EFG HOLDING REPORTS FULL YEAR
2023 RESULTS
with Group net profit after
tax and minority interest of EGP2.5 billion; on operating revenues
of EGP14.7 billion
Cairo, March 20th, 2024 EFG Holding reports a strong set of results for full year
2023, with Group net profit after tax and minority interest of
EGP2.5 billion on operating revenues of EGP14.7 billion. The
Group's total assets stood at EGP121.9 billion at the end of
December 2023.
http://www.rns-pdf.londonstockexchange.com/rns/5689H_1-2024-3-20.pdf
http://www.rns-pdf.londonstockexchange.com/rns/5689H_2-2024-3-20.pdf
Key
Highlights
· EFG
Holding had a good year, with a 34% Y-o-Y increase in revenues to
reach its highest level ever at EGP14.7 billion in FY23, driven by
enhanced Brokerage commissions, primarily from the Egyptian
operations and unrealized gains on investments. Additional
contributing lines of business included Asset Management's strong
increase in incentive fees primarily from FIM Partners noting that
AM Egypt although of smaller magnitude also had a good year,
Private Equity's management fees growth, a continued upward
trajectory in Valu's revenues driven by its outstanding growth, and
aiBANK's notable top-line growth;
· The Group
operating expenses (including provisions & ECL)
rose 35% Y-o-Y to EGP9.8 billion, on higher
employee expenses and other G&A particularly at EFG Hermes,
followed by aiBANK; and higher provisions and ECL across EFG
Finance lines of business and aiBANK;
· EFG Holding net
profit rose 47% Y-o-Y to EGP3.2 billion in FY23, driven primarily
by Brokerage, Asset Management, Valu and aiBANK growth in
profitability. Meanwhile, the Group net
profit after tax and minority interest came at EGP2.5 billion, up
39% Y-o-Y;
· EFG
Hermes had a strong year, with its revenues rising 32% Y-o-Y to
EGP8.1 billion in FY23, driven primarily by its core operations,
the sell-side and the buy-side. Moreover, Holding & Treasury
Activities revenues added 5% Y-o-Y to EGP3.1 billion, on higher
unrealized gains on Investments/seed capital. Sell-side revenues
rose 51% to EGP3.8 billion, lifted by Brokerage revenues which grew
73% Y-o-Y to EGP3.1 billion. Buy-side revenues leaped 75% Y-o-Y to
close the year at EGP1.3 billion; mainly driven by robust growth in
the Asset Management business, with its revenues rising 84% Y-o-Y
to EGP1.0 billion;
· The
Investment Bank total operating expenses rose 41% Y-o-Y to EGP5.7
billion in FY23, driven largely by higher employee expenses,
followed by higher other G&A, with both reflecting inflation
and USD denominated expenses in Egypt, and the impact of the Y-o-Y
devaluation from regional operations expenses. Provisions & ECL
declined 15% Y-o-Y to EGP167 million; on lower provisions mainly
booked by Private Equity;
· The
Investment Bank net operating profits came at EGP2.4 billion, up
15% Y-o-Y in FY23. Meanwhile, net profit after tax and minority
increased 20% Y-o-Y to EGP1.6 billion in FY23, on lower deferred
taxes and despite higher tax charges from the Investment Bank
operations, particularly from profitable Egyptian
operations.
· EFG Finance platform revenues rose 17% Y-o-Y to reach EGP3.0
billion in FY23, underpinned by Valu, which was the main driver for
EFG Finance's top and bottom line in FY23, with its revenues
spiraling up 78% Y-o-Y to EGP1.2 billion in FY23. The company
continued to grow its operations, increase sales, contain expenses;
thus, leading to a significant growth in its profitability. This
was followed by Leasing and Factoring reporting higher revenues,
with revenues from the former rising 23% Y-o-Y to EGP363 million
and the latter adding 45% Y-o-Y to EGP120 million. This growth in
revenues managed to mask lower revenues reported by Tanmeyah, which
recorded 14% Y-o-Y decline in its revenues to reach EGP1.3 billion
in FY23;
· Operating
expenses rose 17% Y-o-Y to EGP2.3 billion in FY23, driven primarily
by higher provisions & ECL to reflect weaker macro-economic
outlook used in ECL models; followed by higher employee expenses
and other G&A expenses to mirror business growth, inflation and
the translation of the USD denominated expenses;
· EFG Finance
net profit after tax and minority rose 51% Y-o-Y to EGP349 million,
lifted Valu's profitability which off-set the decline in Tanmeyah's
profitability and the increase in Fatura's losses.
· A very
buoyant year for the Commercial Bank, with aiBANK's revenues
soaring 61% Y-o-Y to EGP3.6 billion in FY23, driven by higher net
interest income on the back of loan book growth and supported by an
increase in the corridor rates. Moreover, Fees & commissions
increased more than 3x, largely on higher trade finance
activities;
· aiBANK
operating expenses including provisions & ECL rose 46% Y-o-Y to
EGP1.8 billion in FY23, on higher salaries on the back of
promotions, new hires and inflation; together with higher other
G&A expenses to reflect operations growth, inflation and the
devaluation impact on USD denominated expenses. Moreover, the
increase in provisions & ECL mirror the management more
conservative approach to enhance coverage ratios; in addition to
loan portfolio growth;
· The
Bank's net profit after tax more than doubled, up 117% Y-o-Y to
EGP1.1 billion (of which the Group's share is EGP591 million) in
FY23, as revenues growth outpaced the growth in
expenses.
For full report and financial
statements, 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.efg-hermes.com
