EFG (Egyptian Financial Group) Hermes Holding, a Cairo-based financial services group led by Karim Awad, reported a double-digit percentage increase in profit at the end of 2021, as revenue surpassed the EGP6-billion ($330 million) mark to reach EGP6.1 billion ($332 million).
EFG Hermes Holding is a financial services conglomerate with operations in the Middle East, North Africa, Sub-Saharan Africa and South Asia. Under the leadership of Awad, the group CEO since 2013, it has secured leadership positions in securities brokerage, asset management, investment banking, private equity and research.
According to its 2021 earnings report, its consolidated net profit increased by 12 percent from EGP1.31 billion ($71.4 million) at the end of 2020 to EGP1.46 billion ($79.6 million), boosted by a 12-percent increase in revenue from EGP5.4 billion ($294.3 million) to EGP6.1 billion ($332.5 million).
The group’s earnings power and revenue were significantly boosted by a slower increase in operating costs driven by the management’s cost-cutting strategies, as well as the consolidation of Arab Investment Bank (aiBANK) following the acquisition of a 51-percent stake in the bank in Q4 2021.
Despite strong realized-unrealized gains on investments and private equity’s exceptional incentive fees of EGP342 million ($18.65 million) booked in the comparable year, EFG Hermes’ financial performance in 2021 demonstrates the firm’s ability to grow revenues.
In 2021, the leading investment group achieved significant milestones as its investment banking division successfully advised on several landmark offerings in the regional Equity Capital Markets space.
The team successfully concluded the advisory on Fertiglobe’s $795-million IPO on the Abu Dhabi Exchange, marking one of the largest listings on the exchange and the first listing of a free zone company onshore in the UAE.
The division also served as joint book runner and underwriter on Saudi-based ACWA Power’s $1.2-billion IPO on the Tadawul Exchange, marking EFG Hermes’ third IPO on the exchange in 2021.
