THE JOURNEY OF RESPONSIBLE BANKING
Sustainability Report 2019
2019 I CIB Sustainability Report I 1 The Bank and References (G102-1) - (G102-5) Throughout this report, “CIB”, “the Bank,” or “we” refers to the Commer- cial International Bank (Egypt) S.A.E. Established as Joint Stock Company (S.A.E), under Investment law no. 43 of 1974.
Editorial Policy Driven by our leading position in the nation, and as Egypt, is Africa’s Re- gional HUB and elected Chair of the African Union Assembly of the Head of States and Government for the year 2019, the CIB 2018 Sustainability Report reflected the work we have done to enhance all aspects of our sus- tainability performance and governance while taking into account both national and regional challenges and needs.
This Sustainability Report complements and revisits a number of sustain- For Further Information (G102-53) ability material topics presented in the 2018 report while bringing to light particular key topics that have become a major focus to our stakeholders. Mona Hosny Ramy Kassab Senior Sustainable Development Senior Sustainable Development Scope of the Report Period and Cycle Covered (G102-50 / G102-52) Officer Officer This is a sustainability report featuring the year ended 31 December 2019. Email: [email protected] Email: [email protected] Some information before and after these dates may be included to empha- Address: Commercial International Address: Commercial International size relevant context to the reporting period. Bank (Egypt), Smart Village Bldg. 4, Bank (Egypt), Smart Village Bldg. 4, B218/F9 Financial district - Smart B218/F9 Financial district - Smart Referenced Reporting Guideline (G102-54) Village - Cairo Alexandria Desert Rd. Village - Cairo-Alexandria Desert Rd. The report is prepared in accordance with the Global Reporting Initiative Sustainability Reporting Standards: Core option.
Date of Previous Sustainability Report (G102-51) 1 January 2018 to 31 December 2018
Forward-Looking Statements This Sustainability Report contains forward-looking statements on various Copyright © 2019 by Commercial International Bank (CIB) future estimation and paramount considerations that are expected in the All rights reserved. No part of this publication may be reproduced, distributed, or landscape of the banking industry, both nationally and regionally. While transmitted in any form or by any means, without the prior written permission of CIB’s proven agility allows swift adaptation, however, there is no assurance the publisher, except in the case of brief quotations and certain other noncom- of the magnitude nor the pace of such changes due to the rapid dynamics mercial uses permitted by copyright law. For permission requests, contact us at of the technologies and the markets we serve. the address below.
Mistakes and Typographical Errors CIB Head Office (G102-3) Any errors discovered following publication of the report will be corrected Address: 21/23 Charles De Gaulle Street - Nile Tower Building, Giza, Egypt and displayed on our website. In consideration to the environment, our reports are published as a downloadable PDF file from our website. About This Report...... 06
A Note From Our Chairperson...... 08
A Tribute...... 10
Introduction...... 12
Sustainability Strategy...... 18 Sustainability Pillars Sustainability Governance CONTENTS Stakeholders and Materiality Digital Transformation...... 30
Driving Economic Growth...... 40 Journey 1 Economic Impact Journey 2 Financial Inclusion and Financial Literacy Journey 3 Supply Chain Management
Managing Environmental Footprint...... 66 Journey 1 Green Finance Journey 2 Green Environment
Leading Social Empowerment...... 78 Journey 1 Our Customer Experience Journey 2 Our Employer Brand Journey 3 The CIB Foundation Journey 4 CIB Social Activities
Corporate Governance...... 102
COVID-19 Response...... 120
Awards...... 124
GRI Index...... 126
External Assurance...... 130
4 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 5 About This Report
CIB’s 2018 Sustainability Report, A Blossoming Land, shed Awarded the light on the diverse practices, initiatives, and partnerships that CIB has undertaken for many years towards the achievement of a truly digital and inclusive business model, where all our hu- Middle East’s Best man and intellectual assets have been steered to capitalize on CIB’s sustainability culture across every product, process, and Bank for Corporate policy. In 2019, CIB geared itself and its employees to consoli- date all efforts and practices to set the stage for its revamped Responsibility sustainability strategy that paves the way for our full-fledged by Euromoney path to Responsible Banking. Once again, CIB takes the lead and challenges itself to a new platform of self-commitment, as we optimize all our expertise and capabilities at the service of the economy, society, and environment Became a founding Ranked #1 signatory bank among all Egyptian private-sector banks to the United Nations Environment Program Financial in terms of revenues, net worth, total assets, Initiative (UNEP-FI’s) Principles for Responsible Banking and deposits
Ranked #38 on Forbes Middle The first organization
East’s Top 100 in Egypt Listed Companies in the Arab World and the first Bank in the Middle East to acquire the ISO - 41001 certification
6 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 7 A Note From Our Chairperson
The unprecedented events of the past At CIB, we began our journey of responsible months have forced us all to pause and banking since 2013, and we are proud to have take inventory of our lives, our business- set the tone for responsible business models es, and our world. None of us could have in the Egyptian banking sector. We don’t just imagined the scale and magnitude of prioritize profitability, cost savings, and op- the COVID-19 crisis, which continues to erational efficiency, but also our social and unfold, impacting the economies and lives environmental impact. of people on every continent across the globe. It is perhaps impossible to recall a In 2019, we took things a step further. Today, time when every individual, regardless of our business strategy and sustainability race, nationality, or religion, was essen- strategy are in the process of merging into tially facing the same set of challenges. one comprehensive framework that governs the way we work, the way we approach our While there are groups of people, re- operational goals, and the way we cater to our gions, and sectors that have been hit community and the environment. harder than others, I think that one of the most poignant messages that this On the following pages of this report, we aim to global pandemic has delivered is that share with our stakeholders how our services are partnerships, and decision-making. We have and the banking sector. In 2019, CIB became fundamentally, we all share a common continuing to finance individuals and businesses already begun to see fundamental changes one of the founding signatories of the Princi- planet and a common fate. It has forced through a new model of value creation that is brought about by digitization in the way that ples for Responsible Banking, joining a group us to think about the collective good more equitable and sustainable. We support our we deliver value to our customers and create of 130 banks worldwide that have committed before the individual good, which is what customers and help them to achieve their finan- shared value. to strategically align their business with the “creating shared value“ is all about. cial aspirations and grow their businesses. We Sustainable Development Goals and the Paris work with both small- and large-scale projects to As a strong case in point, CIB was able to Agreement on Climate Change. I think we are in As I have previously noted, at CIB, we establish true value creation that can transform seamlessly guide its customers towards the a strong position that can allow us to positively view CSV as a core business strategy lives. And we seek to finance sectors and estab- use of digital channels to ensure the health and influence our partners and corporate clients to that impacts our policies and operations lish partnerships with like-minded entities who safety of our employees and customers during adopt environmentally sustainable practices across the organization. Focusing on can join our effort to help build a more inclusive the COVID crisis by minimizing traffic in our into all aspects of their operations, just as we CSV not only strengthens our position as economy and sustainable society. branches. Clients have been able to bank with have internally. Egypt’s leading private sector bank, but it us 24/7 through more than 1,000 ATMs nation- also helps us as an organization, and Egypt as None of this would have been possible with- wide and online through their Mobile Banking, While the challenges ahead are significant, we a country, to mitigate risks and remain resilient out the rollout of a robust digital strategy Internet Banking, or CIB Business Banking have confidence that our economy can once against economic shocks such as the one that that utilizes data analysis and analytics in accounts. We are using all channels available to again resume a steady path of growth. Our job is we are currently navigating. an efficient manner. As a leader of the digital communicate messages on banking safely, and to extend full support to our clients by resched- transformation in Egypt’s banking sector, we we’ve rolled out explainer videos explaining uling dues in affected industries and providing Zooming in on Egypt for a moment, it is import- are continuously developing digital offerings how to access and use our digital channels. the finance needed for our clients to operate in ant to note that we have successfully executed a that meet client needs efficiently and with a sustainable manner. CIB will continue with its national economic reform program that began in constant improvements in quality. We’ve Digital solutions are also key to reaching ap- “Journey of Responsibly Banking”, leveraging 2018 and as a result, our economy had regained introduced a comprehensive suite of digital proximately 1.7 billion people worldwide who its expertise and capabilities at the service of momentum placing us in a stronger position to payment solutions that minimize the need to have no access to the financial sector. The the economy, society, and the environment. withstand the effects of the global economic crisis use cash and the need to visit branches. problem of large swathes of the population brought about by the coronavirus. The Central remaining unbanked is of particular impor- Bank of Egypt (CBE) took proactive steps early Today, we are in the process of deploying one tance in Africa, and we are actively working to on to cut interest rates by 300 basis points (bps), the largest investments in our Digital Transfor- address the issue. and the government has followed through with an mation journey to ensure that both business EGP 100 billion stimulus package and a number of performance and sustainability commitments We are also very cognizant of the fact that cli- fiscal measures to support individuals, businesses are monitored, served, and echoed simulta- mate change and the transition to a low-carbon Mr. Hisham Ezz Al-Arab, and the economy for the duration of the crisis. neously within every facet of our operations, economy is a top global priority for businesses Chairperson & Managing Director
8 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 9 A Tribute CIB would like to give tribute to Ms. Amal El Araby, an outstand- ing professional, a fervent advocate for sustainable development, and a highly respected and loved member of the CIB family. Although she sadly left us, Ms. El Araby will always be remembered firstly for her passion for environmental and social development, and for her excellent record of achievement in the field of sustainability since the establishment of CIB Sustainability Department in 2013. She continuously strived to work on building, developing, and propped up the culture of sustainability inside and outside the Bank, taking pride in delivering the highest quality work and being always committed to the ethics, standards, and goals intrinsic to CIB. She is and will always be missed by all of us.
10 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 11 INTRODUCTION
12 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 13 Egypt’s Leading Private Sector Bank “The Bank serves an expansive network of retail customers, About Us high-net-worth individuals, 1.4+ MN CIB is Egypt’s leading private-sector bank. It is an and institutions that drive the award-winning institution dedicated to creating Clients out-standing stakeholder value and providing superior customer service solutions to a broad Egyptian economy.” range of clients. The Bank serves an expansive net- work of retail customers, high-net-worth (HNW) individuals, and enterprises and institutions that drive the Egyptian economy. With a well-estab- lished network of 207 branches and banking units and a workforce comprising of 6,900 employees, 207 CIB provides tailored, client-centric services Branches Financial Institution Group Global Transaction and Digital Banking to clients in the corporate, commercial, retail, CIB provides a diverse set of banking and fi- The Bank’s Global Transaction and Digital Bank- wealth, and small- and medium-sized enterprise nancial services designed to suit the needs of ing group manages all corporate and consumer (SME) spheres. CIB also operates two representa- different financial institutions through facilities digital channels to fully integrate the Bank into tive offices, one in Dubai and the other in Addis tailored to address the financing needs of bank- our clients’ daily lives. It develops simple, reli- Ababa, as channels driving business through ing and non-banking financial institutions. able, and consultative digital experiences that these key markets while capitalizing on the syn- BN meet customers’ needs anytime, anywhere, and ergies inherent in the Bank’s business model as a EGP Treasury and Capital Market Services on any device. means of driving value for clients. 122 CIB delivers world-class services in the areas of Market Cap cash and liquidity management, capital mar- Retail Banking kets, foreign exchange, and derivatives. Consumer Banking What We Do The Consumer Banking division is the core Strategic Relations Group (SRG) engine to CIB’s dynamic service offering, Institutional Banking CIB is dedicated to servicing its prime institu- providing a broad range of retail clients in Corporate Banking and Global tional entities through the Strategic Relations different customer segments (Prime, Plus, Customer Relations Group BN group. SRG carries out this function with highly Wealth, or Private), an extensive bundle of Widely recognized as Egypt’s preeminent EGP qualified relationship managers, who supply our products and services tailored to satisfy their corporate bank, CIB serves enterprises 23 customers with exclusive, personalized services, needs. These products are diversified from ranging from industry-leading corporates to Revenues catering to their unique business needs. The personal to specialized lending solutions, medium-sized businesses. market segment covered by SRG contains strate- cash management services to credit and debit gic entities, including, but not limited to, the vast card offerings, in light with a full-fledged com- Debt Capital Markets majority of sovereign diplomatic missions. petitive analysis in depth. Global product knowledge, local expertise, and capital resources make CIB an Egyptian Enterprise and Governmental Business Banking industry leader in project finance, syndicated BN Relations Group The Business Banking segment serves over loans, securitization, bonds, and structured EGP Enterprise and Governmental Relations aims at 54,000 SMEs with revenues ranging from EGP finance. CIB’s project finance and syndicated 11.8 managing the Bank’s relationship with strategic 1 million to over EGP 200 million through a loan teams facilitate market access for large Net Profit governmental and large enterprises by focusing network of over a hundred experienced rela- borrowers, providing them with world-class on providing first-class service and lifetime value tionship managers. The division works with services at exceptional execution times. for top-tier local and regional companies under clients across the industry, providing mar- state-owned enterprises, governmental entities, ket-leading services and innovative, bespoke Direct Investment or sovereign authorities, which require a more solutions for small and medium enterprises as As a local player that adheres to widely acclaimed sophisticated level of service in order to increase it works to cement CIB’s position as a bank of international standards, CIB actively participates their business with CIB. In addition to creating choice for business owners. in carefully selected direct investment opportuni- new business opportunities for other LOBs out of ties in Egypt and across the region, maximizing 6,900 those customers by offering different corporate, return on investment. Employees digital, and consumer products and services.
14 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 15 CIB works to create value for shareholders, customers, employees, and the society. A New Threshold
After five decades serving our clients, over 10 the environment. Now, we are expanding and years of leading the Egyptian Stock Exchange, re-enforcing our commitment through the and five years of promoting and integrating deployment of one the largest investments sustainable practices in our business, today, in our digital transformation journey, thus we have reached a new threshold in serving ensuring that both business performance and our nation, our region, and beyond. 2019 was sustainability commitments are monitored, a year of wide-scaled engagement from our served, and echoed simultaneously within our stakeholders, while laying the foundation operations, partnerships, and decision-making to pave the way for our Sustainability and to better serve our investors, customers, com- Corporate strategies to unify as one. munity, economy, and environment.
At CIB, business-as-usual is a responsible business that caters to the community and
To be at the forefront of change, building for the future, and turning aspirations into reality. Vision
To transform traditional financial services into simple and accessible solutions by investing in people, data, and digitalization to serve Mission tomorrow’s needs today.
Our Strategic Direction Creating Shared Value CIB aims to remain at the forefront of change Creating shared value is and has always been Our Values necessary to achieve its mission by maintaining one of the main areas of focus in the Bank’s a vigilant view of the direction of our national strategy. CIB works diligently to create value and regional priorities. We support Egypt’s path for its shareholders, customers, employees, and Integrity Client Focus Innovation towards a digital economy, in which the financial the society. To do this, the Bank efficiently uti- sector plays its role in ensuring financial inclu- lizes its key resources to best serve its strategic sion for both individuals and small and medium priorities, taking into account all the macroeco- enterprises. We leverage our knowledge and nomic driving forces that prevail. This results in investment in digital transformation to serve the creating both financial and non-financial value Respect for the Hard Work Teamwork needs of our stakeholders. We reach out to all the for CIB’s stakeholders. Individual talented young minds and provide an innovative and enabling ecosystem where entrepreneurs, in the financial technology industry, are encour- aged and nurtured. Moreover, as we share land, Responsible Decorum Empowerment history, and the future, Africa is always at the Leadership center of Egypt’s attention and care.
16 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 17 THE ROAD TO CIB’S SUSTAINABILITY STRATEGY
18 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 19 Designing CIB’s Sustainability Pillars
Sustainable development and corporate sustainable strategy. We worked on identifying sustainability are, by nature, interconnected. the connections and relationships between After numerous years of sustainable practic- our business and sustainability impacts. es across the Bank, 2019 was the year to set a long-term footing to our efforts. Forming To ensure a comprehensive and holistic ap- CIB sustainability pillars entailed a full proach to sustainability, our sustainability year of engagement, analysis, and planning. strategy is comprised of three main intercon- With a unique mindset, both our Corporate nected pillars addressing the Bank’s economic, Sustainability Task Force and Sustainability social, and environmental impact, while ensur- Department have started to re-design our ing the optimization of its digital capabilities to pillars to successfully pave the way for a provide an adequate contribution to each pillar.
The Road to Our Sustainability Strategy Through our sustainability strategy, we work tirelessly to adopt a changed culture that facilitates the transition to a more inclusive and greener economy.
Our policies and practices have been in constant movement to adapt into a model that promotes responsible relationships with our customers and beneficiaries.
Business Pillar Value to our Journey Principle Stakeholders (Our Practices)
An Inclusive Driving • Economic Development • Economic Value to Business Economic • Women’s Empowerment Customers, Business, Growth • Youth Empowerment and the National • Supporting SMEs Economy • Inclusion of People with • Financial Inclusion and Disabilities Financial Literacy We work tirelessly to adopt a • Supply Chain A Digital Management Strategy changed culture that facilitates Catering to all Pillars A Responsi- Managing • Green Finance • Green Finance Through Data, the transition to a more inclusive ble Business Environ- • Resource and Operational • Environmental Technology, and mental Efficiency Footprint Innovation Footprint and greener economy.
A Commit- Leading • Customer Satisfaction • Customer Experience ted Business Social • Employee Wellbeing • Employer Brand Empower- • Community Investment • CIB Foundation ment • Societal Prosperity • CIB Social Activities
20 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 21 Sustainability Governance
Corporate Sustainability Task Force • Carbon Disclosure Project (CDP): CIB is Integrating sustainability into the Bank’s business • CIB women’s empowerment policies and one of the companies listed in the CDP, a “CIB has been a strategy and decision-making processes is integral initiatives climate change program aimed at reducing to both our internal practices and our financing • CIB Digital transformation strategy and companies’ greenhouse gas emissions and constituent of the services to ensure a positive impact on our sphere sustainability mitigating climate change risk. CDP recog- of influence. As part of our corporate governance, nizes companies with high-quality disclosure FTSE4Good Index, the Corporate Sustainability Task Force (CSTF) is The first sustainability workshop took place in the in its annual scoring process. delegated by the Board of Directors to ensure that Port Said governorate, with 100 employees taking the EGX Sustainability the Bank’s activities reflect its business approach part. Various challenges, thoughts, and perspec- • Carbon Footprint Report: CIB reports of balancing the strategic goal of increasing profit- tives are shared amongst attendees, which creates on its carbon footprint annually to identi- Index, and the ability while creating value and serving the broader room for innovative and productive ideas that are fy the Bank’s environmental footprint, set socioeconomic and environmental interests. later turned into real initiatives. targets, and reduce CIB’s organizational direct and indirect negative impact on Bloomberg Gender Composition External Stakeholders the environment. The CSTF is chaired by one of the Non-Executive and Materiality Equality Index for Directors of the Board who is appointed by the In addition to our internal engagement and as part Board of Directors. Other members of the Task of our Sustainability Governance, the Corporate several years.” Force are represented by the Executive Manage- Sustainability Task Force (CSTF) and the Sus- ment and employees on a rotation basis. tainability Department continue to monitor and consolidate the stakeholders’ various engagements Role conducted by the Bank across all its functions to In collaboration with the Sustainability ensure that ample discussions and views are con- Department, the CSTF’s first mission was to sidered as part of our materiality identification and revisit the Bank’s sustainability practices, re- prioritization process. (Read more on: Stakehold- design our sustainability pillars, oversee and ers and Materiality) monitor implementations, and report to the Board with its findings and recommendations Communication, Reporting, where decision making is required. The task and Transparency force also reviews the annual sustainability • Sustainability Reports: Communications are reports, develops, and reviews yearly sustain- carried out at regular intervals, both internally ability plans, which include specific projects and externally, where collective efforts are put and/or initiatives implemented each year, and together, and results are generated through ensures alignment between all functions and wide-scaled engagement from stakeholders. areas of the Bank. Through this Sustainability Report, CIB keeps all of its stakeholders informed of its material Internal Engagement topics and sustainability practices that serve its The task force met four times in 2019 and also im- main priorities. plemented an engagement plan with employees across the Bank. In line with CIB’s inclusion efforts, • EGX Sustainability Index: CIB is ranked first direct engagement and communication with on the EGX Sustainability Index 2019 for the employees, and raising sustainability awareness fifth year in a row. beyond the capital, the CSTF holds workshops outside Cairo to ensure an inclusive workforce en- • Financial Times Sustainability Index vironment where a variety of different voices are (FTSE4Good): CIB is a constituent in FTS- encouraged and heard. The workshops include E4Good for the fourth consecutive year. discussions about the following topics: • CIB Environmental Responsibility approach • Bloomberg Gender-Equality Index: CIB is and initiatives included in the 2020 Bloomberg Gender-Equal- • CIB diversity and inclusion approach ity Index for the second year running.
22 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 23 Stakeholders and Stakeholder Channels and Frequency Feedback and Interests Materiality Customers • Branches Customer Services • Digital Banking Services • Account Relationship Manager • Affordable Banking for Youth • Call Center • Tailored Solutions for Women • Public Website • Premium Quick Branches Services Stakeholders Identification • Brand Activations • Responsiveness and Engagement • Satisfaction Surveys • Privacy and Security (G102-40) - (G102-42) - (G102-43) • Social Media Interaction • Competitive Interest Rates • Career Fairs • Expended Outreach of Branches • Fintech Programs • Comprehensive Information on We believe that stakeholder engagement is 4. Sustainability Partners and Industry Services key to sustain and build relationships with Associates (International Community) • Financing Entrepreneurship our different stakeholders. That being said, 5. Customers Activities we connect with our stakeholders regularly to 6. Suppliers Suppliers • Pre-tendering Meetings • Green Products Premises Renovation have a better understanding of their concerns 7. Government and Regulatory Bodies • Project-based Satisfaction Surveys • S&E Compliance and Policies and respond efficiently to their needs and 8. National Community • Briefings and Feedback on New Bank • Sustainable Procurement meet their expectations. Policies on S&E Assessments and • Supply Chain Risks and Performance In 2019, the Bank conducted periodic commu- Criteria Our stakeholders remain the same as identi- nications through multiple channels. Their fied during our last reporting cycle of 2018, type and frequency vary and correspond to Government and • Central Bank of Egypt, Egyptian • Financial Performance however, they are consolidated in 2019 under the characteristics of each group of stake- Regulatory Bodies Stock Exchange, and Others • Governance and Compliance the following groups: holders. We take into account the opinions • Quarterly and Periodic Meetings • EGX Sustainability Index and suggestions covering economic, social, • Daily and Periodic Emails and Direct • Financial Inclusion 1. Shareholders and Investors and environmental dimensions. As a result, Communications with CBE Depart- • Financial Literacy 2. Board of Directors the interests of each group can be summa- ment and Investors Relations Team • Entrepreneurship 3. Employees rized as follows: • Digitalization of New National Payment System • Cyber Security Stakeholder Channels and Frequency Feedback and Interests National Community • Partnerships with Nonprofit • Accessibility Initiatives Organizations • Partnership and Investment in Shareholders and • Quarterly Financial Results • Financial Performance • Periodic Mutual Press Releases Infrastructure of Health Programs Investors • Annual Analysts and Investors Meeting • Sustainable Investment and Lending • Social Media Announcements • Support in Sports Activities and • The Annual General Meeting • Environmental, Social, and • Programmers, Initiatives, Sponsor- Cultural and Social Development Governance (ESG) ships, and Donations for Cultural and • Empowerment of Youth • Reputational Management Social Developments • Affordable Banking • Accessible Branches • Financial Inclusion Board of Directors • Board Meetings • Capital Positioning • Annual CIB Foundation Activity Report • Financial Literacy • Board Committee Meetings • Reputational Management • Annual CIB Report • Board Strategy Meeting • CIB New Corporate Strategy • Annual Report • Business Continuity • Annual General Meeting • Digital Leadership Materiality • Access to Finance (G102-44) - (G102-46) - (G102-47) - (G102-49) • Financial Literacy Identification of Our Materiality Issues • Environmental Practices The Bank reviews and considers all issues, chal- our stakeholders’ engagement, the Bank undertook • Community Commitments lenges, and trends raised at both the national rigorous discussions with our internal and external Employees • Annual Assessment • Training and Development and international level. We take guidance and stakeholders on the potential impacts on both the • Ongoing Coaching and Supervision • Benefits and Compensation reference from the United Nations’ Sustainable business and the external environment. • Training Sessions Development Goals (SDGs), African Agenda 2063, • Internal Meetings on all Egypt National Priorities, and the Central Bank of Prioritization of Materiality Issues Departmental Levels Egypt’s regulations and guidelines. Through discussion with our stakeholders, Industry Associates • UNEP-FI • Commitment to Responsible Banking the preliminary list of material issues is and Sustainability • Bloomberg Gender-Equality Index Principles In 2019, we continued to focus on the main ma- mapped with the Business Strategy and Partners • Annual CDP Reporting • Practices for Gender-Equality terial issues since Egypt’s 2017 economic reform prioritized across our Materiality Matrix, • FTSE4Good Sustainability Index • Energy Efficiency and Waste program. However, with the strategic sustainability reflecting importance to our stakeholders vs. Management and digital transformation direction, more topics the significance and impact of the economy, • Carbon Emission have emerged to take the lead on our map. Through environment, and community.
24 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 25 Material Topics and Priority
Financial Performance Topic Boundaries Shortlisted Material Topics Priority Outside the Bank Governance and Compliance Financial Inclusion Operational Efficiency Financial Performance High Shareholders Employee Wellbeing and Development High Customer Care Privacy and Security Digital leadership Governance and Compliance High Customers Business Efficiency and High Shareholders Continuity Financial Inclusion High Customers
High Society Sustainable Investment and Employee Wellbeing and High Society Lending Women Empowerment Development High ESG Youth Empowerment Privacy and Security High Customers Sustainable and Responsible Green Finance Procurement High Social and Community Reducing Environmental Investment Women Empowerment Medium Customers Footprint High Society Youth Empowerment Medium Customers High Society Green Finance Medium Society High Customers Environment Social and Community Investment Medium Beneficiaries High Society Digital leadership High Customers Medium Society High/High Medium/High High/Medium Medium/Medium Business Efficiency and Continuity High Shareholders Medium Customers Operational Efficiency High Customers Medium Customer Care High Customers Medium Sustainable and Responsible Medium Suppliers Procurement Medium Reducing Environmental Medium Society Footprint Medium Environment Sustainable Investment and Medium Shareholders Lending Medium Customers ESG Medium Shareholders Medium
26 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 27 Responsible Banking
CIB has taken the lead in Egypt in forming in 2018 for the drafting of the new initiative. As international partnerships that address a founding signatory, CIB is committing to stra- responsible banking, the empowerment of tegically align its business with the SDGs and small businesses, financial literacy, and cor- the Paris Agreement on Climate Change. The porate commitment to climate action. The six UNEP-FI principles, alignment, impact, cli- Bank continues to act as a domestic and re- ents and customers, stakeholders, governance gional influencer in promoting the UNEP-FI and target setting, and transparency and Principals for Responsible Banking while accountability, are in line with CIB’s sustain- capitalizing on CIB’s Green Finance initiative ability strategy and pillars. to introduce new products beyond energy efficiency and renewable energy technologies Accordingly, CIB conducts gap analysis and that will have an impact on the Egyptian develops a strategy that will ultimately help in community as a whole. achieving Egypt Vision 2030, the UN SDGs, and the African Agenda 2063. Today, the PRBs are UNEP-FI Principles for Responsible joined by a coalition of 130 banks worldwide, Banking (PRBs) representing over USD 47 trillion in assets, The Principles for Responsible Banking (PRBs) in committing to taking on a crucial role in is an initiative of the United Nations Environ- achieving a sustainable future. ment Program Finance Initiative (UNEP-FI) and 30 founding banks. The PRBs are the first By signing the principles, CIB commits to principles specifically for banking institutions being transparent on both its positive and to encompass social, environmental, and gov- negative impact on people and the planet. CIB ernance practices as part of their day-to-day will focus on where it has the greatest impact operations. They were launched and became – in its core business – and set, publish, and fully operational in September 2019. implement ambitious targets to scale up pos- itive and address any negative impacts in line CIB was the first bank in Egypt to join the initia- with global and local goals. tive until other banks in the market got on board CIB is committing to strategically align its business with the SDGs and the Paris Agreement on Climate Change
28 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 29 DIGITAL TRANSFORMATION
30 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 31 Enhancing Our Digital Infrastructure
Digitalization is a tool to ease the automation investment in data analytics, which has Data Science: The Tool for of daily operations, increase operational effi- supported our decision-making processes. Digital Transformation ciency, and contribute to major cost savings Over the last year, CIB has been re-enforcing Data science is becoming an essential tool, es- for corporations. Now, with the progressive its digital infrastructure, as we acknowledge pecially for industry leaders, to grow revenue, changes and fast-paced technological ad- that artificial intelligence, blockchain, cloud, enter new markets, change the nature of their Data vancements, our customers’ needs would not and data (ABCD) will play a pivotal role in relationship with customers, and increase ef- Warehouse have been fully carried out without proper defining our mode of operations. ficiency. CIB’s data analytics strategy has been Data structured for long-term progress to serve Governance entire bank functions from central operations, support functions, product and service devel- Data Sustainable Business Growth Economic, Social, and Environmental Impact opment to marketing and communication. In Analytics the fast-changing and dynamic global arena, CIB’s Analytics and Data Management divi- Build a better understanding of products- and Build a better understanding of sustainability- sion ensures that the Bank is at the forefront Data services-related opportunities in both existing related opportunities in both existing and of change, through its emphasis on data sci- Data Reporting and potential market segments potential market segments ence and analytics, data democratization, and Analysis Drive operational efficiency through automation Provide digital solutions that are secure, governance and performance management. and resources efficiency inclusive, and accessible to all CIB’s structured approach to managing the flow of data and information inside the Bank, All Leading to a Responsible Business Model from initial storage, quality improvement, basic reporting to analysis and analytics; where we manage to transform data into knowledge A Customer Lifetime Value Model Digital Strategy that provides innovative solutions for all the This tool assesses and identifies customers Developing our digital capabilities to tap into financial inclusion efforts are compliant with Bank’s areas and functions. who deserve preferential rates based on their financial inclusion opportunities, lower the regulatory guidelines. lifetime value. It also guides CIB on which cost to serve, and decrease turnaround time to Being a customer-centric organization, we clients to target and build a long-term rela- ensure operational efficiency and allocation of CIB Digital Channels utilize data science and analytics to better serve tionship with, by offering them better prices resources. CIB’s digital business plan aims at CIB’s digital channels include well-established our customers and provide them with tailored and services. improving the customer experience, increasing intranet and Mobile Banking platforms, a fully products and services that cater to their ever- migration and automation ratios, optimizing developed Intelligent Voice Response (IVR), changing needs. Credit Card Purchase Behavior Segmentation costs, and generating revenue. chatbot and contact center framework, and a To segment credit card users based on wide-reaching network of ATMs and POS ma- Intelligent Product Recommendation Engine purchase behaviors in order to provide the Digital Governance chines. Today, CIB clients can make payments This AI-driven tool recommends the next cards business team with distinct customer CIB’s digital business plan implementation is using the mobile wallet application, CIB Smart best product for the customer, taking into segments characterized by well-defined be- handled through two core groups: The Analytics Wallet, to transfer money, pay bills, and make consideration the customers’ current product haviors, interests, and preferences. and Data Management division and the Digital online purchases. portfolio, segment, and product usage, and Banking and GTB group, both divisions work then targeting the right customer with the Real-Time Media Analytics Project together seamlessly to adhere to CIB’s digital Digital Transformation at CIB right product at the right time. This model assesses consumer perceptions business plan and transform the Bank into the Since the launch of CIB’s digital transforma- of CIB brand and products by providing re- digital bank of the future. The digital gover- tion strategy, significant progress has been Income Imputation Model al-time displays and easy to use dashboards to nance team manages collaboration between made on all fronts. CIB is ideally positioned This tool is developed to estimate income inform and help define our marketing strategy the Global Transaction and Digital Banking to continue building on its current framework for customers with no readily available in- and approach. division and the Bank’s internal stakeholders, to drive full digitalization across the entirety come-proof to better cater to asset and liability the Central Bank of Egypt, and other external of its day-to-day operations in the coming product needs. This opens the door for CIB to Young Professional’s Initiative stakeholders. This is to ensure compliance years. The Bank strives for the digital trans- lead the financial sector once again and lend This project helped CIB to develop different across the Bank’s digital channels, challenge formation of its entire business, from product to customers based on surrogate programs as bundles of suggested products tailored to the stakeholders to adopt new technologies while development to risk management and human per CBE regulations. needs of the youth customer segment. ensuring that digital products, strategies, and capital management.
32 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 33 Digital Lending Program In 2018, the team launched a program to pen- with low volume POS, as prospective candi- etrate an untapped market of credit seekers, dates for efficiency improvements. based on their history. Expense Monitoring System Moreover, having operational efficiency as a stra- This is an improved tool that was implemented by tegic goal, the Bank’s ADM group developed tools Enterprise Performance Measurement (EPM) sys- to contribute to cost savings, revenue generation, tems to maintain efficiency throughout the Bank. and the betterment of our back-end workflow. ATM Location Optimization Model Call Center Demand Forecasting Model An ATM location optimization model was im- This tool assists the call center team to increase plemented, which supports the business with their efficiency by estimating the number of their ATM location decisions, to ensure prox- incoming calls, which leads to the betterment imity to all our customers. of planning and resource allocation. Last but not least, in the efforts of safeguarding Merchant Acquiring Profitability Strategy the Bank and our customers against fraud and (MAPS) Project emerging risks, the ADM team developed the The aim of this project was to improve the ef- following model: ficiency and increase the profitability of POSs through the introduction of new methods of Anomaly-Detection Model merchant segmentation. The value-added To better identify and mitigate risk, in 2018, of this model is to provide an overview of an anomaly-detection model was developed the impact of Dynamic Currency Conversion to minimize fraud by identifying, monitoring, (DCC) revenue on profitability, recalibrated and controlling fraudulent customer behavior the merchant’s attention on DCC, and enabled that suggests a threat of tax evasion under CBE the Bank to identify merchants, characterized anti-money laundering laws and regulations.
DATA INFORMATION KNOWLEDGE
34 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 35 Partnerships for Innovative Innovation Banking Experiences Our digital transformation would not have In its quest to develop promising digital trans- been possible without true cultural and mind- formation initiatives, CIB engaged in several set changes. Our digital thinking has been multilateral task forces and regional forces alike. part of our transformational journey, both CIB joined the World Economic Forum (Africa), internally and externally. In this context, the Smart Africa, and the European and African Bank fosters innovation and encourages en- Union’s Digital Economy Task Force (EU AU trepreneurship through its innovation lab and DETF). The Bank also partnered with Carnegie its contribution to all sound incubators and Mellon University, a global leading data science accelerators in the market. Moreover, CVen- university, to provide real-life business case tures, Egypt’s first corporate venture capital practicum courses to their Master of Science firm, serves as our investment arm and focus- in Information Technology (MSIT) degree pro- es primarily on investing in transformational gram cohort in Kigali, Rwanda. The Bank also fintech startups. (Read more on: Innovation cooperated with JP Morgan Chase and 160 other and Entrepreneurship) banks in 2019 to develop its propriety Block- chain Interbank Information Network (IIN), International Recognition which allows for the exchange of information CIB is the first Middle Eastern company in real-time to verify payment approvals. This to be subject of a London Business School infrastructure will offer beneficiaries simplified Case Study, selected in recognition of its da- and expedited global cross-border payments in ta-driven, human-centric approach to leading every major market. transformation in the face of macroeconomic challenges (2018). Moreover, our analytics and Operational Efficiency and data management team was awarded the Inter- Customer Experience national Data Group’s Digital Edge 50 Award, On the operational front, CIB continues to for the branch customer journey simulator focus on increasing digital transformation and project for the category of Artificial Intelligence, automation rates along with enhancing cost Machine Learning, and Cognitive Computing. synergies and increasing revenues. By incorpo- rating digital and technological advancements and artificial intelligence, we ensure operational efficiency and improved customer experience. (Read more on: Empowering Our Business, and Our Customer Experience) Financial Inclusion CIB continuously collaborates with national entities and regulatory bodies such as the Fed- eration of Egyptian Banks (FEB), the Central Bank of Egypt (CBE), and others on achieving inclusive economic growth and Egypt’s trans- formation into a cashless society. Through such platforms, we share our technical expertise and newly adopted technologies to help provide financial services to the unbanked and under- served populations, therefore boost Egypt’s financial inclusion strategy. (Read more on: Financial Inclusion and Financial Literacy, and Empowering our National Economy)
36 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 37 Digital Transformation and Sustainability
The digitalization-sustainability convergence Environmental, Social, and in business offers both opportunities and Governance Integration challenges within the organization. The dig- In line with CIB’s pioneering efforts to create shared italization of the financial sector serves CIB’s value and manage its environmental footprint approach to creating shared value. In line through the integration of social, environmental, with our value creation model, our digitali- and governance aspects of all its operations, we zation policies and practices across the Bank work on utilizing our digital capabilities and ex- creates value not only to our business, but ploring different methods of digital tools to track, also to our customers, community, economy, measure, and monitor our environmental footprint and environment. and reduce potential negative social and/or envi- ronmental direct and/or indirect impacts. (Read Digital Banking Solutions more on: Managing Environmental Footprint) As part of our value creation and data-driven approach to our product offering, we integrate Cyber Security and Customer Privacy financial technologies to revolutionize our finan- Our digital culture comes with a commitment cial services. We introduce innovative banking to ensure that our customers enjoy a secure, experiences that is core to our commitment to simple, and trusted experience that includes achieving financial inclusion and having a positive the right advice and support no matter when, economic impact. This is in addition to achieving where, and how they interact with the Bank. our goals of operations and products and services At CIB, we have a dedicated team to preserve efficiencies. (Read more on: Economic Impact on the Bank’s cyber security and shield its Customers, Business, and National Economy) It stakeholders against cyber-attacks, security is equally important to highlight our leadership breaches, and risks. To this end, we capitalize in utilizing data-science for a comprehensive on our expertise of international standards understanding of customer behavior. We realize and global best practices along with our how data-science is essential for the development vigorous and sturdy cyber security defense of more innovative and efficient products and ser- system to provide full protection against vices. (Read more on: Data Science: The Tool for potential breaches and threats. (Read more Digital Transformation) on: Business Continuity)
Policies and Goals Value Creation Outcomes Practices
Economic Impact Digital Banking Sustainable Business Operational and Financial Solutions Growth Efficiency Inclusion Green Finance ESG Integration Economic, Product and Services Environment and Efficiency Cyber Security Customer Experience Social Impact and Customer Privacy
38 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 39 DRIVING ECONOMIC GROWTH: AN INCLUSIVE BUSINESS
Journey 1 Economic Impact on Customers, Business, and the National Economy
Journey 2 Financial Inclusion and Financial Literacy
Journey 3 Supply Chain Management
40 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 41 Creating Value for all Our Stakeholders
Journey 1 Economic Impact on Customers, Business, Empowering Our Customers, Our and the National Economy Business, and the National Economy
At CIB, we are committed to creating eco- • Knowing our customers and enhancing nomic value, not only for our business, but our understanding of their aspirations, also for our customers (individuals and limitations, and needs, which allows them businesses) and our national economy. We to mitigate any financial risk ahead of time. put our customers first by bringing them top financial services that cater to their changing Traditional Banking needs. We believe that innovation is crucial Retail Banking VALUE TO OUR VALUE TO OUR VALUE TO OUR to achieving business excellence, which is Serving a broad range of customer segments CUSTOMERS BUSINESS ECONOMY why we rely on our team of talented and ded- (Prime, Plus, Wealth, and Private), CIB consum- icated employees to deliver the best advisory er banking offers customer-centric solutions services that accompany our wide array of tailored to each segment and works to deliver financial solutions. On the digital arena, our a truly unique experience to every client. The digital strategy is geared and aimed at achiev- products offered are diversified from personal to ing sustainable business growth and fostering specialized lending solutions, cash management our sustainability commitment through the services to credit and debit card offerings. creation of value: by honoring our promise of by increasing our profitability by boosting financial Mass customers are served through the Prime empowering our customers and operational efficiency; inclusion and leading the 1. Value to our customers by honoring our segment, which focuses on the more specific to achieve their best financial financial sector in supporting promise of empowering our customers to needs of different sub-segments, including aspirations and growth by sustainable business. achieve their best financial aspirations and Millennials, Payroll Blue Collars, Payroll White keeping them ahead of changes; growth by keeping them ahead of changes; Collars, and Families. In 2019, the Prime Segment achieved remarkable figures in terms of assets, 2. Value to our business by increasing our liabilities, and profitability margins. This success profitability and operational efficiency; was possible thanks to the implementation of key initiatives, such as 1) cost optimization by 3. Value to our economy by boosting financial aligning incentives with digital migration objec- inclusion and leading the financial sector in tives; 2) CRM with bi-weekly campaigns to drive supporting sustainable business. assets penetration; 3) differentiated marketing campaigns based on behavioral segmentation. Empowering Our Customers Every year, CIB’s performance demonstrates its Consumer Loans commitment to sustainable economic growth We offer a wide range of loans that assist our and financial inclusion for its customers through: customers to flourish economically, socially, • Improving existing services and products to and environmentally. This includes personal better cater to customers’ needs, allowing loans, travel loans, educational loans, and solar businesses and individuals to efficiently loans. (Read more on: Managing Environmen- manage their finances; tal Footprint: Green Finance) CIB’s personal loan portfolio is ranked third among all Egyp- • Introducing new digital services that are tian banks and first among private banks. cost-efficient for our customers; Consumer Loans are the main asset income
42 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 43 generator for Consumer Banking, standing at non-financial benefits. (Read more on Em- 79% of the total loan portfolio book. We aim powering Women and Empowering Youth) to continue expanding through portfolio op- timization and focused acquisition programs A key pillar in our success in 2019 was our to grow our market share of both outstanding quick and effective response to changing in- and new acquisitions. Some of the main prod- terest rates and pricing by both the CBE and ucts that were offered in 2019 are: competition. Our approach has consistently been to correctly assess product prices with multiple pricing tools, like selective pricing for TDs, tiered pricing for savings accounts, Travel Loan: The loan allows customers to pur- and restrictive pricing for FCY deposit. chase travel packages and pay in installments over five years. Cards CIB cards business offers a variety of credit, debit, and prepaid card options tailored to meet cus- tomer-specific financial needs. CIB cardholders Educational Loan: We signed a tie-up with benefit from 24/7 access to all accounts through ESLSCA Business School targeting customers our digital platform and wide range of ATMs. They applying for postgraduate studies, offering also enjoy easy payment plans and discounts on them preferential interest rates and several a wide network of merchants offering 0% interest exclusive features. and discounts that reach up to 50%. CIB cards are equipped with the necessary technologies that ensure security. In 2019, we introduced several acquisition campaigns and new products, such as Solfa we Aman Loan: As part of our com- the new contactless payment feature and Meeza mitment to work towards financial inclusion prepaid and debit cards. (Read more on: Financial initiatives, we have developed a unique Inclusion and Financial Literacy) product to cater to our lower-income payroll customers; by offering a loan bundle with mi- Contactless Payments cro-insurance provided by AXA. CIB launched the new contactless payment feature on all debit, credit cards, and select- ed POS machines for the first time in Egypt. The technology that was recently adopted in CBE Initiatives: We participated in two CBE ini- Egypt allows CIB debit and credit cardholders tiatives aimed at women and youth to encourage to tap their cards over the point of sale (POS) them to apply for personal loans by offering them machine without inserting a PIN when pur- discounted admin fees during the promotion chasing their daily items, making checkout period. (Read more on: Empowering Women and faster and more convenient. Empowering Youth)
Liabilities CIB offers a wide range of current and savings “A simple tap of the accounts that cater to the needs of the wide segment of customers. In 2019, we launched card is all it takes to a new account opening capability to improve sales and cross-selling, reduce costs, and attract New to Bank customers. We also re- pay at checkout.” vamped our existing Save and Safe Account to Premium Savers, offering a newly struc- CIB was ready with the technology and tools for tured and propositioned savings account the project, therefore when it was approved and with a unique group of non-interest benefits. launched by the CBE, the Bank experienced no Our product offerings provide customers difficulties, the launch was very smooth, and we with an attractive balance of financial and were the first to roll it out.
44 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 45 With cards portfolio of more than 574,000 active sectors such as power, real estate, tele- credit cards and more than 1.4 million debit com, food and beverages, petrochemicals, and cards with the highest spend market share in oil and gas. The group’s loan and investment the country. CIB was able to rapidly capture portfolio recorded EGP 100 billion as of De- market share growing to the largest player cember 2019 compared to EGP 88 billion as of by number of credit cards reached with total December 2018. ENR EGP 4.28 billion. We maintained both healthy RAROC above 35% and solid credit Debt Capital Market performance whilst dropping the cost to In line with our role in supporting our economy, income ratio. in cooperation with several partner banks, CIB has worked in accordance with international Bonus Points: Loyalty Program lenders such as EBRD and Proparco to promote CIB provides a loyalty program that increases environmental sustainability in Egypt and customer retention and attracts new custom- became the only local bank to act as a security ers. Cardholders can earn bonus points through agent on their behalf for projects related to our exceptional rewards program every time renewable energy specifically under the feed-in they use their cards and redeem their points for tariff program — a national landmark project cash back, e-vouchers, and trip bookings. supported by the government.
Institutional Banking CIB has worked in accordance with interna- For over 40 years, CIB has been diligently tional lenders, such as EBRD and Proparco, to providing top financial services for corporates promote environmental sustainability in Egypt. customers facilitating their business opera- CIB’s Debt Capital Markets division (DCM) tions and impacting the economy as a whole. prides itself on its unmatched track record Our Institutional Banking group serves our and experience in underwriting, structuring, customers through several divisions that col- and arranging of syndicated loans and project laborate to provide the simplest, convenient, financing, as well as securitization transactions advanced financial service that assist corpo- and bond issuance. In addition to closing 75% rates in their journey of economic growth. The of securitization deals in Egypt, firmly cement- Institutional Banking group contributed 64.9% ing CIB’s position as the top Egyptian bank to CIB’s loan growth during 2019. structuring securitizations in the local market, new sectors have been penetrated, including Corporate Banking and Global Microfinance and Consumer Finance. Corporate Relations We acknowledge the direct and indirect impact we have on the economy through our lending facilities to corporates. That’s why we support our clients by providing them with the most suitable and convenient solutions and support their operations in segments that will maintain sustainable development. The group has ventured into new potential segments and sub-segments such as educa- tion, frozen vegetables, hospitals, leather, and wood and furniture.
Furthermore, the group has expanded the ex- isting client network to tap into further market opportunities, by financing mega-projects in
46 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 47 Direct Investment Group Our Digital Platforms Mobile Wallet Supporting our commitment to sustainable as a full-fledged financial partner to Egypt’s The Bank’s digital channels achieved total cost CIB mobile payment (Smart Wallet) provides development and our national economic business community. savings of EGP 2.2 billion as of December 2019, an innovative experience that serves both direction, we have invested in key economic recording a y-o-y increase of 22% through 74.4 banked and unbanked customer segments by sectors, through our investing arm DIG, in- At CIB, our credit policies are geared towards million transactions. providing a convenient, secure, and cost-effec- cluding the education and healthcare sectors. enabling sustainable economic activities for tive way to make purchases on mobile devices. These sectors are characterized by having a our corporate customers. By financing projects Online Banking As of December 2019, the wallet customer base strong social and economic impact. DIG has that accelerate clients’ transitions and support CIB’s Online Banking market share represents increased to 625,167, with an activity rate of leveraged its extended network to execute clients that are contributing to solutions to 25% of the Egyptian Banking sector. Online Bank- 18% over 90 days. the acquisition of a minority stake in a mar- environmental and social challenges. (Read ing channels (Internet and Mobile Banking) have ket-leading pharmaceutical company in a more on: Green Finance) Our Credit Facilities achieved total cost savings of EGP 500 million as CIB Chatbot non-traditionally structured transaction. The equally and extensively extend to SMEs. (Read of December 2019, recording a y-o-y increase of acquisition, in addition to the equity market more on: Supporting SMEs) 61%, and a total customer base increase of 45% exposure in general, solidifies CIB’s position y-o-y reaching 592,000 users with an activity rate of 64% as of December 2019.
Internet Banking Internet Banking played a vital role in offload- Digital Banking ing CIB branches as credit card settlement, internal transfer, and external transfer trans- action migration rate from branches reached Being a channel for acquiring new 91%, 76%, and 39%, respectively. It is worth customers noting that outgoing and internal transfer migration rates proceeded via Internet Bank- Creating new touch points for existing ing for corporate customers reached 87% and CIB customers 62%, respectively.
Generating efficiencies and reducing Mobile Banking costs across the Bank Mobile Banking enables customers to access their accounts with ease and convenience and to conduct a broad range of financial transac- Increasing migration and tions. Through the app, they can manage their Spearheading digital transformation of contact Digital Banking automation ratios finances, beneficiaries, schedule transactions, centers in Egypt, in 2019, CIB introduced “Zaki The Digital Banking group serves and donate to favorite charities via numerous the Bot” as the first chatbot in Egypt introduced the Bank by: security features. To better serve its growing on social media platforms and the Bank website. Creating new revenue streams user base, in 2019, CIB revamped the user in- This new customer touchpoint is the ultimate terface and experience of its Mobile Banking virtual assistant, as it uses artificial intelligence Enhancing customer experience and application, which saw a 114% y-o-y increase in to help CIB customers and non-customers learn integrating channels seamlessly transactions as of December 2019. about the Bank’s products and find the nearest ATM or branch and its working hours. The Phone Banking chatbot is bilingual, serving customers in both Enabling new market segments, The IVR revamp, together with migration English and colloquial Arabic. Zaki the Bot also specifically financial inclusion efforts, boosted agents’ productivity and re- has the potential to become a key channel for duced the call center’s operational costs, with a customer data that will help the Bank deliver y-o-y increase by 24% in the IVR log-in to reach more client-focused solutions. In 2020, Zaki the Driving product and service innovation 2.1 million with 84% migration rate of eligible Bot’s services will be expanded to serve new cus- inquiries from the call center. A 22% y-o-y tomer segments, such as corporate and business increase in the IVR customer base to reach banking, where the chatbot can provide smooth, 687,000 customers. real-time support for product inquiries.
48 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 49 CIB Aspired Impact
through the CPS platform reached 32% in terms loan origination resulting in better customer of number of transactions of 35,000, and 26% in experience, service delivery turn-around-time Offer real-time, speedy Expand customers’ terms of transaction value amounting to EGP (TAT), and business growth. support, and consistent Optimize operational cost engagement and increase replies for CIB customers 12.4 billion across all banks in Egypt. In 2020, conversion rates and non-customers we expect that e-finance services will be made We also upgraded the core banking system to available through our ATMs to help meet the ensure a seamless customer journey. IT also Egyptian government’s strategy for achieving enhanced the Bank’s infrastructure resiliency a cashless society, which greatly improves the through the implementation of network virtu- customer experience. alization phase one and started the rollout of a new virtual desktop platform. Offloading call center Newly added touch point agents and branches for customer Empowering Our Business CIB’s business excellence journey is achieved Cost Synergy through our efforts to increase operational In our efforts to reduce and sometimes eliminate Objectives efficiency, maintain a cost-effective business expenses, there was no better momentum than Zaki the bot model, and increase our profitability. Our the one achieved through the optimization of endeavor to improve product offerings by our digital channels. Our Cost Synergy approach providing digital channels to consumers has was obviously reflected in increased revenues: Enhance customer Explore artificial strongly impacted our business. Our digital • EGP 480 million generated from migrating cash experience intelligence capabilities channels vary between Online Banking (In- management transactions to digital channels ternet and Mobile), ATM Network, Phone (as of December 2019) up 170% y-o-y Banking, Global Transaction Banking, and • EGP 1.2 billion generated from migrating Corporate Payments Service. transactions to the Bank’s ATM channel (as of December 2019), flat y-o-y “Our digital transformation journey creates value for our corporate Operational Efficiency • EGP 500 million generated from migrating customers by providing them with innovative digital solutions that save By migrating transactions away from branches, transactions to the Bank’s Internet Banking them time and energy.” we have successfully reduced processing times channel (as of December 2019), up 61% y-o-y and cost-to-income ratios. The result is im- proved customer adoption rates and enhanced Empowering Our Trade Finance employee efficiency. In addition to holding National Economy Trade Finance Online is CIB’s market-leading across all portals to enhance customer expe- almost 25% market share for both Internet and Enabling Digital Platforms online trade channel, offering clients the ability rience, reducing handling times for issuing Mobile Banking, it is worth mentioning that CIB The banking system has always been the pivotal to conduct and manage their trade finance trans- tokens, and revamping online portals (CIB is ranked first in Egypt for digital domestic trans- player in the growth of the national economy, actions online. The channel provides customers Business Online and ACH) to improve cus- fers. CIB brought state-of-the-art technology for but today, the creation of new capitals through transparent and clear information about all their tomer experience and decrease transaction computing systems, fully virtualized platforms, businesses and individuals had to swiftly adapt to transactions, while eliminating paperwork and turnaround times. and powerful enterprise storage appliances. The the trends and needs of new customers. Enabling saving them time and money. In 2019, we began • Integrating with corporate financial systems, whole infrastructure caters to one of the most new digital platforms present a diverse range of migrating customers to a new Export Direct Col- such as Oracle and ERB, and offering an API advanced data centers in the banking sector. true value propositions to serve every segment of lection service on the CIB Business Online portal. gateway for third parties. the economy. Ensuring such collective wealth and The service allows Business Online customers to In 2019, CIB upgraded its core system to the T24 capital formation through the banking sector is the send shipping documents directly to CIB without 2019 saw a 29% y-o-y increase in the customer Core Banking system to improve operational way forward for every national growth process. visiting a branch and lets them track the entire base to 12,000 corporate customers, a migra- efficiency. The shift facilitated the introduction journey. (Read more on: Supporting SMEs) tion rate of 87% for all outgoing transfers, a of an arrangement architecture module, which Global Transaction Banking migration rate of 62% for all internal transfers, is a new core banking engine outfitted with a CIB was committed to introducing the most Cash Management and a 32% y-o-y increase in the number of product builder to serve all business segments. comprehensive payment products on the CIB is committed to introducing the most com- transactions to 2.9 million. The new module will provide future products e-payments market, as well as a number of prehensive payment products on the e-payments with enhanced technology, system stability, and core digital efforts in cash management. As a market. Cash management at CIB focuses on a Governmental Payment Products decreased time to market. result of its digital transformation efforts, as number of core digital efforts, including: In cooperation with e-finance, CIB moved bill of 2019, CIB is ranked first in Egypt for digital • Increasing CIB’s market share for interna- payment services for customers to the digital Moreover, the operations and IT group domestic transfers through Automated Clear- tional remittances. platform using E-Pay’s generalized portal. A key finalized the Sigma program, which aims ing House (ACH), while holding 25% market • Providing custody, securities, liquidity, and objective for 2020 is to ease the burden of gov- to streamline customer service delivery at share for both Internet and Mobile Banking. treasury modules on our online platform. ernmental payment processes in the branches. branches. The program has contributed to the Also, in 2019, synergies for cash management • Revamping the One Time Password (OTP) CIB’s market share in governmental payments successful rollout of account openings and increased 170% y-o-y to reach EGP 480 million,
50 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 51 “As of 2019, CIB is ranked first in Egypt for digital domestic transfers through while cash management revenue reached EGP to allow the customer to access a larger and less 37 million. Notably, outgoing and internal expensive merchant network in a rapid manner, ACH, while holding 25% market share transfers migration rates proceeded via Inter- compared to the traditional POS terminals. net Banking for corporate customers reached for both Internet and Mobile Banking.” 87% and 62% respectively. Innovation and Entrepreneurship CIB is positioned as a key supporter of the propositions (resulting in improved cost effi- and (ii) a channel for the long tail designed to Corporate Payment Service (CPS) platform nation’s entrepreneurial ecosystem, by building ciencies, complementary revenue streams, and increase sales and improve pharmacy efficiency E-Governmental Payments strategic partnerships with service providers smart banking solutions powered by next-gen- including product placement benefits, promo- As part of the Ministry of Finance’s aim to col- and startup incubators and accelerators to build eration customer experiences). tions, push lists, analytics, and market insights. lect all government payments electronically, a strong pipeline of potential entrepreneurs Furthermore, Yodawy works closely with insur- an agreement was reached between CIB and and startups to enrich our value proposition To stimulate innovation and ensure sustainable ance companies to enable better controls and e-finance, a company that develops and oper- and achieve financial inclusion. value-add, CVentures works closely with multiple governance of medical insurance claims through ates e-payment platforms and channels, agreed CIB stakeholders to explore, test, pilot, and dis- scalable, cutting-edge technology infrastructure. to enable customs, tax, and other government CIB Innovation Lab tribute vetted solutions across CIB’s platform. This authorities to receive payments through the The lab is the financial technology (fintech) and includes but is not limited to verticals that cater CIB is a partner in Fawry E-Pay portal. It is worth mentioning that there entrepreneurial hub of Egypt’s banking sector. It to unbanked and underserved segments, where Plus for Banking Services, was a 67% y-o-y increase in the number of trans- contributes to incubators and accelerators with high-volume financial transactions and tech-en- an agent bank financial actions to reach 35,000, a 69% y-o-y increase in workshops, a mentorship community, and support abled processes support better, more affordable service Company in which the customer base, and a total revenue of EGP for key events in the sector. CIB Innovation Lab customer-centric experiences, ranging from fi- it owns stakes of 23.5%. Acting on behalf of its 160 million as of December 2019. contributed to more than 35 events, enrolled more nancial inclusion and mobile banking to personal member banks, Fawry Plus’ innovative delivery than 30 mentors who have conducted over 150 finance and consumer lending; capital markets model helps bring financial services within reach Global Security Services (GSS) startups, and is in serious talks with more than 10. In and FX trading; financial infrastructure, remit- for millions among the unbanked population. CIB’s Global Security Services (GSS) is Egypt’s top addition, our Entrepreneurs Engagement Program tances, and money transfers; business banking provider of trustee services, handling 20 special pur- (EEP) supports startups who have fast and agile and SME lending; data analytics and AI, machine Fawry Plus is Egypt’s first agent banking com- pose vehicles (SPVs) out of 30 SPVs in the market, solutions by helping them transform their offerings learning, and applied blockchain technologies. pany, providing a wide array of banking and with total assets of EGP 16.5 billion. GSS attracted into a product-line to serve CIB’s departments. The financial services to end consumers and busi- new portfolios worth a total of EGP 29 billion diver- program extends CIB’s resources and brand-recog- CVentures offers a broad range of services in- nesses through a network of retail branches sified across scriptless and physical securities, while nition to the startups while enriching CIB’s market cluding but not limited to early-stage funding across Egypt, focusing on serving urban and fixed-income investments under custody increased value proposition via their unique offerings. and follow-on reserve, and technical, financial, underserved regions. Fawry Plus branches significantly, with a 29% growth in T-bills to reach and operational support designed to assist provide banking services, including limited EGP 61 billion as of December 2019. As part of our partnership with the American companies with their go-to-market strategies, KYC services and document collection re- University in Cairo (AUC) Venture Lab for fintech business building efforts, and scaling activities. quired for mobile wallet registration, prepaid For the 10th consecutive year, CIB was cycle 2019, we have commenced scouting for fin- Additionally, and on a best effort basis, CVentures and credit card issuance, loan issuance, and recognized as the best sub-custodian tech startups, in which CIB innovation lab joined leverages CIB’s partner network and internal account opening. Other services include col- in Egypt by Global Finance for the the pre-screening judging panel to shortlist eight resources to accelerate market adoption and lecting bank correspondence and mail, cash Bank’s distinguished services startups out of 15. These startups were provided product distribution. CVentures is geography withdrawal and deposits, repaying loan and with mentorship sessions and business trainings agnostic, primarily interested in investing in credit card dues, as well as various bill pay- Financial Technologies and with the VLab and CIB mentorship community. Seed, Series A, and Series B investment rounds. ments such as utility, telecom, subscription Financial Inclusion fees, taxes, and fines. Mobile Payment and Acceptance CVentures is currently invested in Yodawy, a As part of the national strategy towards financial CVentures was estab- pharmacy benefits platform and one-stop-shop CIB supported the CBE’s campaign for mobile inclusion, CIB is constantly developing payment lished in December digital e-commerce solution for medications, payments through partnering with Fawry for services through its mobile application (Smart 2018 to complement CIB’s innovation agenda health products, and insurance co-payment ben- Banking and Payment Technology Services, Wallet). In this regard, Quick Response (QR) and generate superior investment returns. efits, including an order processing and approval by launching the Smart Wallet through Code is a new payment method authorized by CVentures primarily invests in transformative gateway for pharmacies and health insurers “His,” which customers can pay bills, recharge their the CBE. In 2019, CIB introduced the QR Code fintech platforms capable of complimenting supported by a 24/7 call center. Additionally, mobile prepaid lines, and transfer money to via CIB Smart Wallet as a new payment method CIB’s digital transformation strategy, including Yodawy offers (i) smart routing capabilities other wallet holders in Egypt. (Read more on: which is a quick, secure, and convenient way to companies with best-in-class products and ser- and automatic approval processes designed to Financial Inclusion and Financial Literacy) process payments through mobile wallets, aimed vices, scalable business models, and disruptive detect outliers, prevent fraud, and reduce costs,
52 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 53 Journey 2 Financial Inclusion and Financial Literacy
Since the CBE declared financial inclusion needs. We also acknowledge that our financial as a national priority, CIB continues its com- inclusion journey must be in tandem with our mitment to serve the under-banked segments journey to promote financial literacy. by facilitating access to finance and financial products and services with close attention to In line with our value creation model, we invest- women, youth, SMEs, people with disabilities, ed in our digital capabilities and relied on our and low-income segments of the society. In this proximity to our customer to create value for journey, we rely on our sound financial growth the unbanked and underbanked. and understanding of customers’ individual
Value Creation Policies and Practices
Convience and Affordability Products and Services to All
Empowering Women Motivation and Empowerment Empowering Youth
Support and Partnership Supporting SMEs
Accessibility and Enablement Banking for People with Disability
Customer Proximity Access is key to financial inclusion, which paves the No. of Branches road towards sustainable development. To ensure Area Customer Proximity, we rely on both our human and Units and physical capital. Our highly qualified employ- ees and the accessibility of our branches and ATMs allow us to achieve financial inclusion. Cairo 120 Digital Technology and Innovation Highlights Proximity would only have been fully opti- • The average number of transactions Accessibility of financial products does not solely mized when they are properly supported by across the ATM network increased by 16% rest on providing simple and affordable products Alexandria 29 our intellectual capital and digital capabili- y-o-y, compared to transaction growth of and services. The proximity of the branches and ties, both of which have been developed over 12% in 2018. ATMs play an integral role in the inclusion of people the years to provide one of the most compre- • The ATM network grew by over 95 machines. in remote areas and extending across the country. Sinai and Canal 28 hensive digital financial services (DFS). CIB • 95% of cash deposits below EGP 10,000 mi- Our growing branch network serves customers worked tirelessly to provide several products grated to ATMs from in-branch deposits. across Egypt. In 2019, the Bank increased its branch and services that ensure the provision of • 98% of cash withdrawals below EGP 20,000 network by six branches, to bring the total branches Delta 15 affordable and simple financial products, migrated to ATMs. to 207. Moreover, ranked as the largest ATM net- both traditional and digital. (Read more on: • New utilities (i.e., electricity and water) work in the private sector and ranked third among Financial Inclusion and Financial Literacy: were added to ATM bill payment ser- Upper Egypt and Red Sea 15 all banks, CIB operates a network of 1,012 machines Products and Services to All; Empowering vices, contributing both to revenue and and 16,252 POSs covering Egypt’s 27 governorates. Our Customers) account growth.
54 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 55 balance required. It involves a minimum annual fee of only EGP 50 (under $4). Al- Smart Wallet though this product targets all segments of the society, yet it particularly opens an oppor- Convenience and tunity for youth and low-income customers to Affordability access banking and enables them to benefit Financial Inclusion from regulated deposits as well as payments and transaction services. Users by Age
300,000 In light of the importance of the financial inclu-
sion, the Easy savings account allows the youth 250,000 Support and Our Motivation and segment to have the ability and tools to save and manage their savings by removing the mini- Partnership Economic Empowerment 200,000 mum entry barrier that was required to open an People with Disabilities Diversity for Women and Value account, and applying a simple interest rate to Youth 150,000 Creation empower them with the skills and knowledge to make the right financial decisions. Most impor- tantly, the account encourages them to utilize the 100,000 digital platforms to save time and decrease costs. 50,000 Mobile Wallet 0 CIB Smart Wallet is a product aiming Less 20-25 26-35 36-50 Over 50 to encourage, enable, and empower than 20 Accessibility and customers. With Smart Wallet, custom- Enablement ers, banked or unbanked, can easily pay bills, recharge their mobile prepaid lines, and de- SMEs Users by Gender posit and withdraw funds from the ATM network or any of the Bank’s authorized bank- 600,000 ing agents. It promotes connectivity as it With the integration of Customer Proximity and affordable opportunities to manage their finances. allows users to transfer and receive money to 500,000 Digital Technology, our products and services have CIB has launched two different card types. The and from family members, or other wallet secured access to finance all our clients, while we Meeza Generic Prepaid Card (Karty) and the Meeza users in an easy, fast, and secure manner. 400,000 continue our focus on the following segments: Governmental Prepaid Card that is issued for gov- Smart Wallet also acts as a virtual online credit
Women, Youth, SMEs, and Persons with Disabilities. ernmental institutions provide easy solutions for card that can be used for making online pur- 300,000 salary transfers and pensions. Customers can use chases. Moreover, we have increased corporate Our Economic Value Creation this card for cash withdrawals, local purchases, and collaboration for payroll disbursement using 200,000 Convenience and online shopping. It can be reloaded multiple times Smart Wallet, increasing corporate participa- Affordability from all CIB branches and ATMs. tion by 60% in 2019 y-o-y. 100,000 One of the many challenges in emerging econ- omies and low-income populations is their Aligning with the CBE Financial Inclusion In 2019, the Smart Wallet’s customer base 0 unwillingness to bear or go through the burden strategy of transitioning to a cashless society, increased by 65% y-o-y to 625,167 wallets as of Female Male of the processes for opening bank accounts. To Meeza prepaid cards support the CBE ini- December 2019, with the highest activity rate reach out to this unbanked segment, CIB serves tiative to create a national payment scheme in the Egyptian market to reach 18% over 90 them through a number of products. (NPS) and issue cards that are locally brand- days. The value of transactions proceeded via ed. In a smart move leveraging on government Smart Wallet reached EGP 1.4 billion as of De- Products and Services to All payments, customers can pay different gov- cember 2019, reaching 5% market share. Meeza Cards ernment payments and deposit or load the 257,690 In a significant leap towards financial inclusion, in card through CIB ATMs, 24/7. Support and Presence 2019, CIB added “Meeza” cards to its cards port- Hosting the International Institution New customers in folio. Meeza is an anonymous card that is issued Easy Accounts of Finance (IIF) Digital Financial 2019 instantly using the national ID only and can be The Easy account is an accessible account Inclusion Summit used by customers immediately. It allows all seg- characterized by zero minimum deposit, zero CIB hosted the IIF Digital Financial Summit ments of society to have suitable, accessible, and account opening fees, and zero minimum twice this year as part of its interest in
56 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 57 addressing key issues related to developments CIB is one of the leading Egyptian banks to in the global banking sector in different fields. use gender segmentation during research and The aim of the event is to exchange experiences product design. Articulating a clear business on key topics currently revolving around ways of case for this market was the stepping-stone spreading financial inclusion, establishing part- to provide individualized banking experience nerships between financial services companies, for women and contributing to a real start for startups, and public-private partnerships, and gender equality. deploy machine learning applications regard- ing consumer behavior, credit, digital identity, Heya Credit Card and cross-border interoperability. The summit Heya Credit Card is a ladies-only card that included many detailed panel discussions on gives them the opportunity to enjoy an excit- a number of important topics, such as digital ing shopping experience and exclusive offers integration through new technologies, and ways and discounts up to 40% across a wide range to use modern electronic systems that have of selected merchants. As a Heya credit card contributed effectively to target growth and holder, customers are automatically enrolled financial inclusion. in Heya life insurance.
Sponsoring the Aswan Women in Business Forum for Sustainable Peace In an effort to empower women and their abil- and Development ities to have their own business, CIB launched In 2019, CIB supported and par- “Women in Business” to support women-owned ticipated in the Aswan Forum businesses. (Read more on: Supporting SMEs) for Sustainable Peace and Development. Acting in its capacity as the Chairperson Micro-finance of the African Union 2019, Egypt took the On the microfinance front, CIB launched a initiative to launch the Aswan Forum for Sus- direct microfinance model through which a tainable Peace and Development in 2019. One service company reached end users directly on a of the topics discussed is “Harnessing Digital service-agreement basis. Since the introduction Financing and Financial Inclusion for Sus- of the new law on microfinance, which allows tainable Development and Peace”. It also shed companies to enter the industry to lend to light on the inclusivity in access to savings ac- micro-entrepreneurs, we have focused on the counts, loans, insurance, and other financial indirect microfinance model. Non-Bank Financial services, helped reduce poverty and inequal- Institutions O/S Loans extended to microfinance ity, achieved gender equality and women’s institutions grew this year. As of December 2019, economic empowerment, and facilitated Development Finance, together with Non-Bank Fi- access to health and other basic services. In nancial Institutions, have financed 150,376 active addition to how financial inclusion promotes micro-entrepreneurs, of which 55% are females. economic growth and jobs, it highlighted the The microfinance outstanding portfolio has- fi support of entrepreneurship and innovation, nanced 77% micro-projects in rural areas. 61% of especially of the youth. the current portfolio has supported microfinance commercial projects. Motivation and Empowerment Empowering Women Celebrating Women CIB has been at the forefront of women’s em- In celebration of Women’s Empowerment powerment through its efforts to promote financial Month, all women visiting CIB branches during inclusion and economic independence. Our goal is the month of March enjoyed zero admin fees on to enable women to become economically indepen- applications for unsecured personal. dent by providing them with dedicated solutions. Having low financial inclusion rates among women Empowering Youth hinders CIB’s ability to capitalize on opportunities At CIB, we believe that youth are the main driver pertaining to women in rural areas, and low-income of growth. They are the generation that will communities are historically the most non-includ- continue to carry out the responsibilities of pro- ed, unbanked segment in our society. moting sustainable development and leading the
58 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 59 way to a sustainable future. Empowering youth official ID. ISIC offers students many benefits, and is a role that the banking sector must advocate most importantly, introduces them to the banking for as a core element of corporate responsibility. system at an early age and teaches good money In 2019, CIB offered youth a number of tailored management. It also provides parents with the products that are suitable, affordable, and acces- ability to monitor the cardholder’s expenditure. sible, and provided them with an opportunity to be part of the financial system. With a current active portfolio of 1,429 cards, ISIC has an exclusive partnership with CIB used Prime Me Bundle for retail purchase, e-commerce, and cash with- In 2019, CIB launched Prime Me Bundle targeting drawals, where students can access over 42,000 the youth segment between the ages of 21 and 30, targeted benefits student discounts and can be offering them a range of benefits through the Bank’s used worldwide. Cardholders can enjoy up to 50% BONUS points reward scheme. Customers can discounts at more than 125,000 locations in 130 benefit from this bundle by opening an Easy cur- countries. This card is valid for one year only and rent account. It is centered on the Bank’s BONUS can be loaded from all CIB ATMs or branches. points scheme, allowing customers to gain more points through their banking activities. Not only do Support and Presence customers receive monthly BONUS points, but they Sponsoring World Youth can also receive additional BONUS points on their Forum (3rd Edition) debit and credit card transactions, referrals, loans, World Youth Forum is a plat- as well as by making at least ten transactions using form that sends a message of this, we employ a relationship-based approach that their debit card each month. This initiative encour- peace, prosperity, harmony, and progress to the Support and Partnership allows us to cater to the full SME spectrum with a ages more usage of debit cards to further boost the entire world. It engages youth from around the Supporting Small and comprehensive offering that suits different needs. digital platforms. In addition to the BONUS points, globe in an enriching set-up, allowing them to Medium Enterprises We utilize digital and innovative solutions to scale the bundle offers customers a number of exclusive exchange views and recommend initiatives to deci- A Relationship-Based Approach the business and reach customers’ expectations. discounts at select merchants. (Read more on: Fi- sion makers and influential figures. The forum is a For over ten years, CIB has been a strong advocate nancial Inclusion and Financial Literacy: Products chance for youth to engage with top policymakers. and supporter of SMEs through a comprehensive In line with our commitment to maintaining an and Services to All) This year the topics discussed were food security, range of financial solutions that cover all sectors inclusive business, we are constantly introducing and environment and climate, the blockchain, artificial and industries. CIB Business Banking has served updating our product offerings to improve product The Youth Offer intelligence, the Union for the Mediterranean, over 54,000 SMEs in the Egyptian market since 2011, fit for our clients’ needs and for different segments, In celebration of CBE Youth Day initiative, CIB women’s empowerment, art, and cinema. through a network of over 100 experienced Rela- focusing specifically on the underserved by enabling offered the “Youth Offer”, which included the tionship Managers across the country. them to become an active part of the formal banking financial inclusion account with which they can The World Youth Forum is attended by a wide sector. Business Banking offers its customers three enjoy an effortless banking experience with no range of participants, including heads of states and CIB maintained its dominant position in Egypt’s accounts to choose from, which are Easy Business Ac- account opening fees, the International Student government, international youth leaders, inspiring payment acceptance sector in 2019, attaining a mar- count, Super Business Account, and Current Account. Identification Card (ISIC), Meeza prepaid cards, youth in various fields, prominent international ket-leading share of 26% for POS transactions and a Smart Wallet application, and benefit from 0% figures, and youth groups from around the world. 19% market share for e-commerce transactions. In Qualified Relationship Managers admin fees on personal loans. addition, following the country’s push for financial CIB has over 100 highly-trained Relationship Sponsoring Arab and inclusion, CIB managed to activate all POS and e-com- Managers (RMs) across Egypt developing suc- CIB also conducted on-the-ground activations African Youth Platform merce platforms to accept the government-backed cessful partnerships, serving to guide and assist featuring the Smart Wallet to engage and interact (3rd Edition) Meeza card and launched QR acceptance to reach un- our clients through advisory services. with potential youth customers and encourage The Arab and African Youth tapped segments — a key enabler of payment business them to go digital and conduct their banking Platform was founded for youth in both regions to growth, especially with very small merchants. SME Academy: Through our SME Academy, we transactions online, saving time and effort. share and exchange experiences. Participants had ensure the ongoing capacity building of qualified the chance to discuss various topics that are of con- Our Value Proposition and dedicated officers. The academy is a technical International Student Identification cern to both Arab and African youth, with the aim of SMEs Banking Partner for success: a bank that training program designed for the Business Bank- Card (ISIC) fostering Arab and African cooperation. The topics understands your business, your needs, and your ing segment to select the best internal calibers to Launched in 2005, ISIC is a card targeting students discussed were financial technology and innovation daily challenges to help you to compete and grow. receive intensive, customized training on different starting from age 12 till the end of their academic and social entrepreneurships. The Arab and African domains to prepare them for their roles. In addition, years. Endorsed by UNESCO in Egypt, it offers Youth Platform held various sessions, workshops, Our Approach around 100 Business Banking RMs were included both virtual and plastic cards that allow students and roundtables, which bridged the gap between Our objective is to become the banking partner in the examination to receive the certification around the world to instantly prove their official our young promising leaders and top policy and for SMEs in Egypt by offering easy and convenient from the Association of Accredited Small Business student status in over 130 countries, acting as an decision makers. banking solutions that suit their needs. In doing Consultants (AASBC) program. This certification
60 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 61 focuses on the core competencies of SME oper- Our Easy Business Account requires no opening training consultancies, recruitment consultancies, offering them a special lending program with ations necessary for businesses and provides an fees and no minimum balance to ensure inclu- digital marketing agencies, audit firms, and ship- preferential lending rates and more exclusive international certification in SME consulting. sivity. A CIB Business Online subscription and ping and delivery services. tailored features such as fast-tracked approvals. a Business Platinum debit card that allows cus- RMs Engagement and Recognition: In an effort to tomers to withdraw and deposit anytime from Digital Solutions Partnerships for Empowering increase employee engagement and boost encour- any ATM are key components of this account, CIB Business Online: In line with CIB’s ongoing and Development agement, the Business Banking segment launched providing customers with convenient access to efforts to contribute to digital transformation, CIB CHF, the representative of Overseas Private internal events aiming to boost engagement and their accounts. Business Online is a new online channel serving our Investment Cooperation (OPIC), in Egypt increase productivity by providing incentives. clients. This channel gives our clients access to a Super Business Account: Our Super Business full suite of digital services that helps them manage CIB aims to increase financial awareness and Lending Facilities Account offers no account opening fees, a free and control their business. The system groups to- capacity building for startups and small compa- Our lending business has been revamped through 24 leaf checkbook, a free Visa Business Platinum gether CIB’s Cash Online and Trade Online systems nies. Since 2017, CIB Business Banking segment new credit programs, policies, and procedures, a debit card issuance, and daily interest for a cer- under a unified platform, with a completely new has been contributing to various workshops in customer acquisition model, and a risk manage- tain balance. The Super Business Account and addition of supply chain financing, which enables collaboration with CHF Management and Con- ment framework. In 2019, the business launched the Easy Business Account benefits are granted our customers to manage and finance their pay- sulting Services Egypt. a comprehensive loan program tailored to SMEs against a monthly subscription fee that is waiv- ables and receivables with greater ease. with limits up to EGP 30 million for both new and ered if the customer has an average balance Business Women of Egypt 21 existing customers. The year also saw several new exceeding a certain threshold. Apply Online: To provide a seamless banking expe- In 2019, CIB announced the signing of a part- initiatives that were tailored to SME clients, includ- rience for our clients and offloading branches and nership protocol with BWE21, an independent ing credit facilities with tenors of up to five years, Current Account: Finally, we provide our busi- call centers, SMEs can request banking services and non-profit organization enacting positive change overdrafts, time loans (against contracts, purchase ness clients with the Current Account through facilities through a simple, convenient, and imme- for businesswomen and the Egyptian economy. orders, checks, and export contracts), as well as which they enjoy the services of a dedicated diate online form available on CIB’s public website. The protocol is part of CIB’s continued commit- letters of guarantee and letters of credit facilities. relationship manager who is available via phone ment to support women entrepreneurs running or in person during the branches working hours. Payment Acceptance small- and medium-sized businesses to achieve Tailor-made Accounts Point of Sale (POS): We provide POS and mini POS sustainable development. Easy Business Account: This new online account Business Banking Call Center terminals to serve SME business requirements. To is the smartest and most economical way to bank. Being a customer-centric institution, in 2019, we enable fast and secure transactions, POS are sup- The protocol establishes CIB as BWE21’s exclusive It promotes financial inclusion for SMEs and gives launched a dedicated call center for our business ported with a contactless payment feature with bank sponsor and will see the Bank help the orga- them an opportunity to join the formal banking banking customers, to improve our service, and only one tap. Moreover, mini POS support SMEs on- nization set up voluntary workshops on financial sector. Employing digital technologies, through enhance service level offered to smaller compa- the-go business by providing the latest technology awareness and attain financing for business devel- this account, SMEs can fulfill most of their banking nies, and maintain a long-term relationship with to eliminate the need to keep paper receipts and opment. Under the agreement, the Bank will also needs without having to visit a branch, saving their our clients. During the launch phase, Business provide their customers with e-receipts instead. develop a suite of banking services especially target- time and money. Banking customers can inquire, initiate basic ed at businesswomen who are members of BWE21. requests, and ask for digital channels support. E-Commerce Payment Gateway: Our E-Com- This has positively contributed to the offloading merce service allows merchants to accept online The partnership derives from CIB’s commitment “SMEs can fulfill of our branches, offer a new personalized com- payments quickly, securely, and easily by using any to intensify support to BWE21 by providing the munication channel with SMEs, and optimize kind of payment cards. It supports any payment required expertise to help women in business most of their the cost to serve. generated from any online enterprise store, wheth- develop their business models in line with er it is through a website or a mobile application. market dynamics in an effort to promote sus- The Professional Services tainable growth. banking needs Alliance Program QR Payment Service: Now, with a designated CIB garnered financial and non-financial services QR code, SME customers can simply scan it “She Can” Entrepreneurship Event without having to propel SMEs’ growth, and ensure the longevity through their mobile wallets and complete all of CIB sponsored the largest female entrepre- of our relationship with our clients. Through this their transactions quickly and easily. neurship event in the MENA region, She Can to visit a branch, program, we provide SME customers with value 2020. The event highlighted CIB’s efforts to added services at discounted prices to help them Women in Business Program support women in business, as well as provided saving their time grow their business. CIB is partnering with a A Tailor-made Bundle of Products workshops about how to best utilize banking league of third-party providers in several support- and Services products as women in business. and money.” ing services to offer their products and services to Over 10% of CIB’s total BB customers are wom- our SME clients at discounted prices. Our partners en-owned businesses. In our journey to promote The event was an opportunity for women entre- represent a wide range of services, which include inclusivity of women (Read more on: Empowering preneurs, leaders, decision makers, and investors but are not limited to legal advisory services, Women). In 2019, CIB piloted a special product to be celebrated and supported, and is a chance market research companies, leadership and to empower women-owned businesses through for all types of players to support and invest in
62 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 63 rising women entrepreneurs. The event included Financial Literacy and the advantages of our new products, such Moreover, the Bank collaborates with interna- inspiring and educational talks, workshops, panel We acknowledge that financial illiteracy is a as the Meeza Prepaid Cards and Smart Wallet. tional organizations and local NGOs in setting discussions, and masterclasses, as well as exhibi- major barrier to financial inclusion. CIB plays Our 2019 campaigns also targeted youth at sev- up workshops on financial awareness and tions, competitions, mentorship and networking an active role in raising awareness through a eral universities to provide insight on some of attain financing for business development. activities, awards, and funding opportunities. She comprehensive approach that tackles this issue the most suitable products, particularly digital (Read more on: Supporting SMEs) Can is about large and small partners coming from its roots. To reach out to all our customers, products. CIB counters were also available to together to support the female entrepreneurship CIB approaches them through multiple innova- provide instant registration for the products. ecosystem in Egypt and the MENA region. tive and simple channels and financial literacy tools, all of which are available on our website. Accessibility and Enablement Accessible Branches and Services CIB Online Blog People with disabilities represent one of the large- Through CIB’s blog and social media, and short Journey 3 ly unbanked and financially excluded. Financial videos such as the “How It Works” series, we are inclusion aims to allow people with disabilities providing simple information that demystifies Supply Chain Management to enjoy equal and fair access to quality financial banking products and services. General topics products and services. CIB efforts to serve them include but are not limited to “What is a Bank”, In line with our commitment to ensure op- economic, and environmental. CIB encourages have been a priority for our bank. Talking ATMs, “Insurance Explained”, “Your Credit Score erational efficiency, our supply chain plays a its suppliers to promote sustainable practices accessible branches, the digital ATM locator and What it Means”, “Your Guide to Personal significant role in improving efficiency in costs and corporate responsibility in their operations. feature, the Standard Operating Procedure for Loans”, and “Tips on How to Save.” and investments and providing support to the We strive to keep ourselves and our stakeholders people with disabilities, in addition to trained different business units in achieving their ob- ahead of changes, embrace current disruptors, staff were all CIB efforts to further ease and sim- On-ground Campaigns and Workshops jectives. We ensure the adoption of responsible and support the growth of our national economy plify access to our financial services, to include We believe that providing access to affordable procurement practices on three levels: social, throughout every commitment. everyone. We ensure that all our branches are financial services must be coupled with finan- accessible to everyone, equipping them with the cial literacy efforts to enhance the use of these necessary accessibility features, such as ramps, services. We enable our customers to make accessible bathrooms and teller counters, and informed decisions regarding the use and man- talking ATMs. In addition, and in line with CIB agement of the provided financial services. diversity and inclusion strategy, internally, the Bank also partners with relative local NGOs in To this end, CIB has launched several on-ground order to attract talented and skilled people with and online campaigns to raise awareness on Vendors Local suppliers special needs in our work environment. the importance of access to banking services
Communication 450 430 Campaign Description Campaign Duration Channels
Meeza CIB has participated in Financial Performance TV, billboards, radio, CIB National the national campaign Sustainable Investment and ATMs, CIB website, SMS, Campaign supported by the CBE Lending CIB Facebook page, internal initiative to transition to a Environmental, Social, and announcement, posters, cashless society Governance (ESG) flyers Reputational Management Sustainable and Meeza Plat- National payment November 2019 TV, billboards, radio, internal environmentally form Launch scheme launch announcement, Instagram friendly suppliers Budget Souq.com Meeza and Souq online November 2019 CIB ATMs, CIB website, Campaign shopping cash back cam- SMS, CIB Facebook page, EGP paign with 15% cash back internal announcement, 80% 708 MN capped at EGP 15 per card Instagram
Carrefour 15% cash back with a January 2020 CIB ATMs, CIB website, SMS, Cashback max of EGP 150 per card CIB Facebook page, internal Campaign during the campaign announcement, Instagram
64 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 65 MANAGING ENVIRONMENTAL FOOTPRINT: A RESPONSIBLE BUSINESS
Journey 1 Green Finance
Journey 2 Green Environment
66 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 67 Journey 1 Green Finance
The CIB Green Credit Line CIB aspires to maintain our leading position (UNDP), in addition to free-of-charge energy and pave the way for responsible banking. As audits to identify their needs and potential part of its advocacy for sustainable finance, energy improvements. CIB launched a green finance product, the CIB Green Credit Line, in 2019 to support our corpo- Development Finance rate customers who wish to achieve economic In line with our efforts to drive sustainable growth through environmentally targeted proj- finance, we manage sustainable development ects and practices. The loan is provided by CIB’s funds and credit lines provided by government funds at a preferential interest rate focused and international agencies that positively on energy efficiency and renewable energy, as impact our community and environment. As well as all projects that provide evidence of of December 2019, Development Finance, to- positive environmental impact. Moreover, the gether with Non-Bank Financial Institutions, facility was provided for corporate clients in has indirectly financed 150,376 active micro-en- the tourism, and pharmaceutical industries trepreneurs, out of which 55% are females by since its launch in 2019. Additionally, as part extending credit facilities to microfinance insti- of CIB’s responsible lending commitment, we tutions. The microfinance outstanding portfolio conduct our internal Social and Environmental has financed 77% micro-projects in rural areas, Assessment. and 61% of the current portfolio has supported the Microfinance commercial projects. Moreover, the interlinkages between sustain- ability pillars are exemplified in the CIB Green Through our development finance, CIB acts Credit Line, where its serves both the economic as an agent bank for funds, grants, and credit empowerment of our corporate clients while lines by providing an array of services and focusing on green projects as part of CIB’s En- tailored operation mechanisms, including vironmental-conscious efforts and footprint. structuring new grants and concessional (Read more on: Empowering our Customers: loans, creating disbursement and repayment Debt Capital Market) mechanisms, securing investment of uncom- mitted funds, promoting funds to potential Solar Loan target groups, technical pre-loan assessment, The CIB Solar Loan offers its retail customers and post-loan monitoring. CIB also acts as a special financing for purchasing and installing participating bank, financing clients on con- solar panels. It provides competitive return cessional terms that give it a competitive edge rates and a flexible repayment plan, in addition in the market and participates in guarantee to technical assistance by highly reputable mechanisms to provide SMEs with better vendors. The loan is in line with the national access to credit lines. initiative to promote affordable, green, and renewable energy solutions. During 2019, through agricultural developmen- tal programs managed by CIB, total finance Technical Assistance and approved in the field of agribusiness projects Advisory Services reached EGP 830 million for around 43,000 CIB partners with solar panel vendors and beneficiaries through a full range of programs: companies that provide high-quality energy efficiency products to our retail clients with • Agricultural Sector Development Pro- competitive prices. For our corporate cus- gram (ASDP) tomers, we provide technical assistance and expertise in partnership with the Ministry of • Financial Investment Sector Cooperation – Electricity and Renewable Energy (MoERE) Rural (FISC) and the United Nations Development Program
68 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 69 • Support Agricultural Small and Medium After studies on an environmental communi- our innovative energy efficiency measures. Towards Carbon Neutrality Enterprises (SASME) cations strategy were conducted, the strategy Our efforts in material efficiency have paid off, Acknowledging the urgency of global action on was launched at the beginning of Egypt’s par- and we saved close to 3 MtCO2e from reducing climate change, CIB developed its first Carbon Foot- • Promotion of Rural Incomes through Market liament’s session in 2019 during the Energy paper use in 2019. Our 2019 carbon footprint print Report on all CIB premises. This report was an Enhancement (Prime) and Environment committee’s meeting to dis- report yet to be published will contain a de- endeavor to measure our carbon footprint. In 2018, cuss the challenges of raising awareness about tailed analysis of our carbon emissions and CIB’s total emissions reached 36,373,090 MtCO2e, • Veterinary Service Program (VSP) environmental issues. The implementation of business performance during the year 2019. and we have committed ourselves to reduce green- the initiative is expected to take three years house gas emissions by 10% (1,800 MtCO2e) by 2025. • Buffalo Fattening Program (BFP) until it brings true environmental awareness among all citizens. • Sustainable Agricultural Investments and Total Scope 1 Total Scope 2 Total Scope 3 Livelihood Project As a partner of the Ministry of the Environ- Emissions 305-1 Emissions 305-2 Emissions 305-3 ment, CIB was invited to participate in the National Framework-setting consultative meeting with private sector rep- 2018 10,043 MtCO2e 17,771 MtCO2e 8,559 MtCO2e “Live Green” is a new national initiative aimed resentatives on setting a general framework at spreading environmental awareness and for the initiatives. Participants were able to Energy Management System (EnMS) sending a strong message that environment-re- express their views on the initiative, share CIB is adopting Energy Management Sys- Egyptian Ministry of Electricity and Renewable lated issues are of national priority for political their challenges, and add valuable input to tems (EnMS) that provide data on the Bank’s Energy, CIB’s commitment to a greener usage leadership. This initiative reflects the state’s com- the proposed framework. energy consumption and allow us to manage of resources continues through the alleys of mitment to environmental issues and concerns. it effectively and achieve operating cost sav- the bank. ings. The system has been implemented in one building in 2019 during phase one and is Moreover, in line with our commitment to considered a stepping stone for acquiring ISO raising awareness and employee engagement Journey 2 certifications in EnMS. in sustainability practices, we plan on intro- ducing the “Energy Champs” initiative in 2020. Green Environment Towards Energy and This initiative will not only motivate employ- Water Efficiency ees to develop innovative ideas for energy CIB works to measure, reduce, and improve its Egypt Vision 2030, we have established seven After our successful Green Initiative (We Care, efficiency solutions inside the Bank, but also environmental footprint. By regulating our emis- carbon emission reduction targets for electricity, We Save), today, green internal and operation- raise their awareness on the importance of sions, ensuring the safe removal and management refrigerant leakage, water, paper usage, aerial al practices have become business as usual. rational energy consumption, where they can of our waste, and guaranteeing that our buildings transportation, ground transportation, and waste As the first bank in Egypt to partner with the play a proactive role by implementing sustain- comply with the highest possible standards for generation. This has culminated in a total target UNDP-GEF Energy Efficiency Project and the ability practices in their day-to-day lives. safety and environmental impact, we demon- of 10% reduction as compared with our baseline strate our robust commitment to mitigating our emissions in 2018. negative impacts, conserving our environment, Total Water Consumption 303-5 Total Waste Water 306-1 and encouraging our employees to do the same. It is clear that this was a critical year for our carbon emission reduction journey. 2019 In line with our commitment to having a responsi- marked our foundation year towards achieving 2018 551,892 441,513 ble footprint, CIB continues using its “4M” model our targets, where we have actively managed of measurement, monitoring, management, and our carbon footprint and achieved remarkable mitigation. As promised in our last sustainability change in our operational behavior towards Resource Efficiency report, in 2019, we concluded measurements of all resource efficiency. We have been working Paper Reduction keeping the ,(معاجن) our 182 branches in our first consolidated carbon on multiple grounds; from adopting the most Our “Paper Champs” initiative has turned company Paper Kneading footprint report, in comparison to our coverage of efficient lighting systems, optimizing our into an ongoing program of monitoring paper environment clean and clear of pollution. The on- 52 branches across only two governorates in 2018. HVAC system, installing occupational sensors, consumption and encouraging the adoption going growth of our digital solution and branches and reducing the consumption of water to of new, innovative ideas and technologies by migration has also played a major part in facilitat- CIB’s total carbon emissions associated with increasing awareness about climate change employees across all branches. As part of the ing the involvement of our customers in this green operations in Egypt totaled approximately 36,370 and carbon emissions whilst highlighting the program, some of CIB’s paper waste is donated culture, with electronic statements and digital MtCO2e in 2018. An extensive carbon footprint invaluable contribution that each of us can to paper recycling startups to further promote banking transactions increasingly becoming a assessment has been conducted for all branches have in helping the planet. For the first time, green entrepreneurs. default option for CIB customers. distributed all over the country. Stemming from we have adopted an energy management our serious commitment to combating climate system, according to ISO 50001, aiming at Shredding and recycling outdated CIB bank doc- change and perfectly aligned with SDGs and maximizing the savings already achieved with uments are conducted through the specialized
70 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 71 E-waste Management CIB responsibly manages its e-waste through dis- • Air conditioning (automatic timers and split posal agreements with third-party contractors unit AC system) who are certified by the Ministry of Environment. • Indoor air quality (fresh air and air curtain) From Single-use, to Biodegradable, to Plastic-free? CIB is the first organization in Egypt and the In line with our efforts to manage our environmen- first bank in the Middle East to receive ISO tal footprint, CIB has continued its efforts towards 41001 certification. The certification covers all plastic use reduction by replacing conventional of the Bank’s premises and its related opera- plastic bags with biodegradable material in col- tions, acknowledging CIB’s full adoption of the laboration with the SwitchMed Program (funded Facilities Management System developed by the by the European Union), UN Environment Pro- International Organization for Standardization. gram office, and other local entities. The initiative had a positive impact on the Bank’s stakeholders CIB 2019 Initiatives as the biodegradable substance, at the time, was Cooling Capacity Enhancement believed to be eco-friendly. However, experts are An AC Enhancement Initiative of the complete now calling for a ban on the substance and substi- renovation of the HVAC system took place in tuting it with fabric and/or recycled paper. two of our highest traffic branches using the VRV system, which in addition to its enhanced In 2020, CIB will focus on reducing its single-use cooling capacity, involves operational and plastic consumption and raising awareness of energy efficiency. the harmful effects plastic has on the environ- ment. The Bank will explore how it can create an CIB installed five photovoltaic (PV) power sta- actionable strategy to fully address the plastic tions that generate 325,000 KW yearly, with an sustainability issue. Building on CIB’s green bottle expected annual savings of EGP 536,250 off the initiative, in 2020, the Bank will include similar electricity consumption. In 2019, four stations initiatives such as switching from biodegradable were added, which generate 208,175 KW and is bags to reusable ones and explore alternative expected to save EGP 343,485 per year. packaging and giveaways that do not use plastic. Rooftops Insulation Initiative Our Green Buildings In addition to protecting our premises from CIB is the first bank in Egypt to acquire the floods, rooftops have a direct sustainability Egyptian Green Pyramid Certificate Gold impact by increasing AC efficiency with thermal Rating awarded by the Ministries of Housing, insulation enhancements, hence consuming Utilities and Urban Communities, Electric and less energy. Renewable Energy, and Environment. With three branches certified to the Green Pyramid Reuse of Dismantled Items Rating System (GPRS) Certificate, we continue In support of CIB’s sustainability efforts to to lead the financial sector and motivate other extend the life cycle of items that may have banks to attain the GPRS Certificates. otherwise been treated as scrap, the facility management team used all items dismantled In support of our Sustainable Design Code from the renovated branches and supplied through our facility management, the Bank’s them as maintenance spare parts across the energy efficiency practices are currently taking Bank’s premises. We managed to reach an EGP place under four pillars: 3.2 million cost avoidance in 2019 by using dis- mantled items as spare parts. • Lighting (LED lights, lighting occupancy sensors, separate lighting control, and Improving Air Quality automatic timer) In 2019, a cleaning and sterilization scope for HVAC ducts was performed in six head offices • Domestic water (flow restrictors and and five of our largest branches. The measure- flush control) ments were completed in accordance with
72 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 73 Egypt’s Environmental Protection law and the What is Life Cycle Analysis (LCA)? were expressed as an aggregated index point score is vital for creating a prosperous society and Labor law requirements using specialized and LCA is a systematic method of quantifying the to reflect its total impact. Therefore, the outcome building a resilient economy. It is no longer up calibrated devices. The measurements before different environmental impacts of a product or a has been presented as the impact per transaction, to governments and large economic players and after showed that all of the thoracic partic- service life cycle from its extraction from nature up in addition to the total impact of the system. alone as small businesses also have a significant ulate emissions were lower than the maximum until its disposal through reuse, recycling, or land- role to play toward this transition due to their permissible limits. filling. Assessing the environmental impact of a Based on the results of the LCA and the impact of social and economic dynamic power, especially system depends on various factors, such as the type each subsystem, different scenarios for lowering in emerging economies. Green Walls of raw materials and their extraction, transporta- the impact of debit and credit card payments and Additional efforts towards air purification tion, management and treatment, manufacturing achieving optimum ecological efficiency have At CIB, we recognize the crucial role of small and took place in 2019, with a total of 122 green and production, consumption, and disposal. All been studied and analyzed from an environmen- medium enterprises in green transformation and walls added to our branches. Today, we can these processes along the life cycle have varying tal perspective, including but not limited to: acknowledge them as key drivers for Egypt’s eco- report that all of CIB’s branches have a green environmental impacts of different magnitudes. • Going cardless nomic and sustainable growth. In light of this, we wall, which helps to convert CO2 into oxygen. launched our Greening SMEs Program initiative, For each square meter of green wall, 2.3 kg of CIB’s LCA is conducted on our card payment • Increasing the lifetime of debit and credit cards which aims at assisting our SMEs in the adop- CO2 is extracted, producing 1.7 kg of oxygen. system, which includes four main compo- tion of sustainable practices and seizing green nents: credit and debit cards, ATMs, point of • Using renewable energy to power ATMs business opportunities towards achieving Egypt Campaigns and Internal Initiatives sale (POS) terminals, and data centers. The Vision 2030 and the SDGs. In order to ensure a The sustainability team continues its full- entire life cycle from the point of raw mate- Greening SMEs holistic approach, provide a solid foundation, and fledged internal sustainability awareness rial extraction, through transportation, use, Social and Environmental Impact Assess- identify key gaps and impacts, our first step was campaigns, spreading knowledge on different manufacturing, and eventually disposal have ment Program to conduct an Environmental and Social Impact sustainability issues, and educating employ- been assessed. The calculations were based The global transition into a low-carbon econo- Assessment of our borrowing SMEs. ees on environmentally friendly practices. on the number of cards as well as the number my is inevitable for the future of our planet. It CIB’s “We Care, We Saved” initiative involved of transactions via ATMs, online, and POS. a series of educational videos, developed to Such a comprehensive environmental impact showcase CIB’s internal sustainability efforts, assessment of both our direct and indirect with a focus on waste management, energy activities will allow us to set an environmental efficiency, and paper reduction. An internal management framework for a range of short- awareness competition called “It Is Your Turn” and long-term high-impact procedures. also launched in 2019. Its objective was to generate enthusiasm and spread knowledge Our Approach about environmentally friendly practices to The LCA is performed according to ISO all CIB employees across the organization and 14040, using powerful modeling and simu- encourage employees to play a proactive role lation software that allows for detailed and at work, home, and in the community. Electric reliable insights for calculation and analysis bikes and solar-powered watches were award- results, which helps in identifying main ed to the most proactive participants. drivers throughout the life cycle. This was complemented with the ecoinvent database, S&E Impact Assessments of our the world’s leading lifecycle inventory data- Products and Services base, to obtain all secondary input data used CIB Product Life Cycle Initiative to complete the LCA modeling. A rigorous Analysis of Debit and Credit Card examination started with primary input data Payment System collection and validation for all components Because we like to lead by example, and in line and subsystems, such as the composition of with our long-standing commitment to environ- cards, electricity consumption of ATMs, fuel mental responsibility, the Bank took a step further combustion per km for transportation, etc. in measuring and reducing our operations’ direct and indirect impacts. CIB is mindful of its respon- Outcome sibility towards climate change mitigation, so The analysis showed that the most significant we conducted a Life Cycle Analysis (LCA) for the impacts of the system have been identified as Bank’s credit and debit card payment system for fossil depletion, climate change, impact on human 2019. We pride ourselves in being the first bank in health, human toxicity, and metal depletion. How- Egypt and the MENA region to undertake such a ever, each material, process, and subsystem has had responsible and rewarding initiative. a different impact on the environment. The results
74 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 75 Why Greening SMEs? “CIB helps Approach Our theory of change states that SMEs can The program is ambitious yet realistic, built to help CIB SMEs become green and create a network of business influencers, sustainable in stages. where each company creates a positive ripple SMEs create effect among the SMEs sector by raising the Assess the environmental and social im- bar of sustainability performance and shar- fully sustainable pacts of borrowing SMEs. The purpose ing their experiences and therefore drives a of the environmental and social impact systemic change within the business commu- business models assessment exercise is to identify and nity. This can also trigger positive changes Baseline assess potential adverse social and within social and institutional structures, because we Assessment environmental impacts and to develop not limited to SMEs but also bringing about suitable mitigation measures. Equally society-wide benefits and change. We strive recognize the to drive this transition through facilitating important, the purpose is to identify new adherence to globally recognized standards market opportunities SMEs can access that regulate green performance and social crucial role that by becoming greener. empowerment practices, including gender equality and inclusion. they will play in
By greening SMEs, we do not mean simply bringing about SDG Support the establishment of high-level incorporating a list of sustainable practices or Roadmaps roadmaps on the SDGs for SMEs with a introducing basic environmental management green transforma- focus on CIB’s key objectives and goals. systems. Rather, we mean a full-fledged and systematic change in how the company oper- tion and ates internally and within its broader network of partners. This means creating fully sustain- able business models. For this program, we acknowledge them have applied a novel typology to explore the different manners in which SMEs integrate as key drivers for sustainability, using different degrees of sus- Action Plan Develop strategies to improve the envi- tainability integration and innovation. Egypt’s economic ronmental and social impacts of SMEs. and sustainable growth.”
Design and implement effective in- struments to promote environmental Environmental and Social compliance and sustainable business Toolkit models and practices among CIB-fund- ed SMEs through an integrated sustainability perspective.
Promote greening of CIB-funded SMEs Transformative beyond incremental change, and Change include modifications in operations, procurement practices, and corporate culture and behavior.
76 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 77 LEADING SOCIAL EMPOWERMENT
Journey 1 Our Customer Experience: Customer Relations at the Core
Journey 2 Our Employer Bran: Employee Wellbeing
Journey 3 The CIB Foundation: Community Care
Journey 4 CIB Social Activities: Towards Social Prosperity
78 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 79 Journey 1 Our Customer Experience: Customer Relations at the Core
With the technological advancements and new with tools to handle customer complaints using SME-dedicated call center, each with a dedicat- CIB maintains a defense in depth strategy engagement channels transforming the way best practices. The program was customized ed team to handle general inquiries, activation, through deploying multiple layers of security banking customers interact with their financial with different versions to serve various types of and complaints, and to enhance the service controls on different levels, being the network, institutions on a global level, customer expe- frontliners. The customer experience journey level offered to its respective segment of clients. infrastructure, or data level. Different technol- rience and satisfaction is determined by the continued in 2019, where 450 employees from ogies are being used, such as encryption and quality, timeliness, and personalization of cus- frontline positions and supporting functions Customer Satisfaction and NPS masking. This is also coupled with strong in- tomer relations rather than the differentiation have attended the program. (Read more on: Our This year, the Operations, Channels, and formation security and governance framework of products and services. Employer Brand) Customer Experience division completed the that sets the foundation for data protection and annual Customer Satisfaction and Net Promoter classification as well as data leakage protection Because we prioritize customer experience Customer Relation Score (NPS) survey, which measures customer controls and policies. The Bank maintains also and consider it as a pillar in our corporate Management Teams satisfaction across segments and service chan- regulated and controlled access to CIB’s critical strategy, we leverage behavioral analytics Global Customer Relation (GCR): The GCR nels, including digital ones. In 2019, the survey data with a focus on staff ’s awareness of their and technology to provide customers with model is a sound business strategy that aims to showed that individual customer segments have responsibilities towards customers’ data and the best banking experience. Our renowned identify the Bank’s most profitable customers sustained satisfactory service quality, beating the acceptable use of it. expertise and profound insight into global and devotes time and attention to expanding NPS levels against regional benchmarks. The practices constituted our belief that customer account relationships with those customers. survey also highlighted service enhancement With data privacy and security as a strategic experience is a competitive differentiator. In This is provided through individualized mar- opportunities in both the corporate and busi- key priority, CIB adopted a data-centric se- accordance, we have defined the quality of our keting and customized all-rounded model that ness banking lines of business. curity strategy that has its efforts to take the service as a strategic priority. To this end, col- provides various banking services through the necessary security and protection measures to laborative efforts from several bank divisions business divisions and subsidiaries that the Enhancing Core Operations safeguard customers’ information against un- have been exerted covering several aspects of Bank operates. We have also invested in improving our core authorized access or leakage. In 2019, the Bank the consumer experience journey, including: businesses to enhance the customer expe- renewed its Business Continuity Management Strategic Relations Group (SRG): CIB takes rience. Our operations and IT division have ISO 22301:2012 certification for the second • Capacity building and development of front- pride in the fact that it is the sole bank oper- worked diligently to launch the Business year, taking a proactive approach to minimize line capabilities ating in Egypt with such a unique focus group, Process Re-engineering (BPR) initiative. BPR impacts of incidents, improve recovery time, dedicated to servicing its prime institutional is aimed to increase efficiency and produc- and enhance its resilience capabilities to better • Strong and knowledgeable customer rela- entities. SRG is an institutional banking tivity rates, reduce turnaround time (TAT), serve customers. tion teams group dedicated to initiating, nurturing, and and improve customer experience. Under this growing banking relationships with strategic initiative, CIB launched the first phase of the In 2019, there were no complaints reported in terms • Constant improvement of dedicated con- institutional depositors who are essential con- Inward Document for Collection (IDC) issuance of breaching customer information confidentiality. tact centers tributors to CIB’s stable funding base. SRG’s re-engineered process, which brings TAT to 100 strategic clientele comprises of more than 180 minutes, beating market benchmarks. Straight • Digital innovations in products and services diplomatic missions, NGOs, educational enti- Through Processing (STP) is another important ties, and distinguished international and local milestone for the Bank, which has increased • Operational efficiency practices donor agencies. processing efficiency, leading to better cus- tomer experience. With certain products and • Cyber security and business continuity Enterprises and Governmental Relations processes now executed end-to-end without (EGR): The EGR group has gone from strength any manual or human intervention, STP com- Capacity Building to strength since its establishment in 2016, po- plements the Bank’s digital agenda. Building on the success of the iCare campaign sitioning it above others in the market. By 2019, that was launched and implemented in 2016-17, EGR evolved to manage relationships with large Cyber Security and Data Protection more than 3,000 staff members from different private sector companies, conduct fundraising, As more data is collected on each customer, areas and management levels attended various and attract customers previously segmented there is an increased need for banks to main- versions of the program to spread knowledge under state-owned enterprises, government tain the trust and security of its customers. At and proliferate a culture of customer-centricity. entities, and sovereign authorities. CIB, much effort was exerted to improve cyber Moreover, iOwn, a service dedicated to man- security standing, with a clear strategy and aging customer complaints was created and Contact Centers comprehensive plan to improve security capa- developed in 2018 to create full ownership for 2019 witnessed the launch of the Corporate bilities and continuously provide a safe banking first-time resolutions while equipping our staff Portal/Digital Support Contact Center and an environment for customers.
80 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 81 Journey 2 Our Employer Brand: Employee Wellbeing CIB named on 30% 5,803 2020 female workforce employees trained Bloomberg Gender- Equality Index At CIB, we are keen on managing and motivating in a competitive job market. CIB employees have our multi-generational workforce (our most mastered the art of customer relations, adapted to valuable asset), responding to the need for remote technological challenges and opportunities, and working, meeting the demands of an always-on continued to add value to each of our social and work culture, and attracting and retaining talents environmental commitments.
CIB was recognized as one of the “World’s Best Employer” by Forbes in 2019
Value Creation Policies and Practices
Training and Certification, Expertise Career Prospect, and Leadership Development E-learning, Parental Leave, and Agility Employees Flexible Hours Partnerships Engagement Remuneration, Compensation, Agreements Stability Medical Care, and Benefits Women’s Empowerment and Responsibility Recognition Our Employees’ Commitment Ethics and values are at the heart of our Employee Mission
A Diverse, Inclusive, and Enabling Environment Our human capital has always been the backbone In line with CIB’s strategic priority for diversity that ensures CIB’s sustainable performance. As a and inclusion, we are particularly proud that people-focused organization, CIB prides itself on a our work culture is inclusive of people with talented pool of dedicated employees. We believe disabilities. The Bank continues to partner that it is a strategic necessity to develop, nurture, with relative local NGOs in order to attract and encourage high-performing individuals who talented and skilled people with special needs can foster a culture of a “committed business” in our work environment. through a diverse, enabling, and inclusive work- place that cares for all. Moreover, in line with the Bank’s efforts of mobile recruitment and attracting candidates Our recruitment approach is to attract tal- with specialized knowledge and expertise, in ented individuals from diverse careers to join 2019, we were present in eight areas across the CIB family and be a part of the core tool Egypt to facilitate the recruitment process for driving the Bank to achieve its goals. We pro- candidates at hubs outside Cairo. To further vide equal opportunities for decent work and widen the pool of qualified Egyptian youth career development for all of our employees. candidates, in 2018, we introduced the Tawarny
82 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 83 campaign to support university students in automated projects that enhanced the per- their quest to build their resumes, expand formance of our HR department, which had Employee category (Graph) Total training hours their internship networks, communicate with a positive impact on our human capital. market experts, and better prepare themselves CIB adopted an automated Performance for the labor market. Early in 2020, we intro- Management System (PMS) that will Executive management 315 duced “Helemek Yehemena” Initiative with the significantly enhance the performance Senior management 1,563 purpose of increasing female employee rep- management process by increasing the resentation across branches. (Read more on: accuracy of monitoring, performance eval- Management 4,066 Women’s Empowerment and Recognition) uations, and cascading objectives to ensure Middle management 28,324 alignment across the Bank. • Our human capital of 6,900 employees has a First line management 40,838 diverse ratio of gender and age. In addition to this, we have finalized the im- Professionals 268,078 plementation of Taleo Recruitment System, • Female employees make up 30% of our which will enhance the overall candidate Secretaries 2,399 workforce, one of the highest in the banking experience by increasing our digital presence sector in Egypt. effectively through integrations with social Sub-clerks 1,516 media websites. In addition, the system pro- Total 347,099 • Bringing young talent has always been a vides support for growing mobile usage by key commitment to the bank. 83% of our candidates, allowing them to apply for jobs new hires are under the age of 30, which through a dedicated mobile application pro- Training course type or name Number of trainees Total training hours brings the ratio to 32% of our workforce in cess. It will also increase productivity due to (G404-2) this age category. its advanced automated prescreening features Male Female that are accessible from any location and en- In House - Business Skills 2,567 1,121 43,042 • We contribute to our employees’ retirement hance communication between the team and plans through the Social Insurance Law, which hiring managers, as it can track the progress In House - Sales and Service 1,722 493 29,567 entitles the employees of the Bank’s support of of requisitions and candidates. In House - Technical Skills 6,651 2,721 254,954 their pension. The pension plan’s liabilities are met by CIB’s general resources. Value Creation Leadership and Management 848 392 17,485 Expertise (G404-1) • The basic salary and remuneration of The Learning and Development (L&D) Team Buildings 207 44 2051 women to men are on equal ratio across all department is always keen on offering needs- Total hours 11,995 4,771 347,099 employment categories. based learning tracks and programs that are tailored to a specific employee, group, or de- • We are proud that CIB has always maintained partment defined through an annual Training zero incidents of discrimination before and Needs Analysis (TNA). In line with our vision 2018 2019 during the reporting period. to host the best talents, CIB provides educa- tion and training to all employees at all levels Total number of trainees 5,357 5,803 • We comply with an eight-week termination and positions. Education and trainings are notice as stipulated by Egyptian labor law, carried out through in-class learning with Percentage against headcount 79% 84% for employees who spent in service more our qualified trainers, in partnership with ex- than one year, and up to 10 years at CIB, and ternal parties, and e-learning. We offer equal a three-month notice for employees who opportunities for each employee to attend Total number of Program spent in service more than 10 years at CIB. training according to their needs and the trainees Employees who have submitted their resig- organization’s needs. nation might leave the Bank immediately and the remaining period until the effective The annual number of trained staff has in- Leadership and Management Skills Programs: develop participants’ personal leadership skills and styles needed to become trendsetters, as well date will be considered as garden leave. creased in 2019 to 84% compared to 79% in 512 2018 at all employee levels, with an average of as inspire their teams, motivate their departments, and transform their Automation for an Enhanced Performance 21 training hours per employee annually. Our subordinates to drive success and business results. Sustainable performance is also achieved robust TNA reveals the annual training plan by increasing the efficiency of our internal across each employee category and according Sales and Service Skills Program: aim to improve participants’ customer operation through business automation. to the type of training that reflects the busi- 914 service skills and competencies, as well as their selling skills. 2019 witnessed the adoption of several ness needs.
84 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 85 Total number of Program trainees
Technical Skills Program: enhance participants’ technical knowledge or skills regarding a specific subject area. It might consist of tailored learning 3,869 tracks and programs that are developed based on the unique training needs of a specific target group, segment, or department.
Business Skills Program: target developing participants’ soft skills, social skills, and management skills that are needed for success on both their 1,626 personal and professional levels.
Total number of trainees 6,921
Specialized Training and Certification CIB provides tailored learning tracks and programs Other well-established certification tracks that are developed based on the unique training with the Consumer Banking Segments are needs of specific target groups, segments, or depart- International Introduction to Securities and ments. Each program has an integrated curriculum Investment (IISI) Certification from CISI for that consists of dynamic modules targeting tech- Wealth Managers, Fundamentals of Financial nical skills and knowledge, soft skills, and business Services (FFS) Certification from CISI for Plus skills, such as, IT Matrix, School of Finance, Direct Bankers, International Certificate in Wealth and Telesales Development Track, etc. and Investment Management (ICWIM) for Pri- vate Client Advisors, and the SEMP Approach Additionally, the Bank ensures that our recruitment in Accredited SMR Consultant Certification for team is continuously up-to-date and well versed in Business Banking. their domain. We offer them opportunities for de- velopment in their own career path while ensuring On a parallel note, various departments within the value they bring to our business. In 2019, CIB CIB have received certifications, including Cer- partnered with renowned training providers to cer- tified Documentary Credit Specialist (CDCS) tify our HR recruitment team and those involved in and Certificate for Specialists in Demand Guar- organizational restructuring: antees (CSDG) with Trade Finance, ACI Dealing Certificate with Treasury, and Basic Lawyer • Certificate of Competency Based Interview Certificate with the Legal Department. (CBI) by JOBMASTER 2019 Highlights: • Organizational Development (OD) Certificate by Human Capital • 25 Plus Bankers and Wealth Managers were given international certification through the Moreover. CIB provided two major training new Wealth, Plus, and Private Academy. opportunities to its employees through two certifications, which are essential for the team • 2019 saw the first graduates of the Finan- responsible for employee’s assessments: cial Control School, an in-house training facility delivered by top professionals pro- • SHL Assessment Certificate from SHL viding applicants with both theoretical and practical training. • Competency Framework from AB & Associates
86 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 87 Career Prospect Leadership Development • 60 Business Banking Relationship Managers were In 2019, the L&D department had set train- We continuously provide performance as- The L&D department provides specialized pro- registered for the Simplified Examination to Max- ing KPI’s relevant to the Bank’s strategic sessments and appraisals to employees which grams to enhance the leadership competencies imize Profit (SEMP) offered by the Association of directions and its relevance to training and contributes directly to improving their career needed across all management roles at CIB. A Accredited Small Business Consultants (AASBC). development requirements. prospects. (G404-3) total of 512 of our employees were part of the “Leadership and Management Skills Program,” In addition, CIB’s Sponsorship for postgradu- aiming to develop participants’ personal lead- ate study is a route towards improved career ership and management skills to enable CIB 2019 New Trainings Significance prospects where CIB is able to contribute business heads to become trendsetters, as well to its employees’ future growth by offering as inspire their teams, motivate their depart- customized benefits to high performing em- ments, and drive success and business results. The CRM training is set as part of the sigma transformation ployees to pursue postgraduate studies. The In 2019, a selected number of employees from aimed to include the CRM module to the Bank’s frontliners sponsorship of postgraduate degrees is a rec- different areas and management levels were with its different dimension, aiming to maximize the customer ognition of how CIB values the knowledge and exposed to overseas programs to enhance their CRM Training experience. The CRM training started in 2018, aiming to train benefits of international best practices, and technical and leadership capabilities through all frontlines on the account opening module and planning to latest findings in dedicated and specialized various international vendors and schools. continue through 2019, to cover the loan origination and TD & areas of expertise. Moreover, the Bank ensures Programs included Corporate Finance and CD’s modules. that this acquired knowledge disseminates Credit Program, Executive Management Credit to the rest of the organization to multiply the Program, and Negotiation Dynamics. impact. (G404-2) Consumer and Business This program was designed to develop and acquire new calibers 2019 Highlights Banking Financial Services for consumer banking, which would be the potential agent for According to CIB’s L&D policy, two main cri- • 1,239 employees ranging from professionals, Management Program the product and segment department. The program enclosed teria are recruitment for the eligibility of the first-line managers, and middle managers a group of training courses in different domains with the aim selected employee: attended a variety of programs with local and of equipping the targeted audience with the level of knowledge international vendors and schools, including needed for the new scope. • The quality of the applicant in terms of their Frankfurt Business School. The program was divided into four main sections, each historical performance, penalty records, and tackling a certain domain aiming to stretch the candidates’ relevance to the pursued study to their job • 18 employees from different areas and manage- competencies and skills: nature and requirements ment levels across the Bank were exposed to • General Technical Training overseas programs to enhance their technical • Consumer Concentrated Training • The quality of the pursued study, by being and leadership capabilities through various • General Bank Related Training one of the top forty ranked universities in the international vendors and schools. • Self-awareness and Development Training United States or Europe as per the Financial Times ranking for the same years on self-spon- • CIB organized an informative intervention forum sored mechanism for board members moderated by top professors SME Academy for This program was designed for business banking, aiming to from IMD Business School to align the organiza- Business Banking select the best candidates who will receive intensive customized In this context, more than 13 staff have been tion with the best international practices. training on different domains to equip them for their positions sponsored to follow their postgraduate in business banking. The program was divided into five main degrees. Studies vary between certificates, • 1,328 employees have been moved across differ- domains, each tackling a different aspect: master’s degrees, and diplomas from local to ent areas, and 625 have been promoted internally • Accounting and Finance overseas institutions, excluding certifications with promising young talents for better exposure • SME Banking at CIB for specialized tracks. and to enhance their career progression. • Product and Legal Knowledge • Management, Leadership, and Interpersonal Skills We also offer employees different paths for Promoting Internal Trainers • On-the-job Training and Graduation Desk at the end of development through multiple opportuni- No one masters our craft better than a CIBian. the program ties, offering special preferential rates for Promoting a culture of internal trainers is one of postgraduate studies with ESLSCA Business CIB’s new efforts to capitalize on our talented em- School and the University of Chicago Booth ployees who possess the technical know-how that Wealth, Plus, and 25 Plus Bankers and Wealth Managers were granted interna- School of Business. In addition, CIB is the can translate to the rest of the Bank’s staff. Under Private Academy tional certification from the Chartered Institute of Securities “Employer of Choice” in the Association of that purpose, capacity building planning has and Investment. Further customized technical programs were Chartered Certified Accountants (ACCA), taken place since 2018, aiming to announce for designed for the Private Segment team to expose them to giving CIB employees access to various fi- internal trainers’ program in the Bank, followed market trends and financial planning. nance online programs and preferential rates by offering intensive training programs to well for finance courses. selected trainers in order to get utilized in offering
88 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 89 training programs as part of the L&D catalogue. awareness (operational and conduct risk). We outstanding employees, managers, and execu- they affect both genders equally. However, we In 2019, technical training was offered to some also developed specialized e-learning sessions tive board members. ESOP allows designated are always keen on ensuring a gender-sensi- of L&D internal trainers due to their educational targeted at particular employees, including those employees to own CIB stocks at face value tive approach; i.e., recognizing the different background and powerful training skills. in corporate banking, credit and investment via promise-to-sell agreements. CIB allocates perceptions and interests of both women and exposure management, debt capital markets, 1% of its issued and paid-in capital to ESOP. men arising from their different social locations Agility global customer relations, business banking, During 2019, CIB allocated a total of 10,541,330 and role, would develop a more enabling envi- E-learning credit programs and branch staff. stocks to 4,242 employees. Since the inception ronment for all employees. We believe that this Capitalizing on our digital transformation cul- of the plan in 2006 and its renewal in 2015, the would develop a more enabling environment ture, and building on previous years of success in Parental Leave Bank has allocated 91,032,963 shares to its for all employees. Accordingly, various CIB providing e-Learning trainings, L&D has formu- Committing to an exceptional and leading employees (taking into consideration capital women’s empowerment initiatives took place lated a set plan of various online trainings that employer brand, CIB is among very few na- increases throughout the stated period). in 2019 and will continue throughout 2020. caters to the Bank’s needs, increase bank-wide tional organizations in Egypt that promotes awareness, enable cost savings, and most impor- parental leave for both men and women. CIB Medical Care and Wellness Helemek Yehemena (You Make a Difference) tantly, support a flexible, yet advancing learning fathers are entitled to a short paid leave of We provide comprehensive benefits to our em- Early in 2020, we introduced the Helemek Yehe- tool for our human capital. three days from the delivery date. In 2019, 105 ployees that promote financial security for them mena Initiative with the purpose of increasing fathers requested and were granted paternal and their families. Our benefits include full med- female employee representation across branch- Our e-learning sessions are aimed to increase leave, while all 96 mothers who took parental ical insurance for all employees who are covered es. This initiative aims at encouraging women awareness on a diverse set of topics that meet the leaves in 2019 have returned to work, in addi- by social insurance. The Bank has agreements and unlock their full potential by attracting various needs of business stakeholders, such as tion to 13 mothers who started their parental with an extensive network of first-class doctors, talented calibers for vacant positions across all reputational risk, HR policies, and organization leave in 2018. hospitals, and labs in all cities across the country. regions in partnership with different universities.
Other Benefits Women Leadership Program Interest Free School Loans The Bank believes in the importance of empow- Female Male CIB’s interest free loan is equivalent to a maximum ering the CIB’s female workforce. Through the amount of two months of gross salary or one month L&D department, the Bank created a develop- Total number of employees entitled to parental leave 811 2,734 of gross salary based on the employee’s grade. The mental track tailored to women in leadership, loan is to be repaid over a maximum tenor of 12 tackling different dimensions and aspects of Total number of employees that took (requested) 96 105 months to support our employees to accommo- management and supporting them in building parental leave 2019 date the current school fees noting that more than long-term career success, and enable them to Total number of employees who returned to work in the 1,000 employees benefited from it during 2019. become a catalyst for organizational change. 107 106 reporting period (2019) after parental leave ended Staff Loan A two-day program tailored to women in first- Flexible Working Hours A loan with subsidized decreasing interest rate and middle-line management levels consisting CIB introduced the Flexible Work Arrangement, employees can bring the best of themselves to of average 7.75% to be repaid over a maximum of two international leadership modules on which is a tool that gives employees the flexibility work each day. Our remuneration is assessed on a tenor of six years, noting that over 4,000 em- key management skills in the banking sector. of balancing their life and work schedules, offering yearly basis taking into consideration market fluc- ployees benefited from it during 2019. Five female leaders were selected to attend the a flexible option to alter starting and/or departure tuations and external market developments. CIB exclusive Women’s Leadership Program at EBI, times. This program also provides an opportunity hiring and remuneration policies promote equal Mortgage Loan followed by three rounds from the same program for the employees to work from the office or from opportunity to all candidates, with no restrictions A loan granted to our staff with a subsidized inter- held at the EBI as well, with 65 women in the first home according to the business needs. on gender, religion, age, or marital status. est rate of average of 11% as an employee benefit. and middle-line management levels attending.
Stability (G401-2) - (G401-3) Compensation: Employee Stock Credit Cards Women in Tech We offer a comprehensive account of benefits Ownership Plan Credit cards are given to our staff with a subsi- For the first time in the banking industry, in to our employees that supports their social Our compensation scheme is based on fair and dized interest rate that is less than 1.3%. 2019, CIB introduced the Women in Tech and financial stabilities and increase the levels transparent rewards designed to promote a initiative addressing the gender gap in the of employee satisfaction and retention. This is culture of motivation and equal pay. A variable Responsibility technology departments of the Bank and evident in our low turnover rate of 4% among long-term incentive program used to compen- Women’s Empowerment and Recognition helping to build skilled women to work in males and 2% among females. sate and retain CIB employees. Our gender equality and inclusion efforts are these divisions. 14 candidates were identified aimed at nurturing and sustaining an inclu- to join this program and were rotated within Remuneration CIB implemented an Employee Stock Owner- sive workforce and providing equal and fair several different departments, including the We are keen to maintain a truly diverse, inclusive, ship Plan (ESOP) as part of its compensation opportunities. CIB is always keen on being a IT, Security and Resilience Management, and and healthy workplace with an accountable, col- strategy aimed at attracting, motivating, re- gender-neutral organization as its policies are Digital Banking and Global Transaction Bank- laborative, and trusted culture, where all of our taining, rewarding, and strengthening ties with not aimed at either men or women, but instead, ing departments. Their rotation encompassed
90 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 91 both theoretical and practical training. This rotation plan among a set of selected CIB de- importantly, foster a positive working environ- development. The partnership starts with a initiative was crowned by a closing ceremony partments. The initiative ended with conducting ment. The program entails different types of Professional Development Stream on a trial that featured presentations from candidates group presentations with the aim of sharing stu- awards with different rewarding schemes based basis. As the “Employer of Choice” in the As- in front of the Chief Operating Officer (COO), dents’ learning journeys and what they grasped. on achievements and accomplishments. sociation of Chartered Certified Accountants, Chief Information Officer (CIO), Chief Securi- The presentations were assessed by a group of CIB employees have access to various finance ty Officer (CSO), and the Chief Digital Officer senior management with pleasant feedback. Team Building Activities online programs and preferential rates for (CDO). As a result, four candidates were hired In 2019, we conducted three team building finance courses. from the program. Summer/Winter Internship activities for the IT, Consumer Assets Fulfill- Training Programs ment Unit (CAFU), Risk, and Analytics and The University of Chicago Booth School She’s Back These are structured, three to four week-long Data Management departments. A total of 200 of Business Introduced in 2019, the She’s Back initiative summer and winter programs provided to first, employees attended from the IT division, 72 L&D developed a new collaboration with aims to ease the transition for women returning second, and third-year university students, to from CAFU and Risk, and 65 from Analytics the University of Chicago Booth School of from maternity and/or childcare leave. Over receive training in branches and departments and Data Management. Business that entails offering CIB staff a 20% three rounds, 43 participants refreshed their that will equip them with practical experience discount on Executive MBA and Executive corporate and macroeconomic knowledge and and prepare them for the corporate life. In 2019, Internal Communication Efforts Education scholarships. learned of any material changes or updates in L&D gave this initiative privilege to ten winter Internal communication efforts include ongo- the Bank’s daily work, internal policy changes, Interns, 47 summer interns, and more than 400 ing town halls and casual staff events, which ESLSCA, AUC, Wag Academy, and and economic and banking sector updates summer trainees. maintain direct communication between senior Dale Carnegie so they can easily get back to work and be in management and employees. The success of L&D always looks to secure preferential rates charge of their newly assigned roles. Successful Employee Engagement “CIB Bel 3araby” (CIB in Arabic) continued in and deals to staff who are willing to pursue Employee engagement is the road towards 2019. The first-of-its-kind in the banking sector, higher education, such as WAG Academy, that Youth Inclusion achieving a culture of a committed business, as it this TV show for CIB staff tackles important offers CFA, IFRS, CMA, and CTP, ESLSCA and CIB is renowned for being an agile bank with builds a culture of motivation, loyalty, and com- bank and employee concerns in a humorous way. AUC, that offer discounts on MBA programs, fresh talent. In 2019, CIB attended 21 employ- mitment. We build our employee engagement Our digital newsletter, “CIB Round-up,” which Dale Carnegie that offers a discount on local ment initiatives in different universities and strategy to improve productivity and promote sheds light on CIB-related news, the banking programs extended to CIBians’ family mem- venues across Egypt in search of new talent. sustainable engagement. It enhances the on- sector, and the Egyptian economy, received very bers. These opportunities are availed to the 571 external talent individuals have been hired. boarding experience for new hires to maintain positive feedback from staff, and in 2019, its fre- staff through the “Stay Tuned” icon on the L&D CIB’s position as an employer of choice. We quency was increased from bi-weekly to weekly. internet page for easy access. Preferential rates Tawarny Initiative employ digital tools to foster communication are availed to staff on self-sponsorship basis Tawarny is an initiative that started in 2018 between employees, raise awareness about Furthermore, iKnow, an exclusively CIB mobile with no need to refer to the Bank for approval, and continued into 2019. It allows university HR-related activates across the organization, application empowers employees by providing and some of these rates can be extended to staff students to practice mock HR interviews and and help facilitate engagement and social ini- them with a secure and convenient tool to access family members. provide them with tips and constructive feed- tiatives to increase employee feedback. the Bank’s portals and receive their daily intake back to prepare them for the corporate world. of information for work and personal content, UN Women’s The initiative falls in line with CIB’s aim to Employee Effectiveness Survey such as the latest economic and financial news Empowerment Principles equip Egyptian youth with the right tools for In 2018, 92% of employees completed the fourth offered by top notch publications, dozens of CIB is the first bank to sign the the labor market, creating a new generation of Employee Effectiveness Survey (EES) compared audio books, reading materials and books CEO Statement of Support for qualified candidates who will drive the coun- to 88% in 2016. The engagement level, measured summaries, motivational inspiration, women’s the UN’s Women’s Empower- try’s development and growth. by employees’ loyalty, pride, and willingness to wellness videos for physical and mental health, ment Principles (WEPs). This “go the extra mile” for the Bank, was 63% com- and EBI Financial Episodes that explain termi- achievement recognizes CIB’s Fundamentals of Financial pared to 59% in 2016, and enablement level, nologies associated with modern banking. strong commitment to advancing gender equal- Services Program measured by the degree to which employees ity and women’s empowerment. A selective group of undergraduates from the experience an environment that fosters engage- Successful Partnerships German University in Cairo (GUC) attended ment, reached 52% compared to 46% in 2016. CIB acknowledges that partnering with top ex- Created by UN Women and UN Global Com- the three-day program conducted by L&D perts in the market is a key factor in business pact, the WEPs, were developed in 2010 to trainers. They sat for the exam and many have Employee Recognition Program success and employee development. In 2019, provide a holistic framework to empower passed with high scores. At CIB, we value employee recognition and L&D held several successful partnerships. women in the workplace, marketplace, and believe it to be a crucial investment in our community. The seven WEP principles are Internship Programs organization. Our HR department revamped Association of Chartered Certified based on real-life business practice and seek to Fintech MSc in Finance Internship Program the Employee Recognition Program in 2019 to Accountants (ACCA) eliminate the gender dimension of corporate A number of AUC master’s students studying reward employees for their efforts. The program CIB became a member of the ACCA Approved sustainability and the SDGs. fintech received the required knowledge and seeks to retain top talents, increase motiva- Employer Program, which recognizes the em- the needed information during their three-week tion, boost employee productivity, and, most ployer’s high standards in staff training and
92 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 93 Our Human Capital: In Numbers (G401-1)
New Hires Under 30 30-50 Over 50 years old years old years old Total number Male Female Male Female Male Female
New hires (Male) 349 61 0 New hires (Female) 125 36 0 Total number of new hires by 474 97 0 571 age category
Under 30 30-50 Over 50 Total years old years old years old percent
Rate of new hires by age category 83% 17% 0 (to the total of employees) Rate of new hires (Males) 72% (to the total employees) Rate of new hires (Females) 28% (to the total employees)
Turnover Under 30 30-50 Over 50 years old years old years old Total number Male Female Male Female Male Female
Turnover (Male) 103 150 25 Turnover (Female) 60 70 7 Total number of 163 220 32 415 turnover by age category
Under 30 30-50 Over 50 Total years old years old years old number
Rate of turnover (per age category) 8%* 5%* 10%* (to the total employees) Rate of turnover (Male) 4% (to the total employees) Rate of turnover (Female) 2% (to the total employees)
* The turnover % is calculated from the total headcount of same age group.
94 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 95 Journey 3 The CIB Foundation: Community Care
Established in 2010 as a non-profit organization towards community projects with the aim of im- The CIB Foundation impacted 100,404 patients by supporting an oph- under the Ministry of Social Solidarity Decree proving child healthcare services. The Foundation thalmic clinic in one of the underprivileged governorates in Upper Egypt, No. 588, the CIB Foundation is dedicated to seeks to ensure that its resources are spent effi- as well as funding 341 convoys while visiting 271 primary schools in Ophthalmology improving healthcare and nutrition services ex- ciently to reach the greatest number of beneficiaries 20 governorates across Egypt with not only medical services, but also tended to children of underprivileged families through the coordinated efforts of the Foundation’s edutainment awareness campaigns that target eye hygiene and sponsor- with limited access to quality healthcare by de- Board of Trustees, staff, and CIB volunteers. ing eye surgeries in the best specialized centers in Egypt. veloping life-changing community initiatives. Reach The CIB Foundation impacted 11,000 patients by purchasing state of the Purpose and Aim Currently, CIB Foundation reached 27 governor- art cancer diagnostic equipment and scanners; in addition, the founda- Cancer The Foundation efforts not only include the ates out of 28 across Egypt with its projects. The tion sponsored the expenses for the patient care in two of the most rec- donation of money, but also the monitoring and CIB Foundation believes in the sustainability of ognized centers that treat cancer in the region. following up of the impact of our projects. Through its investments; therefore, in many cases, the extensive processes, we work with private, public, CIB Foundation supports the operating costs The CIB Foundation outfitted a dental ward with 56 dental units pro- and non-governmental healthcare providers that of its funded projects to ensure maintaining the viding children and children with special needs with quality dental care offer free-of-charge services to ensure the widest level of service provided to the patients. Dentistry and surgeries. In addition, the Foundation purchased an outfitted Mobile community reach and to maximize the value of our Dental Truck to reach remote areas in Egypt where there are insufficient work achieving positive and sustainable results. The CIB Foundation is constantlystill and will healthcare providers. CIB Foundation seeks to ease the burden on fam- keep expanding in the different fields of pediat- The CIB Foundation assisted an NGO to purchase a property and outfit ilies in need of affordable health care services. In rics. In addition, the CIB Foundation will build it to become a center for rehabilitation of children with cerebral palsy; pursuit of this vision, the CIB Foundation is com- on the strategic partnerships built through the also, the foundation contributes in the operating costs of the center. Fur- mitted to enhancing the quality of services in our past years with the healthcare providers from thermore, the Foundation funded the process of equipping a center for partner institutions to provide the best possible the governmental, private, and non-govern- Special Needs care for young Egyptians. mental stakeholders to achieve better results rehabilitation of autistic children with two rooms that contribute to the and extend its reach to more underprivileged well-being of autistic children physically, intellectually, and psychologi- Governance children throughout Egypt. Furthermore, the cally. In addition, the Foundation funded the costs of tailor-made wheel- The CIB Foundation, supported by 1.5% of CIB’s CIB Foundation ensures alignmenting with the chairs based on each child’s needs. annual net profit of 2019 from the generous CIB Egyptian National Vision to ensure maximum Saving the lives of burn victims and allowing them to reintegrate into shareholders and donations made to its fundraising efficiency of the interventions such as combat- Burn Victims society physically and psychologically through funding their treatment account, is governed by a seven-member board ing eradicating Hepatitis C and eradicating the through medications and a series of surgical operations. of trustees. 100% of the proceeds are channeled causes of blindness. The CIB Foundation funded the outfitting of several emergency depart- Accident and Impact ments in university hospitals that are considered centers of excellence Emergency Depart- The Foundation has impacted the lives of more than 250,000 patients in several areas as follows: and primary health care units in remote villages in different governor- ment ates in Egypt to serve the disadvantaged populations. Area Since Egypt is ranked high in Hepatitis C cases among the world, the CIB Cancer 11,000 Hepatitis C Foundation participates in preventing this disease through screening children and treating whoever tests positive. Ophthalmic 100,404 The CIB Foundation provided scholarships for outstanding students in Radiology 23,000 advanced sciences or engineering in addition to sponsoring scholarships Education Surgery and Cardiology 3,201 for High School Diplomas in The Africa Leadership Academy in South Africa. Dental 24,000 Through outfitting and supporting the operations of a catheterization Neonatal ICU and Pediatric ICU 18,000 Cardiology unit, research labs, and funding open heart surgeries, the CIB Foundation General Pediatrics 30,000 was able to serve those beneficiaries in the best centers in Egypt. Special Needs 3,160 Relief Convoys 45,377
96 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 97 Through equipping outpatient clinics and supporting their operating Outpatient Clinics costs, the CIB Foundation was able to serve a large number of patients across Egypt. The CIB Foundation outfitted many intensive care units in a number of Intensive Care governorates; in addition to, supporting their operating costs to maintain Units the level of service provided. The CIB Foundation supported the campaigns of the Egyptian Clothing Egyptian Clothing Bank to bring warmness to children who cannot afford to buy clothes Bank and blankets. The CIB Foundation purchased equipment for pediatric radiology Radiology departments across Egypt. The CIB Foundation purchased equipment for pediatric surgical theaters General Surgery across Egypt. The CIB Foundation funds medical convoys to offer medical services General Pediatrics from a team of qualified doctors in various disciplines within Care pediatric care.
98 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 99 Journey 4 CIB Social Activities: Toward Societal Prosperity
CIB is not only a people-driven organization, cultural locations throughout Cairo, including brought together 64 female athletes and 48 but a purpose-driven one as well. Corporate the Palace of Arts, Aisha Fahmy Palace, the male athletes. In a groundbreaking move, the “We care about our Social Responsibility permeates CIB’s DNA. We Museum of Modern Egyptian Art, and the women’s event had a bigger prize purse than care about our communities and seek to enrich Zamalek Art Complex. The Biennale comes the men’s; the women’s squash world cham- communities and them through capitalizing on our legacy of pos- as part of significant efforts to bring back to pion prize was USD 430,000, while the men’s itive change for current and future generations. Egypt stalled international events, cementing prize was USD 185,000. The tournament made seek to enrich them We achieve this through our contributions and the country’s cultural role and leadership. significant international waves in both the sponsorships in sports, fine arts, culture, and squash community and sporting arena world- through capitalizing social welfare that enhance people’s skills and Reimagined Narratives wide due to the unprecedented move toward quality of life and promote societal prosperity. This is a successful series of annual art exhi- women’s equality and received significant on our legacy of bitions held at different heritage sites across media attention. Egypt, sponsored by CIB in 2019 for the third Social Welfare year in a row, and held under the auspices CIB maintained its sponsorship of the Egyptian positive change for Autism International Day/ADVANCE of the Egyptian Ministry of Antiquities. This Squash Federation for the eighth consecutive This year, the Bank continued its sponsorship of year, the exhibition was held for the first time year. The Bank also expanded its commitment current and future the Egyptian Advance Society for Persons with at the UNESCO World Heritage Site in Historic by sponsoring the National Women’s and Junior Autism and Other Disabilities (ADVANCE)’s Cairo, where it transformed several locations Squash Teams. This support has played a direct generations.” annual ceremony. We also sponsored the 2019 in El Moez Street into open art spaces, hous- role in the national teams’ accomplishments World Autism Awareness Day in Egypt, support- ing over 20 contemporary Egyptian artists throughout the year, including the National ing the integration of people with disabilities into and their work. Junior Squash Team’s winning the World Junior society. Additionally, the Bank’s Smart Village Squash Championship in India for the sixth time headquarters and select branches were lit in blue Alex Workshop Center since 1994. The National Women’s Squash Team in solidarity on World Autism Awareness Day. This year marked the 20th anniversary of the was named Women’s World Team Champion Alex Workshop Center, and CIB supported in China, successfully retaining their title. Cur- Beena the ceremony and workshops held to mark rently, Egyptian players hold the Men’s World Beena is a protocol signed by CIB and the Minis- the occasion. The center has been a pillar of Team Championship, the Women’s World Team try of Social Solidarity to encourage active youth the Alexandrian community, supporting local Championships, and the Juniors’ World Team participation in the community and monitor the artists, artists with special needs, and other Championship titles. development of social care services. The Bank has members of the community to safeguard the been the main partner and financial sponsor of artistic heritage of the city and spread art In support of young players leading the world’s Beena for four consecutive years. This initiative throughout the city. squash rankings, CIB has tailored special spon- successfully attracted thousands of youths around sorships to help eight talented players maintain Egypt who volunteered with orphans, senior citi- Nurturing Athletes their rankings and continue representing the zens, and individuals with special needs. Part of our support to the community is our country around the world. support for sports and for athletes. Squash-re- Arts and Culture lated activities are an integral part of our CSR CIB continued its partnership with Wadi Degla El Sawy Culture Wheel agenda. We believed in the true talent of our Clubs to support young Egyptian squash ath- In 2019, CIB continued its long-lasting sponsorship Egyptian squash players and spotted early on letes by developing their skills and enhancing of El Sawy Culture Wheel, supporting its various in- the potential they have to dominate world rank- their international rankings. The partnership tellectual, cultural, and social activities, including ings. Our efforts to nurture talented athletes is part and parcel of the Bank’s strategy to concerts by local and international artists, cultural and sports include sponsoring tournaments, support up-and-coming talents from the nights, art exhibitions, and documentary films. sponsoring the Egyptian Squash Federation, ground up and builds on our pioneering role and sponsoring athletes. in this area. Cairo International Biennale “Towards the East” 2019 Highlights The 2019 Biennial was the first following an CIB sponsored PSA Women’s World Cham- eight-year hiatus where 80 artists representing pionship and the CIB Egyptian Squash Open 50 countries participated. The artistic works Men’s Platinum, which took place simultane- of the festival were hosted in historical and ously in front of the Great Pyramid of Giza and
100 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 101 OUR CORPORATE GOVERNANCE
102 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 103 Board of Directors Our Corporate Biographies The Role of the Board of Directors Governance Mr. Hisham Ezz Al-Arab, Chairperson The role of the BoD is to ensure that the Bank’s and Managing Director accounts and financial statements are fair, balanced, and understandable while provid- Mr. Hussein Abaza, Chief Executive Offi- ing necessary information to shareholders to cer and Board Member assess CIB’s position, performance, business The CIB Board of Directors and management model, and strategy. The BoD primarily focuses recognize the importance of a strong control A Strong and Mr. Jawaid Mirza, Non-Executive Inde- on CIB’s long-term financial and non-financial environment in managing its risks and contin- pendent Director of the Board success and seeks the best interests for all uously maintain stakeholders’ confidence. In Diverse Board of related stakeholders. The Board is also re- a world where innovation and technological Mr. Mark Richards, Non-Executive Inde- sponsible for setting CIB’s strategic objectives, advancements have facilitated access to an Directors pendent Director of the Board overseeing the implementation of said strate- influx of customer data, trust is a vital value gy, providing oversight of senior management, to all stakeholders. Therefore, CIB adopts (G102-18) - (G102-22) Mr. Bijan Khosrowshahi, Non-Executive ensuring the effectiveness of the Bank’s the most robust standards of governance Director of the Board (representing the internal control systems, managing risk, and practices to ensure the principles of transpar- Our Board of Directors (BoD) consists of ex- interest of Fairfax Financial Holdings Ltd) securing CIB’s institutional reputation and ency, accountability, fairness, and corporate ecutive directors and non-executive directors long-term sustainability. Moreover, the Board responsibility, all of which are prerequisites (NEDs) who possess a long history of diverse Dr. Amani Abou-Zeid, Non-Executive is responsible for setting compensation and and fundamentals of our sound corporate gov- expertise, competencies, and individual qual- Independent Director of the Board performance goals and managing the direc- ernance and conscious leadership to ensure ifications. It is comprised of nine members, tor nomination, evaluation, and succession sustainable and responsible operations. seven NEDs constituting 78%, and one of Mrs. Magda Habib, Non-Executive Inde- planning. It oversees CIB’s economic, social, which represents Fairfax’s interest in CIB. pendent Director of the Board and environmental sustainability initiatives, The structure of our corporate governance Fairfax Financial Holding Ltd. currently holds performing its duties with entrepreneurial entails unique agility that ensures the preser- 6.55% of CIB’s local shares, the single largest Mr. Paresh Sukthankar, Non-Executive leadership, a sound strategy, and risk man- vation and development of the Bank’s values shareholder in CIB through its wholly-owned Independent Director of the Board agement oversight to ensure risks are properly at an optimal level manner while seizing and subsidiaries. All remaining six are independent assessed and managed. (G102-26) optimizing emerging opportunity to uphold members, maintaining a strong element of in- Mr. Rajeev Kakar, Non-Executive Inde- its commitment towards creating value for all dependence across the Board, which enhances pendent Director of the Board its stakeholders in a sustainable manner. Our the objectivity of decision making, vision, and governance framework allows CIB’s business planning process. At CIB, we are spearheading Dr. Sherif Samy, Non-Executive Indepen- operations to be conducted in a responsible the financial sector in Egypt with a strong dent Director (until Oct. 2019) A Sound Governance and profitable manner in the best interests and diverse BoD that is characterized by an of customers, shareholders, employees, and optimal mix of skills, experience, and diversity Mr. Yasser Hashem, Non-Executive Di- Structure (G102-18) other stakeholders. in terms of gender and nationality, with two rector of the Board (until Oct. 2019) female directors (22%) and five non-Egyptian Segregation of MD and CEO Roles The General Shareholders Meeting directors (56%). The Chair of the BoD is Mr. Hisham Ezz Al-Ar- CIB’s Annual General Meeting of Shareholders ab, who is also the Managing Director of CIB. is held in March each year and exercises their CIB’s Lead Director is an appointed indepen- In line with the CBE directives on corporate voting rights. Shareholder consent is required dent member of the BoD whose responsibilities governance as well as international best prac- for key decisions, such as: include developing board-meeting agendas in tices, CIB segregates between the roles and • Adoption of financial statements collaboration with the Chairperson to discuss responsibilities of both the Managing Director • Voting on proposed dividends by the BoD critical issues, following up on with executive (MD) and the Chief Executive Officer (CEO), • Significant changes to the Bank’s corporate management, establishing a comprehensive Mr. Hussein Abaza. Defining the ownerships of governance practices evaluation process, and gathering feedback from these duties ensures clear accountability and • Remuneration Policy BoD members on executive management perfor- responsibilities. (G102-23) • Remuneration of Non-Executive Directors mance, among others. Staying affront of global • Appointment of the external auditor changes, the Bank organized an informative in- The MD is responsible for ensuring adequate • Appointment, suspension, or dismissal of tervention forum for members moderated by top For more information on the Board of and effective governance through managing members of the BoD professors from IMD Business School to align the Directors, please refer to CIB’s 2019 the independent control functions — Risk, • Issuance of shares or rights to shares, re- organization with international best practices. Annual Report. Compliance, Audit, and Legal, and also fo- striction or exclusion of preemptive rights of The BoD is also responsible for the review and cusing on the strategic direction of the Bank. shareholders, and repurchase or cancellation approval of CIB’s sustainability report and the On the other hand, the CEO is responsible for of shares final verification of material topics raised by the managing the Bank’s business lines and day- • Amendments to the Articles of Association business and stakeholders. (G102-32) to-day operations.
104 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 105 Board Committees In addition to the Corporate Sustainability efficient decision making. A written mandate Task Force (CSTF), CIB has seven committees, sets out the duties, responsibilities, and the all chaired by a non-executive board member. reporting scheme and frequency of meetings Each committee chair takes the responsibility of each committee. Separate committees may of informing the Board of significant material be set up by the BoD to consider specific issues issues raised by their respective committees for when the need arises.
Management Committee
Executive Committees
High Lending and Investment Committee
Board of Audit Committee Directors
Governance and Nomination Committee
Non Executive Compensation Committees Committee
Board Risk Committee
Operations and Technology Committee
106 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 107 Convention Convention Board Committee Responsibilities Chair Member Board Committee Responsibilities Chair Member Frequency Frequency
Nonexecutive Committees Board Risk This committee oversees risk exposure Mr. Paresh Dr. Amani The com- Committee management functions and assesses Sukthankar Abou-Zeid, mittee met Audit Committee This committee was established to offer Mr. Sherif Mrs. Magda The management’s compliance with the risk Mr. Bijan four times effective oversight of the integrity of the Samy Habib, Mr. committee strategies and policies approved by the Khosrow- in 2019. Bank’s financial reporting process, the Paresh met five BoD through periodic reports submitted shahi effectiveness of the Bank’s internal con- Sukthankar times in by the Risk Management group. The trol system, and its compliance with all 2019. committee makes recommendations statutory requirements. The committee to the BoD regarding risk management is also responsible for overseeing and strategies and policies (including those reviewing the performance of the Bank’s related to capital adequacy, liquidity internal audit and compliance functions, management, various types of risk: as well as the work of the Bank’s exter- Credit, Market, Operation, Compliance, nal auditors to ensure the independence Reputation, and any other risks the Bank and objectivity of each and the quality of might be exposed to). the audit and compliance processes. Operations and This committee was established to pro- Mr. Rajeev Mr. Sherif The com- Governance This committee advises the BoD on the Mr. Sherif All non- The Technology vide oversight of the Bank’s operations, Kakar Samy, Mrs. mittee met and Nomination general oversight of governance matters Samy executive committee Committee technology strategy, and significant Magda four times Committee and ensures the promotion of a sound gov- directors met six investments in support of this strategy, Habib in 2019. ernance culture within the BoD and the times in as well as operations and technology Bank. This entails a periodic review of the 2019. risk management. Bank’s corporate governance structure and recommending changes, when and if nec- Executive Committees essary, to the BoD. The committee also sits Management The committee is responsible for exe- Mr. Hussein Members: The com- as the Nomination committee with the pri- Committee cuting the Bank’s strategy as approved Abaza Mr. Ahmed mittee met mary objective of setting criteria for select- by the BoD. The committee manages Issa, CEO 30 times in ing new directors and assisting the BoD in the day-to-day functions of the Bank to Consumer 2019. identifying individuals qualified to become ensure alignment with strategy, effective Banking BoD members and recommending director controls, risk assessment, and efficient nominees to shareholders. Besides these use of the Bank’s resources. The commit- Mr. Amr El functions, the committee provides advice tee also monitors the Bank’s strategic Ganainy, and assistance to the BoD, when necessary, associates and subsidiaries. CEO with respect to a potential successor to the Institutional Bank’s Chief Executive Officer. Banking
Compensation This committee was established to pro- Mr. Bijan All non-ex- The com- Mr. Committee vide guidance to the BoD with regards Khosrow- ecutive mittee met Mohamed to the appropriate compensation for the shahi directors three times Sultan, Chief BoD and the Bank’s executive officers in 2019. Operating and to ensure that compensation is Officer consistent with the Bank’s objectives, strategy, and control environment. The Ms. committee ensures that clear policies for Hanan El the Bank’s salaries and compensation Borollossy, schemes are in place and that they are Acting Chief effective at attracting and retaining the Risk Officer best caliber professionals.
108 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 109 Convention Board Committee Responsibilities Chair Member Frequency
High Lending This committee is responsible for man- Mr. Hussein CIB Senior The and Investment aging the assets side of the balance Abaza Manage- committee Committee sheet and its provisioning. Under the ment convened authorities delegated to the committee as weekly stipulated in the Bank’s Credit and Invest- throughout ment Policies, it is empowered to make 2019 and decisions respecting asset allocation. met 56 times. Corporate This task force was established to ensure Dr. Amani Corporate The task Sustainability Task that CIB’s activities reflect the Bank’s Abou-Zeid Sustainabil- force met Force (G102-20) business approach of balancing the stra- ity Team four times tegic goal of increasing profitability with in 2019. serving the broader socio-economic and environmental interests.
(Read more: on Sustainability Gover- nance)
Risk Management (G102-30) Ensuring we adopt a continuously proactive departments (Risk, Compliance, Internal Audit, increasing risks and continuously improve a dynamic risk culture, with robust data gover- approach to risk and regulatory engagement and Legal), in addition to Board Committees. the Bank’s mitigation plan. nance and adaptable technology platform. is a prime focus for CIB, across all operations. Our Board Risk Committee (BRC) is continu- As we are striving to increase the value of the ously being informed by the Business and Risk Our Risk Environment Risk Strategy and Risk business, we are concentrated on maintaining group on matters related to Credit, Market, The Bank fosters a sound risk culture through Appetite Framework a strong risk management framework. CIB’s Liquidity, Operational, Legal, Compliance, its internal policies, communications, and At CIB, risk management is embedded into strategy, governance framework includes structures Reputation, and other risks. Accordingly, the awareness programs to ensure all employees budgeting, and performance management through and processes to identify, manage, mitigate, BRC’s aim is to understand and endorse the fully understand their responsibilities towards providing management with insights necessary to monitor, and report the risks to which CIB is Bank’s current risk position and ensure the risk management on a regular basis. These adopt appropriate procedures. The Risk Appetite exposed, and it aims to sustain the success of adequacy of the Risk Management structure, initiatives work together with the Bank’s solid Framework (RAF) is aligned to our strategy and the Bank’s business and operations, backed by organization, effective process for identifying, risk governance, which is deployed through the is cascaded down to the business segment level a concrete set of policies and procedures rele- assessing and mitigating risks, and the existing Three Lines of Defense model. entrenching risk culture, fostering risk-taking and vant to the scope, size, and complexity of CIB’s Risk measurement methodologies. In 2019, the risk management behaviors, and risk tolerance business. Accordingly, the BoD aims to ensure BRC concurred on the Risk-related policies Our Risk Approach indicators throughout the organization to ensure proper implementation of internal and external and made the necessary recommendations to At CIB, we adopt an independent, holistic, and a forward-looking approach. In addition, the RAF regulations and to mitigate all possible risks. the BoD. It also reviewed the adequacy of the forward-looking approach to risk management accounts for all significant changes arising from in- These mandates are complemented by a set of Bank’s capital (economic and regulatory) and that is enabled through the Enterprise Risk ternal, external, potential, or pre-existing conditions. governance policies designed to promote a cor- the Risk Appetite, as proposed by management. Management (ERM) framework. The Chief Risk porate culture that emphasizes building trust Officer (CRO) manages financial and non-fi- Risk Management Process with key stakeholders. Such a culture is aligned Our Risk Infrastructure nancial risks, the Treasury Middle Office, and CIB maintains a robust Identification, Measuring, with the Bank’s purpose and business strategy The Bank’s objective is to maintain an Internal Control Management functions. CIB Managing, Monitoring, and Reporting (IMMMR) while promoting integrity within the Bank. effective risk infrastructure, including IT were the pioneers on the local and regional process for principal risks, which identifies prima- data architecture, information tools, and levels to employ the ERM framework that ry risk categories and their respective sub-risks; Our BoD is backed up by internal and exter- platforms, event databases, policies, and pro- is characterized by being an integrated and employs effective methodologies and tools for nal auditors, as well as other internal control cedures, as well as other methods to monitor forward-looking risk approach, that combines quantitative and qualitative measurements; adopts
110 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 111 Compliance
appropriate responses; and deploys recovery and reward optimization via better quality models, CIB strictly manages its business in a legal as any wrongdoing, while guaranteeing a contingency plans, as needed. and enhanced risk reporting. This year, the Data and proper manner, diligently complying supportive and encouraging environment Governance team initiated a project to monitor with the provisions of the law and regulation for those who speak out, through the Bank’s Integrated Risk Management Bank-wide KYC defect rates on a weekly and in its activities. Our Compliance group aligns Whistleblowing Policy. The Bank handles The Bank’s comprehensive and integrated risk monthly basis across all relevant business areas. its activities with the highest international cases of whistleblowing, be they from internal framework is not complete without its Stress Test- This exercise led to a significant elimination of standards and best practices and ensures or external sources, very seriously and at a ing Program, which covers the main types of risks defective records while providing insights into that ethical actions and observance of laws senior level. and assesses resilience to unfavorable shocks. This the behavior of and activities performed by and regulations are met by the organization, integrated framework is documented in the Inter- defective customers. Also during 2019, the ADM which promotes greater reliability and affects Conduct Risk Policy nal Capital Adequacy Assessment Process (ICAAP) team built a loan utilization tracker tool that the satisfaction of customers and sharehold- Having customer satisfaction as a strategic and Risk Management Framework (RMF). Several monitored corporate loan utilization on a weekly ers. To this end, CIB has a well-established, priority, CIB is stringent in implementing types of stress testing are performed to assess the basis to provide an instant pulse of the GCR’s independent Compliance group that helps its Conduct Risk Policy. This policy makes potential impact on the Bank’s financial position, overall exposure to CIB facilities. the Bank meet its growth strategies through clear the Bank’s relationship with customers with scenarios regularly updated to reflect dynam- the dedication of a team of industry veterans and our duties toward them. It also outlines ic changes in the economic environment and the Financial Risk and from a variety of backgrounds. the Bank’s approach to the management of Bank’s risk profile to ensure its compliance with Non-Financial Risk conduct risk. CIB considers that the most ef- international standards and global best practices. At CIB, we have constantly assessed and updated The group protects the Bank from the risk of fective way to avoid conduct risk is to embed a the risks that we are exposed to strengthen our legal or regulatory sanctions, material financial culture of integrity and high ethical standards Risk Analytics ability to respond swiftly to rapid changes in loss, and loss of reputation resulting from failure across the organization. Being committed to our digital transformation both international and local risk requirements, to comply with laws, regulations, rules, related strategy, we have employed Data Analytics in adopting a proactive approach to manage risks self-regulatory organizational standards, or Conflict of Interest Policy managing exposures and mitigating risk, as well and build an internal framework. codes of conduct applicable to its banking activ- The Bank’s Conflict of Interest policy guaran- as developing informed and granular risk and ities. Additionally, the group provides intrinsic tees that all staff and board members remain benefits, including constructive communication, aware of any conflict of interest between the improved overall business practices, and a better Bank and their personal, professional, and understanding of the regulatory environment. business interests, providing guidance on Financial Risks how to handle those cases. (G102-25) The group ensures that CIB adheres to compli- ance standards to safeguard the Bank against Corporate Governance and Code a full spectrum of compliance risks through of Conduct Credit Risk Market Risk Liquidity Risk Interest Risk five distinct departments: The Compliance, Code of Corporate Governance Policies, and Procedures division; Corporate An integral part of our governance policy Governance and Code of Conduct division; An- framework is the Code of Corporate Gover- ti-Money Laundering and Terrorism Financing nance. It aims to enhance long-term value division; Foreign Account Tax Compliance Act for shareholders, employees, and other division; and CBE Relations division. stakeholders, and sets out the standards Non-Financial Risks of behavior expected from all employees, Compliance, Policies, and providing staff, senior management, and the Procedures BoD with a comprehensive frame of reference The Compliance, Policies, and Procedures regarding their rights and duties. The code Operational Reputational Compliance Strategic Risk Security Risk and Conduct Risk Risk division ensures that all controls, laws, and further enshrines the principles of equal em- Risk regulations are embedded in the applied ployment opportunity and gender equality. Social and policies and procedures, all of which are peri- Social and Model Risk Vendor Risk IT Risk Environmental odically reviewed to ensure they are up to date. Environmental Risk In 2019, 14 cases were presented to the Staff Risk Whistleblowing Policy Issues committee, including performance Maintaining an inclusive work environment, disagreements, mismanagement issues, and CIB encourages the reporting of suspected violations of the Bank’s code of conduct. violations of the law or Bank policies as well All issues raised to the committee were
112 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 113 thoroughly investigated, and fair and sound training, awareness sessions, e-learning, and atten- decisions were reached. In March 2019, the dance of international conferences and seminars. Corporate Governance and Code of Conduct division issued the first Corporate Governance AML Training Report for 2018, as mandated by the Financial CIB conducts an ongoing comprehensive Regulatory Authority (FRA). anti-money laundering training program for the entire Bank staff in cooperation with the Anti-Money Laundering and EMLCU/EBI to ensure staff awareness with Terrorism Financing applicable laws, regulations, and different pat- Being fully independent in carrying out its terns and techniques. Furthermore, financial activities, the Anti-Money Laundering and crime compliance staff are regularly conducting Terrorism Financing (AML) division aims to tailored training sessions focused on staff roles, protect CIB and all stakeholders against money especially frontliners. Refresh e-learning mod- laundering, terrorist financing, and sanction ules are also followed to refresh staff knowledge risks, which facilitates the Bank integration and ensures up-to-date AML/CTF awareness. into the global financial system. In addition, the department ensures that all bank staff comply In addition to that, CIB ensures that financial with Egyptian AML Law No. 80 for the year 2002 crime compliance staff are up-to-date with all and its amendments. AML international best practices and ensures that they possess relevant technical certificates The division develops, implements, and and attend international conferences and semi- maintains the AML program across the Bank. nars to increase awareness with financial crime The division screens transactions against risks, new trends, techniques, and the appropri- negative lists and sanctioned countries to ate mitigation controls. Moreover, CIB followed shield the Bank against sanctions. The AML the CBE’s mandates regarding anti-money laun- division uses an automated transaction dering activities such as: monitoring system, which detects money laundering, terrorism financing crimes, • Mobile payment CDD measures in March 2019 and suspicious activities. Additionally, the division maintains records of customers and • Prepaid cards CDD measures in March 2019 reports suspicious activites. • Payment aggregator and facilitator in May 2019 CIB ensures the detection of anti-money laun- dering activities through the implementation • Contactless payments in June 2019 of a strict program with a risk-based approach for monitoring customers’ transactions/ • Financial inclusion CDD measures in July 2019 behaviors using an automated monitoring system, where all raised alerts are then investi- • The EMLCU issued new CDD measures in August gated against clients’ KYC profile to determine 2019 circulated to banks in September 2019 whether there is any suspicious transaction/ behavior. In case of reasonable grounds of • Human trafficking, migrant smuggling crimes, suspicion, the case is reported to the EMLCU. and related red flags were circulated to branch- Staff non-payroll accounts are also monitored es in December 2019 by the FCC Department through the gener- ated alerts using the same automated AML • Egyptian National Risk Assessment (NRA) monitoring system, scenarios, and process as results were received from the EMLCU applicable to CIB customers. The three lines of defense/control structure, Recently the EMLCU has released a media cam- where CIB Board of Directors and Senior Man- paign to spread public awareness regarding money agement represent the tone from the top and laundering and terrorism financing ML/TF risks. spread the compliance culture and ensure the CIB ensures increasing staff awareness regarding establishment of a robust financial crime control ML/TF and other financial crime risks through framework within the bank:
114 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 115 1. All lines of businesses, operations man- on any new updates or requirements, in addition Internal Audit employees are one of the group’s key reduce potential negative issues and impacts agement, and frontline staff represent the to reporting annually to the US Internal Revenue pillars. They are carefully selected to staff the de- of natural and man-made disasters. Our plans first line of defense, and are responsible for: Service (IRS). During 2019, the FATCA division partment with diversified professional experience provide structure and guidance for the safety of a. Implementing and maintaining AML/ successfully uploaded two yearly reports to the covering all banking functions and supported by customers and employees in the Bank’s premis- CTF & KYC policies, procedures, and en- IRS as a single Foreign Financial Institution (FFI) professional certifications. The Bank continuously es and regulated procedures for the continuity suring appropriate controls are in place as well as another report as a sponsoring entity provides them with internal and external training, of the banking operations and services to be in order to identify, assess, monitor, and for CIB Mutual Funds. The division also provided and they regularly attend international conferences able to continue providing the best service pos- mitigate financial crime risks of their continuous support for different cases to facilitate to acquaint themselves with the latest internation- sible to our customers. business and allocating sufficient re- the smooth implementation of FATCA rules while al trends and methodologies. sources to effectively mitigate these risks. ensuring customer satisfaction. To guarantee its effectiveness and reliability, our business continuity plans are reviewed b. Strictly abiding by internal policies and CBE Relations External Auditor and tested regularly, to ensure they account for procedures for preventing, detecting, The CBE Relations division acts as an advisor The Board Audit committee recommends the technology, business, and regulatory changes, and reporting suspicious transactions to all the Bank’s departments to ensure they appointment and/or termination of the exter- operations, structure, or location. The Bank and behaviors to the Chief Compliance adhere to CBE regulations and instructions. nal auditor, which is approved at the General undergoes annual disaster recovery drills and Officer (CCO) and/or FCC Head. CIB is the first local bank to establish a divi- Assembly Meeting of Shareholders. Moreover, alternate site testing. The division continuously sion that directly handles relations associated the Board Audit committee evaluates the per- tests the effectiveness of the different security 2. Financial Crime Compliance (FCC) De- solely with the CBE. In 2019, the division as- formance of the external auditor and endorses controls implemented within the environment partment; as a part of the second line of sured regulatory instructions were adhered the prepared financial statements to ensure and the proactive monitoring and detection of defense, is responsible for: to without impact on the business. It collab- they reflect the Bank’s performance and faith- the Bank’s security operations center. We mon- a. The assessment, guidance, monitoring, orated with other divisions as needed to add fully reveal its genuine financial position. In itor the number of reported security incidents and reporting of money laundering, value and guidance as well as assisted in the adherence to CBE regulations, external audi- by staff as well as customers. Also, we ensure terrorism financing, and financial structuring of credit facilities to ensure their tors are reappointed every five years to ensure annual compliance maintenance of ISO 22301, sanctions risks. compliance with CBE regulations and lending objectivity and exposure to new practices. As a PCI, SWIFT, and CBE Regulations. We are in guidelines. As of the third quarter of 2019, the market leader, CIB was the first bank in Egypt partnership with Secure Misr to assist and help b. The design and implementation of the CBE Relations division became part of the to conduct an external quality assurance to the Bank maintain its PCI-DSS Certification on financial crime compliance program, re-engineering of the Trade Finance division to its audit activities by an independent exter- an annual basis. including policies, procedures, and in- enhance the Inward Documentary Collections nal audit firm in 2015. Three years later, this ternal control framework. (IDC) process, allowing it to be controlled and practice became mandatory in the Egyptian Consumer Awareness monitored through a workflow platform (BPM) banking sector. CIB maintains a strong customer awareness c. The submission of a quarterly report to the thereby enhancing performance and efficiency. framework that communicates with the cli- Board Audit committee on the compliance ents on different channels, including ATMs, activities and evaluation of the full com- Business Continuity digital channels, emails, and messages. The pliance function and its effectiveness. The Internal Audit CIB is empowered by its Business Continuity communication focuses on the Bank’s respon- report highlights identified gaps to close. The Internal Audit group provides an independent division. Strong organizations have to be ready sibilities towards protecting the customers’ The CCO may recommend changes to inter- and objective assurance and consulting activities to adapt and react to unforeseen circumstances information as well as the customers’ sound nal policies to increase the effectiveness and to its stakeholders to add value and improve the and disasters, whether man-made or natural. security practices that should be followed to keep pace with local requirements as well as organization’s operations. It plays a vital role in The Business Continuity division plays an protect their information. international best practices. The CCO and supporting senior management in accomplishing integral role in ensuring the organization’s FCC Department Head are the focal point the Bank’s objectives by assessing the adequacy readiness to face any sudden event that may Cyber Security and Digital Risks for all AML issues with internal and external and effectiveness of the control system. In addi- impact its operations/services and protects Digital transformation introduced a new security authorities and responsible for reporting tion to this, it also evaluates and enhances the the Bank against any internal/external infor- attack surface related to cyber and digital security suspicious transactions to the EMLCU. effectiveness of Enterprise Risk Management and mation/cyber security threats. This division is risks, which needs enhanced security controls and governance processes. also responsible for raising the awareness of measures to protect the environment against cyber 3. Internal Audit; as the third line of de- staff and customers on security issues through threats. Information and cyber security risks en- fense, is responsible for independently The Board Audit committee acts as the backbone continuous awareness activities. Moreover, hance security measures and controls to mitigate evaluating and validating the effectiveness of the Internal Audit group. The Internal Audit business continuity assists in maintaining the the identified risks. Further enhancing the proactive of the compliance program. group is empowered by directly reporting to the Bank’s compliance status with industry and detection and monitoring of such risks to minimize Audit committee, approving its mandate, and global standards and regulations. the impact on the confidentiality, availability, and Tax Compliance preserving its independence to act as a third line integrity of the Bank’s information assets. The Foreign Account Tax Compliance Act of defense. The Audit committee also performs Business Continuity Plan (FATCA) division ensures correct implementa- a full oversight on all Internal Audit activities, CIB has full-fledged business continuity plans, The Bank follows a mature and secure soft- tion of FATCA regulations and actively follows up according to a risk-based audit methodology. which were developed to mitigate risks and ware acquisition and development life cycle
116 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 117 process that ensures embedding the neces- 2019 witnessed CIB spearheading change in sary security requirements at the early stages local and regional markets by engaging and of any new project or business initiatives as being showcased in multilateral task forces well as implementing the necessary security and regional forces alike, including joining the measures, and controls in alignment with World Economic Forum (Africa), Smart Africa, CIB’s security polices, industry standards, and the European and African Union’s Digital and regulations. This is done in addition to Economy Task Force (EU AU DETF). Moreover, the regular security assessments and tests CIB partnered with Carnegie Mellon University, a that take place before the rollout of any new global leading data science university, to provide project and upon major changes. real-life business case practicum courses to their Master of Science in Information Technology Expanding Our (MSIT) degree program cohort in Kigali, Rwanda. To maintain its geographical expansion, CIB Footprint Into Africa established its Ethiopia Representative Office in Last year’s sustainability report, “A Blossom- April 2019 in Kirkos Sub City, Addis Ababa, and has ing Land”, mentioned how 2018 was marked been fully operational since 19 July 2019. Entering as the year CIB contributed to the African one of the most attractive markets in the region, Financial Arena. With geographical expansion with one of the highest GDP growth rates globally set as part of our corporate strategy, CIB has over the last few years and the second-largest focused on our African neighbors. CIB’s Corre- population in Africa, CIB will be able to further spondent Banking team expanded its coverage its expansion strategy for tremendous growth of Sub-Saharan Africa to include a portfolio of opportunities. The office works closely with Egyp- banking relationships in 22 countries across tian corporations operating in Ethiopia, as well as different regions of the continent. international and local financial institutions to offer creative solutions for their foreign and local of business travelers and investments, create a financing needs. The office maintains and builds continental customs union to streamline trade, relationships with Egyptian expatriates in Ethi- and attract long-term investment in Africa. opia and focuses on developing strong ties with Additionally, these countries have a successful Ethiopian banks to pave the way for establishing record of accomplishments in digital banking on-the-ground market intelligence within the and financial inclusion, which offers CIB an un- country. As of April 2020, we completed a trans- matched learning opportunity in these arenas. action that will see CIB enter the Kenyan market, further expanding our geographical reach. Digital Economy Task Force (DETF) CIB is the sole representative of Egypt’s private CIB has always been on the lookout for pro- sector in the Digital Economy Task Force (DETF). ductive organic growth opportunities that It is a joint venture between the African Union and diversify its operations, balance sheet structure, the European Union. This invitation cements CIB’s and sources of income. Given the fundamental position as a leader in the development of the similarities the region shares with Egypt, CIB financial sector, and the digitalization of banking management concluded that Africa — specifi- services, ultimately leading to financial inclusion. cally East African countries — being a natural The DETF consists of multiple stakeholders from geographic extension to Egypt, presents lucra- government, civil society, financial institutions, tive growth opportunities for CIB. development agencies, and the private sector gathered to achieve cross-border integration and In addition to its plentiful attractive investment cooperation in Africa. Through this platform, opportunities, the English-speaking region is the DETF seeks to establish its goals by devel- also a key market for Egypt-based products in oping policies and recommendations to create several sectors, and its political stability, as ascer- alignment across the national, regional, and tained by the Bank’s recently developed political continental levels and ensure synergies between risk index, only underscore its attractiveness. the initiatives under implantation. This platform Moreover, East African countries are part of the enables CIB to play a pivotal role in the African African Continental Free Trade Area (ACFTA), continent’s digital transformation and Egypt’s which is expected to allow the free movement national and regional aspiration.
118 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 119 We’re in this Together COVID-19 Outbreak
Working With All Our Stakeholders to Combat COVID-19
Protect, Serve, and Support It is in times of crisis that true leadership shines, We have prohibited all physical meetings, and managing adversities and sustaining resilience suspended all business trips and all training while showing actionable compassion. In this programs, both in Egypt and abroad. More- unprecedented era of the COVID-19 crisis, the over, all interviews and assessments are being global economy is shaking, people are experienc- conducted online. ing financial difficulties, and small businesses are on the verge of default. CIB acknowledges its We understand that exchanging banknotes is responsibility and role in backing its stakehold- a potential threat and a possible source of in- ers in the face of calamity. fection, so medical gloves were provided to all employees that handle cash and work at cen- During such pressing times, we put our agility tral vaults. Specialized sterilization measures in motion on every possible level. Our digital and constant hand sanitization measures have transformation strategy allows us to respond been implemented across all service areas. when our nation called upon us. The CBE deployed measures to support the country 14 days of paid leave is granted to any staff in maneuvering its economy through these member suffering from COVID-19 symp- difficult times, with the goal of protecting toms, or who has been in close contact with businesses and individuals, which CIB has family or friends suffering from symptoms, actively implemented. or who has recently traveled. This will allow them to self-isolate at home and prioritize Throughout this crisis, we are protecting our their health. employees, serving our customers, and sup- porting our community. We are committed All CIB staff and their families enjoy med- to fulfilling our customers’ banking needs ical insurance provided by the nation’s top while guaranteeing the safety and well-be- insurers. In addition, CIB has set up a 24/7 ing of our customers and employees. Our hotline for employees reporting any corona- teams are taking all necessary precautions virus symptoms so they can determine what to provide uninterrupted services through actions need to be taken and how to handle our various banking channels for your safety the situation. and convenience. We Serve Our Customers We Protect Our Employees At CIB, we have immediately applied social dis- We are striving to protect our most valuable tancing measures by admitting fewer customers asset, our employees. To this end, CIB has in our waiting areas at all times. Floor stickers reduced the number of employees per branch to promote social distancing have been added while still maintaining our capacity to serve cli- to our ATM areas and hand sanitizer dispensers ents. In addition, several branches were closed have been installed at CIB ATMs. for sanitation where deemed necessary. We have also accommodated workflow changes as CIB has complied with the new CBE regula- a preventive measure for employees. tions, reflected in our efforts to promote digital banking, reduce banking fees, and raise public We activated our work from home plans, with awareness. More specifically, CIB has waived priority given to those at greatest risk (indi- non-CIB ATM withdrawal fees and adjusted viduals with medical conditions, pregnant withdrawal and deposit limits, increased debit women, and mothers with childcare needs). and credit card contactless transaction limits,
120 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 121 removed late payment fees, postponed install- key figures, and business leaders. Additionally, CIB ments on personal and mortgage loans for six is depositing EGP 8 million in the Emergency and months with no penalties, and more. Crisis Account at Banque Misr, a fund devoted to supporting the households and businesses that have As a strong advocate for SMEs, we support our been deeply affected by the current circumstances, clients in managing this crisis by easing their an initiative led by the Federation of Egyptian Banks financial obligations, such as forgiving half of the in coordination with the Central Bank of Egypt. principal on loans to nonperforming clients and to fully forgive unearned interest. While financial donations are an immediate way to support the community, the most critical contribu- Our business banking clients can apply online tions are those that support the healthcare system for any Business Banking product and submit all in treating and preventing the spread of the virus. documents electronically. Our newly dedicated CIB is donating USD 2.5 million to Tahya Misr to SME contact center (Egypt’s first) will provide the buy 100 RT-PCR detection kits to increase the test- needed assistance to SME clients on all banking ing capacity for COVID-19 across Egypt. inquiries in this difficult time. As Egypt’s leading private sector bank, CIB is con- Leveraging Digital Banking stantly exploring further initiatives and proactive On a positive note, digital banking has been a measures to ensure the safety and wellbeing of safety-net during this crisis. Through our digital our community. banking services, we offer our customers a more hygienic way to bank. Our marketing efforts are focused on driving traffic away from branches and towards digital channels and ATMs while ensur- “Our marketing ing access and availability to our digital services. We have published tutorial videos on our public website, YouTube, and Facebook explaining how efforts during to access and use our digital channels. the COVID Our comprehensive suite of digital payment solutions and services will minimize CIB clients’ pandemic are need to use cash and lessen the need to visit branches. Zaki the Bot is another channel that focused on driving can absorb the increase in customer inquiries. traffic away Smart Wallet fees have been waived for the fol- lowing transactions: P2P transfers, VCN, and cash-out transactions through ATMs. from branches
Supporting Our Community and towards In line with our commitment to support our community from the impacts of COVID-19, CIB digital channels has taken the initiative to support citizens that are struggling during these challenging times by part- and ATMs and nering with and contributing to the efforts of the foundations that are responding to those in need. ensuring access CIB has partnered with the Egyptian Food Bank with a fund of EGP 1.6 million to support the urgent needs and availability of 10,000 families whose main source of income has been impacted during this crisis. This contribution to our digital was in response to the “Good Challenge” initiative that went viral amongst senior government officials, services.”
122 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 123 2019 Awards
Middle East’s Best Bank for Corporate Responsibility, Best Mobile Banking App, Global Finance Euromoney
Most Innovative Digital Bank and Best Trade Finance Services, Best Bank in Egypt, Global Finance Global Finance
Best Bank in Egypt, Euromoney Best Trade Finance Provider in Egypt, Global Finance
Best Online Portal Services, Global Finance Best Treasury and Cash Management Providers in Egypt, Global Finance
Best Information Security and Fraud Management, Global Finance Best Subcustodian Bank in Egypt, Global Finance
Best Online Deposit, Credit, and Investment Product Offerings, Best Bank for Payments and Collections in the Middle East, Global Finance Global Finance
Best Bill Payment and Presentment, Global Finance Best FX Services, EMEA Finance
Best Integrated Consumer Banking Site, Global Finance Best Payment Services in North Africa, EMEA Finance
Best in Mobile Banking, Global Finance Number 38 on Forbes Middle East’s “Top 100 Listed Companies in the Arab World” (highest of the four Egyptian companies listed)
124 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 125 GRI Index
CIB-SR19 - GRI Content Index CIB-SR19 - GRI Content Index
GRI 102: General Disclosures (Core Option) GRI 102: General Disclosures (Core Option)
Disclosure Page number(s) or Disclosure Page number(s) or Category of information Category of information /KPIs URL references /KPIs URL references
Organizational Profile G102-21 Consulting stakeholders on economic, environmental, 22 - 27 and social topics G102-1 Name of the organization 2 G102-22 Composition of the highest governance body and its 104, 105 G102-2 Activities, brands, products, and services 14, 15, 40-65 committees G102-3 Location of headquarters 2 G102-23 Chair of the highest governance body 105 G102-4 Location of operations Egypt G102-24 Nominating and selecting the highest governance 104 - 110 G102-5 Ownership and legal form 2 body G102-6 Markets served 14, 15, 40 - 65 G102-25 Conflicts of Interest 113 G102-7 Scale of the organization 14, 15, 40 - 65 G102-26 Role of highest governance body in setting purpose, 106 values, and strategy G102-8 Information on employees and other workers 82 - 94 G102-30 Effectiveness of risk management processes 110 - 112 G102-9 Supply chain 65 G102-32 Highest governance body’s role in sustainability 104 - 110 G102-10 Significant changes to supply chain None reporting G102-11 Precautionary Principle or approach 110 - 112 G102-37 Stakeholders’ involvement in remuneration 104 G102-12 External initiatives 28 Stakeholder engagement G102-13 Membership of associations 93 G102-40 List of stakeholder groups 24 - 27 Strategy G102-41 Collective bargaining agreements G102-14 Statement from senior decision-maker 8, 9 G102-42 Identifying and selecting stakeholders 24 - 27 G102-15 Key impacts, risks, and opportunities 25 - 27 G102-43 Approach to stakeholder engagement 24 - 27 Ethics and integrity G102-44 Key topics and concerns raised 25 - 27 G102-16 Values, principles, standards, and norms of behaviour 16, 17 Reporting practice
G102-17 Mechanisms for advice and concerns about ethics 13 G102-45 Entities included in the consolidated financial Annual Report 2019 Governance statements G102-46 Defining report content and topic Boundaries 25 - 27 G102-18 Governance structure 104 - 110 G102-47 List of material topics 25 - 27 G102-19 Delegating authority 22, 23, 106 - 110 G102-48 Restatements of information None G102-20 Executive-level responsibility for economic, 22, 23, 106 - 110 environmental, and social topics G102-49 Changes in reporting 25 - 27
126 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 127 CIB-SR19 - GRI Content Index CIB-SR19 - GRI Content Index
GRI 102: General Disclosures (Core Option) GRI 102: General Disclosures (Core Option)
Disclosure Page number(s) or Disclosure Page number(s) or Category of information Category of information /KPIs URL references /KPIs URL references
G102-50 Reporting period 2 G303-1 Interactions with water as a shared resource 71 G102-51 Date of most recent report 2 Social KPIs
G102-52 Reporting cycle 2 G401-1 New employee hires and employee turnover 94 G102-53 Contact point for questions regarding the report 3 G401-2 Benefits provided to full-time employees 90 - 91 G102-54 Claims of reporting in accordance with the GRI 2 G401-3 Parental leave 90 Standards G404-1 Average hours of training per year per employee 86 - 90 G102-55 GRI content index 126 G404-2 Programs for upgrading employee skills and transition 86 - 90 G102-56 External assurance 132 assistance programs GRI 103: Management Approach 2016 G404-3 Percentage of employees receiving regular 89 performance and career development reviews Disclosures on the management approach has been reported on all material topics through the relevant G405-1 Diversity of governance bodies and employees 82 - 84 section covering the material topic G405-2 Ratio of basic salary and remuneration of women to 82 - 84 men G406-1 Incidents of discrimination and corrective actions 82 - 84 taken Material Topics : Key Performance Indicators G 413-1 Operations with local community engagement, impact 96 - 101 assessments, and development programs Economic KPIs G 414-1 New suppliers that were screened using social criteria 65 G201-1 Direct economic value 14, 15, 40 - 65 G 414-2 Negative social impacts in the supply chain and 65 G201-2 Financial implications and other risks and 70, 71 actions taken opportunities due to climate change G 417-3 Incidents of non-compliance concerning marketing None G201-3 Defined benefit plan obligations and other retirement 84 - 93 communications plans G 418-1 Substantiated complaints concerning breaches of None G202-1 Ratios of standard entry level wage by gender 90 - 91 customer privacy and losses of customer data compared to local minimum wage G203-2 Indirect economic impacts 40 - 77 G204-1 Spending on local suppliers 65 Environmental KPIs
G302-1 Energy consumption within the organization 70 - 72 G302-3 Energy intensity 70 - 72 G302-4 Reduction of Energy Consumption 71
128 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 129 DCarbon© Villa 78, road 282, Investment Village, Cairo, Egypt. www.dcarboneg.com [email protected] Independent Assurance Statement
To the Board of Directors Commercial International Bank (CIB)
Introduction Dcarbon is a local sustainability and environ- • Verification of claims (limited to data and in- • Assessment that the report has been prepared A Limited Assurance level was obtained for mental consultancy firm registered under the formation presented). in accordance with GRI Standards (Core option disclosures on environmental footprint and Egyptian law no. 159 for the year 1981 and its and Topic Specific Standard Disclosures of ma- procurement practices. executive regulation. Dcarbon is a certified Assurance procedures back-end reviews and terial topics as listed in the report). training partner to the Global Reporting data assessments were conducted by DCarbon’s We advise stakeholders to review the annual Initiative (GRI), and a GRI Gold Community Senior Economist, Ms. Amira El Masrafawy. • Review of the Report to ensure that there is report for assurance on financial performance member. Our main focus is to assist organi- no misrepresentation of disclosures as per the and other standards of practice. zations, public and private, in understanding The assurance included Dcarbon’s multidisci- scope of assurance and our findings. and addressing their economic, environmen- plinary independent team of experts in auditing Conclusion tal, and social impact. environmental, social, and economic information The procedures performed in a limited assur- We have reviewed the Sustainability Report of while abiding to our values of integrity, confiden- ance engagement are less in extent than for a the Commercial International Bank. Considering DCarbon was engaged by CIB to perform an tiality, professional competence, objectivity, and reasonable assurance engagement. the risk of material error, we received necessary independent assurance on its sustainability due attention. explanations from the bank to support sufficient reporting process (‘the Report’), in order to The level of Reasonable Assurance was ob- evidence to our assurance conclusion. Based on advance the implementation of GRI reporting The nature, timing, and extent of procedures tained in regard to the disclosures covering the activities performed and evidences received, principles and disclosures for fulfilling the GRI selected depended on our engagements with the governance, strategy, stakeholders’ engage- in our opinion, the Commercial International Standards (Core option). bank, data provided, and the approval of CIB’s ment practices, materiality assessment, scale Bank has complied, in all material respects, with Sustainability Governance Body delegated by of the organization, products and services, the GRI Standards (Core Option) for sustainabil- Scope, Boundary, and Limitations the Board of Directors. market presence, employee well-being, and ity reporting criteria. The scope of assurance has included data and management approach of activities under information for the period 1 January 2018 to 31 The Bank was responsible for identification of social investments. December 2019 for operations in Egypt, based on material sustainability issues, establishing and GRI Standards in accordance with Core option. maintaining appropriate internal performance management, and the relevant internal control The boundary of the report comprises of data systems for the reported data. and information that were captured across • Review of internal policy, procedures, May Elwany Ehab Shalaby, Ph.D. its operational business lines. The boundary and strategy documents as provided by Vice-president of Strategy & Lead Expert Chairman & CEO equally includes the Bank’s Head Office support the Bank. Lead Report Auditor functions, Corporate Governance, and stake- holders’ engagements as part of this assurance • Review of materiality and stakeholders’ en- and as indicated in the Report. gagement framework deployed at CIB.
Assurance scope excludes: • Assessment of the systems used for data collec- • Data and information in the Report outside tion and reporting of the standard, including this reporting period indicating forward-look- data collection through surveys and/or writing ing statements by CIB. prompts; where applicable or available.
• Verification statements indicating testi- • Evaluation of the processing and monitoring of monials, opinions, success stories, and/or data collection for disclosures. aspirations.
130 I CIB Sustainability Report I 2019 2019 I CIB Sustainability Report I 131