EFG Hermes’s Q1 2023 profit jumps 157% to $28.6 million

The bank said its net profit after tax and minority reached $28.6 million (EGP 885 million) in Q1 2023

EFG Hermes Holding said its first-quarter net profit surged by 157% year-on-year (YoY) despite growing inflationary pressures in Egypt and the impact of the devaluation of the Egyptian pound.

The bank said its net profit after tax and minority reached $28.6 million (EGP 885 million) in Q1 2023, operating profit jumped 99% YoY to EGP 1.5 billion and net profit before tax soared by 108% to EGP 1.4 billion.

“Despite the challenging global macroeconomic environment, we generated strong results. Our core operational platforms supported our performance for the period, especially on the sell-side of the house,” said Karim Awad, EFG Hermes Holding’s Group CEO.

“Our investment banking division executed a strong pipeline of deals, concluding two equity and seven debt transactions worth an aggregate of $2.9 billion.”

The deals include the initial public offering of Abraaj Energy Services on the Muscat Stock Exchange and ADNOC Gas on the Abu Dhabi Securities Exchange, the largest listings on the respective stock market year to date.

The banking group reported a 129% YoY increase in revenue to EGP 4.5 billion in the first three months of the year, driven by growth in treasury operations as well as solid results generated from the investment bank and aiBANK during the period.

The investment bank delivered over a three-fold increase in revenue to EGP 3 billion in Q1 2023 from EGP 901 million in the same period in 2022. The performance from core operations delivered solid results in the quarter, particularly from the sell-side, which saw its revenues expanding by 69% to EGP 837 million.

This growth was driven by a stellar 238% YoY surge in Investment Banking revenue to EGP 216 million and a 44% Y-o-Y increase in Brokerage revenues to EGP 621 million.

Meanwhile, aiBANK’s revenues rose 65% YoY during the quarter to EGP 727 million, driven by an increase in net interest income. The unit’s net profit after tax soared 25% to EGP 171 million during the period under review.