The Egyptian Financial Group (EFG) Hermes, a financial service corporation in the Middle East and North Africa (MENA), announced in a report on Tuesday a 28% annual growth of its continued operation revenues year-on-year (y-o-y), reaching EGP 294m, with net profits of EGP 41m in the third quarter of 2016. Revenues from continued and discontinued operations have increased by 25%, reaching EGP 151m.
The group achieved revenues estimated at EGP 145m from its investment operations and activities, in addition to EGP 70m in revenues from its new leasing business and the microfinance company Tanmeyah.
“The company’s indices reveal its leadership as a non-banking financial institution thanks to the positive impact of leasing and Tanmeyah, as well as our traditional investment bank activities which led to healthy growth levels over the previous year, and helped us maintain our position in the Arab world,” said Karim Awad, CEO of EFG Hermes.
On the other hand, operational expenses of the company have increased by 37% y-o-y, reaching EGP 219m. The main reasons for the increase are EFG’s activities in leasing and Tanmeyah, in addition to the prevailing inflationary environment of Egypt’s economy and the devaluation of the Egyptian pound, according to the report.
Awad noted that the company is expected to launch two new products before the end of 2016. These products are expected to have a significant impact on profits and revenues. “The company will announce its entry into a strategic alliance with a main international player soon,” Awad added.
In the third quarter, the firm closed as the top-ranked broker on five regional exchanges—including Egypt, Dubai, Nasdaq Dubai, Abu Dhabi, and Kuwait—and ranked second in Oman.
Its investment banking division closed three transactions during the quarter, including the minority stake sale of B.Tech, setting up a depository receipts programme as the sole financial adviser for Domty, and the sale of Abraaj Group’s 80% stake in Jordan Aircraft Maintenance Limited (JorAmCo), also as sole financial adviser.
EFG Hermes, specialised in securities brokerage, asset management, investment banking, private equity and research, covers a number of markets in MENA, including Egypt, Saudi Arabia, United Arab Emirates, Kuwait, Oman, and Jordan. It serves clients from the Middle East, North Africa, Europe, and the United States.