Leading financial services group EFG Hermes Holding has posted EGP754.96 million ($48.09 million) in profits in the first six months of 2021.
EFG (Egyptian Financial Group) Hermes Holding is an Egyptian financial services company with an operational footprint in the Middle East, North Africa, Sub-Saharan Africa and South Asia.
The group specializes in securities brokerage, asset management, investment banking, private equity and research in addition to finance lease, microfinance, fintech, mortgage and insurance.
Figures contained in the group’s financial report for the first half of 2021 revealed that profits after tax grew from EGP422.97 million ($26.94 million) in the first half of 2021 to EGP754.96 million ($48.09 million).
This translates to a 78.5-percent growth in profits for the Karim Awa-led company.
Awad has been group CEO since 2013.
The surge in EFG Hermes’ profits in the first half of 2021 can be attributed to its cost strategies and the double-digit growth in its total revenue.
The double-digit growth in revenue came off of robust financial performance by the company’s investment banking arm, which delivered a 43.4-percent growth in fees and commission income.
Comparing the growth in revenues to expenses, the company posted a faster 23.1-percent growth in total revenue, as it grew from EGP2.92 billion ($185.98 million) in the first half of 2020 to EGP3.59 billion ($228.73 million) in the first half of 2021.
Meanwhile, its total expenses recorded a slow growth of 9.2 percent, increasing from EGP2.39 billion ($152.27 million) in the first half of 2020 to EGP2.61 billion ($166.27 million) at the end of the first half of 2021.
This led to the 78.5-percent increase in profits during the period under review.
EFG noted that its financial performance in the first half of 2021 was spurred by a solid second quarter of 2021, as it recorded profits of EGP442.83 million ($28.21 million) during the quarter.
The company’s total assets stood at EGP45.4 billion ($2.90 billion) at the end of June 2021.Despite the growth reported in its latest financial results, shares in the group on the Egyptian Stock Exchange closed at EGP11.55 ($0.7357), 35-basis points lower than its opening price of EGP11.59 ($0.7383) on Aug. 18.