Egypt's EFG Hermes sees 27 per cent boost in annual profits

Ahram Online, Wednesday 30 Mar 2011

Country's leading investment bank announces strong financial results for 2010 fiscal year

The net income of Egypt's EFG-Hermes surged 27 per cent to reach 700.4 million Egyptian pounds at the end of 2010, according to a consolidated financial statement for 2010 released today. The leading investment bank's profits for 2009 were LE551.8 million.

The bank's total assets reached LE46.7 billion while shareholder equity stood at LE9.9 billion, versus LE11bn and LE8.9bn respectively in 2009. Figures for TF2010 include the consolidation of Crédit Libanais, the Lebanese commercial bank.

"The Group ended FY2010 with a solid balance sheet," reads EFG-Hermes' statement published on their website Wednesday. "The group's balance sheet ended the fourth quarter and the year on strong footing."

At the same time, the Egyptian joint-stock company's total consolidated operating revenues have increased by 72 per cent year-on-year, while total assets stood at LE46.7bn at the end of FY2010, a rise of 324 per cent.

The Commercial Bank has also reported net profits of US$77.7m in FY2010, representing an increase of 52 per cent over FY2009 and reflecting the strong performance of the Lebanese banking sector and Crédit Libanais itself. The growth in earnings was driven by strong recurring and non-recurring income growth.

Total revenue from the investment bank's activities rose 92 per cent year-on-year to reach LE1,907m in FY2010, including capital gains of LE716.6m from the sale of Bank Audi.

Group operating revenue rose 72 per cent  to LE2,463m, with commercial bank contributions accounting for 23 per cent and the investment bank 77 per cent, recording a net operating profit of LE1,330m for FY2010 -- a 90 per cent year-on-year rise.

Fee and commission revenue rose 8 per cent year-on-year to reach LE855m in FY2010, "largely driven by stronger revenue generated from the investment banking operations as the team managed to close several transactions during the year," says the statement.

Revenue generated from capital markets and treasury operations was LE1,052m in FY2010, reflecting a capital gain of LE716.6m from the sale of Bank Audi and strong revenue generated from foreign exchange gains and net interest income.

EFG-Hermes closed a total of 11 transactions in FY2010, totalling $4.6bn in value and distributed across the entire investment banking spectrum which includes ECM, DCM and M&A activities.

In January 2011, the team finished advising Orascom Telecom on the $1.2 billion sale of its 50 per cent stake in Tunisia’s second mobile operator Tunisiana to Qatar Telecom.

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