Commercial International Bank (CIB), Egypt’s largest private bank, increased its loan loss provisions by 60% in the third quarter after a central bank review raised compliance concerns that led to the dismissal of its chairman.
CIB had already taken large provisions this year because of the coronavirus pandemic, which wiped out much of its tourism industry, battering Egyptian companies throughout the economy.
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The bank increased provisions to 1.60 billion Egyptian pounds ($102.2 million) from 1.02 billion pounds in the second quarter. Provisions in the third quarter of 2019 were 412 million pounds.
CIB said it was “prioritising solvency over profitability in light of the macroeconomic challenges that followed the COVID-19 outbreak.”
