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Egyptian bank to be listed on UAE bourses

ABU DHABI - The Commercial International Bank of Egypt would be the third foreign company to be listed on the UAE bourses as the Stocks and Commodities Authority (SCA) has granted the necessary permission in this regard yesterday.

“A number of applications are in process which were received recently by the Stocks and Commodities Authority from the UAE as well as International companies who wanted to be listed on the stock markets to widen their shareholding base are underprocess,” said an official of the authority.

CIB also recently got permission for enlistment at the Kuwait Stock Market, as it is desparate to reach new markets.

The Commercial International Bank was established in 1975 as a joint venture between National Bank of Egypt with 51 per cent stake while Chase Manhattan Bank contributed 49 per cent equity under its original name Chase National Bank of Egypt.

CIB which has a paid up capital of Dh771.4 million, has closed the first half of 2004 with impressive results of Dh153.33 million representing 32.7 per cent against previous period. For the second quarter in a row, the constant and steady growth was due to core business activities where net interest income grew by 21 per cent from Dh183.73 million in first half of 2003 to Dh222.55 million in first half of 2004. Non-interest income grew by 23 per cent recording Dh176.55 million which resulted in 22 per cent growth in NOP.

Total provisions of Dh116.66 million was distributed including loan loss provisions amounting to Dh59 million; tax provisions of Dh26.66 million; contingent provisions Dh20.66 million and general risk provisions Dh10 million.

The non performing loans (NPL) were seen at 5.7 per cent of total portfolio while the NPL coverage ratio reached 118 per cent.