Cairo-Mubasher: Prime Holding's Investment Research unit set its target price (TP) for Credit Agricole – Egypt (CAE) at EGP 28.76 per share, with a 'buy' recommendation on the stock.

In August 20, 2015 the ministry of finance approved two important decisions concerning the current income tax rate on companies and banks that realize revenues greater than EGP200 thousand per annum; the first approval was concerned with canceling the additional 5% to the income tax rate that was approved in 2014 and was supposedly to be applied for 3 years.

Meanwhile, the second decree was regarding cutting the original income tax rate to 22.5% instead of 25% before.  

Accordingly, CAE will be subject for a tax rate of 22.5% over 2015 instead of 30%. This fall in tax rate will result in rising the bank’s estimated net income after tax for 2015 by 11% and afterwards.