Cairo – Mubasher: EFG Hermes, the Arab world’s leading financial services corporation, reported net profit after tax and minority interest from continuing operations of EGP 48 million for the second quarter of 2016, down 3% y-o-y.
The company's revenues increased 10% y-o-y to EGP 288 million in Q2 2016,on the back of higher fees and commissions, which rose 14% y-o-y to EGP 271 million.
Early 2016,EFG Hermes completed the sale of its majority stake in Crédit Libanais , unlocking in the process considerable value for its shareholders.
"The completion of the sale of 44.3% of Crédit Libanais significantly simplifies our operations to our core activities," said Group Chief Executive Officer Karim Awad.
“Our revenue mix in the second quarter includes important contributions from both EFG Hermes Leasing and Tanmeyah. We see this trend accelerating in the coming period as we continue building our non-bank financial services into Egypt’s premier offering in the category, providing our diverse client base an expanded range of services,” added Awad.
Second quarter results include the seasonal effect of Ramadan and the beginning of summer, traditionally slow periods for capital markets in the Middle East and North Africa.
“Revenue growth was driven by our strategy of allocating capital to the building of our non-bank finance services in Egypt as we focused in tandem on growing our traditional capital markets business across the region,” Awad noted.
EFG Hermes continued to maintain a flexible cost structure in 2Q2016, keeping employee expenses as a percentage of revenue below the 50% mark, as has been the Group’s target since 2014.
Notably, the firm’s cash net operating profits rose 11% year-on-year when non-cash charges related to the depreciation of leased assets at the Leasing business are excluded.
