EFG Hermes Holding announced a robust performance in Q1 2022, with revenues for the first quarter of the year rising by 55 percent year on year to 1.9 billion pounds ($102,163,169), according to EFG’s statement on Wednesday.
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The group net profits increased 18 percent after tax and minority interest year on year to 345 million pounds driven by strong performance toward the group’s lines of business.
“EFG Hermes Holding’s diversified operations and holistic product offerings continue to drive our resilient performance and exceptional revenue growth, making us one of the fastest growing companies in our footprint,” said EFG Hermes Holding’s Group CEO Karim Awad.
EFG Hermes Holding’s Group CEO Karim Awad
EFG’s non- bank financial institutions (NBFI) platform responds to the consumer and corporate needs during high inflationary times, Awad said.
Net profits for the platform result a generated following the majority-stake acquisition of a commercial bank, generated half of our group’s net profits after tax and minority, he added.
EFG closed five transactions valued $301 million in the investment baking division, including the first Initial Public Offering (IPO) in the cosmeceutical field in Egypt and two regional merger and acquisitions transactions, Awad mentioned. Meanwhile, the brokerage division continues to hold firmly onto its first-place ranking in Cairo, Nairobi and Dubai, he added.
Sell-side revenues gained a record 61 percent year on year to 494 million pounds on the back of solid performance by the investment banking and brokerage divisions, which grew revenues 52 percent year on year and 62 percent year on year respectively. Investment banking revenues reached 67 million pounds driven by strong deal execution capabilities in the MENA region, while revenues from the brokerage division grew to 430 million pounds on the back of stronger revenues generated by all MENA markets together with higher revenues from the structured products desk.
The group’s buy-side revenues came in flat year on year to record 113 million pounds in Q1 2022. Asset management revenues rose 7 percent year on year to 90 million pounds due to higher management fees driven by increased AUMs. Meanwhile, private equity revenues stood at 23 million pounds compared to 29 million pounds in the same period last year due to a high base in Q1 2021 that included additional management fees following the third close of the EFG Hermes Education Fund that if excluded, would have boosted the division’s revenues by 28 percent year on year.
The NBFI platform recorded a 34 percent year on year increase in revenues to 601 million pounds. The platform’s growth in the first quarter was driven by the group’s microfinance player Tanmeyah, buy-now, pay-later (BNPL) fintech platform valU, and EFG Hermes Corp-Solutions’ factoring arm.
Tanmeyah booked revenues of 395 million pounds, up 21 percent year on year driven by stronger sales. valU posted stellar results for the quarter, with revenues surging 157 percent year on year to 143 million pounds. In parallel, EFG Hermes Corp-Solutions’ factoring business more than doubled its top line, with revenues hitting 18 million pounds — a 118 percent growth compared to the same period last year. Meanwhile, revenues from EFG Hermes Corp-Solutions’ leasing business revenues declined 21 percent year on year to 45 million pounds.
Revenues generated by capital market and treasury operations contracted 24 percent year on year to 294 million pounds in Q1 2022, mainly due to a decline in net interest income that was partially attributed to a lower cash position following the acquisition of a majority stake in aiBANK.
