EFG Hermes posts 18% y-o-y net profit growth in 3Q2020
EARNINGS WATCH- EFG Hermes profits grow 18% y-o-y in 3Q2020: EFG Hermes’ net profits increased to EGP 422 mn in 3Q2020, up from EGP 358 in the third quarter of last year, according to the company’s earnings release (pdf). Revenues grew 21% y-o-y to EGP 1.4 bn in 3Q2020. Performance was driven by an improvement in revenues generated from the buy-side, non-banking financial services (NBFIs), and capital markets. “The [investment banking] department’s solid performance in 3Q, underlined by the successful completion of several transactions amidst turbulent market conditions in light of the pandemic, showcases the team’s resilience,” the company said. EFG Hermes’ net profit, however, fell 19% in 9M2020, down to EGP 840 mn from EGP 1.03 bn in the same period last year, as a result of a deferred tax expense, as opposed to a tax gain in the comparative period. Revenues in 9M2020 edged up 6% y-o-y to EGP 3.7 bn.
Looking ahead: “As regional and global challenges increasingly mount, EFG Hermes continues to be on the lookout for ways in which it can enhance its business model to further withstand future shocks and to improve value creation potential for all our stakeholders in the medium to long term,” CEO Karim Awad said (pdf).