Grupo Cibest S.A. Q4 FY2025 earnings call

• Economic improvement with inflation down to 12%, 725 basis points rate cuts, and EGP strengthening.
• Loan growth of EGP 177 billion, top line and balance sheet growth at 19%.
• NIM maintained at 8.95% with deposit growth supporting margins.
• Credit quality solid with NPLs at 1.67% and coverage ratio 358%.
• Net profit after tax at EGP 82.2 billion, 49% above 2024.
• Digital bank application submitted, aiming for launch by end of 2026, with potential to contribute 10% to revenues by year 5.
• Cost-to-income at 15%, and CAR at 27%.

CIB saw significant growth in 4Q 2025. Loans grew by EGP 177 billion (44%), with 56% in local currency and 50% as CapEx. Gross loans reached EGP 576 billion, LDR 52%, local currency portion at 71%. Top line grew 19%, balance sheet growth 19%. NIM maintained at 8.95% despite 725 basis point rate cuts, with deposits growing 14% (local currency deposits 21%, CASA at 61% of total deposits). Credit quality solid, NPLs at 1.67% with coverage ratio 358%. Net profit after tax was EGP 82.2 billion, 49% above 2024. CAR reached 27%, and a cash dividend of EGP 6 per share proposed.

• Expect 15%-20% growth in bottom line above EGP 70.6 billion.
• 15%-20% deposit growth with 50%-60% from CASA.
• 30%-35% loan growth expected.
• ROE above 30% projected.
• Digital bank to launch by end of 2026, contributing 10% to revenues by year 5.
• Potential capital increase and expansion into other markets in medium term.

• Worldwide economic trends.
• Economic and political climates of Egypt, Middle East.
• Changes in business strategy.
• Exchange rate and monetary policy risks affecting balance sheet and capital adequacy.

Q: On fee income, was the 4Q increase a one-off and will it sustain?

A: Yes, there was a one-off of EGP 1.5 billion from asset sale, but expect growth from core commercial banking activities with loan growth.

Q: When can we expect the digital bank launch and its contribution?

A: Applied for license, aiming to launch by end of 2026, contributing 10% to revenues by year 5.

Q: On ECL provision reversals, when can they be used for distribution?

A: Undergoing studies, confident regulator may allow release into capital, leaving scope for potential payout increase.

Q: On NIM sensitivity to rate cuts?

A: Gradual compression expected due to CASA composition and sovereign portfolio structure, with foreign currency lending as low-hanging fruit for NIM expansion.