Egypt’s EFG Hermes posts EGP 1 bln net profit in FY17

Cairo-based EFG Hermes reported a net profit after tax and minority interest of EGP 1.2 billion for the fiscal year 2017, the group said in a statement on Tuesday.

The strong performance was backed by revenue of EGP 3.6 billion, which more than doubled year-on-year (YoY), on adjusting for foreign exchange (FX) gains of EGP 2.7 billion in 2016.

Revenue contributed by the investment banking operations climbed 69 percent YoY, accounting for nearly 47 percent of total revenue during 2017.

Net operating profit stood at EGP 1.5 billion and net operating margin reached 42 percent in 2017, driven by robust growth at both the investment bank and non-bank financial institution, and the financial services provider’s strategy to diversify its product base.

Operating expenses, however, rose 12 percent YoY, the statement added.

Excluding FX gains in 2016, fee and commission income more than doubled Y-o-Y in fiscal year 2017, reflecting strong core business across the group’s traditional investment bank platform, its non-bank financial institution (NBFI), as well as contributions from new products and services introduced in 2017. 

“2017 saw us execute on our expansion strategy, by adding Pakistan, Kenya, the United Kingdom and the United States to our geographic footprint in addition to diversifying our product base by launching a merchant banking division and a structured products desk – with the latter’s executions reaching $961 million since inception,” said EFG Hermes Holding Group’s chief executive, Karim Awad.