Credit Agricole Egypt PRESENTATION INVESTORS · CREDIT AGRICOLE EGYPT INVESTOR PRESENTATION Kepler Cheuvreux Conference, Egyptian Days in Paris, 15-16 October 2015 . Page 2 Disclaimer

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CREDIT AGRICOLE EGYPT INVESTOR PRESENTATION

Kepler Cheuvreux Conference, Egyptian Days in Paris, 15-16 October 2015

Page 2

Disclaimer

This document has been prepared by Crédit Agricole Egypt and is confidential and is not to be reproduced by any person, nor to be forwarded or distributed to any person other than its original recipient. Failure to comply with this directive may result in a violation of the Securities Act of 1933, as amended (the Securities Act), or the applicable laws of other jurisdictions. None of Crédit Agricole Egypt or its affiliates, advisers, dealers or representatives takes any responsibility for the use of these materials by any person.

The information contained in this document has not been independently verified. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of Crédit Agricole Egypt or its affiliates, advisers, dealers or representatives, or any other person, shall have any liability whatsoever (in negligence or otherwise) for any loss arising from any use of this document or its contents or otherwise arising in connection with this document. This document is for preliminary informational purposes only and is not an offer to sell or the solicitation of an offer to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

Without limiting the foregoing, this document does not constitute an offer to sell, or a solicitation of offers to purchase or subscribe for, securities in the United States. The securities referred to herein have not been, and will not be, registered under the Securities Act and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Crédit Agricole Egypt does not intend to register any portion of any offering in the United States or to conduct a public offering of securities in the United States.

All of the numerical data provided in this document is derived from Crédit Agricole Egypt’s stand alone, consolidated and corporate financial statements or from its registration document and annual report and financial review updates, unless otherwise indicated. This document is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation.

Forward-Looking Statements

This communication may contain forward-looking information and statements about Crédit Agricole Egypt or Egyptian economy. Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words “believe,” “expect,” “anticipate,” “target” or similar expressions. Although Crédit Agricole Egypt’s management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Crédit Agricole Egypt, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to, those discussed or identified in the annual reports and other filings with the Egyptian Financial Supervisory Authority made or to be made by Crédit Agricole Egypt. Crédit Agricole Egypt undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.

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Contents

1 Credit Agricole Egypt – who we are

2 A supportive Egyptian economic and banking environment

3 Ambition: being the reference European bank in Egypt

4 CAE share price and related ratios

5 Financial highlights

6 Credit Agricole Egypt contact list

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Egyptian American Bank

• 1979: Credit Lyonnais opens a branch in Egypt

• 2001: Acquisition by Credit Agricole Indosuez of Credit International Egypt (CIE) with Mansour Family

• 2001: Rebranded as Credit Agricole Indosuez Egypt (CAI) and opens a limited number of branches targeting high end private customers

• 2005: Merger of Credit Lyonnais and CAI, rebranded as Calyon Egypt, with 7 branches and less than 10,000 private & corporate customers

Calyon Egypt

• 1976: Egyptian American Bank (EAB) is founded by Bank of Alexandria and American Express

• 2005: Egyptian American Bank acquired American Express Bank (AEB)

2006: acquisition and merger of EAB and Calyon Egypt into Crédit Agricole Egypt

2015: a Universal Bank with a distinctive affluent, SME and Corporate customer base

(~331,000 customers as of 30/06/2015)

Credit Agricole Egypt: who we are History

Page 5

Credit Agricole Egypt: who we are Key data as of June, 30 2015

• A universal bank, with 4 business lines:

• Retail and Private Banking: ~325,000 individual customers, ~143,000 cards

• Small and Medium Enterprises: 5,875 customers

• Corporate: 495 customers

• Capital Markets: 213 customers

• 78 branches and 2,326 staff

• Key figures – EGP* :

• Total Assets: 32.0 billion

• Loans: 14.4 billion

• Deposits: 27.1 billion

• Equity: 2.9 billion

• Net Income: 483 million for 6 months (stand alone accounts)

• CAE ranked the sixth private bank in terms of loans and deposits volumes with almost 2% market share , one of the top three banks in terms of car and credit cards business, one of the main primary dealer of T-bills/T-bonds

• Rating CAE: AA+ (By Fitch Ratings, local rating)

● CAE branch network * USD/EGP: 7.53 EUR/EGP: 8.4960 as of end June 2015

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Credit Agricole Egypt: who we are Key data

Balanced business model with strong retail deposit base

Retail & Private Banking

30%

Corporate 45%

SME's 25%

Loans by business line June 2015

High level of liquidity with no currency mismatch

Loans - LCY EGP 9.7 bn

67%

Loans - FCY EGP 4.7 bn

33%

Loans breakdown June 2015

Deposits - LCY EGP 18.4 bn

68%

Deposits - FCY EGP 8.7 bn

32%

Deposits breakdown June 2015

LCY local currency / FCY foreign Currency (EGP bn) SME: small and midcap enterprises, Corporate: multinational and large corporates

Retail & Private Banking

53% Corporate

18%

SME's 13%

Capital Markets

16%

Deposits by Business Line June 2015

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• Credit Agricole Group owns 60.5%, Mansour Group owns 10.6% and others (free float) 28.9% as end of September 2015, which grew from 24.1% as of December 2013.

• Market cap reached EGP 6,888 million as end of June 2015.

• From August 2nd 2015, CAE is part of EGX 30 index, the main Egyptian Stock Exchange Index.

Credit Agricole Egypt: who we are Shareholding structure

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

Millio

ns

CAE Market Cap Trend

Credit agricole Group, 60.5%

Mansour group, 10.6%

Others, 28.9%

Shareholders Structure (Sept.2015)

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8

An integrated banking model to originate and provide a

comprehensive range of financial services to all customers

Credit Agricole Egypt: who we are Part of Credit Agricole Group, a leading customer-focused universal bank

Farmers

Individual customers

Small businesses

Corporates

Local authorities

Institutional customers

Savings

management &

Insurance

39 Regional

Banks

CIB

Specialised

services

Poland

A model that fosters synergies and creates value for all Group components

Organisation as of end-2014

http://www.ca-cib.fr/

http://www.caceis.fr/

http://www.ca-privatebanking.com/

http://www.ca-consumerfinance.com/

http://www.ca-leasingfactoring.com/

https://www.lcl.fr/

http://www.ca-assurances.com/

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A supportive Egyptian economic and banking environment An improving economic scenario

• Improved political stability since President Al Sissi came to power in 2014

• A positive stance for sovereign ratings (Moody’s upgrades Egypt to B3 with a stable outlook on the 7th April 2015) and for overall market perception:

5Y sovereign CDS down to 334 bps in Sept.2015 from over 600 bps in 2011

In line with CBE decision to curb FX parallel market FX rates increased in the recent months of year 2015

Source : Reuters

259

615

455

608

289 313 315 338 334

-

100

200

300

400

500

600

700

Basis

Po

ints

Egypt CD's 5Y Rate

7.76 7.80 8.38

9.55 8.65 8.50 8.60 8.77 8.75

5.80 6.03 6.32 6.94 7.14 7.53 7.73 7.73 7.73

0.00

2.00

4.00

6.00

8.00

10.00

12.00

EUR/EGP Exchange Rate

EGP/Euro EGP/USD

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• Economic growth picks up while inflation is expected to decrease (cf. IMF projections) • Private sector PMI index up to 50.2 in June 2015, the 4th consecutive month in which the

index has hovered around 50, the threshold that separates growth from contraction in the manufacturing sector. PMI index coming from less than 40 by year end 2012.

23456789

10111213141516 Inflation % (y/y)

inflation (y/y)

Source : Central Agency for Statistics, Crédit Agricole S.A.

IMF Projections

4,695,14

1,822,19 2,11 2,2

3,84,3 4,5 4,7

GDP growth % (y/y)

Source : Central Agency for Statistics, Crédit Agricole S.A.

IMF Projections

A supportive Egyptian economic and banking environment

An improving economic scenario

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• Government ongoing commitment to fiscal and economic reforms which will help to reduce fiscal imbalances (fuel subsidy cuts, taxation hikes)

• Reduction in external vulnerabilities helped by continued donor support and improved prospects for increased capital inflows (Cf. Egypt Economic Development Conference in Sharm El Sheikh on March 2015: USD 40bn of foreign direct investments and projects subject to firm agreement)

-6,6

-7,7

-10,1-10,6

-13,7

-12,0-11,5

-9,3-8,6 -8,5

Budget balance (% GDP)

Source : EIU, IMF, Crédit agricole sa

IMF Projections

-15

-10

-5

0

5

10

15

20

25

30

35

40

-15

-10

-5

0

5

10

15

20

25

30

35

40

FX Reserves, FDI & Portfolio inv.

FX Reserves FDI + Portfolio inv. (rhs)Source: Central Bank, CA sa

bn USD 1 y cumbn USD

A supportive Egyptian economic and banking environment An improving economic scenario

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A profitable banking market with strong growth potential

Population: 88.9 million inhabitants, growing by 3% a year

Low penetration ratio for banking activities in Egypt:

only 10% of Egyptian population have a bank account with total 40 banks currently working in Egypt including state owned banks.

Loans / GDP below 30% (well below comparable countries)

23,000 inhabitants per branch (vs. 8,200 in Mexico for example)

Large, quite healthy & growing domestic market for both Retail & Commercial banking:

Significant loans and deposits growth

Reasonable and improving asset quality

Very Liquid Banking market: Loan / Deposits ratio 40% (Dec.2014)

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A profitable banking market with strong growth potential

Open banking competition with

A segmentation between state owned mass market banks and other players

A rather low market concentration among private sector banks

CA Egypt, the only French bank among limited number of international banks.

A fairly robust level of margins on higher segment clients.

Fairly accommodating banking regulatory environment.

Improving legal environment with new investment law

17.0%

7.7% 7.6% 7.4%

4.8%

3.4% 3.3% 2.8%

2.1% 1.9% 1.8% 1.6% 1.4% 1.4% 0.9% 0.8% 0.8% 0.7% 0.6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Lending market share (Dec.2014)

State owned Banks

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Our ambition is to deliver highest standards of client satisfaction in Egypt, leading to

a consistently strong profitability through:

• Acceleration of Retail Development:

• Strong and growing retail banking franchise in Egyptian Market

• Multichannel strategy

• Focusing on quality services and client satisfaction

• Leadership in Corporate Banking* benefiting from Credit Agricole Group synergies

• Strong balance sheet and high level of asset quality thanks to a disciplined growth strategy

• Consistently high level of return on Equity

*including multinational and large Corporates, small and midCap enterprises

Being the reference European bank in Egypt

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Being the reference European bank in Egypt Acceleration of Retail development

• Strategic differentiation based on quality of service and client satisfaction:

Consistently monitoring customer recommendation and feed back: according to last survey of GFK on 2015, CAE ranked among the highest client satisfaction score (7,7)

Training our staff.

Development of loyalty programs (Fidèle).

• Strong and growing Retail Banking franchise focusing on higher customers segment

* Higher segment = mass affluent and affluent clients

Total +32%

80% 74%

20%

26%

0

20

40

60

80

100

120

140

Dec. 2011 June 2015

Higher Segment* Mass Market*

Number of customers: evolution (100 index : end-2011) # of customers

CAGR

+16%

+6%

Total: +8%

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Multi Channel Strategy:

• Investment in the branch network: in 2015, CA Egypt opened 4 new branches and

relocated 2. In addition, CA Egypt consistently renovates branch net work . • Implementation of the digital transformation: new services launched as

Online Cards activation, availing a new channel for Debit and Credit cards activation for online registered customers and PIN choice.

CAE official Mobile Application, available on Apple & Android Stores. Provides a

quick link to the bank for Information, FX Rates, Loan calculator, ATM & Branches locations , etc.

Digital Banking guide, including all channels for customer interaction with the

bank, highlighting features, benefits, registration steps & how to access.

Payment of bills on line, including mobile, internet and utilities bills through online banking / ATM’s.


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11,276 11,710 12,877

13,662 14,355 14,439

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Dec.2010 Dec.2011 Dec.2012 Dec.2013 Dec.2014 Jun.2015

EG

P M

illio

n

Retail & Private banking deposits outstandings Evolution

+28%


Strong growth and higher profitability of retail segment paving the way for the acceleration of retail development

263

327

405

498

586

650

200

250

300

350

400

450

500

550

600

650

700


EG

P M

illio

n

Credit Cards outstandings Evolution

+147%

2,730 2,634 2,971

3,216

3,890 4,316

- 400 800

1,200 1,600 2,000 2,400 2,800 3,200 3,600 4,000 4,400 4,800


EG

P M

illio

n

Retail & Private banking loans outstandings Evolution

+58%

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Strong franchise in Large and Multinational Corporates (MNCs), Midcap and SME

MNCs portfolio steadily growing and currently consists of 93 Groups. Strong group synergies with 80% of said portfolio being Credit Agricole (CACIB)Coverage clients. Since 2012 Multinational sector clientele base grew by a 12.7% CAGR.

012

65 Groups

71 Groups

89 Groups

93 Groups

2012 2013 2014 June 2015

Being the reference European bank in Egypt A leadership in Corporate Banking

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Strategies to capitalize on current market opportunities and to reinforce a managed and safe growth. Covering public sector companies with low risk profile

Participation in syndication projects that are launched in local market

Target fast-moving industries (energy /Oil and Gas/Construction/Food) with Credit Agricole Group capabilities

New transportation projects

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Credit Aricole Egypt with full support of Credit Agricole Group (Trade Finance, Investment Banking, Forex and Capital Market): one of the few players enjoying such a support

CA Egypt maintains and develops client centric business model, where the client is at the core of business.

Considering reasonable management of risk weighted assets, the driver for growth comes from cross selling, either with the group or locally.

Focusing on Flow Management as well as Trade Finance, are among the key drivers to profit enhancement.

GLOBAL

TRANSACTION

SERVICES

CAPITAL

MARKETS

CREDIT

AGRICOLE

CIB

CLIENT

RETAIL

BANKING

SYNDICATIONS

STRUCTURED

FINANCE

PRIVATE

BANKING


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Credit Agricole Group policies of risk management and compliance: CA Egypt is implementing CA Group best practices which explains superior assets quality and lower level of non performing loans (NPL’s)

CAE NPL ratio reached 2.7% as of June 2015, one of the lowest ratios in the market.

CAE coverage ratio reached 193% as of June 2015 comparing with 163% same period last year (June data for all peers not yet available).

Peers Group: group of foreign and private banks working in Egypt CIB, QNB , Barclays , HSBC, AAIB , Alex Bank (Intesa Sanpaolo), Emirates NBD.

source of data: banks disclosures

Being the reference European bank in Egypt Maintain a high level of asset quality

2.7%

3.9%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

Jun.2015

NPL Ratio

CAE Average Peers

193%

164%

100%

120%

140%

160%

180%

200%

Jun.2015

Coverage Ratio (including Collective Provisions)

CAE Average Peers

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CA Egypt CAR(local) and Leverage Ratios as of June 2015 reached 15% and 6.6% respectively. Strong liquidity position reflected in high liquidity coverage ratio. Exposure to Sovereign debt (T.Bills and T.Bonds) far below average peers.

1178%

1229%

726%

994%

736% 824% 809%

Dec.13 Mar.14 Jun.14 Sep.14 Dec.14 Mar.15 Jun.15

Liquidity Coverage Ratio (LCR)

6.0% 6.2% 6.3% 6.2% 5.9% 6.3% 6.6%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%


Leverage Ratio

Leverage Ratio CBE Minimum Required

No data available for all peers about leverage and LCR ratios , CBE = Central Bank of Egypt

Being the reference European bank in Egypt Maintain a strong balance sheet

13.6% 13.9% 14.0% 14.3% 14.3% 15.2% 15.0%

17.4% 18.5%

15.5% 15.4%

17.3% 15.9% 17.2%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%


Capital Adequacy Ratio

CAE CBE Minimum Required Average Peers

24% 26%

24% 24% 28% 27%

25%

29%

36% 35% 37% 37% 39% 38%

5%

10%

15%

20%

25%

30%

35%

40%

45%


Investments To Assets Ratio

CAE Average Peers

Page 25

Profitability consistently above average peers

Recurring revenue growth with increasing efficiency (EGP million)

870

1,110

446

693

39.8%

34.7%

H1 2014 H1 2015Net Banking Income Net profit before Tax

Cost to income ratio

Being the reference European bank in Egypt Deliver high level of profitability

*Return on assets / equity based on stand alone annualized net income before profit sharing

1,457 1,743 1,821

638 858 983

47.7%

42.2% 40.2%

2012 2013 2014

Net Banking Income Net profit before Tax

Cost to income ratio

25.5%

30.0% 30.3%

37.7% 39.2%

23.7% 22.0% 26.0%

27.2% 31.3%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

2012 2013 2014 Mar-15 Jun-15

Return on equity

CAE Average Peers

1.7%

2.2% 2.2%

2.9% 3.0%

2.1%

2.0% 2.2%

2.5% 2.7%

0.00%

1.00%

2.00%

3.00%

4.00%

2012 2013 2014 Mar-15 Jun-15

Return on assets

CAE Average Peers

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Contents

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Credit Agricole Egypt share price and related data

2011 2012 2013 2014

Share Price (EGP)* 7.94 11.96 13.62 18.08

P/B 1.16 1.50 1.42 1.78

P/E 7.40 7.27 6.08 7.60

Dividends Yield 8.1% 6.9% 11.5% 7.9%

Dividends Payout Ratio 60% 50% 70% 60%

Number of Shares (million) 287 287 287 287

Market Cap (EGP million) 2,279 3,433 3,909 5,189

* Price as of last day of the year

-

3.00

6.00

9.00

12.00

15.00

18.00

21.00

24.00

27.00

0

2000

4000

6000

8000

10000

12000

EGX 30 Credit Agricole Egypt

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Financial Highlights stand alone results- local accounts

Balance Sheet (EGP Million)

Loans H1 2015 2014 2013 2012 H1 15 Vs.

Dec.14

Y 14 Vs.Y

13

Y 13 Vs.Y

12

Corporate 9,903 9,098 9,289 10,305 8.9% -2.1% -9.9%

Retail 4,324 3,891 3,220 2,997 11.1% 20.9% 7.4%

Banks 157 40 17 13 288.9% 135.0% 27.7%

Total 14,384 13,030 12,526 13,316 10.4% 4.0% -5.9%

Investments H1 2015 2014 2013 2012 H1 15 Vs.

Dec.14

Y 14 Vs.Y

13

Y 13 Vs.Y

12

Treasury Bills "Net" 5,508 6,250 4,309 4,383 -11.9% 45.1% -1.7%

Treasury Bonds 2,615 2,410 2,572 2,615 8.5% -6.3% -1.6%

Other Investments 289 322 341 390 -10.3% -5.4% -12.6%

Total 8,412 8,983 7,222 7,387 -6.4% 24.4% -2.2%

Clients Deposits H1 2015 2014 2013 2012 H1 15 Vs.

Dec.14

Y 14 Vs.Y

13

Y 13 Vs.Y

12

High Cost 16,822 17,678 18,176 17,195 -4.8% -2.7% 5.7%

Low Cost 10,317 8,935 6,284 5,564 15.5% 42.2% 12.9%

Total 27,139 26,613 24,460 22,760 2.0% 8.8% 7.5%

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Financial Highlights stand alone results- local accounts

Income Statement (EGP Million)

H1 2015 2014 2013 2012 H1 15 Vs.

H1 14

Y 14 Vs.Y

13

Y 13 Vs.Y

12

Net Interest Income 756 1,223 1,132 996 32.2% 8.0% 13.7%

Net Fees & Commission Income 244 456 345 257 9.1% 31.9% 34.7%

Net Trading Income 91 121 225 157 45.5% -46.3% 43.8%

Other Operating Income 19 21 40 47 54.0% -46.8% -15.2%

Net Banking Income 1,110 1,821 1,743 1,457 27.6% 4.5% 19.7%

Total Expenses (385) (733) (736) (692) 11.0% -0.4% 6.3%

Income Before cost of risk &Tax 744 1,095 1,006 758 39.6% 8.8% 32.7%

Cost of Risk (51) (112) (147) (120) -40.9% -24.3% 22.9%

Net Income Before Tax 693 983 858 638 55.2% 14.5% 34.5%

Tax (210) (301) (216) (166) 54.0% 39.4% 30.2%

Net Income 483 682 643 472 55.7% 6.2% 36.1%

Ratios

H1 2015 2014 2013 2012 H1 15 Vs.

H1 14

Y 14 Vs.Y

13

Y 13 Vs.Y

12

NII / NBI 68.1% 67.2% 65.0% 68.4% 1.0% 2.2% -3.4%

Net Interest Margin 5.2% 4.6% 4.4% 4.1% 0.6% 0.2% 0.3%

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CAE Contact List

CEO: Francois-Edouard Drion

[email protected]

CFO: Pascale Bohn

[email protected]

Head of IR: Mohamed Mokhtar

[email protected]

mailto:[email protected]









Documents

Credit Agricole Egypt PRESENTATION INVESTORS · CREDIT AGRICOLE EGYPT INVESTOR PRESENTATION Kepler Cheuvreux Conference, Egyptian Days in Paris, 15-16 October 2015 . Page 2 Disclaimer