EFG-Hermes, a leading emerging and emerging financial and investment institution, released results for the third quarter of 2018.
The Group's total revenue was 1.03 billion euros, an annual increase of 24%, despite the simultaneous slowdown of the summer season and the holiday of Eid al-Adha. If unpaid salaries were excluded, revenue would increase by 64% in the third quarter of 2018.
Net profit after taxes and minority interests reached 279 million EEA during the same period, an annual growth of 18%.
The company's business results in the third quarter of 2018 reflect an increase in company revenues from fees and commissions at an annual rate of 79%, to reach LE 847 million in the third quarter of 2018 due to the unfulfilled performance of most operational segments.
The non-banking finance sector continued to generate strong growth rates in the third quarter of this year, with revenue of € 286 million, an annual increase of 81%. Tamaia microfinance is the main contributor to this growth. In view of this, sector revenues accounted for 28% of the Group's total revenue during the third quarter of this year, compared to 19% in the same period of 2017.
In the third quarter of 2018, IPO, brokerage and brokerage revenues reached 440 million euros, an increase of 128% compared to the same period last year, with the support of 864% Various Investment Jobs only in the third quarter.
Karim Avad, Chief Executive Officer of EFG-Hermes, said: "We look forward to continuing with these strong effects in the last months of 2018," he said, praising outstanding results and a positive impact on revenue growth and net profit for the third quarter of 2018 .
Avad praised the success of the promotion and insurance sector in the implementation of a record number of investment transactions on the local and regional market in the third quarter of 2018, despite the challenges in which markets were in the same period. In the Middle East and North Africa by market share fees and commission for the seventh quarter in a row.
On the other hand, revenue from the asset management and direct investment sector reached 121 million euros in the third quarter of 2018, which is unchanged compared to the same period last year, with an increase of 11% in the revenues of the asset management sector. Reducing the positive impact of growth. The FDI sector was remarkable for the same period of 2017 due to increased management fees for Vertek.
Treasury and capital market revenues were 184 million euros in the third quarter of 2018. If, in comparison, 2017, exceptional salaries are excluded, trading and treasury instruments continue to support the growth in income from operations in the capital and treasury instruments market.
The company has kept the ratio of staff costs to total revenue of 42%, in line with the Department's goal of reducing employee support to below 50% of total operating revenues.
Avad added that this company continues to benefit from the diversification strategy. Non-bank finance revenues showed significant growth and continued to increase their contribution to the Group's total revenues, stressing that although the market has not yet achieved the real value and fundamentals of sector growth, In implementing this strategy targeting the expansion of new activities in the non-banking financial sector.
Avad said he expects the recent factoring activity to deliver positive results in the coming period.
Net operating profit of EFG-Hermes amounted to 348 million EEA during the third quarter of 2018. Net profit after taxes and minority interests amounted to 279 million EEA, which represents an increase of 18% compared to the same period of 2017.
In the investment banking sector, net profit after taxes and minority interests amounted to 222 million LE during the third quarter of 2018, with an annual growth rate of 6%, despite comparisons with exceptional results over the previous year, which was testified to exceptional profits. And increased revenues from fees and commissions.
Net profit after tax and minority interest in the non-banking sector reached 57 million euros in the third quarter of this year, an increase of more than double (106%) compared to high performance in the sector's income.
EFG-Hermes continues to sell the remaining stake in Credit Libanais Bank, where 0.5% of the Bank's shares were sold in the third quarter of 2018, leaving the company at the end of the same period to leave 8.8%.
Avad concluded that the company is expected to expand the offer of non-bank financial products and services in the next year, given the strong base of the sector and its positive response to the company's profitability in a sustainable way. Activities. Avad pointed to the focus of management on geographical expansion, given that the company expects consolidation of its position in the market of Nigeria and use its presence in the largest economies in Africa as a window for exploiting investment opportunities in the markets of West Africa. Avad stressed that the department is also exploring opportunities to invest in markets with potential growth potential, focusing on the markets of Southeast Asia.