Wednesday, May 22, 2013
CAIRO (Zawya Dow Jones)--EFG Hermes, Egypt's largest investment bank, said Wednesday its first quarter net profit rose 27% on year as fees and commission revenues rose.
EFG's net profit rose to 98 million Egyptian pounds ($14 million) from EGP77 million pounds in the year earlier period, the bank said in an emailed statement Wednesday.
EFG's total revenue for the quarter rose 14% to EGP494 million. The growth was driven by a 17% growth in investment banking revenue to EGP194 million, "reflecting rising contributions from all four fee-earning lines of business." Fee and commission revenues rose 26% on year to EGP158 million in the first quarter, the statement showed.
The commercial bank side of the business contributed EGP300 million in the quarter; 12% higher year-on-year, EFG said.
"Revenue generation remains a top focus for all divisions with an increasing focus on regional growth opportunities while continuing to preserve our market share in our home market of Egypt," Karim Awad, co-chief executive officer of the investment bank said in the statement.
The bank, which is implementing a comprehensive cost-cutting plan, said it "remains committed to its target of reducing its cost base to c. EGP500 million in 2014 from an estimated EGP780 million this year. This will ensure the Investment Bank's ongoing ability to perform amid unpredictable market conditions," Mr. Awad said.
EFG said it was awaiting approval from Egyptian regulators on its proposal to issue one bonus share for every five shares held by its shareholders in order to raise capital to EGP2.87 billion.
EFG currently has operations throughout the Arab world in Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, United Arab Emirates, and Syria.
EFG Hermes shares are trading 0.7% higher at EGP9.35 Wednesday.
Write to Reem Abdellatif at reem.abdellatif@dowjones.com
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(END) Dow Jones Newswires
22-05-13 1050GMT
