EFG Hermes Holding reports 26% increase in net profit for first nine months of 2021

EFG Hermes Holding has reported EGP1.1bn in net profit for the first nine months of 2021, marking a 26 per cent year-on-year increase.

Its revenues from January through September also rose 8 per cent over the same period last year to reach EGP4bn.

The group’s operating expenses declined 14 per cent year-on-year to reach EGP760m in 3Q21, predominately on lower employee expenses. For the third quarter, EFG Hermes’s net profit after tax and minority interest stood at EGP356m, down 16 per cent year-on-year, while its sell-side revenues grew 45 per cent year-on-year to EGP406m.

“EFG Hermes’ core operations have continued to deliver solid performances and to play a vital role in fortifying the group’s position,” said EFG Hermes Holding’s group CEO Karim Awad.

“Our NBFI platform has continued to perform exceptionally well, with our microfinance platform, Tanmeyah, booking a record high portfolio value of EGP3.5bn, the highest since Tanmeyah’s inception. Moreover, our buy-now, pay-later (BNPL) fintech player, valU, continued to expand its relationships with merchants and grow its portfolio of clients.

“At our sell-side operations, I am pleased with our investment banking division, where the team closed a record-breaking nine transactions in a single quarter, worth over $2.6bn.”

On the investment banking front, revenues grew by 184 per cent year-on-year to EGP107m driven by strengthening advisory fees and a higher number of transactions for the period, a statement said. Meanwhile, revenues from the brokerage division increased by 23 per cent annually to EGP299m in 3Q21, driven by higher revenues reported by the group’s operations in Egypt, Kuwait, and its structured products desk.

The group’s buy-side revenues declined by 74 per cent year-on-year to EGP115m in 3Q21, while its private equity revenues stood at EGP29m for the same period. Also, the group’s asset management division recorded a top line increase of 32 per cent year-on-year to EGP86m in 3Q21.

Revenues generated by EFG Hermes’ capital market and treasury operations contracted 58 per cent year-on-year to EGP156m in 3Q21.