Jun 15 2011 |
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Egypt's EFG Hermes 1Q Net Pft Slumps 93% As Unrest Hits Invest Bk Revs
Wednesday, Jun 15, 2011
CAIRO (Zawya Dow Jones)-- EFG Hermes (HRHO.CI), Egypt's largest publicly-traded investment bank, Wednesday said net profit fell 93% in the first quarter of the year as the impact of the country's revolution weighed heavily on revenues.
EFG , in an emailed statement, said net income for the first three months of the year amounted to 36 million Egyptian pounds ($6 million). The firm made a net profit of EGP483.6 million in the year ago quarter, according to Zawya.com.
Group revenue slumped 62% year-on-year to EGP410.5 million, the investment bank reported. Had it not been for the sale of Lebanon's Bank Audi last year, revenue would have increased by 17%, EFG said.
EFG -Hermes attributed the substantial losses on the investment banking side to "recent political events and regional uncertainty" -- a reference to the three week uprising that forced Egypt's stock exchange to close for nearly two months and curtailed business activity.
"We know how to manage for leaner times, and this is clear in the cost-cutting measures we have implemented to help deliver profitability at both the Investment and Commercial banking arms. We will continue to trim expenses, but not so much that we cannot efficiently respond to the inevitable uptick in markets," he added.
EFG shares last traded Wednesday down 0.6% at EGP21.90 in a broadly negative overall market.
-By Matt Bradley of Dow Jones; +201-8875 0572, matt.bradley@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
15-06-11 1157GMT
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