Fitch this month raised CIB’s outlook to stable from negative, saying that CIB’s corporate franchise allows the bank to focus on private-sector borrowers with good credit quality.
“We are positive on the strong recovery story the Egyptian banks are ready to capture,” says Abanob Magdy, vice president for banking at Beltone Financial in Cairo. “Our discussions with banks’ management teams reveals that there is no trend of credit delinquencies” and there has been a partial economic recovery which should ease the pressure on asset quality, he says.
CIB, Egypt’s large private commercial bank, reported a 24% increase in second-quarter net income. Along with Qatar National Bank and Crédit Agricole Egypt, CIB will benefit from an expected surge in credit demand, underpinned by its strong capital base and customer reach, Magdy adds.
Banking analyst Victor Galliano, who publishes on SmartKarma,
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