One of Egypt’s largest banks Commercial International Bank (CIB) has reported a 35 per cent increase in its full-year profits compared with 2012 results. Profit reached £E3bn ($430.9m) last year.

Funding to businesses and individuals reached £E45.5bn by the end of the year and deposits increased by 23 per cent to £E96.8bn. Egyptian banks have been able to increase profits due to the high interest rates the government paid last year for short-term funding.

The state has been dependent on domestic funding sources due to the lack of foreign investment appetite following increased political instability.

“2013 net profits came slightly above estimates on the back of higher-than-expected interest received on government securities and lower non-interest expense,” says Monsef Morsy from Egypt-based Pharos Research.

The bank also reported a strong fourth quarter with net income reaching £E757m, an increase of 29 per cent on the same quarter the previous year.

The fourth-quarter results did drop by 17.8 per cent compared with the previous quarter due to increased loan loss provisions.