2nd Quarter Results

12 Aug 2015 08:56



EFG HERMES REPORTS SECOND QUARTER 2015GROUP EARNINGS OF EGP125 MILLION; ON TOTAL OPERATING REVENUES OF EGP629 MILLION

http://www.rns-pdf.londonstockexchange.com/rns/8182V_-2015-8-12.pdf

http://www.rns-pdf.londonstockexchange.com/rns/8182V_1-2015-8-12.pdf

Cairo, August 12th, 2015 - EFG Hermes reported today Group net profit after tax and minority interest of EGP125 million in 2Q15 versus EGP188 million of reported income and EGP91 million of recurring income in 2Q14. Total assets stood at EGP84.5

Key Highlights

· The Group reported a net profit after tax and minority interest ("NPAT") of EGP125 million, down 33% Y-o-Y in 2Q15; but up 38% Y-o-Y in 2Q15 if we exclude the one-off gain of EGP97 million related to SODIC's stake sale booked in 2Q14 and thereby skewing the comparable figures for this quarter.

· The Group maintained its net operating profit margin above the 40% mark, at 41% in 2Q15. This was supported by the Commercial Bank's strong performance and the cost management on the Group's level.

· The Investment Bank reported a NPAT of EGP49 million, down 66% Y-o-Y in 2Q15. However, if we normalize the Investment Bank earnings by excluding the one-off gain related to the sale of SODIC's stake in 2Q14, the NPAT would be merely flat Y-o-Y; a strong performance in light of the very difficult capital market conditions across all operating markets.

· Investment Banking revenue rose to EGP72 million, up 63% Y-o-Y in 2Q15; however, fee and commission revenue declined 20% Y-o-Y to EGP234 million in 2Q15, mainly on the back of lower revenue generated from Asset Management (lower performance fees) and Brokerage (lower daily traded values).

· Total operating expenses declined 21% Y-o-Y to EGP174 million in 2Q15; on lower employee expenses. Employee expenses fell 28% Y-o-Y to EGP125 million. The ratio of employee expenses/operating revenue stood at 48% in 2Q15.

· Credit Libanais posted a net profit after tax of USD18.3 million, up 58% Y-o-Y in 2Q15; driven by healthy growth in NII, higher trading income and better cost management. The Bank's ROAE rose to double digits at 10.3% at the end of 2Q15.

For full report and financial statements, please click on the links on top of the page.

For further information:

Investor Relations Contacts

Email: investor-relations@efg-hermes.com

Head of Investor Relations

Hanzada Nessim

Email: hnessim@efg-hermes.com

Tel: +20 (0)2 35356502

Fax: +20(0)2 3535 7017

www.efg-hermes.com