EFG Hermes Holding has announced that revenues for the first quarter of 2022 have risen to 55% to EGP 1.9 billion (USD 101 million). The company’s net profits after tax and minority interest grew 18% to EGP 345 million (USD 36 million) driven by better performance across the company’s lines of business.
“EFG Hermes Holding’s diversified operations and holistic product offerings continue to drive our resilient performance and exceptional revenue growth, making us one of the fastest-growing companies in our footprint,” said EFG Hermes Holding’s Group CEO Karim Awad. “Our Non-Bank Financial Institutions (NBFI) platform is responding to consumer and corporate needs during high inflationary times. Net profits for the platform, together with results generated following the majority-stake acquisition of a commercial bank, generated half of our Group’s net profits after tax and minority. On the sell-side of the house, I am equally pleased with our Investment Banking division, which closed five transactions valued at USD 301 million, including the first IPO in the cosmeceutical space in Egypt and two regional M&A transactions. Meanwhile, our Brokerage division continues to hold firmly onto its first place ranking in Cairo, Nairobi, and Dubai,” added Awad.
Sell side revenues rose by 61% to EGP 494 million (USD 26 million) on the back of solid performance by the Investment Banking and Brokerage divisions. Their revenues grew 52% and 62% respectively. Investment Banking revenues were EGP 64 million (USD 3 million) while revenues from the Brokerage division grew to EGP 430 million (USD 23 million).
Revenues generated by capital market and treasury operations rose by 24% to EGP 294 million (USD 15 million) in Q1 2022. This was mainly due to a decline in net interest income that was partially attributed to a lower cash position following the acquisition of a majority stake in Arab Investment Bank (aiBANK). The Group’s operating expenses rose 49% to EGP 1.2 billion (USD 64million) in Q1 2022, driven by the consolidation of aiBANK’s operating expenses, valU’s higher operating costs, and an increase in the Group’s employee costs.
Group net profit before tax rose by 67% to EGP 677 million (USD 36 million) in Q1 2022, while net profit after tax and minority interest was EGP 345 million (USD 18 million) in Q1 2022, up 18% from the same period last year, mainly on higher taxes and minority interest.
“We look forward driving more value for shareholders as the year progresses and we work to hit the milestones we’ve set out for 2022. In the quarters to come, we will continue to focus on garnering more opportunities in the GCC and cementing our foothold there in the Investment Bank space. At the same time, our NBFI platform will continue to grow as our BNPL player valU expands its operations and Tanmeyah continues to deliver solid revenues. On the commercial bank front, we will continue to support the new senior management team to drive change across the bank, create growth opportunities, and capitalize on the synergies inherent in our business model as a universal bank in Egypt. As an impact-driven organization, we will maintain laser-sharp focus on providing boundless financial opportunities that foster growth and create value for our stakeholder base and the communities in which we live and work,” said Awad.
Earlier this month, the Firm was recognized by the Financial Times and Statista as one of Africa’s fastest-growing companies in 2022. It was one of only 10 African financial services companies listed on the year’s ranking and was named 55th fastest-growing company in Africa. In its home market of Egypt, the Firm also named the fourth-fastest growing company and was the only Egyptian financial services institution listed in the ranking.