Cairo, 24 March 2022
EFG Hermes Holding, a universal bank in Egypt and the leading investment bank franchise in Frontier Emerging Markets (FEM), reported a strong set of FY21 results today, with the Group\u2019s top line surpassing the EGP 6 billion mark for the first time to hit EGP 6.1 billion \u2014 a 12% hike Y-o-Y. Meanwhile, net profit after tax and minority interest recorded EGP 1.5 billion, another 12% Y-o-Y gain.
The robust financial performance was supported by several lines of business across the Group, coupled with the consolidation of aiBANK (November and December figures) following the completion of a 51% acquisition of the bank\u2019s shares in 4Q21. aiBANK revenue helped buoy performance, contributing EGP 306 million to the Group\u2019s top line in FY21.
EFG Hermes Holding\u2019s Group CEO Karim Awad said: \u201cI am extremely pleased with our performance this year. We\u2019ve continued to gain ground by capitalizing on compelling opportunities and hitting milestones operationally across all our lines of business despite prevailing market headwinds. Our Non-Bank Financial Institutions (NBFI) platform delivered yet another year of solid results: leading microfinance player Tanmeyah continued to make up the lion\u2019s share of revenue while our BNPL powerhouse valU saw total transactions more than double during the year. The Sell-side business also delivered outstanding results, with the Investment Banking division reporting an all-time high top line figure after having closed a record number of transactions in a single year. Together, these achievements have allowed us to maintain our standing as the leading financial services player in FEM.\u201d
The Firm\u2019s sell-side revenues climbed 44% Y-o-Y to EGP 1.8 billion in FY21, with each division delivering strong standalone results. It was an outstanding year for the Investment Banking division, with the team concluding a record 40 deals worth an aggregate USD 7.9 billion in the ECM, DCM, and M&A spaces. As a result, revenues from the division hit EGP 494 million \u2014 an over twofold increase compared to the previous year. The Brokerage division also made a marked contribution to sell-side revenues, reporting top line growth of 29% Y-o-Y to EGP 1.3 billion driven by positive performance in Egypt, the UAE (specifically Abu Dhabi), as well as by Structured Products.
Meanwhile at the Group\u2019s buy-side operations, revenues fell 23% Y-o-Y to EGP 636 million in FY21 on the back of a 77% Y-o-Y drop in revenues from the Private Equity division. This was due to the high base effect associated with EGP 342 million in one-off incentive fees booked following the exit of Vortex III last year. On a quarterly basis, the division\u2019s revenues gained 140% Y-o-Y. Nonetheless, Asset Management performed well during the year, growing revenues 45% Y-o-Y to EGP 528 million, driven by Frontier Investment Management Partners\u2019 (FIM) performance fees booked in the final quarter of the year.
Revenues from the Group\u2019s Holding & Treasury Activities contracted 31% Y-o-Y to EGP 1.3 billion, pressured by realized\/unrealized losses on seed capital compared to strong gains booked in the previous year. Treasury activities\u2019 revenue and foreign exchange gains supported the division\u2019s top line.
The solid performance generated by the Investment Banking, Brokerage, and Asset Management divisions failed to cushion the dip in revenues from Private Equity and Holding & Treasury Activities. As a result, the Investment Bank saw its top line inch down 6% Y-o-Y to EGP 3.8 billion during the year.
2021 was another exceptional year for companies under the NBFI platform, with each showing strong financial and operational performance that drove the Group\u2019s overall positive results. The NBFI platform reported revenues worth EGP 2 billion, climbing 41% Y-o-Y, with outstanding portfolios up a significant 39% Y-o-Y to EGP 13 billion. Tanmeyah, which accounts for 72% of the platform\u2019s revenues, reported a top line of EGP 1.4 billion during the year, up 31% Y-o-Y on the back of strong sales and geographical expansion across Egypt. valU also delivered a remarkable performance this year, with revenues surging 171% Y-o-Y to EGP 302 million due to numerous partnerships signed with leading merchants in vital sectors as well as innovative products launched. The platform\u2019s factoring business, which falls under EFG Hermes Corp-Solutions, also gained significant ground this year, with revenues surging 117% Y-o-Y to EGP 58 million as the business further capitalized on synergies with the Investment Bank. The leasing business, which also falls under EFG Hermes Corp-Solutions, reported revenues of EGP 215 million, up 16% Y-o-Y.
Group operating expenses grew 9% Y-o-Y to EGP 3.9 billion after the consolidation of aiBANK, whose operating expenses came in at EGP 156 million and accounted for 50% of the total increase. Additionally, employee expenses climbed 20% Y-o-Y to EGP 2.8 billion on the back of a scale-up in the NBFI businesses and variable expenses related to the increase in revenues from core operations. Meanwhile, other G&A expenses were largely flat, mainly due to lower operating expenses at the Investment Bank and particularly lower ECL and provisions at the NBFI platform.
EFG Hermes Holding\u2019s net profit after tax and minority interest came in at EGP 1.5 billion, up 12% Y-o-Y largely driven by the continued upward trajectory of the NBFI platform as well as aiBANK, which contributed EGP 38 million to the bottom line.
\u201cToday, the world is grappling with the end of quantitative easing and continuing inflationary pressure in addition to major geopolitical headwinds. As I look back, I am confident now more than ever that our strategies over the last five years \u2014 from expansion into FEMs, to the diversification into NBFIs, and the entrance into the commercial banking space \u2014 have not only borne fruit but have given us the ability to withstand very tough and turbulent market conditions,\u201d said Awad.
\u2014Ends\u2014
EFG Hermes Holding\u2019s\u00a0FY21 financial results and management\u2019s commentary on them are now available here.
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About EFG Hermes\u00a0Holding<\/p>\n\n\n\n
With a current footprint spanning 13 countries across four continents, EFG Hermes Holding (EGX: HRHO.CA \u2013 LSE: EFGD) started in Egypt and has grown over 38 years of success to become a universal bank in Egypt with the leading investment bank franchise in Frontier Emerging Markets (FEM). Drawing on our proven track-record and a diverse team of talented employees, we provide a wide spectrum of financial services that include advisory, asset management, securities brokerage, research and private equity to the entire MENA region.
In 2015, EFG Hermes launched its Non-Bank Financial Institutions (NBFI) Platform, which overlooks activities in the non-banking finance field covering microfinance, leasing, factoring, Buy-Now Pay-Later (BNPL), mortgage and insurance. This falls in line with the Firm\u2019s strategy to focus on two main pillars: product diversification and geographic expansion into non-MENA markets, which has seen the Firm establish a physical presence in Pakistan, Bangladesh, Vietnam, Kenya, Nigeria, the United Kingdom and the United States. In 2021, the firm acquired a controlling stake in aiBANK allowing the Firm to transform into a universal bank in Egypt.
Learn more about us at www.efghermes.com & stay connected with us: \u202f \u202f \u202f \u202f <\/p>\n\n\n\n
For further information, please contact:
The EFG Hermes Holding Public Relations Team
PublicRelations@EFG-Hermes.com<\/p>\n\n\n\n
May El Gammal
Group Head of Marketing & Communications at EFG Hermes Holding
melgammal@efg-hermes.com<\/p>\n\n\n\n
Note on Forward-Looking Statements
In this press release, EFG Hermes Holding may make forward looking statements, including, for example, statements about management\u2019s expectations, strategic objectives, growth opportunities and business prospects. These forward-looking statements are not historical facts but instead represent only EFG Hermes Holding\u2019s belief regarding future events, many of which, by their nature are inherently uncertain and are beyond management\u2019s control and include among others, financial market volatility; actions and initiatives taken by current and potential competitors; general economic conditions and the effect of current, pending and future legislation, regulations and regulatory actions. Accordingly, the readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. <\/p>\n","protected":false},"excerpt":{"rendered":"
Solid results for the year were driven by strong revenue gains across the Group\u2019s core business lines Cairo, 24 March 2022EFG Hermes Holding, a universal bank in Egypt and the leading investment bank franchise in Frontier Emerging Markets (FEM), reported a strong set of FY21 results today, with the Group\u2019s top line surpassing the EGP …<\/p>\n","protected":false},"author":3,"featured_media":189528,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-189527","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-1"],"yoast_head":"\n