http://www.rns-pdf.londonstockexchange.com/rns/9454M_1-2024-11-20.pdf
http://www.rns-pdf.londonstockexchange.com/rns/9454M_2-2024-11-20.pdf
http://www.rns-pdf.londonstockexchange.com/rns/9454M_3-2024-11-20.pdf
EFG HOLDING REPORTS THIRD
QUARTER 2024 RESULTS
with Group net profit after
tax and minority interest of EGP697 million; ON OPERATING REVENUE
OF EGP5.0 BILLION
Cairo, November 20th, 2024
EFG Holding reports a strong set of results for
the third quarter 2024, with a Group net profit after tax and
minority interest of EGP697 million, on operating revenues of
EGP5.0 billion. The Group's total assets stood at EGP189 billion at
the end of September 2024.
Key
Highlights
· Against a challenging backdrop, recuperated capital markets
activity supported our fee income and enhanced our dealmaking
capabilities, this took Group revenues upwards for a third quarter,
with revenues growing a decent 68% Y-o-Y to reach EGP5.0 billion in
3Q24; underpinned by increasing revenues reported by all lines of
business of the Group;
· The
Group total operating expenses (including provisions & ECL)
increased 63% Y-o-Y to EGP3.2 billion in 3Q24, stipulated by the
increase in employee expenses and operating expenses. This increase
reflects the EGP devaluation, and the elevated inflation impacts on
salaries, the non-cash portion of employee expenses and all other
operating expenses. Despite these effects, the Group employee
expenses/revenues came at 39% in 3Q24, lower Q-o-Q;
· With
the increase in Group revenues exceeding the increase in expenses,
EFG Holding net operating profit rose 78% Y-o-Y in 3Q24. Group
taxes more than doubled Y-o-Y, up 122% Y-o-Y, on higher deferred
taxes on unrealized gains on seed capital and increasing tax
charges related to Egyptian entities profitability; particularly at
the Commercial Bank. However, EFG Holding shrugged off the higher taxes impact on profitability, to
report a net profit after tax and minority
interest of EGP697 million in 3Q24, reflecting a 76% Y-o-Y
increase.
· With
another buoyant quarter, EFG Hermes revenues spiraled up 87% Y-o-Y
to EGP2.7 billion in 3Q24; supported by higher revenues generated
by all its lines of business; particularly Holding & Treasury
Activities and Brokerage. Holding & Treasury Activities
revenues rose 180% Y-o-Y, driven largely by unrealized gains on
seed capital. The sell-side revenues gained 62% Y-o-Y, bolstered by
strong growth in Brokerage and Investment Banking. Buy-side
revenues rose 71%, mainly on the back of FIM's strong
performance;
· EFG
Hermes operating expenses rose 84% Y-o-Y to EGP1.9 billion in 3Q24,
mainly due to higher employee expenses, followed by higher other
operating expenses, and despite lower provisions & ECL. The
increase in operating expenses portrays high inflation levels in
Egypt, the sharp Y-o-Y EGP devaluation and its impact on Egypt
expenses denominated in USD and higher expenses from regional
offices;
· EFG
Hermes net operating profit almost doubled Y-o-Y, up 95% Y-o-Y to
EGP760 million in 3Q24; as revenue growth outpaced the growing
expenses. Meanwhile, taxes rose 168% Y-o-Y, on higher profitability
recorded by the Egyptian entities and higher deferred taxes on
unrealized gains on seed capital. However, EFG Hermes net profit
after tax and minority increased 68% Y-o-Y to EGP274
million.
· Boosted by stronger sales, the NBFIs continued its strong
revenue growth, with EFG Finance gaining 68% Y-o-Y to EGP1.1
billion in 3Q24, as all the platform's lines of business posted
Y-o-Y growth; particularly Tanmeyah, followed by Valu and
Leasing;
· Operating expenses increased 50% Y-o-Y to EGP809 million; (i)
higher employee expenses, which was driven by inflationary pressure
in Egypt; (ii) higher other operating expenses which echoes
inflation in Egypt, the impact of USD denominated costs, and higher
expenses related to stronger loans issuance at Valu; and (iii)
higher provisions and ECL mirroring the increase in the portfolios,
which reached EGP22.2 billion, up 59% Y-o-Y;
· EFG
Finance recorded net operating profit of EGP311 million, up 142%
Y-o-Y in 3Q24; as the increase in revenues outpaced the increase in
expenses. With the increase in taxes coming at 26% Y-o-Y, net
profits after tax and minority leaped 349% Y-o-Y to EGP203 million,
supported by Tanmeyah and Leasing higher profitability.
· The
Commercial Bank continued its upwards trend, with its revenues,
moving up 38% Y-o-Y to EGP1.2 billion in 3Q24; largely driven by
higher net interest income, generated from interbank placements,
loan book growth and t-bills returns;
· BANK
NXT operating expenses including provisions & ECL rose 27%
Y-o-Y to EGP517 million in 3Q24, on higher salaries on the back of
promotions, new hires and inflation; together with higher other
G&A expenses mainly related to IT expenses, rebranding, and
outsourced services. Meanwhile, provisions & ECL declined 43%
Y-o-Y, as the comparable quarter included higher
provisions which were required to enhance coverage
ratio;
· The
Bank's net profit after tax added 20% Y-o-Y to EGP428 million (of
which the Group's share is EGP220 million), as revenues growth
outpaced the growth 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
