Egypt-based financial services group EFG Hermes Holding has declared a 26-percent increase in profit in the first nine months of its 2021 financial year, which ended on Sept. 30. This growth in earnings caused the group’s profit to surge above $65 million.
Figures contained in the group’s latest quarterly filings revealed that its profit after tax for the period under review grew from EGP840 million ($53.44 million) in the first nine months of 2020 to EGP1.054 billion ($67.05million) in the corresponding period 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 under the leadership of Karim Awad, who has been the group CEO since 2013.
The increase in EFG’s profit denotes a significant improvement in the operational performance of the group’s business lines, as its performance in the first three quarters of 2021 underpinned revenues, which rose by eight percent to EGP4 billion ($254.47 million).
With single-digit revenue growth and muted expenses in 9M 2021 supported by effective cost strategies, the group reported a net operating profit and a net profit after tax of EGP1.5 billion ($95.42 million) and EGP1.054 billion ($67.05million), up 30 and 26 percent, respectively.
Among the group’s operating segments, the revenue from its sell-side segment involved the creation, promotion and sale of stocks, bonds and foreign exchange increased by 49 percent to EGP1.2 billion ($76.34 million), supported by strong brokerage and investment banking revenues.
Shares in the group on the Egyptian Stock Exchange closed at EGP12.76 ($0.81186), 116-basis points lower than its opening price of EGP12.91 ($0.82136) on Nov. 17.
At the current price, the group’s stock is trading at 7.5 times its earnings at the end of 2020.
