CAIRO: Commercial International Bank (CIB), one of Egypt s top three private-sector banks, said on Monday it was eyeing potential expansion in Syria, Lebanon, Jordan and the Gulf. The bank said in a conference call it also expected to announce the shareholding structure and exact start-up date for its Algerian subsidiary by year-end. It said the Algerian unit was expected to open by mid-2007. Another market that is quite interesting is the Levant market. We are assessing the Levant market and seeing how we can have reach there, Chairman Hisham Ezz Al-Arab said. I am talking about Lebanon, Syria, and Jordan. No decision has been taken yet but it is part of our road map for business growth.
He added the company was also looking at expansion opportunities in the Gulf, citing Saudi Arabia in particular. CIB said last month it would set up a subsidiary in Algeria in conjunction with investors from Egypt and the United Arab Emirates, to be called CIB-Algeria. The bank cited significant growth opportunities in Algeria, especially in corporate banking as the role of the country s private sector expands through privatization and foreign direct investment. CIB also said it was still interested in branch network expansion in Egypt after it failed in its bid to win an 80 percent stake the government offered in Bank of Alexandria, which was acquired last month by Italy s Sanpaolo for $1.6 billion.
The bank also said it expected annual profit growth of 25 percent in coming years. CIB on Sunday reported a 37 percent rise in nine-month net profit to LE 614.7 million ($107.3 million). We have put forward a business plan for the coming five years. I would say we have a reasonable confidence rate about it for the coming two to three years, where we see potential profit growth, bottom line growth, of 25 percent annually, Ezz Al-Arab said.
Shares in CIB ended 4.8 percent lower at LE 52.26 on Monday, the first trading day since its results were announced, while the benchmark Hermes index was 1.9 percent lower.
