Commercial International Bank
Encyclopedia
Commercial International Bank, or CIB, is an Egypt
ian bank headquartered in Cairo
, Egypt. The bank is the largest private-sector lender in Egypt.
(NBE) (51%) and the Chase Manhattan Bank
(49%) under its original name Chase National Bank of Egypt. Following Chase's decision to divest its equity stake in 1987, National Bank of Egypt increased its shareholding to 99.9%, and the Bank changed its name to Commercial International Bank (Egypt) S.A.E.
During 1993, as part of its privatization strategy, CIB successfully launched a public share issue resulting in a decrease of the major shareholder's stake to 43%, while CIB and NBE employees became the owners of 16% of the Bank's capital in a parallel employee ownership plan. The remaining 41% was sold to over 14,000 Egyptian, Arab and multinational investors, including the International Finance Corporation
.
In July 1996, National Bank of Egypt (NBE), CIB's principal shareholder, sold an additional 20% equity stake in CIB's capital through a Global Depository Receipt
s (GDR) offering listed on the London Stock Exchange
. This was the first such offering by an Egyptian company and has proven to be a great success representing the highest level of subscription of any Middle East
international equity offer to date, raising over $120 million.
In 1999, CIB launched its Retail Banking
activity offering a wide range of products and services aiming at diversifying CIB income mix, and capitalizing on CIB strong corporate base. CIB then started an ambitious 4-year plan to centralize the bank (investing in the future). The IT
conversion was finalized early in 2003 and the bank became fully centralized.
In 2003, CIB signed a contract with IFC whereby IFC would offer consultancy in developing the SMEs business. Also, CIB has upgraded its risk management in anticipation of Basle-II. Over the last few years, CIB added Commercial International Life Insurance (CIL), CONTACT Car Trading Company, and CorpLease for Financial Leasing to its affiliates. CIB now stands at a 5% market share in loans (public banks included), with plans for increasing this share to 10%, cross-border expansion, stock listing and regional presence.
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
ian bank headquartered in Cairo
Cairo
Cairo , is the capital of Egypt and the largest city in the Arab world and Africa, and the 16th largest metropolitan area in the world. Nicknamed "The City of a Thousand Minarets" for its preponderance of Islamic architecture, Cairo has long been a centre of the region's political and cultural life...
, Egypt. The bank is the largest private-sector lender in Egypt.
History
Commercial International Bank was established in 1975 as a joint venture between the National Bank of EgyptNational Bank of Egypt
- in arabic National Bank of Egypt is the oldest and largest bank in Egypt, and has 405 branches within the country, including 131 in Cairo. It has assets of L.E. 185.3 bn., total deposits of L.E. 155.2 bn., and total loans and advances of L.E. 83 bn...
(NBE) (51%) and the Chase Manhattan Bank
Chase Manhattan Bank
JPMorgan Chase Bank, N.A., doing business as Chase, is a national bank that constitutes the consumer and commercial banking subsidiary of financial services firm JPMorgan Chase. The bank was known as Chase Manhattan Bank until it merged with J.P. Morgan & Co. in 2000...
(49%) under its original name Chase National Bank of Egypt. Following Chase's decision to divest its equity stake in 1987, National Bank of Egypt increased its shareholding to 99.9%, and the Bank changed its name to Commercial International Bank (Egypt) S.A.E.
During 1993, as part of its privatization strategy, CIB successfully launched a public share issue resulting in a decrease of the major shareholder's stake to 43%, while CIB and NBE employees became the owners of 16% of the Bank's capital in a parallel employee ownership plan. The remaining 41% was sold to over 14,000 Egyptian, Arab and multinational investors, including the International Finance Corporation
International Finance Corporation
The International Finance Corporation promotes sustainable private sector investment in developing countries.IFC is a member of the World Bank Group and is headquartered in Washington, D.C., United States....
.
In July 1996, National Bank of Egypt (NBE), CIB's principal shareholder, sold an additional 20% equity stake in CIB's capital through a Global Depository Receipt
Global Depository Receipt
A global depository receipt or global depositary receipt is a certificate issued by a depository bank, which purchases shares of foreign companies and deposits it on the account...
s (GDR) offering listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
. This was the first such offering by an Egyptian company and has proven to be a great success representing the highest level of subscription of any Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
international equity offer to date, raising over $120 million.
In 1999, CIB launched its Retail Banking
Retail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
activity offering a wide range of products and services aiming at diversifying CIB income mix, and capitalizing on CIB strong corporate base. CIB then started an ambitious 4-year plan to centralize the bank (investing in the future). The IT
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
conversion was finalized early in 2003 and the bank became fully centralized.
In 2003, CIB signed a contract with IFC whereby IFC would offer consultancy in developing the SMEs business. Also, CIB has upgraded its risk management in anticipation of Basle-II. Over the last few years, CIB added Commercial International Life Insurance (CIL), CONTACT Car Trading Company, and CorpLease for Financial Leasing to its affiliates. CIB now stands at a 5% market share in loans (public banks included), with plans for increasing this share to 10%, cross-border expansion, stock listing and regional presence.