REG - EFG-Hermes Holdings - FY2021 Results

EFG Holding SAEAnnouncement

24/03/2022 07:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220324:nRSX8874Fa&default-theme=true

RNS Number : 8874F  EFG-Hermes Holdings SAE  24 March 2022

http://www.rns-pdf.londonstockexchange.com/rns/8874F_1-2022-3-24.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8874F_1-2022-3-24.pdf)

 

EFG HERMES REPORTS Full Year 2021

GROUP EARNINGS OF EGP1.5 BILLION; ON OPERATING REVENUE OF EGP6.1 BILLION

Cairo, March 24(th), 2022 - EFG Hermes reports a strong set of results for the
full year 2021, with Group earnings of EGP1.5 billion on operating revenues of
EGP6.1 billion. The Group's total assets stood at EGP96.6 billion at the end
of December 2021.

   Key Highlights

FY21

·      Group EFG Hermes' revenues surpassed the six billion mark in FY21,
to reach EGP6.1 billion; boosted by an increase in revenues reported by all
core operations, in addition to the consolidation of aiBANK's two months of
revenues, post the completion of its acquisition in 4Q21. This year's
performance is a testament to the Firm's ability to grow revenues, despite the
strong realized/unrealized gains on investments and Private Equity's
exceptional incentive fees (EGP342 million) booked in the comparable year;

·      Group operating expenses rose 9% Y-o-Y to reach EGP3.9 billion in
FY21, with 50% of this increase attributed to aiBANK's operating expenses,
which came at EGP156 million. Employee expenses rose 20% Y-o-Y to reflect
scaling up of the NBFIs and variable expenses related to higher revenues
generated by all core operations. This increase was partially muted by cost
containment on the G&A side and lower provisions & ECL taken during
the year;

·     Group net profit after tax and minority interest rose 12% Y-o-Y to
EGP1.5 billion, driven mainly by the NBFIs strong profitability, as well as a
contribution of EGP38 million from aiBANK;

·      Strong revenues generated by Investment Banking, Brokerage and
Asset Management failed to off-set the decline in Holding & Treasury
Activities and Private Equity revenues. The Investment Bank recorded a solid
EGP3.8 billion of revenues, translating into a limited decline of 6% Y-o-Y;
despite the large variance in magnitude between realized and unrealized losses
on seed capital in the current year compared to gains in FY20, together with
Private Equity's non-recurring revenues, (which included EGP342 million of
incentive fees related to Vortex III exit) in the comparable year;

·    The Investment Bank net profit after tax and minority interest came
at EGP1.1 billion, down 22% Y-o-Y; pressured by Holding's strong revenues
generation and Private Equity's non-recurring fees in the comparable year as
well as on higher employee expenses, and albeit lower other G&A and ECL
& Provisions;

·      A very robust year for the NBFIs, with all its businesses
reporting resilient revenues. NBFIs recorded revenues of EGP2.0 billion, up
41% Y-o-Y, and reflecting an aggregate outstanding portfolios* of EGP13
billion, up 39% Y-o-Y. Tanmeyah, which accounts for 72% of the Platform's
revenues, was the main driver for revenues growth as the business resumed
growth in loans issued and sales in 2H21. valU followed, with stronger sales
and higher margins;

·      The NBFIs net profit after tax and minority interest reached
EGP344 million, up from a loss of EGP73 million, on higher revenues generated
by all the platform's lines of business and lower ECL & Provisions, and
despite higher employee expenses and other G&A;

·      EFG Hermes completed the acquisition of 51% of aiBANK shares in
4Q21, and thus the EFG Hermes' consolidated financial statements include two
months of the Bank's performance (November and December figures).

 

 

For full report, please click on the link on top of the page.

For further information:

Investor Relations Contacts

Email: investor-relations@efg-hermes.com

Group Head of IR, Budgeting and Reporting

Hanzada Nessim

Email: hnessim@efg-hermes.com

Tel: +20 (0)2 35356502

www.efg-hermes.com

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACSDZLBLLXLFBBZ