UPDATE 1-Egypt CIB's fourth-quarter net profit rises 7 pct

Tue Feb 19, 2013 4:47pm EST

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(Adds financial details, industry background)

CAIRO Feb 19 (Reuters) - Commercial International Bank , Egypt's biggest listed bank, said on Tuesday fourth-quarter net income rose 7 percent year-on-year to 588 million Egyptian pounds ($87.4 million).

CIB said in a statement it made "record" revenue of 5.34 billion pounds for full-year 2012, and net income of 2.23 billion pounds for the full year.

Egyptian banks such as CIB have been able to keep their bottom lines growing thanks partly to high interest rates paid by the state last year for its short-term borrowing.

State borrowing costs soared as foreign investors exited the local treasury market, tax receipts suffered from a weak economy and the government boosted spending to meet popular demands for better living standards after an uprising against President Hosni Mubarak in 2011.

But Egypt's business sector has been struggling to recover from the disruption that followed Mubarak's overthrow.

Last week, ratings agency Moody's cut the credit ratings of five Egyptian banks including CIB, citing the weakening of the country's creditworthiness and the banks' high exposure to Egyptian government securities and related instruments.

The operating environment was also weakening, as was the Egyptian authorities' capacity to support government-owned banks, it added.

CIB said its total standalone gross loans were 44.4 billion pounds at the end of 2012, up 1.42 billion over full-year 2011. Customer deposits were 78.8 billion pounds on a standalone basis, up 10 percent over year-end 2011, it added. ($1 = 6.7316 Egyptian pounds) (Reporting by Alexander Dziadosz; editing by Gary Hill and Matthew Lewis)

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