EFG Hermes reported year on year increase of 27.3% in net profit in Q1 2013

  EFG Hermes, the leading investment bank in the Arab world, today reported its consolidated financial results for the first quarter of 2013, net profit after tax and before minority interest EGP98m of total sales reports Consolidated EGP494m.
Group revenue increased by 14% yoy in 1Q13, driven by 17% growth in revenue from investment banking EGP194m, which paid higher contributions from all sectors profitability.

The contribution of the Commercial Bank of turnover of the Group increased by 12% yoy to EGP300m increased during the quarter.

Revenue for the quarter divided by 61% provided by the Commercial Bank and 39% of the investment bank.

In the Investment Bank, total revenue rose 17% year on year in 1Q13 to EGP194m, indicating a strong improvement fees and commissions of the core businesses, including securities, investment banking, asset management and private equity. Fees and commissions by 26% over the previous year in the first quarter EGP158m.

"In the future we will have a clear strategy that will enable us to seize opportunities and create value for shareholders with the full support of our board have," said Karim Awad, Co-CEO of the investment bank noted that "revenue remains Generation top priority for all business sectors with a growing emphasis on regional growth opportunities while continuing to maintain our market share in our domestic market in Egypt upright. "

At the same time, the company will continue a plan to reduce the total cost of the first phase of what has been in 1Q13. EFG Hermes opened c. EGP26.7m in one-time expenses in the quarter, based on a significant part of restructuring costs.

"We expect the farm to see the recurring expenses during the year, as we rationalize sticking to our plan and continue to implement save money," Awad said, noting that "the company remains true to its goal of reducing the cost base to c. EGP500m in 2014 from an estimated EGP780m this year. Thereby, the continued ability of the Bank to ensure investment in the midst of unpredictable market conditions, "he added.

Finally, the company is seeking regulatory issue one bonus share for every five shares held by shareholders from the date of the claim held to raise capital for EGP2.87bn approval.

EFG Hermes Securities Brokerage closed 1Q13 again number one in Egypt, as well as with leading positions in other key markets in the region. EFG Hermes Brokerage services showed a significant 35% to $ 5.4 billion in the first quarter, which (with the exception of Egypt) improves maintenance of market shares and market volumes in the region increase.

The breakdown of the investment banking business closed and two significant transactions carried out in 1Q13, including a $ 43m private placement Wadi Degla for SAE investment (the first such agreement to promote the field of Egyptian sports) and the acquisition by Japan Tobacco International Al Nakhla Tobacco in Egypt, the second assignment of the consultant team with the global giant Japan Tobacco International. The division continues to focus on building a pipeline of transactions in regional markets with a particular focus on Saudi Arabia and the United Arab Emirates.

EFG Hermes Asset Management AUM decreased 7.7% from the previous quarter to $ 3.1 billion with net outflows accounted for 5.6 percentage points of the decline and the performance of the market, the remaining 2.1 percentage points.

The division continues to focus on long-term customers and the growth of its institutional foundations, and in the last quarter, won five awards based on performance in 2012 Zawya Funds Ranking Awards, including MENA Asset Manager of the Year, three awards number one Egyptian Fund (best balanced funds , equity funds, Best Islamic Fund shares) as well as the award for Best Qatar equity fund that. among other awards in 2012

Private equity AUM was $ 0600000000 at the end of 1Q13. Leaves remain difficult in the short term, given the political instability in the region.

EFG Hermes Research closed 1Q13 with a coverage of 121 companies at the end of FY12, the team simplified reporting in accordance with the cost control measures. Around 57% of total market capitalization in the Arab world, compared with 61% Research continues to cover 11 countries at the macro level and eight nations with scores of regular strategy, in addition to country notes and strategy.

A commercial bank credit card Libanais continued to provide a strong, stable performance despite the turmoil in Lebanon and regionally. Net income after tax amounted to $ 16.2 million 1Q13, an increase compared to the quarter and 64.5% year-on-year decline of 11.5%, representing a return on equity after tax of 12.2%. The increase over the prior quarter primarily due to higher net income occasional high spending in the last quarter of 2012. The decrease compared to the previous year mainly due to higher spending, higher rates of growth in interest expenses and lower margins.