COMMERCIAL INTERNATIONAL BANK
 

CI RATINGS:

Sovereign:                  L/T        BB+     S/T      B
Foreign Currency:        L/T        BB+     S/T      B
Outlook:                      Negative

RATING RATIONALE:

Commercial International Bank (CIB) commands an important position in the local market, enjoying a high market profile and well-entrenched business franchise. As the country's premier wholesale institution, CIB's balance sheet is the largest among the top four major joint-venture banks.

Management quality is high and clear business strategies are in place aimed at developing CIB into a financial services conglomerate.

While the business focus remains corporate banking, the Bank's growing emphasis on retail banking aims to diversify risk and safeguard its market position particularly from the aggressive foreign retail banks.

CIB's asset quality improved during the year following significant write-offs, resulting in lower NPL levels and strengthened provision cover.

Liquidity continues to improve as customer deposits growth continues to outpace lending, and capitalization is comfortable.

Although profitability slipped slightly during the year due to lower FOREX revaluation gains under new accounting rules introduced by the central bank, the Bank again produced one of the highest returns in the Egyptian banking system.

Ratings are maintained as above. The negative outlook applies to the foreign currency ratings reflecting the outlook assigned to Egypt's sovereign ratings.

From CI RATING REPORT - July 2003