Poised for growth; Remain Overweight
Up TP by 25% to EGP43.5/share, operational KPIs support growth. Our TP hike incorporates stronger NIMs (+40bps on average during 2018-20e) largely on contained cost of funding. CAE is strongly positioned to benefit from a potential pick-up in private credit, due to its highly liquid balance sheet, strong capital base and asset quality. Our TP implies a 2017e P/BV of 2.9x vs. an RoE of 38% compared to a P/BV of 3.2x (premium due to size and liquidity) and RoE of 31% for Commercial International Bank (CIB). A deterioration in Egypt’s risk profile, and in turn lending backdrop, remains the primary downside risk.
Credit Agricole Egypt is a commercial banking group based in Egypt. Co. is engaged in full-service retail banking in France and Europe. Co. provides corporate banking, retail, and investment banking services in the Arab Republic of Egypt and foreign countries through its 73 branches. Co. maintains operations in 70 countries, and is a partner in supporting clients with their projects in all areas of retail banking and associated specialized business lines: day-to-day banking, savings, home and consumer loans, insurance, private banking, asset management, leasing and factoring, and corporate and investment banking.
CI Capital is a diversified financial services group and Egypt’s leading provider of leasing, microfinance, and investment banking products and services.
Through its headquarters in Cairo and presence in New York and Dubai, CI Capital offers a wide range of financial solutions to a diversified client base that include global and regional institutions and family offices, large corporates, SMEs, and high net worth and individual investors.
CI Capital leverages its full-fledged investment banking platform to provide market leading capital raising and M&A advisory, asset management, securities brokerage, custody and research. Through its subsidiary Corplease, CI Capital offers comprehensive leasing solutions, including finance and operating leases, and sale and leaseback, serving a wide range of corporate clients and SMEs. In addition, CI Capital offers microfinance lending through Egypt’s first licensed MFI, Reefy.
The Group has over 1,700 employees, led by a team of professionals who are among the most experienced in the industry, with complementary backgrounds and skill sets and a deep understanding of local market dynamics.
CI Capital has been recognized as the “Best Investment Bank in Egypt” by EMEA Finance for four years running from 2013-2016, and by Global Finance in 2014 and 2015.
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