EFG Hermes - the leading financial and investment institution in emerging and emerging markets - today announced the financial and operational results for the first quarter of 2021, with revenues reaching EGP 1.3 billion at an annual growth rate of 30%, thanks to the positive performance of most operating sectors during the same period.
In this context, Karim Awad, CEO of EFG Hermes Holding, confirmed that despite the many challenges that the epidemic still poses, EFG Hermes continues to reap the benefits of the diversity of its business model, which it has succeeded in establishing over the years. The unique business model contributed to quickly and easily adapting to these ever-evolving situations, as the group was able to achieve these strong results in all operational sectors during the first quarter of 2021, which contributed to consolidating the leading position that EFG Hermes enjoys as a leading financial and investment institution. In emerging and emerging markets.
The non-bank financing sector contributed significantly to the growth of the group’s revenues during the first quarter of 2021, as the sector’s revenues increased at an annual rate of 22% to reach 441 million pounds, and its contribution to EFG Hermes’s revenues reached 35% during the same period, supported by the growth of the results Its subsidiary activities, where the revenues of the "Tanmia" company increased at an annual rate of 9% to reach 321 million pounds, due to the increase in the company's sales during the same period, while the revenues of the "Valio" consumer finance company doubled at a rate close to three times to record 56 million pounds. Growth of the loan portfolio and the company's customer base.
The revenues of financial leasing and factoring services that are provided through the "EFG Hermes Financial Solutions" company increased by annual rates of 30% and 110% respectively during the same period, equivalent to 56 million pounds and 8 million pounds, respectively, thanks to the increase in fees and income from interest during the first quarter. From 2021.
On the other hand, the revenues of the promotional and underwriting and brokerage sectors in Sell-Side increased at an annual rate of 29% to 296 million pounds during the first quarter of 2021, against the backdrop of the noticeable improvement in the activities of the two sectors as a result of improved financial market performance. The revenues of the promotion and underwriting sector have doubled to reach 42 million pounds, supported by high fees for the deals that were implemented by them, and they reached 8 deals during the first quarter of this year alone. The securities brokerage sector’s revenues also increased at an annual rate of 20% to reach 255 million pounds, on the back of the strong growth in the sector’s revenues from operations in the Egyptian market during the same period.
On the other hand, the revenues of the asset management and direct investment (Buy-Side) sectors increased by an annual rate of 22% to record 129 million pounds during the first quarter of 2021, supported by an increase in the revenues of the asset management sector by 62% to reach 99 million pounds thanks to the increase in management and performance fees. Of Frontier Investment Management (FIM). Meanwhile, direct investment sector revenues declined at an annual rate of 34% to record 29 million pounds, as the same period of the previous year witnessed recording performance fees as a result of the exit from Vezeeta.
The revenues of treasury instruments and money market operations increased at an annual rate of 45% to record 389 million pounds during the first quarter of 2021, against the background of recording unrealized profits from investments and a decline in losses resulting from differences in translation of stocks in foreign currencies compared to the same period of the previous year.
Awad added that Tanmia, which operates under the umbrella of the non-bank financing sector, has succeeded in achieving sales of 490 million pounds, which are the highest sales it has achieved since the start of its business, which is a testament to the strong position the company enjoys in the field of microfinance. He added that the group continued to grow the Valio Company business by expanding its partner base across the country and benefiting from the ever-growing consumer base in Egypt. The Promotion and Underwriting Coverage sector has also succeeded in completing 8 new deals that vary between stock markets and debt arrangement, which contributed to the growth of the revenues of the promotional and underwriting and brokerage sectors (Sell-Side) and thus consolidating the leading position that EFG Hermes enjoys as the best investment bank. In the markets in which we operate.
On the other hand, the group's operating expenses decreased at an annual rate of 3% to reach 802 million pounds during the first quarter of 2021, as the decline in allocations for credit losses for the non-bank financing sector contributed to limiting the impact of the increase in employee expenses during the first quarter of 2021. The rate of employee expenses to total operating income reached 46% during the same period, which is in line with the management's objectives to maintain that ratio at less than 50%.
The total operating profit more than tripled to reach 453 million pounds during the first quarter of 2021, supported by strong growth in revenues and the stability of expenditures at the same levels of the previous year.
Despite the increase in deferred tax expenditures, the net profit reached 292 million pounds during the first quarter of 2021, an annual increase of 223%, compared to 90 million pounds during the same period of the previous year. This strong performance is attributed to the remarkable growth in the profits of the non-banking finance sector and the services of the investment bank, as well as the stability of operating expenses.
Awad concluded that there are still many variables that are difficult to predict and affect our aspirations for the year 2021, but that the Group will continue to maximize the benefit of its comprehensive capabilities in its various operational processes and benefit from the remarkable improvement in the environment surrounding its operations, and consumers' adaptation to the current conditions related to the virus (Covid) - 19). The management will also continue to carefully monitor market developments in order to ensure that the value of all shareholders is continuously maximized, as well as ensuring that the health and safety of employees is maintained as the cornerstone to achieve these exceptional results and continuous successes.
Comments
Post a Comment