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Wednesday, 17 March 2021

Earnings Watch: EFG Hermes

The EGX30 fell 1.1% at today’s close on turnover of EGP 997 mn (32.6% below the 90-day average). Local investors were net sellers. The index is up 2.1% YTD.

In the green: Orascom Investment (+2.7%), Palm Hills Development (+1.9%) and Sidi Kerir (+1.6%).

In the red: CI Capital (-9.6%), Cleopatra (-3.0%) and Fawry (-3.0%).

EARNING WATCH- EFG Hermes reported a net profit after tax and minority interest of EGP 1.3 bn in FY2020, down 5% y-o-y from just under EGP 1.4 bn in 2019, the investment bank said in its earnings release (pdf). The slight dip reflected a deferred tax expense, as opposed to a tax gain in the comparative period.

Revenues for the year were up 12% y-o-y to EGP 5.45 bn from EGP 4.85 bn in 2019, with the topline surpassing a EGP 5 bn milestone as the group posted a strong performance from the buy-side, non-banking financial services (NBFIs), and capital markets. Revenue figures show “resilient top-line growth … amid [a] very challenging operating environment with the outbreak of the coronavirus and its subsequent impact on economies,” EFG said. It’s the third year running that the firm has grown its top line.

Looking ahead: “We’re optimistic about the group’s outlook, having already witnessed the positive impacts of recovering capital markets on our operations in the new year, which help us deliver on our commitment to maximizing value for all our stakeholders, be that in terms of returns, employee engagement, or community development,” Group CEO Karim Awad said (pdf).

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.