UPDATE 1-Egypt's CIB says 2011 net profit fell 20 pct

* Net profit in 2011 falls to 1.62 bln EGP from 2.02 bln

* Q4 net profit falls 9 percent to 549.1 mln

* Bank adds provisions as "pre-emptive" step

(Adds details)

CAIRO, Feb 22 (Reuters) - Commercial International

Bank (CIB), Egypt's biggest private bank by assets,

said on Wednesday its consolidated net profit fell 20.1 pct in

2011 as the economy slowed in the wake of Egypt's popular

uprising.

The decline in full-year profit was "primarily driven by

much higher provisions" taken "as a pre-emptive measure to cope

with the on-going economic upheaval Egypt is witnessing," the

bank said in an emailed press release.

Egypt's business sector has been struggling to recover from

the disruption in the wake of the uprising a year ago that led

to President Hosni Mubarak's overthrow.

Egypt's banks have also been hurt by a weak financial market

and an exodus of foreign investors.

CIB said its net profit slid to 1.62 billion Egyptian pounds

($268.4 million) from 2.02 billion in 2010.

Net profit for the fourth quarter fell by 9.0 percent to

549.1 million pounds, Reuters calculated by subtracting out the

bank's nine-month figures.

CIB's increased its provisions to 321 million pounds in 2011

from 6 million pounds in 2010, it said.

Capital gains from the sale of investments in 2011 fell 80

percent to 39 million pounds after the bank chose not to sell

investments at current market prices, it said.

Net interest income rose 19.2 percent, helped by higher

treasury bill and local currency interest rates, the bank said.

The average yield on one-year Egyptian T-bills climbed from

10.44 percent in January 2011 to 15.19 percent in December as

the government sought to finance its burgeoning budget deficit,

according to central bank figues.

Interest rates on loans also rose as government borrowing

crowded out lending to the private sector.

CIB said non-interest income fell 26.6 percent because of a

slowdown the banking sector brought about by Egypt's uprising,

while dividend income dropped by 63 percent as companies

retained more of their earnings as a precautionary measure.

Net loans increased to 41.07 billion pounds at the end of

2011 from 35.18 billion pounds a year arlier, CIB said.

($1 = 6.0362 Egyptian pounds)

(Reporting by Patrick Werr)