
Ending balance
(7,131)
663
1,960
(1,009)
(5,517)
(321,989)
(402,460)
59,027
(58,102)
(723,524)
(1,201,774)
(337,815)
177,095
(66,308)
(1,428,802)
(63,242)
(25,362)
3,332
(180)
(85,452)
Total
(1,594,136)
(764,974)
241,414
(125,599)
(2,243,295)
Dec.31, 2023
Corporate and
Business Banking
Beginning balance
Released (charged) during the year
Written off during the year
Recoveries during the year
Foreign currencies translation
differences
Ending balance
Overdraft Direct loans
(2,516,317)
205,563
2,529
-
(15,277,168)
(2,270,797)
2,234,286
(51,666)
Syndicated
loans
(5,140,284)
520,032
-
-
Other loans
Total
(8,807)
(10,613)
-
-
(22,942,576)
(1,555,815)
2,236,815
(51,666)
(506,322)
(3,002,315)
(1,172,563)
-
(4,681,200)
(2,814,547)
(18,367,660)
(5,792,815)
(19,420)
(26,994,442)
Individual Loans
Overdraft Credit cards
Personal
loans
Mortgage
loans
Beginning balance
Released (charged) during the year
Write off during the year
Recoveries during the year
Ending balance
(10,115)
1,213
2,190
(419)
(7,131)
(305,005)
(19,585)
52,918
(50,317)
(321,989)
(817,525)
(502,625)
172,195
(53,819)
(1,201,774)
(49,814)
(13,551)
123
-
(63,242)
Dec.31, 2022
Total
(1,182,459)
(534,548)
227,426
(104,555)
(1,594,136)
Dec.31, 2022
Corporate and
Business Banking
Beginning balance
Released (charged) during the year
Write off during the year
Recoveries during the year
foreign currencies translation dif-
ferences
Ending balance
Overdraft Direct loans
(1,650,580)
(233,631)
5,145
-
(10,896,531)
(1,044,899)
980,540
(9,662)
Syndicated
loans
(4,180,998)
779,409
-
-
Other loans
Total
(6,795)
(2,012)
-
-
(16,734,904)
(501,133)
985,685
(9,662)
(637,251)
(4,306,616)
(1,738,695)
-
(6,682,562)
(2,516,317)
(15,277,168)
(5,140,284)
(8,807)
(22,942,576)
248 • CIB Annual Report • 2023
2023 • CIB Annual Report • 249
Financial Statements • Consolidated • 20. Derivative financial instruments
20.1 Derivatives
The Bank uses the following financial derivatives for non hedging purposes.
20.2. Hedging derivatives
Fair value hedge
Forward contracts represent commitments to buy foreign and local currencies including unexecuted spot transactions. Future
contracts for foreign currencies and/or interest rates represent contractual commitments to receive or pay net on the basis of
changes in foreign exchange rates or interest rates, and/or to buy/sell foreign currencies or financial instruments in a future date
with a fixed contractual price under active financial market.
Credit risk is considered low, and future interest rate contract represents future exchange rate contracts negotiated for case by
case, These contracts require financial settlements of any differences in contractual interest rates and prevailing market interest
rates on future interest rates on future dates based on contractual amount (nominal value) pre agreed upon.
Foreign exchange and/or interest rate swap represents commitments to exchange cash flows, resulting from these contracts are
exchange of currencies or interest ( fixed rate versus variable rate for example) or both (meaning foreign exchange and interest
rate contracts). Contractual amounts are not exchanged except for some foreign exchange contracts.
Credit risk is represented in the expected cost of foreign exchange contracts that takes place if other parties default to fulfill their
liabilities. This risk is monitored continuously through comparisons of fair value and contractual amount, and in order to control
the outstanding credit risk, the Bank evaluates other parties using the same methods as in borrowing activities.
Options contracts in foreign currencies and/or interest rates represent contractual agreements for the buyer (issuer) to the seller
(holders) as a right not an obligation whether to buy (buy option) or sell (sell option) at a certain day or within certain year for
a predetermined amount in foreign currency or interest rate. Options contracts are either traded in the market or negotiated
between The Bank and one of its clients (Off balance sheet). The Bank is exposed to credit risk for purchased options contracts
only and in the line of its book cost which represent its fair value.
The contractual value for some derivatives options is considered a base to analyze the realized financial instruments on the
balance sheet, but it doesn’t provide an indicator for the projected cash flows of the fair value for current instruments, and those
amounts don’t reflects credit risk or interest rate risk.
Derivatives in the Bank’s benefit that are classified as (assets) are conversely considered (liabilities) as a result of the changes in
foreign exchange prices or interest rates related to these derivatives. Contractual / expected total amounts of financial deriva-
tives can fluctuate from time to time as well as the range through which the financial derivatives can be in benefit for the Bank or
conversely against its benefit and the total fair value of the financial derivatives in assets and liabilities. Hereunder are the fair values
of the booked financial derivatives:
20.1.1. For trading derivatives
Foreign currencies derivatives
- Forward foreign exchange contracts
- Swap deals
Total (1)
20.1.2. Fair value hedge
Interest rate derivatives
Interest rate derivatives
Total (2)
20.1.3. Cash flow hedge
Dec.31, 2023
Dec.31, 2022
Notional
amount
8,573,448
74,891,979
Assets
Liabilities
578,528
49,037
627,565
37,765
8,151
45,916
Notional
amount
9,886,585
2,081,255
Assets
Liabilities
823,287
440,559
1,263,846
218,296
1,456
219,752
15,446,550
40,482
40,482
95,018
95,018
12,520,160
30,480
30,480
-
-
Cash flow hedge
Total (3)
Total financial derivatives (1+2+3)
3,089,310
437,101
437,101
1,105,148
-
-
140,934
7,423,020
645,635
645,635
1,939,961
-
-
219,752
The Bank uses interest rate swap contracts to cover part of the risk of potential increase in fair value of its fixed rate customer
deposits in foreign currencies. Net derivative value resulting from the related hedging instruments is EGP 382,565 thousand at
the end of December 31, 2023 against EGP 676,115 thousand at December 31, 2022, resulting in profits from hedging instruments
at December 31, 2023 of EGP 293,550 thousand against profits of EGP 623,945 thousand at December 31, 2022. Profits arose from
the hedged items at December 31, 2023 reached EGP 84,228 thousand against Profits EGP 13,191 thousand at December 31, 2022.
21. Movement of financial investment securities:
Beginning balance as of 2022
Addition
Disposals
Profit (losses) from fair value difference
Exchange revaluation differences for foreign financial assets
Ending Balance as of Dec.31, 2022
Beginning balance as of 2023
Addition
Disposals
Profit (losses) from fair value difference
Exchange revaluation differences for foreign financial assets
Ending Balance as of Dec.31, 2023
21 .Financial investments securities
Financial Assets at Fair
Value through OCI
EGP Thousands
Financial Assets at
Amortized cost
193,198,894
45,665,232
(26,130,169)
(15,383,080)
6,669,856
204,020,733
20,547,465
19,908,223
(6,738,937)
-
808,009
34,524,760
Financial Assets at Fair
Value through OCI
Financial Assets at
Amortized cost
204,020,733
129,073,519
(98,945,138)
(5,814,834)
4,790,954
233,125,234
34,524,760
9,290,232
(6,125,452)
-
651,479
38,341,019
Investments listed in the market
Governmental bonds
Securitized and other bonds
Equity instruments
Sukuk
Investments not listed in the market
Treasury bills and Other Governmental notes
Securitized and other bonds
Equity instruments
Mutual funds
Total
Dec.31, 2023
Financial Assets at Fair
Value through OCI
Financial Assets at
Amortized cost
Total
EGP Thousands
87,442,849
26,535,662
121,184
874,218
113,403,703
3,299,797
1,038,885
408,936
233,125,234
37,905,528
363,647
-
-
125,348,377
26,899,309
121,184
874,218
-
71,844
-
-
38,341,019
113,403,703
3,371,641
1,038,885
408,936
271,466,253
250 • CIB Annual Report • 2023
2023 • CIB Annual Report • 251
Financial Statements • Consolidated • EGP Thousands
22. Investments in associates
31-Dec-2022
Investments listed in the market
Governmental bonds
Securitized and other bonds
Equity instruments
Sukuk
Investments not listed in the market
Treasury bills and Other Governmental notes
Securitized and other bonds
Equity instruments
Mutual funds
Total
Financial Assets at Fair
Value through OCI
Financial Assets at
Amortized cost
Total
120,632,716
19,536,994
257,586
1,674,050
59,146,824
1,709,429
716,432
346,702
204,020,733
33,197,277
-
-
-
153,829,993
19,536,994
257,586
1,674,050
-
1,327,483
-
-
59,146,824
3,036,912
716,432
346,702
34,524,760 238,545,493
Classification and measurement of financial assets and financial liabilities:
The following table shows the financial assets and the net financial liabilities according to the business model classification:
Dec.31, 2023
Cash and balances with central bank
Due from banks
Treasury bills and Other Governmental notes
Loans and advances to customers, net
Loans and advances to banks, net
Derivative financial instruments
Financial Assets at Fair value through OCI
Amortized cost
Total 1
Due to banks
Due to customers
Derivative financial instruments
Issued debt instruments
Other loans
Other Provisions
Total 2
Debt
financial
Assets at
Fair value
through OCI
Equity
financial
Assets at
Fair value
through OCI
Financial
Assets/
Liabilities at
Fair value
through P&L
Amortized
cost
71,887,821
231,085,244
-
234,985,936
822,448
-
-
38,341,019
-
-
113,403,703
-
-
-
118,152,526
-
577,122,468 231,556,229
-
-
-
-
-
-
-
12,458,003
677,237,479
-
3,073,349
12,483,907
11,095,089
716,347,827
-
-
-
-
-
-
1,569,005
-
1,569,005
-
-
-
-
-
-
-
-
-
-
-
-
1,105,148
-
-
1,105,148
-
-
140,934
-
-
-
140,934
Total book
value
71,887,821
231,085,244
113,403,703
234,985,936
822,448
1,105,148
119,721,531
38,341,019
811,352,850
12,458,003
677,237,479
140,934
3,073,349
12,483,907
11,095,089
716,488,761
21.1. Profits (Losses) on financial investments
Profit (Loss) from selling FVOCI financial instruments
Profit from selling shares of associates
Released (Impairment) for invesment in associates
Total
Dec.31, 2023 Dec.31, 2022
205,344
7,466
9,000
221,810
1,162,195
-
-
1,162,195
Company’s
country
Company’s
assets
Company’s
liabilities
(without
equity)
Company’s
revenues
Company’s
net profit
(loss)
Investment
book value Stake %
Egypt
Egypt
1,508,346
30,031
1,538,377
1,364,689
30,620
1,395,309
56,196
48,038
104,234
(89,746)
(20,097)
(109,843)
88,711
27,268
115,979
37.00
39.34
Dec.31, 2023
-TCA Properties
- Al Ahly Computer
Total
EGP Thousands
Company’s
country
Company’s
assets
Company’s
liabilities
(without
equity)
Company’s
revenues
Company’s
net profit
(loss)
Investment
book value Stake %
EGP Thousands
Egypt
Egypt
Egypt
1,511,066
42,494
187,036
1,251,615
19,534
100,492
21,503
50,892
127,246
(72,446)
(188)
42,413
131,555
29,270
25,237
37.00
39.34
14.99
Egypt
779,891
833,180
356,164
(146,617)
-
30.00
2,520,487
2,204,821
555,805
(176,838)
186,062
Dec.31, 2022
-TCA Properties
- Al Ahly Computer
- Fawry Plus
- International Co.
for Security and
Services (Falcon)
Total
23. Other assets
Accrued revenues
Prepaid expenses
Advances to purchase fixed assets
Accounts receivable (after deducting the provision)*
Assets acquired as settlement of debts
Insurance
Gross
Impairment of other assets
Net
*A provision has been created for other assets with amount EGP 17 million.
EGP Thousands
Dec.31, 2023 Dec.31, 2022
13,018,038
903,169
1,906,547
3,044,238
49,019
51,775
18,972,786
-
18,972,786
11,437,147
572,509
1,342,568
1,035,654
124,098
49,647
14,561,623
(40,196)
14,521,427
This item includes other assets that are not classified under specific items of balance sheet assets, such as: accrued income and
prepaid expenses, custodies, debit accounts under settlement and any balance that has no place in any other asset category.
252 • CIB Annual Report • 2023
2023 • CIB Annual Report • 253
Financial Statements • Consolidated • s
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254 • CIB Annual Report • 2023
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25. Due to banks
Current accounts
Deposits
Total
Central banks
Local banks
Foreign banks
Total
Non-interest bearing balances
Floating bearing interest balances
Fixed interest bearing balances
Total
Current balances
26. Due to customers
Demand deposits
Time deposits
Certificates of deposit
Saving deposits
Other deposits
Total
Corporate deposits
Individual deposits
Total
Non-interest bearing balances
Floating interest bearing balances
Fixed interest bearing balances
Total
Current balances
Non-current balances
Total
EGP Thousands
Dec.31, 2023 Dec.31, 2022
2,308,193
10,149,810
12,458,003
618,597
16,626
11,822,780
12,458,003
1,976,181
553,295
9,928,527
12,458,003
12,458,003
2,666,251
830,447
3,496,698
460,169
45,065
2,991,464
3,496,698
2,376,326
573,860
546,512
3,496,698
3,496,698
EGP Thousands
Dec.31, 2023 Dec.31, 2022
255,597,422
117,608,870
188,832,842
107,598,758
7,599,587
677,237,479
306,678,764
370,558,715
677,237,479
121,939,696
5,930,188
549,367,595
677,237,479
483,660,140
193,577,339
677,237,479
197,948,359
106,969,176
128,342,125
91,986,230
6,370,660
531,616,550
262,902,380
268,714,170
531,616,550
95,060,092
7,936,950
428,619,508
531,616,550
396,058,202
135,558,348
531,616,550
In 2023, Due to customers contains an amount of EGP 1,931 million representing guarantees of irrevocable commitments for
documentary credits - export compared to EGP 2,705 million in 2022. The fair value of these deposits is approximately their present value.
27. Issued debt instruments
Fixed rate bonds with 5 years maturity
Green bonds (USD)
Total
Non current balances
Interest rate
Dec.31, 2023 Dec.31, 2022
Fixed rate
Fixed rate
EGP Thousands
Dec.31, 2023 Dec.31, 2022
3,073,349
3,073,349
3,073,349
2,456,607
2,456,607
2,456,607
2023 • CIB Annual Report • 255
Financial Statements • Consolidated •
28 .Other loans
British International Investment subordinated loan
Environmental Compliance Project (ECO)
Interest rate
Floating rate
Fixed rate
Agricultural Research and Development Fund (ARDF)
Fixed rate
Egyptian Pollution Abatement Program (EPAP)
European Bank for Reconstruction and Development
(EBRD) subordinated Loan
International Finance Corporation (IFC) subordi-
nated Loan
Total
Floating /
Fixed rate
EGP Thousands
Loan
duration
10 years
3-5 years*
Less than 1
year*
Due within
one year Dec.31, 2023 Dec.31, 2022
-
315
2,879,244
525
2,644,356
840
200,619
200,619
16,000
3-5 years*
37,506
224,793
87,614
Floating rate
10 years
Floating rate
10 years
-
-
4,588,784
2,561,585
4,589,942
2,668,580
238,440
12,483,907
7,978,975
Authorized Capital
Issued and paid up capital
Number of outstanding shares in thousnds
31 Equity
31.1 Capital
The authorized capital is EGP 100 billion according to the extraordinary general assembly decision on 20 March 2023.
On January 11, 2023 issued and Paid in Capital increased by an amount of EGP 165,429 thousand to reach EGP 29,990,563 thou-
sand, according to BOD Meeting decision on September 28 ,2022, by issuance of 13th tranche for E.S.O.P program.
On June 8, 2023 issued and Paid in Capital increased by an amount of EGP 204,447 thousand to reach EGP 30,195,010 thousand,
according to BOD Meeting decision on January 24 ,2023, by issuance of 14th tranche for E.S.O.P program.
Interest rates on variable-interest subordinated loans are determined in advance every 3 months.
*Represents the date of loan repayment to the lending agent.
Par value per share
EGP Thousands
Dec.31, 2023 Dec.31, 2022
100,000,000
30,195,010
3,019,501
50,000,000
29,825,134
2,982,513
Dec.31, 2023 Dec.31, 2022
EGP
10
EGP
10
29. Other liabilities
Accrued interest payable
Accrued expenses
Accounts payable
Other credit balances
Total
30. Other provisions
Dec.31, 2023
Provision for legal claims*
Provision for contingent
Provision for other claim**
Total
Dec.31, 2022
Provision for legal claims
Provision for contingent
Provision for other claim
Total
Dec.31, 2023
EGP Thousands
Dec.31, 2022
3,807,422
2,554,726
11,440,035
537,282
18,339,465
2,084,649
1,686,588
7,522,203
313,472
11,606,912
31.2 Reserves
According to The Bank status 5% of net profit is used to increase the legal reseve to reaches 50% of The Bank’s issued and
paid in capital.
Central Bank of Egypt concurrence for usage of special reserve is required.
Beginning
balance
7,456
6,675,694
383,522
7,066,672
Charged
during
the year
Exchange
revaluation
difference
1,400
2,817,520
2,221
2,821,141
448
1,179,866
32,812
1,213,126
Net utilized
/ recovered
during
the year
(2,058)
(2,512)
(1,280)
(5,850)
EGP Thousands
Provisions
no longer
used
Ending
balance
7,246
-
10,670,568
-
-
417,275
- 11,095,089
EGP Thousands
Beginning
balance
7,184
3,205,105
329,173
3,541,462
Charged
during
the year
Exchange
revaluation
difference
-
2,124,575
8,960
2,133,535
656
1,346,014
48,303
1,394,973
Net utilized
/ recovered
during
the year
Provisions
no longer
used
(212)
-
(2,914)
(3,126)
(172)
-
-
(172)
Ending
balance
7,456
6,675,694
383,522
7,066,672
* A provision for legal cases that are expected to generate losses has been created.
** To face the potential risk of banking operations.
256 • CIB Annual Report • 2023
2023 • CIB Annual Report • 257
Financial Statements • Consolidated • 32. Deferred tax assets (Liabilities)
Deferred tax assets and liabilities are attributable to the following:
Details of the outstanding tranches are as follows:
Fixed assets (depreciation)
Other provisions (excluded loan loss, contingent liabilities and income tax
provisions)
Change in fair value of investments through OCI
Other Balance Sheet Revaluation
Other investments impairment
Reserve for employee stock ownership plan (ESOP)
Interest rate swaps revaluation
Trading investment revaluation
Forward foreign exchange deals revaluation
Balance
Deferred tax assets (Liabilities)
Movement of Deferred Tax Assets and Liabilities:
Beginning Balance
Additions / disposals through OCI
Additions / disposals through P&L
Ending Balance
EGP Thousands
Assets (Liabilities) Assets (Liabilities)
Dec.31, 2022
Dec.31, 2023
(83,567)
782,907
1,399,815
(1,183,449)
395,979
334,352
(65,588)
-
104,782
1,685,231
(45,921)
347,128
1,057,872
(1,582,895)
82,953
426,473
(108)
17,770
(117,526)
185,746
EGP Thousands
Assets (Liabilities) Assets (Liabilities)
Dec.31, 2022
Dec.31, 2023
185,746
341,943
1,157,542
1,685,231
456,002
1,153,777
(1,424,033)
185,746
33. Share-based payments
According to the extraordinary general assembly meeting on June 26, 2006, the Bank launched new Employees Share Ownership
Plan (ESOP) scheme and issued equity-settled share-based payments. Eligible employees should complete a term of 3 years of
service in The Bank to have the right in ordinary shares at face value (right to share) that will be issued on the vesting date,otherwise
such grants will be forfeited. Equity-settled share-based payments are measured at fair value at the grant date, and expensed on a
straight-line basis over the vesting year (3 years) with corresponding increase in equity based on estimated number of shares that
will eventually vest. The fair value for such equity instruments is measured using the Black-Scholes pricing model.
Details of the rights to share outstanding during the year are as follows:
Outstanding at the beginning of the year
Granted during the year
Forfeited during the year
Exercised during the year
Outstanding at the end of the year
Dec.31, 2023
No. of shares
in thousand
Dec.31, 2022
No. of shares
in thousand
92,551
28,143
(3,693)
(36,988)
80,013
76,328
31,177
(2,682)
(12,272)
92,551
Maturity date
2024
2025
2026
Total
EGP
Exercise
price
10.00
10.00
10.00
EGP
Fair
value
26.34
28.43
34.09
No. of shares
in thousand
23,788
29,052
27,173
80,013
The fair value of granted shares is calculated using Black-Scholes pricing model with the following:
Exercise price
Current share price
Expected life (years)
Risk free rate %
Dividend yield%
Volatility%
Volatility is calculated based on the standard deviation of returns for the last five years.
34. Reserves and retained earnings
Legal reserve
General reserve
Capital reserve
Retained earnings
Reserve for transactions under common control
Reserve for financial assets at fair value through OCI
Reserve for employee stock ownership plan
Banking risks reserve
Cumulative foreign currencies translation differences
General risk reserve
Ending balance
34.1. Banking risks reserve
Beginning balance
Transferred to banking risk reserve
Ending balance
17th tranche
16th tranche
10
41.48
3
18.00%
1.30%
34.75%
10
42.65
3
14.65%
2.50%
25.73%
Dec.31,2023
EGP Thousands
Dec.31,2022
4,770,354
39,840,707
21,155
29,993,331
(670,972)
(16,868,691)
1,486,010
15,230
148,353
1,550,906
60,286,383
3,963,946
27,096,858
18,947
16,393,841
8,183
(13,188,818)
1,895,435
11,981
181,324
1,550,906
37,932,603
EGP Thousands
Dec.31, 2023 Dec.31, 2022
11,981
3,249
15,230
9,141
2,840
11,981
258 • CIB Annual Report • 2023
2023 • CIB Annual Report • 259
Financial Statements • Consolidated • 34.2. Legal reserve
35. Cash and cash equivalent
EGP Thousands
Dec.31, 2023 Dec.31, 2022
3,963,946
806,408
4,770,354
3,293,074
670,872
3,963,946
EGP Thousands
Dec.31, 2023 Dec.31, 2022
(13,188,818)
(95,308)
(5,472,891)
1,888,326
(16,868,691)
641,372
(3,436)
(14,281,801)
455,047
(13,188,818)
EGP Thousands
Dec.31, 2023 Dec.31, 2022
16,393,841
(12,388,223)
(3,738,888)
29,634,542
(3,249)
95,308
29,993,331
13,696,402
(9,007,223)
(4,410,322)
16,114,388
(2,840)
3,436
16,393,841
EGP Thousands
Dec.31, 2023 Dec.31, 2022
1,895,435
(1,164,242)
754,817
1,486,010
1,674,392
(502,922)
723,965
1,895,435
EGP Thousands
Dec.31, 2023 Dec.31, 2022
1,550,906
1,550,906
1,550,906
1,550,906
Beginning balance
Transferred to legal reserve
Ending balance
34.3. Reserve for financial assets at fair value through OCI
Beginning balance
Transferred to RE from financial assets at fair value through OCI
Net unrealised gain/(loss) on financial assets at fair value through OCI
Effect of ECL in fair value of debt instruments measured at fair value through OCI
Ending balance
34.4. Retained earnings
Beginning balance
Transferred to reserves
Dividends paid
Net profit of the year
Transferred ( from) to banking risk reserve
Transferred to RE from financial assets at fair value through OCI
Ending balance
34.5. Reserve for employee stock ownership plan
Beginning balance
Transferred to reserves
Cost of employees stock ownership plan (ESOP)
Ending balance
34.6. General risk reserve
Beginning balance
Ending balance
260 • CIB Annual Report • 2023
Cash and balances at the central bank
Due from banks
Treasury bills and other governmental notes
Obligatory reserve balance with CBE
Due from banks with maturities more than three months
Treasury bills and other governmental notes with maturities more than three months
Total
36. Contingent liabilities and commitments
36.1. Legal claims
EGP Thousands
Dec.31, 2023 Dec.31, 2022
71,887,821
231,087,402
113,403,703
(64,396,185)
(4,942,896)
(112,721,932)
234,317,913
47,492,549
133,906,112
59,146,824
(40,493,607)
(47,286,754)
(59,795,598)
92,969,526
• There is a number of existing cases against the bank on December 31, 2023 for which no provisions are made as the bank
doesn’t expect to incur losses from it.
• A provision for legal cases that are expected to generate losses has been created. (Note No. 30)
36.2. Capital commitments
36.2.1. Financial investments
The capital commitments for the financial investments reached on the date of financial position EGP 1,931 thousand as follows:
Financial Assets at Fair value through OCI
308,931
307,000
1,931
Investments
value
Paid
Remaining
36.2.2. Fixed assets and branches constructions
The value of commitments for the purchase of fixed assets, contracts, and branches constructions that have not been implemented till
the date of the financial statements amounted to EGP 396,683 thousand against EGP 397,100 thousand in 2022.
36.3. Letters of credit, guarantees and other commitments
Letters of guarantee
Letters of credit (import and export)
Customers acceptances
Total
36.4. Credit facilities commitments
Credit facilities commitments
36.5. Lease commitments
The total minimum lease payments for non-cancellable operating leases are as follows:
Not more than one year
More than one year and less than five years
More than five years
EGP Thousands
Dec.31,2023 Dec.31, 2022
160,776,153
9,075,124
4,800,405
174,651,682
123,073,882
8,640,327
3,482,249
135,196,458
EGP Thousands
Dec.31,2023 Dec.31, 2022
5,375,921
7,077,400
EGP Thousands
Dec.31,2023 Dec.31, 2022
223,456
659,897
287,120
57,119
563,066
200,824
2023 • CIB Annual Report • 261
Financial Statements • Consolidated • 37. Mutual funds
Osoul fund
• CIB established an accumulated return mutual fund under license no.331 issued from capital market authority on February
22, 2005. CI Assets Management Co.- Egyptian joint stock co - manages the fund.
• The number of certificates issued reached 10,164,050 with redeemed value of EGP 6,634,990 thousands.
• The market value per certificate reached EGP 652.79 on December 31, 2023.
• The Bank’s portion is 237,112 certificates with a redeemed value of EGP 154,784 thousands.
Istethmar fund
• CIB bank established the second accumulated return mutual fund under license no.344 issued from capital market authority
on February 26, 2006. CI Assets Management Co.- Egyptian joint stock co - manages the fund.
• The number of certificates issued reached 396,693 with redeemed value of EGP 165,984 thousands
• The market value per certificate reached EGP 418.42 on December 31, 2023
• The Bank’s portion is 50,000 certificates with a redeemed value of EGP 20,921 thousands.
Aman fund (CIB and Faisal Islamic Bank Mutual Fund)
• CIB and Faisal Islamic Bank established an accumulated return mutual fund under license no.365 issued from capital market
authority on July 30, 2006. CI Assets Management Co.- Egyptian joint stock co - manages the fund.
• The number of certificates issued reached 317,885 with redeemed value of EGP 65,427 thousands.
• The market value per certificate reached EGP 205.82 on December 31, 2023.
• The Bank’s portion is 32,596 certificates with a redeemed value of EGP 6,709 thousands.
Hemaya fund
38. Transactions with related parties
All banking transactions with related parties are conducted in accordance with the normal banking practices and regulations applied to all other
customers without any discrimination.
38.1. Loans, advances, deposits and contingent liabilities
Loans, advances and other assets
Deposits
Contingent liabilities
38.2. Other transactions with related parties
International Co. for Security & Services
CVenture Capital
Commercial International Bank (CIB) Kenya
Damietta shipping & marine services
Commercial International Finance Company
Al ahly computer
TCA Properties
EGP Thousands
Dec.31, 2023 Dec.31, 2022
1,081,864
123,560
173,143
941,131
728,866
-
Dec.31, 2023
Income
Expenses
-
716
1,024
14
90
22
151,493
-
1,284
4,335
625
4,546
103
-
EGP Thousands
Dec.31, 2022
Income
Expenses
73
740
790
2
4
3
138,162
215,848
93
-
564
2,155
-
-
• CIB bank established an accumulated return mutual fund under license no.585 issued from financial supervisory Authority
39. Main currencies positions
on June 23, 2010. CI Assets Management Co.- Egyptian joint stock co - manages the fund.
• The number of certificates issued reached 83,589 with redeemed value of EGP 35,903 thousands.
• The market value per certificate reached EGP 429.52 on December 31, 2023
• The Bank’s portion is 50,000 certificates with a redeemed value of EGP 21,476 thousands.
Thabat fund
• CIB bank established an accumulated return mutual fund under license no.613 issued from financial supervisory authority
on September 13, 2011. CI Assets Management Co.- Egyptian joint stock co - manages the fund.
• The number of certificates issued reached 252,645 with redeemed value of EGP 110,616 thousands.
• The market value per certificate reached EGP 437.83 on December 31, 2023.
• The Bank’s portion is 50,000 certificates with a redeemed value of EGP 21,892 thousands.
Takamol fund
• CIB bank established an accumulated return mutual fund under license no.431 issued from financial supervisory authority
on February 18, 2015. CI Assets Management Co.- Egyptian joint stock co - manages the fund.
• The number of certificates issued reached 145,783 with redeemed value of EGP 55,463 thousands.
• The market value per certificate reached EGP 380.45 on December 31, 2023.
• The Bank’s portion is 50,000 certificates with a redeemed value of EGP 19,023 thousands.
EGP Thousands
Dec.31,2023 Dec.31, 2022
204,337
706,200
11,609
(101)
1,471
(278,393)
(395,392)
900,773
1,289
-
109
36,082
Egyptian pound
US dollar
Sterling pound
Japanese yen
Swiss franc
Euro
40. Tax status
Corporate income tax
• Settlement of corporate income tax since the start of activity till 2020.
• The yearly income tax return submitted in legal dates.
Salary tax
• Settlement of salary tax since the start of activity till 2022.
Stamp duty tax
• The period since the start of activity till 31/07/2006 was examined & paid, disputed points have been transferred to the court
for adjudication & cases are being resolved as per Tax disputes termination law.
• Settlment the period from 01/08/2006 till 31/12/2022 in accordance with the protocol signed between the Federation of
Egyptian Banks & the Egyptian Tax Authority
262 • CIB Annual Report • 2023
2023 • CIB Annual Report • 263
Financial Statements • Consolidated • Disclosures related to cash flow statement
41. Other assets - net increase (decrease)
Total other assets by beginning of the year
Assets acquired as settlement of debts
Advances to purchase fixed assets
Total 1
Total other assets by end of the year
Assets acquired as settlement of debts
Advances to purchase fixed assets
Uncollected installments from investments in associates
Impairment (Release) charge for other assets
Total 2
Change (1-2)
Total other assets by beginning of the year
Assets acquired as settlement of debts
Advances to purchase fixed assets
Total 1
Total other assets by end of the year
Assets acquired as settlement of debts
Advances to purchase fixed assets
Impairment (Release) charge for other assets
Total 2
Change (1-2)
EGP Thousands
Dec.31, 2023
14,521,427
(124,098)
(1,342,568)
13,054,761
18,972,786
(49,019)
(1,906,547)
(11,956)
17,620
17,022,884
(3,968,123)
EGP Thousands
Dec.31, 2022
11,207,128
(153,423)
(1,139,188)
9,914,517
14,521,427
(124,098)
(1,342,568)
(277,766)
12,776,995
(2,862,478)
42. Significant events during the year
On 3 August 2023, the Monetary Policy Committee (MPC) decided to raise the Central Bank of Egypt’s (CBE) overnight deposit
rate, overnight lending rate, and the rate of the main operation by 100 basis points to 19.25 percent, 20.25 percent, and 19.75
percent, respectively. The discount rate was also raised by 100 basis points to 19.75 percent , which may affect the bank’s policies
in pricing current and future banking products.
On 30 March 2023, the Monetary Policy Committee (MPC) decided to raise the Central Bank of Egypt’s (CBE) overnight deposit
rate, overnight lending rate, and the rate of the main operation by 200 basis points to 18.25 percent, 19.25 percent, and 18.75
percent, respectively. The discount rate was also raised by 200 basis points to 18.75 percent , which may affect the bank’s policies
in pricing current and future banking products.
During 2023 Central Bank of Egypt (CBE) and the Central Bank of Kenya (CBK) have granted the Bank their consent to acquire
49% of Commercial International Bank (CIB) Kenya to become a fully owned subsidiary of the Bank, for USD 40 million.
During 2023, CIB obtained USD 150 million Subordinated Debt from the International Finance Corporation (IFC) member of the
World Bank Group.
During 2023, CIB obtained USD 150 million Subordinated Debt from European Bank for Reconstruction and Development (EBRD).
43. Goodwill
Acquisition cost
Net assets value
Goodwill
Goodwill at acquisition date
Amortization
Net book value
Commercial International Bank
(CIB)
Kenya
Dec.31, 2023
EGP Thousands
Commercial International Bank
(CIB)
Kenya
Dec.31, 2022
560,963
(354,676)
206,287
560,963
(354,676)
206,287
Commercial International Bank
(CIB)
Kenya
Dec.31, 2023
EGP Thousands
Commercial International Bank
(CIB)
Kenya
Dec.31, 2022
206,287
(206,287)
-
206,287
(110,019)
96,268
According to Central Bank of Egypt regulation issued on Dec 16, 2008, an amortization of 20% annually has been applied on
Goodwill starting from acquisition date.
44. Intangible assets
Intangible Assets at acquisition date
Amortization
Net book value
Commercial International Bank
(CIB)
Kenya
Dec.31, 2023
Commercial International Bank
(CIB)
Kenya
Dec.31, 2022
EGP Thousands
51,831
(51,831)
-
51,831
(27,643)
24,188
The following tables represent the summarize Financial information of (CVenture Capital) subsidiary under liquidation.
45. Non current assets held for sale
Financial Assets at Fair Value through OCI
Other assets
Property and equipment
Total
Dec.31, 2023
EGP Thousands
Dec.31, 2022
79
2
80
161
-
-
-
-
264 • CIB Annual Report • 2023
2023 • CIB Annual Report • 265
Financial Statements • Consolidated • 46. Non current liabilities held for sale
Other liabilities
Other provisions
Total
47. Profit (loss) from discontinued operations
Net interest income
Net fee and commission income
Net trading income
Profits (Losses) on financial investments
Administrative expenses
Other operating income (expenses)
Impairment release (charges) for credit losses
Deferred tax assets (Liabilities)
Net profit (loss) from discontinued operations
EGP Thousands
Dec.31, 2023 Dec.31, 2022
680
193
873
-
-
-
EGP Thousands
Dec.31, 2023 Dec.31, 2022
3,983
136
(311)
(44,182)
(2,255)
(632)
1,151
8
(42,102)
-
-
-
-
-
-
-
-
-
During 2023 CIB BOD decided to start liquidation process for C-Ventures company, one of bank’s subsidiaries.
48. Subsequent events
On 1 February 2024, the Monetary Policy Committee (MPC) decided to raise the Central Bank of Egypt’s (CBE) overnight deposit
rate, overnight lending rate, and the rate of the main operation by 200 basis points to 21.25 percent, 22.25 percent, and 21.75
percent, respectively. The discount rate was also raised by 200 basis points to 21.75 percent , which may affect the bank’s policies
in pricing current and future banking products.
266 • CIB Annual Report • 2023
2023 • CIB Annual Report • 267
Financial Statements • Consolidated • Auditor’s Report
268 • CIB Annual Report • 2023
2023 • CIB Annual Report • 269
Financial Statements • Separate • Separate Statement of Financial Position
As at December 31, 2023
Separate Income Statement
For the year ended December 31, 2023
Assets
Cash and balances at the central bank
Due from banks
Loans and advances to banks, net
Loans and advances to customers, net
Derivative financial instruments
Financial investments
- Financial Assets at Fair Value through OCI
- Financial Assets at Amortized cost
- Investments in subsidiaries and associates
Non current assets held for sale
Other assets
Deferred tax assets
Property and equipment
Total assets
Liabilities and equity
Liabilities
Due to banks
Due to customers
Derivative financial instruments
Current income tax liabilities
Other liabilities
Issued debt instruments
Other loans
Other provisions
Total liabilities
Equity
Issued and paid up capital
Reserves
Reserve for employee stock ownership plan (ESOP)
Retained earnings *
Total equity and net profit for the year
Total liabilities and equity
EGP Thousands
Dec.
31,2023
Dec
31, 2022
Notes
15
16
18
19
20
21
21
22
43
23
32
24
25
26
20
29
27
28
30
31
34
34
34
71,747,343
230,709,419
822,448
233,824,745
1,101,896
232,290,598
37,847,114
671,525
159,828
18,929,067
1,685,223
2,737,936
832,527,142
12,427,384
675,310,076
140,934
9,395,534
18,307,580
3,073,349
12,483,907
11,088,372
742,227,136
30,195,010
29,388,626
1,486,010
29,230,360
90,300,006
832,527,142
47,384,574
133,766,196
2,978,197
192,621,288
1,939,961
202,916,225
34,178,753
1,074,250
-
14,454,868
24,240
2,304,513
633,643,065
3,475,848
530,124,905
219,752
3,051,583
11,549,472
2,456,607
7,978,975
7,065,292
565,922,434
29,825,134
19,502,716
1,895,435
16,497,346
67,720,631
633,643,065
The accompanying notes are an integral part of these financial statements.
( Audit report attached )
* Including net profit for the current year
Hussein Abaza
CEO & Managing Director
Hisham Ezz Al-Arab
Chairman
Interest and similar income
Interest and similar expense
Net interest income
Fee and commission income
Fee and commission expense
Net fee and commission income
Dividend income
Net trading income
Profits (Losses) on financial investments
Administrative expenses
Other operating income (expenses)
Impairment release (charges) for credit losses
Profit before income tax
Income tax expense
Deferred tax assets (Liabilities)
Net profit for the year
Earnings per share
Basic
Diluted
Notes
6
7
8
9
21.1
10
11
12
13
32 - 13
14
EGP Thousands
Dec.
31,2023
Dec.
31,2022
103,687,267
(50,940,504)
52,746,763
9,046,004
(3,612,232)
5,433,772
187,229
3,923,848
(1,223,009)
(9,765,736)
(6,490,604)
(4,287,279)
40,524,984
(13,075,958)
1,319,040
28,768,066
55,442,268
(24,606,441)
30,835,827
5,542,843
(2,477,342)
3,065,501
62,226
2,741,854
1,116,776
(7,177,250)
(5,070,547)
(1,512,007)
24,062,380
(6,342,457)
(1,589,563)
16,130,360
8.59
8.48
4.80
4.74
Hussein Abaza
CEO & Managing Director
Hisham Ezz Al-Arab
Chairman
270 • CIB Annual Report • 2023
2023 • CIB Annual Report • 271
Financial Statements • Separate • Separate Statement of Comprehensive
Income
for the year Ended December 31, 2023
Net profit for the year
Comprehensive income items that will not be reclassified to the Profit or Loss:
Change in fair value of equity instruments measured at fair value through comprehensive income
Deferred Tax impact for investments that will not be reclassified to P&L
Transferred to RE from financial assets at fair value through comprehensive income
Comprehensive income items that may be reclassified to the profit or loss:
Change in fair value of debt instruments measured at fair value through comprehensive income
Selling FVOCI financial instruments
Deferred Tax impact for investments that may be reclassified to P&L
Effect of ECL on fair value of debt instruments measured at fair value through
comprehensive income
Total comprehensive income for the year
EGP Thousands
Dec.
31,2023
Dec. 31,
2022
28,768,066
16,130,360
259,291
(131,008)
(95,308)
294,799
(61,753)
(3,436)
(6,912,611)
(205,344)
1,530,823
(14,465,198)
(1,116,776)
1,119,625
1,884,353
455,047
25,098,262
2,352,668
272 • CIB Annual Report • 2023
Separate Cash Flow
for the year Ended December 31, 2023
Cash flow from operating activities
Profit before income tax
Adjustments to reconcile profits to net cash provided by operating activities
Fixed assets depreciation
Impairment (Released) charge for credit losses (Loans and advances to customers and
banks)
Other provisions charged ( Released )
Impairment (Released) charge for credit losses (due from banks)
Impairment (Released) charge for credit losses ( financial investments)
Impairment (Released) charge for other assets
Exchange revaluation differences for financial assets at fair value through OCI and AC
Revaluation differences Impairment charge for Financial Assets at Fair value through OCI
Revaluation differences Impairment charge for Financial Assets at Amortized cost
Utilization of other provisions
Other provisions no longer used
Exchange revaluation differences of other provisions
profits from selling property and equipment
profits from selling financial investments at fair value through OCI
Losses (Profits) from selling investments in associates
Shares based payments
Impairment (Released) charges of investments in associates and subsidiaries
Operating profits before changes in operating assets and liabilities
Net decrease / increase in assets and liabilities
Due from banks
Financial assets at fair value through P&L
Derivative financial instruments
Loans and advances to banks and customers
Other assets
Due to banks
Due to customers
Current income tax obligations paid
Other liabilities
Net cash generated from (used in) operating activities
Cash flow from investing activities
Proceeds from investments in associates
Payments for investment in subsidiaries
Payment for purchases of property, equipment and branches construction
Proceeds from selling property and equipment
Proceeds from redemption of financial assets at amortized cost
Payment for purchases of financial assets at amortized cost
Payment for purchases of financial assets at fair value through OCI
Proceeds from selling financial assets at fair value through OCI
Net cash generated from (used in) investing activities
Notes
24
12
30
12
12
23
21
30
30
30
11
21.1
21.1
21.1
16
21
20
18 - 19
41
25
26
29
11
EGP Thousands
Dec.
31,2023
Dec.
31,2022
40,524,984
24,062,380
884,569
2,334,846
2,815,599
(49,042)
2,001,475
17,620
(5,442,433)
1,903
607
(5,850)
-
1,213,331
(1,663)
(205,344)
(7,466)
754,817
1,435,819
46,273,772
868,611
978,374
2,133,941
8,795
524,838
(277,766)
(7,477,865)
-
-
(3,126)
(172)
1,394,973
(2,208)
(1,116,776)
-
723,965
-
21,817,964
18,429,555
(25,816,942)
-
759,247
(41,307,475)
(3,987,891)
8,951,536
145,185,172
(3,680,424)
3,706,525
174,330,017
4,510
(1,216,022)
(1,885,043)
1,663
6,125,452
(9,261,966)
(129,278,830)
100,444,607
240,987
(1,760,098)
(51,470,510)
(2,859,380)
2,613,089
124,023,989
(3,221,401)
1,223,704
64,791,402
-
(59,900)
(974,017)
2,208
6,738,937
(19,860,705)
(45,171,763)
27,087,151
(35,065,629)
(32,238,089)
2023 • CIB Annual Report • 273
Financial Statements • Separate • Separate Cash Flow (Cont.)
for the year Ended December 31, 2023
Cash flow from financing activities
Other loans
Dividends paid
Issued debt instruments
Capital increase
Net cash generated from (used in) financing activities
Net (decrease) increase in cash and cash equivalent during the year
Beginning balance of cash and cash equivalent
Cash and cash equivalent at the end of the year
Cash and cash equivalent comprise:
Cash and balances at the central bank
Due from banks
Treasury bills and other governmental notes
Obligatory reserve balance with CBE
Due from banks with maturity more than three months
Treasury bills and other governmental notes with maturity more than
three months
Total cash and cash equivalent
Notes
28
15
16
17
15
EGP Thousands
Dec.
31,2023
Dec.
31,2022
4,504,932
(3,738,888)
616,742
369,876
1,752,662
141,017,050
92,895,143
233,912,193
71,747,343
230,709,611
113,403,703
(64,283,636)
(4,942,896)
2,838,193
(4,410,322)
899,344
122,716
(550,069)
32,003,244
60,891,899
92,895,143
47,384,574
133,815,430
59,146,824
(40,414,752)
(47,241,335)
(112,721,932)
(59,795,598)
233,912,193
92,895,143
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274 • CIB Annual Report • 2023
2023 • CIB Annual Report • 275
Financial Statements • Separate •
Proposed Appropriation Account
for the year Ended December 31, 2023
Notes to The Separate Financial Statements
for the year ended December 31, 2023
Net profit after tax
Deduct:
Profits from selling property and equipment transferred to capital reserve according to the law
Bank risk reserve
Available net profit for distributing
Added
Retained Earnings beginning balance
Transferred to retained earnings
Total
To be distributed as follows:
Legal reserve
General reserve
Dividends to shareholders
Staff profit sharing
Board members bonus
CIB's foundation
Support and development of banking sector fund
Retained Earnings closing balance
Total
EGP Thousands
Dec.
31,2023
Dec.
31,2022
28,768,066
16,130,360
(1,663)
(2,694)
28,763,709
366,986
95,308
29,226,003
1,438,320
21,958,960
1,660,726
2,876,371
110,239
431,456
287,637
462,294
29,226,003
(2,208)
(3,249)
16,124,903
363,550
3,436
16,491,889
806,408
11,579,607
1,613,036
1,612,490
110,239
241,874
161,249
366,986
16,491,889
1. General information
Commercial International Bank-Egypt (CIB) S.A.E. provides retail, corporate and investment banking services in various parts of
Egypt through 193 branches, and 15 units employing 7,917 employees on the statement of financial position date.
Commercial International Bank-Egypt (CIB) S.A.E. was formed as a commercial bank under the investment law no. 43 of 1974
amended by law no. 32/1977 and its amendments. The address of its registered head office is as follows: Nile tower, 21/23 Charles
de Gaulle Street-Giza. The Bank is listed in the Egyptian stock exchange.
Financial statements have been approved by board of directors on February 11, 2024.
2. Summary of accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have
been consistently applied to all years presented, unless otherwise stated.
2.1. Basis of preparation
The separate financial statements have been prepared in accordance with the Central Bank of Egypt regulations approved by the
Board of Directors on December 16, 2008 as modified by the instructions for applying the International Standard for Financial
Reports (9) issued by the Central Bank of Egypt on February 26, 2019. Reference is made to the Egyptian Accounting Standards
for policies not specifically mentioned in the instructions of the Central Bank of Egypt, under the historical cost convention, as
modified by the initial recognition of financial instruments at fair value, financial instruments categorized at fair value through
profit or loss (“FVTPL”) and at fair value through other comprehensive income (“FVOCI”). The principal accounting policies
applied in the preparation of these financial statements have been consistently applied to all periods presented and are set below.
Subsidiaries are entirely included in the consolidated financial statements and these companies are the companies that the Bank
- directly or indirectly - has more than half of the voting rights or has the ability to control the financial and operating policies,
regardless of the type of activity, the Bank’s consolidated financial statements can be obtained from the Bank’s management.
The Bank accounts for investments in subsidiaries and associate companies in the separate financial statements at cost minus
impairment loss.
The separate financial statements of the Bank should be read with its consolidated financial statements, for the year ended on
31 December, 2023 to get complete information on the Bank’s financial position, results of operations, cash flows and changes in
ownership rights.
2.2. Subsidiaries and associates
2.2.1. Subsidiaries
Subsidiaries are those investees, including structured entities, that the Bank controls because the Bank (i) has power to direct relevant
activities of the investees that significantly affect their returns, (ii) has exposure, or rights, to variable returns from its involvement
with the investees, and (iii) has the ability to use its power over the investees to affect the amount of investor’s returns. The existence
and effect of substantive rights, including substantive potential voting rights, are considered when assessing whether the Bank has
power over another entity. For a right to be substantive, the holder must have practical ability to exercise that right when decisions
about the direction of the relevant activities of the investee need to be made. The Bank may have power over an investee even when
it holds less than majority of voting power in an investee. In such a case, the Bank assesses the size of its voting rights relative to the
size and dispersion of holdings of the other vote holders to determine if it has de-facto power over the investee. Protective rights of
other investors, such as those that relate to fundamental changes of investee’s activities or apply only in exceptional circumstances,
do not prevent the Bank from controlling an investee. Subsidiaries are consolidated in the Bank’s consolidated financial statements
from the date on which control is transferred to the Bank, and are deconsolidated from the date on which control ceases.
The acquisition method of accounting is used to account for the acquisition of subsidiaries [other than those acquired from
parties under common control]. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business
combination are measured at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest.
276 • CIB Annual Report • 2023
2023 • CIB Annual Report • 277
Financial Statements • Separate • The Bank measures non-controlling interest that represents present ownership interest and entitles the holder to a proportionate share of
net assets in the event of liquidation on a transaction by transaction basis, either at: (a) fair value, or (b) the non-controlling interest’s propor-
tionate share of net assets of the acquiree. Non-controlling interests that are not present ownership interests are measured at fair value.
Goodwill is measured by deducting the net assets of the acquiree from the aggregate of the consideration transferred for the acquiree,
the amount of non-controlling interest in the acquiree and fair value of an interest in the acquiree held immediately before the acquisi-
tion date. Any negative amount (“negative goodwill”) is recognized in profit or loss, after management reassesses whether it identified
all the assets acquired and all liabilities and contingent liabilities assumed, and reviews appropriateness of their measurement.
The consideration transferred for the acquiree is measured at the fair value of the assets given up, equity instruments issued
and liabilities incurred or assumed, including fair value of assets or liabilities from contingent consideration arrangements, but
excludes acquisition related costs such as advisory, legal, valuation and similar professional services. Transaction costs incurred
for issuing equity instruments are deducted from equity; transaction costs incurred for issuing debt are deducted from its carrying
amount and all other transaction costs associated with the acquisition are expensed.
Intercompany transactions, balances and unrealized gains on transactions between group companies are eliminated; unrealized
losses are also eliminated unless the cost cannot be recovered. The Bank and all its subsidiaries use uniform accounting policies
consistent with the Group’s policies.
Non-controlling interest is that part of the net results and of the equity of a subsidiary attributable to interests which are not
owned, directly or indirectly, by the Bank. Non-controlling interest forms a separate component of the Group’s equity.
Purchases and sales of non-controlling interests. The Bank applies the economic entity model to account for transactions with
owners of non-controlling interest. Any difference between the purchase consideration and the carrying amount of non-control-
ling interest acquired is recorded as a capital transaction directly in equity. The Bank recognizes the difference between sales
consideration and carrying amount of non-controlling interest sold as a capital transaction in the statement of changes in equity.
2.2.2. Associates
Associates are entities over which the Bank has significant influence (directly or indirectly), but not control, generally accom-
panying a shareholding of between 20 and 50 percent of the voting rights. Investments in associates are accounted for using the
equity method of accounting and are initially recognized at cost. The carrying amount of associates includes goodwill identified
on acquisition less accumulated credit losses, if any. Dividends received from associates reduce the carrying value of the invest-
ment in associates. Other post-acquisition changes in Group’s share of net assets of an associate are recognized as follows: (i)
the Group’s share of profits or losses of associates is recorded in the consolidated profit or loss for the year as share of result of
associates, (ii) the Group’s share of other comprehensive income is recognized in other comprehensive income and presented
separately, (iii); all other changes in the Group’s share of the carrying value of net assets of associates are recognized in profit
or loss within the share of result of associates. However, when the Group’s share of losses in an associate equals or exceeds its
interest in the associate, including any other unsecured receivables, the Group does not recognize further losses, unless it has
incurred obligations or made payments on behalf of the associate.
Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the
associates; unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The Bank applies the impairment requirements in IFRS 9 to long-term loans, preference shares and similar long-term interest
that in substance form part of the investment in associate before reducing the carrying value of the investment by a share of a loss
of the investee that exceeds the amount of the Group’s interest in the ordinary shares.
Disposals of subsidiaries, associates or joint ventures. When the Group ceases to have control or significant influence, any
retained interest in the entity is re-measured to its fair value, with the change in carrying amount recognized in profit or loss.
The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate,
joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that
entity, are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts
previously recognized in other comprehensive income are recycled to profit or loss.
2.3. Segment reporting
A business segment is a group of assets and operations engaged in providing products or services that are subject to risks and
returns that are different from those of other business segments. A geographical segment is engaged in providing products or
services within a particular economic environment that are subject to risks and returns different from those of segments oper-
ating in other economic environments.
2.4. Foreign currency translation
2.4.1. Functional and presentation currency
The financial statements are presented in Egyptian pound, which is the Bank’s functional and presentation currency.
2.4.2. Transactions and balances in foreign currencies
The Bank maintains its accounting records in Egyptian pound. Transactions in foreign currencies during the period are trans-
lated into the Egyptian pound using the prevailing exchange rates on the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are retranslated at the end of reporting period at the prevailing
exchange rates. Foreign exchange gains and losses resulting from settlement and translation of such transactions and balances
are recognized in the income statement and reported under the following line items:
• Net trading income from held-for-trading assets and liabilities.
• Items of other comprehensive income with equity in relation to investments in equity instruments at fair value through
comprehensive income.
• Other operating revenues (expenses) from the remaining assets and liabilities.
Changes in the fair value of financial instruments of a monetary nature in foreign currencies that are classified as financial invest-
ments at fair value through comprehensive income (debt instruments) are analyzed between valuation differences that resulted
from changes in the cost consumed for the instrument and differences that resulted from changing the exchange rates in effect and
differences caused by changing the fair value For the instrument, the evaluation differences related to changes in the cost consumed
are recognized in the income of loans and similar revenues and in the differences related to changing the exchange rates in other
operating income (expenses) item, and are recognized in the items of comprehensive income right The ownership of the difference
in the change in the fair value ( fair value reserve / financial investments at fair value through comprehensive income).
Valuation differences arising from the measurement of items of a non-monetary nature at fair value through profit and losses
resulting from changes in the exchange rates used to translate those items include, and then are recognized in the income state-
ment by the total valuation differences resulting from the measurement of equity instruments classified at fair value through
Profits and losses, while the total valuation differences resulting from the measurement of equity instruments at fair value
through comprehensive income are recognized within other comprehensive income items in equity, fair value reserve item for
financial investments at fair value through comprehensive income.
2.5. Financial assets
Key Measurement Terms:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The best evidence of fair value is price in an active market. An active market is one in
which transactions for the asset or liability take place with enough frequency and volume to provide pricing information on an
ongoing basis. Fair value of financial instruments traded in an active market is measured as the product of the quoted price for
the individual asset or liability and the quantity held by the entity.
Valuation techniques such as discounted cash flow models or models based on recent arm’s length transactions or consideration
of financial data of the investees, are used to measure fair value of certain financial instruments for which external market pricing
information is not available. Fair value measurements are analyzed by level in the fair value hierarchy as follows: (i) level one are
measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level two measurements are
valuations techniques with all material inputs observable for the asset or liability, either directly (that is, as prices) or indirectly
(that is, derived from prices), and (iii) level three measurements are valuations not based on solely observable market data (that
is, the measurement requires significant unobservable inputs).
Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial instru-
ment. An incremental cost is one that would not have been incurred if the transaction had not taken place. Transaction costs
include fees and commissions paid. Transaction costs do not include debt premiums or discounts.
278 • CIB Annual Report • 2023
2023 • CIB Annual Report • 279
Financial Statements • Separate • Amortized cost is the amount at which the financial instrument was recognized at initial recognition less any principal repay-
ments, plus accrued interest, and for financial assets less any allowance for expected credit losses. Accrued interest includes
amortization of transaction costs deferred at initial recognition and of any premium or discount to maturity amount using the
effective interest method.
The effective interest method is a method of allocating interest income or interest expense over the relevant period, so as to
achieve a constant periodic rate of interest (effective interest rate) on the carrying amount. The effective interest rate is the rate
that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or a
shorter period, if appropriate, to the gross carrying amount of the financial instrument.
The effective interest rate discounts cash flows of variable interest instruments to the next interest repricing date, except for the
premium or discount, which reflects the credit spread over the floating rate specified in the instrument, or other variables that are
not reset to market rates. Such premiums or discounts are amortized over the expected life of the instrument. The present value
calculation includes all fees paid or received between parties to the contract that are an integral part of the effective interest rate.
Financial instruments - initial recognition.
Financial instruments at FVTPL are initially recorded at fair value. Fair value at initial recognition is best evidenced by the trans-
action price. A gain or loss on initial recognition is only recorded if there is a difference between fair value and transaction price
which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique
whose inputs include only data from observable markets. After the initial recognition, an ECL allowance is recognized for finan-
cial assets measured at amortized cost and investments in debt instruments measured at FVOCI, resulting in an immediate
accounting loss. All purchases and sales of financial assets that require delivery within the time frame established by regulation or
market convention (“regular way” purchases and sales) are recorded at trade date, which is the date on which the bank commits
to deliver a financial asset. All other purchases are recognized when the entity becomes a party to the contractual provisions of
the instrument.
Financial assets - classification and subsequent measurement - measurement categories.
The bank classifies financial assets in the following measurement categories: FVTPL, FVOCI and AC. The classification and
subsequent measurement of debt financial assets depends on: (i) the bank’s business model for managing the related assets
portfolio and (ii) the cash flow characteristics of the asset.
The following table summarizes measurement categories
Financial
Instrument
Methods of Measurement according to Business Models
Amortized Cost
Fair Value
Equity Instruments Not Applicable
Debt Instruments
/Loans & Facilities
Business Model of Assets held for
Collecting Contractual Cash Flows
Through Other Comprehensive
Income
Through
Profit or Loss
An irrevocable election at Initial
Recognition
Business Model of Assets held for
Collecting Contractual Cash Flows
& Selling
Normal
treatment of
equity
instruments
Business Model
of Assets held for
Trading
Financial assets - classification and subsequent measurement - business model.
The business model reflects how the bank manages the assets in order to generate cash flows - whether the bank’s objective is:
(i) solely to collect the contractual cash flows from the assets (“hold to collect contractual cash flows”,) or (ii) to collect both the
contractual cash flows and the cash flows arising from the sale of assets (“hold to collect contractual cash flows and sell”) or, if
neither of (i) and (ii) is applicable, the financial assets are classified as part of “other” business model and measured at FVTPL.
Business model is determined for a group of assets (on a portfolio level) based on all relevant evidence about the activities that
the bank undertakes to achieve the objective set out for the portfolio available at the date of the assessment. Factors considered
by the bank in determining the business model include the purpose and composition of a portfolio, past experience on how the
cash flows for the respective assets were collected, how risks are assessed and managed, how the assets’ performance is assessed.
Financial assets - classification and subsequent measurement - cash flow characteristics.
Where the business model is to hold assets to collect contractual cash flows or to hold contractual cash flows and sell, the bank
assesses whether the cash flows represent solely payments of principal and interest (“SPPI”). Financial assets with embedded
derivatives are considered in their entirety when determining whether their cash flows are consistent with the SPPI feature. In
making this assessment, the bank considers whether the contractual cash flows are consistent with a basic lending arrangement,
i.e. interest includes only consideration for credit risk, time value of money, other basic lending risks and profit margin.
Where the contractual terms introduce exposure to risk or volatility that is inconsistent with a basic lending arrangement, the
financial asset is classified and measured at FVTPL. The SPPI assessment is performed on initial recognition of an asset and it is
not subsequently reassessed.
The following table summarizes the classification of the Banks Financial Assets in accordance with the business model:
Financial asset
Business model
Basic characteristics
Financial Assets at Amortized Cost
(AC)
Financial Assets at Fair Value
through Other Comprehensive
Income (FVTOCI)
Financial Assets at Fair Value
through Profit or Loss (FVTPL)
• The objective of the business model is to retain the
financial assets to collect the contractual cash flows of the
principal amount of the investment and the proceeds.
• Sale is an exceptional event for the purpose of this model and
under the terms of the criterion of a deterioration in the cred-
itworthiness of the issuer of the financial instrument.
• Lowest sales in terms of turnover and value.
• The Bank makes clear and reliable documentation of the
reasons for eachsale and its compliance with the require-
ments of the Standard.
• Both the collection of contractual cash flows and
sales are complementary to the objective of the model.
• High sales (in terms of turnover and value) compared to the
business model retained for the collection of cash flows.
• The objective of the business model is not to retain the finan-
cial asset for the collection of contractual or retained cash
flows for the collection of contractual cash flows and sales.
• Collecting contractual cash flows is an incidental event for
the model objective.
• Management of financial assets at fair value through profit or
loss to avoid inconsistency in accounting measurement.
Business model
for financial assets
held to collect
contractual cash
flows
Business model of
financial assets
held to collect cash
flows and sales
Other business
models include
trading -
management of
financial
assets at fair value -
maximizing
cash flows by selling
280 • CIB Annual Report • 2023
2023 • CIB Annual Report • 281
Financial Statements • Separate • Financial assets - reclassification. Financial instruments are reclassified only when the business model for managing the port-
folio as a whole changes. The Bank did not change its business model during the current and comparative year and did not make
any reclassifications.
Financial assets impairment - credit loss allowance for ECL. The bank assesses, on a forward-looking basis, the ECL for
debt instruments measured at AC and FVOCI and for the exposures arising from loan commitments and financial guarantee
contracts. The bank measures ECL and recognizes credit loss allowance at each reporting date. The measurement of ECL reflects:
(i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value
of money and (iii) all reasonable and supportable information that is available without undue cost and effort at the end of each
reporting date about past events, current conditions and forecasts of future conditions.
The bank applies a three-stage model for impairment, based on changes in credit quality since initial recognition. A financial
instrument that is not credit-impaired on initial recognition is classified in Stage 1. Financial assets in Stage 1 have their ECL
measured at an amount equal to the portion of lifetime ECL that results from default events possible within the next 12 months
or until contractual maturity, if shorter (“12 Months ECL”). If the bank identifies a significant increase in credit risk (“SICR”) since
initial recognition, the asset is transferred to Stage 2 and its ECL is measured based on ECL on a lifetime basis, that is, up until
contractual maturity but considering expected prepayments, if any (“Lifetime ECL”). If the bank determines that a financial asset
is credit-impaired, the asset is transferred to Stage 3 and its ECL is measured as a Lifetime ECL.
Financial assets - write-off. Financial assets are written-off, in whole or in part, when the bank exhausted all practical recovery
efforts and has concluded that there is no reasonable expectation of recovery. The write-off represents a derecognition event.
Financial assets - derecognition. The bank derecognizes financial assets when (a) the assets are redeemed or the rights to cash
flows from the assets otherwise expired or (b) the bank has transferred the rights to the cash flows from the financial assets or
entered into a qualifying pass-through arrangement while (i) also transferring substantially all risks and rewards of ownership
of the assets or (ii) neither transferring nor retaining substantially all risks and rewards of ownership, but not retaining control.
Control is retained if the counterparty does not have the practical ability to sell the asset in its entirety to an unrelated third party
without needing to impose restrictions on the sale.
When the financial asset is derecognized, the difference between the carrying amount of the financial asset and the total of the
consideration received in other comprehensive income is recognized in profit or loss.
Gain / Loss recognized in other comprehensive income in respect of investment securities in equity securities is not recognized
in profit or loss on disposal of such securities.
Financial liabilities - measurement categories. Financial liabilities are classified as subsequently measured at AC, except for
financial liabilities at FVTPL: this classification is applied to derivatives or financial liabilities held for trading (e.g. short positions
in securities)
Financial liabilities - derecognition. Financial liabilities are derecognized when they are extinguished (i.e. when the obligation
specified in the contract is discharged, cancelled or expires).
2.6. Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a legally enforce-
able right to offset the recognized amounts and there is an intention to be settled on a net basis.
Agreements of repos & reverse repos are shown by the net in the financial statement in treasury bills and other governmental notes.
2.7. Derivative financial instruments and hedge accounting
Derivatives are recognized initially, and subsequently, at fair value. Fair values of exchange traded derivatives are obtained from
quoted market prices. Fair values of over-the-counter derivatives are obtained using valuation techniques, including discounted
cash flow models and option pricing models. Derivatives are classified as assets when their fair value is positive and as liabilities
when their fair value is negative.
Embedded derivatives in other financial instruments, such as conversion option in a convertible bond, are treated as separate
derivatives when their economic characteristics and risks are not closely related to those of the host contract, provided that the
host contract is not classified as at fair value through profit and loss. These embedded derivatives are measured at fair value with
changes in fair value recognized in income statement unless the Bank chooses to designate the hybrid contract as at fair value
through net trading income through profit and loss.
The timing method of recognition in profit and loss, of any gains or losses arising from changes in the fair value of derivatives,
depends on whether the derivative is designated as a hedging instrument, and the nature of the item being hedged. The Bank
designates certain derivatives as:
• Hedging instruments of the risks associated with fair value changes of recognized assets or liabilities or firm commitments
( fair value hedge).
• Hedging of risks relating to future cash flows attributable to a recognized asset or liability or a highly probable forecast
transaction (cash flow hedge)
• Hedge accounting is used for derivatives designated in a hedging relationship when the following criteria are met.
At the inception of the hedging relationship, the Bank documents the relationship between the hedging instrument and the
hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore,
at the inception of the hedge, and on ongoing basis, the Bank documents whether the hedging instrument is expected to be highly
effective in offsetting changes in fair values of the hedged item attributable to the hedged risk.
2.7.1. Fair value hedge
Changes in the fair value of derivatives that are designated and qualified as fair value hedges are recognized in profit and loss
immediately together with any changes in the fair value of the hedged asset or liability that is attributable to the hedged risk.
The effective portion of changes in the fair value of the interest rate swaps and the changes in the fair value of the hedged item
attributable to the hedged risk are recognized in the ‘net interest income’ line item of the income statement. Any ineffectiveness
is recognized in profit and loss in ‘net trading income’.
When the hedging instrument is no longer qualified for hedge accounting, the adjustment to the carrying amount of a hedged
item, measured at amortized cost, arising from the hedged risk is amortized to profit and loss from that date using the effective
interest method.
2.7.2. Derivatives that do not qualify for hedge accounting
All gains and losses from changes in the fair values of derivatives that do not qualify for hedge accounting are recognized immedi-
ately in the income statement. These gains and losses are reported in ‘net trading income’, except where derivatives are managed
in conjunction with financial instruments designated at fair value, in which case gains and losses are reported in ‘net income
from financial instruments designated at fair value’.
2.8. Interest income and expense
Interest income and expense for all financial instruments except for those classified as held-for-trading or designated at fair value
are recognized in ‘interest income’ and ‘interest expense’ in the income statement using the effective interest method.
The effective interest method is a method of calculating the amortized cost of a financial asset or a financial liability and of allo-
cating the interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts
estimated future cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter
period to the net carrying amount of the financial asset or financial liability. When calculating the effective interest rate, the Bank
estimates cash flows considering all contractual terms of the financial instrument ( for example, prepayment options) but does
not consider future credit losses. The calculation includes all fees and points paid or received between parties to the contract that
represents an integral part of the effective interest rate, transaction costs and all other premiums or discounts.
282 • CIB Annual Report • 2023
2023 • CIB Annual Report • 283
Financial Statements • Separate • Once loans or debts are classified as nonperforming or impaired, the revenue of interest income will not be recognized and will
be recorded off balance sheet, and are recognized as income subsequently based on a cash basis according to the following:
Land is not depreciated. Depreciation of other assets is calculated using the straight-line method to allocate their residual values
over estimated useful lives, as follows:
• When all arrears are collected for consumer loans, personnel mortgages and micro-finance loans.
• When calculated interest for corporate are capitalized according to the rescheduling agreement conditions until paying 25%
from rescheduled payments for a minimum performing period of one year, if the customer continues to perform, the calcu-
lated interest will be recognized in interest income (interest on the performing rescheduling agreement balance) without
the marginalized before the rescheduling agreement which will be recognized in interest income after the settlement of the
outstanding loan balance.
2.9. Fee and commission income
Fees charged for servicing a loan or facility that is measured at amortized cost, are recognized as revenue as the service is
provided. Fees and commissions on non-performing or impaired loans or receivables cease to be recognized as income and are
rather recorded off balance sheet. These are recognized as revenue, on a cash basis, only when interest income on those loans is
recognized in profit and loss, at that time, fees and commissions that represent an integral part of the effective interest rate of a
financial asset, are treated as an adjustment to the effective interest rate of that financial asset.
Commitment fees and related direct costs for loans and advances where draw down is probable are deferred and recognized as
an adjustment to the effective interest on the loan once drawn. Commitment fees in relation to facilities where draw down is not
probable are recognized at the maturity of the term of the commitment.
Fees are recognized on the debt instruments that are measured at fair value through profit and loss on initial recognition and
syndicated loan fees received by the Bank are recognized when the syndication has been completed and the Bank does not hold
any portion of it or holds a part at the same effective interest rate used for the other participants portions.
Commission and fee arising from negotiating, or participating in the negotiation of a transaction for a third party such as the
arrangement of the acquisition of shares or other securities and the purchase or sale of properties are recognized upon comple-
tion of the underlying transaction in the income statement.
Other management advisory and service fees are recognized based on the applicable service contracts, usually on accrual basis.
Financial planning fees related to investment funds are recognized steadily over the period in which the service is provided. The
same principle is applied for wealth management; financial planning and custody services that are provided on the long term are
recognized on the accrual basis also.
2.10. Dividend income
Dividends are recognized in the income statement when the right to collect it is declared.
2.11. Sale and repurchase agreements
Securities may be lent or sold according to a commitment to repurchase (Repos) are reclassified in the financial statements and
deducted from treasury bills balance. Securities borrowed or purchased according to a commitment to resell them (Reverse
Repos) are reclassified in the financial statements and added to treasury bills balance. The difference between sale and repur-
chase price is treated as interest and accrued over the life of the agreements using the effective interest rate method.
Investment property
The investment property represents lands and buildings owned by the Bank in order to obtain rental returns or capital gains and
therefore do not include real estate assets which the Bank is carrying out its operations through or those that have owned by the
Bank as settlement of debts. The accounting treatment is the same used with property and equipment.
2.12. Property and equipment
Lands and buildings comprise mainly branches and offices. All property, plant and equipment are stated at historical cost less depre-
ciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or as a separate asset, as appropriate, only when it is probable that
future economic benefits will flow to the Bank and the cost of the item can be measured reliably. All other repairs and mainte-
nance are charged to other operating expenses during the financial period in which they are incurred.
Buildings
Leasehold improvements
Furniture and safes
Air-conditioners
Vehicles
Computers and core systems
Fixtures and fittings
20 years.
3 years,
3-5 years.
5 years
5 years
3-4 years
3 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, on each balance sheet date. Depreciable
assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recovered. An asset’s carrying amount is written down immediately to its recoverable value if the asset’s carrying amount exceeds
its estimated recoverable amount. The recoverable amount is the higher of the asset’s fair value less costs to sell and value in use.
Gains and losses on disposals are determined by comparing the selling proceeds with the asset carrying amount and charged to
other operating expenses in the income statement.
2.13. Impairment of non-financial assets
Assets that have an indefinite useful life are not amortized -except goodwill- and are tested annually for impairment. Assets that
are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds
its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Assets are tested for impairment with
reference to the lowest level of cash generating unit(s). A previously recognized impairment loss relating to a fixed asset may be
reversed in part or in full when a change in circumstances leads to a change in the estimates used to determine the fixed asset’s
recoverable amount. The carrying amount of the fixed asset will only be increased up to the amount that the original impairment
not been recognized.
2.13.1. Goodwill
Goodwill is capitalized and represents the excess of acquisition cost over the fair value of the Bank’s share in the acquired entity’s
net identifiable assets on the date of acquisition. For the purpose of calculating goodwill, the fair values of acquired assets, liabili-
ties and contingent liabilities are determined by reference to market values or by discounting expected future cash flows. Goodwill
is included in the cost of investments in associates and subsidiaries in the Bank’s separate financial statements. Goodwill is tested
for impairment on an annual basis or shorter when trigger event took place, impairment loss is charged to the income statement.
Goodwill is allocated to the cash generating units for the purpose of impairment testing. The cash generating units represented
in the Bank main segments.
2.13.2. Other intangible assets
The intangible assets other than goodwill and computer programs (trademarks, licenses, contracts for benefits, the benefits of
contracting with clients).
Other intangible assets that are acquired by the Bank are recognized at cost less accumulated amortization and impairment
losses. Amortization is charged to the income statement on a straight-line basis over the estimated useful lives of the intangible
asset with definite life. Intangible assets with indefinite life are not amortized and tested for impairment.
2.14. Leases
The accounting treatment for the finance lease is complied with the instructions of Central Bank of Egypt, if the contract entitles
the lessee to purchase the asset at a specified date and predefined value. The other leases contracts are considered operating
leases contracts.
284 • CIB Annual Report • 2023
2023 • CIB Annual Report • 285
Financial Statements • Separate • 2.14.1. Being lessee
Finance lease contract recognizes the lease cost, including the cost of maintenance of the leased assets in the income statement
for the period in which they occurred. If the Bank decides to exercise the right to purchase the leased asset the leased assets are
capitalized and included in ‘property, plant and equipment’ and depreciated over the useful life of the expected remaining life of
the asset in the same manner as similar assets.
Operating lease payments leases are accounted for on a straight-line basis over the periods of the leases and are included in
‘general and administrative expenses’.
2.14.2. Being lessor
For finance lease, assets are recorded in the property and equipment in the balance sheet and amortized over the expected useful
life of this asset in the same manner as similar assets. Lease income is recognized on the basis of rate of return on the lease in
addition to an amount corresponding to the cost of depreciation for the period. The difference between the recognized rental
income and the total finance lease clients’ accounts is transferred to the in the income statement until the expiration of the lease
to be reconciled with a net book value of the leased asset. Maintenance and insurance expenses are charged to the income state-
ment when incurred to the extent that they are not charged to the tenant.
In case there is objective evidence that the Bank will not be able to collect the of financial lease obligations, the finance lease
payments are reduced to the recoverable amount.
For assets leased under operating lease it appears in the balance sheet under property, plant and equipment, and depreciated
over the expected useful life of the asset in the same way as similar assets, and the lease income recorded less any discounts given
to the lessee on a straight-line method over the contract period.
2.15. Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents comprise balances with less than three months’ maturity
from the date of acquisition, including cash and non-restricted balances with central banks, treasury bills and other eligible bills,
loans and advances to banks, amounts due from other banks and short-term government securities.
2.16. Other provisions
Provisions for restructuring costs and legal claims are recognized when the Bank has present legal or constructive obligations as
a result of past events; where it is more likely than not that a transfer of economic benefit will be necessary to settle the obligation,
and it can be reliably estimated.
In case of similar obligations, the related cash outflow should be determined in order to settle these obligations as a group. The
provision is recognized even in case of minor probability that cash outflow will occur for an item of these obligations.
When a provision is wholly or partially no longer required, it is reversed through profit or loss under other operating income (expenses).
Provisions for obligations, other than those for credit risk or employee benefits, due in more than 12 months from the balance
sheet date are recognized based on the present value of the best estimate of the consideration required to settle the present obli-
gation on the balance sheet date. An appropriate pretax discount rate that reflects the time value of money is used to calculate
the present value of such provisions. For obligations due within less than twelve months from the balance sheet date, provisions
are calculated based on undiscounted expected cash outflows unless the time value of money has a significant impact on the
amount of provision, then it is measured at the present value.
2.17. Share based payments
The Bank applies an equity-settled, share-based compensation plan. The fair value of equity instruments recognized as an
expense over the vesting period using appropriate valuation models, taking into account the terms and conditions upon
which the equity instruments were granted. The vesting period is the period during which all the specified vesting condi-
tions of a share-based payment arrangement are to be satisfied. Vesting conditions include service conditions, performance
conditions and market performance conditions are taken into account when estimating the fair value of equity instruments
on the date of grant. On each balance sheet date the number of options that are expected to be exercised are estimated.
Recognizes estimate changes, if any, in the income statement, and a corresponding adjustment to equity over the remaining
vesting period.
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share
premium when the options are exercised.
The bank’s contributions to the employees’ social insurance fund
Bank employees benefit from the Social Insurance Fund that has been established under the Law No. 64 of year 84 regarding alternative
social insurance systems. This system is considered an alternative to state regulations and is subject to the supervision of the Ministry
of Social Insurance. A Ministerial Resolution No. 22 of year 83 was issued regarding approval of the establishment of the Social Fund for
Employees. The bank is obliged to pay to the fund the contributions due for each month represented in the employer’s share and the
share of the insured and pay his obligations towards the fund in implementation of the provisions of the fund system. This is a system of
benefits enjoyed by employees, a system of specific benefits for the bank, according to the Egyptian accounting standards.
2.18. Income tax
Income tax on the profit and loss for the period and deferred tax are recognized in the income statement except for income tax
relating to items of equity that are recognized directly in equity.
Income tax is recognized based on net taxable profit using the tax rates applicable on the date of the balance sheet in addition
to tax adjustments for previous years.
Deferred taxes arising from temporary time differences between the book value of assets and liabilities are recognized in accordance
with the principles of accounting and value according to the foundations of the tax, this is determining the value of deferred tax on the
expected manner to realize or settle the values of assets and liabilities, using tax rates applicable on the date of the balance sheet.
Deferred tax assets of the Bank recognized when there is likely to be possible to achieve profits subject to tax in the future to be possible
through to use that asset, and is reducing the value of deferred tax assets with part of that will come from tax benefit expected during
the following years, that in the case of expected high benefit tax, deferred tax assets will increase within the limits of the above reduced.
2.19. Borrowings
Borrowings are recognized initially at fair value net of transaction costs incurred. Borrowings are subsequently stated at amor-
tized cost also any difference between proceeds net of transaction costs and the redemption value is recognized in the income
statement over the period of the borrowings using the effective interest method.
2.20. Dividends
Dividends on ordinary shares and profit sharing are recognized as a charge of equity upon the general assembly approval. Profit
sharing includes the employees’ profit share and the Board of Directors’ remuneration as prescribed by the Bank’s articles of
incorporation and the corporate law.
2.21. Comparatives
Comparative figures have been adjusted to conform with changes in the presentation of the current period where necessary.
2.22. Non-current assets held for sale
A non-current asset (or disposal group) to be classified as held for sale if its carrying amount will be recovered principally through
a sale transaction rather than through continuing use.
Determining whether (and when) an asset stops being recovered principally through use and becomes recoverable principally
through sale. For an asset (or disposal group) to be classified as held for sale:
(a) It must be available for immediate sale in its present condition, subject only to terms that are usual and customary for sales
of such assets (or disposal groups);
(b) Its sale must be highly probable;
The standard requires that non-current assets (and, in a ‘disposal group’, related liabilities and current assets,) meeting its criteria
to be classified as held for sale be:
(a) Measured at the lower of carrying amount and fair value less costs to sell, with depreciation on them ceasing; and
(b) Presented separately on the face of the statement of financial position with the results of discontinued operations presented
separately in the income statement.
286 • CIB Annual Report • 2023
2023 • CIB Annual Report • 287
Financial Statements • Separate • 2.23. Discontinued operation
Discontinued operation as ‘a component of an entity that either has been disposed of, or is classified as held for sale, and
(a) Represents a separate major line of business or geographical area of operations,
(b) Is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations or
(c) Is a subsidiary acquired exclusively with a view to resale.
When presenting discontinued operations in the income statement, the comparative figures should be adjusted as if the opera-
tions had been discontinued in the comparative period.
Important Accounting Estimates, and Judgements in Applying Accounting Policies
The bank makes estimates and assumptions that affect the amounts recognized, and the carrying amounts of assets and
liabilities within the next financial year. Estimates and judgements are continually evaluated and are based on management’s
experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Management also makes certain judgements, apart from those involving estimations, in the process of applying the accounting
policies. Judgements that have the most significant effect on the amounts recognized and estimates that can cause a significant
adjustment to the carrying amount of assets and liabilities within the next financial year include:
ECL measurement: Measurement of ECLs is a significant estimate that involves determination of methodology, models and data
inputs. The following components have a major impact on credit loss allowance: definition of default, SICR, probability of default
(“PD”), exposure at default (“EAD”), and loss given default (“LGD”), as well as forward-looking of macro-economic indicators.
The bank regularly reviews and validates the models and inputs to the models to reduce any gaps between expected credit loss
estimates and actual credit loss experience.
The bank used forward-looking information for measurement of ECL, primarily an outcome of its own macro-economic fore-
casting model. The most significant forward-looking assumptions, for both corporate, that correlate with ECL level and their
assigned weights were interest rate, GDP growth rate, Inflation rate and Foreign currency index. In addition to these assumptions
liquidity standard M2 and foreign direct investment have been used for the retail facilities portfolio.
A change in the assigned weight to the base scenario of the forward looking macro-economic variables by 10% towards the down-
turn scenario would result in an increase in ECL by EGP 1,817,837 thousand as of 31 December 2023 (31 December 2022: by EGP
1,188,080 thousand). A corresponding change towards the upturn scenario would result in a decrease in ECL by EGP 1,817,788
thousand as of 31 December 2023 (31 December 2022: by EGP 1,179,558 thousand). A 10% increase or decrease in LGD estimates
would result in an increase or decrease in total expected credit loss allowances of EGP 2,055,659 thousand at 31 December 2023
(31 December 2022: increase or decrease of EGP 1,530,366 thousand).
Significant increase in credit risk (“SICR”). In order to determine whether there has been a significant increase in credit risk,
the bank compares the risk of a default occurring over the life of a financial instrument at the end of the reporting date with the
risk of default at the date of initial recognition. The assessment considers relative increase in credit risk rather than achieving
a specific level of credit risk at the end of the reporting date using, Transition in risk ratings, delinquency status, number of
defaulted days and restructured status resulting from credit risk in addition to watch list. The bank considers all information
about actual or estimated negative changes at working environment , financial and economic circumstances and regulatory
jurisdiction which may affect negatively the ability of the borrower to settle outstanding’s dues. The bank identifies behavioral
indicators of increases in credit risk prior to delinquency and incorporated appropriate forward-looking information into the
credit risk assessment, either at an individual instrument, or on a portfolio level.
Business model assessment. The business model drives classification of financial assets. Management applied judgement in
determining the level of aggregation and portfolios of financial instruments when performing the business model assessment.
When assessing sales transactions, the bank considers their historical frequency, timing and value, reasons for the sales and
expectations about future sales activity. Sales transactions aimed at minimizing potential losses due to credit deterioration are
considered consistent with the “hold to collect” business model. Other sales before maturity, not related to credit risk manage-
ment activities, are also consistent with the “hold to collect” business model, provided that they are infrequent or insignificant in
value, both individually and in aggregate. The bank assesses significance of sales transactions by comparing the value of the sales
to the value of the portfolio subject to the business model assessment over the average life of the portfolio. In addition, sales of
financial asset expected only in stress case scenario, or in response to an isolated event that is beyond the bank’s control, is not
recurring and could not have been anticipated by the bank, are regarded as incidental to the business model objective and do not
impact the classification of the respective financial assets.
The “hold to collect and sell” business model means that assets are held to collect the cash flows, but selling is also integral to
achieving the business model’s objective, such as, managing liquidity needs, achieving a particular yield, or matching the dura-
tion of the financial assets to the duration of the liabilities that fund those assets.
The residual category includes those portfolios of financial assets, which are managed with the objective of realizing cash flows
primarily through sale, such as where a pattern of trading exists. Collecting contractual cash flow is often incidental for this
business model.
Assessment whether cash flows are solely payments of principal and interest (“SPPI”). Determining whether a financial
asset’s cash flows are solely payments of principal and interest required judgement.
The time value of money element may be modified, for example, if a contractual interest rate is periodically reset but the frequency
of that reset does not match the tenor of the debt instrument’s underlying base interest rate. The effect of the modified time
value of money was assessed by comparing relevant instrument’s cash flows against a benchmark debt instrument with SPPI
cash flows, in each period and cumulatively over the life of the instrument. The assessment was done for all reasonably possible
scenarios, including reasonably possible financial stress situation that can occur in financial markets.
3. Financial risk management
The Bank’s activities expose it to a variety of financial risks and those activities involve the analysis, evaluation, acceptance and manage-
ment of some degree of risk or combination of risks. Taking risk is core to the financial business, and the operational risks are an inevitable
consequence of being in business. The Bank’s aim is therefore to achieve an appropriate balance between risk and rewards and minimize
potential adverse effects on the Bank’s financial performance. The most important types of financial risks are credit risk, market risk,
liquidity risk and other operating risks. Also market risk includes exchange rate risk, rate of return risk and other prices risks.
The Bank’s risk management policies are designed to identify and analyze these risks, to set appropriate risk limits and controls,
and to monitor the risks and adherence to limits by means of reliable and up-to-date information systems. The Bank regularly
reviews its risk management policies and systems to reflect changes in markets, products and emerging best practice.
Risk management is carried out by risk department under policies approved by the Board of Directors. Bank treasury identifies,
evaluates and hedges financial risks in close co-operation with the Bank’s operating units.
The Board provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign
exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments. In addi-
tion, credit risk management is responsible for the independent review of risk management and the control environment.
3.1. Credit risk
The Bank takes on exposure to credit risk, which is the risk that counterparty will cause a financial loss for the Bank by failing to
discharge an obligation. Management therefore carefully manages its exposure to credit risk. Credit exposures arise principally
in loans and advances, debt securities and other bills. There is also credit risk in off-balance sheet financial arrangements such as
loan commitments. The credit risk management and control are centralized in a credit risk management team and reported to
the Board of Directors and head of each business unit regularly.
3.1.1. Credit risk measurement
3.1.1.1. Loans and advances to banks and customers
Bank’s rating
description of the grade
1
2
3
4
Performing loans
Regular watching
Watch list
Non-performing loans
Loss given default or loss severity represents the Bank expectation of the extent of loss on a claim should default occur. It is
expressed as percentage loss per unit of exposure and typically varies by type of counterparty, type and seniority of claim and
availability of collateral or other credit mitigation.
288 • CIB Annual Report • 2023
2023 • CIB Annual Report • 289
Financial Statements • Separate • 3.1.1.2. Debt instruments, Treasury Bills and Other Governmental Notes
For debt instruments and bills, by external rating agencies are used for assessing of the credit risk exposures, and if this rating is
not available, then other ways similar to those used with the credit customers are uses.
The investments in those securities and bills are viewed as a way to gain a better credit quality mapping and maintain a readily
available source to meet the funding requirement at the same time.
3.1.2. Risk limit control and mitigation policies
The Bank manages, limits and controls concentrations of credit risk wherever they are identified − in particular, to individual
counterparties and banks, and to industries and countries.
The Bank structures the levels of credit risk it undertakes by placing limits on the amount of risk accepted in relation to one
borrower, or groups of borrowers, and to geographical and industry segments. Such risks are monitored on a revolving basis
and subject to an annual or more frequent review, when considered necessary. Limits on the level of credit risk by individual,
counterparties, product, and industry sector and by country are approved quarterly by the Board of Directors.
The exposure to any one borrower including banks and brokers is further restricted by sub-limits covering on- and off-balance
sheet exposures, and daily delivery risk limits in relation to trading items such as forward foreign exchange contracts. Actual
exposures against limits are monitored daily.
Exposure to credit risk is also managed through regular analysis of the ability of borrowers and potential borrowers to meet
interest and capital repayment obligations and by changing these lending limits where appropriate.
Some other specific control and mitigation measures are outlined below:
3.1.2.1. Collateral
The Bank sets a range of policies and practices to mitigate credit risk. The most traditional of these is the taking of security for
funds advances,which is common practice. The Bank implements guidelines on the acceptability of specific classes of collateral
or credit risk mitigation. The principal collateral types for loans and advances are:
• Mortgages over residential properties.
• Mortgage business assets such as premises, and inventory.
• Mortgage financial instruments such as debt securities and equities.
Longer-term finance and lending to corporate entities are generally secured; revolving individual credit facilities are generally
unsecured. In addition, in order to minimize the credit loss the Bank will seek additional collateral from the counterparty as soon
as impairment indicators are noticed for the relevant individual loans and advances.
Collateral held as security for financial assets other than loans and advances is determined by the nature of the instrument. Debt
securities, treasury and other governmental securities are generally unsecured, with the exception of asset-backed securities and
similar instruments, which are secured by portfolios of financial instruments.
3.1.2.2. Derivatives
The Bank maintains strict control limits on net open derivative positions (i.e., the difference between purchase and sale contracts),
by both amount and term. At any one time, the amount subject to credit risk is limited to the current fair value of instruments that
are favorable to the Bank (i.e., assets with positive fair value), which in relation to derivatives is only a small fraction of the contract,
or notional values used to express the volume of instruments outstanding. This credit risk exposure is managed as part of the overall
lending limits with customers, together with potential exposures from market movements. Collateral or other security is not usually
obtained for credit risk exposures on these instruments, except where the Bank requires margin deposits from counterparties.
Settlement risk arises in any situation where a payment in cash, securities or equities is made in the expectation of a corresponding
receipt in cash, securities or equities. Daily settlement limits are established for each counterparty to cover the aggregate of all
settlement risk arising from the Bank market transactions on any single day.
3.1.2.3. Clearing house
The Bank further restricts its exposure to credit losses by entering into master netting arrangements with counterparties with
which it undertakes a significant volume of transactions. Master netting arrangements do not generally result in an offset of
balance sheet assets and liabilities, as transactions are usually settled on a gross basis. However, the credit risk associated with
favorable contracts is reduced by a master netting arrangement to the extent that if a default occurs, all amounts with the coun-
terparty are terminated and settled on a net basis. The Bank overall exposure to credit risk on derivative instruments subject to
master netting arrangements can change substantially within a short period, as it is affected by each transaction subject to the
arrangement.
3.1.2.4. Credit related commitments
The primary purpose of these instruments is to ensure that funds are available to a customer as required. Guarantees and standby
letters of credit carry the same credit risk as loans. Documentary and commercial letters of credit - which are written undertak-
ings by the Bank on behalf of a customer authorizing a third party to draw drafts on the Bank up to a stipulated amount under
specific terms and conditions - are collateralized by the underlying shipments of goods to which they relate and therefore carry
less risk than a direct loan.
Commitments to extend credit represent unused portions of authorizations to extend credit in the form of loans, guarantees or
letters of credit. With respect to credit risk on commitments to extend credit, the Bank is potentially exposed to loss in an amount
equal to the total unused commitments. However, the likely amount of loss is less than the total unused commitments, as most
commitments to extend credit are contingent upon customers maintaining specific credit standards. The Bank monitors the
term to maturity of credit commitments because longer-term commitments generally have a greater degree of credit risk than
shorter-term commitments.
3.1.3. Impairment and provisioning policies
The internal rating system described in Note 3.1.1 focus on the credit-quality mapping from the lending and investment activities
perspective. Conversely, for only financial reporting purposes impairment losses are recognized for that has been incurred on the
balance sheet date when there is an objective evidence of impairment. for internal operational management.
The impairment provision reported in balance sheet at the end of the year is derived from each of the four internal credit risk
ratings. However, the majority of the impairment provision is usually driven by the last two rating degrees. The following table
illustrates the proportional distribution of loans and advances reported in the balance sheet for each of the four internal credit
risk ratings of the Bank and their relevant impairment losses:
Bank’s rating
1-Performing loans
2-Regular watching
3-Watch list
4-Non-Performing loans
December 31, 2023
December 31, 2022
Loans and advances
(%)
Impairment
provision
(%)
Loans and
advances
(%)
Impairment
provision
(%)
81.88
14.01
0,57
3,54
32.91
36.75
2.54
27.8
78,41
15,05
1,73
4,81
22,93
25,12
12,81
39,14
290 • CIB Annual Report • 2023
2023 • CIB Annual Report • 291
Financial Statements • Separate • The internal rating tools assists management to determine whether objective evidence of impairment exists, based on the
following criteria set by the Bank:
3.1.5. Maximum exposure to credit risk before collateral held
• Cash flow difficulties experienced by the borrower or debtor
• Breach of loan covenants or conditions
• Initiation of bankruptcy proceedings
• Deterioration of the borrower’s competitive position
• Bank granted concessions may not be approved under normal circumstances due to economic, legal reasons and financial
difficulties facing the borrower
• Deterioration of the collateral value
• Deterioration of the credit situation
The Bank’s policy requires the review of all financial assets that are above materiality thresholds at least annually or more regu-
larly when circumstances require. Impairment provisions on individually assessed accounts are determined by an evaluation of
the incurred loss at balance-sheet date, and are applied to all significant accounts individually. The assessment normally encom-
passes collateral held (including re-confirmation of its enforceability) and the anticipated receipts for that individual account.
Collective impairment provisions are provided portfolios of homogenous assets by using the available historical loss experience,
experienced judgment and statistical techniques.
3.1.4. Model of measuring the general banking risk
In addition to the four categories of the Bank’s internal credit ratings indicated in note 3.1.1, management classifies based on
more detailed subgroups to comply with CBE requirements.
The Bank calculates required provisions for impairment of assets exposed to credit risk, including commitments relating to credit
on the basis of rates determined by CBE. In case, the provision required for impairment losses as per CBE credit worthiness
rules exceeds the required provisions by the application used in balance sheet preparation in accordance to the International
Financial Reporting Standard (9) issued by the Central Bank of Egypt on February 26, 2019 . That excess shall be added to the
general banking risk reserve in the equity section. Such reserve is always adjusted, on a regular basis, by any increase or decrease
so, that reserve shall always be equivalent to the amount of increase between the two provisions. Such reserve is not available for
distribution.
Below is a statement of institutional worthiness according to internal ratings, compared to CBE ratings and rates of provisions
needed for assets impairment related to credit risk:
CBE Rating
Categorization
Provision%
Internal
rating
1
2
3
4
5
6
7
8
9
10
Low risk
Average risk
Satisfactory risk
Reasonable risk
Acceptable risk
Marginally
acceptable risk
Watch list
Substandard
Doubtful
Bad debts
0%
1%
1%
2%
2%
3%
5%
20%
50%
100%
1
1
1
1
1
2
3
4
4
4
Categorization
Performing loans
Performing loans
Performing loans
Performing loans
Performing loans
Regular watching
Watch list
Non performing
loans
Non performing
loans
Non performing
loans
In balance sheet items exposed to credit risk
Cash and balances at the central bank
Gross Due from banks
Less: ECL
Gross loans and advances to banks
Less: ECL
Gross loans and advances to customers
Individual:
- Overdraft
- Credit cards
- Personal loans
- Mortgages
Corporate:
- Overdraft
- Direct loans
- Syndicated loans
- Other loans
Unamortized bills discount
Unamortized syndicated loans discount
ECL
Suspended credit account
Derivative financial instruments
Financial investments:
-Debt instruments
Other assets (Accrued revenues)
Total
Off balance sheet items exposed to credit risk
Financial guarantees
Customers acceptances
Letters of credit (import and export)
Letter of guarantee
Total
EGP Thousands
Dec.
31, 2023
71,747,343
230,709,611
(192)
823,739
(1,291)
2,922,161
10,297,598
42,508,494
4,336,631
54,824,060
98,468,654
51,311,552
434,524
(509,523)
(145,003)
(29,127,204)
(1,497,199)
1,101,896
Dec.
31, 2022
47,384,574
133,815,430
(49,234)
2,988,410
(10,213)
2,123,198
7,636,331
40,137,967
3,389,908
42,468,290
78,030,082
44,722,871
124,453
(678,795)
(221,018)
(24,402,014)
(709,985)
1,939,961
268,801,918
13,018,038
820,025,807
236,120,516
11,437,147
626,247,879
8,021,170
4,631,478
9,068,007
160,735,346
182,456,001
8,977,208
3,482,249
8,464,457
123,040,556
143,964,470
The above table represents the Bank’s Maximum exposure to credit risk on December 31, 2023, before taking into account any held collateral.
For assets recognized on balance sheet, the exposures set out above are based on net carrying amounts as reported in the balance sheet.
As shown above, 28.61% of the total maximum exposure is derived from loans and advances to banks and customers against
31.23% on December 31, 2022, while investments in debt instruments represent 32.78% against 37.70% on December 31, 2022.
Management is confident in its ability to continue to control and sustain minimal exposure of credit risk resulting from both the
bank’s loans and advances portfolio and debt instruments based on the following:
• 95.89% of the loans and advances are concentrated in the top two grades of the internal credit risk rating system against 93.45% on
December 31, 2022
• Loans and advances assessed individualy are valued EGP 9,413,975 thousand against EGP 10,663,438 thousand on December 31, 2022
• The Bank has implemented more prudent processes when granting loans and advances during the financial year ended on December
31, 2023.
• 88.41% of the investments in debt Instruments are Egyptian sovereign instruments against 89.73% on December 31, 2022.
292 • CIB Annual Report • 2023
2023 • CIB Annual Report • 293
Financial Statements • Separate • 3.1.6. Loans and advances
Loans and advances are summarized as follows:
Dec.31, 2023
Dec.31, 2022
Loans and
advances
tocustomers
Loans and
advances
to banks
Loans and
advances to
customers
Loans and
advances
to banks
EGP Thousands
Gross Loans and advances
265,103,674
823,739
218,633,100
2,988,410
Less:
ECL
Unamortized bills discount
Unamortized syndicated loans discount
Suspended credit account
Net
29,127,204
509,523
145,003
1,497,199
233,824,745
1,291
-
-
-
822,448
24,402,014
678,795
221,018
709,985
192,621,288
10,213
-
-
-
2,978,197
Expected credit losses for loans and advances totaled EGP 29,128,495 thousand. During the year, the Bank’s total loans and
advances increased by 19.99% In order to minimize the probable exposure to credit risk, the Bank focuses more on conducting
business with large enterprises, banks and retail customers with good credit rating or sufficient collateral.
Off balance sheet items exposed to credit risk and expected credit losses divided by stages:
Dec.31, 2023
Facilities and guarantees
Expected credit losses
Net
EGP Thousands
Stage 1:
12 months
113,360,811
(5,121,964)
108,238,847
Stage 2:
Life time
55,000,921
(3,391,432)
51,609,489
Stage 3:
Life time
6,073,099
(2,150,455)
3,922,644
Total
174,434,831
(10,663,851)
163,770,980
Total balances of loans and facilities divided by stages:
Dec.31, 2022
Individuals
Corporate and Business Banking
Total
Stage 1:
12 months
47,271,035
90,991,045
138,262,080
Stage 2:
Life time
5,241,042
64,466,540
69,707,582
EGP Thousands
Stage 3:
Life time
775,327
9,888,111
10,663,438
Total
53,287,404
165,345,696
218,633,100
Total balances of loans and facilities to customers divided by stages:
Expected credit losses for loans and facilities to customers divided by stages :
Dec.31, 2023
Individuals
Corporate and Business Banking
Total
Stage 1:
12 months
53,593,845
128,180,946
181,774,791
Stage 2:
Life time
5,643,833
68,271,075
73,914,908
EGP Thousands
Stage 3:
Life time
827,206
8,586,769
9,413,975
Total
60,064,884
205,038,790
265,103,674
Expected credit losses for loans and facilities to customers divided by stages:
EGP Thousands
Stage 1:
Expected
credit
losses over
12 months
1,547,894
4,398,818
5,946,712
Stage 2:
Expected
credit losses
Over a
lifetime
that is not
creditworthy
205,268
14,876,507
15,081,775
Stage 3:
Expected
credit
losses
Over a
lifetime
Credit
default
477,297
7,621,420
8,098,717
Total
2,230,459
26,896,745
29,127,204
Dec.31, 2023
Individuals
Corporate and Business Banking
Total
Loans, advances and expected credit losses to banks divided by stages:
Dec.31, 2023
Time loans
Expected credit losses
Net
294 • CIB Annual Report • 2023
EGP Thousands
Stage 1:
12 months
86,495
-
86,495
Stage 2:
Life time
737,244
(1,291)
735,953
Stage 3:
Life time
-
-
-
Total
823,739
(1,291)
822,448
EGP Thousands
Stage 1:
Expected
credit
losses over
12 months
1,023,758
2,605,958
3,629,716
Stage 2:
Expected
credit
losses Over
a lifetime
that is not
creditworthy
171,630
11,044,132
11,215,762
Stage 3:
Expected
credit
losses
Over a
lifetime
Credit
default
386,953
9,169,583
9,556,536
Total
1,582,341
22,819,673
24,402,014
Dec.31, 2022
Individuals
Corporate and Business Banking
Total
Loans and advances and expected credit losses to banks divided by stages:
Dec.31, 2022
Time loans
Expected credit losses
Net
EGP Thousands
Stage 1:
12 months
-
-
-
Stage 2:
Life time
2,988,410
(10,213)
2,978,197
Stage 3:
Life time
-
-
-
Total
2,988,410
(10,213)
2,978,197
2023 • CIB Annual Report • 295
Financial Statements • Separate •
Off balance sheet items exposed to credit risk and expected credit losses divided by stages:
Individual Loans:
Dec.31, 2022
Facilities and guarantees
Expected credit losses
Net
EGP Thousands
Stage 1:
12 months
84,304,802
(3,560,010)
80,744,792
Stage 2:
Life time
45,046,087
(1,443,926)
43,602,161
Stage 3:
Life time
5,636,373
(1,670,378)
3,965,995
Total
134,987,262
(6,674,314)
128,312,948
Expected credit losses divided by internal classification:
Corporate and Business Banking:
Dec.31, 2023
Performing loans (1-5)
Regular watching (6)
Watch list (7)
Non-performing loans (8-10)
Scope of
probability
of default
(PD)
1% - 10%
11% <
11% <
100%
Stage 1:
12 months
53,593,845
-
-
-
Stage 2:
Life time
-
5,605,156
38,677
-
Stage 3:
Life time
-
-
-
827,206
Total
53,593,845
5,605,156
38,677
827,206
EGP Thousands
EGP Thousands
Expected credit losses divided by internal classification:
Corporate and Business Banking loans:
Scope of
probability
of default
(PD)
1%-12%
12%-21%
21%-37%
100%
Stage 1:
Expected
credit
losses over
12 months
3,502,001
896,817
-
-
Stage 2:
Expected
credit
losses Over
a lifetime
that is not
creditworthy
4,535,215
9,601,363
739,929
-
Stage 3:
Expected
credit
losses Over
a lifetime
Credit
default
-
-
-
7,621,420
Total
8,037,216
10,498,180
739,929
7,621,420
EGP Thousands
Scope of
probability
of default
(PD)
1% - 10%
11% <
11% <
100%
Stage 1:
Expected
credit
losses over
12 months
1,547,894
-
-
-
Stage 2:
Expected
credit losses
Over a lifetime
that is not
creditworthy
-
205,184
84
-
Stage 3:
Expected
credit
losses Over
a lifetime
Credit
default
-
-
-
477,297
Total
1,547,894
205,184
84
477,297
Dec.31, 2023
Performing loans (1-5)
Regular watching (6)
Watch list (7)
Non-performing loans (8-10)
Individual Loans:
Dec.31, 2023
Performing loans (1-5)
Regular watching (6)
Watch list (7)
Non-performing loans (8-10)
The total balances of loans and facilities divided according to the internal classification:
Corporate and Business Banking:
EGP Thousands
Scope of
probability
of default
(PD)
1%-12%
12%-21%
21%-37%
100%
Stage 1:
12 months
116,503,071
11,677,875
-
-
Stage 2:
Life time
46,809,570
19,989,275
1,472,230
-
Stage 3:
Life time
-
-
-
8,586,769
Total
163,312,641
31,667,150
1,472,230
8,586,769
Dec.31, 2023
Performing loans (1-5)
Regular watching (6)
Watch list (7)
Non-performing loans (8-10)
296 • CIB Annual Report • 2023
EGP Thousands
Scope of
probability
of default
(PD)
1%-11%
11%-22%
22%-38%
100%
Stage 1:
Expected
credit
losses over
12 months
2,040,754
565,204
-
-
Stage 2:
Expected
credit
losses Over
a lifetime
that is not
creditworthy
2,522,526
5,394,713
3,126,893
-
Stage 3:
Expected
credit
losses Over
a lifetime
Credit
default
-
-
1,203
9,168,380
Total
4,563,280
5,959,917
3,128,096
9,168,380
EGP Thousands
Scope of
probability
of default
(PD)
1% - 9%
10% <
10% <
100%
Stage 1:
Expected
credit
losses over
12 months
1,023,758
-
-
-
Stage 2:
Expected
credit
losses Over
a lifetime
that is not
creditworthy
Stage 3:
Expected
credit
losses Over
a lifetime
Credit
default
-
171,629
1
-
-
-
-
386,953
Total
1,023,758
171,629
1
386,953
Dec.31, 2022
Performing loans (1-5)
Regular watching (6)
Watch list (7)
Non-performing loans (8-10)
Individual Loans:
Dec.31, 2022
Performing loans (1-5)
Regular watching (6)
Watch list (7)
Non-performing loans (8-10)
2023 • CIB Annual Report • 297
Financial Statements • Separate •
The total balances of loans and facilities divided according to the internal classification:
Corporate and Business Banking loans:
The following table provides information on the quality of financial assets during the financial year:
EGP Thousands
Stage 1:
12 months
81,251,018
9,740,027
-
-
Stage 2:
Life time
42,257,778
18,365,641
3,843,121
-
Stage 3:
Life time
-
-
1,203
9,886,908
Total
123,508,796
28,105,668
3,844,324
9,886,908
Dec.31, 2023
Individual Loans:
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
Less: ECL
Net
EGP Thousands
Stage 1
12 months
Stage 2
Life time
Stage 3
Life time
53,593,845
-
-
-
53,593,845
(1,547,894)
52,045,951
-
5,605,156
38,677
-
5,643,833
(205,268)
5,438,565
-
-
-
827,206
827,206
(477,297)
349,909
Total
53,593,845
5,605,156
38,677
827,206
60,064,884
(2,230,459)
57,834,425
EGP Thousands
Dec.31, 2023
EGP Thousands
Corporate and Business Banking:
Stage 1
12 months
Stage 2
Life time
Stage 3
Life time
Dec.31, 2022
Performing loans (1-5)
Regular watching (6)
Watch list (7)
Non-performing loans (8-10)
Individual Loans:
Dec.31, 2022
Performing loans (1-5)
Regular watching (6)
Watch list (7)
Non-performing loans (8-10)
Scope of
probability
of default
(PD)
1%-11%
11%-22%
22%-38%
100%
Scope of
probability
of default
(PD)
1% - 9%
10% <
10% <
100%
Stage 1:
12 months
47,271,035
-
-
-
Stage 2:
Life time
-
5,241,005
37
-
Stage 3:
Life time
-
-
-
775,327
Total
47,271,035
5,241,005
37
775,327
The following table provides information on the quality of financial assets subject to ECL calculation during the financial year:
Dec.31, 2023
Due from banks
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
Less: ECL
Net
EGP Thousands
Stage 1
12 months
Stage 2
Life time
Stage 3
Life time
5,005,918
-
-
-
5,005,918
(192)
5,005,726
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
5,005,918
-
-
-
5,005,918
(192)
5,005,726
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
Less: ECL
Net
Dec.31, 2023
Debt Instruments at Fair value through OCI
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
ECL
Dec.31, 2023
Total
163,312,641
31,667,150
1,472,230
8,586,769
116,503,071
11,677,875
-
-
46,809,570
19,989,275
1,472,230
-
-
-
-
8,586,769
128,180,946
68,271,075
8,586,769
205,038,790
(4,398,818)
(14,876,507)
(7,621,420)
(26,896,745)
123,782,128
53,394,568
965,349
178,142,045
Stage 1
12 months
Stage 2
Life time
Stage 3
Life time
Total
EGP Thousands
183,003,634
47,951,170
-
-
230,954,804
(2,864,298)
-
-
-
-
-
-
-
-
-
-
-
-
183,003,634
47,951,170
-
-
230,954,804
(2,864,298)
EGP Thousands
Debt Instruments at amortized cost
Stage 1
12 months
Stage 2
Life time
Stage 3
Life time
Total
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
ECL
Net
33,966,077
4,071,573
-
-
38,037,650
(190,536)
37,847,114
-
-
-
-
-
-
-
-
-
-
-
-
-
-
33,966,077
4,071,573
-
-
38,037,650
(190,536)
37,847,114
298 • CIB Annual Report • 2023
2023 • CIB Annual Report • 299
Financial Statements • Separate •
The following table provides information on the quality of financial assets subject to ECL calculation during the financial year:
Dec.31, 2022
EGP Thousands
Debt Instruments at Fair value through OCI
Dec.31, 2022
Due from banks
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
Less: ECL
Net
Stage 1
12 months
Stage 2
Life time
Stage 3
Life time
3,958,944
15,639,858
-
-
19,598,802
(38,726)
19,560,076
-
6,095,598
-
-
6,095,598
(10,508)
6,085,090
-
-
-
-
-
-
-
Total
3,958,944
21,735,456
-
-
25,694,400
(49,234)
25,645,166
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
ECL
Dec.31, 2022
Stage 1
12 months
Stage 2
Life time
Stage 3
Life time
Total
EGP Thousands
162,694,379
39,247,384
-
-
201,941,763
(979,945)
-
-
-
-
-
-
-
-
-
-
-
-
162,694,379
39,247,384
-
-
201,941,763
(979,945)
EGP Thousands
Debt Instruments at amortized cost
Stage 1
12 months
Stage 2
Life time
Stage 3
Life time
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
ECL
Net
31,022,180
3,227,477
-
-
34,249,657
(70,904)
34,178,753
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
31,022,180
3,227,477
-
-
34,249,657
(70,904)
34,178,753
The following tables provides information on the quality of financial assets during the financial year:
Dec.31, 2022
Individual Loans:
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
Less: ECL
Net
Dec.31, 2022
EGP Thousands
Stage 1
12 months
Stage 2
Life time
Stage 3
Life time
47,271,035
-
-
-
47,271,035
(1,023,758)
46,247,277
-
5,241,005
37
-
5,241,042
(171,630)
5,069,412
-
-
-
775,327
775,327
(386,953)
388,374
Total
47,271,035
5,241,005
37
775,327
53,287,404
(1,582,341)
51,705,063
EGP Thousands
Corporate and Business Banking:
Stage 1
12 months
Stage 2
Life time
Stage 3
Life time
Total
Credit rating
Performing loans
Regular watching
Watch list
Non-performing loans
Total
Less: ECL
Net
81,251,018
9,740,027
-
-
90,991,045
(2,605,958)
88,385,087
42,257,778
18,365,641
3,843,121
-
64,466,540
(11,044,132)
53,422,408
123,508,796
28,105,668
3,844,324
9,886,908
165,345,696
(22,819,673)
142,526,023
1,203
9,886,908
9,888,111
(9,169,583)
718,528
300 • CIB Annual Report • 2023
2023 • CIB Annual Report • 301
Financial Statements • Separate •
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2023 • CIB Annual Report • 303
Financial Statements • Separate •
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304 • CIB Annual Report • 2023
2023 • CIB Annual Report • 305
Financial Statements • Separate •
Loans and advances restructured
Restructuring activities include rescheduling arrangements, applying obligatory management programs, modifying and deferral
of payments. The application of restructuring policies are based on indicators or criteria of credit performance of the borrower
that is based on the personal judgment of the management, which indicate that payment will most likely continue. Restructuring
is commonly applied to term loans, specially customer loans. Renegotiated loans totaled at the end of the year are as follows :
Loans and advances to customer
Corporate
- Direct loans
Total
EGP Thousands
Dec.31,
2022
Dec.31,
2023
18,448,475
18,448,475
17,200,504
17,200,504
3.1.7. Financial investments:
The following table provides analysis of financial investment balances by rating agencies at the end of the year:
Dec.31, 2023
Amortized cost
AAA
AA + to AA -
A+ to A -
Less than A -
Not rated
Total
Dec.31, 2023
Fair value through OCI
AAA
AA + to AA-
A+ to A-
Less than A-
Not rated
Total
Stage 1:
12 months
-
-
-
37,847,114
-
37,847,114
Stage 1:
12 months
-
-
-
230,954,804
-
230,954,804
Stage 2:
Life time
-
-
-
-
-
-
Stage 2:
Life time
-
-
-
-
-
-
EGP Thousands
Stage 3:
Life time
-
-
-
-
-
-
Individually
impaired
-
-
-
-
-
-
Total
-
-
-
37,847,114
-
37,847,114
EGP Thousands
Stage 3:
Life time
-
-
-
-
-
-
Individually
impaired
-
-
-
-
-
-
Total
-
-
-
230,954,804
-
230,954,804
The following table displays the analysis of expected credit losses of financial investments by rating agencies at the end of the year:
Dec.31, 2023
Fair value through OCI
& Amortized cost
AAA
AA+ to AA-
A+ to A-
Less than A-
Not rated
Total
306 • CIB Annual Report • 2023
EGP Thousands
Stage 1:
Expected
credit
losses
over 12
months
-
-
-
3,054,834
-
3,054,834
Stage 2:
Expected
credit losses
Over a lifetime
that is not
creditworthy
-
-
-
-
-
-
Stage 3:
Expected
credit
losses
Over a
lifetime
Credit
default
-
-
-
-
-
-
Individually
impaired
-
-
-
-
-
-
Total
-
-
-
3,054,834
-
3,054,834
3.1.7. Financial investments:
The following table analyzes financial investment balances by rating agencies at the end of the year:
Dec.31, 2022
Amortized cost
AAA
AA + to AA-
A + to A-
Less than A-
Not rated
Total
EGP Thousands
Stage 1:
12 months
Stage 2:
Life time
Stage 3:
Life time
Individually
impaired
-
-
-
34,178,753
-
34,178,753
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
-
-
-
34,178,753
-
34,178,753
Dec.31, 2022
Fair value through OCI
Stage 1:
12 months
Stage 2:
Life time
Stage 3:
Life time
Individually
impaired
AAA
AA + to AA-
A + to A-
Less than A-
Not rated
Total
-
-
-
201,941,763
-
201,941,763
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
-
-
-
201,941,763
-
201,941,763
EGP Thousands
The following table displays analysis of impairment on credit losses of financial investments by rating agencies at the end of the year:
Dec.31, 2022
Fair value through OCI
& Amortized cost
AAA
A A+ to AA-
A + to A-
Less than A-
Not rated
Total
Stage 2:
Expected
credit losses
Over a
lifetime
that is not
creditworthy
Stage 3:
Expected
credit
losses
Over a
lifetime
Credit
default
-
-
-
-
-
-
-
-
-
-
-
-
Stage 1:
Expected
credit
losses
over 12
months
-
-
-
1,050,849
-
1,050,849
EGP Thousands
Individually
impaired
-
-
-
-
-
-
Total
-
-
-
1,050,849
-
1,050,849
2023 • CIB Annual Report • 307
Financial Statements • Separate •
3.1.8. Concentration of risks of financial assets with credit risk exposure
3.1.8.1. Geographical sectors
Following is a breakdown of the Bank’s main credit exposure at their book values categorized by geographical region at the end
of the year.
The Bank has allocated exposures to regions based on the country of domicile of its counterparties.
s
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Dec.31, 2023
Cash and balances at the central bank
Gross due from banks
Less: ECL
Gross loans and advances to banks
Less: ECL
Gross loans and advances to customers
Individual:
- Overdrafts
- Credit cards
- Personal loans
- Mortgages
Corporate:
- Overdrafts
- Direct loans
- Syndicated loans
- Other loans
Unamortized bills discount
Unamortized syndicated loans discount
ECL
Suspended credit account
Derivative financial instruments
Financial investments:
-Debt instruments
Total
Total as at December 31, 2022
EGP Thousands
Cairo
71,747,343
230,709,611
(192)
823,739
(1,291)
2,170,271
8,169,218
30,168,288
4,111,504
48,947,119
64,287,140
48,285,122
208,060
(479,204)
(145,003)
(22,385,965)
(1,496,706)
1,101,896
Alex, Delta
and Sinai
Upper
Egypt
-
-
-
-
-
593,886
1,823,675
10,055,677
195,951
4,454,786
26,635,089
3,026,430
226,464
(30,319)
-
(4,175,424)
(336)
-
-
-
-
-
-
158,004
304,705
2,284,529
29,176
1,422,155
7,546,425
-
-
-
-
(2,565,815)
(157)
-
Total
71,747,343
230,709,611
(192)
823,739
(1,291)
2,922,161
10,297,598
42,508,494
4,336,631
54,824,060
98,468,654
51,311,552
434,524
(509,523)
(145,003)
(29,127,204)
(1,497,199)
1,101,896
268,801,918
755,022,868
570,482,201
-
42,805,879
35,113,647
-
9,179,022
9,214,884
268,801,918
807,007,769
614,810,732
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308 • CIB Annual Report • 2023
2023 • CIB Annual Report • 309
Financial Statements • Separate •
3.2. Market risk
Market Risks represent the potential losses resulting from unfavorable movements in market prices that may negatively affect
the values of the bank’s investment positions linked to the bank’s balance sheet as a whole, which in turn affects the bank’s profit-
ability and its capital base. These investments are represented in debt instruments, stocks, or investment funds, in addition to
the currency exchange rate risks. Market risk results from open positions of the rate of return, currencies, and equity products,
as each of them is exposed to general and specific risks in the market and changes in the level of sensitivity to market rates or to
prices such as interest rates, exchange rates and prices of equity instruments.
The bank distinguishes between the trading Book portfolio and the Banking Book portfolio in measuring market risks, as the
trading portfolio includes instruments held for the purpose of resale or taken by the bank to benefit in the short term from the
actual or expected difference between the buying and selling prices or benefiting from any changes that may occur in the return
rates and any other prices that affect the trading portfolio, in addition to the financial derivative positions used for the purpose
of hedging The banking book portfolio for non-trading purposes includes instruments acquired that are salable or held until
settlement dates and managing the return rate of assets and liabilities.
As part of market risk management, the bank performs several hedging strategies, as well as entering into interest rate swap
contracts in order to balance the risk associated with debt instruments and long-term loans. Periodic reports on market risks are
submitted to the Board of Directors and the members of the Assets and Liabilities Committee (ALCO).
3.2.1. Market risk measurement techniques
3.2.1.1. Value at Risk
The Bank applies a “Value at Risk” methodology (VaR) to its trading and non-trading portfolios, to estimate the market risk of
positions held and the maximum losses expected under normal market conditions, based upon a number of assumptions for
various changes in market conditions.
VaR is a statistically based estimate of the potential loss on the current portfolio from adverse market movements. It expresses
the‘maximum’ amount the Bank might lose , but only to a certain level of confidence (99%). There is therefore a specified statistical
probability (1%) that actual loss could be greater than the VaR estimate. The VaR model assumes a certain ‘holding period’ until
positions can be closed ( 1 Day). The Bank assesses the historical movements in the market prices based on volatilities and correla-
tions. The use of this approach does not prevent losses outside of these limits in the event of more significant market movements.
As VaR constitutes an integral part of the Bank’s market risk control regime, the Market Risk Management set VaR Limits, for the
trading book, which have been approved by the board, and are monitored and reported on a daily basis to the Senior Management.
In addition, monthly limits compliance is reported to the ALCO.
The Bank is calculating the Market Risk Capital Requirements by applying Basel II “Standardised Measurement Method”,
according to the Central Bank of Egypt regulatory requirements.
3.2.1.2. Stress testing
Stress tests provide an indication of the potential size of losses that could arise under extreme market conditions. Therefore, the
bank computes on a daily basis trading Stressed VaR, combined with the trading VaR, to capture the abnormal movements in
financial markets and to give more comprehensive picture of risk. The results of the stress tests are reviewed by the ALCO on a
monthly basis and the board risk committee on a quarterly basis.
3.2.2. Value at risk (VaR) Summary
Last 12 months ended 31/12/2023
Last 12 months ended 31/12/2022
EGP Thousands
Total VaR by risk type
Medium
Foreign exchange risk
Interest rate risk
- For non trading purposes
- For trading purposes
Portfolio managed by others
risk
Total VaR
16,184
257,479
255,617
1,862
High
103,290
502,517
495,768
6,749
Low
Medium
228
139,481
139,248
233
12,300
154,140
154,140
-
High
84,183
257,980
257,980
-
-
-
-
323
8,739
Low
117
79,399
79,399
-
-
135,847
309,967
58,224
157,529
256,962
86,401
Last 12 months ended 31/12/2023
Last 12 months ended 31/12/2022
Trading portfolio
VaR by risk type
Foreign exchange risk
Interest rate risk
- For trading purposes
Portfolio managed by others risk
Total VaR
Medium
16,184
1,862
1,862
-
16,184
High
103,290
6,749
6,749
-
103,290
Low
Medium
228
233
233
-
228
12,300
-
-
323
12,469
High
84,183
-
-
8,739
84,183
Low
117
-
-
-
117
Non trading portfolio
VaR by risk type
- Interest rate risk
Total VaR
Last 12 months ended 31/12/2023
Last 12 months ended 31/12/2022
Medium
255,617
255,617
High
495,768
495,768
Low
Medium
139,248
139,248
154,140
154,140
High
257,980
257,980
Low
79,399
79,399
The three previous outcomes of the VAR were calculated independently from the positions involved and historical market move-
ments. The aggregate value at risk for trading and non-trading is not the Bank’s risk value because of the correlation between
types of risks.
310 • CIB Annual Report • 2023
2023 • CIB Annual Report • 311
Financial Statements • Separate • 3.2.3. Foreign exchange risk
The Bank’s financial position and cash flows are exposed to fluctuations in foreign currency exchange rates. The Board sets limits on the
level of exposure by currency and in aggregate for both overnight and intra-day positions, which are monitored daily. The table below
summarizes the Bank’s exposure to foreign exchange rate risk and financial instruments at carrying amounts, categorized by currency.
Dec.31, 2023
EGP
USD
EUR
GBP
Other
Total
Equivalent EGP Thousands
Financial assets
Cash and balances at the central bank
Gross due from banks
Gross loans and advances to banks
Gross loans and advances to customers
Derivative financial instruments
Financial investments
Gross financial investment securities
Investments in associates and subsidiaries
Total financial assets
Financial liabilities
Due to banks
Due to customers
Derivative financial instruments
Issued debt instruments
Other loans
Total financial liabilities
Net on-balance sheet financial position
Total financial assets as of
December 31, 2022
Total financial liabilities as of
December 31, 2022
Net financial position as of
December 31, 2022
68,283,327
175,148,470
34,558
191,787,867
624,313
2,155,414
51,941,319
789,181
67,196,964
477,583
769,502
1,358,494
-
6,003,208
-
115,866
1,950,061
-
4,847
-
423,234
311,267
-
110,788
-
71,747,343
230,709,611
823,739
265,103,674
1,101,896
218,182,631
316,251
48,396,859
-
654,377,417 170,957,320
3,748,758
-
11,879,962
-
-
2,070,774
-
355,274
270,328,248
671,525
1,200,563 840,486,036
531,455
463,443,996
45,916
-
226,917
545,424
11,335,981
21,955,120
186,935,213
-
95,018
-
3,073,349
170,520
12,086,470
464,248,284 213,526,031
22,671,064
190,129,133 (42,568,711) (10,791,102)
9,961
1,991,338
-
-
-
2,001,299
69,475
4,563
984,409
-
-
-
12,427,384
675,310,076
140,934
3,073,349
12,483,907
988,972 703,435,650
211,591 137,050,386
452,351,369 169,140,657
18,505,653
1,496,980
1,506,948 643,001,607
369,950,367 157,112,832
15,222,166
1,426,653
544,069 544,256,087
82,401,002
12,027,825
3,283,487
70,327
962,879
98,745,520
3.2.4. Interest rate risk
The Bank addresses exposure to the effects of fluctuations in the prevailing levels of market interest rates on both its fair value and
cash flow risks. Interest margins may increase as a result of such changes but profit may decrease as a consequence unexpected
movements.The Board sets limits on the gaps of interest rate repricing that may be undertaken,which is monitored by the bank’s
Risk Management Department.
The table below summarizes the Bank’s exposure to interest rate risks. It includes the Bank’s financial instruments at carrying
amounts, categorized by the earlier of repricing or contractual maturity dates.
Up to1
Month
1-3
Months
3-12
Months 1-5 years
Over 5
years
-
-
-
-
202,307,851
20,989,483
308,931
4,633,965
171,319
652,420
-
-
-
-
-
176,253,270
28,835,218
20,841,660
31,299,932
7,873,594
107,866
111,047
405,399
15,924,134
-
Non-
Interest
Bearing
Total
71,747,343
71,747,343
2,469,381
230,709,611
-
-
-
823,739
265,103,674
16,548,446
79,759,112
29,028,568
74,302,140
62,348,339
23,844,805
1,045,284
270,328,248
-
-
-
-
-
671,525
671,525
458,599,418 79,616,736
95,858,130 114,206,370
31,718,399
75,933,533 855,932,586
9,865,692
64,381
521,130
-
-
1,976,181
12,427,384
276,431,320
68,438,707
55,041,516
152,790,692
808,683
121,799,158
675,310,076
1,566,854
13,918,717
6,895
95,018
Dec.31, 2023
Financial assets
Cash and balances at the
central bank
Gross due from banks
Gross loans and advances to
banks
Gross loans and advances to
customers
Derivatives financial
instruments (including IRS
notional amount)
Financial investments
Gross financial investment
securities
- Investments in subsidiaries
and associates
Total financial assets
Financial liabilities
Due to banks
Due to customers
Derivatives financial
instruments (including IRS
notional amount)
Issued debt instruments
Other loans
-
40,807
Total financial liabilities
-
7,463,123
287,904,673 89,884,928
Total interest re-pricing gap 170,694,745 (10,268,192)
Total financial assets as of
December 31, 2022
Total financial liabilities as
of December 31, 2022
Total interest re-pricing
gap as of December 31, 2022
286,091,595 75,657,311
235,117,545 74,889,218
50,974,050
768,093
-
3,073,349
4,792,479
187,498
-
-
-
-
-
-
15,587,484
3,073,349
12,483,907
60,362,020 156,146,557
808,683 123,775,339 718,882,200
35,496,110 (41,940,187)
30,909,716 (47,841,806) 137,050,386
94,473,071 113,128,691
42,636,127
50,957,992 662,944,787
54,133,565
99,199,212
3,730,655
97,129,072 564,199,267
40,339,506
13,929,479
38,905,472 (46,171,080)
98,745,520
312 • CIB Annual Report • 2023
2023 • CIB Annual Report • 313
Financial Statements • Separate • 3.3. Liquidity risk
Liquidity risk is the risk that the Bank is unable to meet its payment obligations associated with its financial liabilities when they
fall due and to replace funds when they are withdrawn. The consequence may be the failure to meet obligations to repay deposi-
tors and fulfill commitments to lend.
Liquidity Risk Management Organization and Measurement Tools
Liquidity Risk is governed by Asset and Liability Committee (ALCO) and Board Risk Committee (BRC) subject to provisions of
Treasury Poilcy Guide (TPG).
Board Risk Committee (BRC): Provides oversight of risk management functions and assesses compliance to the set risk strate-
gies and policies approved by the Board of Directors (BoD) through periodic reports submitted by the Risk Group. The committee
makes recommendations to the BoD with regards to risk management strategies and policies (including those related to capital
adequacy, liquidity management,various types of risks: credit, market, operation, compliance, reputation and any other risks the
Bank may be exposed to).
Asset & Liability Committee (ALCO): Optimises the allocation of assets and liabilities, taking into consideration expectations
of the potential impact of future interest rate fluctuations, liquidity constraints, and foreign exchange exposures. ALCO monitors
the Bank’s liquidity and market risks, economic developments, market fluctuations, and risk profile to ensure ongoing activities
are compatible with the risk/ reward guidelines approved by the BoD.
Treasury Policy Guide (TPG): The purpose of the TPG is to document and communicate the policies that govern the activities
performed by the Treasury Group and monitored by Risk Group.
The main measures and monitoring tools used to assess the Bank’s liquidity risk include regulatory and internal ratios, gaps,
Basel III liquidity ratios, asset and liability gapping mismatch, stress testing, and funding base concentration. More conservative
internal targets and Risk Appetite indicators (RAI) against regulatory requirements are set for various measures of Liquidity and
Funding Concentration Risks. At the end of Period, the Basel III Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio
(NSFR) maintained strong and well above regulatory requirements.
The Bank maintained a solid LCY & FCY Liquidity position with decent buffers to meet both the global and local increase in
risk profile. CIB will continue with its robust Liability strategy with reliance on customer deposits (stable funding) as the main
contributor of total liabilities, and low dependency on the Wholesale Funding. CIB has ample level of High Quality Liquid Assets
(HQLA) based on its LCY & FCY Sovereign Portfolio investments, which positively reflects the Bank’s solid Liquidity Ratios and
Basel III LCR & NSFR ratios, with a large buffer maintained above the Regulatory ratios requirements.
3.3.1. Liquidity risk management process
The Bank’s liquidity management process is carried by the Assets and Liabilities Management Department and monitored inde-
pendently by the Risk Management Department, and includes projecting cash flows by major currency under various stress
scenarios and considering the level of liquid assets necessary in relation thereto:
• Maintaining an active presence in global money markets to enable this to happen.
• Maintaining a diverse range of funding sources with back-up facilities
• Monitoring balance sheet liquidity and advances to core funding ratios against internal and CBE regulations.
• Managing the concentration and profile of debt maturities.
Monitoring and reporting takes the form of cash flow measurement and projections for the next day, week and month respec-
tively, as these are key periods for liquidity management. The starting point for those projections is an analysis of the contractual
maturity of the financial liabilities and the expected collection date of the financial assets.
3.3.2. Funding approach
Sources of liquidity are regularly reviewed jointly by the bank’s Assets & Liabilities Management Department and Consumer
Banking to maintain a wide diversification by currency, provider, product and term.
3.3.3. Non-derivative cash flows
The table below presents the cash flows payable by the Bank under non-derivative financial liabilities by remaining contractual maturi-
ties and the maturities assumption for non contractual products on the basis of their behaviour studies, at balance sheet date.
Up to1
Month
One to
three
Month
Three
months to
one year
One year to
five years
Over five
years
Total
EGP Thousands
11,971,567
61,187,716
10,189
137,513
65,462
76,925,779
19,720
215,330
552,098
193,715,435
90,384
658,073
-
414,820,323
3,257,074
5,372,219
-
12,533,110
-
12,080,624
12,589,127
759,182,363
3,377,367
18,463,759
73,306,985
77,226,291
195,015,990
423,449,616
24,613,734
793,612,616
276,249,364
75,194,481
209,938,489
321,079,772
116,723,952
999,186,058
Up to1
Month
One to
three
Month
Three
months to
one year
One year to
five years
Over five
years
Total
EGP Thousands
3,558,584
45,738,828
8,161
821,482
-
65,858,750
15,531
338,609
-
167,856,018
72,392
971,984
-
282,414,105
2,697,474
6,158,164
-
11,079,361
-
1,787,943
3,558,584
572,947,062
2,793,558
10,078,182
50,127,055
66,212,890
168,900,394
291,269,743
12,867,304
589,377,386
147,046,643
103,639,656
142,239,730
272,824,348
113,525,774
779,276,151
Dec.31, 2023
Financial liabilities
Due to banks
Due to customers
Issued debt instruments
Other loans
Total liabilities (contractual
and non contractual
maturity dates)
Total financial assets
(contractual and non
contractual maturity dates)
Dec.31, 2022
Financial liabilities
Due to banks
Due to customers
Issued debt instruments
Other loans
Total liabilities (contractual
and non contractual maturity
dates)
Total financial assets
(contractual and non
contractual maturity dates)
The disclosed figures cannot be compared with the corresponding items in the financial statements, as they include the principal amount and related interest.
Assets available to meet all of the liabilities and to cover outstanding loan commitments include cash, due from CBE and due
from banks, treasury bills, other government notes , loans and advances to banks and customers.
In the normal course of business, a proportion of customer loans contractually repayable within one year will be extended. In
addition, debt instrument and treasury bills and other governmental notes have been pledged to secure liabilities. The Bank
would also be able to meet unexpected net cash outflows by selling securities and accessing additional funding sources.
314 • CIB Annual Report • 2023
2023 • CIB Annual Report • 315
Financial Statements • Separate • Derivative cash flows
3.3.4.
The Bank’s derivatives include:
Foreign exchange derivatives: exchange traded options and over-the-counter (OTC) ,exchange traded forwards currency options
that will be settled on a gross basis interest rate derivatives: interest rate swaps, forward rate agreements, OTC and exchange
traded interest rate options, other interest rate contracts and exchange traded futures .
The table below analyses the Bank’s derivative undiscounted financial liabilities into maturity groupings based on the remaining
period of the balance sheet to the contractual maturity date will be settled on a net basis. The amounts disclosed in the table are
the contractual undiscounted cash flows:
Up to1
Month
One to
three
Month
Three
months to
one year
One year to
five years
Over five
years
Total
EGP Thousands
22,199
-
22,199
215,085
16,822
-
16,822
4,667
6,895
-
6,895
-
-
95,018
95,018
-
-
-
-
-
45,916
95,018
140,934
219,752
Dec.31, 2023
Liabilities
Derivatives financial
instruments
Foreign exchange derivatives
Interest rate derivatives
Total
Total as of Dec. 31, 2022
Off balance sheet items
Dec.31, 2023
Up to 1 year
1-5 years
EGP Thousands
Over 5
years
Total
Letters of credit, guarantees and other commitments
Total
Total as of Dec. 31, 2022
112,440,402
112,440,402
78,169,263
48,167,837
48,167,837
46,408,459
13,826,592
13,826,592
10,409,540
174,434,831
174,434,831
134,987,262
Dec.31, 2023
Credit facilities commitments
Total
Total as of Dec. 31, 2022
EGP Thousands
Up to 1 year
1-5 years
Total
4,273,566
4,273,566
1,818,133
1,078,987
1,078,987
5,259,267
5,352,553
5,352,553
7,077,400
3.4. Fair value of financial assets and liabilities
3.4.1. Financial instruments not measured at fair value
The table below summarizes the book value and fair value of the financial assets and liabilities not presented on the Bank’s
balance sheet at their fair value.
Financial assets
Gross due from banks
Gross loans and advances to banks
Gross loans and advances to customers
Financial investments:
Financial Assets at Amortized cost
Total financial assets
Financial liabilities
Due to banks
Due to customers
Issued debt instruments
Other loans
Total financial liabilities
Book value
Fair value
Dec.
31, 2023
Dec.
31, 2022
Dec.
31, 2023
Dec.
31, 2022
230,709,611
823,739
265,103,674
133,815,430
2,988,410
218,633,100
231,443,734
823,739
261,851,735
134,581,524
2,988,410
218,020,891
38,037,650
534,674,674
34,249,657
389,686,597
36,249,803
530,369,011
33,490,533
389,081,358
12,427,384
675,310,076
3,073,349
12,483,907
703,294,716
3,475,848
530,124,905
2,456,607
7,978,975
544,036,335
12,460,019
679,145,586
3,074,203
12,613,487
707,293,295
3,476,025
533,139,722
2,461,042
7,981,357
547,058,146
The fair value is considered in the previous note from the second and third level in accordance with the fair value standard
Due from banks
The fair value of floating rate placements and overnight deposits is their carrying amount. The estimated fair value of floating
interest bearing deposits is based on discounted cash flows using prevailing money-market interest rates for debts with similar
credit risk and similar maturity date.
Fair values of financial instruments
The following table provides the fair value measurement hierarchy of the assets and liabilities according to EAS.
Quantitative disclosures fair value measurement hierarchy for assets as at 31 December 2023:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their best economic interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using
the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair
value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
• Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the bank can access at the
measurement date.
• Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
or indirectly.
• Level 3 - Unobservable inputs for the asset or liability.
316 • CIB Annual Report • 2023
2023 • CIB Annual Report • 317
Financial Statements • Separate • Fair value measurement using
Fair value measurement using
EGP Thousands
EGP Thousands
Date of
Valuation
Total
Quoted
prices
in active
markets
(Level 1)
Significant
observable
inputs
(level 2)
Valuation
techniques
(level 3)
Dec.31, 2023
Measured at fair value:
Financial assets
Financial Assets at Fair Value through OCI
31-Dec-23
232,290,598
232,290,598
114,372,488
114,372,488
117,918,110
117,918,110
-
-
Total
Derivative financial instruments:
Financial assets
Financial liabilities
Total
Assets for which fair values are disclosed:
Financial Assets at Amortized cost
Loans and advances to banks
Loans and advances to customers
Total
Liabilities for which fair values are
disclosed:
Issued debt instruments
Other loans
Due to customers
Total
31-Dec-23
31-Dec-23
1,101,896
140,934
1,242,830
31-Dec-23
31-Dec-23
31-Dec-23
36,249,803
823,739
261,851,735
298,925,277
31-Dec-23
31-Dec-23
31-Dec-23
3,074,203
12,613,487
679,145,586
694,833,276
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,101,896
140,934
1,242,830
36,249,803
-
-
36,249,803
-
823,739
261,851,735
262,675,474
3,074,203
12,613,487
-
15,687,690
-
-
679,145,586
679,145,586
Dec.31, 2022
Measured at fair value:
Financial assets
Financial Assets at Fair value
through OCI
Total
Derivative financial instruments:
Financial assets
Financial liabilities
Total
Assets for which fair values are
disclosed:
Financial Assets at Amortized cost
Loans and advances to banks
Loans and advances to customers
Total
Liabilities for which fair values
are disclosed:
Issued debt instruments
Other loans
Due to customers
Total
Date of
Valuation
Total
Quoted
prices
in active
markets
(Level 1)
Significant
observable
inputs
(level 2)
Valuation
techniques
(level 3)
31-Dec-22
202,916,225
141,343,096
61,573,129
202,916,225
141,343,096
61,573,129
-
-
31-Dec-22
31-Dec-22
31-Dec-22
31-Dec-22
31-Dec-22
1,939,961
219,752
2,159,713
33,490,533
2,988,410
218,020,891
254,499,834
31-Dec-22
31-Dec-22
31-Dec-22
2,461,042
7,981,357
533,139,722
543,582,121
-
-
-
-
-
-
-
-
-
-
-
-
1,939,961
219,752
2,159,713
33,490,533
-
-
33,490,533
-
2,988,410
218,020,891
221,009,301
2,461,042
7,981,357
-
10,442,399
-
-
533,139,722
533,139,722
318 • CIB Annual Report • 2023
2023 • CIB Annual Report • 319
Financial Statements • Separate • Fair value of financial assets and liabilities
Loans and advances to banks
Loans and advances to banks are represented in loans that do not consider bank placing. The expected fair value of the loans
and advances represents the discounted value of future cash flows expected to be collected. Cash flows are discounted using the
current market rate to determine fair value.
Loans and advances to customers
Loans and advances are net of ECL. The estimated fair value of loans and advances represents the discounted amount
of estimated future cash flows expected to be received. Expected cash flows are discounted at current market rates to determine
fair value.
Financial Investments
Investment securities include financial assets at amortized cost while fair value through OCI is being revaluated. Fair value for
amortized cost assets is based on market prices.
If this data is not available, the fair value is estimated using financial market prices for traded securities with similar credit
characteristics, maturity dates, and rates.
Due to other banks and customers
The estimated fair value of deposits with no stated maturity, which includes non-interest-bearing deposits, is the amount repay-
able on demand. The estimated fair value of fixed interest-bearing deposits and other borrowings not quoted in an active market
is based on discounted cash flows using interest rates for new debts with similar maturity date.
3.5 Capital management
For capital management purposes, the Bank’s capital includes total equity as reported in the balance sheet plus some other
elements that are managed as capital. The Bank manages its capital to ensure that the following objectives are achieved:
• Complying with the legally imposed capital requirements in Egypt.
• Protecting the Bank’s ability to continue as a going concern and enabling the generation of yield for shareholders and other
parties dealing with the bank.
• Maintaining a strong capital base to enhance growth of the Bank’s operations.
Capital adequacy and the use of regulatory capital are monitored by the Bank’s management, employing techniques based on the
guidelines developed by the Basel Committee as implemented by the banking supervision unit in the Central Bank of Egypt. The
required data is submitted to the Central Bank of Egypt on a monthly basis.
Central Bank of Egypt requires the following:
• Maintaining EGP 5 billion as a minimum requirement for the issued and paid-in capital, noting that at the reporting date the
issued and paid up capital has reached EGP 30.2 billion.
• Maintaining a minimum level of capital adequacy ratio of 12.75%, calculated as the ratio between total value of the capital
elements, and the risk-weighted assets and contingent liabilities of the Bank (credit risk, market risk and opertional risk).
While taking into consideration the conservation buffer.
The numerator of the capital adequacy ratio consists of the following two segments:
Tier one:
Tier one comprises of paid-in capital, retained earnings and reserves resulting from the distribution of profits except the banking
risk reserve, interim profits, fair value through other comprehensive income reserve and deducting some items such as previously
recognized goodwill, any retained losses and deferred tax assets
Tier two:
Tier two consists of stage one of Expected Credit Lossed (ECL) for debt instrument, loans and credit facilities capped by 1.25%
risk weighted assets and contingent liabilities ,subordinated loans with more than five years to maturity (amortizing 20% of its
carrying amount in each year of the remaining five years to maturity) and 45% of the increase in fair value than book value for the
investments in subsidiaries and associates.
When calculating the numerator of capital adequacy ratio, total amount of subordinated loans (deposits) should not exceed 50 % of Tier 1.
Assets risk weight scale ranging from zero to 400% is based on the counterparty risk to reflect the related credit risk scheme,
taking into considration the cash collatrals and local currency guarantees. Similar criteria are used for off balance sheet items
after applying conversion factors to reflect the nature of contingency and the potential loss of those amounts. The Bank has
complied with all local capital adequacy requirements for the current period.
The tables below summarize the compositions of capital base , capital adequacy ratio and leverage ratio.
1-The capital adequacy ratio
Tier 1 capital
Share capital
Goodwill
Reserves
Retained Earnings (Losses)
Total deductions from tier 1 capital common equity
Net profit for the year
Total qualifying tier 1 capital
Tier 2 capital
Subordinated Loans
**Expected Credit Losses for loans , Credit facilities, contingent liabilities and debt
instruments - stage 1
Total qualifying tier 2 capital
Total capital 1+2
Risk weighted assets and contingent liabilities
Total credit risk
Total market risk
Total operational risk
Cross border over limit
Total
*Capital adequacy ratio (%)
EGP Thousands
Dec.31, 2023 Dec.31, 2022
w
30,195,010
-
30,800,441
332,888
(1,829,068)
24,254,227
83,753,498
29,825,134
(96,268)
21,337,273
261,557
(297,397)
12,364,059
63,394,358
12,057,970
7,874,520
4,281,122
3,712,734
16,339,092
100,092,590
11,587,254
74,981,612
343,408,395
-
36,038,665
2,060,413
381,507,473
26.2%
298,496,606
1,648,310
27,697,003
3,072,997
330,914,916
22.7%
*Based on consolidated financial statement figures and in accordance with Central Bank of Egypt regulation issued on 24 December 2012.
**Not more than 1.25% of total assets and contingent liabilities weighted by credit risk weights.
2-Leverage ratio
Total qualifying tier 1 capital
On-balance sheet items & derivatives
Off-balance sheet items
Total exposures
*Percentage
EGP Thousands
Dec.31, 2023 Dec.31, 2022
83,753,498
856,118,571
106,722,210
962,840,781
8.7%
63,394,358
641,042,272
86,762,583
727,804,855
8.7%
*Based on consolidated financial statement figures and in accordance with Centeral Bank of Egypt regulation issued on 14 July 2015.
For December 2023 NSFR ratio record 253% (LCY 264% and FCY 229%), and LCR ratio record 1342% (LCY 2250% and FCY 175%).
For December 2022 NSFR ratio record 229% (LCY 239% and FCY 208%), and LCR ratio record 1086% (LCY 1291% and FCY 297%).
320 • CIB Annual Report • 2023
2023 • CIB Annual Report • 321
Financial Statements • Separate •
3. Critical accounting estimates and judgments
The Bank makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year.
Estimates and judgments are continually evaluated and based on historical experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances and available information. Uncertainty about these assumptions and
estimates could result in outcomes that require adjustments to the carrying amount of assets or liabilities affected in future periods.
3.1. Fair value of derivatives
The fair value of financial instruments that are not quoted in active markets are determined by using valuation techniques. these valu-
ation techniques (as models) are validated and periodically reviewed by qualified personnel independent of the area that created them.
All models are certified before they are used, and models are calibrated to ensure that outputs reflect actual data and compara-
tive market prices. For practicality purposes, models use only observable data; however, areas such as credit risk (both own and
counterparty), volatilities and correlations require management to make estimates. Changes in assumptions about these factors
could affect reported fair value of financial instruments.
4. Segment analysis
By business segment
The Bank is divided into the following business segments:
• Corporate banking & SME’s: This includes current account activities, deposits, overdrafts, loans, credit facilities, and finan-
cial derivatives to large, medium, and small entities, currency and derivative products.
• Investment : Incorporating financial instruments, structured financing, corporate leasing, merger and acquisitions information.
• Retail banking: incorporating private banking services, private customer current accounts, savings, deposits, investment
savings products, custody, credit and debit cards, consumer loans and mortgages.
• Assets and liabilities management -Including other banking business. Inter-segment activities which is affected by the Bank’s
normal course of business. Assets and liabilities of each segment include operating assets and liabilities as displayed in the
Financial Statements.
Dec.31, 2023
Net revenue according to business
segment *
Expenses according to business
segment
Profit before tax
Income tax
Profit for the year
Total assets
Total liabilities
Corporate
banking
SME's Investments
EGP Thousands
Retail
banking
Asset Liability
Mangement
Total
21,809,637
6,953,542
7,613,362
16,303,694
8,388,368
61,068,603
(10,760,117)
(1,913,988)
(2,143,821)
(5,118,488)
(607,205) (20,543,619)
11,049,520
(3,205,635)
7,843,885
201,580,703
285,414,218
5,469,541
5,039,554
(1,586,798)
(1,462,052)
3,577,502
3,882,743
8,211,322 270,999,772
11,185,206
(3,244,999)
7,940,207
40,524,984
7,781,163
(11,756,918)
(2,257,434)
28,768,066
5,523,729
56,742,099 294,993,246 832,527,142
27,383,743 742,227,136
60,305,027
- 369,124,148
* Represents the net interest income and other income
Corporate
banking
SME's Investments
Retail
banking
Asset
Liability
Mangement
Total
11,453,726
3,201,847
7,921,871
10,099,915
5,144,825
37,822,184
(7,843,953)
(1,491,815)
(260,929)
(4,159,728)
(3,379)
(13,759,804)
3,609,773
(1,189,940)
2,419,833
157,661,395
1,710,032
(563,702)
1,146,330
6,819,154
7,660,942
(2,525,384)
5,135,558
242,610,969
5,940,187
(1,958,147)
3,982,040
52,321,365
5,141,446
(1,694,847)
3,446,599
24,062,380
(7,932,020)
16,130,360
174,230,182 633,643,065
238,123,577
67,995,672
-
251,469,542
8,333,643 565,922,434
Dec.31, 2022
Net revenue according to business
segment
Expenses according to business
segment
Profit before tax
Income tax
Profit for the year
Total assets at 31 December 2022
Total liabilities at 31 December
2022
322 • CIB Annual Report • 2023
5. By geographical segment
Dec.31, 2023
Revenue according to geographical segment
Expenses according to geographical segment
Profit before tax
Income tax
Profit for the year
Total assets
Total liabilities
Dec.31, 2022
Revenue according to geographical segment
Expenses according to geographical segment
Profit before tax
Income tax
Profit for the year
Total assets at 31 December 2022
Total liabilities at 31 December 2022
6. Net interest income
Interest and similar income
- Banks
- Clients
Total
Treasury bills, bonds and other governmental notes
Debt instruments at fair value through OCI and AC
Total
Interest and similar expense
- Banks
- Clients
Total
Repos
Other loans
Issued debt instruments
Total
Net interest income
Cairo
51,100,964
(18,402,481)
32,698,483
(9,486,331)
23,212,152
777,717,138
559,104,069
Cairo
32,576,631
(12,056,448)
20,520,183
(6,764,356)
13,755,827
587,259,106
439,739,096
Alex, Delta
& Sinai
8,531,843
(2,115,141)
6,416,702
(1,861,583)
4,555,119
45,036,445
151,824,454
Alex, Delta
& Sinai
4,486,973
(1,547,224)
2,939,749
(969,071)
1,970,678
36,636,416
107,081,685
EGP Thousands
Upper
Egypt
1,435,796
(25,997)
1,409,799
(409,004)
1,000,795
9,773,559
31,298,613
Total
61,068,603
(20,543,619)
40,524,984
(11,756,918)
28,768,066
832,527,142
742,227,136
EGP Thousands
Upper
Egypt
758,580
(156,132)
602,448
(198,593)
403,855
9,747,543
19,101,653
Total
37,822,184
(13,759,804)
24,062,380
(7,932,020)
16,130,360
633,643,065
565,922,434
EGP Thousands
Dec.31, 2023 Dec.31, 2022
29,971,279
36,498,229
66,469,508
32,809,190
4,408,569
103,687,267
(2,462,374)
(47,087,041)
(49,549,415)
(156,017)
(1,115,442)
(119,630)
(50,940,504)
52,746,763
5,343,062
19,761,116
25,104,178
28,719,891
1,618,199
55,442,268
(194,524)
(23,696,097)
(23,890,621)
(165,895)
(473,246)
(76,679)
(24,606,441)
30,835,827
2023 • CIB Annual Report • 323
Financial Statements • Separate • 7. Net fee and commission income
11. Other operating income (expenses)
Fee and commission income
Fee and commissions related to credit
Custody fee
Other fee
Total
Fee and commission expense
Other fee paid
Total
Net income from fee and commission
8. Dividend income
Financial assets at fair value through P&L
Financial assets at fair value through OCI
Subsidiaries and associates
Total
9. Net trading income
Profit (Loss) from foreign exchange transactions
Profit (Loss) from forward foreign exchange deals revaluation
Profit (Loss) from interest rate swaps revaluation
Profit (Loss) from currency swap deals revaluation
Profit (Loss) from financial assets at fair value through P&L
Total
10. Administrative expenses
Staff costs
Wages and salaries
Social insurance
Other benefits
Other administrative expenses *
Total
EGP Thousands
Dec.31, 2023 Dec.31, 2022
3,284,557
551,324
5,210,123
9,046,004
1,874,660
241,455
3,426,728
5,542,843
(3,612,232)
(3,612,232)
5,433,772
(2,477,342)
(2,477,342)
3,065,501
EGP Thousands
Dec.31, 2023 Dec.31, 2022
1,600
50,811
9,815
62,226
-
170,638
16,591
187,229
EGP Thousands
Dec.31, 2023 Dec.31, 2022
1,611,099
715,023
482
421,130
(5,880)
2,741,854
4,080,479
(64,227)
291,504
(401,470)
17,562
3,923,848
EGP Thousands
Dec.31, 2023 Dec.31, 2022
(5,186,718)
(354,136)
(282,763)
(3,942,119)
(9,765,736)
(3,613,680)
(157,565)
(214,640)
(3,191,365)
(7,177,250)
Profits (losses) from revaluation of non-trading assets and liabilities by FCY
Profits from selling property and equipment
Release (charges) of other provisions
Other income (expenses)
Total
12. Impairment release (charges) for credit losses
Loans and advances to customers and banks
Due from banks
Financial securities
Total
13. Adjustments to calculate the effective tax rate
Profit before tax
Tax rate
Income tax based on accounting profit
Add / (Deduct)
Non-deductible expenses
Tax exemptions
Withholding tax
Income and Deferred tax
Effective tax rate
14. Earnings per share
Net profit for the year, available for distribution
Board members' bonus*
Staff profit sharing*
Profits attributable to shareholders
Weighted average number of shares
Basic earning per share
By issuance of ESOP earning per share will be:
Average number of shares including ESOP shares
Diluted earning per share
EGP Thousands
Dec.31, 2023 Dec.31, 2022
(1,089,939)
2,208
(1,856,002)
(2,126,814)
(5,070,547)
(756,492)
1,663
(2,833,219)
(2,902,556)
(6,490,604)
EGP Thousands
Dec.31, 2023 Dec.31, 2022
(978,374)
(8,795)
(524,838)
(1,512,007)
(2,334,846)
49,042
(2,001,475)
(4,287,279)
EGP Thousands
Dec.31, 2023 Dec.31, 2022
24,062,380
22.50%
5,414,036
40,524,984
22.50%
9,118,121
4,859,295
(7,458,312)
5,237,814
11,756,918
29.01%
3,989,395
(6,345,343)
4,873,932
7,932,020
32.96%
EGP Thousands
Dec.31, 2023 Dec.31, 2022
16,124,903
(110,239)
(1,612,490)
14,402,174
3,001,981
4.80
28,763,709
(110,239)
(2,876,371)
25,777,099
3,001,981
8.59
3,038,040
8.48
3,038,040
4.74
*The expenses related to the activity for which the bank obtains a commodity or service, donations and depreciation.
*
Proposed amounts are subject to change according to GAM decision.
324 • CIB Annual Report • 2023
2023 • CIB Annual Report • 325
Financial Statements • Separate • 15 Cash and balances at the central bank
Governmental bonds
Governmental bonds
Repos - Treasury bonds
Net
18 . Loans and advances to banks, net
Time loans
ECL
Net
Current balances
Net
Analysis for ECL of loans and advances to banks
Beginning balance
Released (charged) during the year
Ending balance
EGP Thousands
Dec.31, 2023 Dec.31, 2022
Financial
Assets at
Fair Value
through OCI
123,585,955
(3,711,489)
119,874,466
Financial
Assets at
Fair Value
through OCI
86,841,424
-
86,841,424
EGP Thousands
Dec.31, 2023 Dec.31, 2022
2,988,410
(10,213)
2,978,197
2,978,197
2,978,197
823,739
(1,291)
822,448
822,448
822,448
EGP Thousands
Dec.31, 2023 Dec.31, 2022
(2,118)
(8,095)
(10,213)
(10,213)
8,922
(1,291)
Cash
Obligatory reserve balance with CBE
- Current accounts
Total
Non-interest bearing balances
16. Due from banks
Current accounts
Deposits
Expected credit losses
Total
Central banks
Local banks
Foreign banks
Total
Non-interest bearing balances
Floating interest bearing balances
Fixed interest bearing balances
Total
Current balances
Non-Current balances
Total
17. Treasury bills and Other Governmental notes
91 Days maturity
182 Days maturity
273 Days maturity
364 Days maturity
Unearned interest
Total Treasury bills
Repos - Treasury bills
Net
Other Governmental notes
Total Treasury bills and other governmental notes
EGP Thousands
Dec.31, 2023 Dec.31, 2022
6,969,822
7,463,707
64,283,636
71,747,343
71,747,343
40,414,752
47,384,574
47,384,574
EGP Thousands
Dec.31, 2023 Dec.31, 2022
2,911,660
130,903,770
(49,234)
133,766,196
86,443,811
25,772,861
21,549,524
133,766,196
1,760,059
69,663,117
62,343,020
133,766,196
130,054,686
3,711,510
133,766,196
4,743,930
225,965,681
(192)
230,709,419
198,023,653
7,418,937
25,266,829
230,709,419
2,469,381
98,470,020
129,770,018
230,709,419
226,075,641
4,633,778
230,709,419
EGP Thousands
Dec.31, 2023 Dec.31, 2022
10,575
656,150
7,515,700
54,502,250
(2,878,502)
59,806,173
(659,349)
59,146,824
-
59,146,824
718,500
6,619,200
9,998,675
51,590,470
(4,911,765)
64,015,080
(611,377)
63,403,703
50,000,000
113,403,703
326 • CIB Annual Report • 2023
2023 • CIB Annual Report • 327
Financial Statements • Separate • 19. Loans and advances to customers, net
Individual
- Overdraft
- Credit cards
- Personal loans
- Mortgage loans
Total 1
Corporate and Business Banking
- Overdraft
- Direct loans
- Syndicated loans
- Other loans
Total 2
Total Loans and advances to customers (1+2)
Less:
Unamortized bills discount
Unamortized syndicated loans discount
ECL
Suspended credit account
Net loans and advances to customers
Distributed to
Current balances
Non-current balances
Total
EGP Thousands
Dec.31, 2023 Dec.31, 2022
2,922,161
10,297,598
42,508,494
4,336,631
60,064,884
54,824,060
98,468,654
51,311,552
434,524
205,038,790
265,103,674
(509,523)
(145,003)
(29,127,204)
(1,497,199)
233,824,745
2,123,198
7,636,331
40,137,967
3,389,908
53,287,404
42,468,290
78,030,082
44,722,871
124,453
165,345,696
218,633,100
(678,795)
(221,018)
(24,402,014)
(709,985)
192,621,288
126,122,466
107,702,279
233,824,745
99,866,973
92,754,315
192,621,288
Analysis of the expected credit losses on loans and advances to customers by product during the year is as follows:
Credit
cards
(321,990)
(402,460)
59,027
(58,102)
(723,525)
Direct
loans
(15,167,970)
(2,298,467)
2,234,286
(51,666)
Dec.31, 2023
Personal
loans
(1,194,486)
(334,619)
177,095
(66,308)
(1,418,318)
Dec.31, 2023
Syndicated
loans
(5,140,282)
520,032
-
-
EGP Thousands
Mortgages
Total
(62,359)
(25,054)
3,332
(180)
(84,261)
(1,582,341)
(763,933)
241,414
(125,599)
(2,230,459)
Other
loans
(8,807)
(10,613)
-
-
Total
(22,819,673)
(1,579,835)
2,236,815
(51,666)
(506,322)
(3,003,501)
(1,172,563)
-
(4,682,386)
(2,797,194)
(18,287,318)
(5,792,813)
(19,420)
(26,896,745)
Individual Loans:
Overdrafts
Beginning balance
Released (charged) during the year
Written off during the year
Recoveries during the year
Ending balance
(3,506)
(1,800)
1,960
(1,009)
(4,355)
Overdrafts
(2,502,614)
209,213
2,529
-
Corporate and Business
Banking loans:
Beginning balance
Released (charged) during the year
Written off during the year
Recoveries during the year
Foreign currencies translation
differences
Ending balance
328 • CIB Annual Report • 2023
Individual Loans:
Overdrafts
Beginning balance
Released (charged) during the year
Write off during the year
Recoveries during the year
Ending balance
(6,520)
1,243
2,190
(419)
(3,506)
Corporate and Business
Banking loans:
Beginning balance
Released (charged) during the year
Write off during the year
Recoveries during the year
foreign currencies translation
differences
Ending balance
Overdrafts
(1,648,574)
(221,934)
5,145
-
Credit
cards
(305,006)
(19,585)
52,918
(50,317)
(321,990)
Direct
loans
(10,866,452)
(993,452)
980,540
(9,662)
Dec.31, 2022
Personal
loans
(811,871)
(500,991)
172,195
(53,819)
(1,194,486)
Dec.31, 2022
Syndicated
loans
(4,180,996)
779,409
-
-
EGP Thousands
Mortgages
Total
(49,525)
(12,957)
123
-
(62,359)
(1,172,922)
(532,290)
227,426
(104,555)
(1,582,341)
Other
loans
(6,795)
(2,012)
-
-
Total
(16,702,817)
(437,989)
985,685
(9,662)
(637,251)
(4,278,944)
(1,738,695)
-
(6,654,890)
(2,502,614)
(15,167,970)
(5,140,282)
(8,807)
(22,819,673)
20. Derivative financial instruments
20.1. Derivatives
The Bank uses the following financial derivatives for non hedging purposes.
Forward contracts represent commitments to buy foreign and local currencies including unexecuted spot transactions. Future
contracts for foreign currencies and/or interest rates represent contractual commitments to receive or pay net on the basis of
changes in foreign exchange rates or interest rates, and/or to buy/sell foreign currencies or financial instruments in a future date
with a fixed contractual price under active financial market.
Credit risk is considered low, and future interest rate contract represents future exchange rate contracts negotiated for case by
case, These contracts require financial settlements of any differences in contractual interest rates and prevailing market interest
rates on future interest rates on future dates based on contractual amount (nominal value) pre agreed upon.
Foreign exchange and/or interest rate swap represents commitments to exchange cash flows, resulting from these contracts are
exchange of currencies or interest ( fixed rate versus variable rate for example) or both (meaning foreign exchange and interest
rate contracts). Contractual amounts are not exchanged except for some foreign exchange contracts.
Credit risk is represented in the expected cost of foreign exchange contracts that takes place if other parties default to fulfill their
liabilities. This risk is monitored continuously through comparisons of fair value and contractual amount, and in order to control
the outstanding credit risk, the Bank evaluates other parties using the same methods as in borrowing activities.
Options contracts in foreign currencies and/or interest rates represent contractual agreements for the buyer (issuer) to the seller
(holders) as a right not an obligation whether to buy (buy option) or sell (sell option) at a certain day or within certain year for
a predetermined amount in foreign currency or interest rate. Options contracts are either traded in the market or negotiated
between The Bank and one of its clients (Off balance sheet). The Bank is exposed to credit risk for purchased options contracts
only and in the line of its book cost which represent its fair value.
The contractual value for some derivatives options is considered a base to analyze the realized financial instruments on the
balance sheet, but it doesn’t provide an indicator for the projected cash flows of the fair value for current instruments, and those
amounts don’t reflects credit risk or interest rate risk.
Derivatives in the Bank’s benefit that are classified as (assets) are conversely considered (liabilities) as a result of the changes in foreign
exchange prices or interest rates related to these derivatives. Contractual / expected total amounts of financial derivatives can fluctuate
from time to time as well as the range through which the financial derivatives can be in benefit for the Bank or conversely against its benefit
and the total fair value of the financial derivatives in assets and liabilities. Hereunder are the fair values of the booked financial derivatives:
2023 • CIB Annual Report • 329
Financial Statements • Separate •
20.1.1. For trading derivatives
21. Movement of financial investment securities:
Beginning balance as of 2022
Addition
Disposals
Profit (losses) from fair value difference
Exchange revaluation differences for foreign financial assets
Ending Balance as of Dec.31, 2022
Beginning balance as of 2023
Addition
Disposals
Profit (losses) from fair value difference
Exchange revaluation differences for foreign financial assets
Ending Balance as of Dec.31, 2023
Financial Assets at Fair
Value through OCI
192,390,931
45,171,763
(25,933,245)
(15,383,080)
6,669,856
202,916,225
Financial Assets at Fair
Value through OCI
202,916,225
129,292,929
(98,908,718)
(5,800,792)
4,790,954
232,290,598
Financial Assets at
Amortized cost
20,318,767
19,790,914
(6,738,937)
-
808,009
34,178,753
Financial Assets at
Amortized cost
34,178,753
9,142,334
(6,125,452)
-
651,479
37,847,114
Dec.31, 2023
Dec.31, 2022
Notional
amount
Assets
Liabilities
Notional
amount
Assets
Liabilities
EGP Thousands
Foreign
currencies
derivatives
- Forward
foreign exchange
contracts
- Swap deals
Total (1)
8,573,448
578,528
37,765
9,886,585
823,287
218,296
74,723,052
45,785
624,313
8,151
45,916
2,081,255
440,559
1,263,846
1,456
219,752
20.1.2. Fair value hedge
Notional
amount
15,446,550
Interest rate
derivatives
Interest rate
derivatives
Total (2)
20.1.3. Cash flow hedge
Dec.31, 2023
Dec.31, 2022
Assets
Liabilities
Notional
amount
Assets
Liabilities
EGP Thousands
40,482
40,482
95,018
12,520,160
95,018
30,480
30,480
-
-
Notional
amount
Cash flow hedge
3,089,310
Total (3)
Total financial
derivatives
(1+2+3)
Dec.31, 2023
Dec.31, 2022
Assets
Liabilities
437,101
437,101
-
-
Notional
amount
7,423,020
Assets
Liabilities
645,635
645,635
-
-
1,101,896
140,934
1,939,961
219,752
EGP Thousands
20.2. Hedging derivatives
Fair value hedge
The Bank uses interest rate swap contracts to cover part of the risk of potential increase in fair value of its fixed rate customer
deposits in foreign currencies. Net derivative value resulting from the related hedging instruments is EGP 382,565 thousand at
the end of December 31, 2023 against EGP 676,115 thousand at December 31, 2022, resulting in profits from hedging instruments
at December 31, 2023 of EGP 293,550 thousand against profits of EGP 623,945 thousand at December 31, 2022. Profits arose from
the hedged items at December 31, 2023 reached EGP 84,228 thousand against Profits EGP 13,191 thousand at December 31, 2022.
330 • CIB Annual Report • 2023
2023 • CIB Annual Report • 331
Financial Statements • Separate • 21. Financial investments securities
Classification and measurement of financial assets and financial liabilities:
EGP Thousands
The following table shows the financial assets and the net financial liabilities according to the business model classification:
Financial Assets at Fair
Value through OCI
Financial Assets at
Amortized cost
Total
Dec.31, 2023
Investments listed in the market
Governmental bonds
Securitized and other bonds
Equity instruments
Sukuk
Investments not listed in the market
Treasury bills and Other Governmental notes
Securitized and other bonds
Equity instruments
Mutual funds
Total
86,841,424
26,535,662
121,184
874,218
113,403,703
3,299,797
805,674
408,936
232,290,598
37,411,623
363,647
-
-
124,253,047
26,899,309
121,184
874,218
-
71,844
-
-
113,403,703
3,371,641
805,674
408,936
37,847,114 270,137,712
EGP Thousands
Investments listed in the market
Governmental bonds
Securitized and other bonds
Equity instruments
Sukuk
Investments not listed in the market
Treasury bills and Other Governmental notes
Securitized and other bonds
Equity instruments
Mutual funds
Total
Financial Assets at Fair
Value through OCI
Financial Assets at
Amortized cost
Total
Dec.31, 2022
119,874,466
19,536,994
257,586
1,674,050
59,146,824
1,709,429
370,174
346,702
202,916,225
32,851,270
-
-
152,725,736
19,536,994
257,586
1,674,050
-
1,327,483
-
-
34,178,753
59,146,824
3,036,912
370,174
346,702
237,094,978
Debt
financial
Assets at
Fair value
through
OCI
Equity
financial
Assets at
Fair value
through
OCI
-
-
113,403,703
-
-
-
117,551,101
-
230,954,804
-
-
-
-
-
-
-
-
-
-
-
-
-
1,335,794
-
1,335,794
-
-
-
-
-
-
-
Amortized
cost
71,747,343
230,709,419
-
233,824,745
822,448
-
-
37,847,114
574,951,069
12,427,384
675,310,076
-
3,073,349
12,483,907
11,088,372
714,383,088
Financial
Assets/
Liabilities
at Fair
value
through
P&L
-
-
-
-
-
1,101,896
-
-
1,101,896
-
-
140,934
-
-
-
140,934
Total book
value
71,747,343
230,709,419
113,403,703
233,824,745
822,448
1,101,896
118,886,895
37,847,114
808,343,563
12,427,384
675,310,076
140,934
3,073,349
12,483,907
11,088,372
714,524,022
Dec.31, 2023
Cash and balances with central bank
Due from banks
Treasury bills and Other Governmental notes
Loans and advances to customers, net
Loans and advances to banks, net
Derivative financial instruments
Financial Assets at Fair value through OCI
Amortized cost
Total 1
Due to banks
Due to customers
Derivative financial instruments
Issued debt instruments
Other loans
Other Provisions
Total 2
21.1. Profits (Losses) on financial investments
Profit (Loss) from selling FVOCI financial instruments
Profit from selling shares of associates
Released (Impairment) for invesment in associates and subsidiaries
Total
EGP Thousands
Dec.31, 2023 Dec.31, 2022
1,116,776
-
-
1,116,776
205,344
7,466
(1,435,819)
(1,223,009)
332 • CIB Annual Report • 2023
2023 • CIB Annual Report • 333
Financial Statements • Separate • 22. Investments in subsidiaries and associates
23. Other assets
Company's
country
Company's
assets
Company's
liabilities
(without
equity)
Company's
revenues
Company's
net profit
(loss)
Investment
book value
Stake %
EGP Thousands
Egypt
Kenya
Egypt
Egypt
Egypt
79,011
2,397
64,358
61,014
97,991
49.95
3,463,032
2,627,118
456,182
7,792
355,274
100.00
46,196
20,239
13,517
(34,043)
59,900
99.83
1,508,346
30,031
5,126,616
1,364,689
30,620
4,045,063
56,196
48,038
638,291
(89,746)
(20,097)
(75,080)
158,360
-
671,525
37.00
39.34
Dec.31, 2023
Subsidiaries
- Damietta shipping & marine
services
- Commercial International
Bank (CIB) Kenya*
- Commercial International
for Finance
Associates
-TCA Properties
- Al Ahly Computer
Total
Accrued revenues
Prepaid expenses
Advances to purchase fixed assets
Accounts receivable (after deducting the provision)*
Assets acquired as settlement of debts
Insurance
Gross
Impairment of other assets
Net
* A provision has been created for other assets with amount EGP 17 million.
EGP Thousands
Dec.31, 2023 Dec.31, 2022
11,437,147
562,736
1,339,496
981,940
124,098
49,647
14,495,064
(40,196)
14,454,868
13,018,038
892,438
1,906,547
3,011,250
49,019
51,775
18,929,067
-
18,929,067
* For more information, please refer back to disclosure 42.
This item includes other assets that are not classified under specific items of balance sheet assets, such as: accrued income and
prepaid expenses, custodies, debit accounts under settlement and any balance that has no place in any other asset category.
Company's
country
Company's
assets
Company's
liabilities
(without
equity)
Company's
revenues
Company's
net profit
(loss)
Investment
book value
Stake %
EGP Thousands
Egypt
Egypt
Kenya
Egypt
Egypt
Egypt
Egypt
Egypt
213,108
31,133
8,562
(4,491)
159,828
51,293
1,995
27,512
25,087
97,991
2,599,935
1,705,985
397,584
74,209
560,963
-
-
-
-
59,900
1,511,066
42,494
187,036
1,251,615
19,534
100,492
21,503
50,892
127,246
(72,446)
(188)
42,413
158,360
23,108
14,100
779,891
833,180
356,164
(146,617)
-
5,384,823
3,943,934
989,463
(82,033)
1,074,250
99.99
49.95
51.00
99.83
37.00
39.34
14.99
30.00
Dec.31, 2023
Subsidiaries
-CVenture Capital
- Damietta shipping & marine
services
- Commercial International
Bank (CIB) Kenya
- Commercial International
for Finance
Associates
-TCA Properties
- Al Ahly Computer
- Fawry Plus
- International Co. for
Security and Services
(Falcon)
Total
334 • CIB Annual Report • 2023
2023 • CIB Annual Report • 335
Financial Statements • Separate • s
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25. Due to banks
Current accounts
Deposits
Total
Central banks
Local banks
Foreign banks
Total
Non-interest bearing balances
Floating bearing interest balances
Fixed interest bearing balances
Total
Current balances
26. Due to customers
Demand deposits
Time deposits
Certificates of deposit
Saving deposits
Other deposits
Total
Corporate deposits
Individual deposits
Total
Non-interest bearing balances
Floating interest bearing balances
Fixed interest bearing balances
Total
Current balances
Non-current balances
Total
EGP Thousands
Dec.31, 2023 Dec.31, 2022
2,672,108
803,740
3,475,848
460,169
45,065
2,970,614
3,475,848
2,382,183
573,860
519,805
3,475,848
3,475,848
2,308,193
10,119,191
12,427,384
618,597
16,626
11,792,161
12,427,384
1,976,181
553,295
9,897,908
12,427,384
12,427,384
EGP Thousands
Dec.31, 2023 Dec.31, 2022
197,874,662
105,665,409
128,342,125
91,890,264
6,352,445
530,124,905
262,223,998
267,900,907
530,124,905
94,746,889
7,840,984
427,537,032
530,124,905
392,968,061
137,156,844
530,124,905
255,561,871
116,020,391
188,832,842
107,332,593
7,562,379
675,310,076
305,935,625
369,374,451
675,310,076
121,799,158
5,664,023
547,846,895
675,310,076
481,732,737
193,577,339
675,310,076
In 2023, Due to customers contains an amount of EGP 1,931 million representing guarantees of irrevocable commitments for
documentary credits - export compared to EGP 2,705 million in 2022. The fair value of these deposits is approximately their
present value.
336 • CIB Annual Report • 2023
2023 • CIB Annual Report • 337
Financial Statements • Separate •
27. Issued debt instruments
30 . Other provisions
Fixed rate bonds with 5 years maturity
Green bonds (USD)
Total
Non current balances
28. Other loans
Interest rate
EGP Thousands
Dec.31,
2023
Dec.31,
2022
Fixed rate
3,073,349
3,073,349
3,073,349
2,456,607
2,456,607
2,456,607
British International Investment
subordinated loan
Environmental Compliance Project
(ECO)
Agricultural Research and
Development Fund (ARDF)
Egyptian Pollution Abatement
Program (EPAP)
European Bank for Reconstruction
and Development (EBRD)
subordinated Loan
International Finance Corporation
(IFC) subordinated Loan
Total
Interest
rate %
Loan
duration
Due within
one year
EGP Thousands
Dec.31,
2022
Dec.31,
2023
Floating rate
10 years
-
2,879,244
2,644,356
Fixed rate
3-5 years*
315
525
840
Fixed rate
Floating /
Fixed rate
Less than 1
year*
3-5 years*
Floating rate
10 years
Floating rate
10 years
200,619
200,619
16,000
37,506
224,793
87,614
-
-
4,588,784
2,561,585
4,589,942
2,668,580
238,440
12,483,907
7,978,975
Interest rates on variable-interest subordinated loans are determined in advance every 3 months.
* Represents the date of loan repayment to the lending agent.
29. Other liabilities
Beginning
balance
7,456
6,674,314
383,522
7,065,292
Beginning
balance
7,184
3,203,319
329,173
3,539,676
Charged
during
the year
1,400
2,811,978
2,221
2,815,599
Charged
during
the year
-
2,124,981
8,960
2,133,941
EGP Thousands
Exchange
differences
of other
provisions
Net
utilized /
recovered
during
the year
Provisions
no longer
used
448
1,180,071
32,812
1,213,331
(2,058)
(2,512)
(1,280)
(5,850)
-
-
-
-
Ending
balance
7,246
10,663,851
417,275
11,088,372
Exchange
differences
of other
provisions
Net
utilized /
recovered
during
the year
Provisions
no longer
used
656
1,346,014
48,303
1,394,973
(212)
-
(2,914)
(3,126)
(172)
-
-
(172)
Ending
balance
7,456
6,674,314
383,522
7,065,292
Dec.31, 2023
Provision for legal claims*
Provision for contingent
Provision for other claim**
Total
Dec.31, 2022
Provision for legal claims
Provision for contingent
Provision for other claim
Total
* A provision for legal cases that are expected to generate losses has been created.
** To face the potential risk of banking operations.
31. Equity
31.1. Capital
The authorized capital is EGP 100 billion according to the extraordinary general assembly decision on 20 March 2023.
On January 11, 2023 issued and Paid in Capital increased by an amount of EGP 165,429 thousand to reach EGP 29,990,563 thou-
sand, according to BOD Meeting decision on September 28 ,2022, by issuance of 13th tranche for E.S.O.P program.
On June 8, 2023 issued and Paid in Capital increased by an amount of EGP 204,447 thousand to reach EGP 30,195,010 thousand,
according to BOD Meeting decision on January 24 ,2023, by issuance of 14th tranche for E.S.O.P program.
Accrued interest payable
Accrued expenses
Accounts payable
Other credit balances
Total
EGP Thousands
Dec.31, 2023 Dec.31, 2022
2,084,649
1,679,182
7,485,262
300,379
11,549,472
3,807,422
2,542,423
11,435,939
521,796
18,307,580
Authorized Capital
Issued and paid up capital
Number of outstanding shares in Thousands
Par value per share
EGP Thousands
Dec.31, 2023 Dec.31, 2022
50,000,000
29,825,134
2,982,513
100,000,000
30,195,010
3,019,501
Dec.31,
2023
EGP
10
Dec.31,
2022
EGP
10
338 • CIB Annual Report • 2023
2023 • CIB Annual Report • 339
Financial Statements • Separate •
31.2. Reserves
According to The Bank status 5% of net profit is used to increase the legal reseve to reaches 50% of The Bank’s issued and paid in
capital. Central Bank of Egypt concurrence for usage of special reserve is required.
Details of the rights to share outstanding during the year are as follows:
32. Deferred tax assets (Liabilities)
Deferred tax assets and liabilities are attributable to the following:
Fixed assets (depreciation)
Other provisions (excluded loan loss, contingent liabilities and income tax provisions)
Change in fair value of investments through OCI
Other Balance Sheet Revaluation
Other investments impairment
Reserve for employee stock ownership plan (ESOP)
Interest rate swaps revaluation
Trading investment revaluation
Forward foreign exchange deals revaluation
Balance
Movement of Deferred Tax Assets and Liabilities:
Beginning Balance
Additions / disposals through OCI
Additions / disposals through P&L
Ending Balance
Assets
(Liabilities)
EGP Thousands
Assets
(Liabilities)
Dec.31, 2023 Dec.31, 2022
(48,811)
335,490
1,057,872
(1,591,765)
82,953
426,473
(108)
17,770
(255,634)
24,240
(83,567)
782,899
1,399,815
(1,183,449)
395,979
334,352
(65,588)
-
104,782
1,685,223
Assets
(Liabilities)
EGP Thousands
Assets
(Liabilities)
Dec.31, 2023 Dec.31, 2022
24,240
341,943
1,319,040
1,685,223
460,026
1,153,777
(1,589,563)
24,240
33. Share-based payments
According to the extraordinary general assembly meeting on June 26, 2006, the Bank launched new Employees Share Ownership
Plan (ESOP) scheme and issued equity-settled share-based payments. Eligible employees should complete a term of 3 years of
service in The Bank to have the right in ordinary shares at face value (right to share) that will be issued on the vesting date,otherwise
such grants will be forfeited. Equity-settled share-based payments are measured at fair value at the grant date, and expensed on a
straight-line basis over the vesting year (3 years) with corresponding increase in equity based on estimated number of shares that
will eventually vest. The fair value for such equity instruments is measured using the Black-Scholes pricing model.
Outstanding at the beginning of the year
Granted during the year
Forfeited during the year
Exercised during the year
Outstanding at the end of the year
Details of the outstanding tranches are as follows:
Maturity date
2024
2025
2026
Total
Dec.31, 2023 Dec.31, 2022
No. of shares
in thousand
92,551
28,143
(3,693)
(36,988)
80,013
No. of shares
in thousand
76,328
31,177
(2,682)
(12,272)
92,551
EGP
Exercise
price
10.00
10.00
10.00
EGP
Fair value
No. of shares
in thousand
26.34
28.43
34.09
23,788
29,052
27,173
80,013
The fair value of granted shares is calculated using Black-Scholes pricing model with the following:
Exercise price
Current share price
Expected life (years)
Risk free rate %
Dividend yield%
Volatility%
Volatility is calculated based on the standard deviation of returns for the last five years.
17th tranche
10
41.48
3
18.00%
1.30%
34.75%
16th tranche
10
42.65
3
14.65%
2.50%
25.73%
340 • CIB Annual Report • 2023
2023 • CIB Annual Report • 341
Financial Statements • Separate • 34. Reserves and retained earnings
34.4. Retained earnings
Legal reserve
General reserve
Capital reserve
Retained earnings
Reserve for financial assets at fair value through OCI
Reserve for employee stock ownership plan
Banking risks reserve
General risk reserve
Ending balance
34.1 Banking risks reserve
Beginning balance
Transferred to banking risk reserve
Ending balance
34.2. Legal reserve
Beginning balance
Transferred to legal reserve
Ending balance
34.3. Reserve for financial assets at fair value through OCI
Beginning balance
Transferred to RE from financial assets at fair value through OCI
Net unrealised gain/(loss) on financial assets at fair value through OCI
Effect of ECL in fair value of debt instruments measured at fair value through OCI
Ending balance
EGP Thousands
Dec.31, 2023 Dec.31, 2022
3,963,946
27,096,858
18,947
16,497,346
(13,138,461)
1,895,435
11,981
1,549,445
37,895,497
4,770,354
39,840,707
21,155
29,230,360
(16,808,265)
1,486,010
15,230
1,549,445
60,104,996
EGP Thousands
Dec.31, 2023 Dec.31, 2022
9,141
2,840
11,981
11,981
3,249
15,230
EGP Thousands
Dec.31, 2023 Dec.31, 2022
3,293,074
670,872
3,963,946
3,963,946
806,408
4,770,354
EGP Thousands
Dec.31, 2023 Dec.31, 2022
639,231
(3,436)
(14,229,303)
455,047
(13,138,461)
(13,138,461)
(95,308)
(5,458,849)
1,884,353
(16,808,265)
Beginning balance
Transferred to reserves
Dividend paid
Net profit for the year
Transferred ( from) to banking risk reserve
Transferred to RE from financial assets at fair value through OCI
Ending balance
34.5. Reserve for employee stock ownership plan
Beginning balance
Transferred to reserves
Cost of employees stock ownership plan (ESOP)
Ending balance
34.6. General risk reserve
Beginning balance
Ending balance
35. Cash and cash equivalent
Cash and balances at the central bank
Due from banks
Treasury bills and other governmental notes
Obligatory reserve balance with CBE
Due from banks with maturities more than three months
Treasury bills and other governmental notes with maturities more than three months
Total
EGP Thousands
Dec.31, 2023 Dec.31, 2022
13,783,935
(9,007,223)
(4,410,322)
16,130,360
(2,840)
3,436
16,497,346
16,497,346
(12,388,223)
(3,738,888)
28,768,066
(3,249)
95,308
29,230,360
EGP Thousands
Dec.31, 2023 Dec.31, 2022
1,674,392
(502,922)
723,965
1,895,435
1,895,435
(1,164,242)
754,817
1,486,010
EGP Thousands
Dec.31, 2023 Dec.31, 2022
1,549,445
1,549,445
1,549,445
1,549,445
EGP Thousands
Dec.31, 2023 Dec.31, 2022
47,384,574
133,815,430
59,146,824
(40,414,752)
(47,241,335)
(59,795,598)
92,895,143
71,747,343
230,709,611
113,403,703
(64,283,636)
(4,942,896)
(112,721,932)
233,912,193
342 • CIB Annual Report • 2023
2023 • CIB Annual Report • 343
Financial Statements • Separate • 36. Contingent liabilities and commitments
36.1. Legal claims
37 . Mutual funds
Osoul fund
• There is a number of existing cases against the bank on December 31, 2023 for which no provisions are made as the bank
• CIB established an accumulated return mutual fund under license no.331 issued from capital market authority on February
doesn’t expect to incur losses from it.
• A provision for legal cases that are expected to generate losses has been created. (Note No. 30)
36.2. Capital commitments
36.2.1. Financial investments
The capital commitments for the financial investments reached on the date of financial position EGP 1,931 thousand as follows:
22, 2005. CI Assets Management Co.- Egyptian joint stock co - manages the fund.
• The number of certificates issued reached 10,164,050 with redeemed value of EGP 6,634,990 thousands.
• The market value per certificate reached EGP 652.79 on December 31, 2023.
• The Bank’s portion is 237,112 certificates with a redeemed value of EGP 154,784 thousands.
Istethmar fund
Investments
value
Paid
Remaining
Financial Assets at Fair value through OCI
308,931
307,000
1,931
36.2.2. Fixed assets and branches constructions
The value of commitments for the purchase of fixed assets, contracts, and branches constructions that have not been imple-
mented till the date of the financial statements amounted to EGP 396,683 thousand against EGP 397,100 thousand in 2022.
36.3. Letters of credit, guarantees and other commitments
Letters of guarantee
Letters of credit (import and export)
Customers acceptances
Total
36.4. Credit facilities commitments
EGP Thousands
Dec.31, 2023 Dec.31, 2022
123,040,556
8,464,457
3,482,249
134,987,262
160,735,346
9,068,007
4,631,478
174,434,831
EGP Thousands
Dec.31, 2023 Dec.31, 2022
Credit facilities commitments
5,352,553
7,077,400
36.5. Lease commitments
The total minimum lease payments for non-cancellable operating leases are as follows:
Not more than one year
More than one year and less than five years
More than five years
EGP Thousands
Dec.31, 2023 Dec.31, 2022
57,119
563,066
200,824
223,456
659,897
287,120
• CIB bank established the second accumulated return mutual fund under license no.344 issued from capital market authority
on February 26, 2006. CI Assets Management Co.- Egyptian joint stock co - manages the fund.
• The number of certificates issued reached 396,693 with redeemed value of EGP 165,984 thousands
• The market value per certificate reached EGP 418.42 on December 31, 2023
• The Bank’s portion is 50,000 certificates with a redeemed value of EGP 20,921 thousands.
Aman fund ( CIB and Faisal Islamic Bank Mutual Fund)
• CIB and Faisal Islamic Bank established an accumulated return mutual fund under license no.365 issued from capital market
authority on July 30, 2006. CI Assets Management Co.- Egyptian joint stock co - manages the fund.
• The number of certificates issued reached 317,885 with redeemed value of EGP 65,427 thousands.
• The market value per certificate reached EGP 205.82 on December 31, 2023.
• The Bank’s portion is 32,596 certificates with a redeemed value of EGP 6,709 thousands.
Hemaya fund
• CIB bank established an accumulated return mutual fund under license no.585 issued from financial supervisory Authority
on June 23, 2010. CI Assets Management Co.- Egyptian joint stock co - manages the fund.
• The number of certificates issued reached 83,589 with redeemed value of EGP 35,903 thousands.
• The market value per certificate reached EGP 429.52 on December 31, 2023
• The Bank’s portion is 50,000 certificates with a redeemed value of EGP 21,476 thousands.
Thabat fund
• CIB bank established an accumulated return mutual fund under license no.613 issued from financial supervisory authority
on September 13, 2011. CI Assets Management Co.- Egyptian joint stock co - manages the fund.
• The number of certificates issued reached 252,645 with redeemed value of EGP 110,616 thousands.
• The market value per certificate reached EGP 437.83 on December 31, 2023.
• The Bank’s portion is 50,000 certificates with a redeemed value of EGP 21,892 thousands.
Takamol fund
• CIB bank established an accumulated return mutual fund under license no.431 issued from financial supervisory authority
on February 18, 2015. CI Assets Management Co.- Egyptian joint stock co - manages the fund.
• The number of certificates issued reached 145,783 with redeemed value of EGP 55,463 thousands.
• The market value per certificate reached EGP 380.45 on December 31, 2023.
• The Bank’s portion is 50,000 certificates with a redeemed value of EGP 19,023 thousands.
38. Transactions with related parties
All banking transactions with related parties are conducted in accordance with the normal banking practices and regulations
applied to all other customers without any discrimination.
344 • CIB Annual Report • 2023
2023 • CIB Annual Report • 345
Financial Statements • Separate • 38.1. Loans, advances, deposits and contingent liabilities
Stamp duty tax
Loans, advances and other assets
Deposits
Contingent liabilities
EGP Thousands
Dec.31, 2023 Dec.31, 2022
1,081,864
123,560
173,143
941,131
728,866
-
• The period since the start of activity till 31/07/2006 was examined & paid, disputed points have been transferred to the court
for adjudication & cases are being resolved as per Tax disputes termination law.
• Settlment the period from 01/08/2006 till 31/12/2022 in accordance with the protocol signed between the Federation of
Egyptian Banks & the Egyptian Tax Authority
Disclosures related to cash flow statement
38.2. Other transactions with related parties
41 . Other assets - net increase (decrease)
International Co. for Security & Services
CVenture Capital
Commercial International Bank (CIB) Kenya
Damietta shipping & marine services
Commercial International Finance Company
Al ahly computer
TCA Properties
39. Main currencies positions
Egyptian pound
US dollar
Sterling pound
Japanese yen
Swiss franc
Euro
EGP Thousands
Dec.31, 2023
Dec.31, 2022
Income
Expenses
Income
Expenses
-
716
1,024
14
90
22
151,493
-
1,284
4,335
625
4,546
103
-
73
740
790
2
4
3
138,162
215,848
93
-
564
2,155
-
-
EGP Thousands
Dec.31, 2023 Dec.31, 2022
(395,392)
899,747
1,124
-
109
35,891
204,337
677,736
11,418
(101)
1,471
(278,430)
Main currencies positions above represents what is recognized in the balance sheet position of the Central Bank of Egypt.
40. Tax status
Corporate income tax
• Settlement of corporate income tax since the start of activity till 2020.
• The yearly income tax return submitted in legal dates.
Salary tax
• Settlement of salary tax since the start of activity till 2022.
Total other assets by beginning of the year
Assets acquired as settlement of debts
Advances to purchase fixed assets
Total 1
Total other assets by end of the year
Assets acquired as settlement of debts
Advances to purchase fixed assets
Uncollected installments from investments in associates
Impairment (Release) charge for other assets
Total 2
Change (1-2)
Total other assets by beginning of the year
Assets acquired as settlement of debts
Advances to purchase fixed assets
Total 1
Total other assets by end of the year
Assets acquired as settlement of debts
Advances to purchase fixed assets
Impairment (Release) charge for other assets
Total 2
Change (1-2)
EGP Thousands
Dec.31, 2023
14,454,868
(124,098)
(1,339,496)
12,991,274
18,929,067
(49,019)
(1,906,547)
(11,956)
17,620
16,979,165
(3,987,891)
EGP Thousands
Dec.31, 2022
11,141,917
(153,423)
(1,134,366)
9,854,128
14,454,868
(124,098)
(1,339,496)
(277,766)
12,713,508
(2,859,380)
346 • CIB Annual Report • 2023
2023 • CIB Annual Report • 347
Financial Statements • Separate • 42. Significant events during the year
• On 3 August 2023, the Monetary Policy Committee (MPC) decided to raise the Central Bank of Egypt’s (CBE) overnight
deposit rate, overnight lending rate, and the rate of the main operation by 100 basis points to 19.25 percent, 20.25 percent,
and 19.75 percent, respectively. The discount rate was also raised by 100 basis points to 19.75 percent , which may affect the
bank’s policies in pricing current and future banking products.
• On 30 March 2023, the Monetary Policy Committee (MPC) decided to raise the Central Bank of Egypt’s (CBE) overnight
deposit rate, overnight lending rate, and the rate of the main operation by 200 basis points to 18.25 percent, 19.25 percent,
and 18.75 percent, respectively. The discount rate was also raised by 200 basis points to 18.75 percent , which may affect the
bank’s policies in pricing current and future banking products.
• During 2023 Central Bank of Egypt (CBE) and the Central Bank of Kenya (CBK) have granted the Bank their consent to acquire
49% of Commercial International Bank (CIB) Kenya to become a fully owned subsidiary of the Bank, for USD 40 million.
• During 2023, CIB obtained USD 150 million Subordinated Debt from the International Finance Corporation (IFC) member
of the World Bank Group.
• During 2023, CIB obtained USD 150 million Subordinated Debt from European Bank for Reconstruction and Development
(EBRD).
43. Non current assets held for sale
- CVenture Capital
EGP Thousands
Dec.31, 2023 Dec.31, 2022
159,828
-
• During 2023 CIB BOD decided to start liquidation process for C-Ventures company, one of bank’s subsidiaries.
44. Subsequent events
On 1 February 2024, the Monetary Policy Committee (MPC) decided to raise the Central Bank of Egypt’s (CBE) overnight deposit
rate, overnight lending rate, and the rate of the main operation by 200 basis points to 21.25 percent, 22.25 percent, and 21.75
percent, respectively. The discount rate was also raised by 200 basis points to 21.75 percent , which may affect the bank’s policies
in pricing current and future banking products.
348 • CIB Annual Report • 2023
2023 • CIB Annual Report • 349
Financial Statements • Separate •