Grupo Cibest S.A. Q3 FY2025 earnings call

• Macroeconomic environment: Inflation dropped to 12%, policy rate cut to 21.5%, EGP stable with consistent foreign currency availability supported by remittances, tourism, and exports.
• Financial performance: Robust loan growth, strong deposit gathering with CASA increase, resilient NIMs despite rate cuts, controlled costs, and a one-time provision release enhancing profitability.
• Global Markets: Disciplined growth in quality assets, trade finance volume up over 30% year-over-year, and synergies across integrated markets platforms contributing to recurring fees.

CIB's 3Q '25 results showed strong financial performance. Loans grew by around EGP 119 billion, a 30% increase, with local currency loans up 38% and foreign currency loans up 17%. Corporate loans grew by 34%, with 40% coming from CapEx and 25.4% to SMEs. Total deposits reached EGP 1.04 trillion, up 8% (EGP 75.3 billion) year-to-date, with CASA to total deposits rising from 55% to 60%. The loan-to-deposit ratio was 49.7%, up from 39.4% the previous year, with the local currency portion at 66.6%. Local currency NIMs were 13%. Costs were controlled with a cost-to-income ratio of 14.3%. A one-time release of EGP 13.1 billion in provisions was recorded, resulting in 9-month profits of EGP 62.1 billion (adjusted to EGP 50.5 billion after the provision release). The bank maintained a strong capital position with a CAR of 30% and CET1 ratio of 26%.

• Loan growth: Blended loan growth expected to be between 20%-25% in 2025, with local currency growing at a higher pace and foreign currency showing single-digit growth due to prepayments.
• NIMs: Blended NIMs expected to remain flat compared to 2024 at around 9% for the full year 2025.
• Deposits: Anticipated 10%-15% growth in deposits for 2025, with most growth coming from CASA (current and savings accounts), targeting 55%-60% of new deposits from CASA.
• ROE: Normalized ROE expected to remain well above the 37% mark.

• Economic and political uncertainties in Egypt, the Middle East, and worldwide could impact results.
• Changes in business strategy may lead to material differences in actual performance from forward-looking statements.
• Ongoing adjustments to the ECL model and Central Bank instructions require continuous monitoring, with potential future model adjustments.