EFG Hermes said Tuesday that it plans to exit its operations in Pakistan and Jordan as part of the Egyptian universal bank’s broader strategy to streamline its operations, improve its return on equity metric and better position itself amid a global economic downturn.
“We took the decision to pursue exit options from two markets namely Pakistan and Jordan and we are currently in the advanced stages of agreeing on an exit from a third market,” EFG Hermes said in a statement.
The bank does not expect the exit from Pakistan and Jordan to have any material impact on its revenues as the markets’ combined revenues represented less than 1% of “our Group revenues in 9M 2022 and in the full year of 2021.” Pakistan and Jordan also accounted for 2% and 3%, respectively, of EFG Hermes’ brokerage revenues over the periods under review.
EFG Hermes will “continue to indirectly execute trades, provide select research coverage and pursue investment banking activities in these markets” after exiting the markets. The frontier and emerging markets champion said it received a binding offer for its operations in Jordan and an expression of interest in Pakistan—both potential exits are at a preliminary stage.
The Cairo-based investment bank will conduct strategic reviews of its operations in 2023 but does not “expect to exit any other markets in the coming 12 months.”
