Cventures
CVentures invests in fast moving, forward-thinking founders with deep market insights and a long-term commitment to building successful businesses. CVentures is focused on achieving above average financial returns through equity investments in early-stage tech startups, in addition to supporting and complementing CIB’s innovation agenda, financial inclusion strategy, and digital expansion efforts whenever possible.
2021 Highlights
In 2021, CVentures strengthened its Board of Directors and Investment Committee by bringing in top tier venture capital expertise to further align its investment activities with industry norms. Capitalizing on the consistent evolution of the Egyptian startup ecosystem, CVentures also refined its investment thesis and focused its investment activities on its home market. Moreover, the company widened its vertical focus beyond FinTech in order to capture the growing opportunities in verticals, such as e-commerce, health-tech, agri-tech, and other verticals that are perceived to have high potential. In a short period, the company was able to successfully build a robust pipeline of potential investment targets in preparation for expanding its footprint and achieving its target of being the CVC of choice in the Egyptian market
2022 Forward-Looking Strategy
In addition to continuing to focus on complementing CIB’s innovation agenda, CVentures remains focused on actively growing its portfolio while targeting above industry-average returns and expanding its footprint, primarily in the Egyptian ecosystem.
Mayfair CIB Bank Limited (MCIB)
Established in 2017, Kenya’s Mayfair CIB Bank (MCIB), formerly known as Mayfair Bank Kenya, has five branches in Nairobi, Eldoret, and Mombasa, making it Kenya’s fourth smallest lender. In April 2020, CIB acquired 51% of the bank, marking CIB’s first cross‐ border acquisition into Sub‐Saharan Africa. CIB’s strategy for MCIB focuses on trade finance activities and digital banking solutions, particularly growing the Egypt-Kenya trade corridor, enabling Egyptian large corporates and SMEs to do business in the hub of Eastern Africa.
The Bank’s niche market is large- and medium-sized corporates, and high net worth individuals.
2021 Highlights
As of 30 September, the bank’s total capital and core capital stood at KES 4.069 billion (USD 37.6 million), against a minimum core capital threshold of KES 1 billion (USD 9.3 million). Both the total capital and core capital in relation to risk weighted assets stood at 38%, against a regulatory minimum of 10.5% and 14.5% respectively, reflecting that the bank was adequately capitalized.
MCIB broke even in 2021 and recorded Profit After Tax (PAT) of KES 36.57 million as at 30 September, compared to a loss of KES 379.27 million as at end of 2020 and beating the previously projected PAT figure of KES 11.54 million for the same period.
Trade finance income surged by 300% compared to the year-end 2020, from KES 5.60 million to KES 19.78 million, in line with the bank’s strategy to focus on trade finance activity.
The liquidity ratio stood at 78%, against a statutory floor of 20%, echoing prudent growth in direct lending due to the impact of COVID-19 on various economic sectors. The bank has been disposing of excess liquidity in government securities.
Loan Portfolio at Risk decreased from 14.1% as at end of 2020 to 8.7% as at September 30. Meanwhile, the Non-Performing Loans ratio stood at only 3.96%, reflecting the bank’s prudent Risk Management Strategy in enhancing the quality of loan portfolio.
MCIB’s Risk Governance Framework is characterized by active Board and Senior Management oversight, adequate policies, procedures, charters, and terms of reference and MIS reporting, with the BOD having ultimate responsibility over the Risk Management Framework.
As part of leveraging on group synergies between Mayfair CIB Bank and the parent bank, CIB has provided support to Mayfair CIB in various areas, such as Financial Institutions, Operations and Shared Services, Compliance, Credit Risk, Human Resources, Information Technology and Security, and Resilience Management.
Falcon Group
Established in 2006 as a joint venture between CIB the CIB Employees Fund, Al-Ahly for Marketing, and other private entities, Falcon Group management’s strategy is centered on service excellence. The company provides state-of-the-art, holistic solutions tailored to every client, such as security, money transfers, technical systems and security products, public services and project management, and tourism and concierge services to a variety of industries, such as the industrial, commercial, tourism, and public sectors. Its key strength lies in its single-point-ofcontact solutions that ensure it provides consistent services at the highest quality, lowest risk, and with great flexibility at a reasonable cost.
Falcon for Security Services
Falcon for Security Services has been the main security service provider for several top-tier governmental and non-governmental organizations, such as the United Nations and a number of embassies in Egypt. With a portfolio of over 754 clients, the company provides a myriad of services, such as property protection, event security, corporate security and training, personal protection, and safety and industrial training to some of the biggest companies in Egypt.
2021 Highlights
Falcon for Security Services achieved its 2021 goal of working with numerous prominent institutions and added new clients to its clientele, such as Egyptian Co. For Metro Management and Operation (METRO), securing several projects, such as Tahrir Square, Alamein University, GlobeMed Egypt for Healthcare, Galala University, and King Salman University. It entered into new securing contracts with Royal City compound, Console Masters Company (Mamsha Ahl Masr), and the Sovereign Fund of Egypt. The company also secured numerous public events in 2021, including the Egypt Defense EXPO, and organized the Aswan International Women’s Film Festival.
2022 Forward-looking Strategy
Falcon for Security Services continuously works to increase its market share y-o-y. In 2022, the Group plans to expand its market presence and work to maintain its market leadership by growing both organically and through acquisitions. As part of the Group’s goal of providing top-notch solutions, Falcon plans to use managed service providers for its activities. The Group also expects to target prominent institutions and clients to add to its roster, while simultaneously expanding its product and service offering to ensure clients remain fully satisfied and confident in the company as the number one choice for efficiency and customer service.
Falcon for Public Services and Project Management
Falcon for Public Services and Project Management operates all facility systems to the comfort and satisfaction of facility occupants. The company offers general cleaning, landscaping, façade cleaning, and marble polishing at the highest quality, efficiency, and cost effectiveness. Falcon for Public Services and Project Management holds a market share of 20%, serving a large client base.
2021 Highlights
Through considerable efforts to build solid relationships and gain the trust and confidence of public and private institutions, the company signed on several new clients, such as Galala University, Alamein University, and King Salman University. It also renewed important contracts, such as with the Port Said Security Directorate, the Embassy of the Sultanate of Oman, and the Social and Healthcare Improvement Fund for Police Staff.
2022 Forward-looking Strategy
The company’s strategy is based on the firm belief that performance is measured by its clients’ success. Over the next year, the company plans to sign several sizeable contracts with new customers.
Falcon for Cash in Transit Services
Falcon’s Cash in Transit division works with reputable banks and companies in Egypt, providing CIT services, ATM replenishment, maintenance, vaulting, cash management, and valuables transportation through a highly qualified team.
Falcon Tech
Falcon Tech designs, implements, and maintains all integrated electronic systems in the field of technical security for facilities and individuals.
2021 Highlights
Falcon Tech expanded its market share during the year, signing several new contracts to provide security systems to airports, commercial malls, and universities. Among its new clients were the Ministry of Defense, new CIB branches, Egypt Post for Investment, Cairo Airport Company (maintenance and supply contract), Egyptian Airport Company (maintenance and supply contract), and the Ministry of Interior’s Department of Technical Assistance (maintenance contract).
Falcon for PR and Communications (Tawasul)
Falcon for PR and Communications (Tawasul) specializes in communication services and constancy, as well as event and conference management, and it also offers media services.
Fawry Plus
Fawry Plus was established in 2017 as a joint venture between CIB, Banque Misr, Fawry, and ACIS to become Egypt’s first banking agent and forerunner in the nation’s strategy to achieve financial inclusion. Fawry Plus seeks to provide a wide array of banking and financial services to consumers and businesses through a network of retail branches across Egypt, with a focus on urban and underserved regions. Fawry Plus branches provide banking services, including limited KYC services and a document collection service for mobile wallet registration, prepaid, credit card issuance, and loan issuance. Other services include mail and bank correspondence collection, loan and credit card payments, cash withdrawals and deposits, as well as various bill payments, including utilities, telecom, subscription fees, taxes, and fines.
2021 Highlights
In 2021, Fawry Plus opened an additional 80 branches, bringing the total number of operating branches to 160, and it signed an agreement to triple the number of branches by using a shop-in-shop model that will allow consumers even easier access to the business. It also witnessed a growth of more than 66% in revenues because of this expansion in operations. Fawry Plus also partnered with several banks and received CBE approvals to introduce the Meeza prepaid card KYC service and international remittance disbursement service, in addition to the wallet registration services, expanding the portfolio of agent banking services.
2022 Strategy – Way forward
Fawry Plus seeks to become the banking destination of choice for customers in 2022. Therefore, the company looks to increase the number of its branches to cover all governorates, attracting customers through the convenience of its branches, which are less crowded, more accessible, and operate longer working hours than banks (seven days a week). The company will also seek to expand its scope of services through a multitude of avenues. Looking to have partnerships with some of Egypt’s leading banks, financial institutions, and industry players to offer their services through Fawry Plus. In addition, it will focus on serving the e-commerce industry through offering cash management and logistics solutions, including setting up branches as drop-off/pick-up stations. Fawry Plus will always aim to double their cash management services each year.