Explainer: Egypt's central bank unchanged interest rates decision and why    Egypt hopes to reach IMF deal within one month or two: minister    Egypt is exploring affordable loans from China, Japan – minister    Apple's iPhone 14 is the easiest to fix since 2016    Apple to hike App Store prices in Egypt and other countries in Asia, Europe    Dior new pre-fall men collection to take place for the first time in Egypt    Putin: Turkey to pay 25% of Russian gas in rubles    Kazakhstan's President awards Egypt's Azhar imam Astana International Prize    UK economy turmoil follows Queen Elizabeth's death    Three possible scenarios as Egypt's central bank governor resigns – MP    Adele is living a love story, wants to be a homemaker    In Photos: Egypt swears in 13 new ministers after major Cabinet reshuffle    Egypt's Sisi names 13 ministers in Cabinet reshuffle    Spain: prosecutor seeks 8 years sentence for Shakira over tax evasion    Egypt: Alamein Art Festival kicks off a collection of recycled installations    John Legend enjoys family trip in Egypt    Egypt's athlete Basma Emad wins bronze in weightlifting in Mediterranean Games    Noura Al-Mutair – first Gulf female boxer in World Championships    Maha karara joins AAIB as Head of Corporate Communications, Sustainability    Egypt works on charting cooperation strategies with international institutions for 5 years: Al-Mashat    Over 2.4 million newborns examined for hearing impairment: Health Ministry    Netflix releases trailer of Arab adaption of 'Perfect Strangers' film    Balqees to headline concert celebrating launch of streaming giant LIVENow in MENA    Sawsan Badr to be honoured at Aswan Women Film Festival    MP Abdel Hady Al-Qasby calls government to facilitate and support NGOs    Al-Sisi follows up on 'Great Transfiguration Project' in St. Catherine    Cairo, London stress need to strengthen cooperation to face climate change    Foreigners account for 22.6% of Egypt's T-bills issuances in 1H 2021: CBE    Egypt's ambassador to Italy passes away    Egypt confirms readiness to help African countries face terrorism and extremism    An estimated 235 million people needed humanitarian assistance and protection in 2021, an increase of 40% compared to 2020: IOM Egypt    Egypt, DRC discuss water cooperation during WYF    Egypt, DR Congo discuss boosting bilateral cooperation during WYF    Cameroonian police probe assault on three Algerian journalists covering AFCON    Pharaohs start AFCON 2021 campaign with fierce clash against Nigeria    Foreign Ministry opens capacity building course for French-speaking African diplomats    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

EFG Hermes reports EGP 4.8bn revenues, 36% y-o-y net profit increase to EGP 1.4bn in 2019
Revenue growth of 20% y-o-y was supported by strong results at both the Group's Investment Bank and NBFI platforms
Published in Daily News Egypt on 19 - 03 - 2020

EFG Hermes, the leading financial services corporation in Frontier Emerging Markets (FEM), reported Wednesday a net profit after tax and minority interest of EGP 1.4bn in 2019, up 36% year-on-year (y-o-y), on the back of a 20% y-o-y expansion in revenues to EGP 4.8bn.
According to a press statement, revenue growth was supported by both the Group's Investment Banking platform, which reported a 12% y-o-y rise in revenues to EGP 3.6bn, and non-bank financial services (NBFI) platform, which saw its revenues reach EGP 1.2bn, hiking by 52% compared to the same figure for 2018. Growth at the NBFIs platform was primarily driven by the Group's microfinance solutions provider, Tanmeyah, which saw its top line reach the EGP 1bn in 2019, up 66% y-o-y.
"Today, our NBFI footprint encompasses leasing, microfinance, fintech-enabled consumer finance, mortgage finance, factoring and will soon include insurance, giving us greater flexibility to overcome challenges posed by global and regional market conditions and support profitability," said EFG Hermes Holding Group CEO Karim Awad.
Accounting for 71% of the group's revenues in 2019, fee and commission income grew 23% y-o-y to EGP 3.4bn, while sell-side businesses reported a 9% y-o-y rise in revenues to EGP 1.5bn.
The expansion came on the back of a 16% y-o-y rise in revenues by the brokerage division which reached EGP 1.2 billion driven by higher revenues generated by the Group's Saudi Arabian, Kuwaiti, Emirati, and Frontier operations and the Group's structured products. EFG Hermes' Investment Banking division saw a 10% y-o-y decline in revenues to EGP 328m, despite a higher and more diversified deal count for the year.
"Our brokerage division continued to hold on to its number one spot in terms of market share in Egypt, Abu Dhabi, Dubai, Nasdaq Dubai, and Kuwait, while further expanding its presence in Nigeria, Kenya, and Pakistan. In parallel, our investment banking team successfully advised on multiple IPOs both in the Middle East and North Africa (MENA) region and across the wider FEM space, with the division selected as a joint book runner in Saudi Aramco's historic IPO. In the final quarter of the year, our DCM-dedicated team successfully completed both Egypt's first short term securitisation transaction and its first short-term bond transaction," added Awad.
Buy-side recorded revenues of EGP 624m in 2019, up 15% y-o-y. The solid year-on-year growth was supported by the sale of Vortex Energy's wind assets in 1Q19, which saw the Group's Private Equity division report revenues of EGP 341m, up 133% versus last year's figure. Asset Management revenues decreased 29% y-o-y to EGP 283m.
Capital markets and treasury operations, which represented 29% of the Group's revenues in 2019, saw revenues rise 14% y-o-y to EGP 1.4bn in 2019, largely on the back of higher interest income and realised capital gains.
Group operating expenses rose 17% y-o-y to EGP 3bn in 2019, with the rise attributable to higher salaries following a rise in Tanmeyah's headcount versus last year, an increase in the variable portion of employee expenses in line with revenue growth, and higher operating expenses across both the entire NBFIs platform and Tanmeyah in particular.

Clic here to read the story from its source.