Increase in Revenues and Net Profit Lifts EFG Holding’s Nine-Month Performance to New Heights، Driven by EFG Hermes and aiBANK's Strong Performance
تاريخ النشر: 15th, November 2023 GMT
EFG Holding، a financial institution with a universal bank in Egypt and a leading investment bank in Frontier and Emerging Markets (FEM)، announced today strong financial performance for the third quarter of 2023. The Group booked a robust revenue increase of 27% Y-o-Y to EGP 3.0 billion، with strong contributions from its Investment Bank arm، EFG Hermes، and its commercial bank arm، aiBANK.
Commenting on the performance، Karim Awad، Group CEO of EFG Holding، said: "I am extremely proud to report on yet another solid quarter، a reflection of our team's outstanding achievements during the period despite challenging market landscapes. Our strong financial results — driven by the strong performances of EFG Hermes and aiBANK — validate our strategic approach to revenue diversification and our dedication to delivering superior outcomes for our clients and shareholders. This outstanding performance showcases our ability to thrive by leveraging the diversity of our operating model."
On the investment bank side of the house، EFG Hermes reported robust results for 3Q23، with revenues increasing 30% Y-o-Y to EGP 1.4 billion، supported by strong Brokerage revenues in Egypt and the UAE، higher incentive fees from Asset Management Egypt and through the Asset Management business’ regional arm Frontier Investment Management (FIM)، increased management fees in Private Equity، and the positive impact of exchange rate movement. Despite lower revenue contributions from Holding and Treasury Activities، as well as Investment Banking، EFG Hermes' net operating profit amounted to EGP 390 million، a notable 22% Y-o-Y increase.
Revenues at EFG Finance، the Group’s Non-Bank Financial Institutions (NBFI) platform، came in flat Y-o-Y at EGP 666 million in 3Q23، with Valu’s exceptional growth contributing the lion’s share at EGP 314 million، up 105% Y-o-Y. Operating expenses inched up 7% Y-o-Y to EGP 538 million primarily due to higher employee expenses and provisions، leading net operating profit to dip 20% Y-o-Y to EGP 129 million. Net profit after tax and minority interest dropped 51% Y-o-Y for the platform to EGP 30 million.
The decline in EFG Finance's profits can be attributed to several factors، including the adoption of responsible lending guidelines in Tanmeyah، ongoing restructuring efforts across the platform، and a cautious approach to provisioning. These measures reflect the company's commitment to long-term stability and risk management. While they may have temporarily affected revenues، they demonstrate EFG Finance's dedication to responsible practices and optimizing operational efficiency. Despite the current challenges، the company remains optimistic and expects to regain its historically strong growth rates by the end of 1Q24، as these measures lay the groundwork for sustainable success in the future.
aiBANK، a key contributor to EFG Holding's significant financial performance، witnessed an outstanding Y-o-Y revenue growth of 53% in 3Q23، amounting to EGP 890 million. The growth was driven by improved net interest income from increasing interest-earning assets and higher fees and commissions resulting from increased trade finance volumes. Consequently، the bank's net profit after tax soared an impressive 214% Y-o-Y to EGP 345 million.
"While we saw broad-based strength across our multiple verticals this quarter، the outstanding contributions from our innovative fintech company Valu were a strategically important part of the EFG Finance story. We are confident in our ability to leverage technological advancements to meet evolving customer needs and further strengthen our position as not only a leader but an innovator in the financial industry. At the same time، we will continue to leverage the breadth and depth of our comprehensive financial service portfolio، our advisory capabilities، and more as we remain steadfast in our commitment to delivering exceptional value to our shareholders، clients، and employees. We are confident we have the tools، the people، and the strategic planks in place that will allow us to continue offering innovative financial solutions and seizing growth opportunities in the evolving financial market landscape across our footprint،" added Awad.
EFG Holding’s 3Q23 financial results and management’s commentary are available here.
المصدر: بوابة الفجر
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It will also provide practical tips for optimizing costs and maximizing project revenues، supporting clients in enhancing their businesses' profitability and sustainability. This positions Tanmeyah as a leader in financial empowerment، equipping individuals—particularly small business owners and entrepreneurs—with the knowledge and tools necessary to thrive and make informed decisions for their ventures.
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The mobile branch initiative is designed to enhance financial literacy، promote financial inclusion، and improve customer service management. By providing accessible financial education and support، the initiative aims to empower small business owners to make informed financial decisions، manage their finances effectively، and build sustainable businesses.
Launched in 2009، Tanmeyah has grown to become Egypt’s premier financial services provider for microfinance enterprises، providing a range of financing solutions tailored to meet client needs، build businesses، and drive socioeconomic change. With the widest branch network in the country، deep industry knowledge، and community ties، Tanmeyah has improved lives and built businesses of millions across the country. Tanmeyah has issued over three million financing facilities of various types and sizes. It currently serves more than 30،000 new clients monthly through its network of nearly 350 branches and more than 5،000 employees in 25 governorates.
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