http://www.rns-pdf.londonstockexchange.com/rns/6275P_1-2024-5-23.pdf
http://www.rns-pdf.londonstockexchange.com/rns/6275P_2-2024-5-23.pdf
http://www.rns-pdf.londonstockexchange.com/rns/6275P_3-2024-5-23.pdf
EFG HOLDING REPORTS FIRST
QUARTER 2024 RESULTS
with Group net profit after
tax and minority interest of EGP1.8 billion; ON OPERATING REVENUE
OF EGP8.6 BILLION
Cairo, May 23rd, 2024 EFG Holding reports a strong set of results for the first
quarter 2024, with a Group net profit after tax and minority
interest of EGP1.8 billion, on operating revenues of EGP8.6
billion. The Group's total assets stood at EGP170 billion at the
end of March 2024.
Key
Highlights
· EFG
Holding had a good start for the year, reporting a strong set of
results, with Group revenues rising 92% Y-o-Y to EGP8.6 billion, on
strong fx-gains, unrealized gains on investments/seed capital;
together with stronger revenues recognized by different lines of
business across all platforms;
· Excluding Holding & Treasury Activities revenues in both
periods, the Group's revenue would be up 70% Y-o-Y, primarily on
higher revenues generated by Brokerage, Asset Management, Valu,
Leasing, Tanmeyah and aiBANK;
· EFG
Holding Group operating expenses (including provisions & ECL)
rose 67% Y-o-Y to EGP5.0 billion on higher operating expenses that
include employee expenses, other operating expenses and provisions
& ECL. However, employee expenses/operating revenues came at
41% in 1Q24 versus 44% in 1Q23;
· EFG
Holding net profit before tax climbed 137% Y-o-Y to EGP3.3 billion.
Taxes for the Group rose 151% Y-o-Y, on higher tax charges related
to profitability generated by Egyptian entities, this in addition
to higher deferred taxes on unrealized gains and fx-gains. Despite
higher taxes and deferred taxes, EFG Holding net profit after tax
and minority interest rose 110% Y-o-Y to EGP1.8 billion.
· All
different verticals of EFG Hermes reported a growth in revenues,
with Holding & Treasury Activities being the largest
contributor benefiting from the Egyptian pound losing more than
c.50% of its value. Additionally, the sell-side and the buy-side
posted Y-o-Y increase in the revenues, thus lifting EFG Hermes
revenues up 104% Y-o-Y to EGP6.2 billion;
· The
Investment Bank operating expenses rose 85% Y-o-Y to EGP3.6
billion, mainly due to higher employee expenses, followed by higher
other operating expenses. Meanwhile, provisions & ECL declined
in 1Q24;
· EFG
Hermes net operating profit rose 139% Y-o-Y to EGP2.6 billion.
Pressured by higher contingent liability provisions, and taxes
& deferred taxes which rose 162% Y-o-Y, EFG Hermes net profit
after tax and minority interest rose 94% Y-o-Y to EGP1.4
billion.
· A
buoyant quarter for EFG Finance, with its revenues rising 58% Y-o-Y
to EGP1.1 billion, underpinned by revenues growth reported by all
its lines of business, particularly Valu and Leasing;
· Operating expenses increased 40% Y-o-Y to EGP807 million; on
higher employee expenses, other operating expenses, and provisions
and ECL. The increase in operating expenses is mainly related to
the growth in sales, operations, and inflationary
environment;
· EFG
Finance net operating profit rose 152% Y-o-Y as the increase in
revenues surpassed the increase in expenses. Despite a 100% Y-o-Y
increase in taxes, the platform profitability increased; net
profits after tax and minority jumped 280% Y-o-Y to EGP142 million,
on Leasing and Valu higher profitability.
· The
Commercial Bank continued its upward trajectory, with aiBANK's
revenues soaring 75% Y-o-Y to EGP1.3 billion, driven mainly by
higher net interest income on the back of loan book growth and
supported by an increase in corridor rates. This in addition to
higher revaluation gains and revenues from fx-trading;
· aiBANK
operating expenses including provisions & ECL rose 22% Y-o-Y to
EGP523 million, on higher salaries on the back of
promotions, new hires and inflation; together with higher
other G&A expenses, which came lower than inflation, and higher
provisions & ECL to mirror weaker
macro-economic indicators and loan portfolio
growth;
· The
Bank's net profit after tax shot up 173% Y-o-Y to EGP475 million
(of which the Group's share is EGP244 million), as revenues growth
outpaced the increase in expenses.
For full report, financial
statements and BODs Resolution, please click on the links on top of
the page.
For further information:
Investor Relations
Contacts
Email: investor-relations@efg-hermes.com
Group Head of Corporate Strategy
& Investor Relations
Hanzada Nessim
Email: hnessim@efg-hermes.com
Tel: +20 (0)2 35356502
www.efghldg.com