Although 2016 was not short of challenges, CIB again demonstrated its strength and resilience by delivering strong financial performance in the face of subdued economic activity while honouring the Bank’s commitment to its employees, customers and shareholders to be the leading financial institution in Egypt.
Among many noteworthy achievements of the past year, the Bank reported record net profit and revenues, produced healthy loan and deposit growth, maintained a solid capital foundation and worked to further enhance our excellent customer service.
Our ability to produce such accomplishments reflects CIB’s distinctive business model and emphasises the Bank’s agility to adapt to the changing macro and regulatory environments while operating within a solid strategic framework focused on sustainable growth.
Parting from that, we proudly present to you our Board of Directors Report detailing how CIB managed to work through the unusual circumstances and come out even stronger yet again.
Egypt: Short-Term Challenges … Long-Term Opportunities
2016 was globally foreseen as a year of opportunities arising on the back of resumed corporate activity and restored investor confidence, but year-to-date events have proven otherwise both on the local as well as the regional arenas.
The Egyptian economy had to deal with a burdensome agenda of a high budget deficit, foreign currency shortages, rising inflation, an ailing tourism sector and low remittances, FDIs or Suez Canal revenues. More economic headwinds included structural adjustment and a government reform program of unprecedented proportion — in conjunction with the IMF loan and other multilateral/bilateral funding sources — that included gruelling fiscal consolidation measures and the historical floatation of the Egyptian pound (EGP), in an attempt to put the country’s economic house in order and pave the way for economic stability.
To delve deeper into the economic activity over FY2016, one must look at the macro picture both prior to and after one major turning point: the liberalisation of the EGP.
Prior to the Floatation
The Egyptian economy faced major challenges marked by the high budget deficit of 11.8% of GDP, the severe foreign currency (FCY) shortages, where net international reserves were in the range of USD 16-17 billion throughout 2016 and reached USD 19.5 billion in September along with high and rising inflation rates exceeding 15% in August, a situation that led to the revision of Egypt’s GDP growth forecasts down to 3.3% from 4.4%.
The inadequacy of the foreign currency supply along with an overvalued EGP hampered Egypt’s competitiveness — lowering the volume of exports by 26% in 1Q FY2016.
The spread of terrorism in the Middle East as a spill over from the conflict in Syria and instability in Iraq has hit Egypt’s already ailing tourism sector, and the crash of the Russian plane over the Sinai Peninsula brought it to an almost complete halt.
Other foreign currency revenues dried up as well. FDIs remained in a wait-and-see mode, driven by the haziness in the foreign exchange market and the anticipation of the devaluation/free float of the EGP. In addition, the persistent Chinese economic slowdown continued to take its toll on Suez Canal revenues.
Externally, the sluggish recovery of the Eurozone weighed on Egypt’s growth, while lower oil prices and a slowdown in Gulf countries negatively impacted Egyptians’ remittances and dwindled grants, aid and foreign currency deposits from GCC states that now must pursue structural reforms and cut down government spending to meet the new oil realities.
The Central Bank of Egypt (CBE) devalued the EGP by almost 13% in March 2016. The local currency was devalued to EGP 8.78 to the USD in an attempt to ease the foreign currency shortage by bringing the official rate closer to that of the parallel market and attract FDI.
In an effort to curb rising inflation, the Monetary Policy Committee (MPC) introduced a series of successive interest rate hikes: 50 bps in December 2015, 150 bps in March 2016 and 100 bps in June, raising the corridor rates to 11.75% and 12.75% for deposits and lending, respectively. The successive interest rate hikes had little impact over inflation rates given the continuous rises on the core and headline readings, and further restrained growth by raising the cost of borrowing for companies. Furthermore, such hikes did not support the government’s ambitions in reducing its widening deficit.
2016 witnessed the resumption of talks with the IMF for a USD 12 billion Extended Fund Facility (EFF) to support a government reform program aimed to improve the functioning of the foreign exchange markets, bring down the budget deficit and government debt and create jobs, especially for women and youth. Some of the steps that were taken by the government supporting its commitment to reforms include further rationalisation of energy subsidies and implementing a value-added-tax (VAT) at 13% (increasing to 14% in 2017), which Parliament passed in August.
After the Floatation
In early November, the central bank announced that it was moving with immediate effect to a liberalised exchange rate regime to quell any distortions in the domestic foreign currency market and to allow market demand and supply dynamics to work effectively to create an environment of reliable and sustainable provision of foreign currency.
At the time of writing, the currency stands at around 18.27/USD, which represents a drop of 100% against the USD since before the floatation. Economists’ consensus is that the EGP will witness further volatility over the next couple of years, but the big adjustment has already happened.
Besides the complete exchange rate liberalisation, the CBE also increased the overnight lending and deposit rates by 300 bps, bringing the deposit rate to 14.75% and lending rate to 15.75%. Also, immediately following the devaluation, the government upwardly adjusted administrative fuel prices by approximately 30-40% as phase 1 of a multi-year program to eliminate energy subsidies.
The costs of these reforms and the floatation translated to a 23.3% headline inflation and 25.86% core inflation as of December.
With the disbursement of the first tranche of the IMF loan, the conclusion of the People’s Bank of China/CBE USD 2.7 billion swap agreement, and the upcoming launch of Egypt’s USD 2-3 billion Eurobonds, the CBE is set to rebuild a strong reserve shield rather than support a specific exchange rate. Hence, net international reserves reached USD 24.3 billion at the end of December 2016.
Amid these changes, the Egyptian Stock market in 2016 was the world’s best-performing market in 2016, according to the Egyptian Exchange’s year-end report. The move to a liberalised exchange rate regime triggered one of the strongest bull equity market rallies in Egypt’s history, portfolio inflows into equities and fixed income rebounded sharply after almost six years of absence and foreign strategic investors have started to actively eye investment opportunities. The EGX 30 index rose 74% in 2016, and the year saw one of the highest volume of foreigners’ net-buying in the market and attracted 883 new funds and institutions.
During these extraordinary times, one fact remained unchanged, that is a safe, strong and resilient banking industry is absolutely critical to a country’s success. The Egyptian banking sector has been the lifeblood that kept the economy going throughout the past six years. Egyptian banks managed through the cycles, continued to support the economy and came out, to a great extent, unharmed. Banks remain well funded because of their strong deposit base. Liquidity remains ample, with the loan-to-deposit ratio at 44.5% (one of the lowest in emerging economies) and substantial excess reserves. Stress tests performed by the CBE suggest that possible losses could be absorbed by banks’ profits and capital buffers. Reiterating the fact that the fundamentals are solid and the sector is well poised to absorb the pent-up corporate demand and is steadfast in its ability to take advantage of the vast opportunities that still lie within the Egyptian market.
Outlook Moving Forward
As Egypt goes through a clear shift in monetary and fiscal policies aimed at easing pressure on the EGP and controlling mounting inflation and public spending, 2017 is a year where growth is expected to slow. But with the government’s solid steps towards reforms along with an IMF deal now in place, growth should pick up from 2018 as inflation eases, monetary policy begins to be loosened and the Zohr gas field comes on stream.
CIB is and has always been at the forefront of change in the Egyptian banking industry, and we continue to grow our core and strategic capabilities to sustain our competitiveness.
The fall in the EGP’s value will naturally involve some short-term challenges for the economy. In particular, import costs will rise, which, combined with measures to tighten fiscal policy such as the implementation of VAT and fresh subsidy cuts, will push inflation up in the coming months.
Moving forward, Egypt should be able to take advantage of the boost in competitiveness from a weaker EGP, which will help narrow the current account deficit, and there are already signs that foreign investors are returning to the country. In collaboration with the IMF, further economic reform is likely, which will act as an additional pull for foreign investors. All of this should support stronger medium-term growth. Within this context, Egypt is approaching the last mile of a bumpy 25-year economic reform process with full-fledged political commitment and comprehensive international support.
Heading into 2017, the following elements are needed to ensure smooth sailing through the current challenges:
- A proactive government that efficiently creates a better business climate, presses ahead with its reform agenda, and continues its focus on fiscal adjustment, legislative reform, improving the international standing and enhancing social protection.
- A patient private sector that realises the costs of reforms— and that demanding protection, special exemptions or a reversal of course will hinder economic activity.
- Policy stability that clearly defines the forthcoming Investment Act.
- Hard work and persistence that helps overcome current and potential bottlenecks.
Highlights of 2016
CIB is and has always been at the forefront of change in the Egyptian banking industry, and we continue to grow our core and strategic capabilities to sustain our competitiveness. Our sophisticated interest rate and liquidity risk management frameworks prepare us for a range of market scenarios and ongoing regulatory changes. Our focus on technology, revolving around developing innovative solutions, capitalising on big data and investing in cyber defences, underscores the Bank’s commitment to leadership and excellence, aiming to be the most effective provider of financial services across all categories. We continue to invest in our most important asset, our people. We look forward to serving the needs of the next as well as the current generation of customers, clients and employees. We remain committed to advancing and protecting the Bank’s position as a world-class financial institution in a culture rooted in both ingenuity and integrity.
2016 was no different, we continued to do what we have always done: manage the Bank and invest for the long run in line with our growth strategy, that is to achieve sustainable and profitable growth based on customer centricity, operational efficiency and organisational development.
The following list of CIB’s competitive advantages and set of factors and paved the way for the success of our strategy and translated many of our goals into concrete reality.
Dynamic Balance Sheet Management
CIB succeeded over the years to maintain a forward-looking strategy to sustain any external shocks based on sound balance sheet management, a solid capitalisation level and exceptional liquidity, which is well in excess of both local and international regulations. Despite continuous uncertain market conditions in 2016, the Bank continues to maintain its solid reputation as a market leader, serving clients efficiently and delivering strong results as evident in the following:
Proactive Liquidity and Interest Rate Risk Management
In 2016, we continued to advance our approach to liquidity and interest rate risk management, cornerstones of safety and soundness.
Throughout the year, we ensured that the Bank had sufficient liquidity resources to continue business as usual under both a short-term and prolonged market and company-specific stress. Our internal framework is more conservative than the related Basel II liquidity measures. Compliance with our framework in 2016 has resulted in CIB exceeding regulatory minimums as well as Basel III liquidity guidelines, in both local and foreign currency. The LCY CBE liquidity ratio remained well above the regulator’s 20% requirement, recording 60.77% as of December 2016, and the FCY CBE liquidity ratio reached 47.80%, above the threshold of 25%. NSFR was 234% for local currency and 140% for foreign currency and LCR was 1770% for local currency and 435% for foreign currency.
Furthermore, CIB maintained a healthy LDR ratio of 42%. The Bank successfully attracted 7% of all new deposits in the system in 2016, which is a testament to the trust the market has in CIB. Having attracted such deposit inflows without significant increases to our cost of funding reiterates the Bank’s mission of creating a sustainable liability base supported by stable, cost-effective customer deposits. The Bank focused on enhancing the CIB franchise and building relatively sticky low-cost current account and savings account (CASA) deposits, which comprised 43% of total customer deposits as of 31 December 2016. The growth in CASA deposits helps to drive down overall cost of funds, providing a strategic advantage for the Bank.
In 2016, CIB used an effective risk-management process that maintained interest rate risk within prudent levels and ensured the Bank remained on safe and stable ground. Measures included lowering the balance sheet duration as a precautionary measure to minimise the impact of interest rate movements on the Bank’s capital adequacy levels. CIB also took the lead in the reclassification of the Bank’s sovereign portfolio in a way to ensure that it maintains a proper balance sheet structure, boosting the return to shareholders in light of an increasing interest rate environment, while maintaining its liquidity ratios comfortably above regulatory requirements. As a result, and despite prevailing economic conditions, we are better prepared to manage whatever scenario plays out.
Best-in-Sector Asset Quality Led by Prudent and Well-Disciplined Risk Management
CIB has always believed that having an effective and disciplined risk management framework is crucial to proactively recognise potential adverse events and establish appropriate risk responses that in turn reduce costs and prevent losses associated with unexpected and volatile market conditions. We continually evaluate our risk strategy, appetite and analysis in response to current and anticipated economic conditions, conducting vigorous stress tests, efficient risk reporting and analysis, and digitisation of certain monitoring systems and processes.
Parting from that conviction and led by a dynamic risk-management strategy to counter potential challenges and market factors, CIB took provisions of EGP 893 million for the full year. Moreover, asset quality continued to remain resilient, as reflected in an NPL ratio of 6.70% (5.7% normalised for the EGP devaluation) of the gross loan portfolio, covered 149% by the Bank’s EGP 9.82 billion loan loss provision balance.
Increasingly Strong Capital Ratio
In a market where capital is the name of the game, CIB has established a strong capital base that not only allows the Bank to excel and outperform despite slow economic growth, market volatility and heightened macro-economic challenges, but also distinguishes CIB with an advantageous market position despite having many players in the banking sector. The management and Board continue to pursue all available alternatives to ensure a sustainable, comfortable capital base that is less vulnerable to external factors.
In 2016, CIB maintained its strong and resilient capital base, as reflected in a comfortable capital adequacy level of 10.47% before profit appropriation and 13.97% after profit appropriation well above CBE requirements and Basel guidelines.
Consistently Good Returns on Equity
All our businesses are close to best in class, as reflected in consistently strong return on equity. CIB’s commitment to sustainability was evident in its ability to record an ROAE of 34.24% (after profit appropriation based on the suggested profit appropriation schedule).
Efficient Cost Controls
Personnel and administrative expenses increased by 20% in 2016. As we press on with building our businesses for the future, we will continue to invest for the long-term growth and sustainability of the Bank, namely in technology, training and various investments geared toward automating and improving efficiency and operations. Nonetheless, the cost-to-income ratio will remain within the 30%-35% range set by the Board of Directors.
Investing in Talent and Technology
Talent and technology continue to be at the centre of our success, both today and in the future. We continuously invest in our human capital to have the best caliber on the ground who are ready to work with clients wherever they need our solutions and expertise. And we are committed to arm those employees with technology tools that enable them to serve clients efficiently and effectively.
With the growing wealth of data and customer interactions, so does the need to utilise Big data to identify opportunities, spot trends and analyse patterns and transform them into information, products and insights that can be used extensively to improve our Bank.
To best utilise our data assets and spur innovation we have built our own in-house big data and are now the first bank in the region to have an advanced analytics and data management team and will soon become the first to harness the power of big data for the benefit of our customers.
In its quest of moving from a descriptive analytics model to predictive analytics, CIB has been investing aggressively in its IT and human capital to develop an exceptional infrastructure that can support its Big Data platforms. Such investments included data storage and computation platforms to increase structured data capacity and improve reporting performance as well as self-service Business Intelligence and real-time information delivery systems to manage petabytes of data for advanced analytics and new regulatory requirements.
We strongly believe these developments will prove transformational not just for CIB, but for our customers, clients and communities. All of which will significantly benefit from big data technologies and improved data-management practices across our businesses.
Future-Proofing the CIB Franchise
Over the years, we have been very disciplined in our approach to growth, including resisting calls to skimp on investments for the future to meet short-term targets, but that is not our approach for building the business for the long term.
This responsible approach, a strong franchise and stable financial footing have left us well-positioned for the current economic challenges.
No one is able to predict what comes next, but we strive to ensure the Bank has the capacity to adapt to the future — no matter what it looks like. To this end, CIB devoted significant attention in 2016 to studying our current business mix to respond strategically to evolving regulatory requirements as well as to find ways to be more productive with our resources and maximise shareholder value.
To meet the evolving needs of our customers as well as the financial system more broadly, we are committed to continually developing new solutions while maintaining a robust and secure infrastructure.
However, we do not innovate for innovation’s sake. Banking is, and always will be, about people and relationships. Therefore, our focus will remain on serving the real needs of our customers and clients: seamless interactions, personal advice and human experiences. We will continue to build for the future and be there for our clients in good times and bad. Whatever the future brings, we will face it from a position of strength and stability.
2016 Financial Position
CIB reported another exceptional set of results, with consolidated net income up 27.09% y-o-y at EGP 6.01 billion for FY2016. Standalone net income reached EGP 5.95 billion, 28.22% over 2015. Standalone revenues grew 11.05% over the previous year to EGP 11.32 billion.
The Bank recorded net interest income of EGP 10.02 billion, an increase of 23.44% y-o-y. Non-interest income recorded EGP 1.3 billion for the full year. Net fees and commissions income stood at EGP 1.55 billion.
All financial indicators emphasised the Bank’s strong financial performance in 2016. CIB maintained its efficiency during the year, with cost-to-income ratio at 21.4% compared to 19.6% in 2015. The Bank continued its upward trend in ROAE, which recorded 34.24% on a consolidated basis (post-appropriation), up from 33.46% in 2015. Consolidated ROAA recorded 2.71% for 2016. The bank recorded a net interest margin of 5.47% as of year-end 2016.
The Bank’s loan portfolio stood at EGP 97.5 billion at year’s end, growing 56% or EGP 35.3 billion y-o-y. Excluding the impact of the devaluation, the gross loan portfolio grew 5% or EGP 3.39 billion during 2016. This increase comes in accordance with the Bank’s strategic objectives in maintaining asset quality and enhancing profitability. The Bank’s market share of total loans amounted to 6.98% in October 2016.
CIB aggressively pursued deposit growth in 2016, adding EGP 77 billion to its base, which grew to EGP 231.7 billion, an increase of 49% over 2015. Excluding the devaluation impact, deposits grew 12% or EGP 18.61 billion. CIB’s share of the deposits market reached 8.10% in October 2016.
The Bank ended the year with a buoyant balance sheet and capital base, which is reflected in its comfortable capital adequacy level of 10.74% and an adjusted CAR (including profits attributable to shareholders) of 13.97%, well exceeding CBE stipulated ratios and enhancing the Bank’s ability to face uncertain economic circumstances, should any arise.
CIB continued achieving strong growth in net interest income, fees and commissions and the balance sheet. Relative to its peer group, CIB maintained its leading position in terms of profitability and balance sheet size. Overall, CIB’s strong financial performance in 2016 exceeded P&L targets.
Appropriation of Income
The Board of Directors proposed the distribution of a dividend per share of EGP 0.50. In addition, CIB is increasing its legal reserve by EGP 297 million to EGP 1,333 million and its general reserve by EGP 4,301 million to EGP 8,855 million, thus reinforcing the Bank’s solid financial position, as evidenced by a capital adequacy ratio of 10.74% and an adjusted CAR (including profits attributable to shareholders) of 13.97%. The proposed dividend distribution comes in line with the Bank’s strategy of maintaining a healthy capital structure to address more stringent regulations, mitigate associated risks as well as facilitate and support the Bank’s future growth plans.
CIB’s diverse mix of revenue streams enabled the Bank to weather a challenging operating environment this year, and our business model allowed CIB to stay committed to its growth strategy while building for tomorrow’s success. Once again, CIB management and employees delivered on all counts and, in doing so, the Bank achieved its best results to date and extended its leadership position in areas of strategic importance. We continue reaffirm our leading position in the industry as the best private sector bank in Egypt, with a number of impressive recognitions on all sides of our business:
Institutional Banking Activities
Parting from our conviction that “Winning organisations are more responsive to their customers, more agile than their competitors and more flexible in how they go to market,” the IB group adopted a new strategy during 2016 and embarked decisively on implementing it. The new strategy is aimed at reorganising the Group’s business divisions to better align them with the clients’ needs. The new model is built to enhance efficiency and maximise profitability, thus building a better and stronger franchise.
The IB Group continued to be the primary contributor to CIB’s bottom-line profitability, generating almost 66% of the Bank’s profits.
Throughout 2016, the Group sustained its preferred and most trusted business partner position through meeting corporate clients’ expectations and needs in a most timely and precise manner, offering best-in-class financial structures and advisory services to its clients with its competent team, customer-oriented approach and innovative product portfolio and distribution channels.
The IB Group continued to be the primary contributor to CIB’s bottom-line profitability, generating almost 66% of the Bank’s profits. Institutional Banking’s net income before tax increased by 18% over last year to reach EGP 5.3 billion in 2016, mainly on higher net interest income, foreign exchange gains and strong trade services performance and controlled expense growth.
On another note, the Bank’s strong disciplined and proactive risk framework has been essential in withstanding the uncertain economic environment in Egypt. Despite challenges, the risk group continued to align and collaborate with business on product development and risk strategies to drive growth without compromising the quality of the portfolio.
Consumer and Business Banking Activities
The Consumer and Business Banking Divisions had a very strong year in 2016, building on the Group’s strategy of delivering an outstanding customer experience and developing stronger relationships with our clients.
The distinctiveness of CIB’s offerings lies in following “tailored and personal messaging” strategies rather than broad-based “one-size-fits-all” approaches, which is the best way to engage with customers. The Group focused on enhancing customer service and attracting new customers, consequently enabling CIB to achieve growth in its consumer assets book despite challenging conditions in 2016, and with no significant deterioration in credit quality, thus maintaining its competitive edge in the market.
In doing so, Consumer and Business Banking net income rose 46% over last year to reach EGP 2 billion in 2016, contributing 34% to CIB’s gross profitability. Consumer Banking gathered EGP 25.1 billion and USD 505 million in deposits. This growth is an outstanding achievement in a highly competitive market of 39 banks and has helped CIB increase its market share of overall deposits in the Egyptian banking system, recording 8.09% as of December 2016.
Moreover, throughout 2016, we continued to renovate and add to the Bank’s extensive branch network, which stood at 168 branches and 748 ATMs as of December 2016.
At CIB, we strongly believe that by understanding customers well beyond a demographic profile, we can better anticipate what they need, and given the fast-paced advancement of technology and its growing integration into the lives of customers, it has become indispensable to redefine consumer banking dynamics. The transformational progress of mobile phones and mobile technology significantly changed consumer behaviour and expectations. Internet and mobile banking thus are no longer alternatives, but have become a necessity, especially for younger generations.
In keeping with the new banking trends, developing innovative digital services is a core focus of CIB. Tailoring truly customer-centric digital products and delivering all the services digitally, versus through traditional channels, is what differentiates a bank from its peers in the digital era we are in. This is where we see enormous revenue potential and why we have heavily invested in our digital platforms to transform our products and services to keep up with the quick pace of technology development and the demands of a younger generation of customers, who comprise 80% of the Egyptian population.
In November 2016, CIB launched its mobile banking application, which provides different banking services and offers many features for clients to manage their accounts conveniently.
Another digital product release in 2016 is CIB Smart Wallet, which revolutionises traditional payment methods and grants an advanced, secured, faster and smarter experience. The Wallet facilitates the customer’s daily payment process, including the payment of utility, phone bills, money transfers, mobile top-up, card-less cash in/out from the ATM, shopping online through a virtual card or from stores via a QR code, and much more. This new application integrates different technologies such as smartphones with banking services to expand the scope of financial services to reach a broader segment of customers. Additionally, CIB offers a variety of customised products to unbanked individuals and provides them with easily accessible digital solutions. With access to Smart Wallet and Turbo Cash, any person can transfer money to another in real time, 24⁄7, without a bank account, through simple steps using an ATM. In every case, the goal of these applications is to ensure a convenient, seamless and efficient banking experience.
CIB is also partnering with non-financial organisations to diversify its digital offering to a wider customer base. These combined efforts are yet another way to stimulate financial inclusion by reaching unbanked citizens. Such a significant step not only introduces a new, vast segment of telecom customers into our banking system, but more importantly increases banking penetration. It also demonstrates how a strategic alliance between two large entities from both the banking and telecommunication sectors can generate positive returns for our economy.
Operations and IT
In 2016, the COO Area was largely focused on the successful acquisition of Citibank’s retail business, which was based on the collective and comprehensive efforts exerted across Operations & IT to complete the complex integration process. CIB was the only bank among 11 Citibank acquisition deals worldwide to commit to a six-month transitional service agreement (TSA) period, making CIB the only bank to successfully complete the migration process in less than 12 months.
Much energy was channelled in 2016 into several IT initiatives, with continued efforts to build up our infrastructure capacity, enhance our production stability, improve our services monitoring and technology refresh for underlying infrastructure to create a more agile IT organisation that has the ability to support our services and provide a seamless and improved customer experience.
The COO Area also focused on automation, increasing productivity and optimising/streamlining its processes. This included several re-engineering efforts to enhance turnaround times and encourage staff to innovate and bring up new ideas through a “Think Tank” initiative.
Several key strategic projects were also launched during the year, such as the Customer Relationship Management Phase 1, improving internet banking with more secured authentication mechanisms and upgrades to our Core Banking Platform. To further study customer behaviour and make more effective credit decisions, we initiated a Scoring and Decision Engine project for both credit cards and personal loan applications to track consumer risk behaviour and ensure minimal risk to bank operations. This will allow us to build a unique risk model for each customer.
Despite the challenges faced during the year in terms of foreign exchange rates and foreign currency regulations set by the CBE, the COO Area has made every effort to ensure any extraordinary controls and regulations are seamlessly embedded in our processes without impacting our business expansion plans.
In line with CIB’s efforts to expand its reach, nine branches were instated this year. We also re-branded and renovated ex-Citibank branches to match CIB’s brand image. As for ATM’s, CIB continued to expand its network with an additional 86 ATMs added, bringing total ATMs to 748 across the country by the end of 2016.
Our footprint in Smart Village was also further expanded this year with the inauguration of the third Head Office, an award-winning building certified with the Egyptian Green Pyramids Certificate of Sustainability, emphasising CIB’s commitment to sustainable development.
The COO Area’s dynamic performance is and will always be built on our high caliber staff and their expertise. We reflect this philosophy through our structured hiring plan, tailored training, leadership development and setting talent management plans, and 2016 was no different. The aim is to build strong second lines with ideal qualifications for those tasked with our future development and leadership.
Going forward, we are embarking on a digitisation journey, which we believe is set to be the main player in shaping all future banking growth. The digital proposition will empower self-assisted sales and ongoing customer loyalty. Striving to support innovation led to a new partnership between the American University in Cairo (AUC) and CIB to launch AUC Venture Lab FinTech Accelerator to introduce new innovative products and solutions and groom and assist FinTechs to break into the finance sector.
Business Continuity Management & Information Security
The significant evolution of cyber security and its associated risks has necessitated an emphasis on ensuring a proper Security Management Program is in place to effectively manage security risks and guarantee the right governance is in place. Major efforts were funnelled into the cyber security/information security domain to ensure the Bank is fortified with the ability and scope to handle cyber security threats. As part of our 2016 roadmap, initiatives undertaken this year include the following:
- Establishing CIB’s Security Operations Centre, which will significantly boost its capability for monitoring and addressing a wide range of security threats in a proactive manner and build competent and capable Operational Security Services.
- A Fraud Management Solution was put in place to monitor monetary and non-monetary events on the consumer and corporate internet banking platforms, utilising customer behaviour mapping to minimise operational risks.
- The One-Time Password solution was implemented for critical internet banking services in accordance with the Bank’s strategy to ensure compliance with CBE internet banking regulations and improve security measures that protect customer transactions.
- A comprehensive security governance, risk and compliance framework was established along with the necessary policies that ensure adequate security governance across the Bank.
- Concrete steps were taken toward developing the requirements for Business Continuity Management (BCM) software to automate the full BCM life cycle. Effort went into guaranteeing the continuous testing of our recovery capabilities to ensure service availability for our customers. The Bank remains committed to investing in improving its BCM, bringing aboard a team of dedicated professionals in charge of the function.
In keeping with our efforts, CIB was awarded the Most Effective Recovery of the Year Award at the Business Continuity Institute Middle East Awards in 2016, marking the second Business Continuity Award for the Bank and our 10th nomination for similar awards regionally and globally. CIB was also named finalist this year for the International Award in Business Continuity by the UK’s CIR Magazine. The recognition emphasises CIB’s unique positioning in the BCM industry across the financial sector in Egypt.
CIB’s businesses provide integrated and diversified products and services through its affiliation with CI Capital and its other subsidiaries, which hold numerous opportunities for CIB and will accelerate our ability to increase product penetration with the aim of generating incremental value through cross-selling.
CI Capital generated consolidated net income of EGP 113 million, 85% over 2015. Brokerage net income recorded EGP 55.7 million, with a market share of 9.5% of total trading as of year-end 2016. CI Capital’s brokerage platform is complemented by an industry-leading research platform covering more than 75 companies across 11 sectors in seven markets, with a top-tier analyst team ranked sixth in MENA Research by the 2015 Extel Survey — second in the MENA region and first in Egypt.
CI Capital’s Investment Banking arm is the #1 ranked advisor in Egypt, with c. EGP 106 billion in transactions since inception and over EGP 72 billion executed since the beginning of 2013.
CI Asset Management had the best performing Egyptian equity funds of 2016. The Asset Management division manages fixed income, money market and equity products, with AUM in excess of EGP 9.9 billion. The division managed to position itself as a top-quartile asset manager in all types of funds and portfolios. In 2016, the division was awarded the “Best Asset Manager in Egypt” by Global Investors for the seventh consecutive year.
Continued Focus on Commercial Banking Activities
In line with the Bank’s strategy to gradually exit from its subsidiaries and affiliated investments, to enable CIB to focus exclusively on its core banking activities and enhance its leading position in the market, 2016 saw a continuation of that strategy where:
- CIB sold its full stake (40%) in Egypt Factors to the Company’s main shareholder FIM Bank in November 2016.
- In December 2016, the Bank signed sale and purchase agreements with a group of non-related Egyptian and Gulf investors for the sale of 71.94% of CI Capital Holding’s (“CI Capital”) share capital, for a total transaction value amounting to EGP 683.4 million, with a total company value of EGP 950 million. The transaction is expected to be finalised once all necessary regulatory approvals are obtained.
Awards and Recognition
CIB’s superior performance and distinction continued to receive recognition by many reputable organisations both on the regional and international levels. In 2016, the Bank received a total of 20 prestigious international awards, five of which were received for the first time, including:
- Best Bank in Egypt Supporting Women-Owned and Women-Run Businesses awarded by the American Chamber of Commerce in Egypt (AmCham)
- Best Private Bank in Egypt awarded by Global Finance
- Middle East Most Effective Recovery awarded by The Business Continuity Institute
- Achievement in Operational and Liquidity Risk Management Awards for 2016 by The Asian Banker
- FTSE4Good Emerging Index Status and ESG Rating: Based on an assessment of CIB’s ESG practices and performance over April 2015-February 2016, the Bank became a constituent of the FTSE4Good Emerging Index 2016
The list of 2016 awards also includes:
- Best Trade Finance Provider in Egypt - Global Finance
- Best Treasury and Cash Management Providers in Egypt - Global Finance
- Best Bank in Egypt - Global Finance
- Best Foreign Exchange Providers in Egypt - Global Finance
- Best Sub-custodian Bank in Egypt - Global Finance
- Best Employee Engagement Initiative in the Middle East - Asian Banker
- Best Retail Risk Management Initiative in the Middle East - Asian Banker
- Best Bank in Egypt - Excellence Award - Euromoney
- Most Active Issuing Bank in Egypt in 2015 - The European Bank for Reconstruction and Development
- Best Cash Management Services in North Africa - EMEA Finance
- Best FX Services in North Africa - EMEA Finance
- Best Bank in Egypt - EMEA Finance
- Bank of the Year in Egypt - The Banker
2017 Business Outlook
While we expect continued challenges in the economic environment in 2017, we are confident that the changes under way across the Bank, including those focused on improving productivity and enhancing mobile and digital technology capability and offerings, will underpin continuing strong performance. Our diverse business mix and franchise model — centred around sustainable growth —readies CIB to meet today’s ongoing challenges and welcomes the opportunities at hand.
We approach 2017 with cautious optimism, tempered by sound governance and discipline. We look forward to building on our proven business model, expanding our relationships with current and new customers and maintaining our conservative approach towards liquidity, capital, expense and risk management. We are confident that we will keep driving positive results, continue to expand our market share and deliver exceptional customer experience.
Moving forward, we are focused on adapting and innovating. We see technology as an essential core competency and a key differentiator to drive future growth in all our business segments. New technologies provide us with opportunities to extend our leadership position in service and convenience. We will continue to invest in technology and tools that will allow CIB customers to engage across every channel — at branches, the call centre, automated bank machines and our phone, online and mobile platforms. Behind all of this is our people. Their understanding of the banking business — what we do and how we do it — combined with their passion and commitment to live up to our brand is why CIB will continue to grow and deliver results. They are why CIB is and always will continue to be “A Bank to Trust.”
Commitment to Sustainability
CIB knows its responsibilities to all its stakeholders, listens to them carefully and grows based on a transparent, clear and responsible approach. While moving forward, CIB aims to create not just economic value, but also a permanent value to the lives of all its stakeholders, with a philosophy of, “Grow and help others grow.”
The Bank has always strived to strike a sound balance between the strategic goal of increased profitability and serving broader socioeconomic and environmental interests — the backbone of any sustainable success and distinction.
The main aspects that shape our focus on sustainable banking are:
- Environmental Sustainability: Minimising the environmental and social impacts of the Bank’s activities, products and services.
- Corporate Social Responsibility: Playing an active role in establishing high standards for social development, with creating value for society being the main goal.
- Corporate Governance: Commitment to corporate governance best practices, ethics and corporate values.
As the pursuit of sustainability becomes a key focus of leading financial institutions, CIB is embracing sustainability by integrating the ideology in its policies, practices, culture and mindset as well as its vision and mission statements.
CIB’s thinking, course of action and its promising green journey of transformation and change are closely aligned with the 2030 Global Sustainable Development Agenda, its 16 Sustainable Development Goals (SDGs) and associated 169 targets and with Egypt’s 2030 Agenda. The underlying focus is to advance a sustainable and climate-resilient future.
CIB is not only employing different clean energy systems at its premises but also conforms to green construction standards to benefit the environment and accommodate staff members and customers.
Despite the fact that most banks and their associated businesses are paper dependant, CIB succeeded in tremendously decreasing its volume of paper requisition and consumption. Furthermore, CIB is a pioneer in implementing a waste-segregation process and exchanging waste for cash via sales to the appropriate recycling outlets.
CIB also approved the activation of ride-sharing application Carpooling to encourage its staff members to streamline their fuel expenses, build team camaraderie and encourage fewer cars, and therefore fewer emissions, on the road. The Bank also accommodates the special needs’ community through digital banking channels, the introduction of ATM machines for the visually impaired and conducting training for branch staff on communication with individuals with disabilities.
Communicating, sharing our practices and partnering with international entities around the world, CIB was the first and only bank in Egypt to join the United Nations Environment Programme Finance Initiative (UNEP FI) through signing the UNEP FI Statement of Commitment on Sustainable Development. Furthermore, CIB engaged in Dow Jones 2016’s sustainability assessment exercise, ranking 79 out of 131 globally recognised financial entities. CIB was the only Egyptian bank in the MENA region to participate in this assessment and is committed to improve its ranking in 2017.
CIB is committed to enthusiastically dive into the most pressing sustainable priorities, building on the SDGs and Paris Climate Agreement signed by Egypt in mid-2016. It is a crystal-clear reality that sustainability is a key focus of healthy and reputable financial institutions. Therefore, CIB pledges to continue its work towards a green economy through partnering with the government, civil society and others.
One of several new paths being charted by CIB is that a growing number of startups and entrepreneurs are working on impressive alternative energy solutions and innovations in green finance. CIB is confident in Egypt’s youth, seeing them as the architects of the future with the wisdom and natural inclination for change.
Corporate Social Responsibility
At CIB, we take our social responsibility towards the community where we live and operate very seriously. Our CSR programs provide our business with the vital components to operate both responsibly and ethically. Being a socially responsible corporate has always come atop our priorities, as is evident from the numerous community programs we have been involved in throughout the year.
Over the last 12 months, CIB maintained its steadfast commitment to community development through diverse categories of CSR projects in the fields of art, culture and sport. Some of the activities we conducted during 2016 include:
Student Cultural Trip to Cairo Opera House: In association with “Friends of The Opera” association, CIB organised a cultural trip for 400 students from different public schools to attend Sergei Prokofiev’s composition “Peter and the Wolf” performed by the Cairo Symphony Orchestra at the Cairo Opera House. The trip aimed to promote and nurture musical appreciation in the children.
KidZania: Throughout its partnership with KidZania, which began in 2013, CIB has been organising trips to the edutainment city for underprivileged children. Over the past 12 months, CIB organised four trips for 100 children with special needs, serious health conditions and those from underprivileged backgrounds to KidZania, under the supervision of the CIB Foundation. At KidZania, children perform simulated jobs and are paid for their work as firefighters, doctors, police officers, journalists and the like. CIB’s partnership with KidZania has also been a chance to raise banking awareness in the youth. The Bank has a mini-branch on the premises that allows children to perform different bank operations like writing cheques, issuing debit cards and depositing or withdrawing KidZos, the official currency of KidZania, from ATMs around the venue.
Autism: Children with autism and other disabilities have always been given the highest priority on CIB’s CSR agenda. This has been reflected in our long-term partnership with the ADVANCE Society for Persons with Autism and Other Disabilities and the Bank’s continuous contributions to its activities. In 2016, CIB continued to sponsor the society’s annual ceremony, which showcased rhythmic musical compositions performed by students. The concert serves as a platform from which awareness can be raised about the creative and expressive skills of children with disabilities, supporting their integration into society. Moreover, the Bank sponsored 2016’s World Autism Awareness Day (WAAD) in Egypt, held annually in April worldwide, which witnessed the participation of more than 75 organisations specialised in the provision of services to those with learning disabilities and autism across the country.
Zawya: Through CIB’s partnership with Zawya, an art-house cinema founded by Misr International Films (MIF), the Bank sponsored the screening of animated film “Hotel Transylvania 2” with live audio description for more than 150 visually-impaired children from the schools of Taha Hussein, Mostafa Assaker and Alnour Wal Amal, in addition to the Fagr El Tanweer Association and Al-Markaz Al-Namoozagy for the Blind.
El Sawy Culture Wheel: In 2016, the Bank capitalised on 2015’s successful awareness campaign entitled “Financial Planning for Safer Future” and launched a second round of free seminars under the theme “Financial Inclusion.” CIB also continued its sponsorship of special screenings of documentary films, cultural nights, concerts and art exhibitions organised by El Sawy Culture Wheel.
Beena Initiative: CIB is the main partner and funder of “Beena”, a protocol signed with the Social Solidarity Ministry to encourage the active participation of youth in society, and to support and monitor the development of social care services. The initiative succeeded in attracting thousands of volunteers across Egypt, who implemented an effective mechanism for developing and monitoring the quality of services provided to different social care centres, such as orphanages, elderly homes and special-needs houses, a segment of society that is in dire need of adequate care and higher-quality services.
Sponsoring Art: Supporting art remains the core of CIB’s CSR agenda. We work to ensure the diversification of our channels to reach out to distinctive art talents across Egypt and into as many categories as possible. CIB’s numerous and varied art-centric sponsorships and activities led to the significant enrichment of the Bank’s private art collection.
Supporting Students of Fine Arts Faculties: The Bank continued to pave the way for more art students to realise their talents and receive adequate recognition for their art. This year, CIB extended its reach across Egyptian universities by adding the newly inaugurated Fine Arts Faculty at Al-Mansoura University to its agenda, sponsoring the first ever art exhibition held at the premises for senior students and fresh graduates. CIB’s reach included the acquisition of participants’ distinctive pieces, adding them to our private art collection to incentivise the young talents. Similarly, the Bank sponsored for the second consecutive year the art exhibitions of the faculties of Fine Arts at Alexandria, Minya and South Valley universities, targeting the same age range of young artists.
Art Exhibitions: This year, CIB developed its already expansive strategy of supporting art exhibitions by extending support to individual exhibitions by young artists. The Bank acquired the finest pieces displayed at each exhibition to enrich its private art collection.
Cairo Symposium: Maintaining its exclusive position as the only bank in Egypt sponsoring every category of fine arts, CIB sponsored the second edition of the Cairo Symposium for Carving Iron Scrap, which was held in April 2016 at Mohamed Mahmoud Khalil Museum. The Bank has been sponsoring this magnificent art event since its launch in 2013 and acquired distinctive pieces added to CIB’s private art collection.
Art Salons: For the sixth consecutive year, CIB sponsored the annual Egyptian Youth Salon in collaboration with the Fine Arts Division at the Egyptian Culture Ministry support trending artists under the age of 35. CIB also sponsored for the second consecutive year the Upper Egypt Salon, which was held in Luxor in November 2016, in collaboration with South Valley University’s Faculty of Fine Arts. This not only extended the Bank’s geographical reach to untapped areas of Upper Egypt, but gave artists of various age brackets the opportunity to display their creative works.
Sponsoring the Egyptian Squash Federation: For more than five years, CIB has been sponsoring the Egyptian Squash Federation as part of the Bank’s belief that sports are an integral facet of shaping the minds and health of Egyptian youth. The Bank continued its support this year of young, talented athletes who represent the country in regional and international arenas. In 2016, the Bank further expanded this support to include less-fortunate children by launching the “Squash for Everyone” Initiative in partnership with Egyptian Squash National Teams Director & Technical Advisor Amr Shabana. The initiative, supported by CIB Foundation and held in association with the Egyptian Red Crescent and Logain Foundation, aims to give underprivileged children and those with special needs access to sports facilities and to let them explore and develop their athletic capabilities.
Al Ahram Squash Open: CIB was proudly the exclusive bank for the tournament, which aimed at reviving the Al Ahram Squash Open that was suspended for the last 10 years.
Partnering with Omar Samra: This year, CIB introduced the new “Your Space” initiative in the context of its partnership with Egyptian entrepreneur Omar Samra, which aims to develop the scientific talents of Egyptian youth. This initiative represents an innovative experience to promote the culture of space sciences among students at schools and universities. The objective is to stimulate the development of engineering, sciences, technology and mathematics curriculums and motivate students’ interests to explore the sciences of space, making it their future professional choice. In this regard, different special contests, such as designing a spaceship or a city for humans on another planet or on the moon, were organised for students to compete and excel.
2016 was another strong year for the CIB Foundation. The organisation reaffirmed its position as a leading supporter of quality health services for children by growing and expanding across the country and especially in Upper Egypt. In acknowledgment of the sustainable impact it instills in the community, the CIB Foundation was recognised for its work in the arena of corporate social responsibility from African Banker, winning the award for “Socially Responsible Bank of the Year in May 2016.” Among the numerous projects that the CIB Foundation supports was providing Children’s Cancer Hospital 57357 with a PET CT scanner at a cost of EGP 13.17 million. The highly specialised equipment will allow doctors and surgeons to less-invasively identify and plan for the removal of cancerous cells. This piece of equipment will also reduce the level of radiation patients are exposed to.
In partnership with Gozour Foundation for Development, the CIB Foundation supported the funding of 264 eye exam caravans in public elementary schools in several governorates across Egypt, which included Qena, Sohag, Aswan, Luxor. Through the “6/6 Eye Exam Caravan” program, the Foundation provides 158,400 disadvantaged students with free eye exams and necessary care and consultation by the end of the project.
Moreover, it has supported the complete renovation and outfitting of the Abu El Rish El Mounira Children’s Hospital’s intensive care unit under the supervision and management of Friends of Abu El Rish Children’s Hospitals Organization. The project would help to save the lives of nearly 2,000 children annually. Additionally, the Foundation has equipped a paediatric catheter lab at the Ain Shams University Hospital, under the supervision and management of the Yahiya Arafa Foundation, allowing the hospital to separate adult and paediatric patients, conduct 100 procedures per month and reduce the waiting list by 90%.
The Foundation also supported the Department of Radiology at the National Cancer Institute with a paediatric Computed Tomographic (CT) scan machine. The dedicated piece of equipment will allow the department to increase the number of urgent cases it can take in daily, decrease mortality and morbidity rates as early diagnosis rates climb and eliminate the paediatric waiting list.
In addition, the Foundation has covered the costs of 50 paediatric open-heart surgeries at the Magdi Yacoub Heart Foundation Center and approximately 10 paediatric burn patient surgeries at the Ahl Masr Foundation.
The Foundation also continues to bear the maintenance costs of all the projects it has carried out since its inception to ensure the continuity and sustainability of the desired health services quality.
CIB believes that effective corporate governance practices are essential to achieving and maintaining public trust and confidence in the banking system, which are critical to the proper functioning of the banking sector and economy as a whole. Stemming from that belief, the Bank has had long-standing commitment to promoting sound corporate governance practices across the organisation and has consistently and proactively worked on enhancing our corporate governance frameworks and actively amending any corporate governance shortcomings that may arise. Accordingly, CIB continually adjusts to conform to relevant regulatory requirements and duly considers international best practices in corporate governance.
The core principles of our corporate governance policies, which we view as key for managing the Bank effectively and achieving its strategic operational plans, goals and objectives for sustainable banking, are centred around the following notions:
- Responsibility and meritocracy — the clear division and delegation of authority;
- Accountability in the relationships between management and the Board, and between the Board and the shareholders and other stakeholders;
- Disclosure and transparency to enable stakeholders to assess the Bank’s financial performance and position; and
- Fairness in the treatment of all stakeholders.
CIB’s overall corporate governance framework assures the alignment of the interests of shareholders and managers as well as monitoring the management of the business through the dissemination of information and transparent reporting. In this context, the Bank’s governance framework is directed by a number of internal policies and regulations that cover a wide range of business and fiduciary aspects including risk management, compliance, audit, remuneration, evaluation, succession planning, ethics and conduct, budgeting and capital management.
Clear and segregated reporting lines in different areas of the Bank along with a continuous chain of supervision and communication channels for the Board’s guidance and strategy are a vital component of the Bank’s governance structure to highlight any potential conflict of interest. With regard to the respective roles of the Board and Senior Management, the Board approves the Bank’s strategic goals, as well as oversees the management of the Bank, while the day-to-day operation of the Bank is the responsibility of Senior Management. The Managing Director along with the excellent and competent CIB Chief Executives and Management Team bring decades of experience and thought leadership that guide CIB’s direction and execution of the strategies set by the Board in addition to overseeing the day-to-day tasks of managing the Bank. While directing this effort, the Managing Director is also responsible for ensuring adequate and effective governance of the Bank through managing the independent control functions: risk, compliance and legal. The CIB Chief executives report to the Board directly.
The Board and its specialised committees, both executive and non-executive, constitute key elements of the governance framework and are governed by well-defined charters. The Board’s non-executive committees — consisting of the Audit Committee, Corporate Governance and Compensation Committee, Risk Committee, Operations and IT Committee and Sustainability Advisory Board, along with the executive committees comprising of the Management Committee, High Lending and Investment Committee and Affiliate Committee — are tasked with assisting the Board in accomplishing their responsibilities and obligations with respect to their decision-making roles.
CIB’s Board consists of eight members, one executive and seven non-executive, one of whom represents Fairfax’s interest in CIB, with three of the non-executive members being independent. The Board collectively possesses a wide range of industry expertise and knowledge that adequately enables it to set balanced strategic direction and to offer management a clear implementation route for aspired goals.
CIB’s Board met seven times over the course of 2016, during which, with the assistance of its committees, it effectively fulfilled its main responsibility of exerting the requisite oversight over the Bank and ensured that CIB’s activities are run in a manner that meets the highest ethical and fiduciary standards, thus enhancing the long-term value for the shareholders, through:
- Approving the Bank’s business and risk strategy as well as major policy decisions.
- Supervising the affairs of the Bank and overseeing the execution of its strategy by the officers and employees under the direction of the CEO.
- Assuring the long–term interests of the shareholders are advanced responsibly as well as guaranteeing the disclosure of reliable and timely information to shareholders.
- Evaluating, compensating and ensuring that there is proper succession for key management roles.
- Developing and monitoring the Bank’s internal audit and risk management policies and strategies. The Board sets the risk policies and the risk appetite and constantly monitors the Bank’s risk profile against said appetite through the CIB Risk Department.
CI Capital generated consolidated net income of EGP 113 million during the year, 85% over 2015.
Furthermore, the Board of Directors continued to work on enhancing the comprehensiveness of the Bank’s corporate governance framework especially in connection with risk and compliance matters. In an effort to reinforce its risk-based approach, the Board is moving towards an Enterprise Risk Management (ERM) Framework. CIB’s enterprise risk monitoring and reporting are critical components that support Senior Management and the Board’s ability to effectively perform their risk management and oversight responsibilities. The ERM concept thus provides the Bank with the necessary controls, communication and risk-informed decision-making to achieve the right balance between risk and reward.
CIB has taken concrete steps to ensure accountability and institutionalise its corporate governance guidelines in compliance with the applicable laws and regulations of the regulators. During the central bank’s regular audit missions, CIB’s management ensures that the auditors are provided with all the necessary documents to fully perform their audits. CIB’s Internal Audit team closely follows up with the Bank’s management to take all corrective measures with regards to the central bank’s audit comments. Furthermore, given the utmost attention to maintaining the highest levels of governance and adherence to the disclosure requirements of the stock exchanges where the Bank is listed, CIB’s Investor Relations team is committed to consistently sharing high-quality information with all stakeholders regarding the Bank’s activities, with emphasis on transparency.
Finally, and with the objective of continuously improving Compliance measures as a key element of the Bank’s control framework, several channels for staff issues/code of conduct and petitions have been introduced and announced to employees.
The Staff Issues Committee was initiated in 2011 as a communication channel for employees to express their queries, complaints and any work-related issues to an unbiased body. The committee’s role extends from dealing and solving customer complaints to setting recommendations to enhance the work environment and processes as well as ensuring an engaging workplace.
In 2016, 51 cases were presented to the Staff Issues Committee. These cases included performance disagreements, violation to the code of conduct, working environment issues, misuse of authority, termination of contracts and request for extending unpaid leave. The issues raised to the committee have been thoroughly investigated and analysed where fair and sound decisions have been taken and all cases have since been resolved.
In Closing: Measuring CIB’s Performance in 2016
Through our performance measures, we communicate our priorities and benchmark CIB’s performance versus its peers as we strive to be “A Bank to Trust.” The following table highlights our performance against these measures.
|2016 Performance Measures||Results|
SAFEGUARDING THE INTERESTS OF SHAREHOLDERS
CIB maintains a proactive investor relations program to keep shareholders abreast of developments that could have had an impact on the Bank’s performance. The Investor Relations team and Senior Management invest significant time in one-on-one meetings, road shows, investor conferences, conference calls and a proactive stream of disclosures while simultaneously ensuring analysts had the information they needed to maintain balanced coverage of the Bank’s shares