EFG Hermes 9-month profit down 19pc
Cairo, November 19, 2012
EFG Hermes, the biggest investment bank in Egypt, has reported an 18.8 per cent decline in its net profit for the first nine months which fell to 232.1 million Egyptian pounds ($38 million) from 286 million pounds.
Announcing the consolidated financial results for the third quarter, EFG Hermes said its net income rose 37 per cent year-on-year compared to EGP 45 million on total consolidated operating revenues of EGP 471 million.
The group revenues rose 19 per cent year-o-year in the third quarter driven by an 18 per cent rise in Investment Bank revenue to EGP 176 million, reflecting an increase in revenues booked by capital market and treasury operations in the third quarter.
The commercial bank revenue rose 20 per cent year-on-year to EGP 295 million in the third quarter, driven by growth in net interest income and trading income. In the nine month period, the group revenue rose 9 per cent to EGP1.4 billion.
Revenues for the quarter split as 63 per cent contributed by the Commercial Bank and 37 per cent by the Investment Bank.
At the Investment Bank, fee and commission income was essentially flat year-on-year in third quarter, while revenues from capital markets and treasury operations rose 243 per cent.
On the fee and commission side, a 34 per cent Y-o-Y rise in revenues from Securities Brokerage offset decline in contributions from the Asset Management, Investment Banking and Private Equity businesses.
The revenue and earnings growth in the third quarter were supported by both the fundamental soundness of the firm’s universal banking strategy and the Group’s sharp emphasis on cost control.
Despite continued regional and international economic headwinds, the third quarter was a solid one for both the Investment Banking and Commercial Banking platforms, leaving management cautiously optimistic in its outlook on both the fourth quarter and 2013, said the bank.
EFG Hermes said its securities brokerage again closed the quarter as the largest broker in the Arab world, maintaining its number-one position in Egypt and Kuwait while retaining leading positions in other key regional markets.
Across the Arab world, total market volumes fell 31.3 per cent quarter-on-quarter, largely on the seasonal effect of the late summer holiday period, the Ramadan and the subsequent Eid break.
Nevertheless, EFG Hermes Securities Brokerage revenues climbed 22 per cent on the back of stronger executions in Egypt, it added.-TradeArabia News Service