EFG Holding, a financial institution with a universal bank in Egypt and a leading investment bank in the Middle East and North Africa (MENA), announced today its financial results for the second quarter of 2024, reporting a 63 percent year-on-year surge in revenues to EGP5.1 billion ($103 million).
EFG Holding attributes its strong second-quarter performance to the investment banking division’s strong revenues in addition to growth in the group’s other core lines of business.
Net profits surge
The group’s net profit after tax and minority interest rose 95 percent annually to EGP791 million in Q2 of 2024. Meanwhile, its operating expenses increased 59 percent to EGP3.4 billion due to higher employee expenses amid the currency devaluation’s impact, high inflation levels, and business growth. Still, the ratio of employee expenses to operating revenues reached 42 percent during the second quarter.
“In an era of unprecedented economic and geopolitical turbulence, marked by widespread inflation, currency devaluation, and volatile global markets, we not only navigated these challenges but also emerged stronger,” stated Karim Awad, group CEO of EFG Holding.
Investment bank reports record high revenues
EFG Hermes, EFG Holding’s investment bank, saw its investment banking division report all-time high revenues together with brokerage revenues surging. This increased the sell-side revenues 3.5 fold annually to EGP2.9 billion, raising EFG Hermes’ revenues 74 percent annually to EGP2.8 billion in Q2 of 2024.
In addition to higher buy-side revenues, which rose 46 percent to EGP384 million, the group countered losses in its holding and treasury activities. Moreover, EFG Hermes’s net profit after tax and minority interest rose 72 percent annually to EGP305 million.
EFG Finance net profits jump
EFG Finance, EFG Holding’s non-bank financial institutions (NBFI) platform, also reported a strong revenue growth of 70 percent to EGP1.1 billion. In addition, all the platform’s lines of business posted annual growth including Valu, Tanmeyah, and EFG Corp-Solution’s Leasing business.
EFG Finance’s net operating profit jumped 167 percent year-on-year to EGP383 million in Q2 of 2024.
“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,” Awad added.
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aiBANK continues to outperform
aiBANK, the group’s commercial bank, also continued to outperform, with revenues soaring 39 percent annually to EGP1.2 billion, driven mainly by higher net interest income on the back of loan book growth and enhanced net interest margins. aiBANK’s operating expenses rose 16 percent to EGP566 million due to higher employee expenses and other operating expenses, as inflation continues to remain high. The bank’s net profit after tax climbed 55 percent to EGP426 million.
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