REG - EFG Holding S.A.E. - EFG Holding 1Q25 Results

EFG Holding SAEAnnouncement

21/05/2025 08:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250521:nRSU5680Ja&default-theme=true

RNS Number : 5680J  EFG Holding S.A.E.  21 May 2025

http://www.rns-pdf.londonstockexchange.com/rns/5680J_1-2025-5-21.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5680J_1-2025-5-21.pdf)

http://www.rns-pdf.londonstockexchange.com/rns/5680J_2-2025-5-21.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5680J_2-2025-5-21.pdf)
(http://www.rns-pdf.londonstockexchange.com/rns/5680J_3-2025-5-21.pdf)

http://www.rns-pdf.londonstockexchange.com/rns/5680J_3-2025-5-21.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5680J_3-2025-5-21.pdf)

EFG HOLDING REPORTS FIRST QUARTER YEAR 2025 RESULTS

with Group net profit after tax and minority interest of EGP1.2 billion; ON
OPERATING REVENUE OF EGP5.6 BILLION

Cairo, May 21(st), 2025 EFG Holding reports a strong set of results for first
quarter year 2025, with Group net profit after tax and minority interest of
EGP1.2 billion on operating revenues of EGP5.6 billion. The Group's total
assets stood at EGP207.2 billion at the end of March 2025.

   Key Highlights

EFG Holding

·    Against a backdrop of global turmoil, EFG Holding delivered revenues
of EGP5.6 billion in 1Q25. This is a decline of 34% Y-o-Y despite resilient
operational performance by the different lines of business. This was primarily
due to a high base in 1Q24 which included an unusually large fx gain due to
the one-off devaluation event which resulted in the EGP moving from EGP 30.9
per USD to EGP 49.5 per USD in March 2024. Accordingly, excluding the impact
of any fx gains across both periods, the Group's revenues would be up 31%
Y-o-Y, reflecting healthy growth across the three different platforms, mainly
the Investment Bank and EFG Finance, followed by BANK NXT;

·     With the decline in revenues, the Group's total operating expenses
(including provisions & ECL) also decreased 29% Y-o-Y to EGP3.5 billion,
on lower employee expenses, lower provisions & ECL, and despite higher
other G&A. Thus, the Group's employee expenses/revenues came at 37% in
1Q25 compared to 41% in 1Q24;

·    EFG Holding's net operating profit and net profit before taxes both
lost 41% Y-o-Y. Taxes decreased 67% Y-o-Y, primarily on deferred tax gains on
seed capital unrealized losses. Consequently, EFG Holding net profit after tax
and minority interest slipped 34% Y-o-Y to reach EGP1.2 billion.

EFG Hermes

 

·      EFG Hermes witnessed a buoyant start to the year, with its
Sell-side and Buy-side revenues posting solid Y-o-Y growth. However, this
increase was pressured by Holding & Treasury Activities recording lower
revenues Y-o-Y, as the comparable period included the impact of the
non-recurring EGP devaluation which resulted in a massive fx gain. This
resulted in EFG Hermes revenues declining 54% Y-o-Y to EGP2.9 billion.
Excluding the impact of any fx gains across both periods, EFG Hermes revenues
would be up 30% Y-o-Y;

·      EFG Hermes operating expenses (including provisions & ECL)
declined 45% Y-o-Y to EGP2 billion, also due to lower employee expenses, lower
provisions & ECL, and despite higher other G&A expenses;

·      As a result, EFG Hermes net operating profit and net profit
before taxes both slipped 65% Y-o-Y. However, taxes came lower 92% Y-o-Y, on
the back of deferred tax gains on unrealized losses on investments.
Consequently, EFG Hermes reported net profit after tax and minority interest
of EGP652 million, down 54% Y-o-Y.

EFG Finance

·      EFG Finance started the year strong with its revenues rising 23%
Y-o-Y to reach EGP1.3 billion, supported by higher revenues generated by
Tanmeyah, followed by Valu. Most lines of business also recorded significant
fx gains in 1Q24, resulting in a decline in their revenue growth Y-o-Y.
Excluding this non-operational income, EFG Finance revenues would be up a more
robust 54% Y-o-Y;

·      EFG Finance operating expenses rose 12% Y-o-Y to EGP900 million,
on higher employee expenses and other G&A, and despite lower provisions
and ECL. The increase in operating expenses is mainly related to the growth in
operations and the inflationary environment;

·      With the increase in revenues surpassing the increase in
operating expenses, EFG Finance net operating profit and net profit before tax
rose 56% Y-o-Y and 60% Y-o-Y, respectively. Taxes decreased 12% Y-o-Y, on
lower profitability posted by Leasing; thus, EFG Finance net profit after tax
and minority interest more than doubled, up 108% Y-o-Y to EGP297 million,
boosted by higher profitability reported by almost all its lines of business.

 

 

 

BANK NXT

·      The Commercial Bank delivered a steady performance, with its
revenues increasing 11% Y-o-Y to EGP1.4 billion in 1Q25; largely driven by
higher net interest income, due to interest rate hikes of 800 bps during 2024,
in addition to a growth in interest earning assets. This was partially offset
by a 46% Y-o-Y decrease in net fees & commissions. 1Q24 also witnessed
strong fx gains as compared to 1Q25, which if excluded, would result in
revenues increasing 16% Y-o-Y;

·      BANK NXT operating expenses including provisions & ECL rose a
19% Y-o-Y to EGP624 million in 1Q25, primarily due to higher salaries, as well
as higher other G&A expenses. This increase was offset by a 37% decline in
provisions and ECL, reflecting a normalized ECL charge pattern noting that the
past three years witnessed elevated ECL charges in a successful bid to more
than adequately cover the portfolio and enhance the bank's coverage ratio. In
addition, there was also the positive impact of recoveries and debt asset
swaps recorded in 1Q25;

·      The Bank's net profit after tax added 5% Y-o-Y to reach EGP498
million (of which the Group's share is EGP255 million) in 1Q25, as revenue
growth outpaced the growth in expenses.

For full report and financial statements, please click on the links on top of
the page.

For further information:

Investor Relations Contacts

Email: InvestorRelations@efghldg.com

Group Head of Corporate Strategy & Investor Relations

Basant Abdelmonsef

Email: babdelmonsef@efghldg.com

Tel: +20 (0)2 35356412

www.efghldg.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  QRFPKDBQABKKOPB