Apr 14 2012 |
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EFG's profits down by 81 per cent
EFG-Hermes , Egypt's largest investment bank, reported a consolidated net profit of LE132.6 million in 2011, a decline of 81.3 per cent compared to the previous year. However, if the one-off capital gains from selling Bank Audi are deducted from the 2010 results, the year on year decline in earnings comes to just 13.7 per cent.The decline in results stemmed mainly from losses of LE77.7 million on the investment bank's front, compared to pretax earnings of LE160.2 million in the previous year. Losses resulted from a 33 per cent drop in fee and commission revenues, as brokerage, asset management and investment banking revenues declined due to muted trading volumes in the company's main markets, especially Egypt.
On the commercial bank front, Credit Libanais contributed LE252 million to EFG-Hermes Group bottom line profits. Commenting on the results, CI Capital said that top and bottom line figures reflect the prevailing political and economic situation in the region. "Had it not been for EFG's stake in Credit Libanais , EFG's earnings would have been in the red. This indeed confirms the management's vision of diversification towards a universal bank."
The bank has put on hold, at least for the remainder of the year, its plan to form an alliance with Qatar's Qinvest , a merger that would give EFG access to the Qinvest 's Sharia-complaint business.
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