EFG Hermes posts net profit of EGP 422 million in Q3 2020

EFG Hermes has reported a group net profit of EGP 422 million for Q3 2020, up by 17.9% YoY.

EFG Hermes kicks off Second Virtual Investor Conference

EFG Hermes, a leading financial service corporation in Frontier Emerging Markets (FEM), has reported a group net profit of EGP 422 million for Q3 2020, up by 17.9% YoY.

This is according to its latest financials

Other key highlights in its latest financials for Q3 2020 include:

  • Revenue rose to EGP 1.4 billion, indicating an increase of +21% Y-o-Y. The growth is due to a massive boost in earnings recorded from the buy-side, capital markets and the NBFIs.
  • Net profit after tax and minority interest increased to EGP 422 million, up by +18% Y-o-Y.
  • Operating expenses increased to EGP878 million, up by +19% Y-o-Y. This is largely due to a hike in employee expenses and other operating expenses.
  • Net operating profit rose to EGP556 million, up by +23% Y-o-Y.
  • Brokerage increased to EGP243 million, up by +4% Y-o-Y.
  • Fees and commission revenue also increased to EGP1.06 billion, indicating a gain of +22% Y-o-Y.
  • In Q3 2020, the Nigerian Stock Exchange Index gained 9.6% Q-o-Q triggered by bullish local investors’ sentiment and heavy trade in the blue chips.
  • Meanwhile, volumes declined 15% q-o-q. Foreign investors continued to be stuck in long repatriation queues with no clarity on exit timeline. Foreign participation accounted for 34% of the total market activity in Q3 2020, of which EFG Hermes executed 28% of this flow.
  • EFG Hermes Nigeria held second place ranking in Q3 2020, with a market share of 21.2%. This takes the firm’s 9M 2020 market share to 23.5%, representing a second- place ranking

What they are saying

Commenting on the recent figures, CEO of EFG Hermes Holding Group, Karim Awad, said, “As we continue to navigate the impacts of the COVID-19 pandemic across our operations, I’m proud to report that we have continued to lead markets across our footprint and demonstrated the strength of our operations for the quarter.

“On the Private Equity front, realized incentive fees of EGP 349 million from the strategic exit from our managing stake in Vortex Solar significantly contributed to the Group’s performance for the period. Our NBFI platform also continues to bring in stellar results in a quarter that saw valU awarded a license from the FRA, thus bringing the entirety of the Group’s operations under regulatory oversight.

“valU recorded its highest ever bookings since launch, while the firm’s leasing business closed the quarter with 54% more bookings YoY. Our Brokerage business commanded leading market shares across our areas of operation and our Investment Banking division successfully concluded six equity, M&A, and debt transactions worth an aggregate USD 193 million, displaying our growing ability to execute across a wider product spectrum and in extremely challenging conditions.”

Performance for the period was bolstered by strong performance from EFG Hermes’ Private Equity division, as well as the NBFI platform and continued support from the firm’s capital markets and treasury operations.

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