EFG Hermes Holding, the financial institution with a universal bank in Egypt and the leading investment bank franchise in Frontier and Emerging Markets (FEM), announced today its results for the full-year ended 2022. The Group’s revenues grew by 77% Y-o-Y to EGP 11bn in FY22 on the back of robust results generated from its core operational platforms, including the investment bank, non-bank financial institutions (NBFI) platform, and the consolidation of aiBANK revenues in FY22.
In terms of profitability, the Group net operating profit increased 63% Y-o-Y to EGP 3.7bn, despite an 85% Y-o-Y increase in the Group’s operating expenses to EGP 7.3bn due to rising inflationary pressures, USD denominated expenses in regional offices, and growth of business operations. Meanwhile, the Group net profit before tax grew by 63% to EGP 3.3bn, while net profit after tax and minority interest recorded an increase of 18% Y-o-Y to EGP 1.8bn in FY22, subdued by taxes and deferred taxes.
EFG Hermes Holding’s Group CEO Karim Awad commented on the results: “In spite of the high inflationary pressures, challenging interest rate environment, and soaring commodity prices witnessed in 2022 that dampened global capital market activity, we managed to deliver another set of stellar results across each of our three verticals and have further cemented our position as the region’s largest and most innovative impact-driven financial services institution. The investment bank leveraged a favorable investment landscape in the GCC to strengthen its presence and advise on some of the most high-profile transactions in the region, bringing total ECM, DCM, and M&A deals across our markets to an outstanding 32 for the year valued at USD 14.3bn. Our NBFI platform performed equally well, buoyed largely by a two-fold increase in valU’s topline, as we continued to elevate the financial services ecosystem by providing a holistic suite of convenient and seamless financial solutions. On the commercial banking side of the house, the consolidation of aiBANK propped up the Group’s performance even further, as the bank continues to consistently grow revenues and as we capitalize on the synergies inherent in our business model.”
The Investment Bank booked solid results and supported the Group’s performance in FY22, recording a revenue increase of 58% Y-o-Y to EGP 6.2bn. The Investment Bank’s performance was driven by a 38% Y-o-Y increase in Sell-Side revenues to EGP 2.5bn and a 14% Y-o-Y increase in Buy-Side revenues to EGP 723m in FY22. Additionally, the Investment Bank’s performance was further supported by a 105% Y-o-Y increase in revenue from Holding and Treasury activities during the period. Moreover, the Investment Bank’s net profit after tax and minority interest inched down by 4% Y-o-Y to EGP 1.1bn, primarily due to higher deferred tax booked at the holding level in FY22.
Awad concluded: “EFG Hermes Holding’s results for the year are a testament to our unrivaled ability to continue rising above unprecedented challenges, and showcases the strength and agility of our diverse business model and extensive brand universe. We continue to reap the fruits of our acquisition of aiBANK — a transaction that fueled our growth into a universal bank in Egypt whilst being a provider of a full scope of end-to-end financial services. In efforts to further grow our NBFI platform into a holistic platform of disruptive financial solutions, we continue to charge the market with innovative financial products and services that not only help businesses grow and scale their operations, but also empower people of all walks of life to elevate their lives.”