Pharos commented on the news that Credit Agricole Egypt reported an unaudited net profit of EGP 137.2 million during Q2-12, rising 8.0% Q-o-Q and 68.9% Y-o-Y respectively.
Pahros’ Monsef Morsy described these results as “strong”. The lender reported higher than expected net profit and continued to post relatively strong growth in both loans and deposits, he noted.
“We need to highlight that the full financials are not released yet and accordingly determining the exact reasons for the growth in net income is not possible. Nevertheless, we believe that the bulk of the growth is mainly attributed to 1) an increase in total interest received, particularly on the liquidity relieved following the first 200 bps cut in the reserve requirement ratio, and 2) lower loan loss provisions. Net loans grew by 1.6% in Q2-2012 (11.8% YTD) and deposits increased 10.6% in Q2-2012 (12.5% YTD)”, Morsy added.
Pharos set Credit Agricole’s fair value at EGP 13.3, representing an upside potential of 46.0%.
Mubasher
