CAIRO: Cairo-based investment bank EFG-Hermes reported a 37.5 percent increase in total consolidated revenues to LE 2.1 billion in the first nine months of 2008, up from LE 1.5 billion in the same period last year. "As global economic challenges spilled over into regional markets, the firm's third quarter consolidated revenues grew a more modest 6.2 percent to LE 576.5 million.a 33.8 percent dip compared with the second quarter, the company said in a statement. Net profit after tax and minority interest stood at LE 913.8 million, a 2.8 percent rise from LE 889.2 million in 2007, according to results released by the company Thursday. The firm's profit margin for the reporting period reached 59.8 percent. "There is no question these are challenging times for regional markets, said EFG-Hermes CEOYasser El-Mallawany. "That said, the Middle East's macroeconomic fundamentals are as very sound. "Look no further than the International Monetary Fund's latest projections for 2009, which forecast 5.9 percent growth in the region against just 2.2 percent growth globally. Revenues from the company's core activities grew 9.6 percent to LE 422 million over the same period last year, said the firm, with brokerage constituting 46.8 percent of total operating revenues, asset management 29.7 percent, investment banking 15.5 percent and private equity 5.4 percent. "While we see the regional market downturn and low valuations rolling into the fourth quarter, we remain firmly optimistic about the long-term outlook for the Middle East and North Africa, said EFG-Hermes CEO Hassan Heikal. "We are going into this cycle with a very strong and healthy balance sheet that differentiates us from the rest of the market, he added. The bank was quick to note in its statement that these are the first results to come out "since the Middle East began feeling the effect of the credit and liquidity crunch in Western markets.
