By Islam Serour EFG Hermes released the Consolidated Financial Report for the second quarter of 2012. The report concludes that the company's net income was EGP 27 million on total consolidated revenues worth EGP 477 million, denoting 66 percent decline, in comparison to the same period 2011. Investment Banking revenues account for 41 percent of the total revenue of the second quarter, while commercial banking contributed by 59 percent. Total consolidated revenues rose by two percent to EGP 477 million, backed by 16 percent increase in Credit Libanais's revenues, which reported a net income of $17.3 million, and the investment banking fees and commissions, which increased by three percent to EGP 178 million. The Investment Banking Division contributed 45 percent to the fee and commissions item, compared to only 10 percent during the first quarter 2012. However, these profits were partially offset by 81 percent contraction in capital market and treasury income that led to a 13 percent decline in the total Investment Banking revenues. Brokerage securities fell by 17 percent to EGP 51 million, indicating poor performance for the quarter. Though, EFG Hermes maintained its position as the principal security broker in the Arab region. In addition, the Asset Management Division witnessed a six percent drop in Assets Under Management (AUM) to $ 3.1 billion. The Head of Research at Prime Brokerage, Mohamed Seddik, told Reuters that “the results seemed to be in line with expectations overall, except for a decline in assets under management of 6 percent from the first quarter of 2012." CEO of EFG Hermes, Hassan Heikal commented, “In a very challenging period, I am delighted to report we have maintained profitability while growing our revenues on both a quarter-on-quarter and year-on-year basis. Continued strong performance from our Commercial Banking arm, a very sharp emphasis on cost control measures in place since last year, and the largest equity rising in Egypt of any form since 2007 all contributed to our performance in the second quarter.”
