Strong quarterly revenue for EFG Holding Group, leading to significant growth in revenue and net profit in the first half of 2023, nearly doubling each, up 89% compared to the same period in the previous year
The group’s revenues recorded a strong increase at an annual rate of 51% to reach 3.1 billion pounds, along with a 37% growth in net profit before taxes to reach 842 million pounds in the second quarter of 2023.
Today, EFG Holding Group – the leading financial institution that owns a comprehensive bank in Egypt and the leading investment bank in emerging and frontier markets – announced its financial and operating results for the second quarter of 2023, with revenues reaching EGP 3.1 billion, an annual growth rate of 51%. This is thanks to the strong performance of the three sectors of the group, investment bank (EFG Hermes), aiBANK and non-bank financing platform (EFG Finance). Despite the increase in the group’s operating expenses at an annual rate of 53%, the EFG Holding Group achieved a growth in operating profits at an annual rate of 46% to reach 988 million pounds, accompanied by a growth in net profit before tax at an annual rate of 37% to reach 842 million pounds during the same period. Period. Accordingly, the net profit after deducting taxes and minority interests rose at an annual rate of 20% to reach 405 million pounds during the second quarter of this year.
In this context, he was praised Karim Awad, CEO of EFG Holding GroupWith the group’s ability to achieve this strong performance during the first half of 2023, which resulted in achieving exceptional financial and operational results in various operating sectors. Awad added that the group’s performance during that period reflects its firm commitment to continuing to achieve operational excellence in the markets in which it operates, in addition to the brokerage, promotion and underwriting sectors (Sell-Side) and asset management and direct investment (Buy-Side) at EFG. Hermes is implementing the group’s ambitious strategy. Awad expressed his happiness with the performance achieved by the EFG Finance platform and aiBANK, in light of the continued reaping of the benefits of the growing demand from customers for the package of financial solutions and various banking services offered by each of them. Awad confirmed that Value has managed to take the lead in the non-bank financing platform by achieving strong revenues and diversifying the range of products and services it offers, and aiBANK’s revenues have doubled significantly thanks to the continued implementation of its transformation strategy. Awad stressed that this strong performance reflects the huge potential for maximizing value from the group’s business model, which is characterized by comprehensiveness and diversity.
The investment bank managed EFG Hermes He continued the successes achieved since the beginning of the year, as he succeeded in providing advisory services for many major deals in the region, which included two deals in the stock markets and three deals in the debt arrangement and issuance market, with a total value of $ 1.1 billion, which contributed to strengthening the leading position that is unique to him. The sector as the preferred partner for executing such deals in the region. Among the most notable of these deals is the initial public offering of ADNOC Gas plc on the Abu Dhabi Securities Exchange (ADX), as well as acting as joint global coordinator for the initial public offering of Al Ansari Financial Services on the Dubai Financial Market.
In terms of the performance of EFG Hermes’ activities during the second quarter of 2023, the investment bank achieved a remarkable growth in revenues at an annual rate of 61% to reach EGP 1.6 billion, compared to EGP 989 million during the same period of the previous year, thanks to the strong growth of the promotion sector and its coverage. Underwriting and brokerage in securities (Sell-Side), which increased at an annual rate of 13% to reach 797 million pounds in the second quarter of 2023, on the back of the growth of revenues from brokerage activities in securities at an annual rate of 57% to 645 million pounds during the same period. The direct investment and buy-side asset management sectors also achieved strong growth at an annual rate of 145% and 61%, respectively, which in turn contributed to the sector’s revenue growth at an annual rate of 77% to reach EGP 262m during the second quarter of 2023. In addition to Moreover, the increase in revenues from treasury activities at an annual rate of 286% to 530 million pounds contributed to enhancing the investment bank’s revenues during the second quarter of 2023.
The non-bank financing platform continued EFG Finance Providing a new package of innovative financial solutions and services, as well as entering into many successful strategic partnerships during the second quarter of 2023. In terms of operational performance, EFG Finance’s revenues increased at an annual rate of 23%, to record EGP 620 million during the second quarter of 2023. Driven by the strong growth of Value’s revenues at an annual rate of 193% to reach EGP 207m, on the back of profits from the securitization process, as well as the growth in the volume of loans issued during the second quarter of 2023. In addition, factoring activities under the umbrella of EFG Financial Solutions increased by an average Annually, by 90%, to reach 27 million pounds, and revenues from financial leasing activities increased at an annual rate of 11%, to 66 million pounds, during the same period of the current year. On the other hand, the revenues of “Tanmeya” decreased at an annual rate of 17% to reach 297 million pounds, due to the decline in sales.
On the other hand, revenues increased aiBANK to 888 million pounds, which is an annual growth rate of 58%, driven by an increase in net interest income at an annual rate of 43%, due to the large growth in the volume of yielding assets, in addition to an increase in net fees and commissions at an annual rate of 181% to 187 million pounds, driven by the growth of business activities. commercial finance.
In conclusion, Awad indicated that this performance reflects the strength of the group’s brand, which will enable it to take advantage of the attractive growth opportunities that come from the various activities and operating sectors of the group. On the other hand, Awad stressed that changing the name of the group to EFG Holding Group reflects the plans to transform into a comprehensive financial institution and emphasizes the diversity of the package of high-value innovative financial services and products offered by the group, which contributes to the consolidation of its leading position and enhances its ability to provide the best The levels of service to our customers and the expansion of the geographical spread of the group to include more markets in this ever-evolving world. The commitment and expertise of our employees remains the driving force behind the group’s success, and Awad thanked the company’s shareholders for their continued confidence in the group’s ability to create sustainable value.