LSE:CBKD

Stock Analysis Report

Commercial International Bank -EgyptE

Executive Summary

Commercial International Bank -Egypt S.A.E provides retail, corporate, and investment banking services in Egypt.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Commercial International Bank -EgyptE's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CBKD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

CBKD

-3.6%

GB Banks

0.05%

GB Market


1 Year Return

30.8%

CBKD

-6.0%

GB Banks

7.1%

GB Market

Return vs Industry: CBKD exceeded the UK Banks industry which returned -8.4% over the past year.

Return vs Market: CBKD exceeded the UK Market which returned 6.6% over the past year.


Shareholder returns

CBKDIndustryMarket
7 Day-1.3%-3.6%0.05%
30 Day2.3%-3.6%-1.7%
90 Day12.6%-2.3%4.1%
1 Year32.5%30.8%-1.2%-6.0%12.6%7.1%
3 Year56.1%51.6%-6.7%-17.4%18.4%3.6%
5 Year31.2%23.2%-2.6%-21.1%35.2%4.2%

Price Volatility Vs. Market

How volatile is Commercial International Bank -EgyptE's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Commercial International Bank -EgyptE undervalued compared to its fair value and its price relative to the market?

16.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CBKD ($5.41) is trading below our estimate of fair value ($6.5)

Significantly Below Fair Value: CBKD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CBKD is poor value based on its PE Ratio (11.7x) compared to the Banks industry average (9.1x).

PE vs Market: CBKD is good value based on its PE Ratio (11.7x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: CBKD is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: CBKD is overvalued based on its PB Ratio (2.6x) compared to the GB Banks industry average (0.6x).


Next Steps

Future Growth

How is Commercial International Bank -EgyptE forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBKD's forecast earnings growth (16.6% per year) is above the savings rate (0.5%).

Earnings vs Market: CBKD's earnings (16.6% per year) are forecast to grow faster than the UK market (13.1% per year).

High Growth Earnings: CBKD's earnings are forecast to grow, but not significantly.

Revenue vs Market: CBKD's revenue (10.6% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: CBKD's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CBKD's Return on Equity is forecast to be high in 3 years time (21%)


Next Steps

Past Performance

How has Commercial International Bank -EgyptE performed over the past 5 years?

24.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBKD has high quality earnings.

Growing Profit Margin: CBKD's current net profit margins (44.2%) are lower than last year (44.5%).


Past Earnings Growth Analysis

Earnings Trend: CBKD's earnings have grown significantly by 24% per year over the past 5 years.

Accelerating Growth: CBKD's earnings growth over the past year (23.5%) is below its 5-year average (24% per year).

Earnings vs Industry: CBKD earnings growth over the past year (23.5%) underperformed the Banks industry 28.3%.


Return on Equity

High ROE: CBKD's Return on Equity (22.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Commercial International Bank -EgyptE's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CBKD has a low level of unsold assets or inventory.

Debt Coverage by Assets: CBKD's debt is covered by short term assets (assets are 43.9x debt).


Financial Institutions Analysis

Asset Level: CBKD's level of assets compared to its equity is low.

Allowance for Bad Loans: CBKD has a sufficient allowance for bad loans.

Low Risk Liabilities: CBKD's liabilities are made up of primarily low risk sources of funding.

Loan Level: CBKD has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CBKD's loans are broadly funded by customer deposits.

Level of Bad Loans: CBKD has a high level of bad loans (3.97%)


Next Steps

Dividend

What is Commercial International Bank -EgyptE's current dividend yield, its reliability and sustainability?

0.93%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.8%markettop25%5.1%industryaverage6.4%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: CBKD's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.81%).

High Dividend: CBKD's dividend (0.93%) is low compared to the top 25% of dividend payers in the UK market (5.12%).


Stability and Growth of Payments

Stable Dividend: CBKD is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: CBKD is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CBKD is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CBKD's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Hussein Abaza (57yo)

2.9yrs

Tenure

0

Mr. Hussein Abaza has been the Chief Executive Officer and a Director of Commercial International Bank (Egypt) S.A.E. since March 14, 2017. Mr. Abaza served as Chief Executive Officer of Institutional Bank ...


Leadership Team

NamePositionTenureCompensationOwnership
Amin Ezz Al-Arab
Chairman & MD18.1yrsno data0.000030% EGP2.4k
Hussein Abaza
CEO & Director2.9yrsno data0.0096% EGP781.3k
Mohamed Sultan
Chief Operating Officer5yrsno datano data
Yasmine Hemeda
Head of IR0yrsno datano data
Sherif Khalil
Chief Communications Officer0yrsno datano data
Ahmed Issa
Chief Executive Officer of Retail Banking3.1yrsno datano data
Amr El Ganainy
Chief Executive Officer of Institutional Banking10.1yrsno datano data
Pakinam Essam
Chief Risk Officer9.1yrsno datano data
Nelly Zeneiny
IR Officer0yrsno datano data

5.0yrs

Average Tenure

55yo

Average Age

Experienced Management: CBKD's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Amin Ezz Al-Arab
Chairman & MD18.1yrsno data0.000030% EGP2.4k
Hussein Abaza
CEO & Director2.9yrsno data0.0096% EGP781.3k
Paresh Sukthankar
Independent Non-Executive Director0.3yrsno datano data
Bijan Khosrowshahi
Non-Executive Director5.3yrsno datano data
Magda Habib
Independent Non-Executive Director2.2yrsno datano data
Jawaid Mirza
Lead Director1.1yrsno datano data
Rajeev Kakar
Independent Non-Executive Director0.3yrsno datano data
Amani Abou-Zeid
Independent Non-Executive Director2.2yrsno datano data

2.2yrs

Average Tenure

58yo

Average Age

Experienced Board: CBKD's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Commercial International Bank -Egypt S.A.E's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Commercial International Bank -Egypt S.A.E
  • Ticker: CBKD
  • Exchange: LSE
  • Founded: 1975
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ج.م126.370b
  • Listing Market Cap: ج.م8.121b
  • Shares outstanding: 1.47b
  • Website: https://www.cibeg.com

Number of Employees


Location

  • Commercial International Bank -Egypt S.A.E
  • Nile Tower
  • 21/23 Charles De Gaulle Street
  • Giza
  • Egypt

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
COMICASE (Cairo and Alexandria Stock Exchange)YesOrdinary SharesEGEGPAug 1995
CMGG.FOTCPK (Pink Sheets LLC)GDR REG SUSUSDDec 1996
CBKDLSE (London Stock Exchange)GDR REG SGBUSDDec 1996
CBKDLBATS-CHIXE (BATS 'Chi-X Europe')GDR REG SGBUSDDec 1996
CIBE.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDApr 2004

Biography

Commercial International Bank -Egypt S.A.E provides retail, corporate, and investment banking services in Egypt. The company operates through four segments: Corporate Banking, Investment Banking, Retail Banking, and Others. It offers current and saving accounts, save and safe accounts, time deposits, certificates of deposit, and business accounts; and revolving and unsecured overdrafts, as well as auto, mortgage, personal, wedding finance, and medium and short term loans. The company also offers credit, debit, prepaid, and business cards; roadside assistance services, such as towing, battery jump start, and flat tire and car replacement; mobile, Internet, and phone banking services; and ATM and e-payment services. In addition, it provides investment products and services; self-employed programs; e-banking solutions and services, including business banking access cards and global transaction services-sophisticated solutions; cash management services; and educational packages, as well as corporate banking services. Further, the company offers other credit facilities; derivative products; and financial instruments trading, as well as foreign currency services. It operates through approximately 196 branches. The company was formerly known as Chase National Bank of Egypt and changed its name to Commercial International Bank -Egypt S.A.E in January 1987. Commercial International Bank -Egypt S.A.E was founded in 1975 and is headquartered in Giza, Egypt. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 20:54
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.