Karim Awad, CEO of EFG Hermes Holding, said that the strong results achieved by the company during 2021 reinforce its leadership position by maximizing the benefit of attractive growth opportunities that pulse in the markets, as well as achieving many achievements in terms of operational performance in various sectors of the company, Despite market volatility.
EFG Hermes Holding, the comprehensive bank in Egypt and the leading investment bank in emerging and frontier markets, announced its financial and operational results during 2021, as it succeeded in increasing revenues to exceed 6 billion pounds for the first time in its history. Revenues amounted to EGP 6.1 billion with an annual growth rate of 12% accompanied by a growth in net profit after taxes and minority interest at an annual rate of 12% to reach EGP 1.5 billion.
He added that the revenue growth reflects the strong performance of many of the company’s operating sectors, in addition to adding the results of the Arab Investment Bank (aiBANK) for the months of November and December to the consolidated financial statements of EFG Hermes Holding, after completing
The deal to acquire a majority stake of 51% of the bank’s shares during the last quarter of 2021. The bank’s revenues of 306 million pounds contributed to enhancing the company’s consolidated revenues during 2021.
Awad pointed out that the non-bank finance sector continued to achieve exceptional results during 2021, as the positive contribution of the “Tanmia” company specialized in microfinance services increased in enhancing the group’s results, as it contributed the largest share.
The “Value” fintech platform for Buy Now, Pay Later (BNPL) doubled the number of transactions over the year, the Promotion, Underwriting and Brokerage segments generated excellent revenue, with the Promotion and Underwriting segment doubling the revenue as well. The company announced the completion of several deals to reach new records, which contributed to the consolidation of the position of EFG Hermes
Holding as a leading financial and investment institution in emerging and frontier markets.
He explained that the revenues of the securities brokerage, promotion and underwriting sectors increased at an annual rate of 44% to reach EGP 1.8 billion during 2021, against the background of the exceptional performance achieved by each sector throughout the year. The promotion and underwriting sector succeeded in completing 40 deals with a total value of $7.9 billion that varied between capital markets, debt arrangement markets, issuance and merger and acquisition deals, which led to doubling the sector’s revenues to record 494 million pounds. Revenues of the securities brokerage sector increased at an annual rate of 29% to reach 1.3 billion pounds, driven by the strong performance in the Egyptian market, in addition to the UAE market, especially Abu Dhabi, as well as positive returns from structured products.
He also pointed out that the world is witnessing today that central banks have stopped pumping more liquidity and inflationary pressures and geopolitical obstacles persist. Awad added that when he looks at what has been achieved, he feels confident in the positive return of the strategy adopted by the company over the past five years, starting with the expansion in emerging and promising markets, by diversifying its activities to include non-bank financing services and ending with entering the field of commercial banking services. As well as enhancing the company’s ability to overcome various challenges and fluctuations in the markets.