Efg-hold.gdr S Regulatory News (EFGD)

EFG HERMES REPORTS THIRD QUARTER 2017GROUP EARNINGS FROM CONTINUED OPERATIONS OF EGP237 MILLION; ON OPERATING REVENUE OF EGP834 MILLION

Cairo, November 16th, 2017 - EFG Hermes reported today net profit after tax and minority interest from continued operations of EGP237 million in 3Q17, up from EGP41 million in 3Q16. Operating revenue rose 184% Y-o-Y to EGP834 million in 3Q17. The Group total assets stood at EGP24.6 billion at the end of 3Q17.

http://www.rns-pdf.londonstockexchange.com/rns/6804W_-2017-11-16.pdf

http://www.rns-pdf.londonstockexchange.com/rns/6804W_1-2017-11-16.pdf

Key Highlights

· Third quarter this year marks another good quarter for the Group as the development of our business activities, backed by the robust ramping up of the NBFIs and the 50% investment in Frontier Investment Management Partners Ltd. "FIM", continued to be the main drivers for growth. The Firm reported a net operating profit of EGP274 million in 3Q17, up 263% Y-o-Y in 3Q17, that filtered into a Group net profit of EGP237 million in 3Q17, up 476% Y-o-Y;

· Revenues generated from all operations improved Y-o-Y, with EFG Hermes reporting a Group revenue of EGP834 million, up 184% Y-o-Y in 3Q17. This came in spite of the inherent seasonality of our business during the third quarter (with the slow summer season and a number of religious/public holidays);

· Fee and commission revenue rose 120% Y-o-Y to EGP473 million in 3Q17, with all three business verticals reporting an improvement in revenue further demonstrating continued progression in our results. The sell-side business grew during 3Q17, with Brokerage revenue rising 101% Y-o-Y to EGP172 million and Investment Banking revenue adding 58% Y-o-Y to EGP21 million. Similarly, the buy-side saw Asset Management revenue surge 199% Y-o-Y to EGP89 million and Private Equity revenue rose 95% Y-o-Y to EGP33 million. Moreover, the NBFI platform revenues continue to grow, with Leasing revenue increasing 178% Y-o-Y to EGP86 million while the micro-finance player "Tanmeyah" recorded an 86% Y-o-Y increase in its revenues to reach EGP72 million;

· Supported by treasury operations, merchant banking activities and non-recurring items, capital markets and treasury operations continued to deliver strong results, reporting a revenue of EGP361 million, up 357% Y-o-Y in 3Q17;

· The management remained focused on maintaining its employee expenses/ operating revenues below the 50% mark, at 42% in 3Q17; despite the challenges of growing its business operations in new ventures and territories. Operating expenses rose 156% Y-o-Y to EGP560 million in 3Q17; mainly on the consolidation of FIM, and higher expenses post the EGP floatation resulting from overseas operations and USD expenses in Egypt, and the depreciation of the Leasing business.

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

www.efg-hermes.com