EFG Holding
HRHO
HRHO
Egypt's EFG Hermes Holding posted on Tuesday its consolidated financial results for the third quarter of 2014, showing EGP 247 million operating profit with 46% growth year-over-year, and EGP 100 million net profit before tax and minority rights representing an increase by 57.4% year-over-year.
These figures show the strong results achieved by the company despite seasonal slowdown due to the summer and Ramadan.
The company said profit was boosted by its core investment banking operations, with revenue growth in fees and commissions from its securities brokerage, investment banking, asset management and private equity operations.
Net operating profits from the investment bank were up 487 % year-on-year to EGP 85 million, while fee and commission revenues rose 52 % to EGP 211 million.
Core Investment Bank operations were once again the primary drivers of growth, with Investment Bank net operating profits rising 487% Y-o-Y to EGP 85 million in 3Q14. This filters into a net profit after tax and minority interest of EGP 43 million in the quarter, an impressive turnaround from a net loss of EGP 11 million in the same period of 2013.
Fee and commission revenue, which includes the four core Investment Bank business lines of Securities Brokerage, Investment Banking, Asset Management and Private Equity, rose 52% Y-o-Y to EGP 211 million in 3Q14. Growth of this KPI was mainly driven by higher Brokerage commissions as liquidity improved in most of the Firm's traded markets and stronger Investment Banking revenue which reflects the substantial market share in Egypt and growing market share in the GCC.
At the same time as the Investment Bank saw rising fee and commission revenue, management's ongoing emphasis on cost management led to a 15% Y-o-Y drop in total operating expenses to EGP149 million in 3Q14 on lower employee expenses and other operating expenses.
At the Commercial Banking arm, Credit Libanais reported a net profit of USD15.9 million in 3Q14, a decline of 11% Y-o-Y as the difficult geopolitical environment continued to impact operations, however, on a Q-o-Q basis net profit increased38%.The bank's total assets stood at USD9.0 billion with a loan-to-deposit ratio of 36.3%, according to the company’s statement.
The strong operational performance in the quarter further cements management's optimism about the future as the Group implements a strategy that aims to drive growth and create sustainable value for shareholders in the coming years. Going forward, management will work on continuously delivering strong group profitability as well as strengthening the Group's market share in Egypt and across the GCC, all while diversifying the Firm's product offering to add new innovative services to its current suite and carefully expanding its geographical presence in high growth markets .
These figures show the strong results achieved by the company despite seasonal slowdown due to the summer and Ramadan.
The company said profit was boosted by its core investment banking operations, with revenue growth in fees and commissions from its securities brokerage, investment banking, asset management and private equity operations.
Net operating profits from the investment bank were up 487 % year-on-year to EGP 85 million, while fee and commission revenues rose 52 % to EGP 211 million.
Core Investment Bank operations were once again the primary drivers of growth, with Investment Bank net operating profits rising 487% Y-o-Y to EGP 85 million in 3Q14. This filters into a net profit after tax and minority interest of EGP 43 million in the quarter, an impressive turnaround from a net loss of EGP 11 million in the same period of 2013.
Fee and commission revenue, which includes the four core Investment Bank business lines of Securities Brokerage, Investment Banking, Asset Management and Private Equity, rose 52% Y-o-Y to EGP 211 million in 3Q14. Growth of this KPI was mainly driven by higher Brokerage commissions as liquidity improved in most of the Firm's traded markets and stronger Investment Banking revenue which reflects the substantial market share in Egypt and growing market share in the GCC.
At the same time as the Investment Bank saw rising fee and commission revenue, management's ongoing emphasis on cost management led to a 15% Y-o-Y drop in total operating expenses to EGP149 million in 3Q14 on lower employee expenses and other operating expenses.
At the Commercial Banking arm, Credit Libanais reported a net profit of USD15.9 million in 3Q14, a decline of 11% Y-o-Y as the difficult geopolitical environment continued to impact operations, however, on a Q-o-Q basis net profit increased38%.The bank's total assets stood at USD9.0 billion with a loan-to-deposit ratio of 36.3%, according to the company’s statement.
The strong operational performance in the quarter further cements management's optimism about the future as the Group implements a strategy that aims to drive growth and create sustainable value for shareholders in the coming years. Going forward, management will work on continuously delivering strong group profitability as well as strengthening the Group's market share in Egypt and across the GCC, all while diversifying the Firm's product offering to add new innovative services to its current suite and carefully expanding its geographical presence in high growth markets .
Source:
Mubasher
