EFG Holding reports a 76% increase in its net profit for the third quarter, reaching $14 million
EFG Holding, based in Egypt, announced on Wednesday that its net profit for the third quarter increased by 76% compared to last year, reaching $14 million (EGP 697 million), excluding minority interest.
Third-quarter results
The group’s revenue grew by 68% compared to last year, reaching $100.6 million (EGP 5 billion). This increase was due to strong performance in all areas of the business.
EFG’s total operating expenses went up by 63%, reaching $64.4 million (EGP 3.2 billion). This rise was mainly because of the country’s currency losing value, the effect of inflation on costs, and the growth of operations.
The company’s operating profit increased by 78% from last year, and group taxes more than doubled, rising by 122%. The higher taxes were due to more taxes on unrealized gains and higher taxes on the profits of Egyptian companies.
“Our growth in such a difficult economy shows that our solid strategy is working, helping us grow in markets like Saudi Arabia,” said Karim Awad, group CEO of EFG Holding.
Strong performance across verticals
The group’s three divisions—EFG Hermes, EFG Finance, and aiBANK—have shown strong growth in the third quarter.
EFG Hermes, the investment bank, saw a 68% increase in net profit, reaching $5.5 million (EGP 274 million), while its revenue grew by 87% to $54.4 million (EGP 2.7 billion).
EFG Finance, the non-bank financial institutions platform, reported a 349% rise in net profit to $4.1 million (EGP 203 million), and its revenue grew by 68% to $22.15 million (EGP 1.1 billion).
aiBANK, the commercial bank, had a 20% increase in net profit to $8.6 million (EGP 428 million), and its revenue rose by 38% to $24.17 million (EGP 1.2 billion).
Recent Activities
On Monday, EFG Hermes announced that its private equity division has started a $300 million Saudi Education Fund (SEF). This fund aims to develop a top-tier K-12 education provider in Saudi Arabia and signed a deal to acquire a group of international schools.
On Sunday, the investment bank completed its 12th bond issuance for financial tech company Valu, raising $13.5 million (EGP 667.3 million). This was part of a new securitization program worth $324.5 million (EGP 16 billion).
In October, EFG Hermes helped sell Helmerich & Payne’s full stake in ADNOC Drilling for $197 million through an accelerated book build (ABB). EFG Hermes worked as the joint global coordinator to assist in this sale.
In July, EFG Hermes advised UAE-based Electra Investment Holding on its $449 million purchase of a stake in Elsewedy Electric. The month before, EFG Hermes helped with the $11 billion secondary public offering of Saudi Aramco on the Saudi Stock Exchange.
Published: 20th November 2024
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