Efg-hold.gdr S Regulatory News (EFGD)

EFG HERMES REPORTS FULL YEAR 2015GROUP EARNINGS OF EGP461 MILLION; ON TOTAL OPERATING REVENUES OF EGP2,616 MILLION

Cairo, March 23rd, 2015 - EFG Hermes reported today Group net profit after tax and minority interest of EGP80 million in 4Q15 on Group operating revenues of EGP708 million. Total assets stood at EGP88 billion at the end of 4Q15.

http://www.rns-pdf.londonstockexchange.com/rns/9961S_-2016-3-23.pdf

http://www.rns-pdf.londonstockexchange.com/rns/9961S_1-2016-3-23.pdf

Key Highlights

· Operating in challenging markets characterized by economic and operational uncertainties, the Group continues to be profitable. The Group posted a net operating profit of EGP215 million, down 18% Y-o-Y on higher operating expenses; and reflecting a Group net operating profit margin of 30%. The Group reported a net profit after tax and minority interest ("NPAT") of EGP80 million, down 38% Y-o-Y;

· The Investment Bank managed to post operational growth in 4Q15, reporting a net operating profit of EGP81 million, up 2% Y-o-Y. This filtered into a net profit after tax and minority interest of EGP44 million, down 18% Y-o-Y, on higher provisions required;

· Fee and commission revenue, which represents 72% of the Investment Bank revenue in 4Q15, declined 15% Y-o-Y to EGP229 million, as higher revenue generated from Private Equity and the positive revenue contribution from the newly launched Leasing business failed to mitigate lower revenue generated from Brokerage, Asset Management and Investment Banking as markets weakened;

· The Investment Bank operating expenses rose 9% to EGP238 million, on the back of higher employee expenses. An increase that is considered limited, given a 5% Y-o-Y headcount expansion, an EGP devaluation which impacted employee expenses denominated in USD pegged currencies, and inflationary pressures;

· Credit Libanais posted a net profit after tax of USD12.9 million, down 33% Y-o-Y; pressured by a number of one-off charges negatively impacting revenues and expenses during the quarter. Loans/deposits stood at 35.3% at the end of the quarter.

· The Group reported a net operating profit and a NPAT of EGP995 million and EGP461 million, respectively. If we normalize earnings by excluding the one-off gain of EGP97 million booked in FY14 and related to SODIC's stake sale, the Group net operating profit and NPAT would be higher 3% Y-o-Y and 5% Y-o-Y, respectively. This comes as a testament to our ongoing commitment to deliver sustainable results despite weaker markets and challenging macro-economic environment;

· The Investment Bank reported a NPAT of EGP200 million, down 34% Y-o-Y. On an adjusted basis and after excluding the one-off gain of EGP97 million related to non-core asset sale of SODIC in FY14, the Investment Bank NPAT would be marginally down 3% Y-o-Y in FY15, a strong performance given subdued MENA markets;

· Fees and commissions declined 13% Y-o-Y to EGP828 million in FY15, as weak markets in 2015 overshadowed the operational improvement in some core businesses. The improvement in Investment Banking revenue combined with additional revenue generated from the Leasing business failed to offset the weakness in revenues generated from Brokerage, Asset Management and Private Equity;

· The Investment Bank operating expenses declined 3% Y-o-Y to EGP724 million, as the firm remained committed to its cost optimization strategy that enabled it to sustain a lean cost base despite weak markets in 2015;

· Credit Libanais reported a net profit after tax of USD66.6 million in FY15, up 4% Y-o-Y. The improvement in its profitability was supported by net interest income growth and contained expenses.

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