REG - EFG Holding S.A.E. - EFG Holding 3Q24 Results

EFG Holding SAEAnnouncement

20/11/2024 07:45

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241120:nRST9454Ma&default-theme=true

RNS Number : 9454M  EFG Holding S.A.E.  20 November 2024

http://www.rns-pdf.londonstockexchange.com/rns/9454M_1-2024-11-20.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9454M_1-2024-11-20.pdf)

http://www.rns-pdf.londonstockexchange.com/rns/9454M_2-2024-11-20.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9454M_2-2024-11-20.pdf)

http://www.rns-pdf.londonstockexchange.com/rns/9454M_3-2024-11-20.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9454M_3-2024-11-20.pdf)

EFG HOLDING REPORTS THIRD QUARTER 2024 RESULTS

with Group net profit after tax and minority interest of EGP697 million; ON
OPERATING REVENUE OF EGP5.0 BILLION

Cairo, November 20(th), 2024 EFG Holding reports a strong set of results for
the third quarter 2024, with a Group net profit after tax and minority
interest of EGP697 million, on operating revenues of EGP5.0 billion. The
Group's total assets stood at EGP189 billion at the end of September 2024.

   Key Highlights

EFG Holding

·      Against a challenging backdrop, recuperated capital markets
activity supported our fee income and enhanced our dealmaking capabilities,
this took Group revenues upwards for a third quarter, with revenues growing a
decent 68% Y-o-Y to reach EGP5.0 billion in 3Q24; underpinned by increasing
revenues reported by all lines of business of the Group;

·      The Group total operating expenses (including provisions &
ECL) increased 63% Y-o-Y to EGP3.2 billion in 3Q24, stipulated by the increase
in employee expenses and operating expenses. This increase reflects the EGP
devaluation, and the elevated inflation impacts on salaries, the non-cash
portion of employee expenses and all other operating expenses. Despite these
effects, the Group employee expenses/revenues came at 39% in 3Q24, lower
Q-o-Q;

·      With the increase in Group revenues exceeding the increase in
expenses, EFG Holding net operating profit rose 78% Y-o-Y in 3Q24. Group taxes
more than doubled Y-o-Y, up 122% Y-o-Y, on higher deferred taxes on unrealized
gains on seed capital and increasing tax charges related to Egyptian entities
profitability; particularly at the Commercial Bank. However, EFG Holding
shrugged off the higher taxes impact on profitability, to report a net profit
after tax and minority interest of EGP697 million in 3Q24, reflecting a 76%
Y-o-Y increase.

EFG Hermes

·      With another buoyant quarter, EFG Hermes revenues spiraled up 87%
Y-o-Y to EGP2.7 billion in 3Q24; supported by higher revenues generated by all
its lines of business; particularly Holding & Treasury Activities and
Brokerage. Holding & Treasury Activities revenues rose 180% Y-o-Y, driven
largely by unrealized gains on seed capital. The sell-side revenues gained 62%
Y-o-Y, bolstered by strong growth in Brokerage and Investment Banking.
Buy-side revenues rose 71%, mainly on the back of FIM's strong performance;

·      EFG Hermes operating expenses rose 84% Y-o-Y to EGP1.9 billion in
3Q24, mainly due to higher employee expenses, followed by higher other
operating expenses, and despite lower provisions & ECL. The increase in
operating expenses portrays high inflation levels in Egypt, the sharp Y-o-Y
EGP devaluation and its impact on Egypt expenses denominated in USD and higher
expenses from regional offices;

·      EFG Hermes net operating profit almost doubled Y-o-Y, up 95%
Y-o-Y to EGP760 million in 3Q24; as revenue growth outpaced the growing
expenses. Meanwhile, taxes rose 168% Y-o-Y, on higher profitability recorded
by the Egyptian entities and higher deferred taxes on unrealized gains on seed
capital. However, EFG Hermes net profit after tax and minority increased 68%
Y-o-Y to EGP274 million.

EFG Finance

·      Boosted by stronger sales, the NBFIs continued its strong revenue
growth, with EFG Finance gaining 68% Y-o-Y to EGP1.1 billion in 3Q24, as all
the platform's lines of business posted Y-o-Y growth; particularly Tanmeyah,
followed by Valu and Leasing;

·      Operating expenses increased 50% Y-o-Y to EGP809 million; (i)
higher employee expenses, which was driven by inflationary pressure in Egypt;
(ii) higher other operating expenses which echoes inflation in Egypt, the
impact of USD denominated costs, and higher expenses related to stronger loans
issuance at Valu; and (iii) higher provisions and ECL mirroring the increase
in the portfolios, which reached EGP22.2 billion, up 59% Y-o-Y;

·      EFG Finance recorded net operating profit of EGP311 million, up
142% Y-o-Y in 3Q24; as the increase in revenues outpaced the increase in
expenses. With the increase in taxes coming at 26% Y-o-Y, net profits after
tax and minority leaped 349% Y-o-Y to EGP203 million, supported by Tanmeyah
and Leasing higher profitability.

 

BANK NXT

·      The Commercial Bank continued its upwards trend, with its
revenues, moving up 38% Y-o-Y to EGP1.2 billion in 3Q24; largely driven by
higher net interest income, generated from interbank placements, loan book
growth and t-bills returns;

·      BANK NXT operating expenses including provisions & ECL rose
27% Y-o-Y to EGP517 million in 3Q24, on higher salaries on the back of
promotions, new hires and inflation; together with higher other G&A
expenses mainly related to IT expenses, rebranding, and outsourced services.
Meanwhile, provisions & ECL declined 43% Y-o-Y, as the comparable quarter
included higher provisions which were required to enhance coverage ratio;

·      The Bank's net profit after tax added 20% Y-o-Y to EGP428 million
(of which the Group's share is EGP220 million), as revenues growth outpaced
the growth in expenses.

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

 

For further information:

Investor Relations Contacts

Email: investor-relations@efg-hermes.com

Group Head of Corporate Strategy & Investor Relations

Hanzada Nessim

Email: hnessim@efg-hermes.com

Tel: +20 (0)2 35356502

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  QRTQKKBNOBDKADB