EFG Hermes Q1 net profit up 27pc
Cairo, May 22, 2013
EFG Hermes, a leading investment bank in the Arab world, said its net profit for the first quarter surged 27 per cent to EGP98 million ($13.9 million) when compared to the same period last year.
The group revenues rose 14 per cent to EGP194 million mainly driven by 17 per cent growth in the investment bank revenues, stated the top Egyptian bank in its results released on Wednesday.
This reflects the rising contributions from all four fee-earning lines of business. The commercial bank’s contribution to Group revenue increased 12 per cent to EGP 300 million in the quarter, it added.
EFG Hermes said its total consolidated operating revenues soared to EGP 494 million. Impressed with the results, the bank is planing to distribute one bonus share for every five shares held by its shareholders.
The revenues for the quarter split as 61 per cent contributed by the Commercial Bank and 39 per cent by the Investment Bank.
Copmmenting on the results, co-CEO Karim Awad said, “Going forward, we have a clear strategy that will allow us to capture opportunities and create shareholder value with the full backing of our board of directors.”
“Revenue generation remains a top focus for all divisions with an increasing focus on regional growth opportunities while continuing to preserve our market share in our home market of Egypt,” he added.
At the same time, the firm will continue a comprehensive cost-cutting plan, the first phase of which was implemented in the first quarter, said Awad.
EFG Hermes had incurred c. EGP 26.7 million in one-off expenses during the quarter, a significant portion of which related to the cost restructuring plan, he pointed out.-TradeArabia News Service