EFG-Hermes 2011 profit tumbles 63pc
Cairo, April 8, 2012
Egyptian bank EFG-Hermes reported a 63 percent drop in 2011 net profit on Sunday as the economic fallout from uprisings across the Middle East pushed down brokerage, investment banking and asset management revenue.
Net income before minority interests was 307.7 million Egyptian pounds ($51 million), down from 826.2 million pounds in 2010, a statement from the bourse said.
Like other Egyptian financial firms, EFG was hit last year by the turmoil that followed a popular uprising that unseated the country's president.
Consolidated operating revenue fell 31 percent as investment bank revenue tumbled 65 percent. The unit's fee and commission income fell 31 percent, EFG said in a statement. It closed four major transactions during the year with a combined value of over $27 billion.
Assets under management grew 2.2 percent from the third quarter after three quarters of declines. The company said commercial bank Credit Libanais, which EFG bought in 2010, reported a profit that offset a net loss in investment banking, "underscoring the wisdom of management's pursuit of a universal banking strategy". - Reuters
More Finance & Capital Market Stories
- Deutsche Bank named top FX bank in Mideast
- Doha bourse breaks key 9,000 level
- UAE economic growth hits 4.4pc in 2012
- DFM firms achieve 100pc compliance
- NBK Egypt unit Q1 profit up 15.3pc
- Barclays names key official for Abu Dhabi
- MEPS, Umniah ink MasterCard services deal
- Bahrain insurance market ‘set to grow’
- Takaful poised for big growth
- Qatar Holding, Italy fund eye Versace