Beltone Financial expects CIB operating income to come in at EGP1.96 billion, 27% higher y-o-y, and earnings at EGP857 million, 45% higher y-o-y.
CIB to release 4Q2013 results tonight.
Beltone added in a research note” We believe the bank’s NIM has peaked in 2Q2013 (at 545 bps) and expect further NIM compression from the 3Q2013 levels of 522 bps), with pressure from asset yields following three consecutive policy rate cuts in August, September, and December 2013 and the slide in treasury yield following the June 30events. “
Nevertheless, we expect the bank’s recent shift to lower-cost deposits to partially compensate for the expected pressure on asset yields. We expect provisioning levels to continue to be elevated, yet this may not necessarily be accompanied by further deterioration in asset quality. On the balance sheet, we expect lending growth to show slight improvement, in line with management guidance, to record 3% q-o-q and deposits to add 4.6% sequentially in line with the bank’s recent history, Beltone said.
It is worth mentioning that Beltone had set CIB fair value at LE 34.70 with a “hold” rating.
Source : Arabfinance
