Egypt’s EFG Holding notches up record revenues

Egyptian banking and investment giant EFG Holding has achieved strong revenues and profits for its 2023 financial year, thanks to solid performances in its three business units.

EFG Holding is headquartered in Egypt and operates out of several markets, ranging from the UAE, Saudi Arabia and Kuwait to Bahrain, Pakistan, Kenya, Nigeria and the UK. It operates in three verticals, which include its investment bank (EFG Hermes), its sell-side and buy-side operation, Valu, and its commercial banking arm, aiBANK.  

The company — which is listed on both the London and Cairo stock exchanges — reported on Wednesday that its net profit after tax and minority interest came in at EGP2.5bn, up 39 per cent year-on-year. This was off the back of the group achieving its highest-ever recorded revenues of EGP14.7bn.

Operating expenses for EFG Holding further rose 35 per cent year-on-year on higher employee expenses and other general administrative expenses. Meanwhile, total assets at the group stood at EGP 121.9bn at the end of December 2023.

The positive results for EFG Holding come amid an improving economic picture in Egypt. S&P Global Ratings upgraded Egypt’s credit outlook from stable to positive on Tuesday. The North African country’s long- and short-term local and foreign currencies credit ratings remain at “B-/B.”

The ratings agency further highlighted Egypt’s commitment to exchange rate liberalisation combined with budgetary consolidation targets as being crucial for boosting international confidence in the economy. 

Earlier this month, Egypt’s central bank increased interest rates by 600 basis points and allowed the Egyptian pound to free float, in exchange for a IMF loan package to increase from $3bn to $8bn. After the Egyptian pound was free floated on March 6, the currency lost around a third of its value.  

READ MORE: Egypt’s credit outlook upgraded to positive by S&P amidst foreign investments

“With Egypt’s market taking a pivotal turn following the recent floatation, EFG Holding looks ahead with optimism towards our future endeavours,” said ​​Karim Awad, Group CEO of EFG Holding.

“Our robust balance sheet has been strategically hedged to withstand the fluctuations in the EGP, while our expanding regional operations consistently yield considerable USD revenues annually. These factors, combined with the promising growth trajectories of Valu, aiBANK, and Tanmeyah, instil in us a growing sense of confidence in the resilience and efficacy of the business model we have diligently built,” added Awad.