Egypt's CIB Q2 net profit falls less than expected

Egypt's Commercial International Bank (COMI.CA) reported an 11 percent dip in second-quarter net profit on Wednesday after political and economic turmoil dented foreign exchange income, banking fees and the value of investment sales.

Net income was 443 million Egyptian pounds ($74.3 million), down from 496 million pounds in the same period a year earlier, the company said in a statement. It was higher than the average analyst forecast of 403 million pounds in a Reuters poll.

Egypt's business sector is struggling to recover from the disruption that followed President Hosni Mubarak's overthrow in February, and banks have been hit further by a weak financial market and an exodus of foreign investors.

"In a challenging year filled with unprecedented circumstances, CIB managed to maintain a healthy liquidity position where the bank's balance sheet grew by 3.43 percent over December 2010," CIB said.

Deposits and loans grew by 6.2 percent and 6.37 percent, respectively, in the first half, but net fee and commission income slipped to 216 million pounds in the second quarter from 220 million a year earlier.

Quarterly net interest income grew to 630 million pounds from 572 million pounds.

Loan impairment losses totalled 78 million pounds in the quarter, compared to a small gain a year earlier, and net trading income slipped to 65 million pounds from 90 million.