CIB continues to hold the highest weight on the EGX30, accounting for 36.78% of the index.
Since the Bank began offering its shares to the public in 1995, it has become the biggest constituent on the Egyptian Exchange (EGX). Investors and analysts view CIB’s stock as a proxy for the Egyptian market, with the Bank acting as a mirror for the local banking sector. The economy’s growth prospects are generally depicted in the credit outlook, while retail banking is seen as portraying the longer-term story of financial inclusion. In 1996, CIB became the first Egyptian bank to offer its shares on international markets, with a GDR program on the London Stock Exchange (LSE). In 2001, CIB marked another first by being the first Egyptian bank to register its shares on the NYSE in the form of ADR Level 1 program. In 2012, the Bank began trading on OTCQX International Premier, a segment of the OTCQX marketplace reserved for international-leading, non-US companies listed on a qualified international exchange and providing their home country disclosure to US investors.
Throughout 2021, Egypt’s stock market faced major challenges, both on the macroeconomic side, impacted by COVID-19, and on the regulatory front, shedding light on COMI’s performance as well. COMI kicked off the year with an open price of EGP 44.3 and ended it at EGP 52.81, a 19.2% y-o-y change. As of August 2021, a stock dividend was distributed, on which one free share was dispersed for every three shares held by a shareholder. This led to an increase in the number of shares to 1,970,241,790 from 1,477,681,340. Capital eventually reached 19,702,417,900, up from 14,776,813,400.
The main highlight of 2021 is COMI’s price surpassing the dip that occurred in October 2020, reaching a peak of EGP 54.15 in November 2021 vs. EGP 50 in October 2020, a c.8% increase. In 2021, CIB’s price reached a trough of EGP 36.6. The average VWAP during the year was EGP 45.50, with an average daily volume of more than 2 million shares and an average market capitalization of EGP 89.665 billion. CIB is widely covered by leading research houses, both locally and internationally; 19 institutions regularly issued research reports on the bank during 2021.
By year-end, the Bank’s GDR outstanding position reached 439,905,231 shares, representing 22.3% of issued shares, and its ADR outstanding position recorded 23,873,987 shares, representing 1.2% of issued shares. CIB continues to hold the highest weight on the EGX30, accounting for 36.78% of the index, and the highest free float at 93.5%. CIB’s stock is one of Egypt’s most liquid stocks, as it is considered the most valuable financial institution.
The Bank’s Investor Relations (IR) division maintains a proactive investor relations program to keep shareholders and investors abreast of developments impacting the Bank’s performance. The team and senior management alike dedicate significant time to one-on-one meetings, road shows, investor conferences, and conference calls, sparing no effort in providing the investment community with transparent disclosures while simultaneously ensuring analysts have the information they need to maintain a balanced coverage of the Bank’s shares.
Throughout 2021, the Bank’s Investor Relations (IR) division dedicated its efforts to accommodate all conferences and calls to which CIB was invited. The team attended 14 virtual conferences, roadshows, and forums, and it accommodated 157 meetings. It met with 405 companies and 571 investors/ analysts incorporating a wide range of international, regional, and local institutions. Toward the end of 2021, six funds visited Egypt and met with CIB at its headquarters.
During the year, disclosures, including regular updates and releases, continued to be periodically made available on CIB’s IR website, as well as the EGX, LSE, and OTCQX portals in a timely manner that ensures fair access to information for investors from around the world, allowing them to make informed investment decisions. Thanks to the team’s continued efforts to further enhance the program, CIB was awarded the Leading Corporate for Investor Relations in Egypt in MENA’s largest investor relations event, which was organized by the Middle East Investor Relations Association (MEIRA) in partnership with Extel. This is the eighth consecutive year in which CIB receives at least one award from MEIRA.