EARNINGS WATCH- EFG Hermes’ net income more than tripled to EGP 292 mn in 1Q2021, up from EGP 90 mn in the same period last year, the financial services giant said in its earnings release (pdf) this morning. Revenues jumped 30% to EGP 1.3 bn from EGP 965 mn in 1Q2020, driven by “robust results” at its non-banking financial services (NBFIs) platform and investment bank business, Group CEO Karim Awad said (pdf).

NBFI + investment bank revenues rebound y-o-y: Revenues in EFG’s non-bank finance segment rose 22% y-o-y to EGP 441 mn, accounting for 35% of the group’s top line. Its microfinance firm Tanmeyah posted sales of EGP 490 mn — the highest since its inception in 2009, while revenues at ValU tripled to EGP 56 mn. Revenues at the investment bank increased 30% y-o-y to EGP 814 mn. Revenues at EFG’s private equity arm fell 34% y-o-y to EGP 29 mn, which the bank attributed to the incentive fees related to the Vezeeta exit in 1Q2020.

The way ahead: “The variables impacting our outlook for 2021 remain plentiful and difficult to predict. Nonetheless, the group will continue leveraging its comprehensive capacities across its operations and capitalizing on what we hope will be an improving external environment as consumers and businesses adjust to the covid-19 situation, to deliver solid results and sustainable value for the remainder of the year,” Awad said.

Integrated Diagnostics Holding (IDH) saw net income rise 21% to EGP 609 mn in 2020 from EGP 505 mn the previous year, according to a company earnings release (pdf). Bottom line growth was supported by a 19% rise in revenues, which hit EGP 2.65 bn from EGP 2.22 bn in 2019. This came on the back of the covid-19 pandemic, which provided the company with new sources of revenue. IDH set up PCR testing facilities in Egypt and Jordan, and ramped up its house call services.

IDH ups dividend: The company has recommended it pay out shareholder dividends of some USD 0.049 per share, amounting to a total payout of USD 29.1 mn for 2020, up 4% from 2019 despite the impact of covid-19.

Going forward: The company is expecting double-digit revenue growth and a 40% EBITDA margin through 2021 on the back of a continued economic and health recovery in its key markets.

THE CLOSING BELL-

The EGX30 rose 0.2% at today’s close on turnover of EGP 1.82 bn (31.5% above the 90-day average). Regional investors were net buyers. The index is down -0.4% YTD.

In the green: Qalaa Holdings (+3.4%), MM Group (+3.1%) and Edita (+3.1%).

In the red: Orascom Development Egypt (-2.7%), GB Auto (-2.2%) and Heliopolis Housing (-1.6%).