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CIH: Net profit down in Q1-2019

In the first quarter of 2019, CIH Bank posted a net profit of 115.9 million dirhams, down 15.6% compared to the same period last year, the bank said. Net banking income amounted to MAD 518.3 million, up 6.4% compared to March 2018, the bank said after its board meeting. At the end of March 2019, the commercial results of the bank are part of the same successful trend recorded in previous years, said the same source, noting that over a rolling year, customer resources amounted to 34.8 billion dirhams, up 14.7% from Q1-2018.

Regarding customer jobs, real estate jobs are almost stable at 25 billion dirhams, while non-real estate jobs amounted to 12.1 billion dirhams, a sharp increase of 29.6 percent compared to the end of March 2018. CIH Bank noted, moreover, that the 1st quarter of 2019 reflects the major investment effort made by the bank, with a view to reaching a higher level of resources in terms of information system, human resources and network of agencies, in application of its development strategy.

Regarding risks, CIH Bank said it had made a special effort to cover them at the earliest in 2019, stating that the cost of risk stood at -88 million dirhams, up from the end of March 2018 where it was displayed at -57 million dirhams. Projected at the end of 2019, the cost of risk should be lower than the level recorded at the end of 2018. In addition, the bank pointed out that the Board of Directors set the terms of the capital of 500 million dirhams authorized by the Combined General Meeting of 04 April 2019.

This is an issue price per share of 2.90 dirhams, and a parity of 2 new shares for 31 old shares. The transaction will be finalized during the 3rd quarter of 2019 after obtaining the necessary regulatory authorizations.

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