RNS No 8792u
COMMERCIAL INTERNATIONAL BANK (EGYPT) S.A.E.
30th April 1998

TO: COMPANY ANNOUNCEMENTS OFFICE

The Egyptian Parliament has adopted a change to Tax Law No. 157 for 1981
on January 22, 1998.  The change was incorporated in Law No. 5 for 1998.  It
affects, among other issues, the deductibility of interest income on
securities which was previously 90% deductible.  Under the amended tax
law, any interest cost related to funding the securities must be netted
against the interest income received from the funded securities to calculate
the net allowable deductible.

As Commercial International Bank (Egypt) S.A.E. ("CIB") was using its
portfolio of treasury and corporate debt securities to manage its tax liability,
the change in the tax treatment of these instruments will result in a
significant increase in the Bank's effective tax rate starting from the
current fiscal year ending December 31, 1998.

As the detailed calculation formula set by the Egyptian Tax Authority has
not yet been announced, CIB, based on its external tax audit advice, has
provided for its tax liabilities on a very conservative basis for its first
quarter financial results to March 31, 1998.  This resulted in a drop of net
profits to EGP 47.0 million as compared to EGP 67.7 million for the same
quarter of the previous year due to an increase in tax provisions from 
EGP 1.7 million in Q I, 1997 to EGP 24.5 million in Q I, 1998.

This letter is sent to the London Stock Exchange in compliance with
Listing Articles 23.58 and 23.59.

Our financial results for the first quarter of the year ending March 31, 1998
will be sent under seperate cover.

FROM: COMMERCIAL INTERNATIONAL BANK (EGYPT) S A E 

END

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