EFG Holding announced today its financial results for 2023. The group recorded its highest-ever revenues of EGP14.7 billion ($312.9 million), up 34 percent year-on-year. EFG Holding attributes that growth to the stellar performance of its investment bank’s (EFG Hermes) sell-side and buy-side, Valu, and its commercial bank arm, aiBANK.
Record profitability
Operating expenses saw a 35 percent annual increase due to higher employee expenses.
In terms of profitability, net operating profits saw a 32 percent annual increase to EGP4.9 billion. Meanwhile, net profit saw a 47 percent year-on-year increase to EGP3.2 billion. This growth in profits was mainly driven by brokerage, asset management, Valu, and aiBANK’s growth in profitability. Besides, the group’s net profit after tax and minority interest reached EGP2.5 billion, a 39 percent annual increase. Meanwhile, its total assets reached EGP121.9 billion by the end of December 2023.
Commenting on this achievement, Karim Awad, group CEO of EFG Holding, stated: “With our unprecedented revenues and impressive profitability, we continue to set the standard in the financial industry in the MENA region, providing value and fostering growth across our diverse range of services.”
Investment banking success
EFG Hermes, EFG Holding’s investment banking arm, experienced a strong year, with revenues increasing annually by 32 percent to EGP8.1 billion. The group attributes that growth to its core operations, the sell-side and the buy-side
Sell-side revenues saw a 51 percent increase to EGP 3.8 billion, while buy-side revenues grew 75 percent year-on-year to EGP1.3 billion. This growth was mainly driven by robust growth in the asset management business, with the latter’s revenues surpassing the EGP1 billion mark compared to EGP553 million in 2022.
Meanwhile, private equity revenues saw a 44 percent annual increase to EGP246 million in 2023 due to higher management fees. EFG Holding’s investment bank net profit after tax and minority interest saw a 20 percent increase to EGP1.6 billion compared to EGP1.3 billion in 2022.
Non-bank growth
Revenues of EFG Finance, EFG Holding’s non-bank financial institutions (NBFI) platform, saw a 17 percent annual increase to EGP3 billion in 2023. The group attributes that growth to Valu, which drove the NBFI’s top and bottom line with revenues seeing a 78 percent annual increase to EGP1.2 billion.
EFG Corp-Solutions reported an increase in revenues across different operations. The leasing side of the business saw a 23 percent annual increase in revenues to EGP363 million. Meanwhile, the factoring side’s revenues increased by 45 percent year-on-year to EGP120 million. Moreover, net profit after tax and minority interest saw a 51 percent annual increase to EGP349 million due to Valu’s strong profits.
Commercial banking performance
aiBANK, EFG Holding’s commercial banking arm, experienced robust growth with reveues increasing 61 percent annually to EGP3.6 billion in 2023. Moreover, fees and commissions saw a three-fold increase due to higher trade finance activities
aiBANK’s net profit after tax more than doubled, recording a 117 percent annual increase to EGP1.1 billion. Of that profit, EFG Holding has a share of EGP591 million.
With Egypt’s market taking a pivotal turn following the recent currency floatation, EFG Holding is optimistic about future growth. Its robust balance sheet is strategically hedged to withstand the fluctuations in the EGP, Awad explained. Meanwhile, the groups expanding operations in the region yield considerable USD revenues annually, further supporing its growth.
“We are increasingly assured of our ability to not only weather challenges but also to drive sustained profitability and create value for shareholders, clients, and communities,” concluded Awad.
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