EFG Holding reported higher Q2 2023 revenue and profit, driven by broad-based growth across the investment bank (EFG Hermes), the commercial bank (aiBANK), and the non-bank financial institutions platform (EFG Finance).
The banking group’s revenues jumped by 51% year-on-year (y-o-y) in the quarter to EGP 3.1 billion while its net profit rose by 20% to reach EGP405 million. EFG Holding’s operating profit in the three months to June 30 reached EGP 988 million, up 46% y-o-y despite a 53% increase in group operating expenses.
“Our performance for the period continues to reflect our commitment to operational excellence across the markets we operate in, which saw our divisions continue to deliver on our strategies on both the buy- and sell-side at EFG Hermes,” said Karim Awad, EFG Holding’s group CEO.
“Moreover, I am also thrilled with the performance of EFG Finance and aiBANK as they continue to reap the rewards of increased demand for their diverse suite of financial solutions and banking services.”
EFG Hermes
EFG Hermes continued to build on its success at the start of the year and successfully concluded two equity transactions and three debt transactions worth an aggregated value of $1.1 billion, further cementing its position as the advisory house of choice.
The investment division acted as a joint book-runner on the initial public offering (IPO) of ADNOC L&S in Abu Dhabi and was a joint global coordinator on the IPO of Al Ansari Financial Services on the Dubai Financial Market.
EFG Hermes ‘revenue rose by 61% y-o-y to reach EGP 1.6 billion in Q2 2023 compared to EGP 989 million a year ago.
The growth in the second quarter was supported by a 13% increase in sell-side revenue to EGP 797 million on the back of a 57% surge in brokerage revenue to EGP 645 million during the period under review.
Further, the division’s revenue was buoyed by a 286% y-o-y increase in holding and treasury activities to EGP 530 million in Q2 2023.
EFG Finance
EFG Finance continued to focus on introducing new and innovative financial service offerings, as well as partnering with various players in the second quarter of 2023.
The non-bank financial institutions platform’s (NBFIs) revenues reached EGP 620 million in the quarter, a 23% increase, thanks to a 193% y-o-y surge in valU’s revenue to EGP 207 million.
Similarly, EFG Corp-Solutions posted revenue of EGP 27 million in Q1 2023, up 90% as well as an 11% increase in leasing revenues to EGP 66 million. However, Tanmeyah’s revenues plunged 7% y-o-y to EGP 297 million on lower sales.
With a footprint spanning 12 countries across four continents and a capital base of EGP 25.1 billion, the banking group successfully rebranded from EFG Hermes to EFG Holding in May.
Awad said the new brand identity reflects the bank’s evolution into a universal financial powerhouse and further underscores the breadth and depth of its portfolio of value-accretive financial solutions.
aiBANK
aiBANK’s revenues soared by 58 % y-o-y to EGP 888 million, driven by a 43% increase in net interest income due to an increase in interest earnings assets. The bank’s performance was further supported by a record 181% y-o-y increase in net fees and commission income to EGP 187 million in Q2 2023, as trade finance activities continue to pick up.
“aiBANK has seen remarkable double-digit revenue growth as it continues implementing the roll-out of its transformation strategy. This performance stands testament to the value creation possibilities from the group’s comprehensive and diverse business model,” said Awad.
