Egypt’s EFG Holding reported that its net profit jumped by 95% year-on-year (YoY) to EGP 791 million in Q2 2024 and more than doubled in the January-June period to EGP 2.6 billion, driven by growth across the group’s various sectors, including investment and commercial banking.
Karim Awad, Group CEO of EFG Holding, stated that despite facing an era of unparalleled economic and geopolitical turbulence, the banking group has not only navigated a challenging environment but it has come out even stronger.
EFG Hermes, the group’s investment banking division, reported record revenues together with brokerage revenues shooting up, taking the sell-side revenues roughly 3.5 times YoY up to EGP 2.9 billion, lifting overall revenues 74% YoY to EGP 2.8 billion in 2Q24.
Net profit after tax and minority interest of the investment bank rose 72% YoY to EGP 305 million.
EFG Finance, the non-bank financial institutions (NBFI) platform, registered a 70% increase in revenues to EGP 1.1 billion, as all the platform’s lines of business posted YoY growth, particularly Valu, Tanmeyah and EFG Corp-Solution’s leasing business.
The division’s net profit jumped 210% YoY to EGP 267 million despite a 138% increase in tax.
aiBANK, EFG Holding’s commercial bank business, reported a 39% YoY increase in revenue to EGP 1.2 billion, supported by higher net interest income on the back of loan book growth and enhanced net interest margins.
The commercial bank’s net profit after tax rose by 55% YoY to EGP 426 million (of which the group’s share is EGP 219 million) as revenue growth outpaced the growth in expenses.
“Looking ahead, our focus is on driving steady and sustainable long-term growth, cementing our market position, and improving operational efficiency for the benefit of driving unparalleled value for our stakeholders,” added Awad.
EFG Holding said its operating expenses jumped 59% YoY to EGP 3.4 billion on higher employee expenses and operating expenses across the three verticals to reflect the full impact of the devaluation, persistently high inflation levels, and business growth.
The banking group’s commercial banking division posted EGP 426 million in net profit, a 55% YoY as revenue growth outpaced the growth in expenses.
