EFG Hermes accomplish profits of LE 767.16B in 9 months

CAIRO - 15 November 2018: Egyptian Financial Group Hermes Holding (EFG Hermes) recorded consolidated profits of LE 767.16 million during the first nine months of 2018, compared to LE 1 billion during the same months of 2017.

Hermes financial indicators showed that the company reached standalone profits of LE 190.89 million, compared to LE 178.12 million, with an increase of 7.2 percent.

Hermes accomplished net profits of LE 279 million during the third quarter of 2018 with revenues of LE 1.03 billion, compared to LE 237 million during the same quarter of 2017 with revenues of LE 834 million.

“EFG Hermes is approaching the end of 2018 with strong momentum. The firm has delivered excellent top-line gains and these have translated into a flourishing bottom-line,” EFG Hermes Group CEO Karim Awad said.

“Our investment banking team has managed to close a record number of deals across multiple geographies in the quarter, despite the challenging markets. EFG Hermes has now maintained its top position in MENA equity capital markets as ranked by transaction fees for the seventh consecutive quarter, an unprecedented success,” Awad added.

“Management’s efforts to diversify the group’s offerings are yielding ever-increasing benefits. The premiere Non-Bank Financial Institutions (NBFIs) platform is delivering rapidly growing returns and is contributing a larger share to the group’s profitability,” Awad added.

“Although the market is yet to realize its true value and long-term growth prospects, we are committed to seeing our diversification strategy through to its logical conclusion by exploring new avenues for growing our NBFIs’ platform. The group’s factoring operations have had a highly encouraging start and we expect to report positive results on that front soon,” he noted.

Hermes clarified in a press release that NBFI platform maintained its remarkable rate of expansion, growing at 81 percent Y-o-Y to post revenues of LE 286 million in Q3 18, with Tanmeyah Micro Enterprise Services (Tanmeyah) being the main contributor to the increase. Revenues from NBFIs contributed approximately 28 percent to the group’s top-line in Q3 18, up from 19 percent during the same quarter last year.

During the first quarter of 2018, the company’s consolidated profit marked an increase of 6 percent on a year on year basis, during the first quarter of 2018, recording LE 249 million ($14.04 million) after tax and minority interest.

Egyptian Financial Group Hermes Holding (EFG Hermes) is a public company, listed on the Egyptian Exchange (EGX) since February 1999.

It operates within the diversified financial sector focusing on investment banking and brokerage. It has 36 subsidiaries operating across the Caribbean, Northern Africa and Middle East. EFG Hermes is based in 6th of October, Egypt, and was established in January 1984.