A L E G A C Y F O R T H E F U T U R E 2024 ANNUALREPORT 2024 A Legacy for the Future CIB has remained steadfast in its commitment to the core pillars of resilience and transformation that serve as the foundation for its enduring legacy.ANNUALREPORT 2024 01 • 02 • 05 • 06 • CIB Introduction Strategic Direction Our Controls Responsible Banking At a Glance ........................................................................ 08 Financial Highlights ..................................................... 10 Our History ....................................................................... 12 Leadership ......................................................................... 16 What We Do ...................................................................... 34 CIB’s Stock ......................................................................... 36 Awards ................................................................................. 40 Our Strategy ...................................................................... 48 Value Creation Model .................................................. 54 Chair of the Board’s Note ........................................... 58 CEO’s Note ......................................................................... 60 BOD Report ....................................................................... 64 Risk Group ...................................................................... 128 Internal Audit ............................................................... 130 Compliance Group ..................................................... 132 Sustainable Finance .................................................. 138 Corporate Governance ............................................. 146 Social Development ................................................... 154 FRA Disclosures .......................................................... 162 03 • 04 • 07 • 08 • Our Businesses Lines Support Functions Subsidiaries and Associates Financial Statements Institutional Banking .................................................. 82 Retail Banking ................................................................. 94 Financial Inclusion ..................................................... 106 Operations + IT .............................................................110 Human Resources ........................................................114 Marketing and Corporate Communications..... 120 Commercial International Bank (CIB) Kenya Limited ..............................................................................180 Damietta Shipping ......................................................181 Commerical International Finance Company ....181 Al Ahly Computer Equipment ...............................182 TCA ......................................................................................182 Financial Statements .................................................184 TABLE OF CONTENTSANNUALREPORTSection Flag / Subsection / sub-sub-section 01• CIB Introduction 6 • CIB Annual Report • 2024 2024 • CIB Annual Report • 7 Throughout its decades-long legacy, CIB has worked to create outstanding stakeholder value and provide superior customer service solutions to a broad range of clients. 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 commitment to fully integrating world-class technology into its services and products allow it to maintain its leadership position in the market and provide staff with an engaging work environment, while generating mounting value. The Bank serves an expansive network of retail customers, high-net-worth individuals (HNWIs), enterprises, and institutions that are essential drivers of the Egyptian economy. In fostering a well-established network of 212 branches and banking units, as well as a workforce comprising 8,290 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, effi- cient banking service offering in the Egyptian market. CIB also operates two representative offices, one in Dubai and the other in Addis Ababa, boosting busi- ness further through these key market channels while capitalizing 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, Commercial International for Finance Company (CIFC), and Damietta Shipping Marine Services (DSMS), in which CIB’s shares are 100%, 99.96%, and 49.95%, respectively. In addition to CIB’s strategic subsidiaries, the Bank has direct ownership in two affiliates: Al Ahly Computer Equipment Company (ACE) and T.C.A Properties, in which it owns 39.33% and 37% stakes, 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. 212 Branches EGP BN 99 Revenues 8,290 Employees +2 Million Clients 244.17EGP BN Average Market Cap 1,388 ATMs 8 • CIB Annual Report • 2024 2024 • CIB Annual Report • 9 CIB’s dynamic business model and commitment to fully integrating worldclass technology into its services and products maintain its leadership status in the market. CIB Introduction Financial Highlights FY24 Consolidated FY23 Consolidated FY22 Consolidate FY21 Consolidate FY20 Consolidated FY24 FY23 FY22 FY21 FY20 FY19 FY18 FY17 FY16 FY15 FY24 Consolidated FY23 Consolidated FY22 Consolidate FY21 Consolidate FY20 Consolidated FY24 FY23 FY22 FY21 FY20 FY19 FY18 FY17 FY16 FY15 Common Share Information Per Share Earning Per Share (EPS)1 Book Value (BV/No of Share) 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) 16.39 49.8 96.5 71.9 78.5 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 14.4 47.4 28.9 38.1 3,043 3,020 2,983 1,970 1,478 1,469 1,167 1,162 1,154 1,147 238,888 219,367 123,715 102,453 87,464 121,963 86,439 89,865 88,155 43,692 4.79 8.46 8.59 8.52 9.46 11.3 10.2 13.4 16.8 10.6 3.18% 0.76% 1.30% 2.62% 0.0% 1.51% 1.35% 1.29% 0.65% 1.97% 13.7% 5.8% 10.0% 20.0% 0.0% 15.6% 15.3% 15.4% 9.70% 18.5% 1.57 2.43 1.83 1.49 1.47 2.35 2.53 3.17 4.14 2.65 Net Operating Income 98,956 58,838 34,753 27,108 27,168 98,602 57,411 34,608 27,166 27,128 23,379 20,752 15,307 11,442 10,301 Financial Measures Cost : Income 14.0% 17.1% 21.2% 22.8% 20.7% 13.5% 17.0% 20.7% 22.4% 20.5% 21.6% 20.3% 20.4% 21.3% 19.7% 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 49.5% 39.7% 25.1% 21.7% 19.2% 50.0% 38.6% 25.1% 21.9% 19.3% 29.6% 33.1% 32.7% 34.0% 32.8% 9.48% 7.55% 6.10% 5.67% 6.75% 6.48% 6.43% 4.97% 5.47% 5.74% 5.44% 4.06% 2.86% 2.88% 2.53% 5.48% 3.95% 2.87% 2.93% 2.55% 3.26% 3.02% 2.72% 2.70% 2.90% 8,290 7,917 7,700 7,308 7,071 6,900 6,759 6,551 6,422 5,983 Balance Sheet and Off-Balance Sheet Information (EGP millions) Cash Resources, Investments, and Securities5 441,826 336,908 209,044 136,211 131,858 441,205 336,711 209,387 136,502 131,708 63,226 69,030 63,673 73,035 34,097 Net Loans and Advances 353,098 235,808 196,578 145,887 120,347 350,511 234,647 195,599 145,078 119,632 119,946 106,377 88,428 86,152 57,211 Assets Deposits Shareholders’ Equity and Net Profit 1,214,973 834,866 635,832 498,236 427,842 1,209,319 832,527 633,643 496,651 426,145 386,697 342,423 294,771 263,852 179,193 972,596 677,237 531,617 407,242 341,169 967,895 675,310 530,125 406,101 340,087 304,484 285,340 250,767 231,965 155,370 152,636 90,481 67,758 68,848 59,476 151,686 90,300 67,721 68,928 59,405 51,800 34,147 28,384 21,276 16,512 Average Assets 1,024,920 735,349 567,034 463,039 407,292 1,020,923 733,085 565,147 461,398 406,421 364,560 318,597 279,312 221,523 161,420 Average Shareholders' Equity 121,559 79,120 68,303 64,162 55,678 120,993 79,010 68,324 64,166 55,602 42,973 31,265 24,830 18,894 15,664 4,524 4,270 1,585 1,680 5,019 4,468 4,287 1,512 1,677 4,989 1,435 3,076 1,742 893 1,682 Balance Sheet Quality Measures Impairment release (charges) for credit losses Release (charges) of other provisions 3,401 2,839 1,855 412 1,287 3,399 2,833 1,856 411 1,289 362 401 115 72 135 Total Provisions 7,925 7,109 3,440 2,092 6,306 7,867 7,120 3,368 2,089 6,278 1,797 3,477 1,857 965 1,818 Non-interest Expense 13,896 10,076 7,372 6,183 5,626 13,334 9,766 7,177 6,096 5,553 5,045 4,223 3,119 2,433 2,028 Net Profit 55,196 29,635 16,114 13,272 10,238 55,428 28,768 16,130 13,420 10,300 11,804 9,556 7,550 5,951 4,641 Equity to Risk-Weighted Assets 3 Risk-Weighted Assets (EGP billions) 20.6% 22.3% 19.3% 27.5% 29.0% 20.4% 22.3% 19.3% 27.5% 28.9% 24.3% 16.9% 15.6% 13.3% 15.7% 671 382 331 234 201 671 382 331 234 201 199 186 169 150 96 Tier 1 Capital Ratio 3 20.0% 22.0% 19.2% 26.9% 28.1% 20.0% 22.0% 19.2% 26.9% 28.1% 23.6% 16.2% 14.9% 12.9% 15.0% Capital Adequacy Ratio 3 24.1% 26.2% 22.7% 29.9% 31.4% 24.1% 26.2% 22.7% 29.9% 31.4% 26.1% 19.1% 18.0% 14.0% 16.1% 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 Excluding Treasury Bills and Governmental Bonds. 10 • CIB Annual Report • 2024 2024 • CIB Annual Report • 11 CIB Introduction 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 shareholder 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 subsidiaries of Fairfax Financial Holdings, making the latter the sole strategic shareholder in CIB. Fairfax is represented on CIB’s Board of Directors by a non-executive member. • 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 1975 1977 2001 • 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 2006 • First to adopt a pricing policy according to client risk rating to abide by Basel II requirements • 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 2010 • 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 • 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 2011 • CIB-TCM becomes pioneer in trading in almost 114 new and unconventional currencies • 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 1994 • First bank in Egypt to connect with the international SWIFT network 2007 • Only bank in Egypt chosen by UNIFEM and World Bank to participate in the Gender Equity Model (GEM) 2012 • First Egyptian bank to officially establish a Sustainable Development Department 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 1996 • First Egyptian bank to have a Global Depository Receipt (GDR) program on the London Stock Exchange (LSE) 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 2013 1989 • First Egyptian commercial bank to arrange debt swap transactions 1998 • First bank to launch a smart card center in Egypt • 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 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 • 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 • 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 12 • CIB Annual Report • 2024 2024 • CIB Annual Report • 13 CIB Introduction / Our History 2018 2014 • 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 • 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 2015 • 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 2016 • 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 2017 • Becomes the only Egyptian bank ranked on the FTSE4Good Sustainability Index 2019 • 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 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 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) 2024 Appoints Bank’s first female non-executive Chair of the Board. Crossed the EGP 1 trillion mark of total assets 14 • CIB Annual Report • 2024 2024 • CIB Annual Report • 15 CIB Introduction Leadership Board of Directors Ms.Neveen Sabbour Chair Mr. Hisham Ezz Al-Arab CEO & Executive Board Member in addition to representing AAIB at International Capital Markets Association. 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. Neveen Sabbour is a seasoned banker with extensive experience in M&A, business strategy, banking transformation, financial planning, and management information systems. In 2024 Ms. Sabbour as was appointed as Non-Executive Chair, the first woman to chair CIB’s Board. She currently serves on the boards of several finan- cial and industrial institutions that includes Meris (Moody’s Egypt) and PFI (Egypt Post Investment Arm). She also sits on the Board of Heliopolis for Housing & Construction. 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’s empower- ment and financial inclusion. Ms. Sabbour is also the Chairwoman & CEO of Panther Associates, a boutique investment house, institutional advisory, and leading asset manage- ment institution. Ms. Sabbour also chaired AAIB Holding Company and was a board member at Arab African Investment Management Company, Mr. Hisham Ezz Al-Arab was reappointed as Chief Executive Officer and Board Member of the Commercial International Bank (CIB) – Egypt, in November 2024. Formerly, Mr. Ezz Al-Arab was the Chairman of the Commercial International Bank (CIB) – Egypt since March 2023; prior to his appoint- ment in CIB, Mr. Ezz Al-Arab served as an advisor to the Governor of the Central Bank of Egypt for three months in 2022 before rejoining CIB as Non-Executive Director of the Board in December 2022. In 2020, Mr. Ezz Al-Arab founded and chaired HE Advisory till his appointment as CIB Chairman in March 2023 where he - with over 40 years of experience as an international banker across Europe, the Middle East, and Africa - had advised corporations on Growth Strategies, Resources Mobilization and Financial Risk Management and provided fundraising advice and strategic counsel to start-up fintechs. 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 transformed 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 more than EGP 250 billion. As the blue-chip component of the Egyptian Exchange with ADRs and GDRs listed on the New York and 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. His leadership was committed to cultivating and perpetuating a culture of entrepreneurial spirit and meritocracy and to global best practices with respect to corporate governance and risk manage- ment. 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 sustain- ability report and to join the signatories for the United Nations Environment Program Financial Initiatives: Principles for Responsible Banking. CIB was also included in the Low Carbon Select Index in the Middle East and North Africa (MENA). In 2019, 16 • CIB Annual Report • 2024 2024 • CIB Annual Report • 17 CIB Introduction / Leadership 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 7 million children and is a leading Egyptian voice for universal access to quality healthcare extended to underprivileged children. Mr. Ezz Al-Arab is a former board member of GB Capital For Financial Investments, a former board member of the Gulf Insurance Group (GIG), a Member of the Institute of International Finance (IIF) in Washington and a member of the Emerging Markets Advisory Council (EMAC). Mr. Ezz Al-Arab is a 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 estab- lished for a dedicated undergraduate student). Mr. Ezz Al-Arab is also a former board member of “Fairfax Africa”, “RW MENA” and “Smart Africa”. Prior to joining CIB in 1999, Mr. Ezz Al-Arab spent his career as a banker in London Merrill Lynch, Deutsche Bank and JP Morgan. CIB was named to the Bloomberg Gender Equality Index, the only company in Egypt and Africa to be listed. He also led the digital transformation of the Bank’s processes and practices, including the establishment of a Data Analytics unit, the first such effort at an Egyptian bank. 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 (now known as “CIB Kenya Limited” a fully owned subsidiary by CIB) to provide trade finance and credit facilities for the Bank’s Egyptian mid-sized corporate customers looking to expand into Africa. Mr. Ezz Al-Arab has been recognized by a number of global publications for his leadership and the Bank’s performance. 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, the first bank in Egypt and MENA to receive this award. The same year they were awarded Best Bank in the Middle East. In 2018, CIB received the Best Bank for Social Responsibility in the Middle East. CIB was named Best Emerging Markets Bank by Global Finance in both 2018 and 2020. In May 2023, Mr. Ezz Al-Arab received the pres- tigious African Banker’s “Lifetime Achievement Award” in recognition of his remarkable achieve- ments throughout his banking career especially as leader of CIB. Mr. Paresh Sukthankar Independent Director of the College of Supervisors of the Reserve Bank of India, the India Think Tank of BNP Paribas and the Advisory Board of two NGOs (Project Mumbai and KSWA’s Yuva Parivartan). Mr. Sukthankar received a BCom from Sydenham College and an MBA from Jamnalal Bajaj Institute of Management Studies, University of Mumbai. He also completed the Advanced Management Program (AMP) from Harvard Business School. 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. He resigned from HDFC Bank in 2018. Mr. Sukthankar has been a member of various committees formed by Reserve Bank of India and Indian Banks’ Association. Prior to joining HDFC Bank, he worked at 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 Academic Council 18 • CIB Annual Report • 2024 2024 • CIB Annual Report • 19 CIB Introduction / Leadership Mr. Rajeev Kakar Independent Director Mr. Sherif Samy Independent Director Mr. Rajeev Kakar is a seasoned banker, business founder, entrepreneur, and Corporate Board Member with over three decades of global banking experience and expertise in financial services, especially in Emerging Local Corporate/Commercial/MSME/ Retail Banking, across multiple countries globally with focus on high-growth emerging markets in the Asia Pacific/China, Europe, Indian Sub-Continent, MENA/GCC, and Central/Eastern Europe regions. Mr. Kakar has a strong track record of successfully operating large banks, financial institutions and leading business turnarounds, with a demonstrated ability to conceptualize and execute multi-country business strategies, lead acquisitions and business/ digital transformations, launch green-field financial services businesses, and deliver profitability over a sustained period, while contributing to the community and actively serving on several prominent boards across different countries. He started his career at Citibank NA, where he worked for two decades, and in his last role was the Regional CEO – Turkey/Middle East/Africa region until 2006. He became the Global Co-Founder 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, and the CEO- CEEMEA region of Fullerton Financial from 2006-2017. During this time, he became the founder of Dunia Finance LLC, Fullerton’s UAE subsidiary, which he operated as its Founder, Managing Director and CEO until 2018. Mr. Kakar currently serves on several Bank and Financial Institution boards, across different geographies - namely, Eurobank Ergasias SA (Greece), Gulf International Bank (GIB Bahrain), Gulf International Bank (GIB Saudi Arabia), and Commercial International Bank (Egypt). He is also a member of the Global Advisory Board of the University of Chicago’s Booth School of Business since 2009. Mr. Kakar is a former board member in Commercial International Bank (CIB) Kenya and UTI Asset Management Company (India), and he held both these positions until recently in 2024. Mr. Kakar received his Masters of Business Administration (MBA) in Finance and Marketing from the Indian Institute of Management Ahmedabad. He also received his Bachelor of Technology in Mechanical Engineering from the Indian Institute of Technology Delhi. 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, in addition 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, as well as a member of the Board of Trustees of the French University in Egypt. Chairman of the Financial Services Institute, the Egyptian Institute of Directors and a member of the board of Egypt’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 from 2007, he was appointed for several consecutive terms to the board of the investment promotion agency (GAFI). Mr. Samy served as the Non-Executive Chairman of Commercial International Bank from October 2020 to March 2023. He also served a four-year term (ending 2017) as Chairman of Egypt’s independent non-banking Financial Regulatory Authority (FRA), where he achieved a major legislative and regulatory leap in capital markets, insurance, mortgage, leasing, private pensions, factoring and microfinance. Mr. Samy started his professional career with global consulting firm Accenture, where he worked in 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, manage- ment, and investment. From 2013 to 2017, Mr. Samy was a member of the CBE’s board and Monetary Policy Committee, as well as Chair of its Audit Committee. He was also 20 • CIB Annual Report • 2024 2024 • CIB Annual Report • 21 CIB Introduction / Leadership Mr. Fadhel Al Ali Non-Executive Director Mr. Al Ali started his career as a banker in 1989 in Citibank and joined Dubai Holding in 2004, where he served in multiple positions including CFO, COO, and, finally, CEO till 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 on May 2022 as a Non-Executive Board member, repre- senting the interests of Alpha Oryx Ltd. He holds a bachelor’s degree in Industrial and System Engineering from the University of Southern California. Mr. Fadhel Al Ali serves as the Chairperson of Dubai Financial Services Authority (DFSA). He is a strategic leader with a vast range of experi- ence in corporate governance and commercial roles across a variety of business contexts such as startups, rapid growth, fix-it, and turnarounds. He brings 30 years of experience in multiple industries including real estate, hospitality, investment, and banking and has led several corporate functional organizations such as Finance, HR, Legal, Business Excellences and Marketing and Communications. Throughout his career, Mr. Al Ali has made remark- able achievements that extend across contributing to the creation of Dubai Holding and managing its 2009 post-recession crisis, along with contributing to the creation of its new business model as a stra- tegic 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. Aziz Moolji Non-Executive Director Mr. Moolji joined CIB’s Board of Directors on May 2022 as a Non-Executive Board Member representing the interests of Alpha Oryx Ltd. He holds a BS in Electrical Engineering and Management from Massachusetts Institute of Technology, Cambridge. Later, he received his Master Degree in Finance from the Wharton School of the University of Pennsylvania. 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 2.0 billion in transactions across Financial Services, Consumer Products, Industrials, Infrastructure, Education, Hospitality and Logistics. 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 Abraaj Group, Dubai, where he served as Managing Director, Private Equity for ten years and led transaction execution, post-acquisition management, and exits for transactions across 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. 22 • CIB Annual Report • 2024 2024 • CIB Annual Report • 23 CIB Introduction / Leadership Eng. Hoda Mansour Independent Director Mr. Jawaid Mirza Non-Executive Director Eng. Hoda Mansour is a highly experienced, creative, and self-motivated executive with nearly 25 years of experience. She worked for leading multina- tional software companies including SAP, Oracle, Microsoft and most recently at IFS in regional and global capacities, based out of three different conti- nents (Europe, Asia and Africa), which gave her a well-rounded experience in dealing with different cultures, challenges and business models. Prior to joining IFS, Eng. Hoda was leading SAP’s Business Process Transformation Practice across Southern Europe, Middle East & Africa and was the first female to be appointed by SAP as a Managing Director in the whole Middle East & Africa region. She holds strong technical and business qualifications with a solid track record, having successfully led diverse teams of professionals in highly competitive, complex, and fast-paced environments. Her leadership resulted in the successful transformation of the companies’ positions in those markets. Eng.Hoda was recognized by Forbes Middle East as one of the Top 100 Businesswomen for 2024 where she was recognized on the prestigious Forbes list since 2018. She was also recognized as one of the Top 50 women in Egypt and awarded the Best Distinguished Women Award in the field of Digital Transformation by the Arab Council for Social Responsibility in 2021. Eng.Hoda was elected as a board member of the American Chamber of Commerce in June 2021 and Vice President and board member of the German-Arab Chamber of Industry & Commerce in September 2020. In September 2023, she was appointed as Chief Operating Officer for Asia Pacific, Japan, the Middle East & Africa (APJ, ME&A) at IFS, the global cloud enterprise software company. In Jan 2024, Eng. Hoda was appointed as Non-Executive Director of Centamin PLC- a FTSE 250 Gold Mining company and a member of its Audit & Risk Committee and Sustainability Committee. In November 2024, she was appointed via a presiden- tial decree by President Sisi as member of the board of the National Council for Women (NCW). Eng.Hoda holds a B.Sc. with Distinction & Honors in Engineering from Alexandria University in addition to Master’s in Business Administration (MBA) with Distinction from Maastricht School of Management. Latin America. He was a member of the Top Executive Group (TEG) of ABN AMRO Bank, and a 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 is the Vice Chair of the Board Audit committee and member of the Board Nomination & Governance committee and the Board Remuneration Committee. He is also a Non-Executive Board member of AGT Food & Ingredients (Canada). Mr. Mirza holds various business management courses from reputable institutions like Queens Business School, Wharton Business School, Stanford Graduate School of Business. He is a member of the Institute of Corporate Directors, Canada. Mr. Mirza is a seasoned banker and strong propo- nent and practitioner of international corporate governance and brings over 35 years of diversified experience and a solid track record in all facets of financial and risk management, 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 International Bank -Egypt (CIB) as Managing Director & CEO of Consumer Banking and Group COO. Over the years, Mr. Mirza has worked with global institutions like Citibank and ABN AMRO Bank Ltd., where he held several senior positions such as CFO European Region, Managing Director and Chief Operating Officer for Global Private Banking, Asset Management and New Growth Markets, and Chief Financial Officer for Asia, including Australia, New Zealand and Middle East. Mr. Mirza led several due diligences for bank acquisitions in Europe, Asia, and 24 • CIB Annual Report • 2024 2024 • CIB Annual Report • 25 CIB Introduction / Leadership Mr. Amr El Ganainy Deputy CEO & Executive Board Member 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, of which he remains Honorary Chairman. He represented CIB in a number of its affiliates, chairing the Board of Directors of Commercial International Brokerage Co. (CIBC), CI Asset Management Co. and a Board Member of CI Capital Holding Co. With his renowned reputation and widely acclaimed experience, Mr. El Ganainy was selected as an independent board member in large corporations in Egypt in the aviation, tourism, financial services, and telecommunications sectors. He was also elected Board Member in Misr for Central Clearing, Depositary and Registry Co. for five consecutive rounds from 2005 to 2021. Mr. El Ganainy’s experience led to his appointment 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. 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 to 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 department 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 leadership excellence, 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 of Institutional Banking at CIB since 2017, achieving short- and medium-term strategic objectives, while aligning with the Bank’s philosophy, mission, and vision. In November 2024, in his capacity as Deputy CEO, Mr. Amr El Ganainy joined the Board as Executive Director. Mr. El Ganainy’s exposure has stretched globally; he was the first Egyptian and youngest Chairman of Mr. Islam Zekry Group Chief Financial Officer and Board Member World Economic Forum WEF. Most recently he was nominated to the Egyptian AI Council to formu- late and execute the country’s AI vision strategy. Mr. Zekry is a member of the Chartered Institute of Managerial Accountants in the UK, member of FITCH Quantitative Finance Institute in London, and Non-Executive-Director at NLB Banking Group in Central Europe. 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 by the master’s program for Advanced Analytics. Subsequently, Harvard Business School included the case study in its curriculum, and it became a reference for a number of international and academic research centres. Mr. Islam was leading the team responsible for multiple prestigious awards and international recog- nition from global institutions such as Euromoney, Global Finance, International institute of Finance (IIF), Carnegie Mellon University distinguished quants practice award and Digital Awards 50-Silicon Valley. Mr. Zekry holds Doctorate in Financial mathematics and MBA from the University of Chicago- Booth Business School with a concentration in Advanced Financial Analytics and Corporate Economic Performance Management. Mr. Islam Zekry is Group Chief Financial Officer and Head of Strategy at CIB where he is an Executive Director of the CIB Board of Directors, a member of the Bank’s Executive Committee, and a board member of CIB Kenya. Mr. Zekry has demonstrated a proven track record in optimizing financial performance, driving growth, fostering innovation, and delivering value to stake- holders. His extensive knowledge of global markets, regulatory environments, and industry trends—both locally and internationally—enables him to provide strategic financial guidance that supports CIB stra- tegic objectives. Prior to his appointment as CFO in 2023, Mr. Zekry was the first appointed Chief Data Officer having created the Data Analytics group in 2016. In that role he oversaw data warehousing, business design and operations, analytics, and the Bank’s quant finance platforms. He joined CIB in 2004 in the Finance Department. Mr. Zekry has broad international experience in markets across Europe, the Middle East and Africa. He is a steering committee member of Smart Africa, an international alliance established to accelerate sustainable socioeconomic development on the continent. He is a member of the EU-AU Digital Economy Task Force, which examines ways of coop- erative engagement in the field of digital economy between Europe and Africa. In addition, he serves on the Digital Transformation Committee of the 26 • CIB Annual Report • 2024 2024 • CIB Annual Report • 27 CIB Introduction / Leadership Executive Management Mr. Hisham Ezz Al-Arab CEO & Executive Board Member Mr. Hisham Ezz Al-Arab was reappointed as Chief Executive Officer and Board Member of the Commercial International Bank (CIB) – Egypt, in November 2024. Formerly, Mr. Ezz Al-Arab was the Chairman of the Commercial International Bank (CIB) – Egypt since March 2023; prior to his appointment in CIB, Mr. Ezz Al-Arab served as an advisor to the Governor of the Central Bank of Egypt for three months in 2022 before rejoining CIB as Non-Executive Director of the Board in December 2022. In 2020, Mr. Ezz Al-Arab founded and chaired HE Advisory till his appointment as CIB Chairman in March 2023 where he - with over 40 years of experience as an international banker across Europe, the Middle East, and Africa - had advised corporations on Growth Strategies, Resources Mobilization and Financial Risk Management and provided fundraising advice and strategic counsel to start-up fintechs. 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 more than EGP 250 billion. As the blue-chip component of the Egyptian Exchange with ADRs and GDRs listed on the New York and 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. His leadership was committed to cultivating and perpetuating a culture of entrepreneurial spirit and meritocracy and to global best practices with respect to corporate governance and risk manage- ment. 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 sustain- ability report and to join the signatories for the United Nations Environment Program Financial Initiatives: Principles for Responsible Banking. CIB was also included in the Low Carbon Select Index in the Middle East and North Africa (MENA). In 2019, CIB was named to the Bloomberg Gender Equality Index, the only company in Egypt and Africa to be listed. He also led the digital trans- formation of the Bank’s processes and practices, including the establishment of a Data Analytics unit, the first such effort at an Egyptian bank. a Member of the Institute of International Finance (IIF) in Washington and a member of the Emerging Markets Advisory Council (EMAC). Mr. Ezz Al-Arab is a former Chairperson of the Federation of Egyptian Banks, a former board member of the American University in Cairo (where a scholar- ship in his name was established for a dedicated undergraduate student). Mr. Ezz Al-Arab is also a former board member of “Fairfax Africa”, “RW MENA” and “Smart Africa”. Prior to joining CIB in 1999, Mr. Ezz Al-Arab spent his career as a banker in London Merrill Lynch, Deutsche Bank and JP Morgan. 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 (now known as “CIB Kenya Limited” a fully owned subsidiary by CIB) to provide trade finance and credit facilities for the Bank’s Egyptian mid-sized corporate customers looking to expand into Africa. Mr. Ezz Al-Arab has been recognized by a number of global publications for his leadership and the Bank’s performance. 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, the first bank in Egypt and MENA to receive this award. The same year they were awarded Best Bank in the Middle East. In 2018, CIB received the Best Bank for Social Responsibility in the Middle East. CIB was named Best Emerging Markets Bank by Global Finance in both 2018 and 2020. In May 2023, Mr. Ezz Al-Arab received the pres- tigious African Banker’s “Lifetime Achievement Award” in recognition of his remarkable achieve- ments throughout his banking career especially as leader of CIB. 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 underprivileged children throughout Egypt. As a result of its efforts, the Foundation has impacted the lives of more than 7 million children and is a leading Egyptian voice for universal access to quality healthcare extended to underprivileged children. Mr. Ezz Al-Arab is a former board member of GB Capital For Financial Investments, a former board member of the Gulf Insurance Group (GIG), 28 • CIB Annual Report • 2024 2024 • CIB Annual Report • 29 CIB Introduction / Leadership Mr. Amr El Ganainy Deputy CEO & Executive Board Member 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, of which he remains Honorary Chairman. He represented CIB in a number of its affiliates, chairing the Board of Directors of Commercial International Brokerage Co. (CIBC), CI Asset Management Co. and a Board Member of CI Capital Holding Co. With his renowned reputation and widely acclaimed experience, Mr. El Ganainy was selected as an independent board member in large corporations in Egypt in the aviation, tourism, financial services, and telecommunications sectors. He was also elected Board Member in Misr for Central Clearing, Depositary and Registry Co. for five consecutive rounds from 2005 to 2021. Mr. El Ganainy’s experience led to his appointment 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. 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 to 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 department 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 leadership excellence, 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 of Institutional Banking at CIB since 2017, achieving short and medium-term strategic objectives, while aligning with the Bank’s philosophy, mission and vision. In November 2024, in his capacity as Deputy CEO, Mr. Amr El Ganainy joined the Board as Executive Director. Mr. Islam Zekry Group Chief Financial Officer & Executive Board Member Mr. Islam Zekry is Group Chief Financial Officer and Head of Strategy at CIB where he is an Executive Director of the CIB Board of Directors, a member of the Bank’s Executive Committee, and a board member of CIB Kenya. Mr. Zekry has demonstrated a proven track record in optimizing financial performance, driving growth, fostering innovation, and delivering value to stake- holders. His extensive knowledge of global markets, regulatory environments, and industry trends—both locally and internationally—enables him to provide strategic financial guidance that supports CIB stra- tegic objectives. Prior to his appointment as CFO in 2023, Mr. Zekry was the first appointed Chief Data Officer having created the Data Analytics group in 2016. In that role he oversaw data warehousing, business design and operations, analytics, and the Bank’s quant finance platforms. He joined CIB in 2004 in the Finance Department. Mr. Zekry has broad international experience in markets across Europe, the Middle East and Africa. He is a steering committee member of Smart Africa, an international alliance established to accelerate sustainable socioeconomic development on the continent. He is a member of the EU-AU Digital Economy Task Force, which examines ways of coop- erative engagement in the field of digital economy between Europe and Africa. In addition, he serves on the Digital Transformation Committee of the World Economic Forum WEF. Most recently he was nominated to the Egyptian AI Council to formu- late and execute the country’s AI vision strategy. Mr. Zekry is a member of the Chartered Institute of Managerial Accountants in the UK, member of FITCH Quantitative Finance Institute in London, and Non-Executive-Director at NLB Banking Group in Central Europe. 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 by the master’s program for Advanced Analytics. Subsequently, Harvard Business School included the case study in its curriculum, and it became a reference for a number of international and academic research centers. Mr. Islam was leading the team responsible for multiple prestigious awards and international recog- nition from global institutions such as Euromoney, Global Finance, International institute of Finance (IIF), Carnegie Mellon University distinguished quants practice award and Digital Awards 50-Silicon Valley. Mr. Zekry holds Doctorate in Financial mathematics and MBA from the University of Chicago- Booth Business School with a concentration in Advanced Financial Analytics and Corporate Economic Performance Management. 30 • CIB Annual Report • 2024 2024 • CIB Annual Report • 31 CIB Introduction / Leadership Mr. Rashwan Hammady Chief Executive Officer, Retail Banking and Financial Inclusion Mr. Rashwan Hammady is a member of the Executive Committee at CIB, playing a crucial role in shaping and driving the Bank’s strategic agenda. With over two decades of experience at CIB, he began his career in the Finance Department, completed comprehen- sive credit and investment training, and later served as Head of Strategic Planning, laying the foundation for the development and execution of the Bank’s key strategic initiatives. Throughout his tenure, Mr. Hammady has spear- headed the launch of several landmark and innovative products and segments propositions, enhancing CIB’s ability to serve its growing customer base of over 3 million. He has successfully built the Bank’s SME business, launched an advanced digital banking platform, and established a tailored service model for Egyptians living abroad. Under his leadership, CIB has secured the largest household market share among private sector banks in both assets and liabili- ties. In 2024, Mr. Hammady inaugurated CIFC, a CIB subsidiary offering factoring and mortgage finance services, where he serves as Chairman of the board. His leadership philosophy emphasizes talent devel- opment and a culture of agility and continuous improvement, inspiring teams to innovate, embrace diversity, and rapidly learn from experiments. His vision is to provide accessible financial solutions that empower individuals and businesses to achieve their goals and contribute positively to the broader communities where CIB operates. Through advanced analytics and AI his team is on a mandate to enhance the banking experience and create value for CIB’s wide customer base. Mr. Hammady holds a bachelor’s degree in commerce from Sohag University and an MBA from The University of Chicago - Booth School of Business. Mr. Omar El-Husseiny Head of Treasury Group 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 the University of Wisconsin, Madison. In 2019, he completed the Corporate Finance & Credit Program at J.P. Morgan. Mr. Omar El-Husseiny is Treasurer of Commercial International Bank Egypt (CIB) and a member of the Bank’s Executive Committee. As Treasurer, he is responsible for the overall funding and investment, risk management, and trading activities for money markets, debt securities, and structured products. With over 20 years of experience in treasury, capital markets, FX, balance sheet management, and inter- national trading, he constructs structured products 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 spent his career at CIB, having joined after completing his Bachelor of Business Administration at the Faculty of Commerce at Cairo 32 • CIB Annual Report • 2024 2024 • CIB Annual Report • 33 CIB Introduction What We Do Institutional Banking, Corporate Banking, and Global Customer Relations Group Widely recognized as Egypt’s leading preeminent corporate 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. Treasury and Capital Market Services CIB delivers world-class services in the areas of cash and liquidity management, capital markets, foreign exchange, and derivatives. Strategic Relations Group CIB is dedicated to serving 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, offering 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. 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. Commercial International Bank – Ethiopia Representative Office Established and operational since July 2019, CIB Ethiopia Representative Office is committed to fostering bilateral trade between Ethiopia and Egypt by providing solutions and bridging market information gaps. While the office supports Egyptian exporters aiming to expand into the Ethiopian market, it also seeks to identify market needs in Ethiopia and align them with Egyptian exporters to create new business opportunities. The office is connected across key sectors, main- taining strong relationships with local Ethiopian banks, international financial institutions who are indispensable partners in facilitating trade finance transactions, as well as Egyptian corporates, among other key stakeholders in Ethiopia. These connec- tions enable the office to stay attuned to market developments, gather business leads, and explore opportunities thar benefit our clients. By leveraging these partnerships and network, the office is posi- tioned to provide on-ground market intelligence and offer seamless solutions to our clients. 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 pres- ence with the acquisition of the remaining 49% stake in Mayfair CIB Bank Limited, making it CIB’s first fully owned subsidiary outside 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, set up shop in the hub of Eastern Africa, and serve multi- national and local SMEs in Kenya. Commercial International for Finance Company (CIFC) The Commercial International Finance Company (CIFC) launched operations in April 2024 through a full factoring product suite catering to the increasing demand for alternative financial solutions. Factoring products offered a wide range of value-added services, counting on the company’s domestic and international product offerings. In its first year, the company managed to cater its products to serve large Corporate and SME clients. It aims to rapidly expand its factoring finance business through the integration of financial services through advanced chain management solutions. Other NBFS activities are also under study. 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 34 • CIB Annual Report • 2024 2024 • CIB Annual Report • 35 CIB Introduction / What We Do 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. 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. +75k SMEs served CIB delivers world-class services in the areas of cash and liquidity management, capital markets, foreign exchange, and derivatives. 36 • CIB Annual Report • 2024 2024 • CIB Annual Report • 37 CIB serves enterprises ranging from industry-leading corporates to medium-sized businesses. CIB Introduction CIB’s Stock 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 trans- parent disclosures while simultaneously ensuring analysts have the needed information to maintain balanced coverage of the Bank’s shares. Throughout 2024, the Bank’s IR division attended eight conferences, seven of which were In-person. In more than 100 meetings, the team met more than 200 companies incorporating a wide range of inter- national, regional, and local institutions. The team also conducted annual rating review meetings with the four 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. Since the Bank began offering its shares to the public in 1995, it has become the largest 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. During the year, COMI recorded a 8.05% increase, with an opening price of EGP 72.65 and a closing price of EGP 78.5. Its average daily volume was 4.4 million shares and the average market capitalization recorded EGP 244.17 billion. Moreover, COMI’s average price-to-book ratio recorded 2.2, with a high of 3.22 and a low of 1.68. It is worth mentioning that in April 2024, a cash dividend was distributed, amounting to EGP 0.55 for every share. By year-end, the Bank’s DRs outstanding position reached 868,309,363 shares. GDRs recorded 858,837,330 shares while ADRs outstanding position recorded 9,472,033 shares, representing 28.53% of total issued shares. CIB continues to hold the highest weight on the EGX30, accounting for 26% of the index, and free float at 68.13 %. CIB’s stock is one of Egypt’s most liquid stocks, as it is considered the most valuable financial institution. Breakdown of Shareholders by Region (As of December 2024) Breakdown of Shareholders by Type (As of December 2024) North America ............................ 45.4% Institutions ............................. 93.6% GCC ...................................... 23.3% Individuals ................................ 6.4% Africa ..................................... 21.7% UK & Ireland ............................. 4.1% Continental Europe ...................... 3.3% Rest of the World ......................... 2.2% 38 • CIB Annual Report • 2024 2024 • CIB Annual Report • 39 CIB Introduction Awards 1993 – 1998 2005 • Six-time Recipient of Best Bank in Egypt • First Egyptian bank to win the JP Morgan Award by Euromoney Quality Recognition Award 2006 – 2012 2013 • Seven-time Recipient of JP Morgan Quality • First Egyptian bank to win the JP Morgan Recognition Award Elite STP Award 2016 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 • 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 2019 • World’s Best Emerging Markets Bank by • First Egyptian bank to win the JP Morgan Global Finance for the second consecutive year — CIB is the first bank in Egypt and the Middle East to win this prestigious award Quality Recognition Award 40 • CIB Annual Report • 2024 2024 • CIB Annual Report • 41 CIB Introduction / Awards 2020 2022 • 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 • 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 • Egypt/The Banker 42 • CIB Annual Report • 2024 2024 • CIB Annual Report • 43 CIB Introduction / Awards 2024 • Global Finance Best FX Bank in Egypt • Global Finance Best Bank for Sustainable Finance in Emerging Markets for Africa 2024 • Global Finance Best Bank for Sustainable Finance in Egypt 2024 • Euromoney Corporate Social Responsibility (CSR) Egypt • Euromoney SME Banking Egypt • Euromoney Highly Regarded Investment Banking • Euromoney Corporate Banking • Euromoney Digital Solutions • Euromoney ESG • Global Finance Best Private Bank in Egypt • MEED Cash Manager of the Year MENA • MEED Best Digital Bank Egypt • Euromoney Best Bank in Egypt 2024 • Euromoney Best Digital Bank in Egypt 2024 • Euromoney Best Bank for ESG in Egypt 2024 • EMEA Finance Best Financial Institution Syndicated Loan in North Africa • Global Finance Best Bank in Egypt • EMEA Finance Best Securitization House in Africa • EMEA Finance Best Telecommunications Deal: Etisalat Egypt’s loan facilities for capex programmes • EMEA Finance Best Property Deal: Orascom for Real Estate’s EGP 6 billion 10-year syndicated loan • Global Finance Best Bank for Collections in Africa • Global Finance Best Overall Bank for Cash Management • Global Finance Treasury and Cash Management Award 2024 • Euromoney Egypt’s Best FX Bank • Global Finance Best FX bank in Egypt 2025 • Fortune Top 10 of Fortune’s 2024 44 • CIB Annual Report • 2024 2024 • CIB Annual Report • 45 02• Strategic Direction 46 • CIB Annual Report • 2024 2024 • CIB Annual Report • 47 CIB’s strategy is designed to be adaptive, resilient, and forward-thinking. Guided by these pillars, CIB remains able to navigate its constantly changing environment. Srategic Direction Our Strategy As global market dynamics evolve and emerging trends reshape the financial landscape, CIB’s strategy is designed to be adaptive, resilient, and forward-thinking. Our mission remains to deliver sustainable value to our shareholders, elevate our customer experience, and drive operational excel- lence. We aim to be at the forefront of banking innovation, ensuring we meet the needs of our customers while strengthening our role as a trusted financial partner. Looking ahead, our growth strategy is anchored in a holistic approach that leverages both our physical and digital banking channels. We are committed to enhancing our commercial capabilities through a robust framework that combines customer-centric products, seamless service delivery, and agile busi- ness models. By integrating data-driven insights and advanced analytics, we are positioning ourselves to anticipate and act on market opportunities proac- tively, driving growth and creating long-term value. Our approach will be guided by three core pillars: deepening customer engagement, accelerating digital transformation, and optimizing operational efficiency. This strategy will enable us to expand our footprint across diverse customer segments, streamline our processes, and offer innovative financial solutions tailored to evolving customer needs. We will continue to invest in technological advancements and data-driven decision-making, ensuring that we remain adaptive to the complexi- ties of the financial ecosystem. In the years to come, we are committed to redefining what it means to bank in an interconnected world by offering unparalleled value, fostering customer loyalty, and maintaining our strategic advantage in a competitive market. Our three main strategic directions are: Protect the success of the corporate and liabilities franchises. Grow and diversify revenue sources 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 Operational Efficiency: Through digital innovation and prudent cost management. Superior Customer Experience: To further strengthen CIB’s brand equity. A Customer-Centric Business Model: Making data-driven decisions to unlock growth, leveraging 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. 48 • CIB Annual Report • 2024 2024 • CIB Annual Report • 49 Strategic Direction / Our Strategy Core Business CIB’s strategy focuses on strengthening its core business by enhancing operational efficiency and expanding its local presence to serve corporate, SME, and retail clients while pursuing financial inclusion opportunities. The Bank leverages data analytics, digital channels, and behavioral segmentation to create tailored value propositions that meet indi- vidual customer needs. Future growth will rely on investments in digital solutions and innovative offer- ings to enhance customer experiences and reduce transaction costs. To effectively serve low-income segments and minimize operational expenses, CIB will utilize alternative channels, such as its e-wallet, digital platforms, and ATM network, facilitating outreach across Egypt and onboarding previously unbanked individuals. In addition, CIB aims to protect and enhance its brand by developing unique value propositions supported by data-driven sales strategies and robust digital infrastructure. The Bank seeks to solidify its leadership in corporate banking by diversifying its lending portfolio toward future-focused sectors, while refining its customer-centric operating model. Recognizing the potential of the Non-Resident Egyptians (NRE) segment, CIB is committed to offering a fully remote service model tailored to this market’s needs. Serving as a Profitable and Scalable East African Hub After acquiring 100% of CIB Kenya (CIBKE), the plan is to continue upscaling and turning the business around, with a goal of becoming a regional hub in East Africa, enabling CIB to expand further across the region in the future. CIB Kenya initiated and implemented an exten- sive multi-level transformation plan during 2024, setting the foundation for a sustainable East African hub for years to come. CIB Kenya will continue upscaling as a business hub within the region, while offering inno- vative solutions for corporates, SME, and household customers and channeling trade opportunities between Egypt and Kenya. Ultimately, CIBKE will offer regional integration opportunities and synergies across Africa and the GCC. Organizational Development Human capital development is essential to CIB’s continued success, with a strong commitment to providing employees a safe and secure working environment that enhances productivity, innovation, engagement, loyalty, and commitment. The Bank prioritizes linking competencies to performance management across all levels to support personal- ized employee development plans. The nurturing of talent is a key priority, as the Bank recognizes its employees as its most valuable asset. CIB is dedicated to investing in employee training and education, ensuring that it delivers maximum value to share- holders and clients. Digital Transformation Speeding up the adoption of digital technologies and changing the way we do business is crucial to staying ahead of the market and consistently delivering to exceed customer needs. CIB will continue to digi- tize its internal processes to optimize costs while realizing gains in productivity. Through extended behavioral analysis and data-rich customer profiles, CIB can tailor products to serve customer needs, while increasing conversion rates and customer retention, loyalty, and advocacy. CIB is constantly seeking opportunities to capture and adopt new technologies, such as the ABCD forces: Artificial Intelligence, Blockchain, Cloud, and Data. CFO Area CFO Area Transformation and Strategic Evolution Over the past year, the CFO Area has undergone a strategic transformation that has strengthened the Bank’s position in a competitive financial landscape. By consolidating key functions—Financial Control, Strategy, and Business Analytics—into a single cohesive group, the Bank has broadened the CFO’s scope to drive value creation across the organization. This alignment has fostered synergies that empower the Strategy team to develop a robust and sustainable strategy that effec- tively supports the Bank’s financial and non-financial objectives. This holistic approach enables CIB to respond swiftly to market dynamics while maintaining a keen focus on cost efficiency and capital utilization. Furthermore, the enhanced collaboration between these functions fosters a culture of innovation and accountability, ensuring that financial strategies are not only aligned with immediate objectives but also support long-term growth and resilience, ultimately contributing to the Bank’s long-term success and value creation for its stakeholders. Throughout 2024, CIB successfully enhanced its operational efficiency through a series of strategic initiatives centered on automation, cost management, and revenue optimization. Embracing a Value-Centric Approach Aligned with global standards, the Bank is adopting a value-based approach across all levels of operation. This approach enables the Finance and Strategy Group to transcend traditional finan- cial management, fostering a culture of informed decision-making. The scope now extends beyond reporting and budgeting to encompass strategic planning, driving sustainable growth and ensuring alignment with both financial and broader orga- nizational goals. Driving Growth through Data and Analytics Reflecting the Bank’s commitment to long-term growth and innovation, the CFO Area has stra- tegically focused on leveraging data analytics and Enterprise Performance Management (EPM) systems to gain deeper insights into market trends and customer behavior. This data-driven approach enhances operational efficiency and elevates the customer experience, positioning the Bank at the forefront of decision-making excellence. By harnessing both historical and predictive data, the Bank is transforming from a traditional institution into a forward-thinking, data-powered organization. Adopting a Dynamic Capital Planning Framework While Safeguarding Shareholders The CFO Area has been instrumental in driving CIB’s growth and expansion while ensuring compliance with local and international regula- tory requirements. In 2024, it embraced a Dynamic Capital Planning Strategy that maintains a resil- ient capital position during both challenging and prosperous periods. Additionally, it continued to act as the consulting arm for different Bank groups for any capital-related initiatives, with special regard to state-of-the-art strategies that are newly introduced to the Egyptian banking sector. The CFO Area played a pivotal role in collaborating with the Bank’s Treasury Group to assess the impact of the Currency Interest Rate Swap (CIRS), as a newly introduced capital-hedging tool for the Bank, which simultaneously came to cement the foreign currency position of the Egyptian banking sector. Additionally, the CFO Area continued to secure additional subordinated funding from international agencies, to be recognized in the Bank’s Tier II Capital, while concurrently endorsing both CIB’s and the sector’s foreign currency liquidity position. The CFO Area was a key player in guiding business decisions by advising various business groups on balancing expansion with capital adequacy. Due focus was placed on allocating capital to businesses that would generate sustainable returns, sufficient to compensate for the consequent growth in risk- weighted assets. Continuing its role as the guardian of shareholders’ benefits, the CFO Area effectively managed divi- dend distributions, ensuring a balance between meeting shareholder return expectations and maintaining sufficient capital to support the Bank’s growth plans and address any unforeseen economic challenges. Streamlining Processes for Enhanced Performance Throughout 2024, CIB successfully enhanced its operational efficiency through a series of strategic initiatives centered on automation, cost manage- ment, and revenue optimization. By implementing automation across key financial processes, the Bank significantly reduced its dependence on manual tasks, resulting in increased productivity. This transformation has facilitated streamlined data processing and real-time financial analysis, leading to reduced operational expenses and improved accuracy in financial reporting. CIB’s commitment to optimizing operations not only contributes to its financial performance but also aligns with its broader strategy of delivering superior value to stakeholders and clients. 50 • CIB Annual Report • 2024 2024 • CIB Annual Report • 51 Strategic Direction / Our Strategy CIB improved transparency in its financial reporting by providing detailed and accurate disclosures. Commitment to Tax Compliance In line with its commitment to regulatory excel- lence, the Bank’s Taxation team has successfully concluded the tax inspection process up to 2021, making it the first bank in Egypt to fully settle its Corporate Income Tax obligations through the latest inspection date. This achievement underscores the Bank’s dedication to transparency and compliance within Egypt’s regulatory landscape. Additionally, to support Egypt’s ongoing digital transformation efforts, the Bank recently made significant strategic advancements in its collaboration with the Egyptian Tax Authority (ETA) and the Ministry of Finance. This partnership has culminated in the successful implementation of an automated tax inspection process through the E-Tax portal (SAP), making CIB the first in the banking sector to complete this process electronically. New Initiatives for Stronger Supplier Relationships CIB significantly enhanced its Supplier Relationship Management (SRM) process through the imple- mentation of several strategic initiatives. The Bank established clear KPIs to effectively measure and improve supplier performance, complemented by regular review sessions aimed at identifying market insights and growth opportunities. Furthermore, CIB prioritized ethical and sustainable sourcing practices, encouraging suppliers to adhere to strin- gent environmental and social standards. From a risk management perspective, the Bank conducted comprehensive assessments for its suppliers, focusing on factors such as quality, financial stability, and compliance. This proactive approach ensures a resilient supply chain capable of adapting to evolving market conditions while maintaining high operational standards. Strategic Workforce Management CIB enhanced its strategic workforce planning from a financial perspective by aligning its workforce investments with broader financial goals, focusing on cost-efficiency and optimizing headcount alloca- tion to support sustainable growth. By continuously investing in training and development for high- impact positions, the Bank equipped its workforce to effectively manage complex financial controls and compliance requirements. Transparent Reporting CIB improved transparency in its financial reporting by providing detailed and accurate disclosures that effectively illustrate the Bank’s cost structure, trends, and the impact of cost management initiatives. This allows stakeholders to gain valuable insights into the Bank’s cost control efforts and their contributions to overall financial performance and value proposition. Additionally, CIB expanded its Environmental, Social, and Governance (ESG) reporting to align with international standards, demonstrating trans- parency regarding sustainability-related financial impacts. This initiative is part of CIB’s broader strategy to enhance its global reputation and meet investor expectations concerning ESG criteria. 52 • CIB Annual Report • 2024 2024 • CIB Annual Report • 53 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 Organizational Development and Sustainability • Offering need-based, bundled value propositions, such as digital solutions through data analytics • Quality of service initiatives to enhance customer experience • Performance-driven culture • Social and environmental management system • Human capital development Financial Performance Operational Efficiency • Asset quality • Profitability • Loan growth • Centralization of operational processes with focus on automation through STP • Business continuity, cybersecurity, and resilience management Resources (Input) Value Created (Outcome) Financial Capital Strong financial capital is always reinvested in the Bank’s activities. • EGP 55.2 billion in consolidated net income • EGP 152.63 billion net worth • EGP 1.2 trillion total assets • EGP 968 billion total deposits • EGP 244.17 billion average market capitalization • 49.5% ROAE • 3.30% NPLs • 13.5% 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 Human Capital • Highly skilled staff capable of sustaining CIB’s path of success and maintaining the Bank’s leading position within the market Human Capital CIB’s in-depth expertise across different industries is mainly rooted in its skilled, specialized, and dedicated employees. • 8,290 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). • Featured in a LinkedIn Learning Case Study as the first Egyptian bank to demonstrate how it successfully built a solid digital foundation, highlighting the Bank’s impactful contributions to staff and youth development 54 • CIB Annual Report • 2024 2024 • CIB Annual Report • 55 Strategic Direction / Value Creation Model Resources (Input) Value Created (Outcome) Resources (Input) Value Created (Outcome) Service Excellence and Brand Recognition CIB has long-standing relationships with clients that are built on the concepts of trust, customer centricity, and rights. The Bank’s core values enable it to preserve and strengthen its brand positioning in the financial services market in Egypt as the largest private bank, the best bank for corporate and retail services, and a leader in digital transformation NPS: • Wealth – 37 • Plus – 44 • Prime – 33 • Corporate – 46 • Business Banking – 48 CSAT: • Smart Wallet – 8 • Mobile Banking – 9 • Internet Banking – 9 • ATMs – 8.6 Service Excellence and Brand Recognition • Since 2014, CIB has been monitoring its service performance through a service index, ensuring sustained high customer satisfaction levels as part of its over- arching strategy • In 2022, CIB topped Forbes’ “Top 50 Listed Companies in Egypt” Responsible Capital Integrating environmental, social, and governance aspects into the Bank’s policies, operations, culture, products, and services to achieve sustainable development and act as an advocate of responsible banking. • Issued Egypt’s first corporate green bond • First bank in Egypt to support the task force for Climate Related Financial Disclosures (TCFD) • 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 of the UNEP-FI Principles for Responsible Banking • Founding member of the Net-Zero Banking Alliance • Constituent of the FTSE4 Good Index • Included in the 2022 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) • 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 cyber security capabilities to provide a seamless customer experi- ence in a safe environment Innovation and Technology Innovation is chiseled into 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. • Largest ATM network among private banks, with 1,388 ATMs • Mobile banking increased by 59% year- on-year, with total transactions reaching EGP 552bn—marking a substantial rise • In 2024, the average monthly value of digital bookings exceeded EGP 2.3 billion, driving the total CDs/TDs booking volume to 75,000 transactions—a 94% year-on-year increase—and the total value to EGP 28 billion, marking a 167% year-on-year rise • Maintained its leading position, ranking 1st in the Egyptian market in govern- mental e-payment transactions over the CPS platform, with a 39 % market share, as a result of the implementation of aggressive business focus groups for selling CPS products 56 • CIB Annual Report • 2024 2024 • CIB Annual Report • 57 Strategic Direction Chair of the Board’s Note Our ability to thrive even in challenging situations owes to our strategic vision, to the talent of our management team and people, and to the strong governance framework overseen by the Board of Directors. Dear Shareholders, It is an honor to address you in not just my first year as Chair of CIB’s Board of Directors, but on the occa- sion of our 50th anniversary. Five decades into this journey, CIB remains the leading private-sector bank in the nation, helping build a world-class banking industry in Egypt, giving individuals and businesses alike the tools they need to take charge of their finan- cial futures, and creating outstanding value for our shareholders. It is both a privilege and a responsibility to lead the Board of this distinguished institution. The year just-ended presented economic and geopolitical challenges that have tested financial institutions globally. Egypt was no exception, as our manage- ment team and staff worked to deliver strong results despite a challenging operating environment marked by high inflation and the launch of a structural reform program backed by the International Monetary Fund. We are encouraged to see positive market activity and growing confidence among our corporate clients, ranging from major Egyptian companies to multinational businesses. Our ability to thrive even in challenging situations owes to our strategic vision, to the talent of our management team and people, and to the strong governance framework overseen by the Board of Directors. Our financial stability, prudent risk manage- ment, and forward-looking approach see us entering 2025 ready to continue delivering long-term growth. Governance has long been one of CIB’s defining strengths. Our diverse Board of Directors, which brings together a wide array of expertise and back- grounds, has upheld a disciplined and transparent governance model that aligns with international stan- dards, ensuring we enjoy the continued trust of our customers, shareholders, and stakeholders at large. CIB is a bank founded on strength—a bank that built legacy—but we recognize that staying ahead in today’s fast-changing world requires agility and transformation. As we celebrate our 50th year, we are embracing change in a way that aligns with our long-term vision. As part of the five-year strategy on which the management team is now working, the Bank will focus on harnessing technology to enhance customer experience, expanding digital banking solutions, and making better use of data in all of our decision- making processes. Innovation should not be an isolated endeavor, but an integral part of our DNA—woven into our products, services, and operations—as we explore new avenues for expansion. As we do so, we will continue to view other actors such as fintech players as natural partners; it is in everyone’s interest that we continue growing Egypt’s market for banking and financial services. That said, sustainability will remain a key factor in everything we do. CIB has been a pioneer in sustainable finance, governance, and good business practices. Together with management, the Board believes that financial inclusion, green finance, banking small and medium-sized businesses, and bringing more people into the financial system aren’t just good for our bottom line, but good for the nation. As we write the next chapter of CIB’s story, we do so with a clear vision: to remain not just The Bank to Trust, but also Egypt’s most innovative financial institution. This means being bold in our strategy, crisp in execution, and unwavering in our commitment to excellence. Our focus is—and will remain—centered around growth: in businesses, profitability, customer satisfaction, employee engagement, and shareholders’ return. On a final note, I would like to express how proud I am, from both a professional and personal perspective, to be part of this outstanding institution, and report to you on the Bank’s progress during such a remarkable year in the life of CIB—its 50th anniversary. I am also confident that the exceptional management team, employees, and Board of Directors will deliver great things in the 50 years to come. Neveen Sabbour, Non-Executive Chair Commercial International Bank (CIB) 58 • CIB Annual Report • 2024 2024 • CIB Annual Report • 59 Strategic Direction A Note From Our CEO CIB’s success has always been driven by the ability of its leadership team and talented staff to anticipate change rather than react to it. 72% y-o-y increase in standalone revenue Strategy must not be theoretical, but deeply practical and actionable. Dear Shareholders, For the past 50 years, CIB has set the standard for excellence, innovation, and financial strength in Egypt’s banking sector. Thousands of talented Egyptians have helped make this great institution what it is today. While I am honored to be entrusted to lead CIB once again, my focus is not on past achievements but on shaping the future and charting the next 50 years of our story. In the past half century, CIB has grown from an emerging player into the nation’s leading private- sector bank. But standing still is not an option; banking is evolving on multiple fronts, and we must evolve with it. My return to the Bank comes at a pivotal moment. This is not business as usual, but a time of transfor- mation that requires us to rethink how we operate, how we serve our customers, and how we ensure that CIB remains a leader for the next 50 years. CIB’s success has always been driven by the ability of its leadership team and talented staff to anticipate change rather than react to it. The global banking landscape is shifting rapidly, and the trends shaping financial services internationally will inevitably shape our current and future markets. What sets CIB apart is our ability to recognize these trends early and prepare for them proactively. As such, we have begun work on an ambitious five-year strategy that reflects the rapid pace of technological change, macroeconomic shifts, and evolving geopolitical risks. Management has embraced a dynamic, forward-thinking approach to ensure your bank remains ahead of the curve. Our new strategy is being crafted by teams of talented CIBians, consisting of both younger staff and middle management, rather than relying solely on a top- down approach. This bottom-up approach will ensure that our strategy is informed by those closest to our customers and operations. Strategy must not be theoretical, but deeply practical and actionable. Once the strategy is finalized and well charted to guide our way forward, it will include at least five key pillars: 1. Future-proofing business processes: Ensuring our operating model is agile, technology-driven, and adaptable to changes in customer expectations and regulatory landscapes. We will, in parallel, harness developments in AI to enhance risk management, optimize operations, and create smarter, more efficient customer journeys. 2. Revolutionizing customer experience: Embedding digital transformation at every level to provide seam- less, intuitive, and personalized banking services with straight-through processing at all levels. 3. Targeted growth beyond Egypt: Identifying strategic new markets where our expertise can create signifi- cant value for shareholders and economies alike. 4. Digital banking: Launching a digital banking franchise at the right moment, attracting the next generation of retail customers, reducing pressure on our branch network, and lowering our cost of funds. 5. Ensuring sustainability and resilience: Preparing for an increasingly complex global financial envi- ronment by maintaining financial strength, agility, and a proactive risk management approach. Waiting until the last minute to adapt is not an option. Your bank must transform its operations today to be positioned for success in five years. As it has been for decades, our next chapter will be about leading, not following—ensuring that by 2030, CIB is recognized not just as Egypt’s leading private- sector bank, but as a forward-thinking financial 60 • CIB Annual Report • 2024 2024 • CIB Annual Report • 61 Strategic Direction / A Note From Our CEO In the past half century, CIB has grown from an emerging player into the nation’s leading private-sector bank. institution operating at international standards across multiple markets. Today, the vast majority of our revenues are generated in Egypt. We have taken our first step into interna- tional markets with our expansion into Kenya, and our approach going forward will be disciplined and focused. Future growth will be carefully aligned with our primary objectives, ensuring that all new initiatives are integrated into our established framework. As we evaluate new markets, we remain committed to disciplined growth at home and abroad. From corporate banking to our retail portfolio, main- taining focus has been key to our ability to deliver 50 years of outstanding results. We believe in focusing on one thing and doing it better than anyone else— whether that’s banking or philanthropy, where our passion for children’s health has seen us impact the lives of over 7 million children since the inception of the CIB Foundation. Our growth will be impacted by national, regional, and global dynamics. Here at home, Egypt’s economic outlook is deeply intertwined with the trajectory of interest rates. With inflationary pressures showing signs of easing, it is clear that interest rates will start to come down this year, helping create demand for borrowing to support capital expenditure as compa- nies look to invest in growth. Lower borrowing costs will be essential to supporting businesses and consumers alike, ensuring that the private sector remains resilient in a dynamic environment. Moreover, ongoing structural reforms will play a crucial role in enhancing financial stability and attracting foreign direct investment. Continued progress on fiscal consolidation, exchange rate flex- ibility, and industrial development will create an environment that makes growth sustainable. CIB remains committed to supporting Egypt’s businesses and people as they navigate these shifts. Globally, 2025 presents a landscape of both opportuni- ties and risks. We remain mindful of how geopolitical changes and shifts in trade policy can present both challenges and opportunities. While protectionist measures in advanced economies may result in headwinds, they may also create opportunities for regional partnerships and localized production. As we celebrate 50 years of market leadership, we are not simply looking back—we are looking forward. The transformation underway at CIB is about securing our future, ensuring that we remain a leader not just in Egypt, but on the regional and global stage. Our vision is clear, our strategy is in motion, and our commitment to excellence is unwavering. With the support of our valued employees, the next 50 years start now. Together, we will shape the future of your bank. Hisham Ezz Al-Arab CEO & Executive Board Member 62 • CIB Annual Report • 2024 2024 • CIB Annual Report • 63 Strategic Direction Board of Directors Report Dear Stakeholders, Following several challenging years, Egypt’s economy exhibited signs of gradual stabilization in 2024, as its reform agenda has fostered a more stable economic environment, laying the foundation for resilience and growth. This milestone filled year for CIB coincided with a significant juncture for Egypt’s economy, which has undergone significant developments shaped by global and regional challenges and bolstered by domestic structural reforms. These reforms have aimed at restoring financial stability and promoting sustainable growth, leaving the economy in a much stronger position than in previous years. With such a promising economic path, CIB remains steadfast in its ability to navigate through local, regional, and global headwinds. As we proudly celebrate 50 years of CIB in 2025, we reflect on the core pillars that have defined our journey thus far: resilience, transformation, and legacy. These values have guided our steadfast commitment to navigating the local, regional, and global headwinds while proactively seizing oppor- tunities for growth and excellence. Our legacy of innovation and our focus on long-term sustainability underscore our determination to remain a corner- stone of Egypt’s financial sector. CIB’s Board of Directors is pleased to present to the Bank’s stakeholders the following report, outlining the key developments in the macroeconomic envi- ronment and their impact on the Bank’s operations as we continue to uphold our vision for the future. Macroeconomic Environment During the year, Egypt faced significant macro- economic challenges driven by global inflationary pressures and regional geo-political instability. The Central Bank of Egypt (CBE) and the government implemented comprehensive economic reforms, supported by multilateral and bilateral partners, to help stabilize the economy. Inflation levels carried through in 2024 after peaking at 38% in September 2023. In January 2024, inflation recorded a high of 33.9%, prompting the CBE to hike interest rates twice during the year. In February, the mid-corridor rate was raised by 200 basis points to 21.75%, followed by another 600-basis point hike in a special Monetary Policy Committee (MPC) meeting in March, bringing the mid-corridor rate to 27.75%. In an attempt to absorb liquidity in the market, two public sector banks issued 1-year Certificates of Deposit (CDs), offering 27% annual return and 23.5% monthly return. Additionally, both banks introduced 3-years CDs with initial interest rates of up to 30%, Taking a step in shifting to flexible exchange rate regime, in March the CBE devalued the Egyptian Pound (EGP) by around 60%, dropping from around EGP 31 to over EGP 50 against the U.S. Dollar (USD). This aligned the official exchange rate with that of the parallel market and allowed the EGP to be deter- mined by true market forces. 2024 saw the largest Foreign Direct Investment (FDI) deal in Egypt’s history; a USD 35 billion development project in the Ras El Hikma area located on the North Coast. The agreement came in partnership with the UAE through ADQ and is expected to attract an additional USD 150 billion in FDIs over the project’s lifetime. As a result of these measures, the International Monetary Fund (IMF) increased its Extended Fund Facility (EFF) for Egypt to USD 8 billion from the initial USD 3 billion agreed on in 2022, enabling the Government to address the import backlog and ease restrictions on non-essential goods. Prioritizing essential goods, the backlog has been significantly reduced during the first half of 2024, enabling the CBE to further ease import restriction on non- essential goods in August. Key foreign currency resources also strengthened; remittances rose 45.3% y-o-y to USD 23.7 billion during the first ten months of 2024. Meanwhile, the CBE rolled out a new feature on its payment application ‘InstaPay’ allowing for international remittances, to facilitate FCY inflows from Egyptians abroad. Tourism revenues reached USD 14 billion in the first half of the year, and a record 17.5 million tourists visited Egypt in 2024, aided by the partial opening of the Grand Egyptian Museum, slated to be the largest archaeological museum devoted to a single civilization. However, the Suez Canal faced a challenging year, with revenues contracting by 60% to USD 4 billion due to geopolitical tensions in the Red Sea. Net International Reserves grew by USD 157 million, recording an all-time high of USD 47.1 billion by year- end, reflecting the effectiveness of these reforms. The government also took significant steps to address its fiscal challenges and boost economic growth. Public investment was capped at EGP 1 trillion, a move aimed at managing the budget deficit while focusing on strategic priorities. Simultaneously, Egypt advanced its privatization plan, formally announced in 2022, to reduce state involvement in the economy and attract private sector investment. A key example of this is the privatization of United Bank, with a 30% stake offered in an IPO as part of broader asset sales. The government published a list of companies earmarked for potential privatization in 2025, including major players in banking, energy, and real estate, as part of its plan to raise USD 1.5 billion through asset divestment. These efforts bolstered confidence in Egypt’s economic direction, earning sovereign upgrades from Fitch, S&P, and Moody’s. In January, Moody’s revised Egypt’s outlook to ‘negative’ while main- taining its ‘Caa1’ credit rating. However, by March, Moody’s shifted Egypt’s outlook to ‘positive.’ In October, S&P Global affirmed Egypt’s rating at ‘B-/B’ for long and short-term foreign and local currency, maintaining a positive outlook. Then, in November, Fitch Ratings upgraded Egypt’s Long- Term Foreign Currency Issuer Default Rating (IDR) from ‘B-’ to ‘B’ with a stable outlook. Despite inflationary pressures and regional uncer- tainties, the economy showed moderate growth, with key sectors recovering. GDP growth reached As we proudly celebrate 50 years of CIB in 2025, we reflect on the core pillars that have defined our journey thus far: resilience, transformation, and legacy. 2.4% in 4Q24, down from 3.8% in FY23. However, it is projected to rebound to 3.6% in FY25 and 4.1% in FY26, according to estimates from the IMF. This outlook reflects ongoing structural reforms, a focus on private-sector-led growth, and improved monetary and fiscal policies aimed at fostering sustainable economic recovery. Strategic Pillars As global market dynamics continue to evolve and fast-paced emerging trends reshape the financial landscape, the Bank’s strategy is designed to make CIB adaptive, resilient, and forward-thinking. Our three main goals remain customer satisfaction, operational excellence, and long-term value to our shareholders. Being at the forefront of banking innovation will help us better meet our clients’ demands and solidify our position as a reliable financial partner. Core Business The primary objective of CIB’s strategy is to strengthen its core business by optimizing opera- tional efficiency and broadening its local footprint to cater to corporate, SMEs, and retail clients; all while exploring avenues for more financial inclusion. The Bank develops customized value propositions that cater to the needs of each individual customer by utilizing data analytics, digital channels, and behavioral segmentation. To unlock future growth opportunities, CIB views 64 • CIB Annual Report • 2024 2024 • CIB Annual Report • 65 Strategic Direction / Board of Directors Report investments in cutting-edge products and digital solutions to improve customer experiences and lower transaction costs as imperative. Digital Banking and Financial Inclusion CIB acknowledges the growing importance of digital technology in shaping the future of banking. The Bank’s digital banking platform was designed to provide customers with the tools and services needed to manage their finances effectively and efficiently. Recent developments include the launch of the new CIB Mobile Banking App, which introduces a fresh look and enhanced user experi- ence. The application offers personalized features tailored to the specific needs of different customer segments, such as Prime, Plus, Wealth, and Private. The new user interface provides a more intuitive and user-friendly experience, while retaining core functionalities and adding new services, such as bill payments and tokenization, to further enhance customer convenience and security. Online banking channels have become the primary channels for CIB’s customers, with a significant increase in usage and penetration rates. As of December 2024, the online banking customer base grew by 25% y-o-y, achieving the highest activity rate recorded to date. Mobile banking transactions saw an even greater surge, increasing by 59% y-o-y, with total transactions reaching EGP 552 billion marking a substantial rise. Additionally, the migration to online banking channels has a positive impact, with 99% for credit card settlements, and 98% for internal transfers, through online banking platforms. This shift also contributed to notable cost synergies, with savings increasing by 26% y-o-y, totaling EGP 4.23 billion by December 2024. Throughout the year, the average monthly value of digital bookings exceeded EGP 2.3 billion, driving the total CDs/TDs booking volume to 75,000 transactions — a 94% y-o-y increase — and the total value to EGP 28 billion, marking a 167% y-o-y rise. Furthermore, requests for additional accounts opened via online banking reached 51,000, a 64% y-o-y increase, accounting for 61% of all new accounts opened in 2024. Additionally, loan and credit card submissions through online channels reached 28,000 and 42,000, respectively, generating a significant number of leads for further business growth. CIB aims to increase access to financial services, unlock economic opportunities, and drive sustain- able growth by promoting financial inclusion. In 2024, the Financial Inclusion division continued to address the needs of underserved segments by facilitating access to financial services and improving their financial well-being. Our primary segments encompass blue collar workers, women, youth, and individuals with disabilities. To further enhance services for individuals with disabilities, the Financial Inclusion team organized a consultation session at the Egyptian Youth Council. The session provided an opportunity to gather direct feedback from people with various disabilities, helping the Bank better understand their financial needs and goals and allowing for the design of more tailored financial solutions. Following the successful upgrade of the CIB Smart Wallet in 2022, the digital team devoted its efforts towards ensuring a high level of service availability in 2024. National switch reports showed high success rates and consistent service availability. The Smart Wallet expanded its acquisition chan- nels by incorporating new agent stores across the nation and introducing additional services such as bill payments and donations, resulting in a decrease in complaints year-on-year. Several analytical reports were developed to improve the efficiency and productivity of the acquisition and distribution teams. A roadmap was also established to continue enhancing CIB Mobile Wallet services throughout 2024, ensuring that the platform remains aligned with customer needs and market conditions. As Egypt strives for economic excellence, SMEs stand at the forefront, driving progress, employment, and national competitiveness. Over the past decade, CIB’s strategy for SMEs has led to the successful onboarding and activation of a wide base of non- borrowing customers. This customer base is central to the SME lending strategy, facilitating cross- selling of assets through various lending programs, leveraging a strong referral mechanism. There has also been increased 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 has expanded its asset portfolio with a remarkable growth rate, 66 • CIB Annual Report • 2024 2024 • CIB Annual Report • 67 Strategic Direction / Board of Directors Report demonstrating an impressive compound annual growth rate of 59% in the past 5 years and reaching EGP 14.8 billion ending balance in 2024. sectors, including food and beverage, textiles, phar- maceuticals, and tourism. These audits will continue to expand in the coming years. Geographical Expansion Following the acquisition of 100% of CIB Kenya (CIBKE), the strategy will be to focus on scaling up operations and driving a turnaround, with the aim of establishing a regional hub in East Africa. This will enable CIB to further expand across the region in the future. In 2024, CIBKE launched and executed a comprehensive multi- level transformation plan, laying the groundwork for a sustainable East African hub for the long term. The Bank will continue enhancing its role as a regional business hub, providing innovative solutions for corpo- rates, SMEs, and households while facilitating trade opportunities between Egypt and Kenya. Ultimately, CIBKE aims to promote regional integration and unlock synergies across Africa and the GCC. Sustainable Banking Committed to leading the shift to a sustainable future, CIB has emerged as a regional leader and trendsetter in sustainable finance since 2013. The Bank has led the way in developing cutting-edge programs and services that meet societal and environmental needs while promoting sustainable economic growth. The CIB Sustainable Finance Strategy and Policy, Egypt’s National Climate Change Strategy 2050, and the UN Sustainable Development Goals (SDGs), are the driving forces behind these initiatives. In efforts to support green projects and promote environmental sustainability, CIB secured a USD 50 million Green Economy Financing Facility (GEFF II), which includes USD 7.5 million in co-financing from the Green Climate Fund (GCF) in collabora- tion with the European Bank for Reconstruction and Development (EBRD). Additionally, CIB signed the EBRD Women in Business loan agreement worth USD 10 million, dedicated to empowering women-led small and medium enterprises (SMEs) and fostering women’s entrepreneurship in Egypt. This year also marked the introduction of special- ized sustainable finance products tailored to meet the unique needs of SMEs in the textiles, food and beverage, and plastics sectors. These products were designed to address resource efficiency and renew- able energy challenges within these industries. Moreover, the team successfully conducted energy walkthrough audits for 20 clients across various CIB published its second Environmental, Social, Governance, Data and Digitization (ESGDD) Report for 2023, titled “Driving Value Creation.” The report consolidates all of CIB’s sustainability reporting requirements (including GRI, SASB, UNGC, PRB, TCFD, NZBA, EP and CDP as disclosure platforms) and reflects the Bank’s continuous commitment to evolving its disclosure practices. Human Development As CIB continues to attain substantial growth, the Bank is more adamant on developing its Human Resources (HR) function to better support its people, who are the true cornerstone of CIB’s success. HR will keep up its regular planning to meet long-term strategic requirements while abiding by the Bank’s guiding principles and core values. The department’s principal goals are to instill trust in CIB’s operations, attract top talent, and cultivate an environment that is both productive and stimulating. CIB is committed to creating an environment that helps people realize their full potential and achieve financial success. We gladly accept and incorporate ESG principles into our work, and are dedicated to promoting diversity, inclusion, and equality. These guidelines make it easier to draw in and keep a diverse workforce, fostering an inclusive environ- ment where each person is respected. Through several initiatives, we are currently focused on gender equity and employees with disabilities. CIB’s strictly gender-neutral practices are supported by its dedication to an equitable and responsible compensation plan that recognizes and rewards exceptional performance, highlighting its commit- ment to eliminating bias in all its forms. In 2024, the Bank maintained its competitive compen- sation program by making employee performance reviews a top priority in its remuneration structure. HR implemented a framework for salary increases that is thorough and in line with CIB’s strategic goals. Moreover, the Bank carefully compares its benefits and compensation packages to those of its regional and local rivals. CIB aims to increase access to financial services, unlock economic opportunities, and drive sustainable growth by promoting financial inclusion. This year, CIB hired 1,965 employees, encouraged the internal mobility of 1,174 staff members, and promoted 1,057 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 2024, the HR team carried out 16 employment initiatives across universities and local employment fairs in Egypt, increasing brand awareness, announcing employment opportunities, and expanding our network among other organizations. 2024 Financial Position CIB Performance FY 2024 saw CIB’s consolidated net income increase by 86% y-o-y to EGP 55.2 billion. Standalone net income reached EGP 55.4 billion, up 93% from 2023. Standalone revenues grew by 72% from the previous year to reach EGP 98.6 billion. Consolidated net interest income hit EGP 91.1 billion during the year, up 72% y-o-y. The Bank was able to maintain its operational efficiency in 2024, with the cost-to-income ratio standing at 14.0% compared to 17.1% in 2023. Return on average equity (ROAE) recorded 49.5% on a consolidated basis (post-profit appropriation) compared to 39.7% in 2023. Consolidated return on average assets (ROAA) stood at 5.44% (post-profit appropriation) in 2024, compared to 4.06% in 2023. As of year-end 2024, CIB booked a net interest margin (NIM) of 9.48%, compared to 7.55% a year earlier. The Bank’s gross loan portfolio stood at EGP 402 billion at 2024 year-end, growing by 51% y-o-y from EGP 267 billion by 2023 year-end. This increase met the Bank’s strategic objectives in maintaining asset quality and enhancing profitability. CIB’s market share of total loans amounted to 4.53% in September 2024. The Bank pursued deposit growth in 2024, adding EGP 295 billion to its base, which grew to a total of EGP 973 billion over the year, an increase of 44% from 2023. CIB’s market share of total deposits reached 6.96% in September 2024. Impairment charges for credit losses for 2024 amounted to EGP 4.52 billion, with loan-loss provision balance reaching an unprecedented EGP 45.6 billion. This was not associated with any asset quality deterioration, as evident by a solid NPLs of the gross loan portfolio of 3.30%, down from 3.59% by 2023 year-end, cushioned by a solid 344% coverage ratio, but rather a result of the Bank’s conservative risk manage- ment 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 24.1% (post-profit appropriation)— well above the minimum regulatory requirement. Appropriation of Income for FY24 The Board of Directors proposed the distribution of total cash dividends of EGP 7.61 billion to share- holders this year, increasing its legal reserve by EGP 2.77 billion to EGP 8.98 billion, and its general reserve by EGP 19.0 billion to EGP 81.4 billion. This reinforces the Bank’s solid financial position, as evidenced by its CAR of 24.1%. 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 EGX30 continued its growth momentum in 2024, backed by the solid performance of its constituents. The index opened the year at 24,934 points and closed at 29,741 points. It achieved a high of 34,501.898, and a low of 24,192.4. This is summarized in a year-on-year performance of a 19.47% increase, or 4,807 points. On the other hand, COMI started the year at an opening price of EGP 72.65 and closed at EGP 78.5, with a VWAP of EGP 80.5. Its average daily volume reached 4.4 million shares, and the average market capitalization recorded EGP 244.17 billion. Moreover, the average price to book ratio recorded 2.2, with a peak of 3.22 and a low of 1.68. In April 2024, a cash dividend was distributed amounting to EGP 0.55/ share. CIB is widely covered by leading research houses locally, regionally, and internationally; 12 institutions issued research reports on the Bank during 2024, six of which were local. 68 • CIB Annual Report • 2024 2024 • CIB Annual Report • 69 Strategic Direction / Board of Directors Report 2024 saw CIB enhance its share trade business share by providing clients with tailored solutions extensively to navigate the challenging market conditions. Both the EGX and COMI’s performance was highly impacted by overall investor sentiment in light of Egypt’s persisting economic conditions. Prior to the devaluation, concerns revolved around the FCY situ- ation, which in turn impacted the backlog and raised inflation. Geopolitical tensions and unrest also raised concerns for Egypt and the Suez Canal revenues. The devaluation shifted investor sentiment to cautious optimism, after the USD 35 billion Ras El-Hikma deal with the UAE, easing some pressures. High sovereign yields gained traction from international institutions, investing again in Egypt after the devaluation. Investor Relations Activities in 2024 With the primary role of delivering CIB’s story to the investment community at large, the Investor Relations (IR) team maintains an open, two-way communication channel between investors, share- holders, and the Bank’s Executive Management. Throughout 2024, the team attended eight confer- ences, roadshows, and forums, and accommodated more than 100 meetings, including more than 70 in-person meetings. The team met with more than 190 companies, incorporating a wide range of inter- national, regional, and local institutions. 2024 Business Activities Institutional Banking Leveraging the extensive reach and market intelli- gence of CIB’s Corporate Banking and GCR Groups, portfolio growth continued to thrive in FY24, despite a challenging macroeconomic environment. Both Groups delivered exceptional results, contributing to a significant expansion in the loan portfolio, which grew from EGP 197.7 billion in FY23 to 290.1 billion in FY24. This was driven by an expanded customer base, an enhanced share of wallet with existing clients, and a remarkable increase in gross contributions post-tax, leading to 46.7% and 37.3% increases in loan portfolio and gross contribution after tax, respec- tively, for FY24. The Group continued to support key strategic industries, including pharmaceuticals, with over EGP 2 billion in facilities to local pharma- ceutical and medical appliance companies, helping reduce Egypt’s import reliance. In real estate, CIB has significantly expanded the portfolio and played a crucial role in financing major developments through leading and participating in new financing facilities exceeding EGP 10bn as of December 2024 with top tier developers. The Bank participated in one of the largest syndicated project finance deals for a mega project in Eastern Cairo on a 346-acre land plot, in addition to another syndication partici- pation for a renowned 482-acre project in Western Cairo to develop and construct mixed use projects. In tourism and hospitality, CIB extended over EGP 4 billion for the development and expansion of five-star hotels, supporting the revival of the sector, which is seeing a notable increase in tourist arrivals, set to reach 15.7 million in 2024, and aligning with Egypt’s goal to attract 30 million tourists annually by 2028. Furthermore, CIB provided up to EGP 2.5 billion in tailored financing to hospitals and diagnostic centers across Greater Cairo and underserved governorates, supporting infrastructure upgrades and investment in advanced medical technologies to improve equi- table access to healthcare. CIB’s Debt Capital Markets (DCM) Securitization and Bonds Desk has firmly established the Bank at the forefront of the Fixed Income Securities market. CIB was awarded the Best Securitization deal in North Africa for its successful closure of the first social sustainability securitization bond issuance in Egypt worth EGP 3.81 billion. Throughout the year, the team further cemented its leading posi- tion in the market, having advised and arranged ten securitization issuances worth EGP 13.5 billion, alongside the mandated deals worth EGP 16 billion. As of December 2024, the Development Finance (DF) team, through managing developmental programs through ADP participating banks network, served 17,872 agri-business beneficiaries, with approved developmental agri-loans worth a total of EGP 919.08 million. The renewable energy sector within agriculture development saw a 113% increase in financing compared to 2023 year. DF also contributed to the green funding under the EPAP Project, financing water treatment projects for a tissue paper factory, reduction of dust emis- sions in workplace for fertilizers factories, as well as sustainable production and resource efficiency projects, with a remarkable 97% increase in total amount of approved EUR loans and a 74% increase in approved EGP loans compared to 2023. Additionally, the Development Financial Institutions (DFI) team, as part of the NBFI, secured USD 60 million of senior funding supporting green and women SME projects from the EBRD, as well as subordinated debts from the IFC and EBRD amounting to USD 150 million and USD 75 million, respectively, to further strengthen CIB’s capital base and serve as a hedging tool against unexpected exchange rate volatility. In 2024, the DFI team also successfully completed two portfolio risk sharing agreements with the EBRD and DFC amounting to USD 50 million and USD 41.6 million, covering 50% and 60%, respectively, of the non-payment risk of a portion of the Business Banking portfolio. The Enterprise and Governmental Relations (EGR) Department delivered exceptional results in 2024, reinforcing its position as a strategic partner for large enterprises and governmental institutions. Through a combination of strategic initiatives, innovative solu- tions, and focused client relationships, EGR achieved significant milestones, including record deposit growth resulting in a significant expansion of the deposit base, contributing to 51% of the Institutional Banking’s total deposits. 2024 also saw CIB enhance its share trade business share by providing clients with tailored solutions extensively to navigate the challenging market conditions. The Bank also witnessed unprecedented digital adoption, enhancing the client experience and bolstering efficiency, as proven from the recorded adoption rate of 69.2%. The Direct Investment Group (DIG) delivered strong results despite the challenging market conditions. The Group secured significant divi- dend income from its portfolio and achieved a successful exit from a pharmaceutical sector investment, generating notable capital gains. In FY24, DIG evaluated 11 investment opportunities across high-potential sectors in Egypt and success- fully secured two strategic investments — one in the healthcare sector and another with a sector- agnostic private equity fund — strengthening its market position. Retail Banking CIB’s Retail Banking division achieved remarkable milestones in 2024, driven by a targeted strategy of customer segmentation and service enhancement. Tailored financial solutions were introduced to meet the diverse needs of customers, and adapted strategies were aligned with each consumer segment thus forming strategic partnerships and enhanced customer engagement initiatives. These efforts resulted in impressive year-on-year increases in gross contributions and digital adoption across all segments. This year, the Bank’s span of control across all consumer segments was enhanced, enabling a more agile response to customer needs and market shifts. Strategic alignment boosted operational efficiency, empowering the teams to deliver a more personalized experience. In 2024, the Consumer Lending team navigated several macroeconomic challenges, including Secured Loans at minimum lending rates and mitigating the impact of rising interest rates on Unsecured Loans, which increased by 800 basis points during the year. Despite these challenges, the Bank succeeded in achieving outstanding growth in the Personal Loans portfolio, reaching EGP 53.7 billion as of December 2024, up 30% y-o-y. Meanwhile, CIB embraced a strategic segmenta- tion approach to better serve the diverse needs of customers, focusing on providing tailored solutions. By offering personalized saving products and services, the Bank aims to cater to the specific requirements of each customer segment, reinforcing a customer- centric philosophy that underpins value proposition. During the year, CIB witnessed a surge in local currency (LCY) household deposits, reflecting increased consumer confidence in the Bank’s services. A strong commitment to customer needs, effective marketing initiatives, and diverse product offerings have proven instrumental in driving LCY household deposit growth this year, recording EGP 318 billion as of December 2024. This marks a 32% increase compared to the EGP 241 billion recorded in 2023. 70 • CIB Annual Report • 2024 2024 • CIB Annual Report • 71 Strategic Direction / Board of Directors Report CIB maintained its dominant position in Egypt’s payment acceptance sector in 2024, attaining a market share of 17% of POS volume. Following the country’s push for financial inclusion, acquiring fees recorded EGP 1.65 billion, with average growth of 27% y-o-y. As a result, acquiring proceeds totaled EGP 120 billion, compared to EGP 82 billion during 2023, a 46% increase. Focusing on optimizing the customer journey, processes have been streamlined to provide a smoother and more engaging experience for clients. Customer feedback highlighted significant improvements in satisfaction, particularly following enhancements to the onboarding process, which expedited new customer transitions. These improve- ments contributed to a notable rise in market share, reinforcing the Bank’s position as a leading player in the retail banking sector. Through continuous innovation and service adaptation, CIB remains committed to delivering exceptional value and fostering long-term customer relationships. 2024 Operational highlights Operations and IT In 2024, the COO area played a pivotal role in advancing the Bank’s strategic agenda by enhancing the customer experience, supporting the business with latest tech- nologies, setting the stability program roadmap with a focus on critical applications, enhancing our security capabilities, and reengineering our processes and workflows. The area’s key efforts focused on driving operational efficiency, supporting transformation initiatives, reducing operational bottlenecks, and improving overall customer satisfaction. This contrib- uted to the Bank’s ongoing growth and the end-to-end customer journey. The Operations Group worked on key activities this year to elevate customer satisfaction and resource optimization, and maintain high service standards, while absorbing business growth. A customer-centric focus has been paramount, ensuring that all service channels meet customer needs efficiently and responsively. Implementing cost synergies through automation and robotic process automation (RPA), the Group enhanced its processes’ efficiency and mini- mized operational strain, allowing the Bank to scale effectively without proportionally increasing costs. Through cost optimization and resource realignment, the team further advanced operational effective- ness, making way for reinvestment into automation initiatives that reduce manual tasks and errors. Key efforts this year also included reducing turnaround time (TAT), as well as average waiting time (AWT) and average handling time (AHT), significantly enhancing customer response times. Real-time data analytics were utilized to assess peak hours in branches and adjust staffing levels accord- ingly, as well as maintaining the set average waiting times across branches vs. the increase in customer base/transactions. This year, the department success- fully reduced branches’ average waiting times by 58% across the network, enhancing service delivery for both retail and corporate customers. Meanwhile, in order to enhance customer experi- ence on the alternative channels, the Operations Group addressed the service factors and maintained high performance across the ATM network. Despite the increase in transaction volumes and 30% rise in dispensed amounts, the ATM Operations and Availability function showed remarkable improve- ment in 2024. The Information Technology (IT) division remains the foundations of supporting the implementation of the Bank’s strategic vision and promoting the business services by efficiently implementing key strategic projects and systems enhancements that have positively reflected on the business services and customer experience. CIB’s Digital Delivery Center rolled out a successful mobile banking solution that utilizes the latest tech- nological components and was built on fully scalable and responsive solutions, projected as a state-of-the- art delivery from a technology and service excellency standpoint. This major milestone was the first in CIB’s digital transformation, positioning the centre to become CIB’s true digital arm. This year also witnessed an increase in the volume of customer communica- tions, informing them of new products and offers and sending alerts for any service downtime and mainte- nance, ensuring a seamless experience. Security and Resilience Management Security and resilience have always been strategic priorities for CIB, aiming to safeguard the Bank’s stakeholders’ interests against a multitude of threats. During 2024, multiple enhancements were intro- duced to fortify and expand CIB’s oversight across various layers. The Bank conducted several indepen- dent assessments to validate its security posture. Furthermore, CIB acquired multiple cutting-edge security tools during 2024 to achieve higher visi- bility and enabled incident response automation and orchestration, enhancing incident manage- ment efficiency and consistency, as well as the quality of cyber threat intelligence and the overall detection and response capabilities. This rein- forces our commitment to excellence in security and resilience, and underscores CIB’s unwavering dedication to the safety and trust of customers and employees, and maintaining the brand positioning as a market leader. Awards and Recognition in 2024 During 2024, CIB received international and regional recognition across different functional areas and business lines. These awards serve as valuable endorsements to CIB’s continued commitment to delivering excellence in all facets of its business, while ensuring the highest standards of governance and accountability to all its stakeholders. Global Finance: • Best FX bank in Egypt • Best Bank for Sustainable Finance in Emerging Markets for Africa 2024 • Best Bank for Sustainable Finance in Egypt 2024 • Best Private Bank in Egypt • Best Bank in Egypt • Best Bank for Collections in Africa • Best Overall Bank for Cash Management • Treasury and Cash Management Award 2024 Euromoney: • Corporate Banking • Best Bank in Egypt 2024 • Digital Solutions • Best Digital Bank in Egypt 2024 • ESG • Best Bank for ESG in Egypt 2024 • Corporate Social Responsibility (CSR) Egypt • SME Banking – Egypt • Highly Regarded Investment Banking • Egypt’s Best FX Bank EMEA Finance: • Best financial institution syndicated loan in North Africa • Best securitization house in Africa • Best telecommunications deal - Etisalat Egypt’s loan facilities for capex programs • Best property deal - Orascom for Real Estate’s EGP6 billion 10-year syndicated loan MEED: • Cash Manager of the Year MENA • MEED Best Digital Bank Egypt Fortune: • Top 10 of Fortune’s 2024 Environmental, Social and Governance (ESG) Environment and Climate Change CIB continues to strengthen its climate risk manage- ment capabilities by prioritizing sectors, portfolios, and counterparties most vulnerable to climate impacts. The Bank employs a qualitative heatmap and risk-scoring approach to assess its exposure to both transition and physical risks. As part of its sectoral decarbonization strategy, CIB published baseline emissions data for power generation and real estate, two of the most challenging sectors to decarbonize, and has set clear emissions reduction targets. By collaborating closely with clients and offering out-of-the-box innovative solutions and services, the Bank aims to facilitate a smooth transi- tion to a low-carbon economy. Society and Development Diversity and Inclusion CIB’s commitment extends beyond financial success; it is dedicated to fostering an environment that supports individuals in reaching their full potential. The Bank proudly integrates and embraces ESG prac- tices into our journey. Our commitment also extends to promoting equality, inclusion, and diversity. CIB is keen to provide equal opportunities and treat all employees with dignity and respect. These principles facilitate the attraction and retention of a diverse workforce, creating an inclusive workplace where every individual feel valued. The Bank is currently particularly focused on gender equity and differently abled employees through a number of initiatives. In 2024, we continued to reinforce our commitment to cultivating and preserving an inclusive workforce by facilitating employment opportunities for differently abled individuals. The Better Together initiative, which commenced in 2020, and the Kader B Ekhtelaf initia- tive, which was introduced in 2022, aim to provide job and development opportunities for differently abled individuals across various branches and departments within CIB. HR successfully continued the hiring process, reaching a total of 160 differently abled candi- dates, out of which 18% were females since the start 72 • CIB Annual Report • 2024 2024 • CIB Annual Report • 73 Strategic Direction / Board of Directors Report of the program. Moreover, to ensure these employees receive the necessary support for their success, managers who have differently abled team members will continue to be enrolled in training programs to equip them with the knowledge and skills needed to effectively support the differently abled population. Women’s development tracks in the Bank play a vital role in fostering diversity, equity, and inclu- sion while unlocking the full potential of female employees. These programs empower women by providing targeted development programs and leadership opportunities, helping to address gender disparities and build a pipeline of future leaders. Accordingly, two developmental initiatives took place in 2024, starting with the launch of the “Retail Women Accelerator” program, which enrolled 45 entry and mid-level female employees from the Retail Banking area. The “Women@OPS” program was also launched to enhance the skillsets of females in the operations unit. The program was completed by 50 female employees and was complemented with a set of developmental tracks for women across various managerial levels, covering more than 180 female employees trained in 2024. CIB launched the fourth round of the Women in Tech Program that was introduced in 2019. This year’s program took place in partnership with the German University in Cairo (GUC), Banha University, and Ain Shams University, 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 females to work in technology divisions, such as IT and Security and Resilience Management. CIB was the main sponsor of the inaugural collaborative event, Shaghalni-Momken for Her, a collaboration aimed at empowering women. The event provided career opportunities, mentor- ship, and promoted inclusive workplace cultures, inspiring over 3,000 attendees through the stories of successful women from various fields. CIB’s HR team plans to continue supporting similar initiatives that emphasize diversity and inclusion, reinforcing the Bank’s position as an employer of choice. Corporate Social Responsibility Corporate social responsibility (CSR) is at the heart of CIB’s core values. This year, we imple- mented various CSR projects and supported initiatives carried out by other organizations. We diversified our community development activities by expanding our scope to include sports, fine art, culture, and social welfare. CBE Initiatives CIB continued its role of being part of the Governmental Initiatives Women International Month, Youth International Day, Financial Inclusion Day Initiative, Farmer Day, Arab Financial Inclusion Day Initiative and Saving Day by participating with Smart Wallet program in different activities in different governor- ates to support the financial inclusion in Egypt. The Magdi Yacoub Heart Foundation: CIB continued funding the Adult Outpatient Department at Magdi Yacoub Global Heart Centre as part of the partnership started in June 2021 to improve access to care and meet the demand for cardiac care within Egypt. Shaghalny Program: Shaghalny is a platform dedicated to serve blue and grey-collar workers, seamlessly integrating offline and online channels with solutions cater to medium and large companies primarily seeking blue and grey- collar employees, such as technicians, production workers, sales representatives, call center agents, and drivers, among others. April is the Autism Acceptance Month: The campaign annually invites other organizations from several governorates of Egypt, who work with children with autism and their families, to celebrate this month. Over 65 NGOs usually participate in our activities, many from governorates outside Cairo. During 2025, Hybrid Conference to celebrate the World Autism Awareness Day (WAAD) held at the Ministry of Social Solidarity on 18 April, 2024. CIB Foundation The CIB Foundation is committed to supporting underprivileged children by extending quality health- care to those unable to access it. Its efforts include donations and monitoring projects’ impact. In addi- tion 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. 74 • CIB Annual Report • 2024 2024 • CIB Annual Report • 75 Strategic Direction / Board of Directors Report New Projects 2024 Mabara Masr Al Kadima Hospital Building on the CIB Foundation’s essential role in supporting children with critical heart diseases, the Board approved providing Mabara Masr Al Kadima Hospital with EGP 15 million to fund medical equip- ment needed for the hospital’s Pediatric Cardiology Unit. The project aims to enable the hospital to perform the necessary interventions for those with suspected cardiac anomalies and rheumatic heart diseases through cardiac catheterization. The project is expected to serve 2,150 children. Outfitting a Pediatric Bone Marrow Transplant Unit - Ain Shams University Children’s Hospital Building on the successful collaboration between the CIB Foundation and Ain Shams University Children’s Hospital, the Board approved EGP 54 million to outfit a Pediatric Bone Marrow Transplant Unit. The unit consists of three operating rooms with the capsule system. The project will contribute to treating children suffering from Leukemia, Malignancy, Immunodeficiency, and Metabolic diseases. It aims to serve 35 children annually. Strong Heart…Stronger Future - The Aswan Heart Center (AHC) Through its longstanding partnership with Magdi Yacoub Foundation, the Board allocated EGP 25 million to fund 125 open heart surgeries and purchase 125 catheterization lab consumables at the Aswan Heart Center. A center of excellence, the Aswan Heart Center performs c.4,000 surgical and cardiac procedures annually on 2,400 children, according to the data provided by the center. L’MISR Initiative In line with the Presidential Hayah Karima initia- tive, the CIB Foundation launched its first national initiative, L’MISR, after a decade of successful contri- bution to children’s health. The initiative focuses on supporting the physical and mental health of children to help them become productive members of society. It serves to localize sustainable development goals across an extensive base of beneficiaries. Sonaa El Kheir Foundation The Board allocated EGP 30 million to fund the third round of the project with Sonaa El Kheir Foundation, building on the previous successful collaboration. The allocated fund will enable medical convoys to reach poverty-stricken areas in the governorates of Aswan, Kafr El Sheikh, Fayoum, Marsa Matrouh, Gharbiya, and New Valley, covering 176 elementary and middle schools which will serve 166,000 children. These medical convoys will provide comprehensive medical services in many fields such as Ophthalmology, General Pediatrics, Anemia and Stunting, and Diabetes, among others. Furthermore, the convoys will provide the necessary medications, tests, and surgeries if needed. Bright Start CIB Foundation allocated EGP 2 million in collabo- ration with Qabas Mn Noor Foundation to provide healthcare needs in Baris, New Valley Governorate, one of Egypt’s most underprivileged areas, through funding 24 medical convoys to this remote region. The convoys will focus on various pediatric health specialties, including Internal Medicine, General Pediatrics, Ophthalmology, Dermatology, and others, to assess and treat 1,173 children. Healthy Children • The Board of Trustees approved Raie Masr Foundation for Development’s proposal for EGP 15.8 million of funding for an additional 900 medical convoys’ operating costs related to the second round of “Healthy Children” project. Each convoy has a team of qualified doctors providing examinations and treatments to children in schools and health centers. The project is serving 150,000 children. • The Board approved a total amount of EGP 40.7 million to fund the third round of Healthy Children project, covering the operating costs of 2,200 convoys which will take place across Egypt’s governorates. It will also fund the purchase of three vehicles for medical convoys. The project aims to serve 374,000 children. Their Care…Our Responsibility As part of CIB Foundation’s longstanding partnership with Yahiya Arafa Children’s Charity Foundation, the Board allocated EGP 11 million to fund the annual operating costs of Ain Shams University Hospital’s three pediatric units. This covers the pediatric congenital heart defect unit, pediatric heart surgical unit, and the women and obstetrics hospital’s neonatal unit, serving 10,000 children annually. Alexandria University - Faculty of Medicine (Ophthalmology Department) Building on the successful collaboration between CIB Foundation and Alexandria University Hospitals, the Board allocated EGP 41.11 million (equivalent to EUR 767,000) to purchase a Surgical Microscope and a Ret Cam Envision for the pedi- atric ophthalmology unit at Alexandria University. The Surgical Microscope will enhance the preci- sion of pediatric eye surgeries, including cataract, glaucoma, and squint surgeries, and reduce the time required for these procedures. Meanwhile, the Ret Cam Envision will be instrumental in diag- nosing eye cancer in children, retinal diseases, and examining premature babies. Collectively, these devices will serve approximately 5,400 children annually. It is of note that the clinic receives an average of 400 patients daily for free examinations, drawing individuals from all over Egypt and even from neighboring countries in the Middle East and Africa. Each month, approximately 250 eye surgeries are performed across various subspecialties. 57357 Fighters Maintaining the longstanding partnership between 57357 Hospital and the CIB Foundation, the Board allocated EGP 50 million for the medical treatment of 2,500 children, covering medical exams, tests, radiotherapy, chemotherapy, immunotherapy, and other treatments. Supporting Health Interventions for Refugee Children in Egypt The EGP equivalent of USD 202,000 was allocated to treat 600 refugee children in Egypt, in collabora- tion with the United Nations High Commissioner for Refugees (UNHCR). The funding will go to chil- dren suffering from diseases that require secondary and tertiary medical care such as cardiovascular and chronic respiratory diseases, diabetes, and neurological disorders. Touch of Hope Building on the previous successful collabora- tion between CIB Foundation and Sporting Students Hospital, the Foundation allocated EGP 11.5 million to purchase the Immunochemistry Analyzer device for the hospital’s Chemistry Department. This state-of-the-art device will almost double the number of beneficiaries due to its fast and accurate technology, allowing the hospital to serve 600,000 children while ensuring the most accurate results. Corporate social responsibility (CSR) is at the heart of CIB’s core values. Outfitting the Pediatric Ophthalmology Unit - Minia University Hospitals The Board approved EGP 6 million to outfit the Pediatric Ophthalmology Unit at Minya University Hospitals, a center of excellence that serves unprivileged families in the Minya and Upper Egypt region. The initiative is expected to serve 11,000 children annually. Together We Can In collaboration with the Yasmin El Samra Charity Foundation, the CIB Foundation allocated EGP 1.2 million to continue supporting children with epidermolysis bullosa (EB). The second round will cover the surgical operations costs for 235 children, including hand surgeries, blood transfusions, and other diagnostic procedures and laboratory testing required for alleviating and relieving the symptoms and pain that results from blistering and fragile skin. Supporting Squash CIB’s continued commitment to supporting squash in Egypt includes its sponsorship of prestigious tournaments like the El Gouna Open and the CIB PSA Squash World Championships at Palm Hills Club and The National Museum of Egyptian Civilization. These sponsorships have elevated the sport’s profile and inspired a new generation of players. By supporting top-ranked Egyptian athletes, CIB has contributed to their success on the international stage. This has not only boosted the sport’s popularity but also enhanced Egypt’s reputation as a global squash powerhouse. The Bank has tailored special sponsorships to help talented players maintain their rankings and continue representing the country around the world. As of December 2024, 16 players were recipients of the sponsorships. Governance In an increasingly complex and dynamic financial landscape, strong corporate governance is crucial 76 • CIB Annual Report • 2024 2024 • CIB Annual Report • 77 Strategic Direction / Board of Directors Report for preserving the integrity and trust that are foundational to the organization. A dedication to openness, responsibility, and moral behavior is strengthened by efficient governance, which also improves decision-making procedures. Effective governance is essential for both success and meeting commitments to stakeholders. Setting these values as a top priority promotes an integrity-based culture that supports strategic goals and creates long- term value for all stakeholders. CIB is committed to sustaining the highest standards of corporate governance and good governance concepts that not only comply with statutory requirements but also reflect best practices. This pledge seeks to uphold the confidence of all parties involved and increase shareholder value. Recognizing the importance of governance best practices, CIB has continu- ously shown an unshakable commitment to them, allowing the Bank to build a strong basis for ethical and prosperous financial industry operations. This strategy reassures stakeholders that CIB’s Board and Management work in their best interests. CIB’s efforts in practicing good governance serve as a notable example for the banking sector, setting a high standard for others to emulate through a comprehensive Governance Framework, diverse Board composition, sound Board committees, skilled management team, effective internal control processes, and transparent communica- tions and reporting. To ensure that it is properly managed, with efficient oversight and controls, the Bank has created a wide range of policies and procedures. These measures ensure that governance processes are consistently applied at all levels of the business, encouraging transparency and integrity. This reaffirms the Bank’s commitment to upholding a robust control environ- ment and encouraging good governance procedures. Board of Directors The Board is collectively responsible for the long-term success of the Bank, focusing on creating stakeholder value and providing a solid foundation for effective governance. This includes setting the Bank’s strategic objectives and overseeing their implementation, providing oversight of senior management, and ensuring the effectiveness of the Bank’s internal control system and risk management to safeguard its reputation and long-term sustainability. The majority of the Board members are non-exec- utive directors, which is essential for providing unbiased judgment and oversight. This majority serves as a cornerstone of effective governance, ensuring that decisions are made in the best interest of the organization without undue influ- ence from management. It is also crucial for maintaining the integrity and objectivity of the Board’s decisions and actions. Changes to the Board of Directors during 2024 • Resignation of Mr. Jay-Michael Baslow, Non-Executive Board Member for personal reasons. • Resignation of Mr. Hussein Mohamed Maged Hussein Abaza, CEO and Managing Director, ending his service at the Bank. • Effective November 5th, 2024, the following changes also took place: • Mr. Hisham Ezz-Al Arab transitioned from his position as Non-Executive Chairman to assume the role of Chief Executive Officer • Mrs. Neveen Sabbour, Non-Executive Board Memb er, was elect ed and appoint ed as Independent Chair of the Board • Mr. Amr El-Ganainy, Deputy CEO, joined the Board of Directors as Executive Board Member • Mr. Islam Zekry, Group CFO, joined the Board of Directors as Executive Board Member These changes bring the total Board members to 11, two of which are women, The Board’s executive members represent 27%, non-executives 27% and independent members 46%. Board Committees The Board of Directors has established six standing committees in compliance with the Banks’ corpo- rate governance regulations issued by the CBE, relevant applicable laws, and international best practices. These committees assist the Board of Directors in carrying out its responsibilities, enhancing the efficiency of Board operations, and strengthening the oversight function and serve as a useful means of ensuring that the Board gives appropriate consideration to all matters for which it is responsible and collectively provide an inte- grated view of risks at the enterprise level. The committees submit their recommendations to the Board of Directors to take the necessary decisions. Each Board Committee is governed by a charter that clearly outlines its objectives, scope, responsibilities, attendance quorum requirements, and voting procedures. All Board Committees are chaired by non-executive direc- tors, who brief the Board on major points raised by their respective committee. Conclusion Egypt’s economic growth trajectory remains prom- ising, driven by ongoing structural reforms that are paving the way for more sustainable development, and strong underlying fundamentals. In parallel, CIB has demonstrated remarkable resilience in navi- gating both global and local market challenges. As we celebrate our 50th anniversary in 2025, this mile- stone marks not only a testament to our legacy but also the beginning of an ambitious transformation journey. With a steadfast commitment to innovation, sustainability, and customer-centric solutions, CIB is poised to redefine its role in shaping the future of banking in Egypt and beyond. 78 • CIB Annual Report • 2024 2024 • CIB Annual Report • 79 03• Our Business Lines 80 • CIB Annual Report • 2024 2024 • CIB Annual Report • 81 2022 - CIB Annual Report 81 CIB continues to play a key role in Egypt’s economic development, supporting key industries and contributing to macroeconomic stability. This comes as part of the Bank’s steadfast commitment to transformation to keep pace with the ever-evolving dynamics. Our Business Lines Institutional Banking Global Transaction Banking (GTB) Recognizing the strategic importance of Global Transaction Banking (GTB), the division was integrated into Institutional Banking in December 2023. This pivotal move empowers GTB to fully own its product lifecycle, amplifying its direct contribution to the Bank’s bottom line while supporting both the Institutional and Business Banking segments. GTB is undergoing a strategic transformation to assume full ownership of its product suite and lifecycle, from conception to delivery. This evolu- tion positions GTB as a strategic business unit with accountability for its financial performance. By centralizing product and channel management, the division aims to foster innovation, deepen customer relationships, remain competitive, and drive sustainable growth. This enhanced role will empower CIB’s sales teams to further support the Relationship Managers (RMs) in delivering compre- hensive, value-added solutions and capture new business opportunities. Main Areas of Focus • Product Leadership: GTB has full ownership of transactional product lifecycles, from manage- ment of existing products and services, as well as the development and delivery of new ones. • Customer Centricity: With a deep understanding of customer needs, GTB will deliver tailored solu- tions that provide increased value to customers and improve customer satisfaction and loyalty. • Process and Service Excellence: GTB is a partner with Operations & IT to leverage tech- nology and process optimization to enhance efficiency, reduce costs, and accelerate time-to- market for new and existing products. • Revenue Generation: GTB focuses on increasing fee-based income and expanding the Bank’s deposit base through innovative product offer- ings and cross-selling opportunities. • Competitive Advantage: GTB differentiates CIB through exceptional customer service, a robust product suite, and an increased focus on innovation. Main Divisions Product Management & Development An experienced product team working to cultivate a center of excellence for end-to-end product owner- ship, develop necessary expertise, and supplement with external hires where required. GTB Products • Cash Management products • Trade products • Supply Chain Finance products • Global Security Services products Strategic Partnerships & Innovation A specialized team to identify, cultivate, and manage strategic partnerships with third-party providers and fintechs to drive co-innovation, expand product offerings, and deliver exceptional customer value. Channel Management A dedicated team to lead the design, implementation, and optimization of new and existing digital channels and leverage emerging technologies to ensure cost- effective and efficient channel delivery. The team fosters strong partnerships with internal stakeholders and external service providers and continuously improves the customer experience across all digital touchpoints. This dedicated unit will be a driving force in: • Enhancing customer engagement: Optimizing digital channels will provide a seamless and user- friendly experience for customers. • Building a competitive advantage: A best-in- class digital channel strategy will position CIB ahead of the curve. Business Development & Implementation The Business Development team collaborates with RMs to acquire new business from high-potential Institutional Banking and Business Banking customers requiring complex transaction banking solutions. The team works to identify and sell simpler GTB products and services to customers with less complex needs, leveraging CIB’s existing product suite and delivery channels. Post-Sales & Post-Implementation Support GTB’s Customer Support team focuses on post-imple- mentation activities and complex customer inquiries, and coordinates with Operations and relevant stake- holders to optimize the client experience. GTB Governance and Support The GTB Governance and Support division is dedi- cated to managing and ensuring collaboration and compliance among all Group divisions, the Bank’s internal stakeholders, the regulator, and other external stakeholders. Global Transaction Banking (GTB) 2024 Highlights GTB streams have diversified through innova- tive offerings, contributing to sustainable growth and stability. This has translated into streamlined revenues that reached EGP 2.9 billion, up 54% y-o-y, and cost synergies of EGP 3.3 billion, up 40% y-o-y. Cash Management 2024 Highlights Cash management revenues increased 74% y-o-y to EGP 611 million, while the customer base also grew by 24% y-o-y. The year saw a notable increase in transactions, which were up 21% y-o-y to 11 million transactions worth EGP 2.1 trillion, a 50% y-o-y hike, while synergies increased 38% y-o-y to EGP 3.1 billion. This year, CIB maintained its leading position, ranking 1st in the Egyptian market in governmental e-payment transactions over the CPS platform, with a 39% market share, as a result of the implementation of aggressive business focus groups for selling CPS products. CPS transactions increased 26% y-o-y in volume to 0.3 million and 63% y-o-y in value to EGP 70.1 billion. Moreover, CPS recorded a 21% y-o-y increase in customer base and a 43% y-o-y increase in synergies to EGP 53 million, with a positive impact on governmental payment revenues, which were up 68% y-o-y to EGP 541 million. Trade Products 2024 Highlights Trade products offer corporate customers the ability to conduct and manage their trade finance transactions online. They provide customers with transparent and clear information about their trans- actions, while efficiently eliminating paperwork. In 2024, trade finance revenues increased by 41% y-o-y to EGP 971 million. Online transactions were also up by 37% y-o-y in volume, with a value of EGP 146 billion, in addition to a 118% y-o-y increase in syner- gies to EGP 91 million. Supply Chain Finance 2024 Highlights Supply Chain Finance (SCF) is an effective way for corporate customers to improve their working capital position and strengthen supplier rela- tionships. SCF provides suppliers with access to financing, leveraging 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, the SCF portfolio (loan bookings) grew by 99% y-o-y to EGP 2.5 billion. Global Securities Services 2024 Highlights 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 over 20 years of experience. GSS revenues reached EGP 755 million in 2024, up 48% y-o-y. The division manages a diversified port- folio worth EGP 1.1 billion of assets under custody in favor of multinational customers who are investing in the local capital market. A new service was introduced in 2024 to include cash settlements for fixed income instruments for brokerage firms. This allows brokerage firms to enter the money market, increasing their customer base and enhancing market liquidity. 82 • CIB Annual Report • 2024 2024 • CIB Annual Report • 83 Our Business Lines / Institutional Banking Global Transaction Banking Governance and Support 2024 Highlights The GTB Governance and Support team is dedicated to managing collaboration between the Bank’s different GTB product owners, internal stakeholders, the regulator, and other external stakeholders. In 2024, the division continued its vital role in ensuring the stability, efficiency, and profitability of GTB products. It also continued to govern, manage, and coordinate different regulations issued by the regulator with product owners and the Bank’s internal stakeholders across GTB products, to guarantee full alignment among all engaged parties. The team also closely monitored KPIs and the profitability of all GTB products to evaluate overall performance and highlight areas of improvement. The team will continue to ensure that all GTB products and strategies comply with regulatory guidelines. Corporate Banking and Global Corporate Relations (GCR) Groups In a challenging geopolitical environment affecting Egypt’s macroeconomic outlook, the government has prioritized monetary and structural reforms to drive growth once global conditions stabilize. The deci- sion to float the Egyptian Pound was well-received by foreign investors and institutions, including the IMF, signaling the country’s commitment to an open market for USD. However, global instability, inflation, and declining Suez Canal revenues have hindered full recovery. Despite this, Egypt’s tourism sector remains strong, with FY24 arrivals expected to reach an all-time high, and a landmark deal with the UAE to develop a multi-billion-dollar city in Ras Al-Hekma is set to attract USD 35 billion in FDI. GDP grew by 2.5% in FY24, with the World Bank forecasting 3.5% growth in FY25, reflecting confidence in Egypt’s economic fundamentals. In this context, CIB’s Institutional Banking division successfully supported portfolio companies, expanded its local currency portfolio, attracted foreign deposits, and balanced liquidity with profitability while seeking high NIM growth opportunities. This approach enabled CIB to achieve strong balance sheet growth, enhance earnings quality, and maximize shareholder value compared to FY23. The Bank continues to play a key role in Egypt’s economic development, supporting key industries and contributing to macroeconomic stability, while focusing on building a high-quality portfolio and assisting both large corporations and SMEs in navigating a challenging market. 2024 Highlights Leveraging the extensive reach and market intelli- gence of CIB’s Corporate Banking and GCR Groups, portfolio growth continued to thrive in FY24, despite a challenging macroeconomic environment. Both Groups delivered exceptional results, contributing to a significant expansion in the loan portfolio, which grew from EGP 197.7 billion in FY23 to EGP 290.1 billion in FY24. This growth was driven by an expanded customer base, enhanced share of wallet with existing clients, and a remarkable increase in gross contributions post-tax, leading to a growth of 46.7% and 37.3% in loan portfolio and gross contri- bution after tax, respectively, for FY24. CIB remains committed to driving technological innovation, enhancing customer experiences, and improving operational efficiencies through digital solutions. Even amidst macroeconomic instability, the Group’s strong top-line performance, driven by its growing corporate lending portfolio, underscores its resil- ience and ability to deliver value to stakeholders. In line with its national development objectives, the Group also partnered with other syndicate banks to finance the expansion of National Egyptian Railways Industries Co. The extended facility will support the establishment of a state-of-the-art factory dedi- cated to producing rolling stock for both the local and regional markets—an important step in Egypt’s Vision 2030 industrialization strategy. In alignment with Egypt’s structural reforms, the Group has played a pivotal role in supporting industry players that provide strategic alternatives to imported goods, reinforcing the country’s localiza- tion efforts. A significant example of this commitment was the financing of a leading multinational pack- aging company with a USD 50 million project facility to establish Egypt’s first aseptic packaging plant. This initiative not only marked a key milestone in the country’s industrial and economic development, but also attracted foreign direct investments while advancing localization efforts. The food & beverage sector experienced notable growth this year, with CIB solidifying its footprint with market leaders in various segments. Despite a challenging high interest rate environment, GCR and Corporate Banking successfully secured approximately EGP 4 billion in CAPEX financing to meet export market demands and support backward and vertical integration projects, reducing import reliance for several manufacturers. Another key achievement was the financing of Egypt’s first citric acid manufacturing plant, with a total investment of USD 30 million. This plant, with an annual capacity of 33,000 tons, is set to fully replace 24,000 tons of citric acid imports while positioning Egypt as an exporter of the remaining production to global markets. The Group continued to support key strategic industries, including pharmaceuticals, with over EGP 2 billion in facilities allocated to local pharma- ceutical and medical appliance companies, helping reduce Egypt’s import reliance. In real estate, CIB has significantly expanded its portfolio and played a crucial role in financing major developments through leading and participating in new financing facilities exceeding EGP 10 billion as of December 2024 with top-tier developers. The Bank participated in one of the largest syndicated project finance deals for a mega project in Eastern Cairo on a 346-acre plot of land, in addition to another syndication participation for a renowned project in Western Cairo on a 482-acre plot of land to develop and construct mixed use projects. The Group also facilitated a securitization transac- tion for recreational clubs and financed a government initiative for affordable housing, reinforcing its strong presence in the sector. In tourism and hospitality, CIB extended over EGP 4 billion for the development and expansion of five-star hotels, supporting the revival of the sector, which is seeing a notable increase in tourist arrivals, set to reach 15.7 million in 2024, and aligning with Egypt’s goal to attract 30 million tourists annually by 2028. Furthermore, CIB provided up to EGP 2.5 billion in tailored financing to hospitals and diagnostic centers across Greater Cairo and underserved governorates, supporting infrastructure upgrades and investments in advanced medical technologies to improve equi- table access to healthcare. The power sector team successfully expanded its relationship with the Egyptian Electricity Holding Company (EEHC) and its subsidiaries, providing overdraft limits totaling EGP 8 billion to meet the group’s funding needs. Additionally, CIB partici- pated in a major syndicated facility for EEHC amounting to EGP 51 billion, with the Bank’s contri- bution reaching EGP 9 billion. Furthermore, CIB has managed to participate in the Suez Wind Energy S.A.E. 1.1 GW wind farm project. Valued at USD 1.2 billion, it is considered the largest single contracted wind farm in Africa. The project, located in the Gulf of Suez and Gabal El-Zeit area, will be implemented in two phases, each with a capacity of 550 megawatts. Notably, it will eliminate 1.1 million tonnes of carbon dioxide annually, supporting Egypt’s goal of increasing renewable energy’s share in its elec- tricity generation mix to 42% by 2040. The company is owned by ACWA Power, one of the world’s largest developers of renewable energy, and Hassan Allam Utilities Energy BV. Suez Wind Energy S.A.E has secured a senior debt facility from a consortium of prominent financial institutions, including the European Bank for Reconstruction and Development, African Development Bank, British International Investment Corporation, German Investment Corporation, OPEC Fund for International Development, and Arab Petroleum Investments Corporation, while CIB managed to solicit the Senior Lender’s Security Agency and Account Bank roles. Moreover, CIB has issued a development bond worth USD 100 million under the wind farm guaranteeing the construction period, with commercial operations expected to commence by the second quarter of 2027. CIB’s participation marks a major milestone for the Bank in continuously being part of and financing major national projects supporting the government’s outlook in the coming period. In alignment with Egypt’s vision to become a logis- tical hub, CIB extended a long-term facility of EGP 3.5 billion to finance the establishment of three strategic warehousing facilities in Suez, Luxor, and Fayoum, executed by Egypt’s most reputable developers. The state-of-the-art warehouses are designed specifically to ensure sufficient reserves of the country’s strategic commodities, curbing any possible shortages across Egypt. Other projects include extending facilities of EGP 1.0 billion to dry ports to assist the movement of cargo to customs clearance warehouses, designed to meet the needs of companies in the e-commerce, manufacturing, food & beverage, and technology fields. CIB continued its support to key industries on a national level, such as the energy and petroleum sectors by participating as IMLA and Underwriter in 84 • CIB Annual Report • 2024 2024 • CIB Annual Report • 85 Our Business Lines / Institutional Banking three syndicated deals, with the Bank’s stake amounting to EGP 11.75 billion. These facilities were arranged for leading energy and petroleum companies to finance the purchase of petroleum products, supporting the local fuel supply in line with national energy needs. In 2024, the Group launched a new corporate middle unit dedicated to handling daily operations for Institutional Banking corporate clients. This strategic initiative is part of the Group’s ongoing transformation efforts aimed at optimizing efficiency and enhancing the overall customer experience. The primary objec- tive of this project was to maximize focus on daily operations and credit approvals in order to streamline processes and improve turnaround times for credit approvals. By establishing the corporate middle unit, the Group aims to provide dedicated support and specialized services to clients through enhancing operational efficiency, expediting turnaround time, and adopting a customer centric approach in handling CIB’s valuable corporate clients. The GCC Representative Office, which became operational in January 2005 and is based in the UAE, serves CIB’s interests in the GCC. The office supports business growth in Corporate Banking, Consumer Business Banking, Financial Institutions, Debt Capital Markets, and CIB Kenya. In 2024, the office was successfully able to: • Market several new GCC inbound investment opportunities for CIB, with referred transactions in 2024 totaling USD 548 million and facilities of USD 140 million expected to be booked in FY24. • Provide comprehensive support to hundreds of overseas Consumer Banking retail clients in addressing their personal financial needs, in addition to assisting over 60 GCR and Business Banking Groups in conducting business with CIB. • Ensure robust GCC market coverage by formu- lating proper policies to manage and safeguard CIB’s exposure in the region. Since its establishment in May 2023, the GCR Africa Desk has contributed to CIB Kenya’s Corporate Banking growth in terms of assets, liabilities, and trade finance. In 2024, the desk contributed signifi- cantly to CIB Kenya’s strategy and successfully achieved the following: Supporting CIB Kenya in finalizing direct and indi- rect financing transactions across various sectors, including tea export, oil, construction, steel, fisheries, livestock, agriculture, financial institutions, trading, and consumer durables. This includes direct finance transactions valued at USD 20 million, with an addi- tional USD 27.5 million in contingent business. 2025 Forward-Looking Strategy As inflation continues to rise and interest rates remain at an all-time high, compounded by escalating geopolitical tensions, FY25 is expected to present ongoing challenges. In response, the Group will aim to support its portfolio of clients through continuous improvements in corporate infrastructure, techno- logical advancements, and streamlined internal processes, aligning with top-tier international stan- dards for approval mechanisms. These initiatives aim to strengthen the foundation of commercial operations, ensuring precision, transparency, and agility. By integrating global best practices, the Group aims to deliver more responsive and effective services while staying true to its core values. At the heart of these efforts is enhancing the customer experience, with every decision focused on supporting clients’ long-term success and guiding them toward more responsible, profitable economic models. The Group remains committed to promoting responsible banking practices, acting as a regional pioneer in offering sustainable finance solutions. CIB’s sustainable finance policy embeds sustain- ability throughout its operations, emphasizing ESG integration across business lines, and adapts to emerging trends, serving as a dynamic foundation for the Bank’s commitment to sustainable finance. The Group focuses on transforming Egypt’s sustainability landscape and becoming a global leader in the field, prioritizing risk management, revenue generation, reputation, and ecological footprint. Moreover, the Group will continue its focus on assisting its client base with digital transformation initiatives, meeting their immediate business needs while ensuring sustainable, long-term growth. To continue its unwavering support of Egypt’s domestic economy and commitment to national stability, CIB acts as a key stakeholder and major lender to the country’s mega development projects and investments across multiple sectors, including export-oriented industries, infrastructure, tourism, real estate, education, and healthcare. The Corporate Banking and GCR Groups remain optimistic about the fundamentals of the Egyptian economy, expecting greater stability and growth starting 2025. CIB will continue to expand its loan book, providing ongoing support to Egypt’s economic cycle and industry players, while safeguarding asset quality and preserving shareholder value. Internationally, CIB has strengthened its financial presence in Africa, with a representative office in Ethiopia and the acquisition of Mayfair Bank in Kenya, now operating as CIB Kenya. The Group is focused on expanding its trade finance activities and digital banking solutions, particularly growing its trade corridor to facilitate business for Egyptian corporates and SMEs in the key East African hub. Debt Capital Markets (DCM) Despite the ongoing economic challenges and increase in the interest rate market locally and glob- ally, DCM continued to deliver positive results and maintained its leading position in the debt capital markets space. This was achieved by capitalizing on DCM’s exemplary performance in advisory, under- writing, structuring, and arranging large-ticket syndicated loans and project finance facilities, as well as securitization transactions and bond issuances. 2024 Highlights Securitization and Bond Issuances CIB’s DCM Securitization and Bonds Desk has firmly established the Bank at the forefront of the Fixed Income Securities market. The Bank won the ‘Best Securitization House in Africa’ award from EMEA Finance in 2023, as well as the ‘Best Securitization Deal in EMEA’ for its successful closure of the largest securitization transaction in the history of Egypt’s debt capital markets, amounting to EGP 30 billion. CIB was also awarded the ‘Best Securitization deal in North Africa’ for its successful closure of the first social sustain- ability securitization bond issuance in Egypt, worth EGP 3.81 billion. Moody’s assigned a rating of SQS1 - Excellent, the highest rating for sustain- ability contribution, in line with the sustainability principles of the International Capital Market Association (ICMA). The team is also working on issuing the first social sustainability Sukuk in Egypt, worth EGP 7 billion. The issuance is aimed to benefit a large segment of underserved individuals in impoverished areas, in addition to empowering women, furthering CIB’s financial inclusion efforts. Throughout the year, the team further cemented its leading position in the market, having advised and arranged ten securitization issuances worth EGP 13.5 billion, alongside the mandated deals worth EGP 16 billion. Project Finance and Syndications Building on the Project Finance and Syndication Team’s strong presence in the debt capital markets space, 2024’s transaction pipeline marked a solid amount of EGP 133.5 billion, with CIB’s share reaching EGP 33.8 billion in total commitments. Throughout the year, the team concluded several key transactions in the real estate sector, totaling EGP 70.1 billion, with CIB committing EGP 15.3 billion. The team led two major restructuring and refinancing deals in the local market for USD 1.1 billion. The team played a pivotal role in advising and structuring both facilities to overcome challenges prevailing from the economic conditions. 2025 Forward-Looking Strategy Project Finance and Syndications DCM’s Project Finance and Syndication division has a strong transaction pipeline worth EGP 169.8 billion, with CIB’s initial appetite to participate reaching EGP 17.7 billion. To capitalize on this opportunity, the team is implementing a compre- hensive strategy focused on identifying new business opportunities across all sectors, with a particular emphasis on growing industries such as real estate, transportation, education, health- care, renewables, and infrastructure. The team leverages its strong relationships with DFIs and ECAs, building on DCM’s strong track record with such entities in previous transactions, to capture any potential financing opportunities that may arise, as well as advisory and agency services. We will continue to support clients through creative and bankable solutions that serve their business 86 • CIB Annual Report • 2024 2024 • CIB Annual Report • 87 Our Business Lines / Institutional Banking needs, including restructuring balance sheets to overcome existing market challenges. projects, with a remarkable 97% increase in the total amount of approved EUR loans and a 74% increase in approved EGP loans compared to 2023. Securitization and Bond Issuances The DCM’s Securitization and Bonds team is committed to reinforcing CIB’s dominant position in Egypt’s expanding fixed income instruments market through a multi-faceted strategy. This approach includes deepening core NBFI client relationships and innovating in new sectors to drive long-term growth, as well as diversifying into new sectors and introducing and promoting new products. FIG The Financial Institutions Group (FIG) covers four business segments: Correspondent Banking, Cash and Cross-Border Clearing, NBFIs, and Development Finance. Acting as the primary point of contact for both bank and non-bank financial institutions, FIG manages the Bank’s relationships with global finan- cial entities. Services offered by the group include loans, trade finance, and investments, as well as agency management and the promotion of develop- ment programs in collaboration with development institutions, government agencies, and local banks. 2024 Highlights Despite the escalating economic challenges in 2024, driven primarily by global and regional political risks in the region, the Correspondent Banking Group not only remained resilient, but also experienced significant growth. This success is largely due to a well-executed client-centric strategy that emphasized robust support for the Bank’s customers while adhering to a careful risk-adjusted return framework, capitalizing on the strategic partnerships with correspondents and diverse strategies. The group’s contingent trade finance portfolio, which supports major projects, grew by approximately 45% year-on-year, contributing to an overall revenue increase of 50%. As of December 2024, the Development Finance (DF) team, through managing developmental programs via ADP participating banks network, served 17,872 agri- business beneficiaries, with approved developmental agri-loans worth a total of EGP 919.08 million. The renewable energy sector within agriculture develop- ment saw a 113% increase in financing compared to 2023 year-end. DF also contributed to the green funding under the EPAP Project, financing water treat- ment projects for a paper tissue factory, reduction of dust emissions in workplace for fertilizer factories, as well as sustainable production and resource efficiency H.E. the Minister of Environment recognized CIB, specifically its DF team within the Financial Institutions Group, for its significant and impactful contributions to the third phase of the Egyptian Pollution Abatement Program (EPAP III). The DF team contributed to green funding under the EPAP Project, financing water treat- ment projects, reduction of dust emissions in workplace for factories, as well as sustainable production and resource efficiency projects. Despite a significant interest rate hike in 2024, the NBFI division captured a sizeable market share of existing demand by introducing new products. The division maintained strong asset quality in financed loan portfo- lios with zero defaults and minimal NPLs under various financed portfolios directed to the leasing, consumer finance, factoring, mortgage, and microfinance sectors. It onboarded new clients from various NBFI industries, resulting in an 18% growth in its loan portfolio by year- end 2024, with the microfinance portfolio increasing by 16%, of which 55% was directed to women entrepre- neurs in collaboration with DF. The market for securitization, Sukuk, and corporate bonds continued to grow, with CIB participating as an underwriter and subscriber in four NBFI-related new issuances totaling EGP 1.6 billion in 2024. In align- ment with the Bank’s strategy to promote financial inclusion, the NBFI and DF segments collaborated with the Digital Channels team to introduce CIB Business Online, ACH products, and Co-Branded Cards. Additionally, the NBFI department success- fully extended new FX facilities, and a credit facility was granted to a creditworthy insurance company. Furthermore, the Development Financial Institutions (DFI) team, as part of the NBFI, secured USD 60 million of senior funding supporting green and women SME projects from EBRD, as well as subordinated debts from IFC and EBRD amounting to USD 150 million and USD 75 million, respectively, to further strengthen CIB’s capital base and serve as a hedging tool against unexpected exchange rate volatility. In 2024, the DFI team also successfully completed two portfolio risk sharing agreements with both EBRD and DFC, amounting to USD 50 million and USD 41.6 million, covering 50% and 60%, respectively, of the non-payment risk of a portion of the Business Banking portfolio. This unlocks new business opportunities for CIB by de-risking a portion of the business banking portfolio, while also enabling the Bank to serve an underserved segment of SMEs. 2025 Forward-Looking Strategy The Correspondent Banking group is focused on expanding its global network to support Egypt’s trade and project finance strategic objectives, particularly in Africa. This comes as Egypt intensifies its efforts to promote exports to the region, with a strategic focus on East Africa due to its proximity to the country, emphasizing the vital role of our subsidiary CIB Kenya. The group aims to leverage its excellent relationships to better serve CIB clients, particularly in trade finance, cash operations, and cross-border payments. Plans include enhancing cash management services, diversifying account relationships, and increasing business volume with both existing and new partner- ships. Efforts will also be made to improve operational efficiency through system upgrades and by promoting CIB’s financial services and digital solutions. CIB is further strengthening its position in the microfinance sector, aligning with the CBE’s finan- cial inclusion and women’s empowerment mandates. The Bank is also targeting expansion into other NBFI sectors such as fintech companies, while growing the number of companies under the leasing, factoring, and consumer lending sectors. CIB will continue marketing authorized securitizations to enhance its investment portfolio. Additionally, the Bank plans to engage with insurance, investment, and brokerage companies to increase its local currency deposits. The Sovereign Wealth Fund (SWF) team will work on building new relationships with Gulf-based SWFs, positioning CIB as a key partner to facilitate their investment needs in Egypt. Treasury Group (TG) The Treasury Group (TG) serves as the Bank’s primary pricing authority for all FX and interest rate products. Its responsibilities encompass FX trading and hedging, fixed income and money market operations, sovereign debt trading, interest rate gap management, and the pricing of both local and foreign currency deposits. TG stands as one of CIB’s key profit centers, offering a broad range of prod- ucts and services to a large, diverse, and continually expanding customer base. TG is committed to deepening its understanding, expanding its reach, and supporting the growth of its varied clients, which include high-volume FX, interest rate, and hedging businesses. The Group collaborates closely with relationship manage- ment teams to address a portfolio that spans retail clients, large corporations, and small businesses from numerous industries. This includes exporters with foreign currency proceeds and importers with significant trade finance activities. 2024 Highlights CIB’s TG underwent a departmental restructure that aggregates all trading activities in both FX and fixed income under one umbrella, allowing for a holistic view of the Bank’s trading books, while widening CIB Treasury sales team’s scope to include all Treasury products and not only FX. This integration has provided CIB with an all-inclusive view of capital markets, allowing our trading teams to collaborate seamlessly. By aligning our FX and fixed income strat- egies, we can better navigate the interplay between different asset classes, enhancing our pricing capa- bilities and market insights. This restructuring has empowered TG to deliver more competitive pricing and innovative solutions to our clients. With a comprehensive view of the market, our team can assess risks and opportunities more effec- tively, leading to better informed trading decisions. Our clients benefit from enhanced pricing models that reflect a deeper understanding of market dynamics, ultimately fostering stronger relationships and trust. The recent developments on the geopolitical and economic fronts led to several rounds of volatility of the Egyptian pound. This volatility culminated in March 2024 with the free floating of the EGP, the extension of the IMF loan agreement to Egypt, and the accompa- nying significant influx of foreign flows into Egyptian capital markets. In response, TG intensified its efforts to capture all the FX flows from diverse channels and industries through competitive pricing, close customer contact, and understanding of its operating cash flows. Meanwhile, TG has implemented strategic measures to prioritize and grow its trade finance business, supporting balance sheet growth and non-interest income revenue streams. The above helped maintain a stable FX environment for its clients. Our proactive approach includes closely monitoring global develop- ments and adjusting our strategies to mitigate risks associated with currency devaluation. We recognize the critical importance of effectively managing our FX resources to fulfill the diverse demands of our clients and maintain our competitive edge in the market. 88 • CIB Annual Report • 2024 2024 • CIB Annual Report • 89 Our Business Lines / Institutional Banking Meanwhile, CIB has balanced between growing its FX and trade finance business, meeting all the Bank’s FX obligations, while maintaining an adequate FX posi- tion benefiting from significant market moves. This strategy has resulted in CIB outperforming major banks in the market. By closely monitoring global economic and finan- cial developments, along with Egypt’s economic indicators and financial position, the Treasury Sales team was able to maneuver its way through an ever-changing FX market. By capitalizing on its diversified client base and proactively engaging with its clients, the Treasury Sales team successfully met its commitments and was able to not only maintain our current business but also expand our share of wallets with our clients, while abiding by regulatory requirements and maintaining its profit margins. Moreover, TG’s restructuring allowed it to become more customer centric, as the Treasury Sales team now offers and handles all treasury related products to its assigned client portfolios. This, along with the efficient management of our currency position, led to a significant improvement in our profit margins. Consequently, TG’s performance was recognized internationally by global institutions such as Euromoney and Global Finance, winning ‘Best Bank for FX in Egypt’ and ‘Best FX Bank in Egypt.’ Throughout the year, TG successfully managed CIB’s FCY liquidity with efficiency. TG’s strategy focused on two main objectives: maintaining ample FCY liquidity and maximizing returns on excess FCY liquidity. As a result, CIB held a stronger position against liquidity challenges compared to other banks. TG effectively sustained a solid base of FCY and LCY liquidity, supporting CIB clients’ cash flow needs. Client liquidity requirements were met alongside the strategic allo- cation of excess liquidity into various money market instruments, resulting in maximized returns. The TG’s core strategy centers on prudent balance sheet management by maximizing interest income while maintaining a healthy Net Interest Margin. Initially, the TG invested in very short-term money market instruments or securities and floating-rate bonds in anticipation of rising interest rates. However, with interest rates expected to decrease during 2025, the strategy shifted to long-term fixed-rate investments. Moreover, TG was able to diversify its FCY invest- ments, prioritizing returns by carefully selecting bonds with favorable durations. This has enabled CIB’s TG to access new trading opportunities in a range of foreign currency bonds, creating a new source of capital gains. It is worth noting that during the devaluation period in 2024, TG was well positioned, seizing a sizable portion of portfolio inflows, and yielding historical capital gains in treasury bills. This further demonstrates TG’s ability to adapt to volatile market conditions with exceptional fore- sight and agility, effectively navigating the rapidly changing environment. 2025 Forward-Looking Strategy TG focuses on delivering exceptional service quality to its clients by providing competitive rates, customized investment and hedging solutions, and research driven insights to meet client needs. This customer-focused culture is fundamental to CIB’s strategy, empowering the Bank to maintain and strengthen its leading posi- tion in the Egyptian market. Additionally, CIB is actively diversifying its customer base to expand its balance sheet and better serve its clients. Enterprise & Governmental Relations (EGR) The EGR department is dedicated to empowering large-scale enterprises and governmental and sover- eign institutions through a comprehensive range of banking solutions. These services include, but are not limited to, cash management, trade finance, and secured lending, tailored to the unique needs of our clients. The department is committed to building strong, long-lasting partnerships, delivering excep- tional service and driving sustainable growth. 2024 Highlights The Enterprise & Governmental Relations (EGR) Department delivered exceptional results in 2024, reinforcing its position as a strategic partner for large enterprises and governmental institutions. Through a combination of strategic initiatives, innovative solu- tions, and focused client relationships, EGR achieved significant milestones, including: • Record Deposit Growth: EGR’s focused approach to building strategic relationships with clients resulted in a significant expansion of the deposit base, contributing to 51% of Institutional Banking deposits. In this regard, EGR’s total deposits stood at EGP 174,947 as of December 2024. • Enhanced Trade Business Share: In response to the latest FX devaluation and increased penetra- tion, EGR successfully increased its share of wallet in trade business by providing clients with tailored solutions to navigate the challenging market conditions. practices, allocating a substantial portion of its invest- ments to businesses committed to sustainability. • Unprecedented Digital Adoption: EGR’s commit- ment to innovation and customer-centricity drove unprecedented adoption of digital solu- tions, enhancing client experience and efficiency, as proven by an adoption rate of 69.2% for total transfers, 58.2% for trade transactions, and 75% for E-finance transactions. 2025 Forward-Looking Strategy The EGR department is committed to driving portfolio growth across liabilities, trade finance, and secured lending. Strategic efforts will focus on acquiring new clients, strengthening existing rela- tionships, and refining product offerings to reinforce CIB’s leadership in the market. • Profitability Maximization: A primary objective will be to enhance profitability by leveraging data analytics to identify cost-saving opportunities, streamline operational processes, and optimize resource allocation. Focus will also be placed on pricing optimization and fee income generation to further bolster financial performance. • Digital Service Expansion: In 2025, the department will prioritize the expansion and enhancement of digital services to solidify CIB’s market leader- ship amidst growing competition. By offering an integrated suite of digital products and solutions, alongside non-lending services, the team will deliver a seamless and efficient banking experi- ence that aligns with clients’ evolving needs. • Client-Centric Optimization: To further elevate client satisfaction, EGR will employ advanced segmentation and tailored value propositions, developing new products designed to address the unique demands of each industry, while ensuring the highest level of service. Direct Investment Group (DIG) As Egypt’s leading private-sector Bank, CIB offers a comprehensive range of financial services to its customers. Among these offerings are investment products tailored to meet diverse client needs. The Direct Investment Group (DIG), serving as CIB’s investment arm, plays a role in executing direct equity finance transactions. DIG focuses on investing in private companies with strong growth potential, identified through clear business models, compe- tent management, aligned shareholders, and solid fundamentals. Additionally, DIG adheres to ESG best DIG’s mandate is to proactively identify attractive opportunities by building a robust deal pipeline to secure successful new bookings and managing the existing investment portfolio to maximize returns and ensure profitable exits. In 2024, leveraging its extensive expertise, DIG was entrusted by the Board of Directors with the responsibility of managing the Group’s local and cross-border subsidiaries from an investment perspective, as well as overseeing the Bank’s venture capital portfolio through to exit. 2024 Highlights In recent years, despite geopolitical instability, inflation, and higher interest rates, DIG has deliv- ered strong results. The group secured significant dividend income from its portfolio and achieved a successful exit from a pharmaceutical sector invest- ment, generating notable capital gains. In FY24, DIG evaluated 11 investment opportunities across high- potential sectors in Egypt and successfully secured two strategic investments—one in the healthcare sector and another with a sector-agnostic private equity fund—strengthening its market position. 2025 Forward-Looking Strategy DIG’s forward-looking strategy is primarily focused on acquisitions in high-growth sectors such as education, healthcare, pharmaceuticals, financial services, and industrial manufacturing. These sectors are expected to deliver long-term growth and profit- ability. The focus remains on portfolio diversification to secure yearly exits, dividend streams, and sustain- able profits over the next three to eight years. In line with CIB’s broader strategic direction, DIG is also prioritizing green investments. These initiatives focus on companies or projects that adopt or expand ESG standards in green projects. Strategic Relations Group (SRG) The Strategic Relations Group (SRG) is an insti- tutional banking group dedicated to initiating, nurturing, and growing banking relationships with strategic institutional 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. 90 • CIB Annual Report • 2024 2024 • CIB Annual Report • 91 Our Business Lines / Institutional Banking 2024 Highlights Despite continued challenges in 2024, the Group successfully leveraged its digital banking solutions to increase its funding base and boost its SOW with existing clients, as well as attracting a substantial number of new-to-bank (NTB) clients. 2025 Forward-Looking Strategy The Group has emerged as one of CIB’s primary channels for corporate lead generators, lever- aging existing relationships while simultaneously capturing NTB opportunities by creating a wider networking base. By marketing tailored, short-term bridge finance facilities for the education sector, including universities and schools, the Group addresses seasonal cash flow gaps, positioning CIB as a key partner for these institutions. This approach is set to drive growth in the institutional depositor base and further increase the adoption of CIB’s digital banking solutions. CIB takes pride in being Egypt’s sole bank operating with a focus group exclusively dedicated to servicing prime institutional entities, including strategic clientele consisting of more than 300 diplomatic missions, NGOs, educational entities, airlines, and international and local donor agencies. Despite recent economic challenges, SRG has successfully maintained its relationship with foreign entities. SRG’s highly skilled relationship managers ensure clients receive tailored, high-quality services that meet their specific business requirements. • Tailored Banking Solutions: 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 flow gaps that develop throughout the year. • Innovative Product Development: The team facili- tates 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, particularly 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. Additionally, the team offers a range of tailored tuition and visa fees, monitoring and reporting deposit activities, fund management, savings plans, providing a settlement system between tourism companies and airlines, and special offerings for staff loans. 92 • CIB Annual Report • 2024 2024 • CIB Annual Report • 93 Our Business Lines Retail Banking Consumer Banking 2024 Highlights CIB’s Retail Banking division achieved remarkable milestones in 2024, driven by a targeted strategy of customer segmentation and service enhancement. Tailored financial solutions were introduced to meet the diverse needs of customers, and adapted strategies were aligned with each consumer segment, thus forming strategic partnerships and enhanced customer engagement initiatives. These efforts resulted in impressive year-on-year increases in gross contributions and digital adop- tion across all segments. This year, the Bank’s span of control across all consumer segments was enhanced, enabling a more agile response to customer needs and market shifts. Strategic align- ment boosted operational efficiency, empowering the teams to deliver a more personalized experience. Focusing on optimizing the customer journey, processes have been streamlined to provide a smoother and more engaging experience for clients. Customer feedback highlighted significant improvements in satisfaction, particularly following enhancements to the onboarding process, which expedited new customer transitions. These improve- ments contributed to a notable rise in market share, reinforcing the Bank’s position as a leading player in the retail banking sector. Through continuous innovation and service adaptation, CIB remains committed to delivering exceptional value and fostering long-term customer relationships. Prime Segment CIB Prime continues to serve key demographic groups—women, seniors, youth, and young profes- sionals—by offering tailored financial solutions designed to empower and support their specific needs. For women, financial empowerment initia- tives were prioritized, while seniors benefited from retirement planning services. Youth received access to essential banking services, and young professionals were provided with wealth-building opportunities through specialized offerings. By meeting the specific needs of these sub-segments, CIB Prime aims to strengthen customer engagement and foster sustainable growth within the segment. Strategic partnerships for both women and youth boosted card utilization. Seniors gained access to exclusive partnerships with Les Concierges, offering customized travel, governmental, health, and wellness services. Young professionals received attractive offers, personalized SMS communications, and a targeted loan campaign for education and home furnishings, specifically for non-salary transfer customers. The “Branch in the Sky” project, launched in April, led to substantial growth across product lines, including EPP and Credit Shield. By transitioning the contact center to a revenue-generating model, the initiative improved staff productivity and customer satisfaction. As of December 2024, the segment’s Gross Contribution (GC) grew by a remarkable 168% y-o-y, reflecting the success of these strategies. Internet Banking (IB) penetration rose to 83% from 69% in December 2023, further underscoring the shift towards digital banking. Plus Segment CIB Plus is considered the preferred banking solution for mid to high-income Egyptian families, offering a wide range of tailored financial solutions designed to help achieve both their current and future finan- cial goals. With a focus on providing personalized support to individuals in their late adulthood to early mid-life stages, CIB Plus is the trusted financial partner for long-term success. To enhance customer experience, the span of control for Plus bankers was optimized by 15%, allowing for more optimized attention. The Plus Bankers Academy Level I was revisited, emphasizing customer- centricity, business skills, and leadership. New Plus Bankers also participated in dedicated onboarding sessions to ensure smooth integration. The launch of the Plus Concierges application intro- duced 12 new services designed to cater to both financial and lifestyle needs, further enhancing customer loyalty and convenience. These efforts have solidified CIB Plus as the leading banking partner for mid to high-income Egyptian families, empowering customers to achieve their financial goals and build a secure financial future. Gross Contribution for the Plus Segment rose by 42% year-on-year, with the customer base increasing by 19.3% as of December 2024. Digital migration metrics showed significant improvement, with E-Statement and Internet Banking subscriptions reaching 96% and 95%, respectively, compared to 91% and 85% in December 2023. Wealth Segment In 2024, the Wealth segment focused on expanding its portfolio and increasing High Net Worth (HNW) market share by elevating service levels and engaging with customers on a deeper level. By expanding the dedicated Wealth team, CIB was able to offer more personalized services. Exclusive offers, partnerships, and collaborations with leading brands across sectors such as sports, hospitality, and luxury goods enriched the lifestyle of Wealth clients, providing premium benefits tailored to their needs. Reflecting on CIB’s commitment to delivering tailored financial solutions, loan offerings were enhanced by introducing two new programs, ensuring greater financial flexibility and increased credit limits. The launch of the WellSavers account, which includes medical insurance from AXA, offered a unique value proposition, allowing affluent clients to safeguard their health while growing their savings faster. This segmentation-driven strategy aims to deliver exceptional value, strengthen customer relation- ships, and reinforce CIB’s position as a trusted financial partner. By continuously deepening the understanding of customer needs and offering 57.3EGP BN Personal loans portfolio Revamping the AUM program allows for higher loan amounts granted to customers based on their segment. tailored solutions, CIB is positioned to drive sustain- able growth and maintain market leadership. Internet banking subscriptions have experienced a notable surge, with adoption rates rising to 96% from 93%. In addition, the focus on sustainability and oper- ational efficiency was reflected in increased digital migration, as branch transactions gradually shifted to online banking. Efforts to promote e-statement adoption and transition communications to digital channels, rather than printed materials, have further supported this shift. CIB Wealth’s financial performance has demon- strated remarkable growth, with total deposits soaring by 130% y-o-y. Gross contributions recorded substantial growth, marking an impres- sive 101% increase compared to 2023. Private Segment During 2024, enhancing the customer experience and optimizing the operational model was priori- tized to ensure seamless client experiences across all channels. The Private Client Advisors team was expanded to better serve clients, while service levels and quality within the dedicated Private Call Center were significantly improved. A streamlined workflow for Private segment requests was introduced to ensure all client inquiries are prioritized and closely moni- tored by the Operations team, ensuring timely and efficient service delivery. 94 • CIB Annual Report • 2024 2024 • CIB Annual Report • 95 Our Business Lines / Retail Banking Additionally, the launch of Elite Lifestyle management services provided Private clients with personalized concierge services through a dedicated mobile appli- cation, custom-designed to meet their unique needs. On the product front, unsecured loan limits were increased to the highest in the market, catering to the evolving needs of CIB Private clients. A new loan program was also introduced to meet the distinct financial requirements of self-employed individuals, offering them higher unsecured limits. Furthermore, the launch of the New Metal World Elite credit card introduced a suite of new benefits, enriched through strategic partnerships with leading brands across various industries such as airlines, fashion, beauty, and wellness. These collaborations aimed to deliver unique, high-end experiences, ensuring that CIB remains a leader in customer satisfaction. Overseas Segment In 2024, CIB Overseas Segment was established as a standalone segment, expanding its coverage to reach all overseas clients previously included under the CIB Prime, Plus, and Wealth segments. The Overseas portfolio grew by 109%, reaching 56,502 customers, including 9,782 in the Wealth segment. With a total AUM of EGP 52.5 billion and gross contributions of EGP 1.2 billion, the segment saw a notable increase in customer engagement rates and product penetration. By the end of 2024, the Overseas Wealth portfolio was up by 41% y-o-y. CIB introduced several service optimizations in 2024, improving the operational efficiency of Overseas Banking. This included streamlined processes for account activations and address changes via recorded calls, as well as expanded product offerings, such as the launch of the Overseas Mortgage Program. Additionally, marketing campaigns were launched during the year, which enhanced customers’ awareness and loyalty, offering exclusive discounts and vouchers for special occasions. The Overseas Banking Academy played a critical role in the segment’s success, with 15 officers gradu- ating from intensive training programs covering product knowledge, portfolio management, and sales techniques. Furthermore, and as part of the continuous efforts to enhance customer satisfac- tion, a Net Promoter Score (NPS) survey revealed a remarkable rate of 49% satisfaction for the segment, with Overseas Prime scoring the highest at 51%. These initiatives have strengthened CIB Overseas Banking’s position as a leading financial partner for Egyptians living abroad, empowering them with personalized financial solutions and an unmatched customer service experience. Liabilities CIB has embraced a strategic segmentation approach to better serve the diverse needs of customers, focusing on providing tailored solutions. By offering personalized saving products and services, the Bank aims to cater to the specific requirements of each customer segment, reinforcing a customer-centric philosophy that underpins value proposition. In 2024, CIB witnessed a surge in LCY household deposits, reflecting increased consumer confidence in our services. A strong commitment to customer needs, effective marketing initiatives, and diverse product offerings have proven instrumental in driving LCY household deposit growth this year, recording EGP 318 billion as of December 2024. This marks a 32% increase compared to the EGP 241 billion recorded in 2023. CIB made significant strides in household liability products this year, greatly strengthening our market position. We successfully acquired a substantial market share in the household segments, driven by innovative savings accounts and competitive deposit rates, which attracted a diverse client base. Our strategic marketing initiatives and personalized customer service have strengthened client relation- ships, contributing to a 0.48% increase in household deposits market share as of the end of May 2024 versus the previous year. This accomplishment not only underscores our commitment to providing value-oriented financial solutions, but also posi- tions us favorably for sustained growth in a highly competitive banking environment. Investments 2024 witnessed the Bank’s investment portfolio of mutual funds experience significant growth in its investment products division, exemplifying its commitment to delivering value to customers and stakeholders. The diverse portfolio, which includes money market funds, fixed-income funds, equity funds, balanced funds, and capital-protected funds, showed a notable increase in assets under manage- ment. This success can be attributed to the Bank’s innovative product offerings, designed to meet the evolving needs of clients. The performance of the investment products consis- tently outpaced market benchmarks, demonstrating a dedication to achieving superior returns for inves- tors. Continued growth is expected in this segment as the product range expands and digital platforms are enhanced, ensuring greater accessibility and transparency for all customers. This progress is further supported by a comprehensive risk profiling questionnaire, designed to assess customer risk toler- ance and align investments accordingly. risks. A key initiative was revamping the AUM program, allowing for higher loan amounts to grant customers based on their segment. Moreover, payroll program limits have been increased with the newly launched Payroll for High-End Customers program, adding to the Bank’s competi- tive edge in the market. On the other hand, we also increased the Non-Salary Transfer Loan (NSTL) program limits, with a particular focus on non- payroll customers. Insurance The Insurance business closed 2024 with strong results, achieving a total insurance volume of EGP 1.49 billion across life, health, and non-life lines, compared to EGP 973 million in 2023. Growing non-life products saw a significant increase in 2024, alongside a rise in the average ticket size for insurance products. Furthermore, quality improvements were implemented across the insurance portfolio, enhancing the overall customer experience. The business expansion also included extending the Group Life Insurance business to Business Banking borrowers that reached EGP 4.4 billion insured portfolios since initiation in 2022. Additionally, life insurance coverage for CIB’s unsecured Consumer Banking products was enhanced. Looking ahead, CIB will continue to utilize its data capabilities to generate leads based on customer behavior, aiming to increase insurance product penetration across all segments. This strategy will be supported by a targeted focus on customers with high insurance needs and promoting insurance offerings through the Bank’s digital channels. Consumer Lending In 2024, the Consumer Lending team navigated several macroeconomic challenges, including Secured Loans at minimum lending rates and mitigating the impact of rising interest rates on Unsecured Loans, which increased by 800 basis points during the year. Despite these challenges, the Bank succeeded in achieving outstanding growth in the Personal Loans portfolio, reaching EGP 53.7 billion as of December 2024, reflecting a growth of 30% y-o-y. To address these challenges and remain competi- tive, a range of tools were implemented to enhance acquisition rates and mitigate macroeconomic A new offering was introduced targeting the Self- Employed Private Segment, incorporating an Income Proof lending criterion. This program was launched to facilitate granting higher exposures for Private segment customers. On another note, the business is in the process of launching the A+ compounds income proof program, which is tailored specifically for high-end income proof profiles who own proper- ties in A+ compounds. The team also placed particular focus on End-Use Loan program, with efforts directed toward building a robust partnership network to promote the offering and enhance its value proposition. Strategic partnerships with universities, solar companies, furniture stores, and durable goods merchants were established to cater to diverse customer needs and enhance the accessibility of financing options. On the pricing level, the Bank revised the unsecured personal loans pricing grid based on tenor thresholds. The adjustment was implemented to boost acquisitions, minimize attritions, and set the proper competitive interest rate pricing. Payroll pricing is also now granted based on customers’ income instead of company tier. Cards CIB’s Cards business achieved substantial growth and innovation throughout 2024, reflecting the Bank’s commitment to delivering cutting-edge solutions in product development, digital payments, and process optimization. In terms of business growth, CIB’s credit card portfolio saw remarkable expansion, with credit card balances reaching EGP 15.1 billion, reflecting an impressive growth rate of 40%. The Bank has also successfully increased credit card activation rates, witnessing 26% y-o-y higher activation rates, demonstrating strong customer engagement. Additionally, CIB debit cards have witnessed a 96 • CIB Annual Report • 2024 2024 • CIB Annual Report • 97 Our Business Lines / Retail Banking By launching innovative products, enhancing digital capabilities, and focusing on customer satisfaction, CIB’s Cards business solidified its position as a leader in Egypt’s credit and debit card market. shift in customer behavior towards debit card retail transactions, with a 35% increase from cash withdrawals from ATMs to retail transactions. In terms of new product offerings, CIB has intro- duced the first fully World Elite Metal credit card in Egypt, expanding the Bank’s offerings to cater to high-net-worth clients. This premium product offers exclusive benefits and privileges tailored to the needs of affluent customers, further expanding the Bank’s portfolio. The Mastercard World Elite Metal Credit Card offers a premium banking experience with exclusive benefits and privileges, while CIB’s travel- related products and services cater to the needs of customers on the move. The launch of the Noon co-brand credit card has been particularly successful, acquiring 40,000 customers in the first year. Additionally, the renewal of the co-branded partnership with EgyptAir has further strengthened the Bank’s position in the travel sector, offering customers enhanced benefits and privileges for a superior travel experience. CIB’s commitment to digital transformation has been evident throughout the year. The successful implementation of Apple Pay has expanded digital payment options for customers. The Bank has also focused on acquiring new customers and migrating existing ones to digital payment solu- tions, providing a seamless and convenient digital banking experience. By launching innovative products, enhancing digital capabilities, and focusing on customer satisfaction, CIB’s Cards business has solidified its position as a leader in Egypt’s credit and debit card market. The Bank’s ongoing commitment to offering exceptional products and services will continue to drive success in the years ahead. Mortgage In 2024, the Mortgage business at CIB achieved significant growth, with Earning Net Receivables (ENR) rising from EGP 4.28 billion in 2023 to EGP 5.7 billion in 2024, reflecting a 33% y-o-y increase. A key driver of this success was the strengthened collaboration with the Social Housing and Mortgage Finance Fund (SHMFF), which facilitated growth in the low-income customer segment while also expanding the middle-income portfolio. A key factor in this growth was the enhanced turnaround time (TAT), facilitating faster credit decisions and enabling CIB to manage the surge in acquisitions effectively. Despite the rapid growth, the mortgage portfolio remains healthy, with delinquency rates consistently staying below the benchmarks. Throughout the year, several initiatives were implemented to boost acquisitions. CIB launched a dedicated mortgage program tailored to the Overseas segment, revamped the Standard Mortgage offering targeting premium segments, and signed a collabo- ration protocol with the Urban Development Fund (UDF) to support middle-income portfolio growth. Additionally, the Mortgage business placed a strong emphasis on collateral management, focusing on the registration and relinquishment processes to safeguard the Bank’s rights. These achievements underscore the Bank’s commitment to delivering exceptional service and competitive product offerings to CIB’s customers, cementing CIB’s position in the mortgage market. Consumer Banking 2025 Forward- Looking Strategy Looking ahead to 2025, the Consumer Banking strategy will focus on deepening customer relation- ships, driving profitability, and enhancing overall customer experience. Key initiatives will include refining value propositions, improving service models, and leveraging tailored products to capture greater market share and grow assets and liabilities. A cornerstone of the 2025 strategy is the introduction of a Family Value Proposition, which will be struc- tured around five key pillars: Access & Control, Save 98 • CIB Annual Report • 2024 2024 • CIB Annual Report • 99 Our Business Lines / Retail Banking & Invest, Pay, Borrow, and Loyalty & Engagement. The aim of this new offering is to attract additional Wealth families and generate substantial additional assets under management, thereby contributing to our Current and Savings Accounts (CASA) growth. Initiatives will be implemented to enhance contri- butions from targeted segments, including core customers and high-value individuals. A transi- tion to a subscription-based fee model for digital onboarding will encourage account usage and drive long-term engagement, while maintaining a steady increase in contributions from existing customers. CIB’s Debit Card offerings will concentrate on unifying options across segments to stream- line customer choices and simplify the product suite. By working closely with the Segments and Partnership team, the Bank aims to enhance the Debit Card proposition in support of the Cash to POS strategy. This will ensure it meets the needs of a diverse customer base while improving segmentation-based targeting, delivering value, and promoting Current and Savings Accounts growth. Additionally, CIB will embrace mobile payment solutions, positioning CIB as a leader in Egypt’s rapidly growing mobile payments market, driving customer acquisition and increasing trans- action volumes, facilitating the migration from cash to POS. As for Credit Cards, CIB will launch an innovative installment product that will serve as a complemen- tary option to traditional loans, offering customers a simpler and more personalized financial choice tailored to their needs. The Bank will establish more strategic partnerships to provide special offerings that cater to customers’ personal needs. To penetrate the non-payroll lending segment, CIB will prioritize unsecured lending and implement an income imputation model. New programs will be launched to support customers in accessing credit, with a particular focus on optimizing existing offerings, such as expanding the End-Use Loan Program through strategic partnerships with merchants in sectors like home furnishings, educa- tion, and solar equipment. A fundamental aspect of the 2025 strategy will be driving growth in Consumer Assets, particularly by expanding the Insurance Business. The goal is to leverage credit card usage for insurance premium paym ents and implem ent digital payment campaigns to increase penetration. New features will be added to personal loan offerings to enhance product differentiation, while indi- vidual insurance products will be integrated into segmentation criteria to better meet customer needs. Focusing on increasing customer transac- tion sizes, providing new payment solutions for health, and developing innovative health and risk product packages will support long-term growth in the insurance portfolio. CIB plans to boost mortgage acquisitions by enhancing customer experience and strengthening ties with the SHMFF. The middle-income segment will focus on Urban Development Fund (UDF) proj- ects and portfolio expansion. For premium clients, CIB will offer competitive pricing, leveraging real estate partnerships and targeting clients across the UAE, Qatar, and KSA. In terms of operational ef ficiency, CIB will continue to enhance through faster processes, expanding sales teams, and improved control and collateral management to streamline mortgage relinquishment and registration. This compre- hensive approach is designed to drive sustainable growth and market leadership in the mortgage sector. This multi-faceted approach ensures CIB’s mortgage business will achieve sustainable growth, solidifying its market leadership while meeting the diverse needs of its customer base. Business Banking Business Banking has developed a robust cash and trade management, recording EGP 90.9 billion in deposits, while trade volume reached EGP 68.8 billion, reflecting average growth of 25% and 21%, respectively, in the past five years. Operating profit came in at EGP 9.5 billion, with gross profit reaching EGP 6.9 billion. In the payments sector, the division successfully processed transactions totaling EGP 37.2 billion. Over the past decade, Retail Banking’s strategy for SMEs has led to the successful onboarding and activation of a wide base of non-borrowing customers. This customer base is central to the SME lending strategy, facilitating cross-selling of assets through various lending programs, lever- aging a strong referral mechanism. There has also been an increased 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 has expanded its asset portfolio with a remarkable growth rate, demon- strating an impressive compound annual growth rate of 59% in the past five years and reaching EGP 14.8 billion ending balance in 2024. 2024 Highlights Aligned with CIB’s commitment to social and environmental responsibility, and recognizing the pivotal role of SMEs in Egypt’s economic develop- ment, the Bank collaborated with the Frankfurt School of Finance & Management and GIZ in 2022 to establish sustainable finance standards and tools for the broader financial sector. This collaboration included tailored workshops for SME clients, designed to guide them toward sustainable practices within their industries and help them assess and mitigate their environmental impact. Building on the success of this partnership, CIB launched the “Sustainable Finance Loan” in 2024. This loan program empowers SMEs to adopt sustainable business practices, invest in renewable energy, and enhance their operational efficiency. The textiles, plastics, and food and beverage indus- tries are eligible for the loan, which offers attractive financial incentives from international develop- ment finance institutions, with repayment terms of up to five years. Both short- and medium-term financing options are available, and CIB’s expert advisors provide valuable insights into local and international market trends. CIB, in collaboration with Visa, also launched a comprehensive Business Cards Mega Awareness Campaign utilizing video production, outdoor advertisements, and direct communication strat- egies. Aimed at SME customers, the campaign sought to increase brand awareness and reach by highlighting the unique features and benefits of CIB business debit and credit cards. The campaign aimed to expand the CIB business debit and credit card base, drive a shift towards digital spending patterns, and promote a cashless society. This campaign also marked a significant milestone for Over the past decade, Retail Banking’s strategy for SMEs has led to the successful onboarding and activation of a wide base of non- borrowing customers. the Bank, reflecting substantial market engage- ment. The campaign’s innovative features and unprecedented promotional offers played a crucial role in raising market awareness, positioning CIB as the preferred banking partner for SMEs in Egypt, offering accessible and convenient banking solu- tions. This was reflected in 114% y-o-y growth in the cards business (ending balances at EGP 179 million). CIB continues to invest heavily in digital channels to enhance the customer experience and reduce reliance on front-line services, ensuring a secure banking environment with the latest technological advancements. As part of the “Bank of the Future” program, the Bank has expanded its in-branch services to be available exclusively through the CIB Business Online platform, streamlining trans- actions and improving convenience for Business Banking customers. Furthermore, the SME contact center was upgraded as part of CIB’s strategy to alleviate branch pres- sure and offer round-the-clock banking services by improving alternative channels. The upgrade focused on Business Banking products and digital services, technical support, and payment accep- tance services to reach a service level of 99%. CIB is strategically investing in its SME banking prop- osition to deliver unparalleled value and support. Through targeted initiatives, the Bank is equipping front-line teams with the expertise needed to provide comprehensive financial and non-financial solutions. Recent Growth Banker Academies have trained over 60 new professionals, expanding the Bank’s capacity to serve SMEs effectively. 100 • CIB Annual Report • 2024 2024 • CIB Annual Report • 101 Our Business Lines / Retail Banking 90.9EGP BN Business Banking deposits Retail Banking’s strategy for SMEs has led to the successful onboarding of a wide base of non-borrowing customers. Additionally, the division revamped its Business Solution Program by partnering with leading experts across various fields such as IT, export consultancy, general consultancy, digital ecosys- tems, event management, education, and digital transformation. This expanded network offers SMEs access to a wider range of essential services, helping them thrive and grow in a competitive market. SME Growth Initiatives Business Banking has successfully launched a cutting- edge workflow system tailored to enhance the credit facility origination experience for small and medium enterprises (BB Loan Origination). This initiative marks a significant advancement in streamlining day- to-day operations, improving the application process, boosting efficiency, and reducing turnaround times. By automating key processes, the platform incorporates a decision engine function that supports risk teams in approving credit facility applications. This system not only underscores CIB’s commitment to supporting the SME sector, but also places CIB at the forefront of banking innovation, fostering long-term relationships, and driving growth for clients. In alignment with CIB’s strategy to empower women, the Bank signed an agreement with the European Bank for Reconstruction and Development (EBRD) to provide targeted support for women, particularly in light of current global economic challenges. CIB aims to create a robust ecosystem for women-led busi- nesses by offering a comprehensive suite of financial and non-financial services. Leveraging this partner- ship with the EBRD, a technical assistance component will be conducted to tailor a communication strategy and differentiated proposition for women entrepre- neurs that meets the diverse needs of borrowers and non-borrowers. This collaboration will establish key milestones, including a detailed framework for business banking requirements, further strengthening CIB’s capacity to support women in business. In support of SMEs, and to expand the SME lending portfolio, CIB has signed a pivotal agreement with the EBRD aimed at expanding CIB’s SME lending capa- bilities. This agreement deepens the Bank’s relationship with international financial institutions, positioning CIB as a key partner in development finance and sustainable economic initiatives, marking a significant milestone in the commitment to supporting the SME sector. The agreement is structured around risk-sharing framework, enabling CIB to scale its lending portfolio while mitigating the risks associated with financing small and medium enterprises. Through this part- nership, CIB reinforces its role as a catalyst for SME development and its commitment to supporting the growth and resilience of the sector in the years to come. On the financial inclusion front, and in line with the Central Bank of Egypt’s initiative and CIB’s goal to include the unbanked segments of society by eliminating entry barriers, CIB continued targeting unbanked customers through its Bedaya accounts. Efforts to simplify the account opening process and reduce the required documentation have been imple- mented to encourage wider participation, supporting CIB’s mission to reach underserved segments of society. In 2024, Business Banking also achieved a signifi- cant milestone by becoming the banking partner for the Chemicals & Fertilizers Export Council (CEC) to support the Egyptian government’s plan to increase the volume of exports with approximately 2,000 export members, CEC is one of the largest export councils and is the second largest in terms of non-petroleum exports, accounting for about USD 8 billion in 2023. The council provides services to Egyptian manufacturers, exporters, and investors by conducting research, providing consultation, capability building, and improving international competitiveness in alignment with the government’s strategy to strengthen international trade. Additionally, CIB Business Banking signed a partner- ship agreement with the 10th of Ramadan Investors Association. The partnership aims to support the manufacturing sector in the 10th of Ramadan Industrial Zone, one of the largest industrial zones in Egypt, containing more than 5,000 Factory. CIB will provide financial, non-financial solutions. Furthermore, CIB has Collaborated with ABGAD, an Egyptian FRA-licensed platform dedicated to education, to offer comprehensive financial and non-financial solutions, tailored for educational institutions. ABGAD offers schools a variety of solu- tions to help with the tuition fee collection process and cash flow planning. The fast-track approval process provides families with convenient and flex- ible tuition fee installment plans. Payment Acceptance CIB maintained its dominant position in Egypt’s payment acceptance sector in 2024, attaining a market share of 17% of POS volume. Following the country’s push for financial inclusion, acquiring fees recorded EGP 1.65 billion, with average growth of 27% y-o-y. As a result, acquiring proceeds totaled EGP 120 billion in 2024, compared to EGP 82 billion in 2023, a 46% increase. Business Banking 2025 Forward- Looking Strategy Looking ahead, CIB’s Business Banking division remains dedicated to delivering a comprehensive range of tailored products and services to its SME clients in the upcoming year. These offerings will be carefully tailored to address specific busi- ness needs, ensuring optimal value and support. Furthermore, Business Banking will expand its service channels, with a particular emphasis on supporting women-led enterprises through stra- tegic partnerships with specialized entities. To drive loan portfolio growth, Business Banking will prioritize an enhanced onboarding process, leveraging innovative programs designed to cater to the unique requirements of small-sized compa- nies with appropriate loan ticket sizes. In line with technological advancements, Business Banking will invest in state-of-the-art infrastructure to auto- mate processes and elevate the overall customer experience. Moreover, CIB will enhance its online banking capabilities and remote services, empow- ering clients to conveniently and efficiently manage their finances around the clock. This includes seam- less access to online governmental payments and payroll services. Through these enhancements, CIB’s Business Banking division is poised to continue its growth trajectory, delivering exceptional value to SME clients and reinforcing its position as a leading partner for business success. CIB signed an agreement with the European Bank for Reconstruction and Development (EBRD) to provide targeted support for women. Online Banking CIB’s online banking channels have become the primary channels for customers, with a signifi- cant increase in usage and penetration rates. As of December 2024, the online banking customer base grew by 25% y-o-y, achieving the highest activity rate recorded to date. Mobile banking transac- tions saw an even greater surge, increasing by 59% y-o-y, with total transactions reaching EGP 552 billion—marking a substantial rise. Additionally, the migration to online banking channels had a positive impact, with 99% for credit card settle- ments and 98% for internal transfers, through online banking platforms. This shift has also contributed to notable cost synergies, with savings increasing by 26% y-o-y, totaling EGP 4.23 billion by December 2024. Looking ahead, CIB will continue to expand and enhance the features and services available through its online banking channels. The aim is to create new revenue streams for the Bank’s distribu- tion channels, increase new-to-bank onboarding rates, position online platforms as effective digital sales channels, boost assets and liabilities prod- ucts, reduce branch traffic, and improve customer satisfaction and convenience. Digital Sales at CIB have transformed the way the Bank engages with customers, drives growth, and adapts to the evolving business landscape. Through its robust online banking platforms, CIB offers a comprehensive suite of assets and liabili- ties digital products, empowering customers to explore and purchase products and services, take control of their financial well-being, and achieve financing or saving goals more effectively. 102 • CIB Annual Report • 2024 2024 • CIB Annual Report • 103 Our Business Lines / Retail Banking Digital sales at CIB have transformed the way the Bank engages with customers, drives growth, and adapts to the evolving business landscape. To generate new revenue streams, CIB introduced online booking options for Certificates of Deposit (CDs) and Time Deposits (TDs), which have gained significant attraction as investment tools. This initiative has transformed the online banking platforms into highly effective digital sales chan- nels, now accounting for 48% of the Bank’s total annual bookings by volume and 44% by value. This shift has helped reduce branch traffic, enhance customer experience, and increase reliance on digital channels due to their ease and convenience. journeys across various channels, introducing new services and touchpoints to manage increased demand and ensure consistent, swift responses to customer queries. This has led to improved customer experience, increased customer loyalty, boosting self-service usage and offloading the Contact Center team. CIB’s phone banking service delivers added value by allowing customers to bank quickly and effi- ciently from any location. In total, contact center calls grew 4% y-o-y. The number of IVR subscribers also grew by 13% y-o-y, reaching a customer base of 1.6 million, and cost synergies improved by 15% y-o-y, totaling EGP 161.6 million. In 2024 the contact center achieved a 99% SL and offered CIB’s customers superior experiences by introducing a virtual agent to allow contact center agents to capture and handle inbound calls from home. This initiative supported the contact center team in absorbing any unforeseen spikes in calls due to unplanned outages. It also increased the percentage of female contribution in night and overnight shifts. In 2024, the average monthly value of digital book- ings exceeded EGP 2.3 billion, driving the total CDs/ TDs booking volume to 75,000 transactions—a 94% y-o-y increase—and the total value to EGP 28 billion, marking a 167% year-on-year rise. Furthermore, requests for additional accounts opened via online banking reached 51,000, a 64% y-o-y increase, accounting for 61% of all new accounts opened in 2024. Additionally, loan and credit card submissions through online channels reached 28,000 and 42,000, respectively, generating a significant number of leads for further business growth. CIB Conversational Channels (Chatbot, Phone Baking, and SMS) CIB prioritizes a customer-centric approach, with conversational channels providing CIB customers with a seamless banking experience, allowing them to engage with the Bank at their convenience. Efforts have focused on enhancing customer To meet rising demand, the 19666 and 19716 Smart Wallet lines saw their capacity increase by 80% to achieve a 98% call success rate. Furthermore, the Bank expanded its contact center agent team to enable it to field more customer calls. IVR Self-Service Focus has been placed on enhancing the naviga- tion experience and leveraging dynamic options to drive key initiatives such as card activation and the introduction of Online Banking Unlock through the IVR self-service. The dynamic online banking unlock feature allows customers to directly unlock their online banking username once they have successfully logged in to the IVR self-service. This new service contributed to 65,000 online banking user unlocks by December 2024. Additionally, the GTB support hotline (16644) was extended by four hours, improving the service level from 88.8% in January to 99.6% in December. Crisis management This method uses smart alerts and leverages artificial intelligence to recognize spikes in negative sentiment. ATM Network CIB’s ATM network expanded to 1,387 ATMs, handling over 86 million transactions, representing a 9% y-o-y increase, with a total transaction value of EGP 250 billion, up 28% y-o-y. Average monthly cash dispensed reached EGP 13.5 billion, while average monthly deposits totaled EGP 7.9 billion. The migration ratio from branches to ATMs was 98.04% for eligible cash deposit transactions and 99.3% for withdrawal transactions, resulting in savings of EGP 653 million. A key focus has been the deployment of Drive-Thru ATMs at select locations, offering customers the convenience of accessing banking services without leaving the comfort of their vehicles. Additionally, the introduction of contactless services across the ATM network marked a significant improvement in both customer experience and transaction efficiency. SMS alerts have become a key communication tool, providing a seamless and efficient channel for proactively informing customers about their financial activities and important updates. In 2024, a range of new SMS alerts was launched, including rejected transactions, auto reversal, available balance, EPP enrollment, and refunded transac- tions. These initiatives have further enhanced the customer experience by ensuring that they remain informed in realtime. Social Media Recognizing the critical role that social media tools play in analyzing customer preferences, under- standing customer needs, and staying updated with the latest industry trends, CIB launched its social media platform on 16 February. The new platform helps drive social care, social listening, and crisis management using smart alerts. Social Care This feature aggregates messages and comments from different social media platforms (Facebook, X, Instagram, LinkedIn, YouTube, Google Play Store, and Apple App Store) into a single unified desktop, streamlining social media management efforts and providing a centralized view of all customer interactions. It also allows the auto- mation of certain aspects of social care, such as routing customer interactions to the appropriate agents based on predefined rules or keywords. The tool also provides automated reports for platform and agent performance, service level, case counts, and wrap-ups (categorization for incoming inter- actions). Additionally, it encompasses customer surveys, quality sampling mechanisms, agent score cards, and broadcast messaging in the case of a complete social media outage. Social Listening (powered by AI) This tool analyzes all customer interactions related to the Bank and monitors trends and spikes in mentions to generate a set of reports and analyses, including sentiment analysis, share of voice, and industry trends. 104 • CIB Annual Report • 2024 2024 • CIB Annual Report • 105 Our Business Lines Financial Inclusion Overview In line with the CBE’s 2020 initiative to establish a Financial Inclusion Division within the banking sector to serve unbanked and underserved segments of society, CIB launched its Financial Inclusion division. The division focuses on creating value for shareholders, generating a positive return on equity (ROE) for investors, and fostering inclusive, community-focused financial services. In 2024, the Financial Inclusion division continued its efforts to address the needs of underserved segments, enhancing their access to financial services, and improving their financial well-being. Our main sub- segments include blue collar workers, women, youth, and people with disabilities. The division also participated in the National Haya Karima (Decent Life) Initiative for the fourth consecutive year, collaborating with the Ministry of Planning and CBE. This initiative aims to improve living standards for marginalized communities, with CIB contributing by providing financial literacy programs and offering simple KYC financial prod- ucts to underserved rural areas. Additionally, CIB is actively participating in six annual CBE financial inclusion initiatives, which have enabled broader NTB customer acquisitions for the Bank. To further enhance services for individuals with disabilities, the Financial Inclusion team organized a consultation session on August 26, 2024, at the Egyptian Youth Council. The session provided an opportunity to gather direct feedback from people with various disabilities, helping the Bank better understand their financial needs and goals, and allowing for the design of more tailored financial solutions. Financial Inclusion Key Product Updates • Bedaya Saving Account: Bedaya experienced significant growth in its acquisitions, reaching 46.5k accounts by the end of 2024. This trend emphasizes the effectiveness of Bedaya’s market offerings. • Bedaya (Current/Business Accounts): In 2024, dedicated sales efforts towards micro-enterprises resulted in an impressive 103.6% increase in account acquisitions compared to the previous year, with average balances reaching EGP 17 million. • Smart Wallet: By the end of December, 200% of the year-to-date CBE target was met, with a 10% reduction in costs compared to 2023. • Meeza Prepaid Card: 6.7k. Financial Inclusion 2025 Forward-Looking Strategy The strategic vision for Financial Inclusion at CIB for 2025 centers on the development and imple- mentation of a comprehensive digital platform that seamlessly integrates key financial services such as payments, savings, investments, instant lending, and loyalty programs. This platform will have the capability to connect with third-party providers, enabling additional value-added services such as insurance. Designed to be card/account-driven, it will leverage local payment rails (IPN) and transition to a cloud-based solution for enhanced adaptability and security, subject to regulatory approval. Throughout 2025, CIB will accelerate the promotion of financial inclusion products and services through targeted digital media campaigns. These campaigns will focus on highlighting various uses and value propositions to deepen customer engagement and increase product adoption. In collaboration with the Financial Inclusion divi- sion and the Bank’s L&D Department, CIB conducted internal awareness sessions for staff, educating them on the importance of financial inclusion and the introduction of simple KYC products. By the end of 2024, 97% of the CBE’s target was achieved, with a 10% reduction in costs compared to 2023. To further boost financial inclusion, a series of on-ground activations will be rolled out throughout the year. These activations will focus on promoting the Bank’s financial inclusion offerings, particu- larly in alignment with the Central Bank of Egypt’s Financial Inclusion initiatives, Haya Karima, and the Egyptian Family Development Project. CIB’s financial literacy efforts will be expanded across Egypt’s governorates, with a special emphasis on women and youth. Through collaborations with the Central Bank of Egypt, NGO partnerships, women- led platforms, and youth centers, CIB will deliver educational programs aimed at increasing financial awareness, fostering financial empowerment, and promoting greater economic participation within these key demographics. Financial Inclusion Digital Platforms 2024 Highlights Following the successful 2022 upgrade of the CIB Smart Wallet, the digital team focused on ensuring high service availability in 2024. National switch reports showed high transaction success rates and consistent service availability. The Smart Wallet’s acquisition channels were expanded by adding new agent stores nationwide, and additional services like bill payments and donations were introduced, leading to a year-on-year decrease in complaints. On the data management front, several analytical reports were developed to improve efficiency and productivity for Acquisition and Distribution teams. A roadmap was also established to continue enhancing CIB Mobile Wallet services throughout 2024, ensuring the platform remains aligned with customer needs and market conditions. 106 • CIB Annual Report • 2024 2024 • CIB Annual Report • 107 04• Support Functions 108 • CIB Annual Report • 2024 2024 • CIB Annual Report • 109 CIB’s strategy focuses on incorporating transformation into all aspects of its business, bolstered by its support functions. Support Functions Operations & IT COO Area In 2024, the COO area played a pivotal role in advancing the Bank’s strategic agenda by enhancing the customer experience, supporting the business with the latest technologies, setting the stability program roadmap with a focus on critical appli- cations, enhancing security capabilities, and reengineering processes and workflows. Through cost optimization and resource realignment, the team has further advanced operational effective- ness, making way for reinvestment into automation initiatives that reduce manual tasks and errors. Key efforts this year also included reducing turnaround time (TAT), as well as average waiting time (AWT) and average handling time (AHT), significantly enhancing customer response times. The area’s key efforts focused on driving operational efficiency, supporting transformation initiatives, reducing operational bottlenecks, and improving overall customer satisfaction. This contributed to the Bank’s ongoing growth and the end-to-end customer journey. Moreover, strategic focus was placed on elevating CIB’s service levels across all customer touch- points, which has improved accessibility, providing customers with greater convenience and service flex- ibility. Together, these efforts have enabled the teams to support the growth of CIB’s customer base through streamlined processes and automation, effectively leveraging technology to maintain a high-quality, customer-centered service. Operations The Operations Group has worked on key activities this year to elevate customer satisfaction and resource opti- mization, and maintain high service standards, while absorbing business growth. A customer-centric focus has been paramount, ensuring that all service chan- nels meet customer needs efficiently and responsively. Implementing cost synergies through automation and robotic process automation (RPA), the group has enhanced its processes’ efficiency and minimized operational strain, allowing the Bank to scale effectively without proportionally increasing costs. Improving service quality has also been a priority, ensuring that each customer interaction is seam- less and positive. The process optimization efforts were reflected in accelerating the onboarding process for payroll and non-individual customers, which also enabled faster account activation and liabilities growth. Real-time data analytics were implemented to assess peak hours in branches and adjust staffing levels accordingly, as well as maintain the set average waiting times across branches vs. the increase in customer base/transactions. This year, the department success- fully reduced branches’ average waiting times by 58% across the network, enhancing service delivery for both retail and corporate customers. Meanwhile, in order to enhance customer experience on the digital channels, the Operations group addressed the service factors and maintained high performance across the ATM network. Despite the increase in trans- action volumes, ATM Operations & Availability function showed remarkable improvement in 2024 despite a +30% rise in dispensed amounts. Central Vault & Cash Management Operations also delivered impressive results, contributing to the Bank’s operational efficiency. With the expansion of services across six central cash centers in Cairo and Alexandria, the department was able to handle a 70% increase in transaction volume in 2024, leading to a 46% y-o-y improvement in teller productivity and a 31% reduction in AWT in cash center branches in the second half of the year. Security Security and resilience have always been strategic priorities for CIB, aiming to safeguard the Bank’s stakeholders’ interests against a multitude of threats. During 2024, multiple enhancements were introduced to fortify CIB’s defenses and expand its oversight across various layers. The Bank has conducted several independent assessments to validate its security posture, ensuring that CIB’s strategic investments are yielding the desired outcomes. Furthermore, CIB acquired multiple cutting-edge security tools during 2024 to achieve a higher level of visibility. The Bank also enabled incident response automation and orchestration, enhancing incident management efficiency and consistency, as well as the quality of cyber threat intelligence and the overall detection and response capabilities, reinforcing our commitment to excellence in security and resilience. These advance- ments underscore CIB’s unwavering dedication to the safety and trust of our customers and employees, and maintaining our brand positioning as a market leader. Corporate Premises & Projects Group The Procurement & Tendering department worked on tendering process re-engineering to expedite time-to- market, whereby the tenders were fulfilled 40% faster year-on-year. As for the procurement purchasing limit, it was expanded to increase productivity and time-to- market while keeping adequate controls in place. An extensive maintenance plan was implemented for generators and UPSs, including battery replacements for 103 branches to ensure their efficiency and main- tain business continuity. This was further supported by starting the implementation of emergency lighting fixtures at 50 branches. The team worked on adding six new branches to the network, with eight more in the pipeline, as well as adding 137 ATMs to the network, in addition to deploying 350 ATMs (replacement/removal) that positively enhanced our ATM distribution across Egypt. Our Head Office footprint was enhanced by renovating and optimizing the Nexus building (1,100 sqm), Kintecs building (1,400 sqm), Nile Tower (1,500 sqm), and Merryland (800 sqm), accommodating a total number of 700 employees. This is in addition to undertaking 85 modification tasks at CIB’s branches and head office, with a total area of 17,000 sqm, resulting in the reloca- tion of 680 employees. Staff and customer safety and security are also among CIB’s key focuses every year. As such, the Bank assessed all elevators across CIB premises, in addi- tion to upgrading the CCTV system for 57 branches as per the CBE mandate. To align with the Bank’s commitment to Corporate Social Responsibility, some branches were specifically equipped to serve special needs customers with additional ramps, handicap lifts, and automated doors, fulfilling the CBE mandate in this regard. IT The Information Technology (IT) division continues to be the cornerstone of supporting the implemen- tation of the Bank’s strategic vision and promoting the business services by efficiently implementing key strategic projects and system enhancements that positively reflected on business services and customer experience. CIB’s Digital Delivery Center rolled out a successful mobile banking solution that utilizes the latest tech- nological components and was built on fully scalable and responsive solutions, projected as a state-of-the- art delivery from a technology and service excellence standpoint. This major milestone was the first in CIB’s digital transformation journey, positioning the center to become CIB’s true digital arm. Additionally, DDC successfully implemented card tokenization services on smartphones via Apple Pay. Being the leading private bank in the Egyptian market, CIB was a pioneer in availing this service, which will offer an indispensable payment facility featuring virtual cards and contactless payments to our customers. The tokenization process was facilitated utilizing CIB‘s evolutionary mobile banking solution. Stability is one of the essential pillars of the Technology department, focusing on stabilizing technology platforms and fulfilling existing business strategic goals. This strategy has been successful, reflected in improved availability, customer satis- faction, and business strategy enablement. CIB also completed technology environment simplification and implemented new archiving solutions, enhancing the user experience and close-of-business activities. This year also witnessed an increase in the volume of customer communications, informing them of new products and offers and sending alerts for any 110 • CIB Annual Report • 2024 2024 • CIB Annual Report • 111 Support Functions / Operations & IT service downtime and maintenance, ensuring a seamless experience. One of the strategic milestones was to enhance the performance of corporate channels, through their migration to a faster infrastructure. This contributed to significant enhancement of the platform’s stability. On the infrastructure side, a full technology refresh took place, along with a consolidation of scattered components to simplify the technology environ- ment and optimize infrastructure resources based on system usage. Effectively embracing business growth, IT immediately responded to all business growth project requirements with no impact on system stability or business service availability, highlighting CIB’s highly scalable and flex- ible environment to respond to business needs. Customer Experience Given Management’s commitment to providing a superior customer experience, the team worked on optimizing all customer touchpoints and focused on enhancing the customer experience through multiple strategic initiatives, by fine-tuning processes, increasing service efficiencies and levels, improving end-to-end processes, and enhancing service quality. During 2024, pulse surveys on fee deductions were conducted, and a new remote service model for Wealth customers was proposed. The Bank will continue to run key initiatives undertaken during 2024, measuring customer feedback through in-house automated dynamic pulse surveys. To assess the end-to-end customer journey, a revamp for the mystery shopping exercise was conducted, identifying real gaps that will pave the way to enhance our internal processes and controls to enable the business and operations teams to add measurable financial values. For the Contact Center, the main focus this year was to improve service levels by expanding its capacity, increasing lines to absorb more calls at first contact, eliminating the busy tone, and trans- forming the Contact Center to a revenue generating unit. A comprehensive action plan to tackle all aspects affecting ATM availability was put in place. Additionally, waiting times were closely monitored as a key metric for branch service quality, availing Cash Centers to support branches with large cash tickets, extending branches working hours in some areas, offloading tellers from the ATM replenish- ment process, and on-boarding new tellers to decrease branches’ AWT. Processes Reengineering In 2024, the team worked extensively on studying key processes with a high impact on the customer experi- ence, favoring process simplicity, as well as reducing TAT following a ‘do less for more’ approach. Several mega projects took place during 2024 to enhance the service experience by streamlining key internal processes, supporting online migration, optimizing resources, and maximizing efficiency by eliminating non-value-adding activities, in addition to maximizing the benefit of our existing tools and systems. Transformation Office In 2024, the Transformation Office continued to drive strategic initiatives that reflect our core values. This required the involvement of different stakeholders across the Bank, synergizing thoughts and efforts and supporting the execution process, until the expected value was realized. Leveraging on the Winning Together concept embedded in many activities last year, collab- orative task forces were organized for every initiative taking place in 2024. The Transformation Office also continued to run the Culture Transformation Initiatives Implementation program, monitor KSIs, and assess the journey’s annual progress. This resulted in 70+ initiatives going live in 2024, prioritizing issues that affect customer experi- ence and process efficiency. Initiatives mainly aspired to simplify processes, enhance communication to internal and external customers, increase efficiency, and optimize resources. Other initiatives also aimed at eliminating manual processing, availing more services and requests on our digital channels. Three recognition ceremonies were held to celebrate the implementation of the outstanding initiatives of our CIB employees from different areas across the Bank, and to acknowledge their efforts to embrace a culture of innovation, collaboration, and excellence. By honoring their innovative ideas and dedication, CIB fosters a thriving workplace culture that empowers teams and enhances customer satisfaction. 112 • CIB Annual Report • 2024 2024 • CIB Annual Report • 113 Support Functions Human Resources 1,965 New hires in 2024 In 2024, HR carried out 16 employment initiatives across universities and local employment fairs in Egypt. As CIB continues to achieve substantial growth, the Bank is more adamant on developing its Human Resources function to better support its people, who are fundamentally responsible for CIB’s excel- lence. HR will continue to engage in regular planning to address long-term strategic needs, adhering to the Bank’s core values and guiding principles. The department’s primary objectives are inspiring confi- dence in CIB’s operations, attracting high-caliber employees, and fostering a high-performing and engaging environment. 2024 Highlights In 2024, the HR team carried out 16 employment initiatives across universities and local employ- ment 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 actively worked on the Talent Management program ,responsible for identi- fying top performers bank-wide through international assessments and efficiently streamlining corporate succession. As such, competency evaluations feed into the talent promotion process, allowing CIB to build a qualified talent pool, encourage high performance, and ensure talent retention. Business Enablement and Skills Development Business Enablement In 2024, HR contributed to business enablement, in alignment with the Bank’s strategic goals and directions, by providing more than 20 customized development tracks across different areas dedicated to employee development, enabling employees to acquire additional knowledge to complement their skills. Talent Strategy HR’s talent strategy revolves around reinforcing CIB’s 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. Consequently, 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 1,965 employees, encouraged the internal mobility of 1,174 staff members, and promoted 1,057 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. Moreover, the HR team designed an employee-centric training guide focusing on business, technical, and leadership domains to promote development and empower employees in achieving their strategic goals. More than 500 training rounds were offered throughout the year, benefiting more than 5,000 staff bank-wide. Additionally, many certifications and postgraduate studies were offered, with more than 39 certificates acquired by 330 employees to support career progression ambitions. A series of competency-driven workshops covering a variety of topics, including innovation and agility, were conducted across several business areas. More than 4,500 of the Bank’s employees participated, paving the way to the development of talented streams in alignment with the Bank’s talent framework. Digitization of learning experience In alignment with the Bank’s direction toward advancing digitization skills, the HR team intensified the incorporation of digitization in the training and learning opportunities offered to employees. These opportunities are offered through different learning tools and interna- tional platforms, including LinkedIn, Udemy, ARC Institute, Harvard, Coursera, Wharton, and the IMF, benefiting almost all bank staff. The team also developed videos and e-learning materials covering topics related to sanctions, customer rights, and trade finance, among others, offering more than ten modules completed by 7,500 employees in 2024. Organization Centric Developmental Initiatives In alignment with the core organizational goals and strategic direction for 2024, the HR depart- ment undertook several initiatives: • Two tailored training sessions were conducted for esteemed Board members, focusing on “AML & Compliance Practices” and “Governance in the Age of Climate-Financial Risk,” to strengthen governance capabilities. • Launched the CIB Mentorship Program to culti- vate a pool of 25 mentors within CIB, fostering talent development and supporting employees in their professional growth journeys. • Commitment to International Standards: CIB’s HR team achieved the ISO 29993 certification for “Learning Services Outside Formal Education” and received CPD membership for internally developed digital programs, further aligning with global HR best practices. In 2024, CIB was featured in a LinkedIn Learning Case Study as the first Egyptian bank to demonstrate how it successfully built a solid digital foundation, highlighting the Bank’s impactful contributions to staff and youth development. East Africa Developmental Initiatives In 2024, HR continued to support CIB Kenya (CIBKE) in enhancing employee development, with nearly 90% of CIBKE’s staff benefiting from various conventional and unconventional training programs. The CIBKE board also received targeted training on corporate governance, sustainable finance, and cybersecurity, leveraging CIB’s internal expertise. Youth Development Initiatives In line with the nation’s and CBE’s focus on youth empowerment and development, CIB established several initiatives dedicated to shaping the labor market. • CIB Summer Internship Program, an annual summer program that trained more than 18,000 undergraduates in 2024, which had a positive and organizational impact. • Partnered with international academic and professional institutions for the development of the CIB Summer Program, including SAS and Frankfurt School of Finance and Management, to create an exquisite learning experience. Organization Effectiveness Initiatives During 2024, 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 2024 witnessed the successful launch of the recog- nition program event after it was put on hold due to the COVID-19 pandemic. 2,200 recognized employees were invited with the aim to increase motivation, boost employee productivity, and, most importantly, foster a positive working environment. Throughout the year, HR capitalized on the existing recognition program to provide adequate engage- ment and empowerment tools that fit all functions across all levels within CIB, as well as enhance the bank-wide recognition culture. 114 • CIB Annual Report • 2024 2024 • CIB Annual Report • 115 Support Functions / Human Resources Employee Wellness Program HR prioritized employees’ mental, physical, and financial wellbeing in 2024 to boost morale and create a positive work environment. HR continued to provide a workplace counseling service, witnessing a 20% increase in application usage. It also conducted bank-wide webinars on mental health topics, which were attended by more than 1,200 employees per session to raise awareness across the organization. Furthermore, CIB highlighted the vitalness of physical wellbeing through the Wellbeing Initiative. The initia- tive, which saw the participation of 400 employees, aimed to provide employees with resources and workshops on a variety of wellness topics, including nutrition, healthy sleep habits, ergonomics, stress reduction, and exercise. Two virtual fitness chal- lenges were also launched during Ramadan and in the summer, in partnership with a fitness platform, to inspire employees to improve their physical health by completing a challenge and earning medals. Workplace Anti-Harassment Campaign In 2024, HR worked on two comprehensive anti- harassment campaigns to enhance CIB employees’ understanding of the workplace Anti-Harassment Policy and normalize the right to report inappro- priate behavior. These initiatives began with the introduction of an e-learning module and an aware- ness message circulated to all staff, followed by three rounds of two specialized e-learning courses titled “Global Workplace Harassment Prevention” for both employees and managers. These courses achieved a 74% pass rate. CIB also organized webinars to deepen employees’ understanding of implicit biases and promote a culture of inclusivity. Sessions like “Creating a Safe Work Environment: Anti-Harassment in the Workplace” helped further elevate awareness and equip employees with the knowledge to address inappropriate behaviors effectively. Awareness efforts included information and e-learning on the CIB Anti-Harassment Policy, enhanced via digital outreach through C-hub, digital screens, and computer backgrounds emphasizing CIB’s zero-tolerance stance on harassment, bullying, or discrimination. CIB will continue to actively pursue anti-harassment awareness initiatives aimed at promoting a safe and respectful workplace for all employees, reinforcing the organization’s commit- ment to a harassment-free environment. CIB reinforced its commitment to cultivating an inclusive workforce by facilitating employment opportunities for differently abled individuals. Diversity, Inclusion, and Gender Equality Initiatives 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 diver- sity. We are keen to provide equal opportunities and treat all employees with dignity and respect. These principles facilitate the attraction and retention of a diverse workforce, creating an inclusive workplace where every individual feels valued. We are currently particularly focused on gender equity and differently abled employees through a number of initiatives. Helmek Yehemena HR launched the fifth round of the Helmek Yehemena program, which aims to promote female empower- ment in the workplace in areas where females are underrepresented, mainly in the branch network. The program aims to encourage young female talents in the Upper Egypt and Delta regions to join the work- force. It supports females through short training programs to enable them to discover and expand their untapped potential and equip them with the neces- sary knowledge and skills to become members of CIB. The program started in Suez (Galala University), followed by Port Said (Port Said University), and was attended by more than 150 female students. Plans are underway to expand to South Sinai (Suez University) to increase female participation in those areas. Women in Tech CIB launched the fourth round of the Women in Tech Program that was introduced in 2019. This year’s program took place in partnership with the German University in Cairo (GUC), Banha University, and Ain Shams University, 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 females to work in technology divisions, such as IT and Security and Resilience Managem ent. Consequ ently, by th e end of this round, the IT department witnessed a 1% increase in female representation, while Security & Resilience Management witnessed a 2% increase. She is Back The She Is Back initiative helps mothers in their tran- sition back to work after their maternity or unpaid leave. Female employees are informed of any external or internal changes that affect both the Bank and their own respective roles during their absence. In 2024, two rounds were organized for more than 25 female employees. Carerha Summit In 2024, the HR team successfully 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, featuring over 5,000 attendees, is built around the idea that every woman deserves the opportunity to achieve her professional goals, regard- less of circumstances. It enables CIB to emphasize its commitment to promoting a more inclusive work- place by sharing a wide range of job opportunities and hosting several activities, including panel discus- sions on “Legacy of Leadership: Women Who Inspire the Next Generation of Change-Makers,” “Women Returners: Creating Supportive Environments,” and “Building a Strong Employer Brand: How to Attract and Retain Top Talent.” The summit also includes workshops on various topics, such as Finance 101 for Business Owners, and a podcast to discuss Women in Leadership: Success Stories. Shaghalni-Momken for Her CIB was the main sponsor of the inaugural collabora- tive event, Shaghalni-Momken for Her, a collaboration aimed at empowering women. The event provided career opportunities, and mentorship, and promoted inclusive workplace cultures, inspiring over 3,000 attendees through the stories of successful women from various fields. CIB’s HR team plans to continue supporting similar initiatives that emphasize diver- sity and inclusion, reinforcing the Bank’s position as an employer of choice. Women’s Development Tracks Women’s development tracks in a bank play a vital role in fostering diversity, equity, and inclusion while unlocking the full potential of female employees. These programs empower women by providing targeted development programs and leadership opportunities, helping to address gender disparities and build a pipeline of future leaders. This translates to enhanced innovation, improved decision-making, and stronger financial performance, as diverse teams are proven to drive better business outcomes. Accordingly, two developmental initiatives took place in 2024, starting with the launch of the “Retail Women Accelerator” program, which enrolled 45 entry and mid-level female employees from the Retail Banking area. The program focused on developing technical and non-technical skills, with a fast-tracked career path for top performers aiming for a supervi- sory role in the branch network, thereby building a sustainable pipeline of female leaders. The “Women@OPS” program was also launched to enhance the skillsets of females in the operations unit. The program was attended by 50 female employees, and was complemented with a set of developmental tracks for women across various managerial levels, covering more than 180 female employees trained in 2024. The HR summer program also saw significant female participation, with women comprising more than 60% of attendees. Better Together In 2024, we continued to reinforce our commitment to cultivating and preserving an inclusive work- force by facilitating employment opportunities for differently abled individuals. This initiative, which commenced in 2020, and the Kader 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 continued the hiring process, reaching a total of 160 differently abled candidates, 116 • CIB Annual Report • 2024 2024 • CIB Annual Report • 117 Support Functions / Human Resources CIB rigorously benchmarks its compensation and benefits offerings against both local and regional competitors to enhance its value proposition. of which 18% were females, since the start of the program. Moreover, to ensure these employees receive the necessary support for their success, managers who have differently abled team members will continue to be enrolled in training programs to equip them with the knowledge and skills needed to effectively support the differently abled population. A dedicated development track is also available for frontliners to better enable them in enhancing the customer experience, supporting customers with disabilities. The training was attended by more than 1,500 frontliners and 700 outsourced employees. These programs ensure staff can identify and address diverse needs, fostering trust and accessibility. This enhances the customer experience, strengthens the Bank’s reputation, and demonstrates a commitment to social responsibility and equality. Reward Management CIB is unwavering in its commitment to a fair and responsible compensation strategy that acknowl- edges and rewards exceptional performance. Our practices are rigorously gender-neutral, under- scoring our dedication to eradicating bias in all forms. By offering competitive compensation and comprehensive benefits packages, we not only attract top-tier talent, but also foster a culture of employee loyalty and engagement. This approach enhances our organizational reputation and empowers our workforce, driving sustained excellence and innova- tion throughout the Bank. In 2024, CIB’s remuneration structure steadfastly prioritized employee performance evaluations to uphold its competitive compensation program. HR instituted a comprehensive salary increase framework aligned with CIB’s strategic objectives, intricately integrating performance metrics with employees’ standings within the internal salary hier- archy, benchmarked against industry best practices. This meticulously designed framework took into account prevailing market conditions and trends, ensuring the delivery of compelling compensation packages that not only attract top talent, but also effectively mitigate competitive pressures from industry rivals. Through this approach, the Bank aims to cultivate a motivated workforce committed to driving organizational excellence. CIB rigorously benchmarks its compensation and benefits offerings against both local and regional competitors to enhance its value proposition. This strategic approach aims to attract top talent and foster employee engagement and satisfaction by ensuring that our packages are competitive and aligned with industry standards. By continuously evaluating and refining our offerings, we seek to create an empowering environment that motivates our employees and drives organizational success. 118 • CIB Annual Report • 2024 2024 • CIB Annual Report • 119 Support Functions Marketing and Corporate Communications Consumer Marketing Business Banking CIB Business Banking upheld a strong commitment to digital innovation and customer engagement throughout 2024. Key initiatives this past year included: 1. The Visa Business Platinum Credit Card Awareness Mega Campaign successfully height- ened market awareness and garnered significant customer engagement. 2. CIB’s participation in the Forbes Middle East Under 30 Summit, empowering young profes- sionals and showcasing CIB’s dedication to talent development. 3. Strategic partnerships with ABGAD and the Chemicals & Fertilizers Export Council, highlighting CIB’s role in driving digital transfor- mation and supporting Egypt’s economic growth. Cards Metal Credit Card Launch On the premium segments front, CIB’s marketing team worked to enhance the propositions of the Bank’s Private and Wealth segments to provide offerings that cater to customers’ lifestyles and add significant value. The year saw the launch of the Metal credit card for CIB Private customers, with a premium offering that matches their luxury lifestyle and provides lavish perks such as The Four Seasons accommoda- tion vouchers. The Bank also initiated a partnership with Quintessentially to cater to customers’ lavish lifestyles with distinguished global concierge services. Furthermore, Private and Wealth customers enjoyed exclusive offerings and services relevant to their everyday lives in partnership with Qatar Airways, Emirates Airlines, Palm Hills Club, Life Sports Club, IRAM & SIRAN, Schon Clinics, Beymen, and EGO. The main goal was to build on CIB’s set strategy for the premium segments, providing customers with competitive and creative offerings and leading the market on this front. Apple Pay CIB is pleased to announce the successful launch of Apple Pay, bringing a new era of secure and convenient mobile payments to our customers. This strategic enhancement to CIB’s digital offerings provides a seamless and private payment experience across Apple devices, reinforcing CIB’s commitment to innovation and customer-centric financial solutions. Liabilities Online Account Opening In 2024, a new communication initiative focused on CIB’s online account opening tool was launched, making the process easier, faster, and more conve- nient for customers. The core of the initiative’s messaging emphasized the benefits of joining CIB, encouraging prospects to explore the seamless account opening experience through the app. As part of this effort, various digital channels were tested to optimize acquisitions, ensuring customers are reached efficiently with the right mix of commu- nication platforms. This project paves the way for enhanced digital engagement and account growth in the coming years. Segments CIB Prime x Rahet Baly In support of women’s empowerment, CIB partnered with Rahet Baly, a platform offering new mothers a range of products and services that simplify and enhance their lives. During an event in New Alamein City, Prime customers received a six-month compli- mentary subscription to Rahet Baly. CIB Plus x Dara’s Ice Cream Partnership As part of the efforts to enhance the CIB Plus segment’s offering by piloting on-ground experiences to elevate the customer experience and boost brand recognition, CIB initiated a collaboration with Dara’s Ice Cream to introduce a special CIB Plus flavor, avail- able at Dara’s branches in Cairo and the North Coast, supported by a location-based digital campaign. To further engage Plus customers, exclusive perks such as a free flavor voucher and a buy-one-get-one offer were offered throughout the summer. CIB also partnered with TBS Group, including their popular brands Coffee Berry and The Four Fat Ladies, to provide a 10% discount for Plus customers, in addi- tion to branding and giveaways at their branches. These partnerships enabled the Bank to extend its reach across key summer locations, setting the stage for continued success in future campaigns. Private & Wealth – High-End Segment Experiences On the lifestyle experiences front, CIB has capitalized on its established platform to continue crafting luxury experiences accompanied by privileges and perks to match customers’ lifestyles. Partners throughout the year included Pier 88, KHUFU’S, The Smokery, The G-Hotel, Galambo, and Carlos. Digital Marketing Digital marketing strategies had a significant impact, particularly through always-on campaigns, reflected in a significant increase in the number of the Bank’s social media followers and engagement. This year, the Bank also launched its presence on X ( formerly Twitter) to reach broader digital audiences. Campaign Consolidation 2024 witnessed significant alignment between CIB’s digital marketing efforts and its business teams. Efforts were made this year to combine small campaigns into larger, more effective campaigns, focusing on existing customers to increase effective- ness and approval rates, and splitting awareness vs. acquisition campaigns. This is in addition to increasing spend to combat inflation rates and currency devaluation and aligning on the impor- tance of sponsoring CIB’s creatives rather than relying on organic social media reach. In-House Activities CIB’s in-house activities resulted in the successful launch of 62 Meta campaigns, two LinkedIn campaigns, and one X ( formerly Twitter) campaign, saving EGP 900k in agency fees this year and increasing efficiency of launch, monitoring, and management. Consequently, card leads increased by 50% from 2023, while loan leads also surpassed the previous year and conversions nearly doubled from 2023 across the board. Digital Leads CIB is working to build strong foundations for future- proof solutions through omni-channel marketing automation solutions and integrations, and enhance data collection forms for better integration and audi- ence conversion matching on serving platforms. An estimated 30% of card sales and 20% of loan sales were exposed to digital marketing activities on Facebook in 2024. CIB Website Website users and sessions saw a 20% and 11% increase, respectively. Paid media contributed to a quarter of website traffic, while organic traffic main- tained its share. 49% of this was direct and mostly returning visitors. Users, sessions, and pageviews increased year-on-year due to large campaigns in 4Q24 including, but not limited, to Apple Pay and the New Mobile Banking App. The bounce rate increased year-on-year, due to consistent spending and an increase in campaign activity in 4Q24. As a result, the Bank acquired on average 350K new users a month starting 2H24, with 550K sessions. Identifying and retaining target users and leading them down a sales/engagement funnel will be a key focus in 2025. SEO activities are continuing, with an ongoing process to utilize best practices and focus on “voice search” optimization, in addition to focusing on more personalized funneling. 120 • CIB Annual Report • 2024 2024 • CIB Annual Report • 121 Support Functions / Marketing and Corporate Communications A new communication initiative focused on CIB’s online account opening tool was launched, making the process easier, faster, and more convenient. The main focus of 2024 has been on enhancing the performance and stability of the website, which has been successfully achieve. A new branch appointment feature launched, and the chatbot and the chatbot has undergone a visual, and content revamp. Marketing Analytics The Marketing department closely monitors ever- evolving customer behavior and lead generation trends with the latest technological tools available. To facilitate this, a Marketing Analytics function was established, automating the majority of the reporting processes and enabling the Marketing team to utilize internal data for fast analytics pre-campaigns and bridge the gap between website traffic personalization, online campaigns, and customer behaviors. Corporate Marketing Merchandise Marketing Enhanced Digital Presence To optimize CIB’s marketing efforts, the Bank has tran- sitioned from traditional print ads to a state-of-the-art digital screen in the bustling Terminal 3 domestic hall of Cairo International Airport. This innovative approach helps reach a much wider audience and deliver impactful messages about CIB products and services. Furthermore, the Bank implemented video wall technology at its branches to create immersive experiences that highlight its offerings and campaigns. Sphinx International Airport Maintaining CIB’s strategic position as Egypt’s leading bank necessitates a continuous expansion of the Bank’s advertising presence across the country’s airports, particularly newly established airports that serve as international gateways. This year the team success- fully secured prime locations at Sphinx International Airport, maintaining a strong and exclusive presence. CIB Network Expansion and Digital Enhancements While CIB’s branches and ATMs remain funda- mental to the customer experience, the Bank remains committed to significant investments in maintaining and improving these touchpoints. To this end, the Bank has added eight new branches to its network and renovated two existing ones. Additionally, the online location management solutions continued to undergo enhancements to bolster CIB’s digital presence across multiple plat- forms, in addition to the installation of the video walls in branches located at City Stars and District 5 malls, as well as expanding the standardized scent experience to our premises, which has been spread across our branches. This comprehensive approach aims to solidify CIB’s position as Egypt’s leading financial institution. Media Presence In 2024, CIB’s PR & Media Team maintained a strong media presence, effectively communicating key messages to a diverse audience. A total of 43 press releases were issued in local media across various sectors: • Corporate Social Responsibility (CSR): 14 press releases highlighted CIB’s commitment to sustainable practices and community develop- ment initiatives. • Business: 28 press releases showcased CIB’s innova- tive products, services, and strategic partnerships, driving business growth and customer satisfaction. • Learning & Development (L&D): 4 press releases emphasized CIB’s focus on employee develop- ment and upskilling, fostering a culture of continuous learning. • Human Resources (HR): 5 press releases highlighted CIB’s commitment to employee well- being, diversity, and inclusion. The team is poised to further strengthen its media outreach with an additional eight press releases to be spread across the above-mentioned topics, ensuring that CIB’s voice remains prominent in the local media landscape. Events and Partnerships CIB’s 2024 marketing and communications efforts focused on a diverse range of events and partnerships to enhance brand visibility and customer engagement, with almost 100 events taking place during the year. • Industry Conferences and Summits: Participation in major industry events to showcase CIB’s expertise and network with key stakeholders. • Support of cultural, sports, and commu- nity events: To enhance brand visibility and strengthen relationships with customers and partners. Notable sponsorships include: - El Gouna Film Festival: A world-class film festival showcasing international cinema. - Um Kulthoum Hologram Concert: A ground- breaking event at the iconic Abdeen Palace. - Omar Khairat Concert: A popular concert series featuring the renowned musician. - Al Alamein Festival: A prestigious cultural festival celebrating Egypt’s rich history. - WAFDF Art Exhibition: A major art exhibition featuring works by renowned artists. - Significant presence in the North Coast at Seashell, G Hotel, and Sol Beach in Marrassi. - Padel sponsorship continuation. • CSR Initiatives: Collaboration with NGOs and government organizations to promote social responsibility and sustainable development. - Women International Day Initiative - Financial Inclusion Day Initiative - The Arab Center for Conferences Annual Iftar - Arab Financial Inclusion Day Initiative - The Autism Month Celebration - Yasmine El Samra Foundation Event - Youth International Day Initiative - Farmer Day Initiative - New Contract with Shaghalny Program • Strategic Partnerships: Partnerships with leading institutions to drive innovation and expand CIB’s reach. By actively participating in these events, CIB has strengthened its brand reputation, fostered customer loyalty, and positioned itself as a leading financial institution in Egypt. Commitment to Squash CIB’s continued commitment to supporting squash in Egypt includes its sponsorship of prestigious tour- naments like the El Gouna Open and the CIB PSA Squash World Championships at Palm Hills Club and The National Museum of Egyptian Civilization. These sponsorships have elevated the sport’s profile and inspired a new generation of players. By supporting top-ranked Egyptian athletes, CIB has contributed to their success on the interna- tional stage. This has not only boosted the sport’s popularity but also enhanced Egypt’s reputation as a global squash powerhouse. Squash Players Renewal Contracts for 2024 • Ali Farag • Karim Abdel Gawad • Mazen Hisham • Tarek Mo’men • Fares El Dessouky • Mohamed Aboel Ghar • Mostafa El Sirty • Youssef Ibrahim • Nouran Gohar • Hania El Hammamy • Nour El Tayeb • Rawan El Araby • Salma Hany • Farida Mohamed Squash Players New Contract • Mostafa Assal • Mohamed Zakarya Internal Communications Internal Website – C-Hub The team successfully launched the new internal website C-Hub portal instead of using intranet, a platform designed to foster a more connected and engaged workforce. This innovative portal features a redesigned interface, interactive features, and up-to- date content, making it easier for employees to access important information and connect with colleagues across the organization. Roundup – The Weekly Newsletter The weekly Roundup newsletter continued to be a valuable tool for employee engagement, featuring a fresh, uplifting design and more engaging content. By highlighting vital news, event photos, and depart- mental spotlights, staff members remained updated, informed, and inspired. Internal Gatherings • Executive Gatherings: To strengthen relationships and foster a positive work culture, CIB organized and supported various executive gatherings. These events provided opportunities for employees to network with senior leadership, ask questions, and gain insights into the company’s strategic direction. • Learning from the Best: CIB launched the ‘Learning from the Best’ series, which provides invaluable insights into the latest developments, trends, and best practices shaping the future of the industry both domestically and internation- ally. Each session features a guest speaker who possesses valuable input and experience related to the topic. 122 • CIB Annual Report • 2024 2024 • CIB Annual Report • 123 Support Functions / Marketing and Corporate Communications • Leadership Development: Leadership confer- ences and training programs to foster a strong leadership pipeline. • Employee Engagement: Employee recognition events, team-building activities, and wellness initiatives to boost morale and productivity. • Diversity and Inclusion: Initiatives to empower women, support talent development, and promote a diverse and inclusive workplace. Staff Wellbeing Employee well-being and professional development continued to be an area of focus for CIB throughout 2024. The Bank held a series of engaging live webi- nars, which were also recorded to support the HR team’s objectives of spreading well-being messages. Topics covered workplace diversity, mental health, and unconscious bias. These initiatives aimed to empower employees, promote a positive work environment, and foster a culture of inclusivity and respect. These episodes were promoted through CIB’s internal channels to encourage staff members to attend live or listen to the recordings to increase awareness of these important topics. Sustainability – Externally ESG Reporting CIB demonstrated its commitment to transparency by publishing three impactful reports: the Environmental, Social, Governance, Data & Digitization (ESGDD) Integrated Report: Driving Value Creation, the Principles of Responsible Banking: Self-Assessment Report 2024, and the Green Bond Framework: Updated Version 2024. Global Recognition CIB was honored to receive the prestigious titles of “Best Sustainable Finance Bank in Emerging Africa” and “Best Sustainable Finance Bank in Egypt” for 2024 from Global Finance. This recognition underscores the Bank’s commitment to driving sustainable devel- opment through innovative financial solutions. The awards were heavily reported in local media. Foreign Media Coverage To elevate its sustainability efforts on a global scale, CIB strategically allocated a significant portion of its foreign media budget to highlight its ESG initia- tives. This investment aimed to raise awareness of the Bank’s sustainability practices among interna- tional audiences. Sustainable SME Financing CIB launched the new “Sustainable Finance Loan” in 2024, targeting SMEs. This product, developed in partnership with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), GmbH, and Frankfurt School, aims to support sustainable busi- ness practices and contribute to a greener future. The launch was widely promoted through various marketing and communication channels, including a dedicated event, internal announcements, social media campaigns, and press releases. Sustainability – Internally Sustainability Award The Business Banking Credit Administration Department was recognized in a large internal event, which was attended by several CIB Executive Committee members, for their voluntary efforts in enhancing CIB’s operational efficiency and reducing its carbon footprint. This recognition highlights the department’s commitment to sustainability and its alignment with CIB’s broader sustainability goals. Employee Awareness Campaigns To raise awareness and understanding of sustainable finance, a two-month campaign of targeted messages was launched to CIB employees. These messages featured interesting facts and tips about ESG. C-Hub Sustainable Finance Section A dedicated Sustainable Finance section was added to the C-Hub, providing staff with a comprehensive overview of CIB’s ongoing sustainability initiatives and accomplishments. 124 • CIB Annual Report • 2024 2024 • CIB Annual Report • 125 05• Our Controls 126 • CIB Annual Report • 2024 2024 • CIB Annual Report • 127 To ensure it is able to withstand the risks and challenges that arise with banking, CIB has in place stringent control functions that help ensure its compliance and bolster its resilience. Our Controls Risk Group The Risk Group continues to provide the Bank with the necessary support to achieve its strategic objec- tives through the utilization of the Enterprise Risk Management (ERM) framework and the Three Lines Model in risk oversight, control, and governance. The group has in place a robust risk management and control framework, which allows the Bank to iden- tify, measure, and manage risks, make well-informed decisions, and monitor progress through a strong risk infrastructure, highly skilled people, credible and consistent data, systems, methodologies, and policies. In carrying out its strategy and day-to-day opera- tions, the Risk Group has several areas of focus: 1. Achieving the Bank’s growth objectives while maintaining a healthy portfolio quality. 2. Maintaining regulatory requirements. 3. Ensuring Environmental, Social, and Governance risk principles are promoted and maintained within the organization. 4. Embedding a strong risk culture across all func- tions of the Bank. 5. Facilitating a smooth digital transformation, focusing on optimizing Bank resources and enhancing customers’ experience. Liquidity and Interest Rate Risk Thresholds CIB continued to have solid LCY and FCY liquidity positions throughout 2024, with healthy buffers to the global and local increases in risk profile. The Bank also had an ample level of High-Quality Liquid Assets (HQLA), with the LCY CBE liquidity ratio recording 46% as of December 2024, against the threshold of 20%, while the FCY liquidity ratio reached 74%, against the threshold of 25%. Furthermore, the Net Stable Funding Ratio (NSFR) recorded 239% for local currency and 236% for foreign currency, and Liquidity Coverage Ratio (LCR) was 1709% for local currency and 403% 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. Credit Risk Institutional Banking Risk Loan portfolio growth and credit quality continued to be the main priorities in 2024. This was especially necessary with the recent challenges facing the IB Portfolio, including exchange and interest rate volatility and geopolitical challenges stemming from regional tensions that put inflationary pressures and negatively impacted the economic landscape. As a result, the Risk Group introduced positive radical changes to the credit approval processes designed to support growth, empower second and third-line management, and improve the customer experience while maintaining CIB’s leadership in the market. Moreover, credit processes were revamped in line with their respective industries’ characteris- tics, lending rationale, assessment techniques, and parameters, as well as control aspects including, but not limited to, disbursement mechanisms, imple- mentation, and monitoring. Consumer Banking Risk The year saw CIB introduce key policy changes and launch new programs and tests, in line with business growth plans to cater to the needs of the diverse customer base, following a sensible and resilient approach for a balanced risk-reward strategy. The portfolio management functions adopted rigorous portfolio monitoring techniques and a dynamic set of reports, utilizing advanced monitoring tools and tailored segmentations, to identify early warning signals and behavioral trends and ensure preemptive controls are adopted and portfolio health is preserved. Business Banking Risk CIB achieved the CBE mandated allocations of 25% and 10% of the portfolio to SME and small segment lending, respectively. The portfolio is well diversified across industries with acceptable quality. Furthermore, capabilities were enhanced through the statistical testing of the effectiveness of early warning signals to ensure preemptive measures are adopted. Non-Financial Risks Management (NFRM) CIB placed great emphasis on managing non-financial risks (NFRs), encompassing operational, third-party, cyber, and regulatory risks. The Bank implemented a holistic risk management framework that includes a comprehensive risk taxonomy describing different types of risks and a robust risk identification process to assess and mitigate non-financial risks across all lines of defense. By bolstering its non-financial risk management capabilities, the Bank aims to enhance its resilience and secure its long-term success. Operational Risk Effective management of Operational Risk is a priority for CIB, ensuring operational resilience. Operational risks are managed through a comprehensive frame- work that prioritizes early identification, mitigation, and continuous monitoring. The Operational Risk framework is designed to safeguard against potential losses. It involves structured risk assessments, stringent internal controls, and real-time monitoring, ensuring that operational risks remain within acceptable levels. Security and Technology Risks Building on the efforts to establish an indepen- dent second line of defense function for Security & Technology Risk Management (STRM), 2024 witnessed a significant enhancement to the STRM developed operating model. This new develop- ment facilitates collaboration between the first and second lines of defense and embeds the risk culture within the day-to-day operations of the IT and Security departments, enabling the deployment of different risk tools that ensure effective security and technology risk management. A comprehensive risk register was also developed and is being well governed and maintained to ensure continuous monitoring and reporting of the Bank’s security and technology risk profile and exposure. Third-Party Risk CIB continuously enhances its Third-Party Risk Management (TPRM) framework by improving risk assessments, implementing exit assessments, and focusing on outsourcing relationships. To further strengthen its TPRM culture, CIB moni- tors key performance and risk indicators, analyzes complaints, and reviews policies and procedures in line with regulatory requirements. Environmental, Social, and Governance (ESG) Risks CIB implements a robust Environmental and Social Risk Management System (ESRMS) to govern the identification and assessment process of its exposure to Environmental & Social (E&S) risks. Aligning with international best practices and regulatory develop- ments, the Bank integrates E&S risks into the credit risk assessment process of lending transactions. In 2024, a key area of focus was the formalization of an internal climate risk management framework to establish the Bank’s approach, roadmap, and guid- ance for handling such risks. The Bank continued to gradually integrate climate risks into its existing risk management processes. Additionally, climate- related risks information was disclosed in the Bank’s annual Environmental, Social, Governance, Data & Digitization (ESGDD) integrated report, providing transparency to stakeholders about CIB’s climate risk management practices. Reputation Risk CIB is committed to maintaining a strong and positive reputation. The Bank’s strong reputation risk frame- work, underpinned by a zero-tolerance approach, ensures the proactive identification, assessment, and mitigation of potential risks. By fostering a culture of integrity and ethical behavior, and by engaging transparently with stakeholders, CIB safeguards its brand and long-term sustainability. Risk Culture The commitment to a strong risk culture is a cornerstone of CIB’s risk strategy. To foster a risk-aware environ- ment, the Bank invests in comprehensive training and development initiatives, including regular training sessions, tailored learning materials, and specialized courses to equip our employees with the knowledge and skills to identify, assess, and mitigate potential risks. 128 • CIB Annual Report • 2024 2024 • CIB Annual Report • 129 Our Controls Internal Audit risks and opportunities. Furthermore, IAG fosters collaboration with various departments to ensure that risk management practices are integrated into the Bank’s strategic planning, ultimately contributing to sustainable growth and enhanced operational efficiency across all levels of the organization. 2025 Forward-Looking Strategy IAG will continue to track evolving market dynamics to fulfill its mandates and uphold strategic align- ment with CIB’s vision of transforming traditional financial services into simple, accessible solutions and driving digitalization. Additionally, IAG adds value by supporting the Bank and its subsidiaries in upholding robust governance and effective controls, all while ensuring that CIB’s strategic initiatives remain uncompromised. IAG’s activities support CIB’s objectives by identifying potential risks and opportunities. CIB’s Internal Audit Group (IAG) is an independent and objective function that provides its stake- holders 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 effectiveness of the Bank’s governance processes, risk management, and internal control systems. The initiatives undertaken by IAG throughout the year seamlessly aligned with the Bank’s strategic objectives, emphasizing the need for agility and adaptability to effectively meet the Bank’s goals. 2024 Highlights IAG continued to be strategically aligned with the Bank’s vision of growth both locally and interna- tionally. This alignment ensures that IAG’s activities support CIB’s objectives by identifying potential 130 • CIB Annual Report • 2024 2024 • CIB Annual Report • 131 Our Controls Compliance Compliance is a fundamental cornerstone of CIB, working relentlessly to remain at the forefront of compliance best practices. As it continues its trans- formation journey, CIB understands that compliance is a key enabler to safely navigate the business towards sustainable growth. Compliance Risk Management Framework The Compliance Group’s strategic objective is to manage compliance risk across the Bank, its subsid- iaries, and affiliates and continue strengthening its ability to identify, measure, monitor, control, mitigate, and report on compliance risks. The Compliance team is responsible for managing the Compliance Program, with a focus on promoting compliance culture across the Bank. CIB maintains a Compliance Program that is grounded on the following key pillars: Regulatory Compliance The Regulatory Compliance Program is translated into a set of actions and processes handled by the two arms of Regulatory Compliance, namely the Regulatory Affairs Department and the Advisory Compliance Department, both collaborating to set an end-to-end process to implement the Regulatory Compliance Program through: Regulatory Affairs The Regulatory Affairs team continued to reinforce its role as the point of contact between the Bank and the Regulator(s) as per the Contact with Regulator Policy, with focus on how the Bank manages the various types of regulatory contacts and relation- ships. It also aims to ensure that all regulatory contacts are managed in a logical, transparent, and well-coordinated manner through standardized practices, processes, and tools. The Regulatory Affairs team is also the point of communication with the CBE regarding any new or updated regulations and regulatory requirements, as well as communicating with the CBE regarding all new CIB products, services, or business initiatives to secure the needed regulatory approvals. Compliance Business Advisory The Advisory Compliance team manages the Regulatory Change Management Process in order to ensure all new or updated regulatory mandates are duly incorporated into the Bank’s policies, procedures, and operations to ensure that the Bank is fully compliant. The team also provides the needed compliance advice regarding the interpretation of the applicable regulations, how to do business in a compliant manner, and proactive action to identify and assess the compliance risk associated with the Bank’s business activities. Financial Crime CIB ensures full compliance with all local Anti-Money Laundering and Terrorism Financing (AML/CTF) laws and regulations, as well as adherence to sanc- tion requirements. Additionally, CIB is committed to adopting the recommendations of the Financial Action Task Force (FATF), as well as the standards of the Basel Committee on Banking Supervision with regards to AML/CTF. The Financial Crime Program consists of policies, procedures, and systems that enable the Bank to detect and deter financial crimes. CIB continu- ously reviews the effectiveness of its Financial Crime Risk Management Program, taking into consideration the complex and dynamic nature of financial crime risk. During 2024 and in alignment with CBE requirements, CIB worked to lay the foundation to conduct the first Enterprise-Wide Financial Crime Risk Assessment exercise that will provide a holistic view of the Financial Crime risk management framework, including CIB Kenya LTD, assist in identifying the necessary improve- ments and strengthen overall control. The Financial Crime Program is based on the following: Know Your Customer (KYC) CIB is committed to applying Know Your Customer (KYC) procedures, 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 compli- ance pre-fact approval. The Bank ensures the effective implementation of the KYC principle, enabling it to identify the ultimate beneficial owners of all customer accounts during the on-boarding process and upon any KYC update. CIB complies with the CBE’s rules and regulations with regard to record-keeping, restricting dealings with shell banks, and prohibiting the opening of anonymous or numbered accounts. Moreover, the Bank works to identify US-based individuals 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 (IRS) with the necessary information regarding their customers who are subject to this law. AML Transactions Monitoring/Staff Account Monitoring CIB has in place modern, state-of-the-art technology and systems that monitor customer transactions and identify suspicious transactions, in addition to moni- toring staff and staff relatives’ accounts to avoid misuse. The AML Transactions Monitoring System is also equipped to handle several scenarios to ensure seamless monitoring of transactions in order to promptly report suspicious transactions to the Egyptian FIU. During 2024, Compliance and IT collaborated to upgrade the AML Transactions Monitoring system to include more optimized scenarios, covering more customer behaviors and providing more efficient alerts, enabling improved transaction monitoring. Sanction Monitoring CIB implements the sanction mandates issued by the Egyptian Money Laundering Combating Unit (EMLCU), as well as the United Nations Security Council, the Office of Foreign Asset Control (OFAC), the European Union Commission, the United Kingdom, and France with regards to the sanctioned countries, territories, individuals, or entities. The Bank utilizes top-tier technology to pre-fact screen all incoming and outgoing payments and SWIFT messages to detect sanctioned individuals and entities and take the necessary actions to stop or hold dealings with such entities. This is in addition to onboarding name screening and overnight screening of the customer database to efficiently safeguard CIB from engaging in a business relationship with any sanctioned individual or entity. Anti-Bribery and Corruption CIB has a zero-tolerance policy for bribery and corruption, in line with the Bank’s ethical standards, which apply to internal and external stakeholders. CIB has established principles to identify and prevent potential bribery and corruption to protect the Bank’s integrity and reputation. Financial Crime Reporting & MIS Dedicated CIB calibers lead the development and implementation of effective FC reporting and management information systems (MIS) strategies and processes that support Compliance Management in decision-making. The team also handles the required technological upgrades and reports (inter- nally and to the regulators) on financial crime. Conduct Risk and Customer’s Rights Protection CIB’s Conduct Risk program adopts a pragmatic and proactive approach in disseminating a culture of good conduct. The Conduct Risk program encom- passes advertising and promotional materials, products, and sales process developments, as well as aftersales services. 132 • CIB Annual Report • 2024 2024 • CIB Annual Report • 133 Our Controls / Compliance The CR & CRP department also monitors the mechanism handling customer complaints in coor- dination with relevant departments, in accordance with regulatory instructions while protecting customers’ rights. CIB’s whistleblowing channels are publicly avail- able to Bank staff and customers who wish to raise concerns confidentially and anonymously. This can be done through the dedicated whistleblowing hotline, email, and portal on CIB’s official website. The Bank’s Conduct Risk management centers on treating customers fairly, protecting their rights, and positively impacting communities. This also aligns with the CBE’s instructions issued in February 2019 to clearly govern the relationship between banks and their customers throughout the customer journey. All received reports are handled independently and confidentially, while ensuring that the identity of the whistleblower is safeguarded. Investigation results are then raised directly to the Board Audit Committee to ensure that appropriate actions have been implemented. Compliance Monitoring and Testing The Compliance Monitoring and Testing team conducts an annual Bank-wide Compliance Risk Assessment (CRA) with the main objective of iden- tifying inherent compliance risks at a bank-wide level and how well regulatory obligations are met. The regular Testing Program covers core activities, in addition to more frequent risk-based or thematic monitoring activity. The Monitoring and Testing Program provides the Board and Senior Management with reasonable assurance that compliance risks are being adequately identified and managed within the Bank. Whistleblowing CIB’s confidential and anonymous whistleblowing program, “Speaking Up,” is managed by the Compliance team. The program was designed to comply with all applicable regulations. Compliance Training and Awareness Compliance culture and awareness are the only guarantee that our efforts truly materialize into sound compliance risk management across the whole organization. The Compliance Group conducts different training programs with topics addressing Financial Crime, Conduct Risk & Customers’ Rights Protection, Whistleblowing and Regulatory Compliance. The annual training plan covers the Board of Directors, Senior Management, Bank staff, outsourced employees, and third-party companies’ employees. The training programs were also extended to Compliance representatives within the Bank’s branches and departments, as well as the Bank’s subsidiaries, providing the proper guidance on compliance-related training programs provided by CIB Kenya LTD and CIFC to their employees. 134 • CIB Annual Report • 2024 2024 • CIB Annual Report • 135 06• ESG 136 • CIB Annual Report • 2024 2024 • CIB Annual Report • 137 CIB’s strong sustainability governance structure ensures the seamless integration of ESG principles into its operations and business activities. ESG Sustainable Finance Sustainable Finance: The Driver Behind CIB’s Value Creation Model Since 2013, CIB has emerged as a regional leader and trendsetter in sustainable finance, committed to driving the transition to a sustainable future. The Bank has pioneered innovative services, products, and programs that address the needs of the environ- ment and society, fostering sustainable economic growth. These efforts are driven by CIB’s Sustainable Finance Policy and Strategy, which aligns with Egypt Vision 2030, the country’s National Climate Change Strategy 2050, and the United Nations Sustainable Development Goals (SDGs). 2024 Highlights Greening Our Portfolio CIB is keen on greening its lending portfolio, whereby the total exposure of environmental and social impact projects, using the Central Bank of Egypt definition, has increased by 128% in December 2024 versus December 2023. Access to Capital In collaboration with the European Bank for Reconstruction and Development (EBRD), CIB secured a USD 50 million Green Economy Financing Facility (GEFF II), which includes USD 7.5 million in co-financing from the Green Climate Fund (GCF). This financing aims to support green projects and promote environmental sustainability. Additionally, CIB signed the EBRD Women in Business loan agree- ment worth USD 10 million, dedicated to empowering women-led small and medium enterprises (SMEs) and fostering women’s entrepreneurship in Egypt. System Transition - ESG Integration in Operations On the environmental, social, and governance (ESG) operational front, CIB integrated ESG practices into its standard operating procedures (SOPs). The Bank conducted targeted capacity- building sessions for its staff and undertook a comprehensive evaluation of its operations, iden- tifying 18 key functions critical to the successful integration of ESG principles into the SOPs. Integrated Climate Risk Management in the Bank Risk Framework CIB continues to strengthen its climate risk management capabilities by prioritizing sectors, portfolios, and counterparties most vulnerable to climate impacts. The Bank employs a qualitative heatmap and risk-scoring approach to assess its exposure to both transition and physical risks. Transition Planning and Decarbonization As part of its sectoral decarbonization strategy, CIB has published baseline emissions data for power generation and real estate – two of the most challenging sectors to decarbonize – and has set clear emissions reduction targets. By collaborating closely with clients, and offering out-of-the-box innovative solutions and services, the Bank aims to facilitate a smooth transition to a low-carbon economy. Engaging Through the Sustainability Strategic Network (SSN) CIB’s Sustainability Strategic Network (SSN), an internal bottom-up sustainability governance approach, plays a vital role in fostering engagement with global sustainability frameworks and industry leaders. The SSN has organized sector-specific transi- tion pathway sessions and expert talks to accelerate the Bank’s sustainability agenda. These initiatives aim to mitigate risks and maximize opportunities for transition finance across CIB’s operations. CIB ranked 9th on ‘2024 Fortune Change the World’ list CIB’s efforts have earned it global recognition, with the Bank ranked ninth on Fortune’s Annual “Change the World” list for 2024. This prestigious acknowl- edgment underscores CIB’s dedication to creating a significant positive impact on society and the environment, while generating business revenue and profits and making a lasting difference. New Value Proposition for SMEs in Egypt Recognizing the importance of making innova- tive and accessible sustainable finance solutions available to the local market, CIB accelerated its efforts in 2024 to promote responsible growth. The Bank introduced two flagship sustainable finance programs focused on resource efficiency and renewable energy. These initiatives are complemented by tailored support for SMEs in the food & beverage, textiles, and plastics sectors. Looking ahead, CIB is working to expand its reach by targeting additional sectors and enhancing their capacity to generate long-term value. Building on the Sustainable Finance Institutional Pillars Since 2020, CIB has implemented its proprietary framework, the “Sustainable Finance Institutional Pillars,” to guide its transformation into a holistic, sustainability-driven organization. This framework, which encompasses six interconnected pillars— Sustainability Governance, Sustainable Finance Policy & Frameworks, Sustainability Management Systems, Sustainable Finance Strategy, Sustainability Advocacy & Stakeholder Relations, and Sustainable Finance Innovation—ensures that the Bank delivers value to its stakeholders while driving meaningful progress in sustainability. Sustainability Governance Sustainable Finance Strategy Sustainability Management Systems Sustainable Finance Policy Frameworks & Architecture Sustainability Advocacy & Stakeholder Engagement Sustainable Finance Innovation 1. Sustainability Governance CIB adheres to regulatory guidelines on Sustainable Finance, including the Central Bank of Egypt (CBE) Sustainable Finance Circulars. These include Circular #737 (November 3, 2022) and the six Sustainable Finance Guiding Principles outlined in Circular #247 (July 18, 2021). Compliance extends to mandated governance structures, policies, standard operating procedures (SOPs), and robust disclosure and reporting mecha- nisms. As a publicly listed entity on the Egyptian Stock Exchange, CIB also fulfills the Financial Regulatory Authority’s (FRA) ESG and TCFD reporting require- ments (Resolution #108 of July 5, 2021). CIB’s strong sustainability governance structure ensures the seamless integration of ESG principles into its operations and business activities. The BOD over- sight is ensured by the Board Sustainability Committee (BSC), Senior Management alignment is implemented through the Sustainable Finance Steering Committee (SFSC), and the executive leadership is driven by the Chief Sustainability Officer, who heads the Sustainable Finance Department. This top-down governance approach is complemented by the bottom-up cross- functional Sustainability Strategic Network (SSN), creating a holistic governance framework. Board Sustainability Committee (BSC) Delegated by the Board of Directors, the BSC ensures that sustainable finance remains a priority on CIB’s strategic agenda. The committee maintains active engagement with sustainability matters across the Bank. In 2024, the BSC convened five times to provide guidance on strategic sustain- ability issues and drive the Bank’s transition toward a greener future. Sustainable Finance Steering Committee (SFSC) Thi s cro ss - fun c tion al c ommitt e e in clu d e s Executive Management representation and plays a pivotal role in empowering the Sustainable Finance Department. The SFSC ensures align- ment with CIB’s business needs and international best practices. Throughout 2024, the SFSC met bi-monthly to oversee the implementation of ESG priorities and the Bank’s sustainability strategy. Sustainability Strategic Network (SSN) Relaunched in 2024, the SSN is an innovative governance component that integrates ESG principles across the Bank through a bottom-up approach. This multi-disciplinary, staff-focused program empowers representatives from diverse departments to embed sustainability within their functions. By fostering a culture of sustainability and innovation, the SSN contributes to sustainable growth and value creation at CIB. 138 • CIB Annual Report • 2024 2024 • CIB Annual Report • 139 ESG / Sustainable Finance Sustainable Finance Department As the focal unit for sustainability integration, the department ensures that ESG principles are embedded in CIB’s systems, strategy, and culture to create value for its stakeholders. It oversees the mainstreaming of sustainability across all Bank functions, driving responsible growth and opera- tional excellence. 3. Sustainable Finance Strategy CIB’s Sustainable Finance Strategy, which is part of the Bank’s four-year corporate strategy, focuses on Risk Management, Revenue Generation, Ecological Footprint, and Reputation. Accordingly, CIB introduced eight cross-functional Workstreams to facilitate its implementation. The Workstreams have enabled the Bank to fulfill various milestones across its lending and investment portfolio, operations, risk management, staff capacity building, and advocacy. 2. Sustainable Finance Policy and Frameworks Architecture Sustainable Finance Policy CIB’s Sustainable Finance Policy outlines its unwavering commitm ent to syst ematically integrating sustainable finance throughout its operations. This policy establishes the institutional requirements and governance structures necessary for effective implementation. Reviewed annually, the policy reflects the latest local and global ESG trends and developments. It is publicly accessible on CIB’s official website, ensuring transparency and accountability. Sustainable Finance Frameworks Architecture CIB actively engages with a wide range of global sustainable finance frameworks and standard-setting bodies, which support its transformation journey. By aligning with global ESG standards these frameworks help CIB foster sustainable business practices and strengthens its commitment to responsible finance. The Bank is a core founding signatory of the UNEP-FI Principles for Responsible Banking (PRB), the Net Zero Banking Alliance (NZBA), and the Commitment to Financial Health & Inclusion. These frameworks enable CIB to: • Drive the advancement of transition finance and planning. • Align its sustainability strategy with international best practices. • Leverage global standards to enhance its sustain- able finance instruments, products, and initiatives. Through active participation in these frameworks and initiatives, CIB demonstrates its leadership in advancing sustainable finance and its dedication to achieving a resilient and inclusive economy. Financial Health & Inclusion Risk/ESRMS Enhanced risk management Portfolio ESG portfolio assessment and enhancement EESG Reporting Transparent reporting on ESG measures ESG Indices Global sustainability ratings and indices Science-Based Approaches Streamlined and globally accepted scenario-setting Workstream Name Workstream Mandate Risk Management Leading CIB in adopting evolving E&S and Climate Risk Frameworks according to international best practices. Corporate Banking & Global Customer Relations Ensuring CIB is progressing in leading Egypt’s sustainable develop- ment transition and simulating revenue generation and growth. Retail & Financial Inclusion Introducing ESG dimensions in Retail while ensuring financial empowerment of the marginalized & untapped segments & sectors. Direct Investment Integrating an ESG lens into the Bank’s Direct Investments Group portfolio and investing in sustainable businesses. Ecological Footprint Aligning to national and international directions while striving to become a carbon neutral bank through implementing applicable measures on the Bank’s portfolio as well as internal operations. Branding & Advocacy Integrating and associating sustainability with CIB’s brand while advocating both internally and externally for enacting ESG prin- ciples. Education Providing up-to-date education to champion for sustainable finance and ESG principles both internally and externally. ESG Data Digitization Advancing Bank automation tools specifically with focus on ESG data ecosystems and sustainability measures. 140 • CIB Annual Report • 2024 2024 • CIB Annual Report • 141 ESG / Sustainable Finance 4. Sustainability Management Systems CIB is committed to a multi-faceted sustainability system transformation, embedding sustainability into its operations, including policies, standard operating procedures (SOPs), capacity building, data monitoring, and disclosures. This integrated approach reinforces the Bank’s ability to drive sustainable growth and create long-term value. IFC Trust Loan In June 2023, CIB signed a USD 100 million Green Trust Loan with IFC for Climate Finance, that supports financing for climate projects. These include green building, energy efficiency, water and waste treatment, water efficiency, and renewable energy projects. The program builds on the success of CIB’s Green Bond program under the umbrella of climate finance. Environmental & Social Risk Management System (ESRM) C I B a d o p t e d t h e I n t e r n a t i o n a l F i n a n c e Corporation’s (IFC) Performance Standards in 2016 and the European Bank for Reconstruction and Development’s (EBRD) Social and Environmental Standards in 2017. The ESRM system enables the Bank to identify and manage environmental and social (E&S) risks in its operations and financing decisions. By addressing these risks, the system enhances the Bank’s resilience and innovation while equipping clients with tools and products to transi- tion to more responsible business models. Green Economy Financing Facility (GEFF) Program In partnership with EBRD, CIB signed a USD 50 million GEFF II agreement, with USD 7.5 million co-financing from the Green Climate Fund (GCF). This loan supports climate change mitigation and adaptation technologies across various sectors, including agribusiness, logistics, and ICT. Additionally, the program offers investment incentive grants of up to €5.2 million to promote the adoption of high-performing green technologies and solutions by local MSMEs as well as support the development of resilient supply chains for green equipment. Sustainability System Integration In January 2024, CIB launched an ESG integration process to incorporate ESG factors into 18 identified Bank functions. This ongoing process ensures that ESG considerations are embedded into all relevant operations and decision-making processes, driving the Bank’s sustainability agenda forward. Collaboration with Development Finance Institutions (DFIs) Green Bond Program In 2021, CIB became the first institution in Egypt to issue a corporate Green Bond, amounting to USD 100 million (revolving) to facilitate climate finance for sustainable projects, in collaboration with the IFC. The proceeds have funded 22 climate-related projects, span- ning renewable energy efficiency, green buildings, water and wastewater, and energy management systems. The program exceeded 100% coverage of Green Bond proceeds, reaching 171% of total allocation. CIB Availed Green Building Certification (EDGE) CIB facilitates green building certifications for clients, offering a 2.8% cash-back incentive. Prominent real estate developers, including New Giza and SODIC, have achieved certifications through this program, underscoring its success in promoting sustainable real estate development. Women in Business Program (WIB) This EBRD Women in Business loan agreement was signed with EBRD to on-lend eligible women led small and medium enterprises to promote women entre- preneurship in Egypt and more broadly, women’s participation in business by helping women-led SMEs in Egypt, providing access to finance, know-how and non-financial business development services. By empowering women entrepreneurs, the program advances inclusive economic participation. GIZ Cooperation agreement for technical assistance under SME’s Through its partnership with GIZ under the “Sustaining SMEs” program, CIB sustainable finance product development focused on resource efficiency and renewable energy. CIB launched dedicated sustainable finance facilities tailored for the specific needs of SMEs with a focus on the Textiles, Food & Beverage, and Plastics sectors, leveraging capacity building and technical assistance provided by the GIZ experts. CIB also provided tailored support for clients to grow their businesses through advising on and financing sustainable finance projects with a focus on resource efficiency and renewable energy projects. 2.8% Cashback incentives when financing certified green building projects (terms & conditions apply). CIB is committed to a multi-faceted sustainability system transformation, embedding sustainability into every aspect of its operations Client Transition Support - Transition Planning and Decarbonization Pathways CIB is actively assessing the carbon impacts of its portfolio. The Bank has published baseline emis- sions for power generation and real estate sectors and established decarbonization targets. Through its Sustaining Sectors Program, CIB provides clients with capacity building, sustainable finance tools, technical assistance, and certification opportunities to enhance energy efficiency and sustain their long-term growth. Energy Walkthrough Audits In 2024, CIB’s sustainability team has successfully conducted energy walkthrough audits for 20 clients across various sectors, including food and beverage, textiles, pharmaceuticals, and tourism. These audits will continue to expand in the coming years. Green Building Certification Success Stories NEWGIZA University : Supported by CIB, the university achieved EDGE Advanced Certification. This was a milestone in sustainable develop- ment. The university’s efforts, supported by CIB’s Sustaining Sectors program, resulted in significant energy, water, and raw materials savings. This milestone reflects CIB’s dedication to sustainable development. SODIC Partnership: CIB partnered with SODIC to certify Egypt’s first EDGE Advanced business park, EDNC, in New Cairo. The project achieved reduc- tions in energy consumption (40%), water usage (33%), and embodied energy in materials (22%). 142 • CIB Annual Report • 2024 2024 • CIB Annual Report • 143 6. Sustainable Finance Innovation Reporting Innovation CIB’s Second Environment, Social, Governance, Data, and Digitization (ESGDD) Report 2023: CIB published its second ESGDD Report for 2023, titled “Driving Value Creation.” The report consolidates all of CIB’s sustainability reporting requirements (including GRI, SASB, UNGC, PRB, TCFD, NZBA, EP and CDP as disclosure platforms) and reflects the Bank’s continuous commitment to evolving its disclosure practices. The report aligns with the Integrated Reporting Framework’s “The Stock and Flow of Capital” concept, illustrating how effectively processing five interconnected capitals into CIB’s business model contributes to its capacity and signif- icantly broadening our impact reporting. The report also includes the Bank’s ecological footprint data. 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. Since 2018, CIB has made considerable progress in improving its own footprint by recording a 13% reduction in scopes 1 and 2 in 2023 compared to 2018 (baseline year). Moreover, it allows us to address the threat of climate change and showcases the Bank’s efforts to minimize the impact of its operations across three scopes (carbon, land, and water). Sustainability Staff Initiatives CIB’s Business Banking Credit Administration Voluntary Sustainable Finance Initiative: The busi- ness banking credit administration department undertook an innovative initiative to integrate sustainable practices across its daily operations. This voluntary and innovative initiative reduced paper consumption, enhanced digital systems, and resulted in cost reductions for the Bank. ESG Data Digitization Platform CIB is developing a multipurpose platform that aims to address ESG data management and reporting. Sustainable Finance Programs and Offerings Recognizing the crucial role of financial institu- tions, CIB has designed multiple sustainable finance products and programs to support corpo- rates and SMEs leverage Sustainability, to advance their growth while driving system transformation towards a circular economy. A Diversified Portfolio for Corporates CIB is in the process of developing 12 sustainable finance offerings for its clients for the following categories, supporting adaptation and mitigation projects in the local market. ESG / Sustainable Finance Reporting and Disclosures Principles for Responsible Banking (PRB) 2023 Report: CIB published its fourth self-assessment report on the PRB’s six reporting principles. This year’s report highlights CIB’s progress on Financial Health and Inclusion Commitment (CFHI) and portfolio-relevant sustainability impacts, reaffirming its dedication to transparency and accountability. ESG Ratings and Recognitions ESG Awards obtained in 2024 CIB is the proud recipient of a number of reputable local and global awards, a reflection of our efforts in advancing sustainability agendas and sustainable finance adoption. • Ranked 9th on Fortune’s Change the World List • Best Bank for Sustainable Financing in Emerging Markets by Global Finance • Best Sustainable Finance Bank by Global Finance • Best Bank for ESG in Egypt by Euromoney • Excellence in Sustainable Banking Award at the 22nd Edition of the Finnovex North Africa Summit 2024 5. Sustainability Advocacy and Stakeholder Engagement Advocacy and stakeholder engagement are integral to embedding sustainability into CIB’s brand and operations. Through education, capacity building, and awareness initiatives, CIB fosters a culture of sustainability internally and externally. Staff Engagement and Awareness The Sustainability Strategic Network (SSN) equips staff with sector-specific knowledge through expert talks, webinars, and access to global sustainability literature. Employees participate in working groups led by international organizations such as GFANZ, UNEP-FI’s Principles for Responsible Banking, and the Institute of International Finance (IIF). I n c o l l a b o r a t i o n w i t h t h e L e a r n i n g a n d Development (L&D) function, the Sustainable Finance Department has introduced specialized training on ESRM, climate risk, ESG integration, and sustainable finance products. This ensures that CIB staff are equipped with the knowledge and skills to drive sustainability across all operations. External Stakeholder Engagement CIB Partnership with the American University in Cairo (AUC): Through its Professorship endow- ment, CIB collaborates with AUC to enhance the sustainable finance ecosystem. AUC launched a new Sustainable Finance course for graduate students, and its El-Khazindar Business Research and Case Center (KCC) developed a case study on CIB’s sustain- able finance journey. This case study was presented at the AUC International Case Competition and is planned for use in the Sustainable Finance Course and international publications. Global Engagement and Advocacy CIB actively participates in global and regional sustain- ability events and working groups, fostering dialogue and advancing sustainability objectives. Key engage- ments include: • 2024 Forum on Scaling Sustainable Finance: CIB contributed to the panel session “Defining an African Vision for Sustainable Finance” at this South Africa-based forum organized by the Banking Association South Africa (BASA) and IFC. • Third Annual Wolfsberg Forum for Sustainable Finance (WFSF): An initiative by the Institute of International Finance (IIF) supported by UBS in Switzerland, providing a platform for global finan- cial institutions to discuss sustainability challenges. 144 • CIB Annual Report • 2024 2024 • CIB Annual Report • 145 ESG Corporate Governance In an increasingly complex and dynamic finan- cial landscape, strong corporate governance is crucial for preserving the integrity and trust that are foundational to the organization. Effective governance enhances decision-making processes and reinforces a commitment to transparency, accountability, and ethical conduct. Strong governance is vital not only for success, but also for fulfilling obligations to stakeholders. By prioritizing these principles, a culture of integrity is fostered, supporting strategic objectives and driving long-term value for all parties involved. CIB is committed to upholding the highest standards of corporate governance and sound governance principles that not only comply with regulatory requirements but also reflect best practices. This commitment aims to enhance shareholder value and maintain the trust of all stakeholders. CIB has consistently demonstrated unwavering commit- ment to governance best practices in recognition of their significance, enabling the Bank to establish a solid foundation for responsible and successful operations in the financial industry. This approach reassures stakeholders that CIB’s Board and management act in their best interests. The Bank’s efforts in practicing good governance serve as a notable example for the banking sector, setting a high standard for others to emulate through a comprehensive Governance Framework, diverse Board composition, sound Board commit- tees, skilled management team, effective internal control processes, and transparent communica- tions and reporting. CIB is consistently committed to upholding key governance pillars by fulfilling the following: • Ensuring that all stakeholders have access to important information regarding the Bank’s operations, decisions, and financial performance • Establishing clear responsibilities and expecta- tions for the Board of Directors and management, holding their actions and decisions to set guidelines • Treating all stakeholders equitably, including shareholders, employees, customers, and the community, ensuring that their rights are respected and upheld • Emphasizing the ethical obligations of the orga- nization to conduct business in a way that is socially responsible and contributes positively to society The Bank has developed and implemented a comprehensive range of policies and procedures designed to help ensure that it is well managed, with effective oversight and controls. These measures guarantee that governance practices are consistently applied at all levels of the organiza- tion, promoting transparency and integrity. This commitment reinforces the Bank’s dedication to maintaining a strong control environment and fostering sound governance practices. There is a clear distinction between the roles and responsibilities of the non-executive Chairperson and the Bank`s CEO. This separation enhances oversight, helps prevent the concentration of power in one indi- vidual, promoting a more balanced decision-making process within the Board. It also boosts stakeholder confidence by demonstrating a commitment to strong governance and risk management practices. The Non-Executive Chairperson is responsible among other matters for ensuring the overall effec- tive functioning of the Board and its committees, making recommendations regarding the effective- ness of the Board as a whole, managing conflicts and fostering a collaborative environment. These responsibilities aim to maintain a strong governance culture and support a rigorous regulatory compli- ance framework. Board of Directors The Board is collectively responsible for the long-term success of the Bank, focusing on creating stakeholder value and providing a solid foundation for effective governance. This includes setting the Bank’s strategic objectives and overseeing their implementation, providing oversight of senior management, and ensuring the effectiveness of the Bank’s internal control system and risk management to safeguard its reputation and long-term sustainability. The majority of the Board members are non-executive directors, which is essential for providing unbiased judgment and oversight. This majority serves as a cornerstone of effective governance, ensuring that decisions are made in the best interest of the organi- zation without undue influence from management. It is also crucial for maintaining the integrity and objectivity of the Board’s decisions and actions. Diversity and inclusion are embedded within CIB’s culture. The Board remains committed to fostering an inclusive environment that recognizes the importance of gender, ethnicity, skills, experience and personal attri- butes diversity, recognizing the crucial benefits gained from welcoming different perspectives. According to the latest Board structure, female representation on CIB’s Board is at 18%, while independent directors account for 46%. Collectively, the Board possesses the required experience and knowledge to effectively discharge its duties and support succession planning discussions across various domains, including Banking, Finance, Risk, , Digital Technology, Corporate Social Responsibility/ESG and Global Business Experience. Current CIB gender and board composition diversity Gender Diversity Board Composition Male 82% Female 18% Executive .................................. 27% Independent ............................. 46% Non-Executive .......................... 27% The Board and its Directors annually survey the effectiveness and contribution of the Board and its committees. The evaluation of the Board and Board committees is undertaken in accordance with their respective charters. Additionally, the Board performs an annual self-assessment of individual members to ensure effective contribution. Furthermore, CIB’s Board of Directors has engaged an independent external consultant to carry out a thorough evalu- ation of the Board’s performance, effectiveness, and adherence to best governance practices. 146 • CIB Annual Report • 2024 2024 • CIB Annual Report • 147 ESG / Corporate Governance Board of Directors composition Serial Board Member Name (Executive / Non- Executive / Independent) Joining Date Capacity 1 2 3 4 5 6 7 8 9 10 11 Ms. Neveen Sabbour Independent Apr-23 Experienced Member Mr. Hisham Ezz El-Arab Executive Nov-22 Experienced Member Mr. Paresh Sukthankar Independent Jul-19 Experienced Member Mr. Rajeev Kakar Independent Jul-19 Experienced Member Mr. Sherif Samy Independent Mar-20 Experienced Member Eng. Hoda Mansour Independent Apr-23 Experienced Member Mr. Fadhel Al Ali Non-Executive May-22 Mr. Aziz Moolji Non-Executive May-22 Representing the interests of Alpha Oryx Ltd. (Lunate Legacy IV LP) Mr. Jawaid Mirza Non-Executive Aug-23 Experienced Member Mr. Amr El Ganainy Executive Nov-24 Experienced Member Mr. Islam Zekry Executive Nov-24 Experienced Member Changes to the Board of Directors during 2024 • Resignation of Mr. Jay-Michael Baslow, Non-Executive Board Member for personal reasons. • Resignation of Mr. Hussein Mohamed Maged Hussein Abaza, CEO and Managing Director, ending his service at the Bank. Effective November 5th 2024, the following changes also took place: • Mr. Hisham Ezz-Al Arab transitioned from his position as Non-Executive Chairman to assume the role of Chief Executive Officer. • Mrs. Neveen Sabbour, Non-Executive Board Member, was elected and appointed as Independent Chair of the Board. • Mr. Amr El-Ganainy, Deputy CEO, joined the Board of Directors as Executive Board Member. • Mr. Islam Zekry, Group CFO, joined the Board of Directors as Executive Board Member. Board Committees The Board of Directors has established six standing committees in compliance with the Banks’ corporate governance regulations issued by the CBE, relevant applicable laws, and international best practices. These committees assist the Board of Directors in carrying out its responsibilities, enhancing the efficiency of board operations, and strengthening the oversight function and serve as a useful means of ensuring that the Board gives appropriate consideration to all matters for which it is responsible and collectively provide an integrated view of risks at the enterprise level The committees submit their recommendations to the Board of Directors to take the necessary deci- sions. Each Board Committee is governed by a charter that clearly outlines its objectives, scope, responsi- bilities, attendance quorum requirements, and voting procedures. All Board Committees are chaired by non-executive directors, who brief the Board on major points raised by their respective committee Board Audit Committee The committee was established to provide over- sight over the integrity of the Bank’s financial reporting process, the effectiveness of the Bank’s internal control systems, and its compliance with all statutory requirements. It is also responsible for overseeing and reviewing the performance of the Bank’s Internal Audit and Compliance func- tions, as well as monitoring 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. The Committee also regularly discusses Audit and Compliance reports for various functions and CIB Kenya. It also has oversight on the whistleblowing process and its outcome. Additionally, in line with the Bank’s dedication to customer service, the committee reviews complaint trends and their root causes. 2024 Audit Committee Highlights The Audit Committee reviewed the interim and end- of-year financial statements and their footnotes, and discussed them with the relevant Bank officers and External Auditors, receiving assurances that the financial statements fairly presented CIB’s financial position and comply with the regulatory (CBE and FRA) directives and reporting standards. This is in addition to the 2023 IFRS statements. The Audit Committee monitored the effectiveness of internal controls and discussed audit engagement reports addressing measures taken to address identified deficiencies. The committee also discussed the proposal for the fee agreement with the External Auditors for FY24 and approved non-audit related assignments. It regularly monitored the human resources capabilities and skill development within the Internal Audit area and discussed External Quality assurance report and outcome over Internal Audit Function. The Committee discussed outcome of compliance monitoring and testing within the Bank, followed up on financial crimes monitoring and key indicators, it followed up on adoption of regulatory directives and reviewed CBE inspection outcome and management response to the resulting observations. It reviewed and amended its charter and compliance related policies. It also monitored the handling of whistleblowing issues. The Committee discussed and monitored the Internal Audit and Compliance functions of CIB Kenya. The Committee met six times in 2024 Chair: Mr. Sherif Samy Members: Mr. Paresh Sukthankar and Mr. Jawaid Mirza Board Risk Committee The Risk Committee assists the Board in carrying out its duties related to Risk Management oversight, concurring on all Risk Policies. 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. The Risk Committee is composed of at least three of the Board’s members, with the majority being Non-Executive Directors, including the Committee Chairperson. Committee members are appointed by the BoD at its first meeting following its election for a new term in the General Shareholder’s Meeting. 2024 Risk Committee Highlights During 2024, the Risk Committee focused on the finan- cial and operational challenges arising from the ongoing macroeconomic uncertainty and geopolitical tensions, overseeing management’s proactive approach. The Committee received regular updates on Credit Risk, discussed and approved the expected credit loss. The Committee considered assessments of the potential impacts of inflation and the evolving interest rate environment on consumer spending and affordability, to ensure the consumer and business banking portfolios were appropriately positioned. The Committee discussed and approved the ICAAP and the Recovery Plan prior to its submission to the CBE. The Committee also received regular reporting on key Operational Risk indicators and was briefed by management on a number of operational risks topics. The Committee reviewed and discussed regular updates on Model risk, Security & Technology Risks, Reputation Risk, Environmental, Social, and Governance Risk. The Committee met ten times in 2024 Chair: Mr. Rajeev Kakar Members: Mr. Fadhel Al Ali and Ms. Neveen Sabbour Board Governance and Nomination Committee The Governance and Nomination Committee plays a crucial role in the Bank’s commitment to uphold high corporate governance standards that are commen- surate with its size and complexity. The committee is tasked with reviewing the Bank’s ethical standards, ensuring that these principles guide the ongoing activities of the Bank. It is responsible for overseeing the implementation of strategic policies and proce- dures by senior management, aimed at fostering a culture of integrity and professionalism. Additionally, 148 • CIB Annual Report • 2024 2024 • CIB Annual Report • 149 ESG / Corporate Governance the committee ensures that mechanisms are in place to identify, prevent, manage, and disclose potential conflicts of interest arising from the Bank’s diverse operations. Through high-level oversight of governance policies and structures, the committee ensures that the Bank conducts its affairs ethically and aligns with the Board’s policies. It also monitors compliance with the Bank’s code of conduct, which governs the behavior of directors, officers, and employees. Regular evaluations of corporate governance practices, review of contin- uous disclosure documents, and recommendations for changes to board committee charters are also within its purview. Furthermore, the committee establishes criteria for selecting board members, periodically reviews the size of the Board, and suggests appropriate adjustments to enhance governance effectiveness. 2024 Governance and Nomination Committee Highlights Throughout 2024, the Governance and Nomination Committee played a pivotal role in reinforcing effec- tive corporate governance practices at the Bank. The committee diligently oversaw the nomination process for the board of directors, ensuring that transparency, accountability, and ethical conduct remained at the forefront of our operations. By conducting periodic reviews of the Bank’s governance framework, the committee provided valuable insights and advice to the board on governance matters, facilitating optimal decision-making and adherence to international best practices. As key priority this year was the perfor- mance evaluation of the board, and the committee successfully onboarded an external international consultant for this purpose, marking a significant milestone as CIB became one of the first banks in Egypt to implement such an initiative. This strategic move underscores our commitment to continuous improvement and excellence in governance. The Committee met six times in 2024 Chair: Mr. Fadhel AlAli Members: Mr. Rajeev Kakar and Ms. Neveen Sabbour Board Operations and Technology Committee The Operations and Technology Committee assists the Board of Directors in overseeing operational and technological initiatives to ensure they align with the Bank’s overall strategic objectives. The Committee plays a key role in driving operational efficiency, enhancing competitiveness, and mitigating risks by streamlining processes, optimizing resources, and supporting the Bank’s commitment to delivering value to stakeholders. Emphasizing the adoption of industry-leading, cost- effective practices, the committee contributes to the Bank’s resilience, with a focus on developing robust systems capable of maintaining continuity amid both external and internal disruptions. 2024 Operations and Technology Committee Highlights In 2024, the Operations and Technology Committee sustained its oversight of strategic projects initiated in 2023, ensuring alignment of objectives, direction, and budgets with the Bank’s broader strategic goals. This role was pivotal in maintaining project momentum and delivering measurable outcomes. Through a thorough review of operational and technological strategies, projects were assessed for strategic fit, best practices, and competitive positioning, supporting decision-making and emphasizing initiatives that maximize returns and enhance competitiveness. Under the Committee’s guidance, CIB launched several initiatives to elevate the customer experience and enhance service delivery. A notable achievement was the successful deployment of a new retail mobile banking application, designed to provide a seamless, intuitive, and secure digital experience. This launch demonstrates the Bank’s commitment to meeting evolving customer needs in the digital era. The Committee also prioritized strengthening CIB’s cybersecurity framework. Key efforts included enhancing threat detection capabilities, bolstering incident response protocols, and ensuring regulatory compliance. This proactive stance has fortified the Bank’s ability to anticipate and respond to cyber threats, protecting customer data and organizational assets. Furthermore, the committee maintained a rigorous focus on managing critical security and technology risks. A comprehensive review of outstanding audit issues in both operational and technology domains promoted accountability and continuous improvement, reinforcing the Bank’s control envi- ronment and advancing risk management practices throughout the organization. These initiatives underscore the Operations and Technology Committee’s commitment to supporting the Bank’s strategic objectives and building a resilient, forward-looking operational and technological foundation. The Committee met six times in 2024 Chair: Mr. Jawaid Mirza Members: Mr. Sherif Samy and Eng. Hoda Mansour processes are in place and that ESG risks and oppor- tunities are identified and managed effectively and in a timely manner. Board Compensation Committee The Compensation Committee is responsible for recommending appropriate compensation levels for the Board of Directors, the Bank’s executive officers, and key personnel, based on their annual perfor- mance evaluations in alignment with corporate goals and objectives. Additionally, the committee annually reviews the Bank’s competitive position to ensure it can attract and retain top talent 2024 Compensation Committee Highlights In 2024, the Compensation Committee evaluated the performance of Management Committee members and the CEO’s direct reports for the year 2023, and subsequently recommended appropriate compensation. The committee also reviewed and approved the Bank’s overall variable compen- sation guidelines for 2023. The Salary Review methodology and guidelines were presented to the committee for approval, and a summary of the 2023 performance management was provided to illustrate the performance rating distribution approach adopted by CIB during 2023. The Committee met five times in 2024 Chair: Ms. Neveen Sabbour Members: Mr. Paresh Sukthankar and Mr. Aziz Moolji Board Sustainability Committee Sustainability governance is a key pillar for CIB, with the Board Sustainability Committee (BSC) serving as the highest governing body within the ESG governance framework. The BSC provides strategic guidance on Environmental, Social, and Governance (ESG) matters, ensuring the effective integration of ESG practices across the Bank’s operations. It also enforces compliance with regu- latory requirements in alignment with both global and regional ESG frameworks. The BSC plays a key role in shaping the Bank’s Sustainable Finance Policy, Frameworks, and Strategy, ensuring that their implementation aligns with regulatory mandates, stakeholders’ interests, and the evolving landscape of technology trends. The committee oversees the entire ESG governance structure, in alignment with the Board of Directors and its committees, to ensure robust internal control Furthermore, the BSC ensures that the Bank adopts a transparent sustainability disclosure strategy, fostering accountability to its stakeholders, including regulators, shareholders, investors, and creditors. The committee also drives both internal and external strategic sustain- ability advocacy, promoting capacity building among employees, clients, and the broader ecosystem. 2024 Board Sustainability Committee Highlights The BSC has been pivotal in advancing the sustainable finance agenda at CIB, ensuring that sustainability drives value creation and resilience for the Bank’s stakeholders. In its quarterly meetings, the Committee collaborated with the Sustainable Finance Department and other key functions, providing strategic oversight on critical ESG issues to drive business growth. These included integrating ESG practices into CIB’s opera- tions, establishing a Climate Change Governance structure in line with TCFD recommendations, ensuring compliance with ESG regulations, and promoting transparent sustainability reporting. The Committee also worked to embed ESG principles into the Bank’s Standard Operating Procedures (SOPs) and aligned its Environmental, Social, and Risk Management Systems (ESRMS) with international standards such as those of the IFC, EBRD, and EP. It integrates gender equality, anti-harassment practices, and a safe work environment into the Bank’s SOPs, in line with the Bank’s Sustainable Finance Policy. Additionally, the BSC is actively engaged on decar- bonizing CIB’s portfolio, enhancing sustainability advocacy, and increasing staff engagement through ESG education. It fostered strategic partnerships and contributed to the development of an innovative ESG Data Platform, positioning the Bank as a leader in sustainable finance The Committee met five times in 2024 Chair: Eng. Hoda Mansour Members: Mr. Sherif Samy and Mr. Aziz Moolji External Auditor Based on the Audit Committee’s statutes, the Audit Committee proposes the appointment of two External Auditors to the Bank’s Board of Directors, to be 150 • CIB Annual Report • 2024 2024 • CIB Annual Report • 151 ESG / Corporate Governance 18% Female representation on the Board of Directors. The Board remains committed to fostering an inclusive environment. 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 London Stock Exchange (LSE). Nominated External Auditors should be CBE-listed, taking into consideration their selection from reputable and competent firms, in addition to being registered with the FRA. This is to ensure their expertise, 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, exam- ining 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 performing their work and oversees the coordination between External Auditors and the Internal Audit Group. Moreover, it ensures that there are no restrictions 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. Furthermore, 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 To ensure the External Auditors’ independence, 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 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 152 • CIB Annual Report • 2024 2024 • CIB Annual Report • 153 ESG Social Development The CIB Foundation The CIB Foundation is committed to supporting underprivileged children by extending quality health- care to those unable to access it. Its efforts include donations and monitoring projects’ impact. In addi- tion 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. New Projects 2024 Mabara Masr Al Kadima Hospital Building on the CIB Foundation’s essential role in supporting children with critical heart diseases, the Board approved providing Mabara Masr Al Kadima Hospital with EGP 15 million to fund medical equip- ment needed for the hospital’s Pediatric Cardiology Unit. The project aims to enable the hospital to perform the necessary interventions for those with suspected cardiac anomalies and rheumatic heart diseases through cardiac catheterization. The project is expected to serve 2150 children. Outfitting a Pediatric Bone Marrow Transplant unit - Ain Shams University Children’s Hospital Building on the successful collaboration between the CIB Foundation and Ain Shams University Children’s Hospital, the Board approved EGP 54 million to outfit a Pediatric Bone Marrow Transplant Unit. The unit consists of three operating rooms with the capsule system. The project will contribute to the treatment of children suffering from Leukemia, Malignancy, Immunodeficiency, and Metabolic diseases. It aims to serve 35 children annually. Strong Heart…Stronger Future - The Aswan Heart Center (AHC) Through its longstanding partnership with Magdi Yacoub Foundation, the Board allocated EGP 25 million to fund 125 open heart surgeries and purchase 125 catheterization lab consumables at the Aswan Heart Center. A center of excellence, the Aswan Heart Center performs c.4,000 surgical and cardiac procedures annually on 2,400 children, according to the data provided by the center. Superstars Are Born from Scars The CIB Foundation’s Board allocated EGP 15.31 million to cover the costs of surgeries, treatments and medications for the pediatric burn patients, whose families could not afford the costs of their treatment, as part of its fourth 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 365 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 45 million to cover 250 pediatric open-heart surgeries and cath- eterizations. 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. Faculty of Dentistry Cairo University In collaboration with Cairo university, CIB founda- tion approved EGP 37.5 million for the renovation and development of the pediatric dental unit which was previously outfitted by CIB Foundation in 2010. The project aims to purchase 51 Dental Units, Medical Equipment and Consumables. The center provides free of charge surgical and dental services for children including those with special needs. The project aims to serve 75,300 Children annually. L’MISR Initiative In line with the Presidential Hayah Karima initia- tive, the CIB Foundation launched its first national initiative, L’MISR, after a decade of successful contribution to children’s health. The initiative focuses on supporting the physical and mental health of children to help them become productive members of society. It serves to localize sustainable develop- ment goals across an extensive base of beneficiaries. Our Kids…Our Future Building on the longstanding partnership with Ibrahim Badran Foundation, the Board allocated EGP 26.5 million to fund the 4th round of the medical convoys to reach the deprived areas in Qalyoubia, where a team of qualified doctors lead these caravans to offer examination and treatment to children in schools and health centers. In addition to purchasing and outfitting a medical convoy including a dental unit. The project also maintains the continuity of delivering healthcare in Fayoum, Beni Suif, Giza and Aswan through fixed clinics equipped with “Telemedicine”, the latest medical communication technology, in addition to operating mobile clinics to reach the needy areas in the governorates. The project serves 182,100 children. A Warmer Winter Building on the continuous and fruitful collabora- tion between the CIB Foundation and the Egyptian Clothing Bank, the Board allocated EGP 29.8 million to manufacture and distribute 100,000 winter training suits. This fund will ensure the sustainability of CIB Foundation interventions through providing clothing and revisiting the beneficiaries of L’Misr initiative which will complement the medical component of L’Misr initiative. Sonaa El Kheir Foundation The Board allocated EGP 30 million to fund the third round of the project with Sonaa El Kheir Foundation, building on the previous successful collaboration. The allocated fund will enable medical convoys to reach poverty-stricken areas in the governorates of Aswan, Kafr El Sheikh, Fayoum, Marsa Matrouh, Gharbiya, and New Valley, covering 176 elementary and middle schools which will serve 166,000 children. These medical convoys will provide comprehensive medical services in many fields such as Ophthalmology, General Pediatrics, Anemia and Stunting, and Diabetes, among others. Furthermore, the convoys will provide the necessary medications, tests, and surgeries if needed. Bright Start CIB Foundation allocated EGP 2 million in collabo- ration with Qabas Mn Noor Foundation to provide healthcare needs in Baris, New Valley Governorate, one of Egypt’s most underprivileged areas, through funding 24 medical convoys to this remote region. The convoys will focus on various pediatric health specialties, including Internal Medicine, General Pediatrics, Ophthalmology, Dermatology, and others, to assess and treat 1,173 children. Healthy Children • The Board of Trustees approved Raie Masr Foundation for Development’s proposal for EGP 15.8 million of funding for an additional 900 medical convoys’ operating costs related to the second round of “Healthy Children” project. Each convoy has a team of qualified doctors providing examinations and treatments to children in schools and health centers. The project is serving 150,000 children. • The Board approved a total amount of EGP 40.7 million to fund the third round of Healthy Children project, covering the operating costs of 2,200 convoys which will take place across Egypt’s governorates. It will also fund the purchase of three vehicles for medical convoys. The project aims to serve 374,000 children. Their Care…Our Responsibility As part of CIB Foundation’s longstanding partnership with Yahiya Arafa Children’s Charity Foundation, the Board allocated EGP 11 million to fund the annual operating costs of Ain Shams University Hospital’s three pediatric units. This covers the pediatric congenital heart defect unit, pediatric heart surgical unit, and the women and obstetrics hospital’s neonatal unit, serving 10,000 children annually. A Vision to the Future Building on the successful collaboration between CIB Foundation and Alexandria University Hospitals, the Board allocated EGP 41.11 million (equivalent to EUR 767,000) to purchase a Surgical Microscope 154 • CIB Annual Report • 2024 2024 • CIB Annual Report • 155 ESG / Social Development and a Ret Cam Envision for the pediatric ophthal- mology unit at Alexandria University. The Surgical Microscope will enhance the precision of pediatric eye surgeries, including cataract, glaucoma, and squint surgeries, and reduce the time required for these procedures. Meanwhile, the Ret Cam Envision will be instrumental in diagnosing eye cancer in children, retinal diseases, and examining premature babies. Collectively, these devices will serve approxi- mately 5,400 children annually. It is of note that the clinic receives an average of 400 patients daily for free examinations, drawing individuals from all over Egypt and even from neighboring countries in the Middle East and Africa. Each month, approximately 250 eye surgeries are performed across various subspecialties. 57357 Fighters Maintaining the longstanding partnership between 57357 Hospital and the CIB Foundation, the Board allo- cated EGP 50 million for the medical treatment of 2,500 children, covering medical exams, tests, radiotherapy, chemotherapy, immunotherapy, and other treatments. Supporting Health Interventions for Refugee Children in Egypt The EGP equivalent of USD 202,000 was allocated to treat 600 refugee children in Egypt, in collaboration with the United Nations High Commissioner for Refugees (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, and neurological disorders. Touch of Hope Building on the previous successful collaboration between CIB Foundation and Sporting Students Hospital, the Foundation allocated EGP 11.5 million to purchase the Immunochemistry Analyzer device for the hospital’s Chemistry Department. This state- of-the-art device will almost double the number of beneficiaries due to its fast and accurate technology, allowing the hospital to serve 600,000 children while ensuring the most accurate results. Outfitting the Pediatric Ophthalmology Unit - Minia University Hospitals The Board approved EGP 6 million to outfit the Pediatric Ophthalmology Unit at Minya University Hospitals, a center of excellence that serves unprivileged families in the Minya and Upper Egypt region. The initiative is expected to serve 11,000 children annually. Together We Can In collaboration with the Yasmin El Samra Charity Foundation, the CIB Foundation allocated EGP 1.2 million to continue supporting children with epidermolysis bullosa (EB). The second round will cover the surgical operations costs for 235 children, including hand surgeries, blood transfusions, and other diagnostic procedures and laboratory testing required for alleviating and relieving the symptoms and pain that results from blistering and fragile skin. Ongoing Projects from Previous Years Establishing the Surgical Suite - Ain Shams University Integrated Medical City In support of President Abd El-Fattah El-Sisi’s direc- tion to establish an integrated medical city inside Ain Shams University, the Board allocated EGP 100 million to sponsor the surgical suite in the New Pediatric Surgery Hospital, which is expected to serve around 30,000 children annually. The suite encompasses ten surgical theaters with the capsule system. The fund will cover the cost of medical and non-medical equipment in the theaters. Gift of Life In light of the successful collaboration between 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 at El Kasr El Eini Hospital. The goal is to reduce the number of children on the waiting lists and alleviate some of the financial burden on the hospital. Children without Risk Building on the successful collaboration with the Garden City Cosmopolitan Lions Club, the Board allocated EGP 7.5 million to establish a fully equipped open-heart surgery room for children at Mabara El Maadi Hospital. It will provide healthcare to children with congenital heart defects and heart complica- tions. This project is expected to serve approximately 720 children each year. Little Smiles CIB Foundation allocated EGP 4.8 million to establish a General Anesthesia unit at the Faculty of Dentistry at Beni Suef University. In the dental field, it is difficult to operate using only local anesthesia on children and toddlers, and more so on special needs patients, necessating that pediatric dentistry clinics have a general anesthesia unit. The project is expected to serve 1,000 children annually. A Bridge of Knowledge The CIB Foundation’s board agreed to fund one year of a five-year education and training program for 68 staff members of the Ain Shams clinical team (including doctors, nurses, and technicians) in partnership with Great Ormond Street Hospital for Children (GOSH) in London. This initiative follows the upgrade of the hospital’s facilities and equipment in line with inter- national standards. Following the program, Ain Shams University Children’s Hospital increases its capacity and serves an additional 30,240 children annually besides enhancing its overall level of care. GOSH is 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 conditions. The emphasis on education and training is key to the delivery of improved patient outcomes. 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 Ain Shams University Children’s Hospital to deliver bespoke education and training with specific focus on pediatric/neonatal intensive care and hema- tology/oncology. To A Brighter World As a result of the previous successful collaborations between CIB and Magrabi Foundations, the former’s Board of Trustees allocated EGP 10 million to offer free eye surgical procedures to 1,000 children in need. These surgeries aim to reduce the number of patients on waiting lists and to cure blindness related diseases in children and infants across Egypt. The surgeries constitute: Squint, Cataract, Retinal, Glaucoma and other illnesses, which will be performed in the Magrabi Eye Hospital in Cairo. An additional EGP 5 million was allocated to develop a detailed protocol for Retinopathy of Prematurity (ROP) 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 enti- ties. The project will serve 8,760 children (of which 90 will need surgical interventions). 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 14.5 million to fund the purchase of 100 customized wheelchairs and 100 electric wheelchairs for unprivileged children. The electric wheelchairs are for high severity cases such as quadriplegics, muscular dystrophy patients, or cerebral palsy patients, and others, while the customized wheelchairs are for medium/ low severity cases are designed to provide the chil- dren with optimum mobility. The wheelchairs allow five-year-old children to achieve physical independence despite mobility constraints. Spreading Hope In collaboration with the Sawiris Foundation for Social Development (SFSD), the CIB Foundation’s Board dedicated EGP 6.52 million to the Beit Yehmini program, an initiative by SFSD which provides a comprehensive package of services to underprivi- leged families living in unsafe environments with the aim of improving their living conditions. The CIB Foundation uses medical convoys to provide children under the Beit Yehemeni initiative with necessary health services. The Ibrahim Badran Foundation (IBF) is the implementing partner, leveraging its broad experience in providing medical convoys to deprived areas. The project is expected to serve more than 30,000 children. Our Differences…Our Strength In line with the Foundation’s commitment to supporting children with special needs, the CIB Foundation allocated EGP 2.5 million to fund the outfit- ting of the Sensory, Psychomotor, and Occupational Therapy rooms at the National Foundation for Family and Community Development’s specialized center 156 • CIB Annual Report • 2024 2024 • CIB Annual Report • 157 ESG / Social Development in Masr El-Adema. This project aims to improve the sensory and motor skills of disabled children, espe- cially children with autism. This project is expected to serve approximately 250 children annually. Joud Foundation, has been a strategic partner for the CIB Foundation; the hospital operates in line with international standards and offers its services free of charge to underprivileged communities. Their Care…Our Responsibility As part of CIB Foundation’s longstanding partnership with Yahiya Arafa Children’s Charity Foundation, the Board allocated EGP 7 million to support 2023 annual operating costs of Ain Shams University Hospital’s four pediatric units. This covers the pediatric congenital heart defect unit, pediatric heart surgical unit, children’s hospital’s pediatric surgical unit, and the women and obstetrics hospital’s neonatal unit, serving 15,000 children annually. In 2021, the Board allocated EGP 6 million to fund the annual operating costs of Ain Shams University Hospital’s four pediatric units. This covers the pedi- atric congenital heart defect unit, pediatric heart surgical unit, children’s hospital’s pediatric surgical unit, and the women and obstetrics hospital’s neonatal unit, serving 17,000 children annually. In addition, the Board allocated EGP 3 million to retrofit the depreciated medical equipment and operate the five pediatric units in Ain Shams University Hospital’s 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 unit, and the children’s hospital’s neonatal unit. The Dream of the South Building on the previous successful collaboration between the CIB Foundation and Aswan University Hospital establishing a center of excellence to treat children with neurological disorders in Upper Egypt, the Board allocated EGP 33.2 million to fund surgical devices and equipment needed for the surgery rooms, expand ward capacity, and establish a simulation training center for junior doctors. The project will serve 1,600 children annually. One Heart The CIB Foundation allocated EGP 24 million to cover 160 pediatric open-heart surgeries and 40 catheterizations to reduce the number of children on the waiting lists at Al Nas Hospital and alleviate some of the financial burdens of the hospital. Since its inauguration, Al Nas Hospital, managed by Al In 2021, CIB Foundation allocated EGP 24.36 million to fund NICU and PICU with new state-of-art equip- ment to Al Nas Hospital. Since its inauguration, Al Nas Hospital, managed by Al Joud Foundation, has been a strategic partner for the CIB Foundation; and the two units will serve approximately 2,000 children annually and offer its services free of charge to under- privileged 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 at Ganoub El Wadi University Hospital, Ain Shams University Hospital, and one private children’s hospital (Kids Hospital). Since these defects affects the child’s appearance and constitute speech difficul- ties, they hinder the children from living a normal life. Strong Heart…Stronger Future The Aswan Heart Center (AHC) Building on the longstanding partnership between Magdi Yacoub Foundation and the CIB Foundation, the Board allocated EGP 20 million to fund 100 open heart surgeries and purchase 100 catheterization lab consumables at the Aswan Heart Center. The New Global Heart Center in Cairo The Board allocated EGP 43.75 million over three years to establish a pediatric catheterization lab that allows doctors to perform minimally invasive tests and procedures on patients with various heart conditions. The catheterization lab, dedicated to the treatment of pediatric patients, will see around 960 children per year. L’MISR Initiative In line with the Presidential Hayah Karima initia- tive, the CIB Foundation launched its first national initiative “L’MISR” after a decade of successful contribution to children’s health; the initiative focuses on supporting the physical and mental health of children to help them become productive members of society; furthermore, this initiative localizes the sustainable development goals across the most extensive base of beneficiaries. Healthy Children The Board approved a total amount of EGP 15 million to fund the second round of the Healthy Children project; which funds the operating costs of 900 convoys that serves most of the governor- ates of Egypt as well as the purchasing of 3 medical convoys. The project is serving 150000 children. A Warmer Winter Building on the continuous and fruitful collabora- tion between CIB Foundation and the Egyptian Clothing Bank. The board allocated EGP 23.76 million to manufacture and distribute 120,000 winter training suits. To ensure the sustain- ability of CIB Foundation’s interventions, this year’s collaboration will complement the medical component of L’Misr initiative through providing clothing and revisiting the beneficiaries of the initiative in the schools of Qena, Beni Suef, and El Behira governorates. Sonaa El Kheir Foundation The Board allocated EGP 19.2 million to fund the second round of the project with Sonaa El Kheir Foundation, building on the previous successful collaboration. The allocated funds will enable the medical convoys to reach poverty-stricken areas in Beni Suef and El Behira governorates at 88 elementary and middle schools, which will serve 95,000 children. These medical convoys will provide comprehensive medical services to those children in many fields such as: Ophthalmology, General Pediatrics, Anemia and Stunting, Diabetes and others. Furthermore, the convoys will provide the necessary medications, tests and surgeries if needed. Our Kids Our Future The Board allocated EGP 12 million to fund 48 convoys in partnership with Ibrahim A. Badran Foundation which took place in underprivileged areas in Giza, where a team of qualified doctors led those convoys to offer examinations and treat- ment to the children in schools and health centers in the area. The project also aims to maintain the continuity of delivering healthcare in Fayoum, Beni Suef, and Aswan through fixed clinics equipped with “Telemedicine”, the latest medical communication technology, in addition to operating mobile clinics to reach the underprivileged areas in the governor- ates. The project serves 86,750 children. A Journey of Hope Building on our successful collaboration with the Nile of Hope Foundation, and after establishing a center of excellence to treat children with congenital defects in the great Alexandria region, CIB Foundation’s Board allocated EGP 18.38 million to Nile of Hope Foundation to fund 65 pediatric open-heart surgeries, 129 catheterizations, and the purchase of a heart-lung machine (HLM), which will support treatment for 120 children each year. Strong Teeth…Better Health Building on the successful collaboration with The Faculty of Dentistry – Cairo University and Rotary Club of Zamalek, CIB Foundation’s Board allocated a fund amounting to EGP 200 thousand to purchase the requested equipment for the faculty’s Maxillofacial Department. This department provides free services for approximately 14,000 children each year to replace missing teeth, surrounding tissues, jaw, and face missing parts. 57357 Fighters Maintaining the longstanding partnership between 57357 Hospital and the CIB Foundation, CIB Foundation fully disbursed EGP 30 million to cover the costs of 5,000 children’s treatment. This includes medical tests, examinations, chemotherapy, radio- therapy, immunotherapy, and more. Furthermore, the CIB Foundation disbursed the first tranche of EGP 4 million in its five-year contract (2024–2028) to 57357 Hospital at the beginning of 2024. The funds were used to support the hospital’s essential services, which included nuclear medicine, radiography, laboratories, medi- cation, and supplies. The fund served 500 children throughout the year. Rehabilitation Center for Children with Cerebral Palsy and Muscular Dystrophy As part of 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, CIB Foundation’s Board allocated a total budget of EGP 95.6 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 children with these physical disabilities. This project is expected to serve 1,000 children annually. 158 • CIB Annual Report • 2024 2024 • CIB Annual Report • 159 ESG / Social Development Step by Step The essential role played by the CIB Foundation in supporting underprivileged children drove the Foundation’s Board to allocate EGP 4.7 million to fund a project in collaboration with 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 limbs. The project aims to provide 400 children with prostheses to boost their seamless navigation in society. A Journey of Healing Building on the successful collaboration between the CIB Foundation and Shefaa Al-Orman Hospital for Oncology treatment in Luxor, the Foundation allocated EGP 25.22 million to equip the emergency department in the hospital’s children building with the latest and most efficient devices and medical equipment, as well as securing cancer medication for the course of four months. This emergency depart- ment is expected to support the hospital in serving approximately 10,060 children annually. This special- ized 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. For a Better Childhood The CIB Foundation fully disbursed the allocated amount 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 Board allocated EGP 12.5 million to establish a specialized center for 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 disbursed the last tranche of the 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 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 disbursed the last instalment of EGP 38.35 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. 160 • CIB Annual Report • 2024 2024 • CIB Annual Report • 161 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 Disclosures CIB’s Sustainable Finance Policy: Updated and Released in 2024, serves as the foundation for embedding sustainability across the Bank. CIB’s Sustainable Finance Policy applies to all the Bank’s departments. The policy is the foundation for embedding sustainability across the Bank. It emphasizes CIB’s commitment to streamlining sustainability and integrating ESG principles, frameworks, and international standards across all business lines. The Policy applies to all the Bank’s departments, functions, and lines of business. Annually reviewed and updated, it mirrors the dynamic nature of sustainability, effectively addressing and inte- grating emerging trends in Sustainable Finance. CIB is committed to achieving long-term value creation for all stakeholders. The Bank’s approach is built around value creation, which is achieved through an ecosystem-based business model that engages the Bank’s stakeholders and the ecosystem at large, from employees to clients, shareholders and investors, creditors, suppliers, regulators, governmental bodies, peers, business partners, suppliers, as well as society and the environment through multiple channels CIB – Sustainable Finance Policy: https://www.cibeg.com/-/ media/project/downloads/about-cib/cib-corporate-respon- sibility-formerly-community/corporate-sustainability/policy/ cib-sustainable-finance-policy.pdf The Sustainable Finance Policy complies with all relevant national and global standards in addition to regulator’s directives; additionally, it is aligned with national strategies, including Egypt’s Vision 2030, the Egypt climate change strategy and its National Determined Contributions (NDCs), the United Nations Sustainable Development Goals (UNSDGs), and the Paris Agreement for Climate Change, as well as CIB’s architecture of global frameworks and global standard- setters. Sustainable finance policy is the foundation for embedding sustainability across the Bank. It emphasizes CIB’s commitment to streamlining sustainability and integrating ESG principles, frameworks, and international standards across all business lines. • Does the company follow Environmental and Social (E&S) or sustainability, Policies? • Environmental Operations & Oversight • Is the policy one that the company has developed and issued on its own or adopted from global or national policies? • ESG Key Performance Indicators (KPIs) Actions taken by the Company Answer Yes No Comment/Clarification • Does your company identify/assess environmental and social risks arising from your economic activity? • • Does your company follow specific waste, water, energy, and/or recycling polices? CIB has an effective Environmental and Social Management System (ESMS) that encompasses the requirements for each product line, E&S due diligence and monitoring processes, loan approval procedures, roles and responsibilities, external communication mechanisms, this system has been enhanced by implementing CIB’s sustainable finance pillars, including ESMS, Sustainability System Integration, and the Sustainable Finance Strategy. 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). - CIB 2023 ESGDD Integrated Report - Environmental and Social Risk Management System Section: https://www.cibeg.com/-/ media/project/downloads/about-cib/cib-corporate-responsibility- formerly-community/cib-2023-esgdd-report04082024-masader.pdf 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. Whereby 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 startup 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 162 • CIB Annual Report • 2024 2024 • CIB Annual Report • 163 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 • Does your company identify any targets related to GHG gases emissions? If yes, please disclose • CIB has been managing, monitoring and reporting its Carbon Footprint (GHG) since 2018 covering the main three GHG-Scopes (1, 2 and 3) of the Bank’s own operations. The Bank has broadened the scope in 2020 to include additional environmental factors to (Land and Water Footprints) and publishing its Ecological Footprint results. The Bank has set 10% reduction on its own operations in 2018 and achieved in 2020 – to know more about CIB’s Ecological Footprint performance, please visit the following link (Ecological Footprint section): https://www.cibeg.com/-/media/project/downloads/ about-cib/cib-corporate-responsibility-formerly-community/ cib-2023-esgdd-report04082024-masader.pdf Being a founding signatory of the Net-Zero Banking Alliance (NZBA) has allowed the Bank to assess its portfolio of carbon-intensive sectors’ impacts, and is currently in the process of setting a decarbonization action plan. - In October 2022, CIB disclosed the baseline year for its “Corporate Loan Portfolio Financed Emissions” for 2021, focusing on three key sectors: power generation, real estate, and food and beverage. - In March 2023, CIB published its first climate targets report, which aligned with the NZBA’s standards. Climate targets were set for two carbon-intensive sectors; Power Generation and Real Estate sectors. - In June 2024, the Bank published its high-level transition plan for both sectors Please visit the following links to know more about CIB climate targets and high level decarbonization plan: - CIB 2023 ESGDD Integrated Report: https://www.cibeg.com/-/ media/project/downloads/about-cib/cib-corporate-responsibility- formerly-community/cib-2023-esgdd-report04082024-masader.pdf - CIB Climate Targets Report: https://www.cibeg.com/-/media/ project/downloads/about-cib/cib-corporate-responsibility-formerly- community/cib---nzba-report-draft---final---21-june---01.pdf CO2 Emissions • Does the company calculate total amount of carbon emissions in metric tons? If yes please disclose • Does the company calculate the total annual amount of energy directly consumed? Energy Consumption/ Sources of Energy • Does the company calculate the percentage of energy consumption according to the type of generation source? • Does the manage- ment have any system/certification regarding environ- mental practices (ISO 14001 certification)? If yes please disclose • CIB acquired the ISO 9001:2015 Quality Management certification and the Green Pyramid Rating System (GPRS) Gold Rating certificate for three of CIB’s premises. • Does the company calculate the total percentage of annual energy saved? • • • • 2023 Carbon Footprint Results: SCOPE 1 – Direct Emissions: 7,085 mtCO2e SCOPE 2 – Indirect Emissions: 34,249 mtCO2e SCOPE 3 (Own Operations) – Indirect Emissions: 33,045 mtCO2e To know more about the Ecological Footprint Results, please visit the following link “CIB 2023 ESGDD Integrated Report – Ecological Footprint Section: https://www.cibeg.com/-/media/project/ downloads/about-cib/cib-corporate-responsibility-formerly- community/cib-2023-esgdd-report04082024-masader.pdf CIB calculates its directly consumed energy under (Scope 1 and 2). - Total Purchased Electricity in 2023: 40,832,000 kWh - Total Purchased Chilled Water in 2023: 32,322,000 kWh - To know more about the Bank’s Operational Indicators, please visit “CIB 2023-2024 ESGDD Integrated Report”: https://www.cibeg.com/-/ media/project/downloads/about-cib/cib-corporate-responsibility- formerly-community/cib-2023-esgdd-report04082024-masader.pdf Total energy consumption (including renewable energy) in 2023: 76,241 MWh. To know more about the Bank’s Operational Indicators, please visit “CIB 2023-2024 ESGDD Integrated Report”: https://www.cibeg.com/-/ media/project/downloads/about-cib/cib-corporate-responsibility- formerly-community/cib-2023-esgdd-report04082024-masader.pdf Total Annual Renewable Generation of (Solar PV) in 2023: 473.6 MWh Renewable energy consumption (Solar water heaters) in 2023: 19.2 MWh Percentage Renewable energy from total electricity consumption in 2023: 1.21% 164 • CIB Annual Report • 2024 2024 • CIB Annual Report • 165 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 Water Consumption Waste Management Gender Diversity and Pay Gap • Does the company calculate its total water annual consumption? • Does the company calculate the total amount of annual water recycled and treated? • Does the company calculate the total amount of waste generated or recycled and that, which has been treated according to type and weight? • Does the company disclose the annual percentage rate of turnover for full-time employees? • Does the company disclose the total number of male and female by employ- ment type (temporary or permanent)? • Does the company disclose the total percentages of both male and female employees? • • • • • Total water footprint in 2023: 3,463,095 m3 Total Wastewater Treatment in 2023: 1,374,337 m3 Office solid waste disposal: 1454 Tons Social Disclosures In 2023 total employee turnover rate was 5.2% as of 2023 Permanent Employees: 7,283 (Male: 5,154 – Female: 2,129) – as of 2023 Temporary Employees: 741 (Male: 536 – Female: 205) – as of 2023 Male: 67% - as of 2023 Female: 33% - as of 2023 • Does the company disclose the percentage of posi- tions held by males and females (specifi- cally for entry-level and mid-level jobs)? • Does the company disclose the percentage of posi- tions held by males and females (specifi- cally for senior-level and executive posi- tions)? • Does the company disclose the average pay ratio for females compared to the males? • Does the company disclose the annual percentage rate of turnover for full-time employees? • Does the company disclose the annual percentage rate of turnover for part- time employees? • Does the company disclose the annual percentage rate of turnover for contract employees and consultants? Entry Level: (Male 68%) – (Female 32%) – as of 2023 Mid-level jobs, according to the Bank’s classification will be the Middle Management: (Male: 84%) – (Female: 16%) – as of 2023 Senior Management: (Male 71%) – (Female 29%) – as of 2023 Executive Management: (Male 100%) – as of 2023 • • • • Not Disclosed • Not Disclosed 166 • CIB Annual Report • 2024 2024 • CIB Annual Report • 167 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 Non- Discrimination • Does the company follow a policy condemning sexual harassment and a non-discrimination policy based on any racial, religious, or gender basis? • Does the company follow an occu- pational 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)? Global Health & Safety • • It’s included in the Bank’s (HR Policy) CIB prioritizes its employees’ well-being 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 2023, CIB has organized initiatives and training to ensure health and safety in the workplace, including: Primary Medical Check-ups for 1,976 employees OHS Committee Advanced & OHS Committee Basic trainings for 25 trainees First Aid & Cardiac Resuscitation Training for 434 trainees Safety Plan/Firefighting Training for 515 trainees • What is the number of occupational acci- dents if any? • CIB conducted 45 Occupational Health and Safety (OHS) inspections with zero work-related injuries and zero work- related ill health reported. CIB 2023-2024 ESGDD Integrated Report: https://www. c i b e g . c o m / - / m e di a / pro j e c t / d ow n l o a d s / a b o u t - c i b / cib-corporate-responsibility-formerly-community/cib-2023- esgdd-report04082024-masader.pdf • Does the company offer trainings related to environ- mental, social AND Occupational Health and safety (OHS) issues for employees? If the answer is yes, please disclose the number of trainings hours? • Does the company follow a policy prohib- iting child labor and forced labor? • Does that policy apply to the suppliers and vendors dealing with the company? • 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 the company’s policy cover suppliers and vendors? • • • • Child & Forced Labor Labor Rights The Bank has conducted and organized several training sessions to ensure health and safety in the workplace which includes: - In 2023, CIB has organized initiatives and training to ensure health and safety in the workplace, including: - Primary Medical Check-ups for 1,976 Employees - OHS Committee Advanced & OHS Committee Basic trainings for 25 trainees - First Aid & Cardiac Resuscitation Training for 434 trainees - Safety Plan/Firefighting Training for 515 trainees Training CIB expanded the first aid training program to cover more staff in branches and increased the number of staff with OHS training in buildings to promote OHS concepts and practices throughout the Bank and ensure the safety culture is instilled within it These policies are included in the Bank’s policies. All Relevant ESG principles are integrated in bank policies The Bank’s internal policy follows the Egyptian Labor Law however, it integrates additional rules and regulations. Code of Conduct All Relevant ESG principles are integrated in bank policies 168 • CIB Annual Report • 2024 2024 • CIB Annual Report • 169 ESG / FRA Disclosures ESG Key Performance Indicators (KPIs) Actions taken by the Company Answer Yes No Comment/Clarification Social Disclosures Board Diversity • 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? • • • 11 members (Board of Directors) with 18% Women Representation in the Board – as of 2023 Six Board Committees: (5 chaired by males – 1 chaired by a female) – as of 2023 Four Executive Committees: (4 Chaired by Males) – as of 2023 CIB’s compliance is embedded in the integrated risk framework. It comprises five main pillars: Financial Crime Combating, Regulatory Compliance, Compliance Monitoring & Testing, Conduct Risk & Customers’ Rights Protection, and Whistleblowing. These pillars are designed to provide oversight and control over the Bank’s compliance activities and ensure that the Bank operates in a compliant and ethical manner. They offer a comprehensive baseline on anti-money laundering, anti-corruption, customer rights protection, and regulatory relations. During 2023, there were no bribery cases, or noncompliance cases related to canceled or withdrawn products or services. Ethics and Code of Conduct • Does the company issue code of conduct / Ethic and follow them? Code of Conduct Policy : https://www.cibeg.com/-/media/ project/downloads/about-cib/risk-and-responsibility/corporate- governance/cib---code-conduct-july-2022.pdf ESG Key Performance Indicators (KPIs) Actions taken by the Company Answer Yes No Comment/Clarification Data Privacy • In addition to the Egyptian Data Protection Law requirements, does the company follow any other interna- tional data Privacy framework, rules, or recommendations? If yes, please disclose Sustainability Reporting & Disclosures • Does the company issue sustainability report according to GRI, CDP, SASB, IIRC, UNGC, or any other type of sustainability reports frameworks? CIB has established stringent cybersecurity governance, including a 24x7 Security Operations Center for continuous monitoring and threat response. Moreover, CIB has maintained certifications in Payment Card Industry Data Security Standards, ISO22301 Business Continuity Management, and ISO27001 Information Security Management, further enhancing its commitment to robust security measures. CIB demonstrates its commitment to upholding industry best practices and international standards through its continued possession of PCI and ISO certifications. The ongoing presence of these certifications in 2023 underscores CIB’s dedication to meeting stringent data security and management system requirements. Additionally, CIB conducts induction sessions on Business Continuity and Information Security for new hires and provides multiple training and awareness sessions for existing employees. These initiatives focus on integrating resilience into day-to-day operations and enhancing awareness of PCI compliance. To know more, please visit CIB 2023-2024 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 has aligned with leading international sustainability frameworks and disclosure platforms, including: • Equator Principles (EP) • Global Reporting Initiative (GRI) • Net Zero Banking Alliance (NZBA) • Principles of Responsible Banking (PRB) • Sustainability Accounting Standards Board (SASB) • Task Force on Climate-related Financial Disclosures (TCFD) • UN Global Compact (UNGC) CIB 2023-2024 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 • • 170 • CIB Annual Report • 2024 2024 • 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 • Is the company striving to achieve specific goals from the United Nations Sustainable Development Goals? • Does the company identify these goals and report on the progress made within the frame- work of the United Nations Sustainable Development Goals (SDGs) ? • Has the company clearly declared its commitment towards corporate social responsibility standards? • • • CIB is actively aligned with global ESG standards and frameworks since its crucial for fostering sustainable business practices. These frameworks and standards are essential for advancing our risk and portfolio management and refining our governance and disclosure strategy. CIB has always been an active player in the global landscape of sustainability frameworks, as being a founding signatory status of PRB and NZBA and signatory member of Equator Principles, CFHI, PCAF and the first bank in Egypt to support the TCFD. To know more about CIB’s progress under each framework, please visit the following link for CIB 2023 ESGDD Integrated Report: https://www.cibeg.com/-/media/project/downloads/about-cib/ cib-corporate-responsibility-formerly-community/cib-2023-esgdd- report04082024-masader.pdf Please revert to answered question (G5.1) which includes all Sustainability-related reporting which showcases CIB progress in its commitment within global sustainability frameworks in addition to national and international strategies. CIB is dedicated to fostering positive change through community and social investments in its operating communities. The Corporate Social Responsibility (CSR) initiatives focus on education, health, sports, and community development. The CIB Foundation, a non-profit organization backed by 1.5% of the Bank’s annual profit, spearheads various community development projects, particularly in children’s healthcare To know more about CIB’s CSR programs and initiatives and CIB Foundation activity progress and achievements, visit the following links: (CIB 2023 ESGDD Integrated Report: - https://www.cibeg.com/-/ media/project/downloads/about-cib/cib-corporate-responsibility- formerly-community/cib-2023-esgdd-report04082024-masader.pdf C IB 2023 Found ation Annual Re p or t: - https://www. c i b e g . c o m / - / m e d i a / p r o j e c t / d o w n l o a d s / a b o u t - c i b / c i b - c o r p o r a t e - r e s p o n s i b i l i t y - f o r m e r l y - c o m m u n i t y / cib-foundation/2023-cib-foundation-annual-report-en.pdf • Does the company follow a clear and explicit policy / principle regarding community invest- ments? • Does the company participate in public private initiatives for community develop- ment? External Assurance • Are the company’s ESG disclosures assured by an inde- pendent third party? Please revert to answer question G5.4 - To know more about CIB’s CSR programs and initiatives and CIB Foundation activity progress and achievements, visit the following links: - CIB 2023 Annual Report: https://www.cibeg.com/-/media/project/ downloads/investor-relations/ir-library/annual-reports/2023/cib-- -ar-2023---final.pdf - CIB 2023 ESGDD Integrated Report: https://www.cibeg.com/-/ media/project/downloads/about-cib/cib-corporate-responsibility- formerly-community/cib-2023-esgdd-report04082024-masader.pdf - C I B 2 0 2 3 Fou nd a t ion A n nu a l R e p or t : ht t p s ://w w w. c i b e g . c o m /- / m e d i a / p r o j e c t /d o w n l o a d s /a b o u t - c i b / c i b - c o r p o r a t e - r e s p o n s i b i l i t y - f o r m e r l y - c o m m u n i t y/ cib-foundation/2023-cib-foundation-annual-report-en.pdf Please revert to the answered question (G5.4 To know more about CIB’s CSR programs and initiatives and CIB Foundation activity progress and achievements, visit the following links - CIB 2023 Annual Report: https://www.cibeg.com/-/media/project/ downloads/investor-relations/ir-library/annual-reports/2023/cib-- -ar-2023---final.pdf - CIB 2023 ESGDD Integrated Report: https://www.cibeg.com/-/ media/project/downloads/about-cib/cib-corporate-responsibility- formerly-community/cib-2023-esgdd-report04082024-masader.pdf - C I B 2 0 2 3 Fou nd a t ion A n nu a l R e p or t : ht t p s ://w w w. c i b e g . c o m /- / m e d i a / p r o j e c t /d o w n l o a d s /a b o u t - c i b / c i b - c o r p o r a t e - r e s p o n s i b i l i t y - f o r m e r l y - c o m m u n i t y/ cib-foundation/2023-cib-foundation-annual-report-en.pdf - All conducted (Sustainability/ ESG) related reports are assured with either (Limited or Independent Assurance). • • • 172 • CIB Annual Report • 2024 2024 • CIB Annual Report • 173 ESG / FRA Disclosures Financial Disclosures Related To Climate Change (TCFD) Questions Answer Yes No Comment/Clarification Questions Governance Answer Yes No Comment/Clarification Strategy • Does the board have oversight of climate- related risks and opportunities? • The Board oversees the Bank’s strategic approach to climate-related risks & opportunities, through its committees: the Sustainability Committee and the Risk Committee. In 2023, the Bank released its first Task Force on Climate-Related Financial Disclosures (TCFD) report. Furthermore, in 2024, the Bank published its annual integrated sustainability report, offering a comprehensive discourse of the Bank’s climate-related risks & opportunities, aligned with the TCFD framework. • Does the management have a role in assessing and managing climate related risks and opportunity? • The Bank has a well-established governance structure for identifying and managing of climate-related risks & opportunities across the Board, management and business lines to ensure effective oversight and day-to-day management. The Bank has a Sustainable Finance steering committee that reports to the Executive Management Committee and includes executive management members, such as the Chief Risk Officer and the Chief Sustainability Officer. Additionally, the Bank has a Sustainable Finance department, which plays a key role in identifying and assessing climate-related opportunities. Furthermore, the Bank has a dedicated Environmental, Social and Governance Risk Management department, serving as the second line of defence for assessing and measuring climate-related risks. • 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 organization’s business, strategy, and financial planning? • Does your company invest, annually, in climate-related infra- structure, resilience, and product develop- ment? • • • The Bank continues to enhance its capabilities in identifying and assessing climate-related risks & opportunities across the short, medium and long- term tenors. This includes - establishing a comprehensive risk management process to identify material climate-related risk impacts over these time horizons by understating of the transmission channels of climate-related risk drivers through both the traditional financial and non-financial risks. The management of climate-related risks and opportunities is a core pillar of the Bank’s Sustainable Finance strategy. Building on this commitment, the Bank is progressively integrating climate-related risks into its current risk management framework. Furthermore, the Bank continues to accelerate and advance its capabilities to measure and assess climate-related financial risks, including their potential impacts on other risks such as credit risk. These advancements will enable the Bank to effectively embed climate considerations into its strategy and financial planning. The Bank invests annually to combat climate change, addressing emis- sions from its operations through various activities such as converting electricity consumption to solar energy, rationalizing water and paper usage, and other sustainability efforts. In addition, the Bank also helps customers/clients in reducing their emissions by providing a wide range of financial products and grants to implement projects that contribute to reducing the effects of climate change including finance adaptation and mitigation projects, in addition to rationalizing energy and water consumption and increasing the production of renewable energy sources. 174 • CIB Annual Report • 2024 2024 • CIB Annual Report • 175 ESG / FRA Disclosures Questions Answer Yes No Comment/Clarification Questions Risk Management Answer Yes No Comment/Clarification Metrics & Targets • Does the company use any metrics to assess climate-related risks and opportunities in line with its strategy and risk management process? • CIB has been managing, monitoring and reporting its Carbon Footprint (GHG) since 2018 covering the main three GHG-Scopes (1, 2 and 3) of the Bank’s “Own Operations. The Bank has broadened the scope in 2020 to include additional environmental factors to (Land and Water Footprints) and publishing its Ecological Footprint results. Additionally, the Bank has measured its financed emissions for three sectors, and set targets for two of its carbon-intensive sectors: Power generation and Commercial & Residential Real Estate. The Bank is in the process of establishing risk appetite framework to monitor its portfolios’ exposure to transition risks and vulnerability to physical hazards • Total amount, in CO2 • equivalents, for Scope 1 (if applicable)? CIB has been conducting and publishing its Carbon Footprint since 2018 covering the GHG-three main scopes of the Bank’s own operations (1, 2 and 3). • Does the company set a defined process for identifying and assessing the climate related risks? • The Bank’s approach to climate-related risks (including transition and physical risks) is grounded in the fundamental pillars of the risk manage- ment: identification, measurement, mitigation, monitoring and reporting. This approach aligns with the CBE guidelines on climate risk and incor- porates evolving international best practices and global climate-related risk frameworks. • Does the company have a solid process for managing the climate related risks? • The Bank has established a Climate Risk Management Guide, which provides a framework for proactively identifying, assessing, and integrating climate-related risks into its risk management processes and business practices. The guide emphasizes a holistic and dynamic approach to managing climate risk, recognizing its inherent complexity and uncertainty. • Does the company incorporate climate- related risks in the company’s overall risk management? • The Bank considers climate-related risks as part of its comprehensive risk assessments to identify and measure all material risks. The Bank aims to progressively integrate climate-related risks into its existing risk management framework, recognizing climate risk as a cross-cutting risk that affects existing risk types. This approach evolves alongside advancements in methodologies and data. This integration is supported by the use of relevant qualitative &quantitative approaches, as well as reliance on expert judgment and assumptions. Additionally, the Bank continues to enhance its scenario analysis & stress testing framework to measure potential exposures to material climate- related transition and physical risk drivers. Climate risk stress testing is incorporated into the Bank’s broader stress testing framework, with the aim of progressively integrating it into the Internal Capital Adequacy Assessment Process (ICAAP) as methodologies and data evolve 176 • CIB Annual Report • 2024 2024 • CIB Annual Report • 177 07• Subsidiaries & Associates 178 • CIB Annual Report • 2024 2024 • CIB Annual Report • 179 CIB continuously seeks to cement its legacy as a leading financial institution in Egypt and the region through its expansion into new industries and markets. Subsidiaries & Associates Subsidiaries and Associates Subsidiaries As for the corporate segment, the bank introduced new solutions, including corporate interest- bearing current accounts, supply chain finance options, and cash flow-based lending, designed to better meet the needs of businesses. Forward-Looking Strategy CIB Kenya remains focused on expanding its pres- ence in both the retail and corporate segments. The bank aims to build on its recent success in deposit mobilization and continue introducing innovative products that cater to both large corpo- rates and SMEs, positioning itself for sustained growth in Kenya’s evolving financial landscape. CIB Kenya Limited (CIB K) CIB Kenya Limited, formerly Mayfair-CIB, is an established commercial bank in Kenya, licensed by the Central Bank of Kenya in June 2017. The bank marked a key milestone with CIB Egypt’s acquisition of the remaining 49% stake in Mayfair CIB, making it the first fully owned subsidiary of CIB outside of Egypt. CIB Kenya focuses on trade finance and corporate banking solutions, with a particular emphasis on enhancing the Egypt-Kenya trade corridor and supporting Egyptian corporates and SMEs in East Africa. 2024 Highlights Despite challenging macroeconomic conditions, CIB Kenya continued to grow its customer base and strengthen its market position. The bank launched several new initiatives in 2024, aimed at expanding its retail and corporate offerings. These efforts, demonstrate a cohesive, strategic, and results-driven approach to growth, capital- izing on synergies and knowledge transfer. The bank also rolled out corporate interest-bearing accounts and supply chain finance solutions to better serve businesses. In the retail segment, the bank rolled out a range of innovative products and services with an aim to boost the bank’s liabilities base, applying the best practice a establishing a go to market. The bank also enhanced its interest-earning current accounts and cash-backed lending processes. DSMS Investment Overview Damietta Shipping and Marine Services (DSMS) is a shareholding company, established in 1986 through a public offering with a paid-in capital of EGP 10 million. As a small-sized enterprise, DSMS primarily focuses on marine services, including container repairs, fuel tank rentals, and electrical repairs. The company’s principal source of income is the dividends generated from its investment in Damietta Container and Cargo Handling (DCHC). CIB’s stake in DSMS is a result of an in-kind settlement for facilities initially granted to a client within the shipping sector. The investment is presently under the oversight of the Direct Investment Group (DIG) and Investment Exposure Management (IEM). The prevailing strategy is to divest the investment to an external investor, whether strategic or financial. CIFC Commercial International Finance Company The Commercial International Finance Company (CIFC) launched its operations in April 2024 offering a comprehensive suite of factoring prod- ucts to meet the growing demand for alternative financial solutions. These products provide a wide range of value-added services, encompassing both domestic and international offerings. In its first year, CIFC managed successfully tailored products to serve both large Corporate and SME clients. The company aims to rapidly expand its factoring finance business through the integration of financial services and advanced chain manage- ment solutions, while other NBFS activities are currently under consideration. 180 • CIB Annual Report • 2024 2024 • CIB Annual Report • 181 Subsidiaries & Associates Associates TCA In January 2021, CIB and Talaat Moustafa Group (TMG) jointly established a commercial real estate company, TCA Properties. The company commenced operations in early 2021, acquiring a selection of TMG Holding’s prime commercial assets located in Al Rehab and Madinaty. 2024 Highlights In 2024, TCA’s management company, Alexandria Company for Projects Management (APM), actively promoted TCA’s commercial assets for rent and sale to reputable brands in the F&B and retail sectors. The company successfully secured multiple contracts with key market players in these industries. 2025 Forward-Looking Strategy The management team will continue to focus on expanding TCA’s client base by targeting best-in-class retailers, thereby ensuring a premium tenant mix that meets customers’ needs and satisfies market demand. In parallel to pursuing this strategy, CIB is also currently exploring potential divestment opportunities to secure optimum returns on the investment. ACE Al Ahly Computer Equipment (ACE) was established in October 1996 as a joint-stock company under Law No. 159 of 1981. With an extensive history in the Information Technology sector, ACE offers a diverse range of products and services, from customized maintenance solutions to specialized hardware, sourcing original equipment from renowned companies in the industry. The company provides IT maintenance services through a large team of highly trained technical engineers. ACE has built a strong reputation as a trusted provider of IT services and hardware for governmental entities, major banks, and large institutions. 2024 Highlights In 2024, despite facing significantly challenging market conditions, ACE’s management team demonstrated remarkable effort, successfully increasing the company’s revenues by securing maintenance and sales contracts with prominent b a n k s a n d g o v e r n m e n t e n t it i e s i n E g y p t . Furthermore, the company has been expanding its product portfolio through a strategic collaboration agreement with well-established brands and hardware providers in the IT sector. 2025 Forward-Looking Strategy Management is committed to fostering strong relationships with existing customers, while simultaneously improving the maintenance and direct sales experiences to ultimately expand the clientele base. The primary objectives for FY25 include steadily broadening the company’s market reach, solidifying its market share, and establishing a robust and sustainable competitive advantage. The company’s strategic approach prioritizes a balanced and measured expansion for long-term business growth. 182 • CIB Annual Report • 2024 2024 • CIB Annual Report • 183 08• Financial Statements 86% y.o.y increase in consolidated net income to EGP 55.2 billion 184 • CIB Annual Report • 2024 2024 • CIB Annual Report • 185 CIB’s strategy focuses on strengthening its core business to serve current and potential customers in the corporate, SME, and retail segments. Auditor’s Report 186 • CIB Annual Report • 2024 2024 • CIB Annual Report • 187 Financial Statements / Consolidated Financial Statements / Consolidated All amounts are presented in EGP thousands All amounts are presented in EGP thousands All amounts are presented in EGP thousands All amounts are presented in EGP thousands Consolidated Statement of Financial Position As at December 31, 2024 Consolidated Income Statement For the year Ended December 31, 2024 Notes Dec. 31, 2024 Dec. 31, 2023 Notes Dec. 31, 2024 Dec. 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 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 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 NCI, equity and net profit for the year Total liabilities and equity 15 16 18 19 20 21 21 22 43 23 32 24 25 26 44 20 29 27 28 30 31 34 34 34 136,531,020 270,829,834 9,555,410 343,542,674 819,711 234,512,167 168,118,219 98,193 - 44,282,773 2,685,331 3,997,929 1,214,973,261 2,034,885 972,595,958 1,397 100,571 18,327,968 21,441,169 5,067,781 23,962,389 18,621,822 1,062,153,940 30,431,580 63,544,579 1,868,235 56,791,883 152,636,277 183,044 152,819,321 1,214,973,261 71,887,821 231,085,244 822,448 234,985,936 1,105,148 233,125,234 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 The accompanying notes are an integral part of these financial statements . (Auditors report attached) Including net profit for the Year Islam Zekry Group CFO & Executive Board Member Hisham Ezz Al-Arab CEO & Executive Board Member 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 (loss) from discontinued operations Net profit for the Year Non Controlling Interest Bank's shareholders Earnings per share Basic Diluted 6 7 8 9 21.1 10 11 12 13 45 14 182,735,474 (91,671,252) 91,064,222 12,813,876 (5,728,656) 7,085,220 195,047 20,472,067 459,337 (13,895,619) (23,702,991) - - (4,523,819) (17,786) 77,135,678 (23,548,933) 1,669,987 55,256,732 - 55,256,732 60,338 55,196,394 104,028,379 (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 16.39 16.19 8.50 8.39 Islam Zekry Group CFO & Executive Board Member Hisham Ezz Al-Arab CEO & Executive Board Member 188 • CIB Annual Report • 2024 2024 • CIB Annual Report • 189 All amounts are presented in EGP thousands All amounts are presented in EGP thousands Consolidated Statement of Comprehensive Income For the year Ended December 31, 2024 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: Dec. 31, 2024 Dec. 31, 2023 55,256,732 29,668,865 51,159 259,291 (157,217) (370,224) (131,008) (95,308) Change in fair value of Financial invesments measured at fair value through comprehensive income 8,834,933 (6,926,653) 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 comprehensive income (459,337) 887,145 989,367 (205,344) 1,530,823 (32,971) 936,949 1,888,326 Total comprehensive income for the year 65,969,507 25,956,021 As follows: Bank's shareholders Non Controlling Interest Total comprehensive income for the year 65,909,169 25,921,698 60,338 34,323 65,969,507 25,956,021 190 • CIB Annual Report • 2024 Consolidated Cash Flow For the year Ended December 31, 2024 Notes Dec. 31, 2024 Dec. 31, 2023 Cash flow from operating activities Profit before income tax from continued operations (Loss) from discontinued operations Adjustments to reconcile profits to net cash provided by operating activities Fixed assets depreciation Impairment release/charge for credit losses (Loans and advances to customers and banks) Other provisions release/charge Impairment release/charge for credit losses (due from banks) Impairment release/charge for credit losses ( financial investments) Impairment release/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 Revaluation differences impairment charge for due from banks Utilization of other provisions Exchange revaluation differences of other provisions Profits/losses from selling property and equipment Profits/losses from selling financial investments at fair value through OCI Losses (Profits) from selling investments in associates Impairment (Released) charges of investments in associates Share 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 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 Cash flow from investing activities Proceeds from sale of investments in associates Payments for purchases of property, equipment and branches construction Proceeds from selling property and equipment Proceeds from redemption of financial assets at amortized cost Payments for purchases of financial assets at amortized cost Payments 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 24 12 30 12 12 21 30 30 11 21.1 21.1 21.1 34.5 20 18 - 19 41 25 26 11 77,135,678 - 41,653,373 (42,102) 1,078,413 4,768,107 3,363,525 (341) (243,947) 37,939 788,209 2,311,867 2,821,141 (47,234) 2,005,448 17,620 (21,026,044) (5,442,433) - - 1,329,905 119,504 2,008 (9,586) 4,172,794 (2,246) (459,337) - - 1,005,350 17,786 96,268 24,188 1,903 607 - (5,850) 1,213,126 (1,663) (205,344) (7,466) (9,000) 754,817 55,983 71,289,508 45,983,458 (111,192,809) 490,593 (122,049,597) (21,906,858) - (10,423,118) 295,358,479 (5,220,965) 524 (6,581,467) 89,764,290 18,441,280 755,995 (41,467,103) (3,968,123) (161) 8,961,305 145,620,929 (3,704,414) 873 3,680,970 174,305,009 11,956 4,510 (5,798,484) (1,685,846) 2,246 2,028,180 (129,421,649) (113,691,104) 141,091,685 - (105,777,170) 1,663 6,125,452 (9,409,257) (129,066,885) 100,481,027 (1,142,840) (34,692,176) 2024 • CIB Annual Report • 191 Financial Statements / Consolidated s d n a s u o h t P G E n i d e t n e s e r p e r a s t n u o m a l l A All amounts are presented in EGP thousands Consolidated Cash Flow (Cont.) For the year Ended December 31, 2024 Notes Dec. 31, 2024 Dec. 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 28 15 16 17 15 11,478,482 (5,403,796) 1,994,432 236,570 8,305,688 (7,707,192) 234,317,913 226,610,721 136,531,020 270,833,659 88,630,062 (114,778,023) (67,031,032) 4,504,932 (3,755,996) 616,742 369,876 1,735,554 141,348,387 92,969,526 234,317,913 71,887,821 231,087,402 113,403,703 (64,396,185) (4,942,896) (87,574,965) (112,721,932) 226,610,721 234,317,913 n o N l a t o T y t i u q E - , 6 7 8 9 6 3 ) 5 5 1 9 7 6 ( , - - - - , 6 7 8 9 6 3 ) 5 5 1 9 7 6 ( , - , ) 1 9 8 2 7 4 5 ( , - , 6 2 3 8 8 8 1 , , 7 1 8 4 5 7 - - - - - , 5 6 8 8 6 6 9 2 , , ) 6 9 9 5 5 7 3 ( , 3 2 3 4 3 , ) 8 0 1 7 1 ( , ) 7 6 8 6 3 5 ( , ) 7 6 8 6 3 5 ( , - - , 2 4 5 4 3 6 9 2 , , ) 8 8 8 8 3 7 3 ( , - , ) 1 9 8 2 7 4 5 ( , , 6 2 3 8 8 8 1 , , 7 1 8 4 5 7 l a t o T , 8 6 1 8 3 3 8 6 , t s e r e t n I 1 3 4 0 8 5 , g n i l l o r t n o C , 7 3 7 7 5 7 7 6 , y t i u q E l s r e d o h e r a h S - - - - - - - - - - - 4 2 3 1 8 1 , l e v i t a u m u C r o f s e c n e r e f f i d n a p l i n g e r o f i s e c n e r r u c l n o i t a s n a r t k c o t s e e y o p m e l i p h s r e n w o e v r e s e R i d e n a t e R i s g n n r a e - - - - , 5 3 4 5 9 8 1 , , 1 4 8 3 9 3 6 1 , - - - - - - - 7 1 8 4 5 7 , , ) 2 4 2 4 6 1 1 ( , - 8 0 3 5 9 , - , 2 4 5 4 3 6 9 2 , , ) 3 2 2 8 8 3 2 1 ( , , ) 8 8 8 8 3 7 3 ( , - - - - - - - - s k s i r e v r e s e r i g n k n a B 1 8 9 1 1 , l i a c n a n fi - - - - - - ) 8 0 3 5 9 ( , t a s t e s s a e u a v l r i a f I C O h g u o r h t , ) 8 1 8 8 8 1 3 1 ( , , ) 1 9 8 2 7 4 5 ( , ) 9 4 2 3 ( , 9 4 2 3 , - - - - , 1 3 3 3 9 9 9 2 , - - - 0 3 2 5 1 , - - , 6 2 3 8 8 8 1 , l a t i p a C e v r e s e r 7 4 9 8 1 , - - 8 0 2 2 , - - - - - - - - - r o f e v r e s e R s e g n a h C r e d n u l o r t n o c n o m m o c r o f e v r e s e R s n o i t c a s n a r t l a r e n e G k s i r e v r e s e r l a r e n e G e v r e s e r l a g e L e v r e s e r d e u s s I i d a p d n a l a t i p a c p u - - - - - - - - - - - 3 8 1 8 , ) 5 5 1 9 7 6 ( , - - - - - - - - - - - - , 6 0 9 0 5 5 1 , - - - - - - - - - - - , 9 4 8 3 4 7 2 1 , - - - - - - - - - - - 8 0 4 6 0 8 , - - - - - - - - - - - 6 7 8 9 6 3 , , 8 5 8 6 9 0 7 2 , , 6 4 9 3 6 9 3 , , 4 3 1 5 2 8 9 2 , e c n a l a b g n i n n i g e B r e d n u s n o i t c a s n a r t l o r t n o c n o m m o c o t d e r r e f s n a r T r o f e v r e s e R e s a e r c n i l a t i p a C s e v r e s e r 3 2 0 2 , 1 3 . c e D r a e y e h t r o f t fi o r p t e N d i a p s d n e d i v i D n o n n i e g n a h C t s e r e t n i g n i l l o r t n o c s t e s s a l a i c n a n fi m o r f h g u o r h t e u l a v r i a f t a E R o t d e r r e f s n a r T f o n o i t i s i u q c a m o r f s e i r a i d i s b u s I C O x a t l a i c n a n fi n o ) s s o l ( e u l a v r i a f t a s t e s s a r e t f a I C O h g u o r h t / n i a g d e z i l a e r n u t e N o t ) m o r f ( d e r r e f s n a r T e v r e s e r k s i r g n i k n a b i n a l p p h s r e n w o k c o t s I C O h g u o r h t e u l a v l s e e y o p m e f o t s o C s e i c n e r r u c n g i e r o f e v i t a l u m u C ) P O S E ( e c n a l a b g n i d n E n o i t a l s n a r t s e c n e r e ff d i t b e d f o e u l a v r i a f n i L C E f o t c e ff E r i a f s t n e m u r t s n i t a d e r u s a e m 3 2 3 6 6 , 4 9 2 9 9 , ) 1 7 9 2 3 ( , ) 1 7 9 2 3 ( , - , 6 6 4 1 4 6 0 9 , 3 7 0 0 6 1 , , 3 9 3 1 8 4 0 9 , 3 5 3 8 4 1 , , 0 1 0 6 8 4 1 , , ) 1 9 6 8 6 8 6 1 ( , 5 5 1 1 2 , ) 2 7 9 0 7 6 ( , , 6 0 9 0 5 5 1 , , 7 0 7 0 4 8 9 3 , , 4 5 3 0 7 7 4 , , 0 1 0 5 9 1 0 3 , l ’ s r e d o h e r a h S n i f o t n e m e t a t S d e t a d i l o s n o C 192 • CIB Annual Report • 2024 2024 • CIB Annual Report • 193 Financial Statements / Consolidated All amounts are presented in EGP thousands , ) 6 9 7 3 0 4 5 ( , , 2 3 7 6 5 2 5 5 , - , 3 8 6 6 5 1 9 , - 9 4 9 6 3 9 , , 0 5 3 5 0 0 1 , 7 6 3 9 8 9 , , 1 2 3 9 1 8 2 5 1 , - - - - - - ) 7 6 3 7 3 ( , 8 3 3 0 6 , 4 4 0 3 8 1 , y t i u q E n o N l a t o T - , 0 7 5 6 3 2 - - - 0 7 5 6 3 2 , l a t o T t s e r e t n I y t i u q E , 6 6 4 1 4 6 0 9 , 3 7 0 0 6 1 , , 3 9 3 1 8 4 0 9 , g n i l l o r t n o C l s r e d o h e r a h S l e v i t a u m u C r o f s e c n e r e f f i d n a p l i n g e r o f i s e c n e r r u c l n o i t a s n a r t k c o t s e e y o p m e l i p h s r e n w o e v r e s e R - - , 0 1 0 6 8 4 1 , , 1 3 3 3 9 9 9 2 , , ) 9 2 4 6 6 3 5 ( , , 4 9 3 6 9 1 5 5 , - , 3 8 6 6 5 1 9 , - , 9 4 9 6 3 9 , 0 5 3 5 0 0 1 , - - - - - - - - - 3 5 3 8 4 1 , - - - - - - ) 5 2 1 3 2 6 ( , , 0 5 3 5 0 0 1 , 7 6 3 9 8 9 , 7 6 3 9 8 9 , - , 7 7 2 6 3 6 2 5 1 , , 0 2 7 7 3 1 1 , , 5 3 2 8 6 8 1 , l i a c n a n fi r o f e v r e s e R s e g n a h C i d e n a t e R i s g n n r a e s k s i r i g n k n a B t a s t e s s a e u a v l r i a f e v r e s e r I C O h g u o r h t l a t i p a C e v r e s e r , ) 3 4 9 8 9 3 3 2 ( , , ) 9 2 4 6 6 3 5 ( , , 4 9 3 6 9 1 5 5 , - , 4 2 2 0 7 3 - - - - - - 0 3 2 5 1 , - - - - ) 4 2 2 0 7 3 ( , , ) 1 9 6 8 6 8 6 1 ( , , 3 8 6 6 5 1 9 , ) 4 9 6 2 ( , 4 9 6 2 , - - - - , 3 8 8 1 9 7 6 5 , - - - 4 2 9 7 1 , - - 9 4 9 6 3 9 , , ) 3 8 2 5 4 1 7 ( , - - - - - - - - - 3 6 6 1 , - - - - - - - - - - 5 5 1 1 2 , ) 2 7 9 0 7 6 ( , 8 1 8 2 2 , ) 2 7 9 0 7 6 ( , r e d n u l o r t n o c n o m m o c r o f e v r e s e R s n o i t c a s n a r t l a r e n e G k s i r e v r e s e r l a r e n e G e v r e s e r l a g e L e v r e s e r d e u s s I i d a p d n a l a t i p a c p u , 6 0 9 0 5 5 1 , , 7 0 7 0 4 8 9 3 , , 4 5 3 0 7 7 4 , , 0 1 0 5 9 1 0 3 , e c n a l a b g n i n n i g e B 4 2 0 2 , 1 3 . c e D - - - - - - - - - - , 6 0 9 0 5 5 1 , - - 0 7 5 6 3 2 , e s a e r c n i l a t i p a C , 5 8 0 2 8 5 2 2 , , 0 2 3 8 3 4 1 , - - - - - - - - - - - - - - - - , 2 9 7 2 2 4 2 6 , , 4 7 6 8 0 2 6 , - - - - - - - - - , 0 8 5 1 3 4 0 3 , s t e s s a l a i c n a n fi m o r f h g u o r h t e u l a v r i a f t a E R o t d e r r e f s n a r T I C O / n i a g d e s i l a e r n u t e N l a i c n a n fi n o ) s s o l ( e u l a v r i a f t a s t e s s a r e t f a I C O h g u o r h t e h t r o f t fi o r p t e N r a e y x a t ) m o r f ( d e r r e f s n a r T k s i r g n i k n a b o t e v r e s e r t b e d f o e u l a v r i a f n i L C E f o t c e ff E r i a f s t n e m u r t s n i t a d e r u s a e m I C O h g u o r h t e u l a v l s e e y o p m e f o t s o C i p h s r e n w o k c o t s s e i c n e r r u c n g i e r o f n o i t a l s n a r t s e c n e r e ff d i e c n a l a b g n i d n E ) P O S E ( n a l p e v i t a l u m u C o t d e r r e f s n a r T s e v r e s e r d i a p s d n e d i v i D l ’ s r e d o h e r a h S n i f o t n e m e t a t S d e t a d i l o s n o C Notes To The Consolidated Financial Statements For the year Ended December 31, 2024 1. General information Commercial International Bank-Egypt (CIB) S.A.E. provides retail, corporate and investment banking services in various parts of Egypt through 198 branches and 14 units employing 8,290 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 Limited”, “Commercial international for finance”, “Damietta Shipping” and “Commercial International Africa Holding Company” in which the bank’s shares are 100%, 99.96%, 49.95% and 100% respectively. Financial statements have been approved by board of directors on February 18, 2025. 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 regulations and 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. • Minority shareholders (Non-Controlling Interest) 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 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 involve- ment 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. 194 • CIB Annual Report • 2024 2024 • CIB Annual Report • 195 Financial Statements / Consolidated 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. 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. 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; unreal- ized losses are also eliminated unless the cost cannot be recovered. The Bank unifies the important accounting policies among subsidiaries taking into consideration both industrial and geographical differences. 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. 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-controlling interest acquired is recorded as a capital trans- action 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. 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 year are translated 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 or Net trading from financial instruments at fair value through P&L for assets and liabilities for trading purposes. • 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 investments at fair value through comprehensive income (debt instruments) are analyzed between valuation differences that resulted from changes in the amortized cost 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 revaluation differences related to changes in the amortized cost are recognized in interest income from loans and similar income 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 of the ownership rights with the difference in the changes 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 and then are recognized in the income statement 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) (ii) (iii) level one is measured at quoted prices (unadjusted) in active markets for identical assets or liabilities. level two measurements are valuation techniques with all material inputs observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). level three measurements are valuations not based on solely observable market data (that is, the measurement requires significant unobservable inputs). 196 • CIB Annual Report • 2024 2024 • CIB Annual Report • 197 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 finance or internal administra- tive or ownership costs. 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 (excluding expected credit losses) 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 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 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 Methods of Measurement according to Business Models Financial Instrument Amortized Cost Equity Instruments Not Applicable Debt Instruments / Loans & Facilities Business Model of Assets held for Collecting Contractual Cash Flows Fair Value Through Other Comprehensive Income An irrevocable election at Initial Recognition Business Model of Assets held for Collecting Contractual Cash Flows & Selling Through Profit or Loss 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, )iii) 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. 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 contractual 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 maximizing cash flows by selling • The objective of the business model is to retain the financial as- sets to collect the contractual cash flows of the principal amount of the investment and interest. • Sale is an exceptional event for the purpose of this model and under the terms of the criterion of a deterioration in the credit- worthiness 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 busi- ness 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. • The conditions for classifying financial assets at fair value through profit and loss take into account: ■ It must be registered on a local or foreign stock exchange. ■ It must have had active trading during the three months pre- ceding the date of acquisition. Financial assets – reclassification. Financial instruments are reclassified only when the business model for managing the portfolio 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 expo- sures arising from loan commitments. 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 for default events possible within the next 12 months or until contractual maturity, (“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 (“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. For Stage 2 and stage 3 loans the ECL is measured on lifetime basis. 198 • CIB Annual Report • 2024 2024 • CIB Annual Report • 199 Financial Statements / Consolidated Transfer between the three stages: Transfer from second stage to first stage: The financial asset shall not be transferred from the second stage to the first stage unless all the quantitative and qualitative elements of the first stage are met and the full past dues of principal and interest are paid after a period of three months regular payment and fulfillment of first stage requirements . Transfer from third stage to second stage: The financial asset shall not be transferred from the third stage to the second stage until all the following conditions have been met: • Completion of all quantitative and qualitative elements of the second stage. • Repayment of 25% of the balance of the outstanding financial assets, including unearned interest. • Regularity of payment for at least 12 months. Financial assets – write-off. Financial assets are written-off, in whole or in part, when the bank exhausts 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 except Gains / Losses 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 in net trading income unless the Bank chooses to designate the hybrid contact as at fair value through profit or loss. 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: • 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. 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 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 trading income’ line item of the income statement. 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 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 assets at fair value through profit or loss. 2.8. Interest income and expense Interest income and expense for all financial instruments except for those classified as held-for-trading or at fair value through profit or loss 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 loans 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 calculated 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 settle- ment of the outstanding loan balance. 200 • CIB Annual Report • 2024 2024 • CIB Annual Report • 201 Financial Statements / Consolidated 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 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. 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. Property and equipment Land and buildings comprise mainly branches and offices. All property, plant and equipment are stated at historical cost less depre- ciation and impairment losses if any. 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 year 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: Asset Type Buildings Leasehold improvements Furniture and safes Air-conditioners Vehicles Computers and core systems Fixtures and fittings Useful Life 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 periodically, 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. Impairment of non-financial assets 2.13. 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. A previously recognized impairment loss relating to a non-financial assets may be reversed in part or in full when a change in circumstances leads to a change in the estimates used to determine the non-financial 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. 2.13.1. 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. 2.14. 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. 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 year. 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. 202 • CIB Annual Report • 2024 2024 • CIB Annual Report • 203 Financial Statements / Consolidated 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 Bank, treasury bills and other eligible bills, amounts due from other banks and short-term government securities. 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. 2.16. 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. 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. 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 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 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. 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 to changes in presentation in the current year where necessary. 2.22. 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 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 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: 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. Income tax 2.18. 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. (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 statement of financial position with the results of discontinued operations presented sepa- rately in the income statement. 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. 204 • CIB Annual Report • 2024 2024 • CIB Annual Report • 205 Financial Statements / Consolidated 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, definition of 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 correctly estimate the actual credit loss. The bank used forward-looking information for measurement of ECL, is primarily sourced from government and international financial institutions. The most significant forward-looking assumptions, for both corporate and retail, 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 2,868,724 thousand as of 31 December 2024 (31 December 2023: by EGP 1,817,837 thousand). A corresponding change towards the upturn scenario would result in a decrease in ECL by EGP 2,868,724 thousand as of 31 December 2024 (31 December 2023: by EGP 1,817,788 thousand). A 10% increase or decrease in LGD estimates would result in an increase or decrease in total expected credit loss allowances of EGP 3,462,531 thousand at 31 December 2024 (31 December 2023: increase or decrease of EGP 2,055,659 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. 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. 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 loans categories 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. 206 • CIB Annual Report • 2024 2024 • CIB Annual Report • 207 Financial Statements / Consolidated 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. 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. 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. Impairment and provisioning policies 3.1.3. The internal category system described in Note 3.1.1 focus on the credit-quality mapping from the lending and investment activi- ties perspective. Conversely, for only financial reporting purposes impairment losses are recognized for that has been incurred on the balance sheet date when there is 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 categories. 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, 2024 December 31, 2023 Loans and advances (%) Impairment provision (%) Loans and advances (%) Impairment provision (%) 85.19 10.79 0.74 3.28 46.86 24.31 5.97 22.86 81.87 13.98 0.58 3.57 32.83 36.63 2.59 27.95 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 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. difficulties facing the borrower • Deterioration of the collateral value • Deterioration of the credit situation 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 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. The Bank’s policy requires the review of all financial assets 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 statis- tical techniques. 208 • CIB Annual Report • 2024 2024 • CIB Annual Report • 209 Financial Statements / Consolidated 3.1.4. Model of measuring the general banking risk In addition to the four categories of the Bank’s internal credit category indicated in note 3.1.1, management classifies based on more detailed sub-rating 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 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 Provision% Internal rating Categorization 0% 1% 1% 2% 2% 3% 5% 20% 50% 100% 1 1 1 1 1 2 3 4 4 4 Performing loans Performing loans Performing loans Performing loans Performing loans Regular watching Watch list Non performing loans Non performing loans Non performing loans 3.1.5. Maximum exposure to credit risk before collateral held Dec. 31, 2024 Dec. 31, 2023 In balance sheet items exposed to credit risk Gross Due from banks Less: ECL Gross loans and advances to banks Unamortized bills discount 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 and other contingent liabilities Letters of credit (import and export) Letter of guarantee Total 270,833,659 (3,825) 9,863,221 (174,320) (133,491) 3,731,857 15,027,813 54,941,264 5,794,632 87,461,400 144,428,805 79,963,890 1,033,383 (238,286) (84,093) (45,481,562) (3,036,429) 819,711 401,076,921 35,151,259 1,060,975,809 7,052,997 11,932,613 19,179,770 257,993,539 296,158,919 231,087,402 (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 13,018,038 750,914,062 8,021,170 4,800,405 9,075,124 160,776,153 182,672,852 The above table represents the Bank’s Maximum exposure to credit risk on December 31, 2024, 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, 33.28% of the total maximum exposure is derived from loans and advances to banks and customers against 31.40% on December 31, 2023, while investments in debt instruments represent 37.80% against 35.94% on December 31, 2023. 210 • CIB Annual Report • 2024 2024 • CIB Annual Report • 211 Financial Statements / Consolidated 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: • 95.98% of the loans and advances are concentrated in the top two grades of the internal credit risk rating system against 95.85% on December 31, 2023 • Loans and advances assessed individualy are valued EGP 13,254,953 thousand against EGP 9,587,536 thousand on December 31, 2023 • The Bank has implemented more prudent processes when granting loans and advances during the financial year ended on December 31, 2024. • 86.94% of the investments in debt Instruments are Egyptian sovereign instruments against 88.41% on December 31, 2023. 3.1.6. Loans and advances Loans and advances balances are summarized as follows: Gross Loans and advances Less: ECL Unamortized bills discount Unamortized syndicated loans discount Suspended credit account Net Dec.31, 2024 Dec.31, 2023 Loans and advances to customers 392,383,044 Loans and advances to banks 9,863,221 Loans and advances to customers 266,375,398 Loans and advances to banks 823,739 45,481,562 238,286 84,093 3,036,429 343,542,674 133,491 174,320 - - 9,555,410 29,237,737 509,523 145,003 1,497,199 234,985,936 1,291 - - - 822,448 Expected credit losses for loans and advances totaled EGP 45,615,053 thousand. Loans and advances, balances and expected credit losses to banks divided by stages: Dec.31, 2024 Loans Expected credit losses Net of ECL Stage 1 12 months 2,164,119 (30) 2,164,089 Stage 2 Life time 7,699,102 (133,461) 7,565,641 Stage 3 Life time - - - Total 9,863,221 (133,491) 9,729,730 Off balance sheet items exposed to credit risk and expected credit losses divided by stages: Dec.31, 2024 Facilities and guarantees Expected credit losses Net of ECL Stage 1 12 months 252,395,002 (7,049,948) Stage 2 Life time 29,789,216 (5,116,697) Stage 3 Life time 6,921,704 (3,439,478) Total 289,105,922 (15,606,123) 245,345,054 24,672,519 3,482,226 273,499,799 Total balances of loans and advances 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 Stage 3 Life time 838,134 8,749,402 9,587,536 Total 60,126,332 206,249,066 266,375,398 During the year, the Bank’s total loans and advances increased by 50.54% 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 . Expected credit losses for loans and advances to customers divided by stages: Total balances of loans and advances to customers divided by stages: Dec.31, 2024 Individuals Corporate and Business Banking Total Stage 1 12 months 73,490,959 191,684,590 265,175,549 Stage 2 Life time 5,035,557 108,916,985 113,952,542 Stage 3 Life time 969,050 12,285,903 13,254,953 Total 79,495,566 312,887,478 392,383,044 Dec.31, 2023 Individuals Corporate and Business Banking Total Stage 1 Expected credit losses over 12 months 1,551,112 4,410,307 Stage 2 Expected credit losses Over a lifetime that is not creditworthy 205,628 14,882,887 Stage 3 Expected credit losses Over a lifetime Credit default 486,555 7,701,248 5,961,419 15,088,515 8,187,803 Total 2,243,295 26,994,442 29,237,737 Expected credit losses for loans and advances to customers divided by stages: Loans and advances, balances and expected credit losses to banks divided by stages: Stage 1 Expected credit losses over 12 months 2,901,607 7,381,514 Stage 2 Expected credit losses Over a lifetime that is not creditworthy 165,037 24,585,991 Stage 3 Expected credit losses Over a lifetime Credit default 758,625 9,688,788 10,283,121 24,751,028 10,447,413 Total 3,825,269 41,656,293 45,481,562 Dec.31, 2024 Individuals Corporate and Business Banking Total 212 • CIB Annual Report • 2024 Dec.31, 2023 Loans Expected credit losses Net of ECL 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 2024 • CIB Annual Report • 213 Financial Statements / Consolidated Off balance sheet items exposed to credit risk and expected credit losses divided by stages: Individual Loans: Dec.31, 2023 Facilities and guarantees Expected credit losses Net of ECL 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 Expected credit losses divided by internal classification: Corporate and Business Banking: Stage 1 Expected credit losses over 12 months 6,820,290 561,224 - - Stage 2 Expected credit losses over a lifetime that is not creditworthy 11,518,502 10,361,085 2,706,404 - Stage 3 Expected credit losses over a lifetime credit default - - 17,867 9,670,921 7,381,514 24,585,991 9,688,788 Scope of probability of default (PD) 1%-11% 11%-21% 21%-36% 100% - Stage 1 Expected credit losses over 12 months 2,901,607 - - - Stage 2 Expected credit losses over a lifetime that is not creditworthy - 164,910 127 - Stage 3 Expected credit losses over a lifetime credit default - - 50 758,575 2,901,607 165,037 758,625 Scope of probability of default (PD) 1%-10% >11% >11% 100% - Dec.31, 2024 Performing loans (1-5) Regular watching (6) Watch list (7) Non-performing loans (8-10) Total Individual Loans: Dec.31, 2024 Performing loans (1-5) Regular watching (6) Watch list (7) Non-performing loans (8-10) Total Total 18,338,792 10,922,309 2,724,271 9,670,921 41,656,293 Total 2,901,607 164,910 177 758,575 3,825,269 The total balances of loans and facilities divided according to the internal classification: Corporate and Business Banking: Dec.31, 2024 Performing loans (1-5) Regular watching (6) Watch list (7) Non-performing loans (8-10) Total Scope of probability of default (PD) 1%-11% 11%-21% 21%-36% 100% - Stage 1 12 months 178,607,998 13,076,592 - - Stage 2 Life time 80,712,454 25,282,401 2,922,130 - 191,684,590 108,916,985 Stage 3 Life time - - 51,942 12,233,961 12,285,903 Total 259,320,452 38,358,993 2,974,072 12,233,961 312,887,478 Dec.31, 2024 Performing loans (1-5) Regular watching (6) Watch list (7) Non-performing loans (8-10) Total Scope of probability of default (PD) 1%-10% >11% >11% 100% - Stage 1 12 months 73,490,959 - - - 73,490,959 Stage 2 Life time - 5,034,913 644 - 5,035,557 Stage 3 Life time - - 515 968,535 969,050 Total 73,490,959 5,034,913 1,159 968,535 79,495,566 Expected credit losses divided by internal classification: Corporate and Business Banking: 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 4,410,307 14,882,887 7,701,248 Scope of probability of default (PD) 1%-12% 12%-21% 21%-37% 100% - Scope of probability of default (PD) 1%-10% >11% >11% 100% - Stage 1 Expected credit losses over 12 months 1,551,112 - - - 1,551,112 Stage 2 Expected credit losses over a lifetime that is not creditworthy 205,544 84 - 205,628 Stage 3 Expected credit losses over a lifetime credit default - - - 486,555 486,555 Dec.31, 2023 Performing loans (1-5) Regular watching (6) Watch list (7) Non-performing loans (8-10) Total Individual Loans: Dec.31, 2023 Performing loans (1-5) Regular watching (6) Watch list (7) Non-performing loans (8-10) Total Total 8,048,705 10,504,560 756,446 7,684,731 26,994,442 Total 1,551,112 205,544 84 486,555 2,243,295 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) Total Scope of probability of default (PD) 1%-12% 12%-21% 21%-37% 100% - Stage 1 12 months 117,477,290 11,677,875 - - 129,155,165 Stage 2 Life time 46,809,570 20,062,699 1,472,230 68,344,499 Stage 3 Life time - - 46,604 8,702,798 8,749,402 Total 164,286,860 31,740,574 1,518,834 8,702,798 206,249,066 214 • CIB Annual Report • 2024 2024 • CIB Annual Report • 215 Financial Statements / Consolidated Individual Loans: Dec.31, 2023 Performing loans (1-5) Regular watching (6) Watch list (7) Non-performing loans (8-10) Total Scope of probability of default (PD) 1%-10% >11% >11% 100% - Stage 1 12 months 53,641,448 - - - 53,641,448 Stage 2 Life time - 5,608,073 38,677 - 5,646,750 Stage 3 Life time - - 207 837,927 838,134 Total 53,641,448 5,608,073 38,884 837,927 60,126,332 The following tables provide information on the quality of financial assets subject to ECL calculation at the end of financial year: Dec.31, 2024 Due from banks Credit rating Performing loans Regular watching Watch list Non-performing loans Total Less: ECL Net Individual Loans Credit rating Performing loans Regular watching Watch list Non-performing loans Total Less: ECL Net Corporate and Business Banking Credit rating Performing loans Regular watching Watch list Non-performing loans Total Less: ECL Net Total 28,280,616 - - - 28,280,616 (3,825) 28,276,791 Total 73,490,959 5,034,913 1,159 968,535 79,495,566 Stage 1 12 months 28,280,616 - - - 28,280,616 (3,825) 28,276,791 Stage 2 Life time - - - - - - - - Stage 3 Life time - - - - - - - - Stage 1 12 months Stage 2 Life time Stage 3 Life time 73,490,959 - - - 73,490,959 (2,901,607) 70,589,352 Stage 1 12 months 178,607,998 13,076,592 - - - 5,034,913 644 - 5,035,557 (165,037) 4,870,520 Stage 2 Life time 80,712,454 25,282,401 2,922,130 - - - 515 968,535 969,050 (758,625) (3,825,269) 210,425 75,670,297 Stage 3 Life time - - 51,942 12,233,961 Total 259,320,452 38,358,993 2,974,072 12,233,961 191,684,590 108,916,985 12,285,903 312,887,478 (7,381,514) (24,585,991) (9,688,788) (41,656,293) 184,303,076 84,330,994 2,597,115 271,231,185 Debt Instruments at Fair value through OCI Credit rating Stage 1 12 months Stage 2 Life time Stage 3 Life time 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 Less: ECL Net 45,126,560 86,672,222 - - 131,798,782 (3,790,195) Stage 1 12 months 4,086,865 6,987,590 - - 11,074,455 (466,982) 10,607,473 5,096,905 - - - 5,096,905 (15,025) Stage 2 Life time - - - - - - Stage 3 Life time - - - - - - - - - - - - - - Total 50,223,465 86,672,222 - - 136,895,687 (3,805,220) Total 4,086,865 6,987,590 - - 11,074,455 (466,982) 10,607,473 The following tables provide information on the quality of financial assets subject to ECL calculation at the end of financial year: Dec.31, 2023 Due from banks Credit rating Performing loans Regular watching Watch list Non-performing loans Total Less: ECL Net Individual Loans 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 5,436,043 - - - 5,436,043 (2,158) 5,433,885 - - - - - - - - - - - - - - Stage 1 12 months Stage 2 Life time Stage 3 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 - - 207 837,927 838,134 Total 5,436,043 - - - 5,436,043 (2,158) 5,433,885 Total 53,641,448 5,608,073 38,884 837,927 60,126,332 (486,555) (2,243,295) 351,579 57,883,037 216 • CIB Annual Report • 2024 2024 • CIB Annual Report • 217 Financial Statements / Consolidated Corporate and Business Banking 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 117,477,290 11,677,875 - - 129,155,165 46,809,570 20,062,699 1,472,230 - 68,344,499 - - 46,604 8,702,798 164,286,860 31,740,574 1,518,834 8,702,798 8,749,402 206,249,066 (4,410,307) (14,882,887) (7,701,248) (26,994,442) 124,744,858 53,461,612 1,048,154 179,254,624 Debt Instruments at Fair value through OCI Credit rating Stage 1 12 months Stage 2 Life time Stage 3 Life time 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 Less: ECL Net 31,311,103 47,951,170 - - 79,262,273 (2,868,271) Stage 1 12 months 1,045,061 4,071,573 - - 5,116,634 (198,469) 4,918,165 - - - - - - - - - - - - Stage 2 Life time Stage 3 Life time - - - - - - - - - - - - - - Total 31,311,103 47,951,170 - - 79,262,273 (2,868,271) Total 1,045,061 4,071,573 - - 5,116,634 (198,469) 4,918,165 The table below displays ECL changes within 12 months resulting from the following factors: Dec.31, 2024 Due from banks Beginning balance Released/charged during the year Transferred to stage 1 Transferred to stage 2 Transferred to stage 3 Cumulative foreign currencies translation differences Ending balance Individual Loans Beginning balance Released/charged during the year Write off during the year Recoveries Ending balance Corporate and Business Banking Beginning balance Released/charged during the year Transferred to stage 1 Transferred to stage 2 Transferred to stage 3 ECL Transfer to Other provisions Recoveries Write off during the year Cumulative foreign currencies translation differences Ending balance Debt Instruments at Fair value through OCI Beginning balance Released/charged during the year Transferred to stage 1 Transferred to stage 2 Transferred to stage 3 Cumulative foreign currencies translation differences Ending balance Stage 1 12 months ECL 2,158 Stage 2 Life time ECL - Stage 3 Life time ECL - - - - - - - Stage 2 Life time ECL 205,628 (40,591) - - 165,037 Stage 2 Life time ECL 14,882,887 960,600 (197,123) 2,185,566 (875,843) - - - 7,629,904 - - - - - - Stage 3 Life time ECL 486,555 378,579 (264,191) 157,682 758,625 Stage 3 Life time ECL 7,701,248 (876,043) - (1,905,515) 905,948 (1,276,440) 710,589 (248,830) 4,677,831 Total 2,158 (341) - - - 2,008 3,825 Total 2,243,295 1,688,483 (264,191) 157,682 3,825,269 Total 26,994,442 2,948,219 - - - (1,276,440) 710,589 (248,830) 12,528,313 24,585,991 9,688,788 41,656,293 Stage 2 Life time ECL - 14,179 - 846 - - 15,025 Stage 3 Life time ECL - - - - - - - Total 2,868,271 (392,956) - - - 1,329,905 3,805,220 (341) - - - 2,008 3,825 Stage 1 12 months ECL 1,551,112 1,350,495 - - 2,901,607 Stage 1 12 months ECL 4,410,307 2,863,662 197,123 (280,051) (30,105) - - - 220,578 7,381,514 Stage 1 12 months ECL 2,868,271 (407,135) - (846) - 1,329,905 3,790,195 218 • CIB Annual Report • 2024 2024 • CIB Annual Report • 219 Financial Statements / Consolidated Debt Instruments at amortized cost Beginning balance Released/charged during the year Transferred to stage 1 Transferred to stage 2 Transferred to stage 3 Cumulative foreign currencies translation differences Ending balance Stage 1 12 months ECL 198,469 Stage 2 Life time ECL - Stage 3 Life time ECL - 149,009 - - - 119,504 466,982 - - - - - - - - - - - - The table below displays ECL changes within 12 months resulting from the following factors: Dec.31, 2023 Due from banks Beginning balance Released/charged during the year Transferred to stage 1 Transferred to stage 2 Transferred to stage 3 Ending balance Individual Loans Beginning balance Released/charged during the year Write off during the year Recoveries Ending balance Corporate and Business Banking Beginning balance Released/charged during the year Transferred to stage 1 Transferred to stage 2 Transferred to stage 3 Recoveries Write off during the year Cumulative foreign currencies translation differences Ending balance Stage 1 12 months ECL 38,884 (36,726) - - - 2,158 Stage 1 12 months ECL 1,024,932 526,180 - - 1,551,112 Stage 1 12 months ECL 2,631,413 1,670,168 148,230 (70,107) (33,076) - - 63,679 4,410,307 Stage 2 Life time ECL 10,508 (10,508) - - - - Stage 2 Life time ECL 171,725 33,903 - - 205,628 Stage 2 Life time ECL 11,053,147 1,182,352 (148,230) 328,769 (7,716) - - 2,474,565 Stage 3 Life time ECL - - - - - - Stage 3 Life time ECL 397,479 204,891 (241,414) 125,599 486,555 Stage 3 Life time ECL 9,258,016 (1,296,705) - (258,662) 40,792 51,666 (2,236,815) 2,142,956 Total 198,469 149,009 - - - 119,504 466,982 Total 49,392 (47,234) - - - 2,158 Total 1,594,136 764,974 (241,414) 125,599 2,243,295 Total 22,942,576 1,555,815 - - - 51,666 (2,236,815) 4,681,200 14,882,887 7,701,248 26,994,442 Debt Instruments at Fair value through OCI Beginning balance Released/charged during the year Transferred to stage 1 Transferred to stage 2 Transferred to stage 3 Write off during the year Cumulative foreign currencies translation differences Ending balance Debt Instruments at amortized cost Beginning balance Released/charged during the year Transferred to stage 1 Transferred to stage 2 Transferred to stage 3 Write off during the year Cumulative foreign currencies translation differences Ending balance Stage 1 12 months ECL 979,945 1,886,423 - - - - 1,903 2,868,271 Stage 1 12 months ECL 78,837 119,025 - - - - 607 198,469 Stage 2 Life time ECL - Stage 3 Life time ECL - - - - - - - - - - - - - - - Stage 2 Life time ECL - Stage 3 Life time ECL - - - - - - - - - - - - - - - Total 979,945 1,886,423 - - - - 1,903 2,868,271 Total 78,837 119,025 - - - - 607 198,469 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 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: Corporate Loans and advances to customers Total Dec.31, 2024 Dec.31, 2023 24,528,840 24,528,840 18,472,670 18,472,670 3.1.7. Financial investments: The following tables provide analysis of financial investment balances by rating agencies at the end of the year: Dec.31, 2024 Amortized cost AAA to AA+ AA to AA- A+ to A- Less than A- Not rated Total Stage 1 12 months ECL - - - 168,118,219 - 168,118,219 Stage 2 Life time ECL - Stage 3 Life time ECL - - - - - - - - - - - Total - - - 168,118,219 - 168,118,219 220 • CIB Annual Report • 2024 2024 • CIB Annual Report • 221 Financial Statements / Consolidated Dec.31, 2024 Fair value through OCI AAA to AA+ AA to AA- A+ to A- Less than A- Not rated Total Stage 1 12 months ECL 13,289,883 1,898,512 1,215,276 211,458,126 - 227,861,797 Stage 2 Life time ECL - - - 5,096,905 - 5,096,905 Stage 3 Life time ECL - - - - - - Total 13,289,883 1,898,512 1,215,276 216,555,031 - 232,958,702 The following table displays analysis of expected credit losses on financial investments by rating agencies at the end of the year: Dec.31, 2024 Fair value through OCI & Amortized cost AAA to AA+ AA to AA- A+ to A- Less than A- Not rated Total Stage 1 Expected credit losses over 12 months - - - 4,257,177 - 4,257,177 Stage 2 Expected credit losses over a lifetime that is not creditworthy - Stage 3 Expected credit losses over a lifetime credit default - - - 15,025 - 15,025 - - - - - 3.1.7. Financial investments: The following tables provide analysis of financial investment balances by rating agencies at the end of the year: Dec.31, 2023 Amortized cost AAA to AA+ AA to AA- A+ to A- Less than A- Not rated Total Dec.31, 2023 Fair value through OCI AAA to AA+ AA to AA- A+ to A- Less than A- Not rated Total 222 • CIB Annual Report • 2024 Stage 1 12 months ECL - - - 38,341,019 - 38,341,019 Stage 1 12 months ECL - - - 231,556,229 - 231,556,229 Stage 2 Life time ECL - Stage 3 Life time ECL - - - - - - - - - - - Stage 2 Life time ECL - Stage 3 Life time ECL - - - - - - - - - - - Total - - - 4,272,202 - 4,272,202 Total - - - 38,341,019 - 38,341,019 Total - - - 231,556,229 - 231,556,229 The following table displays analysis of expected credit losses on financial investments by rating agencies at the end of the year: Dec.31, 2023 Fair value through OCI & Amortized cost AAA to AA+ AA to AA- A+ to A- Less than A- Not rated Total Stage 1 Expected credit losses over 12 months - - - 3,066,740 - 3,066,740 Stage 2 Expected credit losses over a lifetime that is not creditworthy - Stage 3 Expected credit losses over a lifetime credit default - - - - - - - - - - - Total - - - 3,066,740 - 3,066,740 3.1.8. Concentration of risks of financial assets with credit risk exposure 3.1.8.1. Geographical sectors The following table 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. Dec.31, 2024 Gross due from banks Less: ECL Gross loans and advances to banks Unamortized bills discount 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, 2023 Greater Cairo 201,412,533 - 3,558,716 (57,131) (6,245) 2,609,592 12,008,842 39,020,961 5,558,112 77,164,832 93,270,978 77,801,024 478,683 (231,463) (84,093) Alex, Delta and Sinai - - - - - 812,452 2,522,141 12,567,869 185,198 6,879,654 38,577,326 2,162,866 554,700 (6,823) Upper Egypt Outside Egypt 69,421,126 (3,825) - - - - - 6,304,505 (117,189) (127,246) 269,030 496,830 3,289,287 30,006 2,832,639 10,759,882 - - - 40,783 63,147 21,316 584,275 1,820,619 - - - Total 270,833,659 (3,825) 9,863,221 (174,320) (133,491) 3,731,857 15,027,813 54,941,264 5,794,632 87,461,400 144,428,805 79,963,890 1,033,383 (238,286) - - - (84,093) (35,483,422) (3,020,028) (5,495,566) (336) (4,294,283) (16,065) (208,291) (45,481,562) (3,036,429) - - - 819,711 819,711 377,524,909 851,526,800 58,759,481 13,367,326 23,552,012 102,170,943 401,076,921 1,025,824,550 657,382,474 42,805,879 9,179,022 28,528,649 737,896,024 2024 • CIB Annual Report • 223 Financial Statements / Consolidated l a t o T , 9 5 6 3 3 8 0 7 2 , ) 5 2 8 3 ( , , 1 2 2 3 6 8 9 , , ) 0 2 3 4 7 1 ( , ) 1 9 4 3 3 1 ( , 7 5 8 1 3 7 3 , , 3 1 8 7 2 0 5 1 , , 4 6 2 1 4 9 4 5 , , 2 3 6 4 9 7 5 , , 0 0 4 1 6 4 7 8 , , 5 0 8 8 2 4 4 4 1 , , 0 9 8 3 6 9 9 7 , , 3 8 3 3 3 0 1 , , ) 6 8 2 8 3 2 ( ) 3 9 0 4 8 ( , 1 1 7 9 1 8 , , ) 9 2 4 6 3 0 3 ( , , ) 2 6 5 1 8 4 5 4 ( , , 1 2 9 6 7 0 1 0 4 , , 4 2 0 6 9 8 7 3 7 , , 0 5 5 4 2 8 5 2 0 1 , , l i a u d v d n i I - - - - - , 7 5 8 1 3 7 3 , , 3 1 8 7 2 0 5 1 , , 4 6 2 1 4 9 4 5 , - - - - - ) 0 3 ( , 2 3 6 4 9 7 5 , , ) 8 6 2 5 2 8 3 ( , - - , 8 6 2 0 7 6 5 7 , , 6 0 0 3 8 8 7 5 , , ) 5 2 0 4 5 5 2 ( , - , 3 9 8 8 2 9 5 4 , , 4 8 4 4 7 4 0 3 , - - , ) 6 9 0 2 4 9 8 ( , , 0 1 9 8 3 1 9 6 3 , , ) 6 2 8 5 8 7 8 1 ( , - - ) 7 0 7 9 6 ( , - - - - - 0 0 0 5 , - ) 9 7 9 ( ) 4 7 5 1 0 5 ( , ) 2 7 8 0 6 1 ( , ) 3 9 0 4 8 ( , - ) 7 7 6 7 ( , , ) 4 6 0 3 2 7 1 ( , , ) 8 3 2 1 1 0 1 1 ( , , 3 8 3 8 2 0 1 , - - ) 5 2 4 1 8 4 ( , - - 1 1 7 9 1 8 , , 1 1 0 8 3 9 1 3 , , 7 9 1 6 7 6 8 , , 2 5 0 1 3 5 6 , - - - 6 5 3 5 8 4 , ) 6 9 4 2 9 6 ( , , 6 9 7 8 0 0 4 4 4 , , 9 5 1 4 5 1 0 9 2 , , 3 5 8 3 4 7 6 , , 4 4 6 5 2 6 5 , , 2 3 8 5 8 1 7 1 , , 3 3 8 3 4 1 8 0 1 , , 5 7 0 3 4 1 8 2 3 , , 9 5 8 0 7 0 6 1 , , 3 6 0 5 1 5 1 6 , , 9 0 8 2 7 1 6 7 2 , , 3 4 4 0 6 1 8 1 , , 0 8 3 5 1 7 4 4 , , 3 3 7 0 3 0 8 , , 1 5 6 7 3 0 4 , , 9 4 1 2 1 9 3 1 , , 5 5 7 3 0 2 3 , , 6 6 8 5 0 5 3 , , 2 8 3 5 5 0 0 1 , , 4 9 9 0 0 5 8 3 , , 3 0 6 0 6 5 2 7 , , 8 2 6 2 6 4 4 , , 0 0 1 9 6 8 1 6 , , 3 1 6 2 9 5 5 , , 3 9 1 4 5 5 7 , - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ) 5 2 8 3 ( , , 1 2 2 3 6 8 9 , - - - - ) 0 2 3 4 7 1 ( , ) 1 9 4 3 3 1 ( , , 9 5 6 3 3 8 0 7 2 , s e i t i v i t c a r e h t O r o t c e s e d a r t l i a t e r e t a t s e l a e R g n i r u t c a f u n a M s n o i t u t i t s n i t n e m n r e v o G l d n a e a s e o h W l l i a c n a n F i . s e i t i v i t c a s r e m o t s u c s › k n a B e h t y b d e z i r o g e t a c e u l a v k o o b r i e h t t a e r u s o p x e t i d e r c n i a m ’ s p u o r G e h t 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. 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. s r o t c e s y r t s u d n I . 2 . 8 . 1 . 3 s e s y l a n a e l b a t g n w o i l l o f e Th o t s e c n a v d a d n a s n a o l s s o r G s k n a b t n u o c s i d s l l i b d e z i t r o m a n U s r e m o t s u c o t s e c n a v d a d n a s n a o l s s o r G L C E s k n a b m o r f e u d s s o r G 4 2 0 2 , 1 3 . c e D L C E : l a u d i v i d n I s d r a c t i d e r C s t f a r d r e v O s n a o l l a n o s r e P : e t a r o p r o C s n a o l t c e r i D s t f a r d r e v O s e g a g t r o M s n a o l d e t a c i d n y S s n a o l r e h t O t n u o c s i d s l l i b d e z i t r o m a n U d e t a c i d n y s d e z i t r o m a n U t n u o c s i d s n a o l t n u o c c a t i d e r c d e d n e p s u S l a i c n a n fi e v i t a v i r e D s t n e m u r t s n i : s t n e m t s e v n i l a i c n a n i F s t n e m u r t s n i t b e D - , 1 3 r e b m e c e D t a s a l a t o T 3 2 0 2 l a t o T L C E 224 • CIB Annual Report • 2024 2024 • CIB Annual Report • 225 Financial Statements / Consolidated 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 Total VaR Trading portfolio VaR by risk type Foreign exchange risk Interest rate risk -For trading purposes Total VaR Non trading portfolio VaR by risk type - Interest rate risk Total VaR Last 12 months ended 31/12/2024 Last 12 months ended 31/12/2023 Medium 36,295 371,110 328,629 42,481 318,479 High 100,953 767,629 518,782 248,847 508,111 Low 656 170,967 164,234 6,733 164,078 Medium 16,184 257,479 255,617 1,862 135,847 High 103,290 502,517 495,768 6,749 309,967 Low 228 139,481 139,248 233 58,224 Last 12 months ended 31/12/2024 Last 12 months ended 31/12/2023 Medium 36,295 42,481 42,481 54,639 High 100,953 248,847 248,847 306,713 Low 656 6,733 6,733 656 Medium 16,184 1,862 1,862 16,184 High 103,290 6,749 6,749 103,290 Low 228 233 233 228 Last 12 months ended 31/12/2024 Last 12 months ended 31/12/2023 Medium 328,629 328,629 High 518,782 518,782 Low 164,234 164,234 Medium 255,617 255,617 High 495,768 495,768 Low 139,248 139,248 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. 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, 2024 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 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, 2023 Total financial liabilities as of December 31, 2023 Net financial position as of December 31, 2023 EGP USD EUR GBP Equivalent EGP Total Other 120,536,667 60,000,010 - 281,873,581 25,383 10,117,737 178,453,499 9,863,221 100,924,708 794,328 3,736,591 28,718,601 - 7,458,984 - 347,889 2,911,143 - 15,653 - 1,792,136 750,406 - 2,110,118 - 136,531,020 270,833,659 9,863,221 392,383,044 819,711 285,778,747 98,193 748,312,581 108,558,196 6,268,029 630,363 408,711,689 46,182,205 3,905,048 1,862,033 403,097,368 98,193 6,514,693 1,213,626,216 606,118 562,424,161 40,666 - 166,073 563,237,018 1,381,489 362,687,629 59,905 5,067,781 22,917,007 392,113,811 39,245 37,340,640 - - 879,309 38,259,194 8,033 3,881,674 - - - 3,889,707 - 6,261,854 - - - 2,034,885 972,595,958 100,571 5,067,781 23,962,389 6,261,854 1,003,761,584 185,075,563 16,597,878 7,923,011 15,341 252,839 209,864,632 654,414,799 172,013,166 11,885,282 2,071,917 2,675,045 843,060,209 464,142,758 214,309,618 22,676,421 2,002,633 2,262,242 705,393,672 190,272,041 (42,296,452) (10,791,139) 69,284 412,803 137,666,537 226 • CIB Annual Report • 2024 2024 • CIB Annual Report • 227 Financial Statements / Consolidated Interest rate risk 3.2.4. The Bank addresses exposure to the effects of fluctuations in the prevailing levels of market interest rates that arises from the re-pricing maturity structure of interest-sensitive assets and liabilities. It is assessed for both the earnings and economic value perspectives. The Board sets limits on the interest rate repricing gaps 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. Dec.31, 2024 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 Financial investments Gross financial investment securities Investments in associates Total financial assets Financial liabilities Due to banks Due to customers Derivatives financial instruments Issued debt instruments Other loans Total financial liabilities Total interest re- pricing gap Total financial assets as of December 31, 2023 Total financial liabilities as of December 31, 2023 Total interest re- pricing gap as of December 31, 2023 Up to1 Month 1-3 Months 3-12 Months 1-5 years Over 5 years - - - 202,094,616 58,448,384 8,134,208 - - 865,924 1,499,745 5,972,388 1,525,164 - - - 279,572,830 38,999,154 27,654,182 36,427,355 9,729,523 22,278 3,106 - 111,707 682,620 Non- Interest Bearing Total 136,531,020 136,531,020 2,156,451 270,833,659 - - - 9,863,221 392,383,044 819,711 68,934,335 40,232,961 107,601,111 155,241,888 30,122,808 964,265 403,097,368 551,489,983 139,183,350 149,361,889 193,306,114 40,534,951 98,193 98,193 139,749,929 1,213,626,216 755,973 424,433,749 - 102,410,795 - 91,272,609 - 191,347,017 - 551,155 1,278,912 162,580,633 2,034,885 972,595,958 37,684 - 36,823 2,982 59,905 - - 14,817,798 - 8,451,161 5,067,781 656,607 - - - - - - 100,571 5,067,781 23,962,389 425,264,229 117,231,575 99,783,675 197,071,405 551,155 163,859,545 1,003,761,584 126,225,754 21,951,775 49,578,214 (3,765,291) 39,983,796 (24,109,616) 209,864,632 459,964,155 79,879,552 96,099,274 114,390,293 32,633,058 75,540,427 858,506,759 288,302,773 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 3.3. Liquidity risk Liquidity risk specifies the Bank’s inability to replace withdrawn funds and meet consequential payment obligations due to the fall of financial liabilities. The consequence may be the failure to meet obligations to repay depositors 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 strategies 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 year, 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. 228 • CIB Annual Report • 2024 2024 • CIB Annual Report • 229 Financial Statements / Consolidated 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 maturities and the maturities assumption for non contractual products on the basis of their behaviour studies, at balance sheet date. 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. Dec.31, 2024 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, 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) Up to 1 month One to three months Three months to one year One year to five years Over five years Total 2,441,383 103,351,017 16,767 39,963 - 111,496,713 31,911 400,705 - 303,775,991 148,739 2,567,007 - 563,348,559 5,172,710 19,128,652 - 18,359,616 - 14,367,883 2,441,383 1,100,331,896 5,370,127 36,504,210 105,849,130 111,929,329 306,491,737 587,649,921 32,727,499 1,144,647,616 301,392,359 165,011,549 305,836,238 599,355,855 130,243,135 1,501,839,136 Up to 1 month One to three months Three months to one year One year to five years Over five years Total 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 The disclosed figures cannot be compared with the corresponding items in the financial statements, as they include the principal amount and their 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, some treasury bills have been pledged. The Bank would also be able to meet unexpected net cash outflows by selling securities and accessing additional funding sources. 230 • CIB Annual Report • 2024 Interest rate derivatives: interest rate swaps, forward rate agreements, OTC and exchange traded interest rate options, other interest rate contracts 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. The amounts disclosed in the table are the contractual undiscounted cash flows: Dec.31, 2024 Liabilities Derivatives financial instruments Foreign exchange derivatives Interest rate derivatives Total Total as of Dec. 31, 2023 Off balance sheet items Up to 1 month One to three months Three months to one year One year to five years 37,684 - 37,684 22,199 2,982 - 2,982 16,822 - 59,905 59,905 6,895 - - - 95,018 Total 40,666 59,905 100,571 140,934 Dec.31, 2024 Letters of credit, guarantees and other commitments Total Total as of Dec. 31, 2023 Up to 1 year 170,432,493 170,432,493 112,655,172 1-5 years Over 5 years 30,251,074 88,422,355 30,251,074 88,422,355 13,826,592 48,169,918 Total 289,105,922 289,105,922 174,651,682 Dec.31, 2024 Credit facilities commitments Total Total as of Dec. 31, 2023 Up to 1 year 4,663,262 4,663,262 4,296,934 1-5 years 1,957,876 1,957,876 1,078,987 Total 6,621,138 6,621,138 5,375,921 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, 2024 Dec.31, 2023 Dec.31, 2024 Dec.31, 2023 270,833,659 9,863,221 392,383,044 231,087,402 823,739 266,375,398 271,686,961 9,697,155 393,639,159 231,713,694 815,060 268,482,495 168,585,201 841,665,125 38,539,488 536,826,027 167,909,234 842,932,509 36,709,182 537,720,431 2,034,885 972,595,958 5,067,781 23,962,389 1,003,661,013 12,458,003 677,237,479 3,073,349 12,483,907 705,252,738 2,034,931 976,291,471 5,076,291 24,242,886 1,007,645,579 12,783,893 681,407,303 3,074,203 12,613,487 709,878,886 2024 • CIB Annual Report • 231 Financial Statements / Consolidated 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 2024: 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. Dec.31, 2024 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 Fair value measurement using Quoted prices in active markets (Level 1) Significant observable inputs (level 2) Valuation techniques (level 3) Total 143,379,940 91,132,227 143,379,940 91,132,227 - - 234,512,167 234,512,167 - - - 167,909,234 - - 167,909,234 - - - - - - - 819,711 100,571 920,282 819,711 100,571 920,282 - 9,697,155 393,639,159 167,909,234 9,697,155 393,639,159 403,336,314 571,245,548 - - - - 5,076,291 24,242,886 - - - 976,291,471 5,076,291 24,242,886 976,291,471 29,319,177 976,291,471 1,005,610,648 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 Fair value measurement using Quoted prices in active markets (Level 1) Significant observable inputs (level 2) Valuation techniques (level 3) Total 114,973,913 114,973,913 118,151,321 118,151,321 - - 233,125,234 233,125,234 - - - 36,709,182 - - 36,709,182 - - - - - - - - - - - 3,074,203 12,613,487 - 15,687,690 1,105,148 140,934 1,246,082 1,105,148 140,934 1,246,082 - 815,060 268,482,495 269,297,555 - - 681,407,303 681,407,303 36,709,182 815,060 268,482,495 306,006,737 3,074,203 12,613,487 681,407,303 697,094,993 Fair value of financial assets and liabilities Due from banks The fair value of deposits at banks is estimated based on the discounted cash flows of these contracts, using the effective interest rate. Loans and advances to banks The fair value of loans and advances to banks is represented by the present value of expected future cash flows. These cash flows are discounted using the effective interest rate to determine the fair value. Loans and advances to customers The expected fair value of loans and facilities is represented by the present value of future expected cash inflows. These cash flows are discounted using the effective interest rate to calculate the 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. For equity shares listed in an active market, they are evaluated based on market prices. Otherwise, an external valuator are relied upon to evaluate those stocks. Due to other banks and customers The estimated fair value of demand deposits, which include non-interest-bearing deposits, is represented by the amount payable on demand. The fair value of time deposits and other loans not traded in active markets is determined based on discounted cash flows, using the effective interest rate Issued debt instruments The total fair value is calculated based on a discounted cash flow model using the effective interest rate. 232 • CIB Annual Report • 2024 2024 • CIB Annual Report • 233 Financial Statements / Consolidated 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 30.4 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, and D-SIBs required by CBE. 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 Loss (ECL) for debt instrument, loans and credit facilities capped by 1.25% risk weighted assets and contingent liabilities ,subordinated loans\deposits (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 guarantees according to CBE regulations. 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 year. The tables below summarize the compositions of capital base , capital adequacy ratio and leverage ratio. 3.5.1. Capital Adequacy Ratio Tier 1 capital Issued and Paid-in Capital Reserves Retained Earnings (Losses) Total deductions from common equity tier 1 capital 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 instrumentsstage 1 Total qualifying tier 2 capital Total qualifying capital base Risk weighted assets and contingent liabilities Total credit risk Total market risk Total operational risk Cross border over limit Total **Capital adequacy ratio (%) Dec. 31, 2024 Dec. 31, 2023 30,431,580 64,928,142 1,549,380 (2,849,288) 40,451,671 134,511,485 30,195,010 30,800,441 332,888 (1,829,068) 24,254,227 83,753,498 19,911,465 12,057,970 7,413,006 4,281,122 27,324,471 161,835,956 16,339,092 100,092,590 593,351,983 14,158,820 63,467,763 - 670,978,566 24.1% 343,408,395 - 36,038,665 2,060,413 381,507,473 26.2% * Not more than 1.25% of total assets and contingent liabilities weighted by credit risk weights. ** Based on consolidated financial statement figures and in accordance with Central Bank of Egypt regulation issued on 24 December 2012. 3.5.2. Leverage ratio Total qualifying tier 1 capital On-balance sheet items and derivatives Off-balance sheet items Total exposures Leverage ratio* Dec. 31, 2024 Dec. 31, 2023 134,511,485 1,226,683,110 172,364,998 1,399,048,108 9.6% 83,753,498 856,118,571 106,722,210 962,840,781 8.7% *Based on consolidated financial statement figures and in accordance with Centeral Bank of Egypt regulation issued on 14 July 2015. For December 2024 NSFR ratio record 238% (LCY 239% and FCY 236%), and LCR ratio record 1037% (LCY 1709% and FCY 403%). For December 2023 NSFR ratio record 253% (LCY 264% and FCY 229%), and LCR ratio record 1342% (LCY 2250% and FCY 175%). 3.6. 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. 234 • CIB Annual Report • 2024 2024 • CIB Annual Report • 235 Financial Statements / Consolidated 3.7. Fair value of derivatives The fair value of financial instruments that are not quoted in active markets are determined by using valuation techniques. these valuation 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, 2024 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 Retail banking Asset Liability Management Total 61,116,446 9,515,044 18,854,896 20,434,911 9,336,810 119,258,107 (32,147,510) (2,611,270) (431,411) (6,970,241) (22,335) (42,182,767) 28,968,936 (8,230,118) 20,738,818 338,292,583 400,874,632 6,903,774 (1,959,882) 4,943,892 11,740,156 91,318,692 18,423,485 (5,189,025) 13,234,460 402,804,692 - 13,464,670 (3,855,676) 9,608,994 77,518,108 539,977,158 9,314,475 (2,644,245) 6,670,230 384,617,722 29,983,458 77,075,340 (21,878,946) 55,196,394 1,214,973,261 1,062,153,940 * Represents the net interest income and other income. 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 Retail banking Asset Liability Management 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 5. Segment analysis by geographical segment Dec.31, 2024 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, 2023 Revenue according to geographical segment Expenses according to geographical segment Profit before tax Income tax Profit for the year Total assets Total liabilities Greater Cairo Alex, Delta & Sinai Upper Egypt Outside Egypt (CIB Kenya) Total 103,317,059 11,407,670 3,846,253 687,125 119,258,107 (36,614,100) (2,957,601) (1,572,442) (1,038,624) (42,182,767) 66,702,959 (18,931,679) 47,771,280 1,127,861,538 795,252,066 Greater Cairo 8,450,069 (2,398,852) 6,051,217 64,483,232 211,231,928 Alex, Delta & Sinai 2,273,811 (645,502) 1,628,309 15,907,339 50,369,922 (351,499) 97,087 (254,412) 6,721,152 5,300,024 77,075,340 (21,878,946) 55,196,394 1,214,973,261 1,062,153,940 Upper Egypt Outside Egypt (CIB Kenya) Total 52,412,050 8,531,843 1,435,796 386,957 62,766,646 (18,600,171) (2,115,141) (25,997) (448,389) (21,189,698) 33,811,879 (9,741,043) 24,070,836 776,593,063 558,474,448 6,416,702 (1,861,583) 4,555,119 45,036,445 151,824,454 1,409,799 (409,004) 1,000,795 9,773,559 31,298,613 (61,432) 69,224 7,792 3,463,032 2,627,118 41,576,948 (11,942,406) 29,634,542 834,866,099 744,224,633 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 Dec.31, 2024 Dec.31, 2023 47,716,067 63,529,846 111,245,913 63,980,900 7,508,661 182,735,474 (10,195,894) (79,141,208) (89,337,102) (19,188) (2,137,347) (177,615) (91,671,252) 91,064,222 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) 52,929,662 236 • CIB Annual Report • 2024 2024 • CIB Annual Report • 237 Financial Statements / Consolidated 7. Net fee and commission income 12. Impairment release (charges) for credit losses 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 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 Dec.31, 2024 Dec.31, 2023 4,695,486 755,738 7,362,652 12,813,876 (5,728,656) (5,728,656) 7,085,220 3,286,402 551,324 5,212,198 9,049,924 (3,611,699) (3,611,699) 5,438,225 Dec.31, 2024 195,047 195,047 Dec.31, 2023 234,010 234,010 Dec.31, 2024 20,779,591 (539,674) 21,150 (54,006) 265,006 20,472,067 Dec.31, 2023 4,096,288 (60,945) 291,504 (401,470) 17,562 3,942,939 Dec.31, 2024 Dec.31, 2023 (7,245,281) (288,575) (424,353) (5,937,410) (13,895,619) (5,339,030) (354,136) (282,763) (4,100,084) (10,076,013) *The expenses related to the activity for which the bank obtains a commodity or service, donations and depreciation. 11. Other operating income (expenses) 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 Dec.31, 2024 (15,457,960) 2,246 (3,400,877) (4,846,400) (23,702,991) Dec.31, 2023 (756,492) 1,663 (2,838,761) (2,997,150) (6,590,740) 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. 15. Cash and balances at the central bank Cash Obligatory reserve balance with CBE Current accounts Total Non-interest bearing balances Dec.31, 2024 (4,768,107) 341 243,947 (4,523,819) Dec.31, 2023 (2,311,867) 47,234 (2,005,448) (4,270,081) Dec.31, 2024 77,135,678 22.50% 17,355,528 Dec.31, 2023 41,653,373 22.50% 9,372,009 8,224,145 (13,093,490) 9,392,763 21,878,946 28.36% 4,790,895 (7,458,312) 5,237,814 11,942,406 28.67% Dec.31, 2024 55,428,315 (178,000) (5,542,832) 49,707,483 3,032,982 16.39 Dec.31, 2023 28,763,709 (110,239) (2,876,371) 25,777,099 3,032,982 8.50 3,070,752 16.19 3,070,752 8.39 Dec.31, 2024 21,752,997 Dec.31, 2023 7,491,636 114,778,023 136,531,020 136,531,020 64,396,185 71,887,821 71,887,821 238 • CIB Annual Report • 2024 2024 • CIB Annual Report • 239 Financial Statements / Consolidated 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 ReposTreasury bills Net Other Governmental notes Total Treasury bills and other governmental notes 18. Loans and advances to banks, net Loans Unamortized bills discount ECL Net Current balances Non-current balances Net Analysis for ECL of loans and advances to banks Beginning balance of the year Released (charged) during the year Exchange revaluation difference Ending balance of the year 240 • CIB Annual Report • 2024 Dec.31, 2024 8,417,769 262,415,890 (3,825) 270,829,834 99,637,072 101,775,461 69,417,301 270,829,834 2,156,451 44,712,342 223,961,041 270,829,834 270,829,834 - 270,829,834 Dec.31, 2024 1,096,750 14,747,975 9,502,200 72,763,665 (8,916,960) 89,193,630 (563,568) 88,630,062 - 88,630,062 Dec.31, 2023 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 Dec.31, 2023 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 Dec.31, 2024 9,863,221 (174,320) (133,491) 9,555,410 8,117,337 1,438,073 9,555,410 Dec.31, 2023 823,739 - (1,291) 822,448 822,448 - 822,448 Dec.31, 2024 (1,291) (131,405) (795) (133,491) Dec.31, 2023 (10,213) 8,922 - (1,291) 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 Dec.31, 2024 Dec.31, 2023 3,731,857 15,027,813 54,941,264 5,794,632 79,495,566 87,461,400 144,428,805 79,963,890 1,033,383 312,887,478 392,383,044 (238,286) (84,093) (45,481,562) (3,036,429) 343,542,674 196,071,388 147,471,286 343,542,674 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) 234,985,936 126,122,466 108,863,470 234,985,936 Analysis of the expected credit losses on loans and advances to customers by product during the year is as follows: Individual Loans: Beginning balance Released (charged) during the year Written off during the year Recoveries during the year Ending balance Corporate and Business Banking: Beginning balance Released (charged) during the year Written off during the year Recoveries during the year ECL Transfer to Other provisions Foreign currencies translation differences Ending balance Dec.31, 2024 Overdraft (5,517) Credit cards Personal loans (1,428,802) (723,524) Mortgage loans (85,452) Total (2,243,295) (6,713) (1,304,974) (375,154) (1,642) (1,688,483) 3,038 (1,595) (10,787) 69,410 (69,878) (2,028,966) 190,105 (85,661) (1,699,512) 1,638 (548) (86,004) 264,191 (157,682) (3,825,269) Dec.31, 2024 Syndicated loans (5,792,815) Direct loans (18,367,660) Other loans (19,420) Total (26,994,442) 3,320,981 (4,085,932) (16,596) (2,948,219) 236,120 (709,589) - - - 1,276,440 1,209 - - - 248,830 (710,589) 1,276,440 (12,528,313) (848,120) (8,195,864) (3,484,329) (5,818,838) (23,716,012) (12,086,636) (34,807) (41,656,293) 2024 • CIB Annual Report • 241 Overdraft (2,814,547) (2,166,672) 11,501 (1,000) - Financial Statements / Consolidated Individual Loans: Beginning balance Released (charged) during the year Write off during the year Recoveries during the year Ending balance Corporate and Business Banking: Beginning balance Released (charged) during the year Write off during the year Recoveries during the year foreign currencies translation differences Ending balance Dec.31, 2023 Overdraft (7,131) Credit cards Personal loans (1,201,774) (321,989) 663 1,960 (1,009) (5,517) (402,460) 59,027 (58,102) (723,524) Overdraft (2,516,317) Direct loans (15,277,168) (337,815) 177,095 (66,308) (1,428,802) Dec.31, 2023 Syndicated loans (5,140,284) Mortgage loans (63,242) (25,362) 3,332 (180) (85,452) Total (1,594,136) (764,974) 241,414 (125,599) (2,243,295) Other loans (8,807) Total (22,942,576) 205,563 (2,270,797) 520,032 (10,613) (1,555,815) 2,529 - 2,234,286 (51,666) - - (506,322) (3,002,315) (1,172,563) - - - 2,236,815 (51,666) (4,681,200) (2,814,547) (18,367,660) (5,792,815) (19,420) (26,994,442) 20. Derivative financial instruments 20.1. Derivatives The Bank uses the following financial derivatives for hedging purposes and 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 (OTC). 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 Dec.31, 2024 Dec.31, 2023 Notional amount 2,504,361 31,493,338 Assets Liabilities 25,118 266 25,384 24,029 16,637 40,666 Notional amount 4,491,601 74,891,979 Assets Liabilities 578,528 49,037 627,565 37,765 8,151 45,916 Dec.31, 2024 Dec.31, 2023 Notional amount 28,215,534 Assets 111,707 111,707 Liabilities 59,905 59,905 Notional amount 15,446,550 Assets 40,482 40,482 Liabilities 95,018 95,018 Dec.31, 2024 Dec.31, 2023 Notional amount 21,567,522 Assets 682,620 682,620 819,711 Liabilities - - 100,571 Notional amount 3,089,310 Assets 437,101 437,101 Liabilities - - 1,105,148 140,934 Foreign currencies derivatives -Forward foreign exchange contracts -Swap deals Total (1) 20.1.2. Fair value hedge -Interest rate derivatives Total (2) 20.1.3. Cash flow hedge Cash flow hedge Total (3) Total financial derivatives (1+2+3) 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 51,802 thousand at the end of December 31, 2024 against EGP (54,536) thousand at December 31, 2023, resulting in profits from hedging instruments at December 31, 2024 of EGP 106,338 thousand against losses of EGP 85,016 thousand at December 31, 2023. Losses arose from the hedged items at December 31, 2024 reached EGP 89,590 thousand against Profits EGP 84,228 thousand at December 31, 2023. Cash Flow Hedge The bank uses the interest rate swap contracts to cover the interest rate risk associated with variable cash flows from assets or liabilities. The interest rate swap contracts with a contractual/notional value of EGP 21,567,522 thousand and a fair value of EGP 682,620 thousand as at 31-December-2024 against a contractual/notional value of EGP 3,089,310 thousand and a fair value of EGP 437,101 thousand as at 31-December-2023 were designated as cash flow hedge for loans and subordinated loans with floating interest rates. 242 • CIB Annual Report • 2024 2024 • CIB Annual Report • 243 Financial Statements / Consolidated 21. Movement of financial investment securities: 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 Beginning balance as of 2024 Addition Disposals Profit (losses) from fair value difference Exchange revaluation differences for foreign financial assets Ending Balance as of December 31, 2024 21. Financial investments securities Investments listed in the market Governmental bonds Securitized and other bonds Equity instruments Treasury bills Sukuk Investments not listed in the market Treasury bills Securitized and other bonds Equity instruments Mutual funds Total Financial Assets at Fair Value through OCI 204,020,733 129,073,519 (98,945,138) (5,814,834) 4,790,954 233,125,234 Financial Assets at Fair Value through OCI 233,125,234 113,445,585 (140,259,022) 9,826,570 18,373,800 234,512,167 Dec.31, 2024 Financial Assets at Amortized cost 164,936,822 2,015,953 - 56,047 - - 1,109,397 - - 168,118,219 Financial Assets at Amortized cost 34,524,760 9,290,232 (6,125,452) - 651,479 38,341,019 Financial Assets at Amortized cost 38,341,019 129,153,136 (2,028,180) - 2,652,244 168,118,219 Total 280,508,848 27,970,968 159,066 56,047 1,693,833 - 88,574,015 2,273,210 922,707 471,692 402,630,386 Financial Assets at Fair Value through OCI 115,572,026 25,955,015 159,066 - 1,693,833 - 88,574,015 1,163,813 922,707 471,692 234,512,167 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 Dec.31, 2023 Financial Assets at Amortized cost 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 - - - 71,844 - - 38,341,019 Total 125,348,377 26,899,309 121,184 874,218 113,403,703 3,371,641 1,038,885 408,936 271,466,253 Classification and measurement of financial assets and financial liabilities: The following table shows the net financial assets and financial liabilities according to the business model classification: 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 Dec.31, 2024 Cash and balances with central bank Due from banks Treasury bills Loans and advances to customers, net Loans and advances to banks, net Derivative financial instruments Financial Assets at Fair value through OCI Financial Assets at Amortized cost Total 1 Due to banks Due to customers Derivative financial instruments Issued debt instruments Other loans Other Provisions Total 2 Total Financial Assets as of 31-Dec-2023 Total Financial Liabilities as of 31-Dec-2023 136,531,020 270,829,834 56,047 343,542,674 9,555,410 - - 168,062,172 928,577,157 2,034,885 972,595,958 - 5,067,781 23,962,389 18,621,822 1,022,282,835 - - 88,574,015 - - - - - - - - - 144,384,687 1,553,465 - 232,958,702 - - - 1,553,465 - - - - - - - - - - - - Total book value 136,531,020 270,829,834 88,630,062 343,542,674 9,555,410 - - - - - 819,711 819,711 - - 819,711 - - 100,571 - - - 100,571 145,938,152 168,062,172 1,163,909,035 2,034,885 972,595,958 100,571 5,067,781 23,962,389 18,621,822 1,022,383,406 577,122,468 231,556,229 1,569,005 1,105,148 811,352,850 716,347,827 - - 140,934 716,488,761 244 • CIB Annual Report • 2024 2024 • CIB Annual Report • 245 Financial Statements / Consolidated 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 22. Investments in associates Dec.31, 2024 459,337 - - 459,337 Dec.31, 2023 205,344 7,466 9,000 221,810 Dec.31, 2024 - TCA Properties - Al Ahly Computer Total Company's country Egypt Egypt Company's assets 1,531,763 87,825 1,619,588 Dec.31, 2023 - TCA Properties - Al Ahly Computer Total Company's country Egypt Egypt Company's assets 1,508,346 30,031 1,538,377 Company's liabilities (without equity) 1,458,913 47,861 1,506,774 Company's liabilities (without equity) 1,364,689 30,620 1,395,309 Company's revenues 68,725 124,562 193,287 Company's net profit (loss) (72,560) 10,502 (62,058) Investment book value 62,512 35,681 98,193 Company's revenues 56,196 48,038 104,234 Company's net profit (loss) (89,746) (20,097) (109,843) Investment book value 88,711 27,268 115,979 Stake % 37.00 39.33 - Stake % 37.00 39.33 - d n a e r u t i n r u F d n a i s e n h c a M 4 2 0 2 , . 1 3 c e D l a t o T i g n h s n r u f i t n e m p u q e i t u o - g n i t t i F l s e c h e V i 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 Total Dec.31, 2024 35,151,259 1,469,209 5,367,781 2,150,743 40,809 102,972 44,282,773 Dec.31, 2023 13,018,038 903,169 1,906,547 3,044,238 49,019 51,775 18,972,786 T I i s e s m e r P , 1 9 1 2 8 3 8 , , 0 5 2 7 3 3 2 , , ) 6 8 6 6 0 1 ( , 5 5 7 2 1 6 0 1 , , 9 9 0 3 4 6 5 , , 3 1 4 8 7 0 1 , , ) 6 8 6 6 0 1 ( , 6 2 8 4 1 6 6 , , 9 2 9 7 9 9 3 , , 2 9 0 9 3 7 2 , 8 6 5 2 6 1 , 4 1 3 7 3 , ) 7 2 5 2 ( , 5 5 3 7 9 1 , 6 6 8 9 2 1 , 0 6 2 7 1 , ) 7 2 5 2 ( , 9 9 5 4 4 1 , 6 5 7 2 5 , 2 0 7 2 3 , 1 6 0 0 4 9 , 1 4 1 0 6 3 , ) 6 8 4 0 2 ( , , 6 1 7 9 7 2 1 , , 9 4 2 8 1 0 1 , 3 8 1 7 8 2 , ) 1 1 0 1 3 ( , , 1 2 4 4 7 2 1 , 3 0 4 0 3 7 , 0 9 9 9 2 1 , ) 6 8 4 0 2 ( , 7 0 9 9 3 8 , 9 0 8 9 3 4 , 8 5 6 9 0 2 , 4 9 7 5 1 9 , 1 6 7 7 9 , ) 1 1 0 1 3 ( , 4 4 5 2 8 9 , 7 7 8 1 9 2 , 5 5 4 2 0 1 , 3 2 0 2 4 2 8 9 1 , 8 8 1 5 2 2 , - 2 1 0 5 4 2 , 0 8 0 2 9 , - 8 5 7 8 3 8 2 9 , 4 7 1 2 5 1 , 8 0 1 3 3 1 , , . 1 3 c e D , 9 6 0 4 7 5 4 , , 8 2 4 4 2 4 1 , ) 2 3 4 0 3 ( , , 5 6 0 8 6 9 5 , , 2 0 8 2 8 1 3 , 8 1 4 4 7 7 , ) 2 3 4 0 3 ( , , 8 8 7 6 2 9 3 , , 7 7 2 1 4 0 2 , , 7 6 2 1 9 3 1 , , 7 8 3 2 3 2 1 , 0 6 3 8 0 2 , ) 0 3 2 2 2 ( , , 7 1 5 8 1 4 1 , 4 5 1 2 9 5 , 6 2 2 8 5 , ) 0 3 2 2 2 ( , , 0 5 1 8 2 6 , 7 6 3 0 9 7 , 3 3 2 0 4 6 d n a e r u t i n r u F d n a i s e n h c a M l a t o T i g n h s n r u f i t n e m p u q e i t u o - g n i t t i F l s e c h e V i T I i s e s m e r P , 9 5 9 4 0 3 7 , , 7 6 8 1 2 1 1 , ) 5 3 6 4 4 ( , , 1 9 1 2 8 3 8 , , 5 2 5 9 9 8 4 , 9 0 2 8 8 7 , ) 5 3 6 4 4 ( , , 9 9 0 3 4 6 5 , , 2 9 0 9 3 7 2 , , 4 3 4 5 0 4 2 , 6 4 2 1 6 1 , 2 7 7 3 , ) 0 5 4 2 ( , 8 6 5 2 6 1 , 5 0 2 0 2 1 , 1 1 1 2 1 , ) 0 5 4 2 ( , 6 6 8 9 2 1 , 2 0 7 2 3 , 1 4 0 1 4 , 7 7 6 4 1 , 1 4 9 3 4 9 , ) 7 5 5 8 1 ( , 1 6 0 0 4 9 , 6 1 2 9 8 6 , 4 4 7 9 5 , ) 7 5 5 8 1 ( , 3 0 4 0 3 7 , 8 5 6 9 0 2 , 5 2 7 4 5 2 , , 6 2 2 4 0 0 1 , - 3 2 0 4 1 , , 9 4 2 8 1 0 1 , - 7 8 2 5 1 8 , 7 0 5 0 0 1 , 4 9 7 5 1 9 , 5 5 4 2 0 1 , 9 3 9 8 8 1 , 3 1 3 1 3 , 5 7 8 3 9 1 , - 8 8 1 5 2 2 , - 0 7 4 1 8 , 0 1 6 0 1 , 0 8 0 2 9 , 8 0 1 3 3 1 , 5 0 4 2 1 1 , , 2 9 6 8 3 5 3 , , 5 5 3 4 5 0 1 , ) 8 7 9 8 1 ( , , 9 6 0 4 7 5 4 , , 0 6 7 8 2 6 2 , 0 2 0 3 7 5 , ) 8 7 9 8 1 ( , , 2 0 8 2 8 1 3 , , 2 3 9 9 0 9 , 7 6 2 1 9 3 1 , , 0 1 3 3 3 2 1 , 7 2 7 3 , ) 0 5 6 4 ( , , 7 8 3 2 3 2 1 , 7 8 5 4 6 5 , 7 1 2 2 3 , ) 0 5 6 4 ( , 4 5 1 2 9 5 , 3 3 2 0 4 6 , 3 2 7 8 6 6 , *A provision of EGP 12 million has been released and A provision of EGP 50 million has been charged. 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. - - - - d n a L 9 6 6 9 2 2 , - - 9 6 6 9 2 2 , 9 6 6 9 2 2 , 9 6 6 9 2 2 , d n a L 9 6 6 9 2 2 , - - 9 6 6 9 2 2 , - - - - 9 6 6 9 2 2 , 9 6 6 9 2 2 , t a n o i t a i c e r p e d d e t a l u m u c c A ) 3 ( r a e y e h t i f o g n n n i g e b ) 2 ( r a e y e h t f o d n e t a t s o C r a e y e h t r o f n o i t a i c e r p e D r a e y e h t g n i r u d s l a s o p s i D n o i t a i c e r p e d d e t a l u m u c c A ) 4 ( r a e y e h t f o d n e t a ) 3 - 1 ( s t e s s a t e n g n i n n i g e B ) 4 - 2 ( s t e s s a t e n g n i d n E r a e y e h t g n i r u d s n o i t i d d A r a e y e h t g n i r u d s l a s o p s i D ) 1 ( 4 2 0 2 , 1 0 n a J t a t s o C t a n o i t a i c e r p e d d e t a l u m u c c A ) 3 ( r a e y e h t i f o g n n n i g e b ) 2 ( r a e y e h t f o d n e t a t s o C r a e y e h t r o f n o i t a i c e r p e D r a e y e h t g n i r u d s l a s o p s i D n o i t a i c e r p e d d e t a l u m u c c A ) 4 ( r a e y e h t f o d n e t a ) 3 - 1 ( s t e s s a t e n g n i n n i g e B ) 4 - 2 ( s t e s s a t e n g n i d n E r a e y e h t g n i r u d s n o i t i d d A r a e y e h t g n i r u d s l a s o p s i D ) 1 ( 3 2 0 2 , 1 0 n a J t a t s o C i t n e m p u q e d n a y t r e p o r P . 4 2 246 • CIB Annual Report • 2024 2024 • CIB Annual Report • 247 Financial Statements / Consolidated 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 Dec.31, 2024 1,278,912 755,973 2,034,885 714,368 43,832 1,276,685 2,034,885 1,278,912 679,715 76,258 2,034,885 2,034,885 Dec.31, 2024 368,893,515 195,085,589 234,726,375 164,587,739 9,302,740 972,595,958 432,276,949 540,319,009 972,595,958 162,580,633 9,714,973 800,300,352 972,595,958 733,056,112 239,539,846 972,595,958 Dec.31, 2023 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 Dec.31, 2023 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 In 2024, Due to customers contains an amount of EGP 2,465 million representing guarantees of irrevocable commitments for documentary creditsexport compared to EGP 1,931 million in 2023. 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, 2024 Dec.31, 2023 Fixed rate 5,067,781 5,067,781 5,067,781 3,073,349 3,073,349 3,073,349 28. Other loans British International Investment subordinated loan European Bank for Reconstruction and Development (EBRD) International Finance Corporation (IFC) 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 the next year Dec.31, 2024 Dec.31, 2023 Due within Floating rate 10 years Floating rate Floating rate Fixed rate 5 years 5 years 5 years - - - 4,791,371 2,879,244 503,546 2,501,995 - - 210 210 525 Fixed rate 1-3 years 150,201 197,827 200,619 Floating / Fixed rate 1-6 years 238,365 847,345 224,793 Floating rate 10 years Floating rate 10 years - - 7,559,094 4,588,784 7,561,001 4,589,942 388,776 23,962,389 12,483,907 Interest rates on variable-interest subordinated loans are determined in advance every 3 months. 29. Other liabilities Accrued interest payable Accrued expenses Accounts payable Other credit balances Total 30. Other provisions Dec.31, 2024 Provision for legal claims* Provision for contingent Provision for other claim** Total Dec.31, 2023 Provision for legal claims* Provision for contingent Provision for other claim ** Total Dec.31, 2024 3,854,584 4,449,298 12,829,483 307,804 21,441,169 Dec.31, 2023 3,807,422 2,554,726 11,440,035 537,282 18,339,465 Beginning balance 7,246 10,670,568 417,275 11,095,089 Beginning balance 7,456 6,675,694 383,522 7,066,672 Net charged / released during the year 108,738 877,489 2,377,298 3,363,525 Net charged / released during the year 1,400 2,817,520 2,221 2,821,141 Exchange revaluation difference 3,596 4,058,066 111,132 4,172,794 Exchange revaluation difference 448 1,179,866 32,812 1,213,126 Net utilized / recovered during the year (232) - (9,354) (9,586) Net utilized / recovered during the year (2,058) (2,512) (1,280) (5,850) Ending balance 119,348 15,606,123 2,896,351 18,621,822 Ending balance 7,246 10,670,568 417,275 11,095,089 *There is a number of existing filed cases against the bank on December 31, 2024 for which no provisions are made as the bank doesn’t expect to incur losses. **To face the potential risk of banking operations. 248 • CIB Annual Report • 2024 2024 • CIB Annual Report • 249 Financial Statements / Consolidated 31. Equity 31.1. Capital • The authorized capital is EGP 100 billion according to the extraordinary general assembly decision on 20 March 2023. • On June 6, 2024 issued and Paid in Capital increased by an amount of EGP 236,570 thousand to reach EGP 30,431,580 thou- sand, according to BOD Meeting decision on February 11, 2024, by issuance of 15th 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 thou- sand, according to BOD Meeting decision on January 24 ,2023, by issuance of 14th tranche for E.S.O.P program. • On January 11, 2023 issued and Paid in Capital increased by an amount of EGP 165,429 thousand to reach EGP 29,990,563 thousand, according to BOD Meeting decision on September 28 ,2022, by issuance of 13th tranche for E.S.O.P program. 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: Authorized Capital Issued and paid up capital Number of outstanding shares in thousnds Par value per share Dec.31, 2024 100,000,000 30,431,580 3,043,158 Dec.31, 2024 EGP 10 Dec.31, 2023 100,000,000 30,195,010 3,019,501 Dec.31, 2023 EGP 10 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: 31.2. Reserves According to The Bank status 5% of net profit is used to increase the legal reserve to reaches 50% of The Bank’s issued and paid in capital. Central Bank of Egypt approval for usage of special reserve is required. 32. Deferred tax assets (Liabilities) Deferred tax assets and liabilities are attributable to the following: 2025 2026 2027 Total Dec.31, 2024 No. of shares in thousand 80,013 22,869 (3,351) (23,657) 75,874 Dec.31, 2023 No. of shares in thousand 92,551 28,143 (3,693) (36,988) 80,013 EGP EGP Exercise price 10.00 10.00 10.00 - Fair value 28.43 34.09 66.15 - No. of shares in thousand 27,840 26,000 22,034 75,874 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 Employee stock ownership plan (ESOP) Interest rate swaps revaluation Forward foreign exchange deals revaluation Ending 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 Assets (Liabilities) Dec.31, 2024 (170,557) 1,636,848 729,928 (782,267) 395,979 420,352 (4,759) 459,807 2,685,331 Assets (Liabilities) Dec.31, 2023 (83,567) 782,907 1,399,815 (1,183,449) 395,979 334,352 (65,588) 104,782 1,685,231 Assets (Liabilities) Dec.31, 2024 Assets (Liabilities) Dec.31, 2023 1,685,231 (669,887) 1,669,987 2,685,331 185,746 341,943 1,157,542 1,685,231 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% 18th tranche 10 72.65 3 23.99% 0.80% 36.79% 17th tranche 10 41.48 3 18.00% 1.30% 34.75% Volatility is calculated based on the standard deviation of returns for the last five years. 250 • CIB Annual Report • 2024 2024 • CIB Annual Report • 251 Financial Statements / Consolidated 34. Reserves and retained earnings 34.5. Reserve for employee stock ownership plan 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 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 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 Dec.31, 2024 6,208,674 62,422,792 22,818 56,791,883 (670,972) (7,145,283) 1,868,235 17,924 1,137,720 1,550,906 122,204,697 Dec.31, 2023 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 Dec.31, 2024 15,230 2,694 17,924 Dec.31, 2023 11,981 3,249 15,230 Dec.31, 2024 4,770,354 1,438,320 6,208,674 Dec.31, 2023 3,963,946 806,408 4,770,354 Dec.31, 2024 (16,868,691) (370,224) 9,156,683 936,949 (7,145,283) Dec.31, 2023 (13,188,818) (95,308) (5,472,891) 1,888,326 (16,868,691) Dec.31, 2024 29,993,331 (23,398,943) (5,366,429) 55,196,394 (2,694) 370,224 56,791,883 Dec.31, 2023 16,393,841 (12,388,223) (3,738,888) 29,634,542 (3,249) 95,308 29,993,331 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 36. Contingent liabilities and commitments 36.1. Legal claims Dec.31, 2024 1,486,010 (623,125) 1,005,350 1,868,235 Dec.31, 2023 1,895,435 (1,164,242) 754,817 1,486,010 Dec.31, 2024 1,550,906 1,550,906 Dec.31, 2023 1,550,906 1,550,906 Dec.31, 2024 136,531,020 270,833,659 88,630,062 (114,778,023) (67,031,032) (87,574,965) 226,610,721 Dec.31, 2023 71,887,821 231,087,402 113,403,703 (64,396,185) (4,942,896) (112,721,932) 234,317,913 • There is a number of existing cases against the bank on December 31, 2024 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 3,177 thousand as follows: Financial Assets at Fair value through OCI Investments value 508,388 Paid 505,211 Remaining 3,177 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 439,730 thousand against EGP 396,683 thousand in 2023. 252 • CIB Annual Report • 2024 2024 • CIB Annual Report • 253 Financial Statements / Consolidated 36.3. Letters of credit, guarantees and other commitments Hemaya fund Letters of guarantee Letters of credit (import and export) Customers acceptances and other contingent liabilities Total Dec.31, 2024 257,993,539 19,179,770 11,932,613 289,105,922 Dec.31, 2023 160,776,153 9,075,124 4,800,405 174,651,682 • The bank established CIB investment fund the forth -Hemaya with accumulated return in accordance with the provisions of the Capital Market Law 95 of 1992 under license no.585 issued from financial regulatory authority on June 23, 2010. CI Assets Management Co.- Egyptian joint stock comanages the fund. • The number of certificates issued reached 81,416 with redeemed value of EGP 42,965 thousands. • The market value per certificate reached EGP 527.72 on December 31, 2024. • The Bank’s portion is 50,000 certificates with a redeemed value of EGP 26,386 thousands. 36.4. Credit facilities commitments Thabat fund Credit facilities commitments Dec.31, 2024 6,621,138 Dec.31, 2023 5,375,921 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 37. Mutual funds Osoul fund Dec.31, 2024 359,147 628,094 231,531 Dec.31, 2023 223,456 659,897 287,120 • The bank established CIB investment monetary fund with an accumulated return -Osoul in accordance with the provisions of the Capital Market Law 95 of 1992 under license no.331 regulatory authority on issued from financial February 22, 2005. CI Assets Management Co.- Egyptian joint stock comanages the fund. • The number of certificates issued reached 6,299,776 with redeemed value of EGP 5,044,168 thousands. • The market value per certificate reached EGP 800.69 on December 31, 2024. • The Bank’s portion is 237,112 certificates with a redeemed value of EGP 189,853 thousands. Istethmar fund • The bank established CIB investment fund the second with accumulated return in accordance with the provisions of the Capital Market Law 95 of 1992 under license no.344 issued from financial regulatory authority on February 26, 2006. CI Assets Management Co.- Egyptian joint stock comanages the fund. • The number of certificates issued reached 364,124 with redeemed value of EGP 203,549 thousands • The market value per certificate reached EGP 559.01 on December 31, 2024 • The Bank’s portion is 50,000 certificates with a redeemed value of EGP 27,951 thousands. Aman fund (CIB and Faisal Islamic Bank Mutual Fund) • CIB and Faisal Islamic Bank established an accumulated return mutual in accordance with the provisions of the Capital Market Law 95 of 1992 fund under license no.365 issued from financial regulatory authority on July 30, 2006. CI Assets Management Co.- Egyptian joint stock comanages the fund. • The number of certificates issued reached 307,753 with redeemed value of EGP 84,167 thousands. • The market value per certificate reached EGP 273.49 on December 31, 2024. • The Bank’s portion is 32,596 certificates with a redeemed value of EGP 8,915 thousands. • The bank established CIB quarterly return fund for investing in debt insturments -Thabat in accordance with the provisions of the Capital Market Law 95 of 1992 under license no.613 issued from financial regulatory authority on December 28, 2010. CI Assets Management Co.- Egyptian joint stock co manages the fund. • The number of certificates issued reached 184,167 with redeemed value of EGP 91,780 thousands. • The market value per certificate reached EGP 498.35 on December 31, 2024. • The Bank’s portion is 50,000 certificates with a redeemed value of EGP 24,918 thousands. Takamol fund • The bank established CIB accumulated fund -Takamol in accordance with the provisions of the Capital Market Law 95 of 1992 under license no.706 issued from financial regulatory authority on May 26, 2015. CI Assets Management Co.- Egyptian joint stock comanages the fund. • The number of certificates issued reached 118,017 with redeemed value of EGP 58,755 thousands. • The market value per certificate reached EGP 497.85 on December 31, 2024. • The Bank’s portion is 50,000 certificates with a redeemed value of EGP 24,893 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. 38.1. Loans, advances, deposits and contingent liabilities Loans, advances and other assets Deposits and other liabilities Contingent liabilities 38.2. Other transactions with related parties Dec.31, 2024 1,613,758 1,040,021 61,007 Dec.31, 2023 941,131 728,866 - C-venture Commercial International Bank (CIB) Kenya Damietta shipping & marine services Commercial International Finance Company Al ahly computer TCA Properties Dec.31, 2024 Dec.31, 2023 Income 11 4,560 14 33,933 31 137,458 Expenses 3,840 7,820 1,861 12,230 4 - Income 716 1,024 14 90 22 151,493 Expenses 1,284 4,335 625 4,546 103 - 254 • CIB Annual Report • 2024 2024 • CIB Annual Report • 255 Financial Statements / Consolidated 39. Main currencies positions 42. Significant events during the year Dec.31, 2024 Dec.31, 2023 Equivalent EGP (14,226,881) 13,411,452 21,656 (2,178) 672 725,040 Equivalent EGP 204,337 677,736 11,418 (101) 1,471 (278,430) Egyptian pound US dollar Sterling pound Japanese yen Swiss franc Euro *Based on separate financial statement. 40. Tax status Corporate income tax • Settlement of corporate income tax since the start of activity till 2021 • 2022-2023 under finalizing inspection & settlement • 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 • Settlement 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 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 Sale of investments in associates Impairment (Release) charge for other assets Total 2 Change (1-2) Dec.31, 2024 18,972,786 (49,019) (1,906,547) 17,017,220 44,282,773 (40,809) (5,367,781) 11,956 37,939 38,924,078 (21,906,858) 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) • On the 1st of 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. • On the 6th of March 2024, the Monetary Policy Committee (MPC) decided to raise the Central Bank of Egypt’s (CBE) over- night deposit rate, overnight lending rate, and the rate of the main operation by 600 basis points to 27.25 percent, 28.25 percent, and 27.75 percent, respectively. The discount rate was also raised by 600 basis points to 27.75 percent , which may affect the bank’s policies in pricing current and future banking products. • Based on the change in the US dollar exchange rate during the month of March from 31 pounds per dollar to 47 pounds per dollar, the values of assets and liabilities of monetary nature in foreign currencies, as well as the income statement, were affected by the results of evaluating the existing currency positions at the date of the financial position. For more details, refer to notes (9 & 11) • In the last quarter of 2024, Egyptian Accounting Standard 51 “Financial Statements in the Economics of Hyperinflation” was issued by Prime Minister No. 3527 of 2024 with the aim of helping to revalue the assets and liabilities of the financial state- ments in a way that reflects the actual purchasing power assessed by the impact of inflation. CIB’s management is following up the impact of the application of this standard to study the extent of its impact on the financial statements, and no instruc- tions have been issued to apply this standard until the date of issuance of the bank’s financial statements. The following tables represent the summarized Financial information of CVenture (subsidiary under liquidation). 43. Non current assets held for sale Financial Assets at Fair Value through OCI Other assets Property and equipment Total 44. Non current liabilities held for sale Other liabilities Other provisions Total 45. 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 Dec.31, 2024 - - - - Dec.31, 2023 79 2 80 161 Dec.31, 2024 1,079 318 1,397 Dec.31, 2023 680 193 873 Dec.31, 2024 - - - - - - - - - Dec.31, 2023 3,983 136 (311) (44,182) (2,255) (632) 1,151 8 (42,102) 256 • CIB Annual Report • 2024 2024 • CIB Annual Report • 257 Financial Statements / Consolidated Auditor’s Report 258 • CIB Annual Report • 2024 2024 • CIB Annual Report • 259 Financial Statements / Separate All amounts are presented in EGP thousands All amounts are presented in EGP thousands Separate Statement of Financial Position As at December 31, 2024 Separate Income Statement For the year Ended December 31, 2024 Notes Dec. 31, 2024 Dec. 31, 2023 Notes Dec. 31, 2024 Dec. 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 15 16 18 19 20 21 21 22 43 23 32 24 25 26 20 29 27 28 30 31 34 34 34 136,165,920 270,089,441 9,555,410 340,955,698 819,711 233,029,903 167,276,956 871,525 159,828 44,175,232 2,337,304 3,881,620 1,209,318,548 2,317,715 967,895,387 100,571 18,327,968 21,347,499 5,067,781 23,962,389 18,613,060 1,057,632,370 30,431,580 63,125,912 1,868,235 56,260,451 151,686,178 1,209,318,548 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 The accompanying notes are an integral part of these financial statements . (Auditors report attached) *Including net profit for the 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) 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 6 7 8 9 21.1 10 11 12 13 32 - 13 14 182,051,918 (91,235,495) 90,816,423 12,793,785 (5,728,572) 7,065,213 101,492 20,445,994 459,337 (13,333,919) (23,685,363) (4,468,236) 77,400,941 (23,280,925) 1,307,917 55,427,933 103,687,267 (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 16.39 16.19 8.50 8.39 Islam Zekry Group CFO & Executive Board Member Hisham Ezz Al-Arab CEO & Executive Board Member 260 • CIB Annual Report • 2024 2024 • CIB Annual Report • 261 Islam Zekry Group CFO & Executive Board Member Hisham Ezz Al-Arab CEO & Executive Board Member Financial Statements / Separate All amounts are presented in EGP thousands All amounts are presented in EGP thousands Separate Statement of Comprehensive Income For the year Ended December 31, 2024 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 Financial invesments 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 Dec. 31, 2024 Dec. 31, 2023 55,427,933 28,768,066 51,159 259,291 (157,217) (370,224) (131,008) (95,308) 8,809,718 (6,912,611) (459,337) (205,344) 901,196 1,530,823 937,229 1,884,353 Total comprehensive income for the year 65,140,457 25,098,262 Separate Cash Flow For the year Ended December 31, 2024 Notes Dec. 31, 2024 Dec. 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 release/charge for credit losses (Loans and advances to customers and banks) Other provisions release/charge Impairment release/charge for credit losses (due from banks) Impairment release/charge for credit losses ( financial investments) Impairment release/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 Revaluation differences impairment charge for due from banks Utilization of other provisions Exchange revaluation differences of other provisions Profits/losses from selling property and equipment Profits/losses from selling financial investments at fair value through OCI (Losses) from selling investments in associates Share based payments Impairment release/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 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 sale of investments in associates Payments for investment in subsidiaries Payments for purchases of property, equipment and branches construction Proceeds from selling property and equipment Proceeds from redemption of financial assets at amortized cost Payments for purchases of financial assets at amortized cost Payments 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 24 12 30 12 12 21 30 30 11 21.1 21.1 34.5 21.1 20 18 - 19 41 25 26 11 77,400,941 40,524,984 1,078,413 4,719,426 3,361,048 (93) (251,097) 37,939 884,569 2,334,846 2,815,599 (49,042) 2,001,475 17,620 (21,026,044) (5,442,433) 1,337,335 119,504 118 (9,586) 4,173,226 (2,246) (459,337) - 1,005,350 - 1,903 607 - (5,850) 1,213,331 (1,663) (205,344) (7,466) 754,817 1,435,819 71,484,897 46,273,772 (111,055,399) 487,341 (120,575,131) (21,843,037) (10,109,669) 292,585,311 (4,952,957) (6,643,252) 89,378,104 11,956 (200,000) (5,683,331) 2,246 1,870,762 (128,916,872) (113,066,779) 141,089,773 (104,892,245) 18,429,555 759,247 (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 (35,065,629) 262 • CIB Annual Report • 2024 2024 • CIB Annual Report • 263 Financial Statements / Separate All amounts are presented in EGP thousands Separate Cash Flow (Cont.) For the year Ended December 31, 2024 Notes Dec. 31, 2024 Dec. 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 28 15 16 17 15 11,478,482 (5,078,792) 1,994,432 236,570 8,630,692 (6,883,449) 233,912,193 227,028,744 136,165,920 270,089,658 88,574,015 (114,528,064) (65,753,867) 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) (87,518,918) (112,721,932) 227,028,744 233,912,193 s d n a s u o h t P G E n i d e t n e s e r p e r a s t n u o m a l l A y t i u q E l ’ s r e d o h e r a h S n i s e g n a h C f o t n e m e t a t S e t a r a p e S 6 7 8 9 6 3 , - - l a t o T n a p l e e y o p m e l r o f e v r e s e R k c o t s i p h s r e n w o i d e n a t e R i s g n n r a e , 1 3 6 0 2 7 7 6 , , 5 3 4 5 9 8 1 , , 6 4 3 7 9 4 6 1 , - , ) 8 8 8 8 3 7 3 ( , , 6 6 0 8 6 7 8 2 , - , ) 9 4 8 8 5 4 5 ( , - , 3 5 3 4 8 8 1 , - - - - - - , ) 2 4 2 4 6 1 1 ( , 7 1 8 4 5 7 , 7 1 8 4 5 7 , - - , ) 3 2 2 8 8 3 2 1 ( , - 8 0 3 5 9 , , ) 8 8 8 8 3 7 3 ( , , 6 6 0 8 6 7 8 2 , , 6 0 0 0 0 3 0 9 , , 0 1 0 6 8 4 1 , , 0 6 3 0 3 2 9 2 , - - - - - - e v r e s e r 1 8 9 1 1 , s k s i r g n k n a B i l i a c n a n fi t a s t e s s a e u a v l r i a f r o f e v r e s e R I C O h g u o r h t , ) 1 6 4 8 3 1 3 1 ( , - - - - ) 8 0 3 5 9 ( , , ) 9 4 8 8 5 4 5 ( , - - 0 3 2 5 1 , , 3 5 3 4 8 8 1 , - , ) 5 6 2 8 0 8 6 1 ( , ) 9 4 2 3 ( , 9 4 2 3 , - l a t i p a C e v r e s e r 7 4 9 8 1 , - 8 0 2 2 , - - - - - - - 5 5 1 1 2 , e v r e s e r k s i r l a r e n e G l a r e n e G e v r e s e r e v r e s e r l a g e L l a t i p a c p u d a p i d n a d e u s s I , 5 4 4 9 4 5 1 , - - - - - - - - - , 5 4 4 9 4 5 1 , , 8 5 8 6 9 0 7 2 , , 6 4 9 3 6 9 3 , , 4 3 1 5 2 8 9 2 , - , 9 4 8 3 4 7 2 1 , - - - - - - - , 7 0 7 0 4 8 9 3 , - - - - - - - - 8 0 4 6 0 8 , - - - - - - - - 6 7 8 9 6 3 , , 4 5 3 0 7 7 4 , , 0 1 0 5 9 1 0 3 , e c n a l a b g n i n n i g e B e s a e r c n i l a t i p a C 3 2 0 2 , 1 3 . c e D s e v r e s e r o t d e r r e f s n a r T m o r f E R o t d e r r e f s n a r T r i a f t a s t e s s a l a i c n a n fi I C O h g u o r h t e u l a v r a e y e h t r o f t fi o r p t e N d i a p d n e d i v i D ) s s o l ( / n i a g d e s i l a e r n u t e N r i a f t a s t e s s a l a i c n a n fi n o x a t r e t f a I C O h g u o r h t e u l a v e u l a v r i a f n i L C E f o t c e ff E e u l a v r i a f t a d e r u s a e m s t n e m u r t s n i t b e d f o I C O h g u o r h t k c o t s l s e e y o p m e f o t s o C ) P O S E ( n a l p p h s r e n w o i o t ) m o r f ( d e r r e f s n a r T e v r e s e r k s i r k n a b e c n a l a b g n i d n E 264 • CIB Annual Report • 2024 2024 • CIB Annual Report • 265 Financial Statements / Separate All amounts are presented in EGP thousands All amounts are presented in EGP thousands Proposed appropriation account For the year Ended December 31, 2024 Net profit after tax Deduct / add: 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 ending balance Total Dec. 31, 2024 Dec. 31, 2023 55,427,933 28,768,066 (2,246) 2,628 (1,663) (2,694) 55,428,315 28,763,709 462,294 370,224 366,986 95,308 56,260,833 29,226,003 2,771,284 18,971,298 7,607,895 5,542,832 178,000 831,425 554,283 19,803,816 56,260,833 1,438,320 21,958,960 1,660,726 2,876,371 110,239 431,456 287,637 462,294 29,226,003 0 7 5 6 3 2 , - - l a t o T n a p l e e y o p m e l r o f e v r e s e R k c o t s i p h s r e n w o i d e n a t e R i s g n n r a e , 6 0 0 0 0 3 0 9 , , 0 1 0 6 8 4 1 , , 0 6 3 0 3 2 9 2 , - ) 5 2 1 3 2 6 ( , , ) 3 4 9 8 9 3 3 2 ( , - , ) 9 2 4 6 6 3 5 ( , , 3 3 9 7 2 4 5 5 , , 9 1 5 5 4 1 9 , - 9 2 2 7 3 9 , , 0 5 3 5 0 0 1 , - - - - - - , 0 5 3 5 0 0 1 , , 8 7 1 6 8 6 1 5 1 , , 5 3 2 8 6 8 1 , , 1 5 4 0 6 2 6 5 , , ) 9 2 4 6 6 3 5 ( , - 4 2 2 0 7 3 , , 3 3 9 7 2 4 5 5 , - - - - - - e v r e s e r 0 3 2 5 1 , s k s i r g n k n a B i l i a c n a n fi t a s t e s s a e u a v l r i a f r o f e v r e s e R I C O h g u o r h t , ) 5 6 2 8 0 8 6 1 ( , - - - - ) 4 2 2 0 7 3 ( , , 9 1 5 5 4 1 9 , ) 4 9 6 2 ( , 4 9 6 2 , - - - - - 4 2 9 7 1 , - 9 2 2 7 3 9 , , ) 1 4 7 5 9 0 7 ( , l a t i p a C e v r e s e r 5 5 1 1 2 , - 3 6 6 1 , - - - - - - - 8 1 8 2 2 , e v r e s e r k s i r l a r e n e G l a r e n e G e v r e s e r e v r e s e r l a g e L l a t i p a c p u d a p i d n a d e u s s I , 5 4 4 9 4 5 1 , - - - - - - - - - , 5 4 4 9 4 5 1 , - - 0 7 5 6 3 2 , , 7 0 7 0 4 8 9 3 , , 4 5 3 0 7 7 4 , , 0 1 0 5 9 1 0 3 , , 5 8 0 2 8 5 2 2 , , 0 2 3 8 3 4 1 , - - - - - - - - - - - - - - , 2 9 7 2 2 4 2 6 , , 4 7 6 8 0 2 6 , - - - - - - - - , 0 8 5 1 3 4 0 3 , e c n a l a b g n i n n i g e B e s a e r c n i l a t i p a C 4 2 0 2 , 1 3 . c e D s e v r e s e r o t d e r r e f s n a r T m o r f E R o t d e r r e f s n a r T r i a f t a s t e s s a l a i c n a n fi I C O h g u o r h t e u l a v r a e y e h t r o f t fi o r p t e N d i a p d n e d i v i D ) s s o l ( / n i a g d e s i l a e r n u t e N r i a f t a s t e s s a l a i c n a n fi n o x a t r e t f a I C O h g u o r h t e u l a v e u l a v r i a f n i L C E f o t c e ff E e u l a v r i a f t a d e r u s a e m s t n e m u r t s n i t b e d f o I C O h g u o r h t k c o t s l s e e y o p m e f o t s o C ) P O S E ( n a l p p h s r e n w o i o t ) m o r f ( d e r r e f s n a r T e v r e s e r k s i r g n i k n a b e c n a l a b g n i d n E y t i u q E l ’ s r e d o h e r a h S n i s e g n a h C f o t n e m e t a t S e t a r a p e S 266 • CIB Annual Report • 2024 2024 • CIB Annual Report • 267 Financial Statements / Separate Notes to the separate financial statements For the year Ended December 31, 2024 1. General information Commercial International Bank-Egypt (CIB) S.A.E. provides retail, corporate and investment banking services in various parts of Egypt through 198 branches and 14 units employing 8,290 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 18, 2025. 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 and 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. 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, 2024 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 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. 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. 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. 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; unreal- ized losses are also eliminated unless the cost cannot be recovered. The Bank unifies the important accounting policies among subsidiaries taking into consideration both industrial and geographical differences. 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. 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-controlling interest acquired is recorded as a capital trans- action 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 equal 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. 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. 268 • CIB Annual Report • 2024 2024 • CIB Annual Report • 269 Financial Statements / Separate 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 year are translated 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 year 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 or Net trading from financial instruments at fair value through P&L for assets and liabilities for trading purposes. • 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 amortized cost 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 revaluation differences related to changes in the amortized cost are recognized in interest income from loans and similar income 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 of the ownership rights with the difference in the changes 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) (ii) (iii) level one is measured at quoted prices (unadjusted) in active markets for identical assets or liabilities, 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), 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 or finance or internal admin- istrative or ownership costs. 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 (excluding expected credit losses) 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 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 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 Methods of Measurement according to Business Models Financial Instrument Amortized Cost Equity Instruments Not Applicable Debt Instruments / Loans & Facilities Business Model of Assets held for Collecting Contractual Cash Flows Fair Value Through Other Comprehensive Income An irrevocable election at Initial Recognition Business Model of Assets held for Collecting Contractual Cash Flows & Selling Through Profit or Loss 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, )iii) 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. 270 • CIB Annual Report • 2024 2024 • CIB Annual Report • 271 Financial Statements / Separate 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 contractual 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 - maximizing cash flows by selling • The objective of the business model is to retain the financial as- sets to collect the contractual cash flows of the principal amount of the investment and the interest. • Sale is an exceptional event for the purpose of this model and under the terms of the criterion of a deterioration in the credit- worthiness of the issuer of the financial instrument. • Lowest sales in terms of turnover and value. • The Bank makes clear and reliable documentation of the rea- sons 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 busi- ness 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. • The conditions for classifying financial assets at fair value through profit and loss take into account: ■ It must be registered on a local or foreign stock exchange. ■ It must have had active trading during the three months pre- ceding the date of acquisition. Financial assets – reclassification. Financial instruments are reclassified only when the business model for managing the portfolio as a whole change. 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 expo- sures arising from loan commitments. 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 for default events possible within the next 12 months or until contractual maturity, (“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 (“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. For Stage 2 and stage 3 loans the ECL is measured on lifetime basis. Transfer between the three stages: Transfer from second stage to first stage: The financial asset shall not be transferred from the second stage to the first stage unless all the quantitative and qualitative elements of the first stage are met and the full past dues of principle and interest are paid after a period of three months regular payment and fulfillment of first stage requirements. Transfer from third stage to second stage: The financial asset shall not be transferred from the third stage to the second stage until all the following conditions have been met: • Completion of all quantitative and qualitative elements of the second stage. • Repayment of 25% of the balance of the outstanding financial assets, including unearned interest. • Regularity of payment for at least 12 months. Financial assets – write-off. Financial assets are written-off, in whole or in part, when the bank exhausts 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 consid- eration received in other comprehensive income is recognized in profit or loss except Gains / Losses 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. 272 • CIB Annual Report • 2024 2024 • CIB Annual Report • 273 Financial Statements / Separate 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 in net trading income unless the Bank chooses to designate the hybrid contract as at fair value 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 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 trading income’ line item of the income statement. 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 assets at fair value through profit or loss. 2.8. Interest income and expense Interest income and expense for all financial instruments except for those classified as held-for-trading or at fair value through profit or loss 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 loans 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 calculated 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 settle- ment 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. 2.12. Property and equipment Lands and buildings comprise mainly branches and offices. All property, plant and equipment are stated at historical cost less depreciation and impairment losses if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items. 274 • CIB Annual Report • 2024 2024 • CIB Annual Report • 275 Financial Statements / Separate 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: Asset Type Buildings Leasehold improvements Furniture and safes Air-conditioners Vehicles Computers and core systems Fixtures and fittings Useful Life 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 periodically, 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. Impairment of non-financial assets 2.13. 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. 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. 2.14. 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. 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 year. 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, 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 obligation on the balance sheet date. An appropriate 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. 276 • CIB Annual Report • 2024 2024 • CIB Annual Report • 277 Financial Statements / Separate 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 conditions 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. 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 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 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: 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. Income tax 2.18. 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 accor- dance 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 year 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. (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 statement of financial position with the results of discontinued operations presented sepa- rately in the income statement. 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 year. 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, definition of 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 correctly estimate the actual credit loss. The bank used forward-looking information for measurement of ECL, is primarily sourced from government and international financial institutions. The most significant forward-looking assumptions, for both corporate and retail, 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 2,868,724 thousand as of 31 December 2024 (31 December 2023: by EGP 1,817,837 thousand). A corresponding change towards the upturn scenario would result in a decrease in ECL by EGP 2,868,724 thousand as of 31 December 2024 (31 December 2023: by EGP 1,817,788 thousand). A 10% increase or decrease in LGD estimates would result in an increase or decrease in total expected credit loss allowances of EGP 3,462,531 thousand at 31 December 2024 (31 December 2023: increase or decrease of EGP 2,055,659 thousand). 278 • CIB Annual Report • 2024 2024 • CIB Annual Report • 279 Financial Statements / Separate 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. 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. 3.1.1. Credit risk measurement 3.1.1.1. Loans and advances to banks and customers Bank’s loans categories 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 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: 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. • Mortgages over residential properties. • Mortgage business assets such as premises, and inventory. • Mortgage financial instruments such as debt securities and equities. 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. 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. 280 • CIB Annual Report • 2024 2024 • CIB Annual Report • 281 Financial Statements / Separate 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 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. 3.1.2.4. 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. Impairment and provisioning policies 3.1.3. The internal category system 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 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 categories. 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, 2024 December 31, 2023 Loans and advances (%) Impairment provision (%) Loans and advances (%) Impairment provision (%) 85.18 10.85 0.73 3.24 46.98 24.40 5.96 22.66 81.88 14.01 0.57 3.54 32.91 36.75 2.54 27.80 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 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 sub-rating 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. 282 • CIB Annual Report • 2024 2024 • CIB Annual Report • 283 Financial Statements / Separate 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: The above table represents the Bank›s Maximum exposure to credit risk on December 31, 2024, before taking into account any held collateral. CBE Rating Categorization Provision% Internal rating Categorization For assets recognized on balance sheet, the exposures set out above are based on net carrying amounts as reported in the balance sheet. 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 Performing loans Performing loans Performing loans Performing loans Performing loans Regular watching Watch list Non performing loans Non performing loans Non performing loans 3.1.5. Maximum exposure to credit risk before collateral held As shown above,33.21% of the total maximum exposure is derived from loans and advances to banks and customers against 31.36% on December 31, 2023, while investments in debt instruments represent 37.80% against 35.92% on December 31, 2023. 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: • • • • 96.03% of the loans and advances are concentrated in the top two grades of the internal credit risk rating system against 95.89% on December 31, 2023 Loans and advances assessed individualy are valued EGP 12,938,556 thousand against EGP 9,413,975 thousand on December 31, 2023 The Bank has implemented more prudent processes when granting loans and advances during the financial year ended on December 31, 2024. 86.94% of the investments in debt Instruments are Egyptian sovereign instruments against 88.41% on December 31, 2023. Dec. 31, 2024 Dec. 31, 2023 3.1.6. Loans and advances Loans and advances balances are summarized as follows: In balance sheet items exposed to credit risk Gross Due from banks Less: ECL Gross loans and advances to banks Unamortized bills discount 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 and other contingent liabilities Letters of credit (import and export) Letter of guarantee Total 270,089,658 (217) 9,863,221 (174,320) (133,491) 3,691,074 15,027,813 54,878,117 5,773,316 86,877,125 142,330,243 79,963,890 1,033,383 (238,286) (84,093) (45,260,455) (3,036,429) 819,711 398,986,605 35,151,259 1,055,558,124 7,052,997 11,805,536 19,009,107 257,270,373 295,138,013 230,709,611 (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 13,018,038 748,278,464 8,021,170 4,631,478 9,068,007 160,735,346 182,456,001 Gross Loans and advances Less: ECL Unamortized bills discount Unamortized syndicated loans discount Suspended credit account Dec.31, 2024 Dec.31, 2023 Loans and advances to customers 389,574,961 Loans and advances to banks 9,863,221 Loans and advances to customers 265,103,674 Loans and advances to banks 823,739 45,260,455 238,286 84,093 3,036,429 133,491 174,320 - - 29,127,204 509,523 145,003 1,497,199 1,291 - - - Net 340,955,698 9,555,410 233,824,745 822,448 Expected credit losses for loans and advances totaled EGP 45,393,946. During the year, the Bank’s total loans and advances increased by 50.21% 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 . Total balances of loans and advances to customers divided by stages: Dec.31, 2024 Individuals Corporate and Business Banking Total Stage 1: 12 months 73,378,917 189,365,906 262,744,823 Stage 2: Life time 5,031,965 108,859,617 113,891,582 Stage 3: Life time 959,438 11,979,118 12,938,556 Total 79,370,320 310,204,641 389,574,961 284 • CIB Annual Report • 2024 2024 • CIB Annual Report • 285 Financial Statements / Separate Expected credit losses for loans and advances to customers divided by stages: Loans and advances, balances and expected credit losses to banks divided by stages: Dec.31, 2024 Individuals Corporate and Business Banking Total Stage 1: Expected credit losses over 12 months 2,894,845 7,338,556 Stage 2: Expected credit losses over a lifetime that is not creditworthy 164,833 24,577,096 Stage 3: Expected credit losses over a lifetime credit default 750,659 9,534,466 10,233,401 24,741,929 10,285,125 Loans and advances, balances and expected credit losses to banks divided by stages: Dec.31, 2024 Loans Expected credit losses Net of ECL Stage 1: 12 months 2,164,119 (30) 2,164,089 Stage 2: Life time 7,699,102 (133,461) 7,565,641 Stage 3: Life time - - - Off balance sheet items exposed to credit risk and expected credit losses divided by stages: Total 3,810,337 41,450,118 45,260,455 Total 9,863,221 (133,491) 9,729,730 Dec.31, 2024 Facilities and guarantees Expected credit losses Net of ECL Stage 1: 12 months 251,374,096 (7,041,186) 244,332,910 Stage 2: Life time 29,789,216 (5,116,697) 24,672,519 Stage 3: Life time 6,921,704 (3,439,478) 3,482,226 Total 288,085,016 (15,597,361) 272,487,655 Total balances of loans and advances 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 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 advances to customers divided by stages: Dec.31, 2023 Individuals Corporate and Business Banking Total Stage 1: Expected credit losses over 12 months 1,547,894 4,398,818 Stage 2: Expected credit losses over a lifetime that is not creditworthy 205,268 14,876,507 Stage 3: Expected credit losses over a lifetime credit default 477,297 7,621,420 5,946,712 15,081,775 8,098,717 Total 2,230,459 26,896,745 29,127,204 Dec.31, 2023 Loans Expected credit losses Net of ECL 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 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 of ECL 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 Expected credit losses divided by internal classification: Corporate and Business Banking: Scope of probability of default (PD) 1%-11% 11%-21% 21%-36% 100% Stage 1: Expected credit losses over 12 months Stage 2: Expected credit losses over a lifetime that is not creditworthy 6,777,332 11,518,502 561,224 - - 10,352,190 2,706,404 Stage 3: Expected credit losses over a lifetime credit default - - - Total 18,295,834 10,913,414 2,706,404 - 9,534,466 9,534,466 7,338,556 24,577,096 9,534,466 41,450,118 Scope of probability of default (PD) 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 1%-10% 2,894,845 >11% >11% 100% - - - - 164,706 127 - 2,894,845 164,833 - - - 750,659 750,659 Total 2,894,845 164,706 127 750,659 3,810,337 Dec.31, 2024 Performing loans (1-5) Regular watching (6) Watch list (7) Non-performing loans (8-10) Total Individual Loans: Dec.31, 2024 Performing loans (1-5) Regular watching (6) Watch list (7) Non-performing loans (8-10) Total 286 • CIB Annual Report • 2024 2024 • CIB Annual Report • 287 Financial Statements / Separate The total balances of loans and facilities divided according to the internal classification: Corporate and Business Banking: Individual Loans: Dec.31, 2024 Performing loans (1-5) Regular watching (6) Watch list (7) Non-performing loans (8-10) Total Individual Loans: Dec.31, 2024 Performing loans (1-5) Regular watching (6) Watch list (7) Non-performing loans (8-10) Total Scope of probability of default (PD) 1%-11% 11%-21% 21%-36% 100% Stage 1: 12 months Stage 2: Life time Stage 3: Life time 176,289,314 80,712,454 13,076,592 - 25,225,033 2,922,130 - - - Total 257,001,768 38,301,625 2,922,130 - - 11,979,118 11,979,118 189,365,906 108,859,617 11,979,118 310,204,641 Scope of probability of default (PD) Stage 1: 12 months 1%-10% 73,378,917 >11% >11% 100% - - - Stage 2: Life time - 5,031,321 644 - 73,378,917 5,031,965 Stage 3: Life time - - - 959,438 959,438 Total 73,378,917 5,031,321 644 959,438 79,370,320 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 - - - Total 8,037,216 10,498,180 739,929 - 7,621,420 7,621,420 4,398,818 14,876,507 7,621,420 26,896,745 Dec.31, 2023 Performing loans (1-5) Regular watching (6) Watch list (7) Non-performing loans (8-10) Total Total 1,547,894 205,184 84 477,297 2,230,459 Total 163,312,641 31,667,150 1,472,230 Scope of probability of default (PD) 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 1%-10% 1,547,894 >11% >11% 100% - - - - 205,184 84 - 1,547,894 205,268 - - - 477,297 477,297 Dec.31, 2023 Performing loans (1-5) Regular watching (6) Watch list (7) Non-performing loans (8-10) Total The total balances of loans and facilities divided according to the internal classification: Corporate and Business Banking loans: Dec.31, 2023 Performing loans (1-5) Regular watching (6) Watch list (7) Non-performing loans (8-10) Total Individual Loans: Dec.31, 2023 Performing loans (1-5) Regular watching (6) Watch list (7) Non-performing loans (8-10) Total Scope of probability of default (PD) Stage 1: 12 months Stage 2: Life time Stage 3: Life time 1%-12% 116,503,071 46,809,570 11,677,875 - 19,989,275 1,472,230 12%-21% 21%-37% 100% - - - - - 8,586,769 8,586,769 128,180,946 68,271,075 8,586,769 205,038,790 Scope of probability of default (PD) Stage 1: 12 months 1%-10% 53,593,845 >11% >11% 100% - - - Stage 2: Life time - 5,605,156 38,677 - 53,593,845 5,643,833 Stage 3: Life time - - - 827,206 827,206 Total 53,593,845 5,605,156 38,677 827,206 60,064,884 288 • CIB Annual Report • 2024 2024 • CIB Annual Report • 289 Financial Statements / Separate The following tables provide information on the quality of financial assets subject to ECL calculation at the end of financial year: Dec.31, 2024 Due from banks Credit rating Performing loans Regular watching Watch list Non-performing loans Total Less: ECL Net Individual Loans: 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 27,850,491 - - - 27,850,491 (217) 27,850,274 Stage 1: 12 months 73,378,917 - - - 73,378,917 (2,894,845) 70,484,072 - - - - - - - Stage 2: Life time - 5,031,321 644 - 5,031,965 (164,833) 4,867,132 - - - - - - - Stage 3: Life time - - - 959,438 959,438 (750,659) 208,779 Corporate and Business Banking: 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 176,289,314 13,076,592 - - 189,365,906 (7,338,556) 182,027,350 80,712,454 25,225,033 2,922,130 - 108,859,617 (24,577,096) 84,282,521 - - - 11,979,118 11,979,118 (9,534,466) 2,444,652 Debt Instruments at Fair value through OCI 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 43,877,507 86,672,222 - - 5,096,905 - - - 130,549,729 (3,786,502) 5,096,905 (15,025) - - - - - - Total 27,850,491 - - - 27,850,491 (217) 27,850,274 Total 73,378,917 5,031,321 644 959,438 79,370,320 (3,810,337) 75,559,983 Total 257,001,768 38,301,625 2,922,130 11,979,118 310,204,641 (41,450,118) 268,754,523 Total 48,974,412 86,672,222 - - 135,646,634 (3,801,527) Debt Instruments at amortized cost Credit rating Stage 1: 12 months Stage 2: Life time Stage 3: Life time Performing loans Regular watching Watch list Non-performing loans Total Less: ECL Net 3,214,834 6,987,590 - - 10,202,424 (459,049) 9,743,375 - - - - - - - - - - - - - - Total 3,214,834 6,987,590 - - 10,202,424 (459,049) 9,743,375 The following tables provide information on the quality of financial assets subject to ECL calculation at the end of financial year: Dec.31, 2023 Due from banks Credit rating Performing loans Regular watching Watch list Non-performing loans Total Less: ECL Net Individual Loans: 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 5,005,918 - - - 5,005,918 (192) 5,005,726 Stage 1: 12 months 53,593,845 - - - 53,593,845 (1,547,894) 52,045,951 - - - - - - - Stage 2: Life time - 5,605,156 38,677 - 5,643,833 (205,268) 5,438,565 - - - - - - - Stage 3: Life time - - - 827,206 827,206 (477,297) 349,909 Corporate and Business Banking: 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 116,503,071 11,677,875 - - 128,180,946 (4,398,818) 123,782,128 46,809,570 19,989,275 1,472,230 - 68,271,075 (14,876,507) 53,394,568 - - - 8,586,769 8,586,769 (7,621,420) 965,349 Total 5,005,918 - - - 5,005,918 (192) 5,005,726 Total 53,593,845 5,605,156 38,677 827,206 60,064,884 (2,230,459) 57,834,425 Total 163,312,641 31,667,150 1,472,230 8,586,769 205,038,790 (26,896,745) 178,142,045 290 • CIB Annual Report • 2024 2024 • CIB Annual Report • 291 Financial Statements / Separate Debt Instruments at Fair value through OCI Credit rating Performing loans Regular watching Watch list Non-performing loans Total ECL Stage 1: 12 months Stage 2: Life time Stage 3: Life time 30,709,678 47,951,170 - - 78,660,848 (2,864,298) - - - - - - - - - - - - Debt Instruments at amortized cost Credit rating Stage 1: 12 months Stage 2: Life time Stage 3: Life time Performing loans Regular watching Watch list Non-performing loans Total Less: ECL Net 443,636 4,071,573 - - 4,515,209 (190,536) 4,324,673 - - - - - - - - - - - - - - The table below displays ECL changes within 12 months resulting from the following factors: Dec.31, 2024 Due from banks Beginning balance Released/charged during the year Transferred to stage 1 Transferred to stage 2 Transferred to stage 3 Cumulative foreign currencies translation differences Ending balance Individual Loans: Beginning balance Released/charged during the year Write off during the year Recoveries Ending balance Stage 1 12 months ECL 192 (93) - - - 118 217 Stage 1 12 months ECL 1,547,894 1,346,951 - - 2,894,845 Stage 2 Life time ECL - - - - - - - Stage 2 Life time ECL 205,268 (40,435) - - Stage 3 Life time ECL - - - - - - - Stage 3 Life time ECL 477,297 379,871 (264,191) 157,682 164,833 750,659 Total 30,709,678 47,951,170 - - 78,660,848 (2,864,298) Total 443,636 4,071,573 - - 4,515,209 (190,536) 4,324,673 Total 192 (93) - - - 118 217 Total 2,230,459 1,686,387 (264,191) 157,682 3,810,337 Corporate and Business Banking: Beginning balance Released/charged during the year Transferred to stage 1 Transferred to stage 2 Transferred to stage 3 ECL Transfer to Other provisions Recoveries Write off during the year Cumulative foreign currencies translation differences Ending balance Debt Instruments at Fair value through OCI Beginning balance Released/charged during the year Transferred to stage 1 Transferred to stage 2 Transferred to stage 3 Cumulative foreign currencies translation differences Ending balance Debt Instruments at amortized cost Beginning balance Released/charged during the year Transferred to stage 1 Transferred to stage 2 Transferred to stage 3 Cumulative foreign currencies translation differences Ending balance Stage 1 12 months ECL 4,398,818 2,832,193 197,123 (280,051) (30,105) - - - Stage 2 Life time ECL 14,876,507 1,014,784 (197,123) 2,185,566 (870,649) - - - Stage 3 Life time ECL 7,621,420 (945,343) - (1,905,515) 900,754 (1,276,440) 710,589 (248,830) Total 26,896,745 2,901,634 - - - (1,276,440) 710,589 (248,830) 220,578 7,568,011 4,677,831 12,466,420 7,338,556 24,577,096 9,534,466 41,450,118 Stage 1 12 months ECL 2,864,298 (414,285) - (846) - 1,337,335 3,786,502 Stage 1 12 months ECL 190,536 149,009 - - - 119,504 459,049 Stage 2 Life time ECL - 14,179 - 846 - - 15,025 Stage 2 Life time ECL - - - - - - - Stage 3 Life time ECL - - - - - - - Stage 3 Life time ECL - - - - - - - Total 2,864,298 (400,106) - - - 1,337,335 3,801,527 Total 190,536 149,009 - - - 119,504 459,049 292 • CIB Annual Report • 2024 2024 • CIB Annual Report • 293 Financial Statements / Separate The table below displays ECL changes within 12 months resulting from the following factors: Dec.31, 2023 Due from banks Beginning balance Released/charged during the year Transferred to stage 1 Transferred to stage 2 Transferred to stage 3 Ending balance Individual Loans: Beginning balance Released/charged during the year Write off during the year Recoveries Ending balance Corporate and Business Banking: Beginning balance Released/charged during the year Transferred to stage 1 Transferred to stage 2 Transferred to stage 3 Recoveries Write off during the year Cumulative foreign currencies translation differences Ending balance Debt Instruments at Fair value through OCI Beginning balance Released/charged during the year Transferred to stage 1 Transferred to stage 2 Transferred to stage 3 Cumulative foreign currencies translation differences Ending balance Stage 1 12 months ECL 38,726 (38,534) - - - 192 Stage 1 12 months ECL 1,023,758 524,136 - - 1,547,894 Stage 1 12 months ECL 2,605,958 1,667,029 147,558 (69,797) (15,609) - - Stage 2 Life time ECL 10,508 (10,508) - - - Stage 3 Life time ECL - - - - - - - Stage 2 Life time ECL 171,630 33,638 - - Stage 3 Life time ECL 386,953 206,159 (241,414) 125,599 205,268 477,297 Stage 2 Life time ECL 11,044,132 1,182,885 (147,558) 328,459 (7,162) - - Stage 3 Life time ECL 9,169,583 (1,270,079) - (258,662) 22,771 51,666 (2,236,815) Total 49,234 (49,042) - - - 192 Total 1,582,341 763,933 (241,414) 125,599 2,230,459 Total 22,819,673 1,579,835 - - - 51,666 (2,236,815) 63,679 2,475,751 2,142,956 4,682,386 4,398,818 14,876,507 7,621,420 26,896,745 Stage 1 12 months ECL 979,945 1,882,450 - - - 1,903 2,864,298 Stage 2 Life time ECL - - - - - - - Stage 3 Life time ECL - - - - - - - Total 979,945 1,882,450 - - - 1,903 2,864,298 Debt Instruments at amortized cost Beginning balance Released/charged during the year Transferred to stage 1 Transferred to stage 2 Transferred to stage 3 Cumulative foreign currencies translation differences Ending balance Stage 1 12 months ECL Stage 2 Life time ECL 70,904 119,025 - - - 607 190,536 - - - - - - - Stage 3 Life time ECL - - - - - - - Total 70,904 119,025 - - - 607 190,536 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 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: Corporate - Loans and advances to customers Total Dec.31, 2024 Dec.31, 2023 24,514,749 24,514,749 18,448,475 18,448,475 3.1.7. Financial investments: The following tables provide analysis of financial investment balances by rating agencies at the end of the year: Dec.31, 2024 Amortized cost AAA to AA+ AA to AA- A+ to A- Less than A- Not rated Total Dec.31, 2024 Fair value through OCI AAA to AA+ AA to AA- A+ to A- Less than A- Not rated Total Stage 1: 12 months - - - 167,276,956 - 167,276,956 Stage 1: 12 months 13,289,883 1,898,512 1,215,276 210,209,073 - 226,612,744 Stage 2: Life time - - - - - - Stage 2: Life time - - - 5,096,905 - 5,096,905 Stage 3: Life time - - - - - - Stage 3: Life time - - - - - - Total - - - 167,276,956 - 167,276,956 Total 13,289,883 1,898,512 1,215,276 215,305,978 - 231,709,649 294 • CIB Annual Report • 2024 2024 • CIB Annual Report • 295 Financial Statements / Separate The following table displays analysis of expected credit losses on financial investments by rating agencies at the end of the year: Dec.31, 2024 Fair value through OCI & Amortized cost AAA to AA+ AA to AA- A+ to A- Less than A- Not rated Total Stage 1: Expected credit losses over 12 months - - - 4,245,551 - 4,245,551 Stage 2: Expected credit losses over a lifetime that is not creditworthy - - - 15,025 - 15,025 Stage 3: Expected credit losses over a lifetime credit default - - - - - - 3.1.7. Financial investments: The following tables provide analysis of financial investment balances by rating agencies at the end of the year: Dec.31, 2023 Amortized cost AAA to AA+ AA to AA- A+ to A- Less than A- Not rated Total Dec.31, 2023 Fair value through OCI AAA to AA+ 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 - - - - - - Stage 3: Life time - - - - - - Stage 3: Life time - - - - - - Total - - - 4,260,576 - 4,260,576 Total - - - 37,847,114 - 37,847,114 Total - - - 230,954,804 - 230,954,804 The following table displays analysis of expected credit losses on financial investments by rating agencies at the end of the year: Dec.31, 2023 Fair value through OCI & Amortized cost AAA to AA+ AA to AA- A+ to A- Less than A- Not rated Total 296 • CIB Annual Report • 2024 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 - - - - - - Total - - - 3,054,834 - 3,054,834 3.1.8. Concentration of risks of financial assets with credit risk exposure 3.1.8.1. Geographical sectors The following table 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. Greater Cairo Alex, Delta and Sinai Upper Egypt Outside Egypt Total Dec.31, 2024 Gross due from banks Less: ECL Gross loans and advances to banks Unamortized bills discount 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, 2023 201,412,533 - 3,558,716 (57,131) (6,245) 2,609,592 12,008,842 39,020,961 5,558,112 77,164,832 92,993,035 77,801,024 478,683 (231,463) - - - - - 812,452 2,522,141 12,567,869 185,198 6,879,654 38,577,326 2,162,866 554,700 (6,823) (84,093) - - - - - - 68,677,125 270,089,658 (217) (217) 6,304,505 9,863,221 (117,189) (127,246) (174,320) (133,491) 269,030 496,830 3,289,287 30,006 2,832,639 10,759,882 - - - - - - - - - - - - - - - - 3,691,074 15,027,813 54,878,117 5,773,316 86,877,125 142,330,243 79,963,890 1,033,383 (238,286) (84,093) (45,260,455) (3,036,429) 819,711 819,711 21,430,928 96,987,617 398,986,605 1,020,406,865 (35,470,606) (5,495,566) (4,294,283) (3,020,028) (336) (16,065) - 377,555,677 851,292,441 - - - - 58,759,481 13,367,326 657,529,834 42,805,879 9,179,022 25,745,691 735,260,426 2024 • CIB Annual Report • 297 Financial Statements / Separate l a t o T l i a u d v d n i I r e h t O s e i t i v i t c a r o t c e s e d a r t t n e m n r e v o G l i a t e r d n a l e a s e o h W l e t a t s e l a e R g n i r u t c a f u n a M s n o i t u t i t s n i l i a c n a n F i ) 7 1 2 ( , 8 5 6 9 8 0 0 7 2 , , 1 2 2 3 6 8 9 , ) 0 2 3 4 7 1 ( , ) 1 9 4 3 3 1 ( , , 4 7 0 1 9 6 3 , , 3 1 8 7 2 0 5 1 , , 7 1 1 8 7 8 4 5 , , 6 1 3 3 7 7 5 , , 5 2 1 7 7 8 6 8 , , 3 4 2 0 3 3 2 4 1 , , 0 9 8 3 6 9 9 7 , , 3 8 3 3 3 0 1 , , ) 6 8 2 8 3 2 ( ) 3 9 0 4 8 ( , , ) 5 5 4 0 6 2 5 4 ( , 1 1 7 9 1 8 , , ) 9 2 4 6 3 0 3 ( , , 5 0 6 6 8 9 8 9 3 , , 5 6 8 6 0 4 0 2 0 1 , , - - - - - , 4 7 0 1 9 6 3 , , 3 1 8 7 2 0 5 1 , , 7 1 1 8 7 8 4 5 , , 6 1 3 3 7 7 5 , - - - - - ) 0 3 ( , ) 7 3 3 0 1 8 3 ( , - - - , 3 5 9 9 5 5 5 7 , , 6 2 4 0 6 2 5 3 7 , , 5 2 4 4 3 8 7 5 , - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ) 7 1 2 ( , 1 2 2 3 6 8 9 , - - - - ) 0 2 3 4 7 1 ( , ) 1 9 4 3 3 1 ( , , 8 5 6 9 8 0 0 7 2 , , 2 3 1 4 2 0 8 1 , , 6 3 1 8 0 3 3 4 , , 3 3 7 0 3 0 8 , , 9 4 1 2 1 9 3 1 , , 3 8 6 8 4 8 3 , , 1 4 2 6 7 8 2 , , 8 2 6 2 6 4 4 , , 0 0 1 9 6 8 1 6 , - - ) 7 0 7 9 6 ( , - - - , ) 3 4 6 3 9 6 8 1 ( , - - , ) 5 2 0 4 5 5 2 ( , - - , ) 6 9 0 2 4 9 8 ( , , 4 9 5 8 4 0 7 6 3 , , 1 2 5 7 7 4 4 4 , , 1 8 9 2 6 0 0 3 , , 0 8 4 8 1 9 1 4 4 , , 9 2 8 8 5 0 9 8 2 , - - - - - 0 0 0 5 , ) 9 7 9 ( ) 5 5 9 0 3 4 ( , , 0 9 9 7 9 2 6 , , 0 3 4 3 2 5 5 , , 6 8 3 2 5 0 0 1 , , 0 6 5 5 3 4 8 3 , , 1 3 6 5 8 4 8 , , 7 7 3 5 7 2 3 , , 3 1 6 2 9 5 5 , , 1 5 5 5 6 0 2 7 , , 3 9 1 4 5 5 7 , ) 3 9 0 4 8 ( , - ) 2 7 8 0 6 1 ( , ) 7 7 6 7 ( , - , 3 8 3 8 2 0 1 , - - - - - ) 5 2 4 1 8 4 ( , , ) 3 9 1 8 9 6 1 ( , , ) 3 8 6 1 0 0 1 1 ( , , 9 8 7 2 9 8 6 , - - - 6 5 3 5 8 4 , - 1 1 7 9 1 8 , ) 8 4 5 3 8 6 ( , , 1 1 0 8 3 9 1 3 , , 8 1 2 7 7 9 6 1 , , 2 0 9 2 9 5 7 0 1 , , 1 0 8 2 8 5 7 2 3 , , 4 6 5 2 6 0 6 1 , , 1 6 9 9 8 2 1 6 , , 6 3 2 8 2 4 5 7 2 , s k n a b o t s e c n a v d a d n a s n a o l s s o r G t n u o c s i d s l l i b d e z i t r o m a n U o t s e c n a v d a d n a s n a o l s s o r G L C E s k n a b m o r f e u d s s o r G 4 2 0 2 , 1 3 . c e D L C E s n a o l l a n o s r e P - s d r a c t i d e r C - s e g a g t r o M - : e t a r o p r o C s n a o l t c e r i D s t f a r d r e v O - - s r e m o t s u c : l a u d i v i d n I s t f a r d r e v O - s n a o l d e t a c i d n y S - s n a o l r e h t O - s n a o l d e t a c i d n y s d e z i t r o m a n U t n u o c s i d s l l i b d e z i t r o m a n U t n u o c s i d L C E s t n e m u r t s n i l a i c n a n fi e v i t a v i r e D t n u o c c a t i d e r c d e d n e p s u S : s t n e m t s e v n i l a i c n a n i F s t n e m u r t s n i t b e D - 3 2 0 2 , 1 3 r e b m e c e D t a s a l a t o T l a t o T ’ . s e i t i v i t c a s r e m o t s u c s k n a B e h t y b d e z i r o g e t a c e u l a v k o o b r i e h t t a e r u s o p x e t i d e r c n i a m ’ s s k n a B e h t s e s y l a n a e l b a t g n w o i l l o f e Th s r o t c e s y r t s u d n I . 2 . 8 . 1 . 3 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. 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. 298 • CIB Annual Report • 2024 2024 • CIB Annual Report • 299 Financial Statements / Separate 3.2.2. Value at risk (VaR) Summary Last 12 months ended 31/12/2024 Last 12 months ended 31/12/2023 Total VaR by risk type Medium High Low Medium High Foreign exchange risk 36,295 100,953 656 16,184 103,290 Low 228 Interest rate risk 371,110 767,629 170,967 257,479 502,517 139,481 - For non trading purposes 328,629 518,782 164,234 255,617 495,768 139,248 - For trading purposes 42,481 248,847 6,733 1,862 6,749 233 Total VaR 318,479 508,111 164,078 135,847 309,967 58,224 Last 12 months ended 31/12/2024 Last 12 months ended 31/12/2023 Trading portfolio VaR by risk type Medium High Foreign exchange risk 36,295 100,953 Interest rate risk 42,481 248,847 - For trading purposes 42,481 248,847 Total VaR 54,639 306,713 Low 656 6,733 6,733 656 Medium High Low 16,184 103,290 1,862 1,862 6,749 6,749 16,184 103,290 228 233 233 228 Last 12 months ended 31/12/2024 Last 12 months ended 31/12/2023 Non trading portfolio VaR by risk type Medium High Low Medium High Low - Interest rate risk 328,629 518,782 164,234 255,617 495,768 139,248 Total VaR 328,629 518,782 164,234 255,617 495,768 139,248 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. 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, 2024 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, 2023 Total financial liabilities as of December 31, 2023 Net financial position as of December 31, 2023 EGP USD EUR GBP Equivalent EGP Total Other 120,531,087 60,000,010 - 281,595,638 25,383 10,093,222 178,164,828 9,863,221 100,395,174 794,328 3,732,405 28,714,665 - 7,458,984 - 342,349 2,909,642 - 15,653 - 1,466,857 300,513 - 109,512 - 136,165,920 270,089,658 9,863,221 389,574,961 819,711 285,545,536 108,321,980 6,268,029 630,363 - 400,765,908 516,251 - - - 355,274 871,525 748,213,905 407,632,753 46,174,083 3,898,007 2,232,156 1,208,150,904 606,118 562,555,492 40,666 - 166,073 1,664,319 362,104,241 59,905 5,067,781 22,917,007 39,245 37,332,226 - - 879,309 8,033 3,874,257 - - - - 2,029,171 - - - 2,317,715 967,895,387 100,571 5,067,781 23,962,389 563,368,349 391,813,253 38,250,780 3,882,290 2,029,171 999,343,843 184,845,556 15,819,500 7,923,303 15,717 202,985 208,807,061 654,377,417 170,957,320 11,879,962 2,070,774 1,200,563 840,486,036 464,248,284 213,526,031 22,671,064 2,001,299 988,972 703,435,650 190,129,133 (42,568,711) (10,791,102) 69,475 211,591 137,050,386 300 • CIB Annual Report • 2024 2024 • CIB Annual Report • 301 Financial Statements / Separate Interest rate risk 3.2.4. The Bank addresses exposure to the effects of fluctuations in the prevailing levels of market interest rates that arises from the re-pricing maturity structure of interest-sensitive assets and liabilities. It is assessed for both the earnings and economic value perspectives. The Board sets limits on the interest rate repricing gaps 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 Equivalent EGP Non- Interest Bearing Total - - - 201,682,905 58,148,840 8,134,208 - - 865,924 1,499,745 5,972,388 1,525,164 - - - 136,165,920 136,165,920 2,123,705 270,089,658 - 9,863,221 277,042,690 38,999,154 27,376,239 36,427,355 9,729,523 - 389,574,961 22,278 3,106 - 111,707 682,620 - 819,711 68,934,335 40,204,938 107,573,088 155,072,539 28,016,743 964,265 400,765,908 - - - - - 871,525 871,525 548,548,132 138,855,783 149,055,923 193,136,765 38,428,886 140,125,415 1,208,150,904 1,020,335 423,728,549 - 101,090,172 - 89,135,074 - 191,116,535 - 551,155 1,297,380 162,273,902 2,317,715 967,895,387 37,684 - 36,823 2,982 59,905 - - 14,817,798 - 8,451,161 5,067,781 656,607 - - - - - - 100,571 5,067,781 23,962,389 424,823,391 115,910,952 97,646,140 196,840,923 551,155 163,571,282 999,343,843 123,724,741 22,944,831 51,409,783 (3,704,158) 37,877,731 (23,445,867) 208,807,061 458,599,418 79,616,736 95,858,130 114,206,370 31,718,399 75,933,533 855,932,586 287,904,673 89,884,928 60,362,020 156,146,557 808,683 123,775,339 718,882,200 170,694,745 (10,268,192) 35,496,110 (41,940,187) 30,909,716 (47,841,806) 137,050,386 Dec.31, 2024 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 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 Issued debt instruments Other loans Total financial liabilities Total interest re- pricing gap Total financial assets as of December 31, 2023 Total financial liabilities as of December 31, 2023 Total interest re- pricing gap as of December 31, 2023 3.3. Liquidity risk Liquidity risk specifies the Bank’s inability to replace withdrawn funds and meet consequential payment obligations due to the fall of financial liabilities. The consequence may be the failure to meet obligations to repay depositors 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 year, 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. 302 • CIB Annual Report • 2024 2024 • CIB Annual Report • 303 Financial Statements / Separate 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 to 1 month One to three months Three months to one year One year to five years Over five years Total 2,441,383 - - - - 2,441,383 101,348,113 109,871,388 301,479,758 563,044,483 18,359,616 1,094,103,358 16,767 39,963 31,911 400,705 148,739 5,172,710 - 5,370,127 2,567,007 19,128,652 14,367,883 36,504,210 103,846,226 110,304,004 304,195,504 587,345,845 32,727,499 1,138,419,078 298,164,069 164,683,982 305,808,215 599,186,506 127,958,789 1,495,801,561 Up to 1 month One to three months Three months to one year One year to five years Over five years Total 11,971,567 65,462 552,098 - - 12,589,127 61,187,716 76,925,779 193,715,435 414,820,323 12,533,110 759,182,363 10,189 137,513 19,720 215,330 90,384 658,073 3,257,074 5,372,219 - 3,377,367 12,080,624 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 Dec.31, 2024 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, 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) The disclosed figures cannot be compared with the corresponding items in the financial statements, as they include the principal amount and their 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, some treasury bills have been pledged. The Bank would also be able to meet unexpected net cash outflows by selling securities and accessing additional funding sources. 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 futures.and exchange traded that will be settled on a net basis. 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. The amounts disclosed in the table are the contractual undiscounted cash flows: Dec.31, 2024 Liabilities Derivatives financial instruments Foreign exchange derivatives Interest rate derivatives Total Total as of Dec. 31, 2023 Up to 1 month One to three months Three months to one year One year to five years Total 37,684 - 37,684 22,199 2,982 - 2,982 16,822 - 59,905 59,905 6,895 - - - 95,018 40,666 59,905 100,571 140,934 Off balance sheet items Dec.31, 2024 Letters of credit, guarantees and other commitments Total Total as of Dec. 31, 2023 Dec.31, 2024 Credit facilities commitments Total Total as of Dec. 31, 2023 Up to 1 year 1-5 years Over 5 years Total 169,536,332 88,297,610 30,251,074 288,085,016 169,536,332 112,440,402 88,297,610 48,167,837 30,251,074 13,826,592 288,085,016 174,434,831 Up to 1 year 4,661,895 4,661,895 4,273,566 1-5 years 1,957,876 1,957,876 1,078,987 Total 6,619,771 6,619,771 5,352,553 304 • CIB Annual Report • 2024 2024 • CIB Annual Report • 305 Financial Statements / Separate 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, 2024 Dec.31, 2023 Dec.31, 2024 Dec.31, 2023 270,089,658 9,863,221 389,574,961 230,709,611 823,739 265,103,674 270,942,963 9,697,155 391,039,366 231,443,734 815,060 267,321,303 167,736,005 837,263,845 38,037,650 534,674,674 167,104,571 838,784,055 36,249,803 535,829,900 2,317,715 967,895,387 5,067,781 23,962,389 999,243,272 12,427,384 675,310,076 3,073,349 12,483,907 703,294,716 2,317,761 971,590,917 5,076,291 24,242,886 1,003,227,855 12,460,019 679,145,586 3,074,203 12,613,487 707,293,295 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 2024: 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. Dec.31, 2024 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 Fair value measurement using Quoted prices in active markets (Level 1) Significant observable inputs (level 2) Valuation techniques (level 3) Total 142,130,887 142,130,887 90,899,016 90,899,016 - - 233,029,903 233,029,903 - - - 167,104,571 - - 167,104,571 - - - - - - - - - - - 5,076,291 24,242,886 - 29,319,177 819,711 100,571 920,282 - 9,697,155 391,039,366 400,736,521 - - 971,590,917 971,590,917 819,711 100,571 920,282 167,104,571 9,697,155 391,039,366 567,841,092 5,076,291 24,242,886 971,590,917 1,000,910,094 306 • CIB Annual Report • 2024 2024 • CIB Annual Report • 307 Financial Statements / Separate 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 Fair value measurement using Quoted prices in active markets (Level 1) Significant observable inputs (level 2) Valuation techniques (level 3) Total 114,372,488 114,372,488 117,918,110 117,918,110 - - 232,290,598 232,290,598 - - - 36,249,803 - - 36,249,803 - - - - - - - - - - - 3,074,203 12,613,487 - 15,687,690 1,101,896 140,934 1,242,830 1,101,896 140,934 1,242,830 - 815,060 267,321,303 268,136,363 - - 679,145,586 679,145,586 36,249,803 815,060 267,321,303 304,386,166 3,074,203 12,613,487 679,145,586 694,833,276 Fair value of financial assets and liabilities Due from banks The fair value of deposits at banks is estimated based on the discounted cash flows of these contracts, using the effective interest rate. Loans and advances to banks The fair value of loans and advances to banks is represented by the present value of expected future cash flows. These cash flows are discounted using the effective interest rate to determine the fair value. Loans and advances to customers The expected fair value of loans and facilities is represented by the present value of future expected cash inflows. These cash flows are discounted using the effective interest rate to calculate the 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. For equity shares listed in an active market, they are evaluated based on market prices. Otherwise, an external valuator are relied upon to evaluate those stocks. Due to other banks and customers The estimated fair value of demand deposits, which include non-interest-bearing deposits, is represented by the amount payable on demand. The fair value of time deposits and other loans not traded in active markets is determined based on discounted cash flows, using the effective interest rate. Issued debt instruments The total fair value is calculated based on a discounted cash flow model using the effective interest rate. 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 othe 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 30.4 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, and D-SIBs required by CBE. 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 Loss (ECL) for debt instrument, loans and credit facilities capped by 1.25% risk weighted assets and contingent liabilities ,subordinated loans\deposits (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 guarantees according to CBE regulations. 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 year. 308 • CIB Annual Report • 2024 2024 • CIB Annual Report • 309 Financial Statements / Separate The tables below summarize the compositions of capital base , capital adequacy ratio and leverage ratio. 3.5.1 Capital Adequacy Ratio Tier 1 capital Issued and Paid-in Capital Reserves Retained Earnings (Losses) Total deductions from common equity tier 1 capital 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 qualifying capital base Risk weighted assets and contingent liabilities Total credit risk Total market risk Total operational risk Cross border over limit Total **Capital adequacy ratio (%) Dec. 31, 2024 Dec. 31, 2023 30,431,580 64,928,142 1,549,380 (2,849,288) 40,451,671 134,511,485 30,195,010 30,800,441 332,888 (1,829,068) 24,254,227 83,753,498 19,911,465 12,057,970 7,413,006 4,281,122 27,324,471 161,835,956 16,339,092 100,092,590 593,351,983 14,158,820 63,467,763 - 670,978,566 24.1% 343,408,395 - 36,038,665 2,060,413 381,507,473 26.2% * Not more than 1.25% of total assets and contingent liabilities weighted by credit risk weights. ** Based on consolidated financial statement figures and in accordance with Central Bank of Egypt regulation issued on 24 December 2012. 3.5.2 Leverage ratio Total qualifying tier 1 capital On-balance sheet items and derivatives Off-balance sheet items Total exposures Leverage ratio* Dec. 31, 2024 Dec. 31, 2023 134,511,485 1,226,683,110 172,364,998 1,399,048,108 9.6% 83,753,498 856,118,571 106,722,210 962,840,781 8.7% *Based on consolidated financial statement figures and in accordance with Centeral Bank of Egypt regulation issued on 14 July 2015. For December 2024 NSFR ratio record 238% (LCY 239% and FCY 236%), and LCR ratio record 1037% (LCY 1709% and FCY 403%). For December 2023 NSFR ratio record 253% (LCY 264% and FCY 229%), and LCR ratio record 1342% (LCY 2250% and FCY 175%). 3.6. 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. 3.7. 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- ationtechniques (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, 2024 Net revenue according to business segment * Expenses according to business segment Profit before tax Corporate banking SME’s Investments Retail banking Asset Liability Management Total 60,907,399 9,515,044 18,709,616 20,419,590 9,336,810 118,888,459 (31,894,156) (2,611,270) (121,966) (6,837,791) (22,335) (41,487,518) 29,013,243 6,903,774 18,587,650 13,581,799 9,314,475 77,400,941 Income tax (8,236,440) (1,959,882) (5,276,765) (3,855,676) (2,644,245) (21,973,008) Profit for the year 20,776,803 4,943,892 13,310,885 9,726,123 6,670,230 55,427,933 Total assets Total liabilities 336,980,205 11,740,156 401,637,430 74,343,035 384,617,722 1,209,318,548 399,462,254 91,318,692 - 536,867,966 29,983,458 1,057,632,370 * Represents the net interest income and other income. 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 Retail banking Asset Liability Management 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 5,039,554 5,469,541 11,185,206 7,781,163 40,524,984 (3,205,635) (1,462,052) (1,586,798) (3,244,999) (2,257,434) (11,756,918) 7,843,885 3,577,502 3,882,743 7,940,207 5,523,729 28,768,066 201,580,703 8,211,322 270,999,772 56,742,099 294,993,246 832,527,142 285,414,218 60,305,027 - 369,124,148 27,383,743 742,227,136 310 • CIB Annual Report • 2024 2024 • CIB Annual Report • 311 Financial Statements / Separate 5. Segment analysis by geographical segment 7. Net fee and commission income Dec.31, 2024 Revenue according to geographical segment Expenses according to geographical segment Profit before tax Income tax Profit for the year Total assets Total liabilities Greater Cairo 103,634,536 (36,957,475) 66,677,061 (18,928,654) 47,748,407 1,128,927,977 Alex, Delta & Sinai 11,407,670 (2,957,601) 8,450,069 (2,398,852) 6,051,217 64,483,232 796,030,520 211,231,928 Upper Egypt 3,846,253 (1,572,442) 2,273,811 (645,502) 1,628,309 15,907,339 50,369,922 Total 118,888,459 (41,487,518) 77,400,941 (21,973,008) 55,427,933 1,209,318,548 1,057,632,370 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 Greater Cairo 51,100,964 Alex, Delta & Sinai 8,531,843 Upper Egypt 1,435,796 Total 61,068,603 (18,402,481) (2,115,141) (25,997) (20,543,619) 32,698,483 (9,486,331) 23,212,152 777,717,138 559,104,069 6,416,702 (1,861,583) 4,555,119 45,036,445 151,824,454 1,409,799 (409,004) 1,000,795 9,773,559 31,298,613 40,524,984 (11,756,918) 28,768,066 832,527,142 742,227,136 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 Dec. 31, 2024 Dec. 31, 2023 47,654,216 63,136,349 110,790,565 63,752,692 7,508,661 182,051,918 (10,190,185) (78,711,160) (88,901,345) (19,188) (2,137,347) (177,615) (91,235,495) 90,816,423 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 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 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 Dec. 31, 2024 Dec. 31, 2023 4,687,413 755,738 7,350,634 12,793,785 (5,728,572) (5,728,572) 7,065,213 3,284,557 551,324 5,210,123 9,046,004 (3,612,232) (3,612,232) 5,433,772 Dec. 31, 2024 Dec. 31, 2023 71,568 29,924 101,492 170,638 16,591 187,229 Dec. 31, 2024 Dec. 31, 2023 20,753,518 (539,674) 21,150 (54,006) 265,006 20,445,994 4,080,479 (64,227) 291,504 (401,470) 17,562 3,923,848 Dec. 31, 2024 Dec. 31, 2023 (6,938,813) (288,575) (424,353) (5,682,178) (13,333,919) (5,186,718) (354,136) (282,763) (3,942,119) (9,765,736) *The expenses related to the activity for which the bank obtains a commodity or service, donations and depreciation. 312 • CIB Annual Report • 2024 2024 • CIB Annual Report • 313 Financial Statements / Separate 11. Other operating income (expenses) 15. Cash and balances at the central bank 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 Dec. 31, 2024 Dec. 31, 2023 (15,457,960) 2,246 (3,398,987) (4,830,662) (23,685,363) (756,492) 1,663 (2,833,219) (2,902,556) (6,490,604) Cash Obligatory reserve balance with CBE - Current accounts Total Non-interest bearing balances 12. Impairment release (charges) for credit losses 16. Due from banks 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 *Proposed amounts are subject to change according to GAM decision. Dec. 31, 2024 Dec. 31, 2023 (4,719,426) 93 251,097 (4,468,236) (2,334,846) 49,042 (2,001,475) (4,287,279) Dec. 31, 2024 Dec. 31, 2023 77,400,941 22.50% 17,415,212 8,258,523 (13,093,490) 9,392,763 21,973,008 28.39% 40,524,984 22.50% 9,118,121 4,859,295 (7,458,312) 5,237,814 11,756,918 29.01% Dec. 31, 2024 Dec. 31, 2023 55,428,315 (178,000) (5,542,832) 49,707,483 3,032,982 16.39 3,070,752 16.19 28,763,709 (110,239) (2,876,371) 25,777,099 3,032,982 8.50 3,070,752 8.39 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 Dec. 31, 2024 Dec. 31, 2023 21,637,856 7,463,707 114,528,064 136,165,920 136,165,920 64,283,636 71,747,343 71,747,343 Dec. 31, 2024 Dec. 31, 2023 8,403,491 261,686,167 (217) 270,089,441 99,637,072 101,775,461 68,676,908 270,089,441 2,123,705 44,712,342 223,253,394 270,089,441 270,089,441 - 270,089,441 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 Dec. 31, 2024 Dec. 31, 2023 1,096,750 14,747,975 9,502,200 72,707,618 (8,916,960) 89,137,583 (563,568) 88,574,015 - 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 Total Treasury bills and other governmental notes 88,574,015 113,403,703 314 • CIB Annual Report • 2024 2024 • CIB Annual Report • 315 Financial Statements / Separate 18. Loans and advances to banks, net Analysis of the expected credit losses on loans and advances to customers by product during the year is as follows: Loans Unamortized bills discount ECL Net Current balances Non-current balances Net Analysis for ECL of loans and advances to banks Beginning balance of the year Released (charged) during the year Exchange revaluation difference Ending balance of the year 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 Dec. 31, 2024 Dec. 31, 2023 9,863,221 (174,320) (133,491) 9,555,410 8,117,337 1,438,073 9,555,410 823,739 - (1,291) 822,448 822,448 - 822,448 Dec. 31, 2024 Dec. 31, 2023 (1,291) (131,405) (795) (133,491) (10,213) 8,922 - (1,291) Dec. 31, 2024 Dec. 31, 2023 3,691,074 15,027,813 54,878,117 5,773,316 79,370,320 86,877,125 142,330,243 79,963,890 1,033,383 310,204,641 389,574,961 (238,286) (84,093) (45,260,455) (3,036,429) 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) Net loans and advances to customers 340,955,698 233,824,745 Distributed to Current balances Non-current balances Total 195,793,447 145,162,251 340,955,698 126,122,466 107,702,279 233,824,745 Individual Loans: Beginning balance Released (charged) during the year Written off during the year Recoveries during the year Ending balance Corporate and Business Banking: Beginning balance Released (charged) during the year Written off during the year Recoveries during the year ECL Transfer to Other provisions Foreign currencies translation differences Ending balance Individual Loans: Beginning balance Released (charged) during the year Write off during the year Recoveries during the year Ending balance Overdraft (4,355) Credit cards (723,525) Dec.31, 2024 Personal loans (1,418,318) Mortgage loans (84,261) Total (2,230,459) (6,513) (1,292,174) (385,224) (2,476) (1,686,387) 3,038 (1,595) (9,425) 69,410 190,105 (69,878) (85,661) 1,638 (548) 264,191 (157,682) (2,016,167) (1,699,098) (85,647) (3,810,337) Dec.31, 2024 Overdraft (2,797,194) (2,193,601) Credit cards (18,287,318) Personal loans (5,792,813) Mortgage loans (19,420) Total (26,896,745) 3,394,495 (4,085,932) (16,596) (2,901,634) 11,501 236,120 (1,000) (709,589) - - - - 1,276,440 (848,120) (8,133,971) (3,484,329) 1,209 248,830 - - - (710,589) 1,276,440 (12,466,420) (5,828,414) (23,500,263) (12,086,634) (34,807) (41,450,118) Overdraft (3,506) Credit cards (321,990) Dec.31, 2023 Personal loans (1,194,486) Mortgage loans (62,359) Total (1,582,341) (1,800) (402,460) (334,619) (25,054) (763,933) 1,960 (1,009) (4,355) 59,027 177,095 (58,102) (66,308) 3,332 (180) 241,414 (125,599) (723,525) (1,418,318) (84,261) (2,230,459) 316 • CIB Annual Report • 2024 2024 • CIB Annual Report • 317 Financial Statements / Separate Dec.31, 2023 20.1.1. For trading derivatives Corporate and Business Banking: Beginning balance Released (charged) during the year Write off during the year Recoveries during the year foreign currencies translation differences Ending balance Overdraft (2,502,614) Credit cards (15,167,970) Personal loans (5,140,282) Mortgage loans (8,807) Total (22,819,673) 209,213 (2,298,467) 520,032 (10,613) (1,579,835) 2,529 2,234,286 - (51,666) - - (506,322) (3,003,501) (1,172,563) - - - 2,236,815 (51,666) (4,682,386) (2,797,194) (18,287,318) (5,792,813) (19,420) (26,896,745) 20. Derivative financial instruments 20.1. Derivatives The Bank uses the following financial derivatives for hedging purposes and 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 (OTC). 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: Foreign currencies derivatives - Forward foreign exchange contracts - Swap deals Total (1) 20.1.2. Fair value hedge -Interest rate derivatives Total (2) 20.1.3. Cash flow hedge Cash flow hedge Total (3) Total financial derivatives (1+2+3) Notional amount 2,504,361 31,366,261 Dec.31, 2024 Dec.31, 2023 Assets Liabilities Notional amount Assets Liabilities 25,118 266 25,384 24,029 4,491,601 16,637 40,666 74,723,052 578,528 45,785 624,313 37,765 8,151 45,916 Dec.31, 2024 Dec.31, 2023 Notional amount 28,215,534 Assets 111,707 111,707 Liabilities 59,905 59,905 Notional amount 15,446,550 Assets 40,482 40,482 Liabilities 95,018 95,018 Dec.31, 2024 Dec.31, 2023 Notional amount 21,567,522 Assets 682,620 682,620 Liabilities - - Notional amount 3,089,310 Assets 437,101 437,101 Liabilities - - 819,711 100,571 1,101,896 140,934 Hedging derivatives 20.2. 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 51,802 thousand at the end of December 31, 2024 against EGP (54,536) thousand at December 31, 2023, resulting in profits from hedging instruments at December 31, 2024 of EGP 106,338 thousand against losses of EGP 85,016 thousand at December 31, 2023. Losses arose from the hedged items at December 31, 2024 reached EGP 89,590 thousand against Profits EGP 84,228 thousand at December 31, 2023. Cash Flow Hedge The bank uses the interest rate swap contracts to cover the interest rate risk associated with variable cash flows from assets or liabilities.The interest rate swap contracts with a contractual/notional value of EGP 21,567,522 thousand and a fair value of EGP 682,620 thousand as at 31-December-2024 against a contractual/notional value of EGP 3,089,310 thousand and a fair value of EGP 437,101 thousand as at 31-December-2023 were designated as cash flow hedge for loans and subordinated loans with floating interest rates. 318 • CIB Annual Report • 2024 2024 • CIB Annual Report • 319 Financial Statements / Separate 21. Movement of financial investment securities: 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 Beginning balance as of 2024 Addition Disposals Profit (losses) from fair value difference Exchange revaluation differences for foreign financial assets Ending Balance as of December 31, 2024 21. Financial investments securities Investments listed in the market Governmental bonds Securitized and other bonds Equity instruments Sukuk Investments not listed in the market Treasury bills Securitized and other bonds Equity instruments Mutual funds Total 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 Fair Value through OCI 232,290,598 112,821,260 (140,257,110) 9,801,355 18,373,800 233,029,903 Financial Assets at Fair Value through OCI Dec.31, 2024 Financial Assets at Amortized cost 114,322,973 25,955,015 159,066 1,693,833 88,574,015 1,163,813 689,496 471,692 164,151,606 2,015,953 - - - 1,109,397 - - Financial Assets at Amortized cost 34,178,753 9,142,334 (6,125,452) - 651,479 37,847,114 Financial Assets at Amortized cost 37,847,114 128,648,360 (1,870,762) - 2,652,244 167,276,956 Total 278,474,579 27,970,968 159,066 1,693,833 88,574,015 2,273,210 689,496 471,692 233,029,903 167,276,956 400,306,859 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 Dec.31, 2023 Financial Assets at Amortized cost 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 - - 71,844 - - 37,847,114 Total 124,253,047 26,899,309 121,184 874,218 113,403,703 3,371,641 805,674 408,936 270,137,712 Classification and measurement of financial assets and financial liabilities: The following table shows the net financial assets and financial liabilities according to the business model classification: Equity financial Assets at Fair value through OCI Financial Assets/ Liabilities at Fair value through P&L Amortized cost 136,165,920 270,089,441 - 340,955,698 9,555,410 - - 167,276,956 924,043,425 2,317,715 967,895,387 - 5,067,781 23,962,389 18,613,060 1,017,856,332 Debt financial Assets at Fair value through OCI - - 88,574,015 - - - - - - - - - 143,135,634 1,320,254 - 231,709,649 - - - 1,320,254 - - - - - - - - - - - - Total book value 136,165,920 270,089,441 88,574,015 340,955,698 9,555,410 - - - - - 819,711 819,711 - - 819,711 - - 100,571 144,455,888 167,276,956 1,157,893,039 2,317,715 967,895,387 100,571 - 5,067,781 - - 100,571 23,962,389 18,613,060 1,017,956,903 574,951,069 230,954,804 1,335,794 1,101,896 808,343,563 714,383,088 - - 140,934 714,524,022 Dec.31, 2024 Cash and balances with central bank Due from banks Treasury bills Loans and advances to customers, net Loans and advances to banks, net Derivative financial instruments Financial Assets at Fair value through OCI Financial Assets at Amortized cost Total 1 Due to banks Due to customers Derivative financial instruments Issued debt instruments Other loans Other Provisions Total 2 Total Financial Assets as of 31- Dec-2023 Total Financial Liabilities as of 31- Dec-2023 320 • CIB Annual Report • 2024 2024 • CIB Annual Report • 321 Financial Statements / Separate 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 Total Dec.31, 2024 Dec.31, 2023 35,151,259 1,434,589 5,367,781 2,077,822 40,809 102,972 44,175,232 13,018,038 892,438 1,906,547 3,011,250 49,019 51,775 18,929,067 *A provision of EGP 12 million has been released and A provision of EGP 50 million has been charged. 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. 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 22. Investments in subsidiaries and associates Dec.31, 2024 Dec.31, 2023 459,337 - - 459,337 205,344 7,466 (1,435,819) (1,223,009) Company’s country Company’s assets Company’s liabilities (without equity) Company’s revenues Company’s net profit (loss) Investment book value Stake % Egypt Kenya 140,924 4,779 126,322 120,545 97,991 49.95 6,721,152 5,300,024 784,212 (254,412) 355,274 100.00 Egypt 1,129,119 890,684 94,866 12,426 259,900 99.96 Mauritius - - - - - 100.00 Egypt Egypt 1,531,763 87,825 9,610,783 1,458,913 47,861 7,702,261 68,725 124,562 1,198,687 (72,560) 10,502 (183,499) 158,360 - 871,525 37.00 39.33 Dec.31, 2024 Subsidiaries - Damietta shipping & marine services - Commercial International Bank (CIB) Kenya - Commercial International for Finance - Commercial International Africa Holding Company* Associates - TCA Properties - Al Ahly Computer Total *The bank established a subsidiary under the name (Commercial International Africa Holding Company) in the state of Mauritius, which owns 100% stake, and the company’s activity did not begin until the date of preparing the financial statements. Company's country Company's assets Company's liabilities (without equity) Company's revenues Company's net profit (loss) Investment book value Stake % Egypt 79,011 2,397 64,358 61,014 97,991 49.95 Kenya 3,463,032 2,627,118 456,182 7,792 355,274 100.00 Egypt 46,196 20,239 13,517 (34,043) 59,900 99.83 Egypt Egypt 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 39.33 Dec.31, 2023 Subsidiaries - Damietta shipping & marine services - Commercial International Bank (CIB) Kenya - Commercial International for Finance Associates - TCA Properties - Al Ahly Computer Total 322 • CIB Annual Report • 2024 2024 • CIB Annual Report • 323 Financial Statements / Separate d n a d n a e r u t i n r u F i s e n h c a M 4 2 0 2 , . 1 3 c e D l a t o T i g n h s n r u f i t n e m p u q e i t u o - g n i t t i F l s e c h e V i T I i s e s m e r P d n a L , 3 2 2 8 7 3 8 , , 7 9 0 2 2 2 2 , , ) 6 8 6 6 0 1 ( , 4 3 6 3 9 4 0 1 , , 7 8 2 0 4 6 5 , , 3 1 4 8 7 0 1 , ) 6 8 6 6 0 1 ( , , 4 1 0 2 1 6 6 , , 0 2 6 1 8 8 3 , , 6 3 9 7 3 7 2 , 9 7 2 2 6 1 , 4 1 3 7 3 , ) 7 2 5 2 ( , 6 6 0 7 9 1 , 6 6 5 9 2 1 , 0 6 2 7 1 , ) 7 2 5 2 ( , 9 9 2 4 4 1 , 7 6 7 2 5 , 3 1 7 2 3 , 6 9 3 8 3 9 , 1 4 1 0 6 3 , ) 6 8 4 0 2 ( , , 1 5 0 8 7 2 1 , , 9 4 2 8 1 0 1 , 3 8 1 7 8 2 , ) 1 1 0 1 3 ( , , 1 2 4 4 7 2 1 , - 8 4 7 4 2 2 , 4 2 8 9 1 , 2 7 5 4 4 2 , 3 1 1 9 2 7 , 4 9 7 5 1 9 , 5 9 6 1 9 , 0 9 9 9 2 1 , ) 6 8 4 0 2 ( , 7 1 6 8 3 8 , 4 3 4 9 3 4 , 3 8 2 9 0 2 , 1 6 7 7 9 , ) 1 1 0 1 3 ( , 4 4 5 2 8 9 , 7 7 8 1 9 2 , 5 5 4 2 0 1 , - 8 5 7 3 5 4 2 9 , , 9 1 1 2 5 1 , 3 5 0 3 3 1 , 6 3 9 3 7 5 4 , , 8 2 4 4 2 4 1 , ) 2 3 4 0 3 ( , , 2 3 9 7 6 9 5 , , 1 7 7 2 8 1 3 , 8 1 4 4 7 7 , ) 2 3 4 0 3 ( , , 7 5 7 6 2 9 3 , , 5 7 1 1 4 0 2 , , 5 6 1 1 9 3 1 , , 6 4 9 0 3 2 1 , 9 6 6 9 2 2 , 7 0 2 3 9 , ) 0 3 2 2 2 ( , - - , 3 2 9 1 0 3 1 , 8 4 3 1 9 5 , 6 2 2 8 5 , ) 0 3 2 2 2 ( , 4 4 3 7 2 6 , 9 7 5 4 7 6 , 8 9 5 9 3 6 , 9 6 6 9 2 2 , - - - - 9 6 6 9 2 2 , 9 6 6 9 2 2 , d n a d n a e r u t i n r u F i s e n h c a M 3 2 0 2 , 1 3 . c e D l a t o T i g n h s n r u f i t n e m p u q e i t u o - g n i t t i F l s e c h e V i T I i s e s m e r P d n a L f o g n i n n i g e b t a n o i t a i c e r p e d d e t a l u m u c c A r a e y e h t r o f n o i t a i c e r p e D r a e y e h t g n i r u d s l a s o p s i D ) 3 ( r a e y e h t ) 4 ( r a e y e h t f o d n e t a n o i t a i c e r p e d d e t a l u m u c c A ) 3 - 1 ( s t e s s a t e n g n i n n i g e B ) 4 - 2 ( s t e s s a t e n g n i d n E r a e y e h t g n i r u d s n o i t i d d A r a e y e h t g n i r u d s l a s o p s i D ) 1 ( 4 2 0 2 , 1 0 n a J t a t s o C ) 2 ( r a e y e h t f o d n e t a t s o C i t n e m p u q e d n a y t r e p o r P . 4 2 , 6 6 8 4 0 1 7 , , 2 9 9 7 1 3 1 , ) 5 3 6 4 4 ( , , 3 2 2 8 7 3 8 , , 3 5 3 0 0 8 4 , 9 6 5 4 8 8 , ) 5 3 6 4 4 ( , , 7 8 2 0 4 6 5 , , 6 3 9 7 3 7 2 , , 3 1 5 4 0 3 2 , 6 8 5 5 5 1 , 3 4 1 9 , ) 0 5 4 2 ( , 9 7 2 2 6 1 , 9 4 3 5 1 1 , 7 6 6 6 1 , ) 0 5 4 2 ( , 6 6 5 9 2 1 , 3 1 7 2 3 , 7 3 2 0 4 , 5 8 4 8 6 8 , 8 6 4 8 8 , ) 7 5 5 8 1 ( , 6 9 3 8 3 9 , 5 7 2 7 3 6 , 5 9 3 0 1 1 , ) 7 5 5 8 1 ( , 3 1 1 9 2 7 , 3 8 2 9 0 2 , 0 1 2 1 3 2 , - 2 9 6 0 8 9 , 7 5 5 7 3 , , 9 4 2 8 1 0 1 , - 7 8 2 5 1 8 , 7 0 5 0 0 1 , 4 9 7 5 1 9 , 5 5 4 2 0 1 , 5 0 4 5 6 1 , - 2 5 5 5 8 1 , 6 9 1 9 3 , 8 4 7 4 2 2 , - 0 1 2 8 7 , 5 8 4 3 1 , 5 9 6 1 9 , 3 5 0 3 3 1 , 2 4 3 7 0 1 , , 9 4 6 4 1 5 3 , , 5 6 2 8 7 0 1 , ) 8 7 9 8 1 ( , , 6 3 9 3 7 5 4 , , 4 3 8 2 1 6 2 , 5 1 9 8 8 5 , ) 8 7 9 8 1 ( , , 1 7 7 2 8 1 3 , , 5 6 1 1 9 3 1 , 5 1 8 1 0 9 , , 3 3 2 0 7 1 1 , 3 6 3 5 6 , ) 0 5 6 4 ( , , 6 4 9 0 3 2 1 , 8 9 3 1 4 5 , 0 0 6 4 5 , ) 0 5 6 4 ( , 8 4 3 1 9 5 , 8 9 5 9 3 6 , 5 3 8 8 2 6 , - - 9 6 6 9 2 2 , , 9 6 6 9 2 2 - - - - 9 6 6 9 2 2 , , 9 6 6 9 2 2 f o g n i n n i g e b t a n o i t a i c e r p e d d e t a l u m u c c A r a e y e h t r o f n o i t a i c e r p e D r a e y e h t g n i r u d s l a s o p s i D ) 3 ( r a e y e h t ) 4 ( r a e y e h t f o d n e t a n o i t a i c e r p e d d e t a l u m u c c A ) 3 - 1 ( s t e s s a t e n g n i n n i g e B ) 4 - 2 ( s t e s s a t e n g n i d n E r a e y e h t g n i r u d s n o i t i d d A r a e y e h t g n i r u d s l a s o p s i D ) 1 ( 3 2 0 2 , 1 0 n a J t a t s o C ) 2 ( r a e y e h t f o d n e t a t s o C 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 Dec.31, 2024 Dec.31, 2023 1,297,380 1,020,335 2,317,715 714,368 43,832 1,559,515 2,317,715 1,297,380 679,715 340,620 2,317,715 2,317,715 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 Dec.31, 2024 Dec.31, 2023 368,583,912 191,512,601 234,726,375 164,067,251 9,005,248 967,895,387 430,570,338 537,325,049 967,895,387 162,273,902 9,194,485 796,427,000 967,895,387 728,355,541 239,539,846 967,895,387 255,561,871 116,020,391 188,832,842 107,332,593 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 2024, Due to customers contains an amount of EGP 2,465 million representing guarantees of irrevocable commitments for documentary credits - export compared to EGP 1,931 million in 2023. The fair value of these deposits is approximately their present value. 324 • CIB Annual Report • 2024 2024 • CIB Annual Report • 325 Financial Statements / Separate 27. Issued debt instruments Fixed rate bonds with 5 years maturity Interest rate Dec.31, 2024 Dec.31, 2023 Fixed rate 5,067,781 5,067,781 5,067,781 3,073,349 3,073,349 3,073,349 29. Other liabilities Accrued interest payable Accrued expenses Accounts payable Other credit balances Total 30. Other provisions Dec.31, 2024 Dec.31, 2023 3,831,275 4,427,099 12,813,436 275,689 21,347,499 3,807,422 2,542,423 11,435,939 521,796 18,307,580 Green bonds (USD) Total Non current balances 28. Other loans British International Investment subordinated loan European Bank for Reconstruction and Development (EBRD) International Finance Corporation (IFC) 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 the next year Dec.31, 2024 Dec.31, 2023 Floating rate 10 years Floating rate 5 years Floating rate 5 years - - - 4,791,371 2,879,244 503,546 2,501,995 - - Fixed rate 5 years 210 210 525 Fixed rate 1-3 years 150,201 197,827 200,619 Floating / Fixed rate 1-6 years 238,365 847,345 224,793 Floating rate 10 years Floating rate 10 years - - 7,559,094 4,588,784 388,776 23,962,389 12,483,907 Beginning balance 7,246 10,663,851 417,275 11,088,372 Beginning balance Dec.31, 2024 Provision for legal claims* Provision for contingent Provision for other claim** Total Dec.31, 2023 Provision for legal claims* Provision for contingent Provision for other claim ** Total Net charged / released during the year Exchange revaluation difference Net utilized / recovered during the year 3,596 (232) Ending balance 119,348 108,738 875,012 2,377,298 3,361,048 4,058,498 111,132 4,173,226 - 15,597,361 (9,354) (9,586) 2,896,351 18,613,060 Net charged / released during the year Exchange revaluation difference Net utilized / recovered during the year 7,456 1,400 448 6,674,314 2,811,978 1,180,071 383,522 7,065,292 2,221 32,812 2,815,599 1,213,331 (2,058) (2,512) (1,280) (5,850) Ending balance 7,246 10,663,851 417,275 11,088,372 7,561,001 4,589,942 *There is a number of existing filed cases against the bank on December 31, 2024 for which no provisions are made as the bank doesn’t expect to incur losses. **To face the potential risk of banking operations. Interest rates on variable-interest subordinated loans are determined in advance every 3 months. 326 • CIB Annual Report • 2024 2024 • CIB Annual Report • 327 Financial Statements / Separate 31. Equity 31.1. Capital • The authorized capital is EGP 100 billion according to the extraordinary general assembly decision on 20 March 2023. • On June 6, 2024 issued and Paid in Capital increased by an amount of EGP 236,570 thousand to reach EGP 30,431,580 thou- sand, according to BOD Meeting decision on February 11, 2024, by issuance of 15th 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 thou- sand, according to BOD Meeting decision on January 24 ,2023, by issuance of 14th tranche for E.S.O.P program. • On January 11, 2023 issued and Paid in Capital increased by an amount of EGP 165,429 thousand to reach EGP 29,990,563 thousand, according to BOD Meeting decision on September 28 ,2022, by issuance of 13th tranche for E.S.O.P program. 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: Authorized Capital Issued and paid up capital Number of outstanding shares in thousnds Par value per share Dec.31, 2024 Dec.31, 2023 100,000,000 30,431,580 3,043,158 100,000,000 30,195,010 3,019,501 Dec.31, 2024 EGP Dec.31, 2023 EGP 10 10 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: 31.2. Reserves According to The Bank status 5% of net profit is used to increase the legal reserve to reaches 50% of The Bank›s issued and paid in capital. Central Bank of Egypt approval for usage of special reserve is required. 32. Deferred tax assets (Liabilities) Deferred tax assets and liabilities are attributable to the following: Maturity date 2025 2026 2027 Total Dec.31, 2024 No. of shares in thousand Dec.31, 2023 No. of shares in thousand 80,013 22,869 (3,351) (23,657) 75,874 92,551 28,143 (3,693) (36,988) 80,013 EGP Exercise price 10.00 10.00 10.00 EGP Fair value 28.43 34.09 66.15 No. of shares in thousand 27,840 26,000 22,034 75,874 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 Employee stock ownership plan (ESOP) Interest rate swaps revaluation Forward foreign exchange deals revaluation Ending Balance Movement of Deferred Tax Assets and Liabilities: Beginning Balance Additions / disposals through OCI Additions / disposals through P&L Ending Balance Assets (Liabilities) Dec.31, 2024 Assets (Liabilities) Dec.31, 2023 (173,063) 1,637,212 743,979 (815,974) 395,979 420,352 (4,759) 133,578 2,337,304 (83,567) 782,899 1,399,815 (1,183,449) 395,979 334,352 (65,588) 104,782 1,685,223 Assets (Liabilities) Dec.31, 2024 Assets (Liabilities) Dec.31, 2023 1,685,223 (655,836) 1,307,917 2,337,304 24,240 341,943 1,319,040 1,685,223 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% 18th tranche 17th tranche 10 72.65 3 23.99% 0.80% 36.79% 10 41.48 3 18.00% 1.30% 34.75% Volatility is calculated based on the standard deviation of returns for the last five years. 328 • CIB Annual Report • 2024 2024 • CIB Annual Report • 329 Financial Statements / Separate 34. Reserves and 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 Dec.31, 2024 Dec.31, 2023 6,208,674 62,422,792 22,818 56,260,451 (7,095,741) 1,868,235 17,924 1,549,445 121,254,598 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 34.4. Retained earnings 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) Dec.31, 2024 Dec.31, 2023 Ending balance 15,230 2,694 17,924 11,981 3,249 15,230 Dec.31, 2024 Dec.31, 2023 4,770,354 1,438,320 6,208,674 3,963,946 806,408 4,770,354 Dec.31, 2024 Dec.31, 2023 (16,808,265) (370,224) 9,145,519 937,229 (7,095,741) (13,138,461) (95,308) (5,458,849) 1,884,353 (16,808,265) 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 36. Contingent liabilities and commitments 36.1. Legal claims Dec.31, 2024 Dec.31, 2023 29,230,360 (23,398,943) (5,366,429) 55,427,933 (2,694) 370,224 56,260,451 16,497,346 (12,388,223) (3,738,888) 28,768,066 (3,249) 95,308 29,230,360 Dec.31, 2024 Dec.31, 2023 1,486,010 (623,125) 1,005,350 1,868,235 1,895,435 (1,164,242) 754,817 1,486,010 Dec.31, 2024 Dec.31, 2023 1,549,445 1,549,445 1,549,445 1,549,445 Dec.31, 2024 Dec.31, 2023 136,165,920 270,089,658 88,574,015 (114,528,064) (65,753,867) (87,518,918) 227,028,744 71,747,343 230,709,611 113,403,703 (64,283,636) (4,942,896) (112,721,932) 233,912,193 • There is a number of existing cases against the bank on December 31, 2024 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) 330 • CIB Annual Report • 2024 2024 • CIB Annual Report • 331 Financial Statements / Separate 36.2 . Capital commitments 36.2.1. Financial investments The capital commitments for the financial investments reached on the date of financial position EGP 3,177 thousand as follows: 37. Mutual funds Osoul fund Financial Assets at Fair value through OCI Investments value 508,388 Paid 505,211 Remaining 3,177 • The bank established CIB investment monetary fund with an accumulated return -Osoul in accordance with the provisions of the Capital Market Law 95 of 1992 under license no.331 regulatory authority on issued from financial February 22, 2005. CI Assets Management Co.- Egyptian joint stock co - manages the fund. • The number of certificates issued reached 6,299,776 with redeemed value of EGP 5,044,168 thousands. • The market value per certificate reached EGP 800.69 on December 31, 2024. • The Bank’s portion is 237,112 certificates with a redeemed value of EGP 189,853 thousands. 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 439,730 thousand against EGP 396,683 thousand in 2023. Istethmar fund 36.3. Letters of credit, guarantees and other commitments Letters of guarantee Letters of credit (import and export) Customers acceptances and other contingent liabilities Total 36.4. Credit facilities commitments Credit facilities commitments Dec.31, 2024 Dec.31, 2023 257,270,373 19,009,107 11,805,536 288,085,016 160,735,346 9,068,007 4,631,478 174,434,831 Dec.31, 2024 Dec.31, 2023 6,619,771 5,352,553 • The bank established CIB investment fund the second with accumulated return in accordance with the provisions of the Capital Market Law 95 of 1992 under license no.344 issued from financial regulatory authority on February 26, 2006. CI Assets Management Co.- Egyptian joint stock co - manages the fund. • The number of certificates issued reached 364,124 with redeemed value of EGP 203,549 thousands • The market value per certificate reached EGP 559.01 on December 31, 2024 • The Bank’s portion is 50,000 certificates with a redeemed value of EGP 27,951 thousands. Aman fund (CIB and Faisal Islamic Bank Mutual Fund) • CIB and Faisal Islamic Bank established an accumulated return mutual in accordance with the provisions of the Capital Market Law 95 of 1992 fund under license no.365 issued from financial regulatory authority on July 30, 2006. CI Assets Management Co.- Egyptian joint stock co - manages the fund. • The number of certificates issued reached 307,753 with redeemed value of EGP 84,167 thousands. • The market value per certificate reached EGP 273.49 on December 31, 2024. • The Bank’s portion is 32,596 certificates with a redeemed value of EGP 8,915 thousands. 36.5. Lease commitments The total minimum lease payments for non-cancellable operating leases are as follows: Hemaya fund Not more than one year More than one year and less than five years More than five years Dec.31, 2024 Dec.31, 2023 344,947 613,077 230,842 223,456 659,897 287,120 • The bank established CIB investment fund the forth -Hemaya with accumulated return in accordance with the provisions of the Capital Market Law 95 of 1992 under license no.585 issued from financial regulatory authority on June 23, 2010. CI Assets Management Co.- Egyptian joint stock co - manages the fund. • The number of certificates issued reached 81,416 with redeemed value of EGP 42,965 thousands. • The market value per certificate reached EGP 527.72 on December 31, 2024. • The Bank’s portion is 50,000 certificates with a redeemed value of EGP 26,386 thousands. Thabat fund • The bank established CIB quarterly return fund for investing in debt insturments -Thabat in accordance with the provisions of the Capital Market Law 95 of 1992 under license no.613 issued from financial regulatory authority on December 28, 2010. CI Assets Management Co.- Egyptian joint stock co - manages the fund. • The number of certificates issued reached 184,167 with redeemed value of EGP 91,780 thousands. • The market value per certificate reached EGP 498.35 on December 31, 2024. • The Bank’s portion is 50,000 certificates with a redeemed value of EGP 24,918 thousands. Takamol fund • The bank established CIB accumulated fund -Takamol in accordance with the provisions of the Capital Market Law 95 of 1992 under license no.706 issued from financial regulatory authority on May 26, 2015. CI Assets Management Co.- Egyptian joint stock co - manages the fund. • The number of certificates issued reached 118,017 with redeemed value of EGP 58,755 thousands. • The market value per certificate reached EGP 497.85 on December 31, 2024. • The Bank’s portion is 50,000 certificates with a redeemed value of EGP 24,893 thousands. 332 • CIB Annual Report • 2024 2024 • CIB Annual Report • 333 Financial Statements / Separate 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. Stamp duty tax 38.1. Loans, advances, deposits and contingent liabilities Loans, advances and other assets Deposits and other liabilities Contingent liabilities 38.2. Other transactions with related parties Dec.31, 2024 Dec.31, 2023 1,613,758 1,040,021 61,007 941,131 728,866 - C-venture 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 Dec.31, 2024 Dec.31, 2023 Income Expenses Income Expenses 11 4,560 14 33,933 31 137,458 3,840 7,820 1,861 12,230 4 - 716 1,024 14 90 22 151,493 1,284 4,335 625 4,546 103 - Dec.31, 2024 Equivalent EGP Dec.31, 2023 Equivalent EGP (14,226,881) 13,411,452 21,656 (2,178) 672 725,040 204,337 677,736 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 2021 • 2022-2023 under finalizing inspection & settlement • The yearly income tax return submitted in legal dates Salary tax • Settlement of salary tax since the start of activity till 2022 • The period since the start of activity till 31/07/2006 was examined & paid • Settlement 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 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 Sale of investments in associates Impairment (Release) charge for other assets Total 2 Change (1-2) Dec.31, 2024 Dec.31, 2023 18,929,067 (49,019) (1,906,547) 16,973,501 44,175,232 (40,809) (5,367,781) 11,956 37,940 38,816,538 (21,843,037) 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) 42. Significant events during the year • On the 1st of 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. • On the 6th of March 2024, the Monetary Policy Committee (MPC) decided to raise the Central Bank of Egypt’s (CBE) over- night deposit rate, overnight lending rate, and the rate of the main operation by 600 basis points to 27.25 percent, 28.25 percent, and 27.75 percent, respectively. The discount rate was also raised by 600 basis points to 27.75 percent , which may affect the bank’s policies in pricing current and future banking products. • Based on the change in the US dollar exchange rate during the month of March from 31 pounds per dollar to 47 pounds per dollar, the values of assets and liabilities of monetary nature in foreign currencies, as well as the income statement, were affected by the results of evaluating the existing currency positions at the date of the financial position. For more details, refer to notes (9 & 11) • In the last quarter of 2024, Egyptian Accounting Standard 51 “Financial Statements in the Economics of Hyperinflation“ was issued by Prime Minister No. 3527 of 2024 with the aim of helping to revalue the assets and liabilities of the financial statements in a way that reflects the actual purchasing power assessed by the impact of inflation. CIB’s management is following up the impact of the application of this standard to study the extent of its impact on the financial statements, and no instructions have been issued to apply this standard until the date of issuance of the bank’s financial statements. 43. Non current assets held for sale C-venture Dec.31, 2024 Dec.31, 2023 159,828 159,828 334 • CIB Annual Report • 2024 2024 • CIB Annual Report • 335 Financial Statements / Separate