The Commercial International Bank (CIB), Egypt's largest private bank, reported a record third quarter financial results, as net income grew by an annual 94 per cent mainly due investment in government securities.
Net profit stood at LE610.4 million ($102 million) in the quarter ending September 2012, seeing a 17 per cent growth over the previous quarter.
The bank's Net interest income (difference between interest income and interest expense) reached LE1.03 billion, marking a solid 49.3 growth over the same period last year.
"CIB reported a strong set of results, with NIMs, interest, operating, and net income reaching record levels for the bank," Cairo based investment bank, Beltone Financial, said in a note issued on Wednesday.
The main reason behind the record growth in profitability is CIB's heavy investment in high-yield government securities, .
The Egyptian government has been borrowing at rates as high as 16 per cent over the past two years; turning to local banks as foreign investors got worried from the unstable political and economic situation after the 2011 uprising.
Weaker corporate borrowing was offset by a stronger retail segment, Beltone explains. Retail credit increased 27.7 per cent since the beginning of year, a growth rate comparably higher than that seen in other private banks.
Capital Expenditure corporate loans, however, dropped by 1.3 per cent since the beginning of 2012.
The CIB is the third largest listed share on the Egyptian Stock Exchange. It is currently trading at LE38.51 per share.