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EFG delivers "exceptional" results

EFG-Hermes has delivered "exceptional" results for 2006, showing a near 50% increase in total revenues, compared to last year, the regional investment bank has revealed.

The Egypt-based finance house announced that its net profit after tax and minority interest had increased twofold to reach EGP 701.9m (US$123m). The investment bank's net profit (excluding net income from Banque Audi) amounted to EGP 498.6m (US$87m), an increase of 42.4% compared to 2005.
In a statement EFG said that the successful completion of two capital increases in excess of US$1bn, which increased the institutional shareholder base, helped to "curb the volatility of the share price", which ended at EGP 40 (US$7) a share, while market capitalisation increased US$2.8bn, up from EGP 10.4bn (US$1.8bn) at year-end 2005.

"The fiscal year ending 31st December 2006 was a transformational year for EFG-Hermes on the strategic, operational, performance and market perception levels," said Yasser El Mallawany, co-chairman and CEO of EFG-Hermes.

"Volatility in each of the markets we operate in across the region presented a challenge, but the company has ended the year on a positive note with a growth in business; the implementation of regional expansion; diversification plans on track and a stable share price," he added.

The bank is midway through a regional expansion drive, having already established a significant presence in the UAE, and with existing transaction mandates in investment banking and asset management in Saudi Arabia, that it said would shortly be followed by brokerage activities.

It called the addition of a strategic stake in Banque Audi to the group's investment portfolio a "major boost", adding it had "evened-out the cyclicality" of revenues generated from the core business.

"In the UAE, the impact we have made on what is a fiercely competitive market in a relatively short period of time is encouraging to our continued plans for regional growth - and this year we look forward to commencing our activities in what is another exciting market - Saudi Arabia," Hassan Heikal, co-chairman and CEO added.

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