CI Capital Holding for Financial Investments Reports its 1Q 2021Consolidated Results

CI Capital Holding for Financial Investments reports today its 1Q 2021 consolidated results.

Revenues recorded EGP 560millionand normalized net profit after minority, excluding one-off expenses,reached EGP 133 million, up 8% y-o-y and 48% y-o-y, respectively. Total financing portfolio stood at EGP 10.8 billion.

Consolidated Highlights

• Total on balance sheet financing portfolio1 reached EGP 10.8 billion, increasing 17% year-on-year (y-o-y)
• Consolidated revenues reached EGP 560million, up8% y-o-y, with an NBFS contribution of 76%
• Net interest income reached EGP 205million, increased a solid 17% y-o-y,with a blended NIM of 7.8%
• Net operating profit posted EGP 186 million, up17% y-o-y
• Normalized net profit after tax & minority recorded EGP 133 million,up 48% from comparable year, with an NBFS bottom-line contribution of 61%.
• Reported net loss after tax & minority stood at EGP 17 million on recognition of EGP 150 million one-off ESOP expenses during the quarter.

Non-bank Financial Services Highlights

Leasing

• Leasing net profit after tax reached EGP 64 million, inching up30% y-o-y
• Corplease reported new lease bookings of EGP 1.3billion, increasing 47% y-o-y
• Outstanding lease portfolio reached EGP 9.0 billion, growing 16% y-o-y

Microfinance

• Microfinance net profit after tax grew18% y-o-y to reach EGP 41 million
• Total microfinance outstanding loans reachedEGP 1.2 billion at the end of 1Q 2021, growing 40% y-o-y
• Total branch network increased to104 branches, with 34new branches added y-o-y

Mortgage Finance

• CI Mortgage stood with a portfolio of EGP143 million at the end of 1Q 2021, up from EGP 93 million in 1Q 2020

Consumer Finance

• Souhoola, the Group’s greenfield consumer finance arm, stood with a portfolio of EGP91million at the end of 1Q 2021

Investment Bank & Holding Highlights

• Assets under management (AUMs) reached EGP 11.2billion, up 31% y-o-y
• Brokerage market share reached5.7%2 in 1Q 2021, ranking 4thamong all brokerage houses
• Investment banking advisory revenuesrecorded EGP 28million, raising41% year on year

Hesham Gohar, CI Capital’s Group CEO, commented on the 1Q 2021 performance:

“We are excited to kick start the year with such a settler set of results, despite an unprecedented challenging market conditions, which demonstrates the Group’s resilient and solid balance sheet. Our financing businesses successfully expanded their financing portfolios by a notable 17% y-o-y to a combined EGP 10.8 billion, generating a net interest income of EGP 205 million and yielding a blended NIM of 7.8%. Normalized net profit after tax and minority reached EGP 133 million, up 48 % y-o-y from an already strong base, driven by strong performance from the IB platform and sustained healthy growth from Reefy as the later continues to reap the benefits of its robust network expansion strategy. On a reported basis, the Group recorded a net loss after minority of EGP 17 million, primarily on recognition of one-off expenses of EGP 150 million during the quarter.

Reefy, the Group’s microfinance arm, sustained its solid performance delivering record high KPIs across all fronts, fueled by aggressive rollout of new branches. Outstanding portfolio reached EGP 1.2 billion with loan disbursements up a remarkable 23% y-o-y to EGP 494 million, the highest the company has ever granted in a single quarter, served by network of 104 active branches.Our advisory arm concluded the IPO of Taaleem Management Service in March, marking the first sizable IPO on the EGX over the past16 months, which witnessed strong appetite from institutional and retail investors and was 3.7x oversubscribed.

As market recovery continue to unfold, we are confident that we are on the right track and well positioned to outgrow the market as we continue to capitalize on our well diversified business model and healthy balance sheet”