Last checked at 27 Mar 2018 08:53
http://www.rns-pdf.londonstockexchange.com/rns/0401J_-2018-3-27.pdfhttp://www.rns-pdf.londonstockexchange.com/rns/0401J_1-2018-3-27.pdfEFG HERMES REPORTS FULL YEAR 2017
GROUP EARNINGS FROM CONTINUED OPERATIONS OF EGP1.2 BILLION; ON OPERATING REVENUE OF EGP3.6 BILLION
Cairo, March 27th, 2018 - EFG Hermes reported today net profit after tax and minority interest from continued operations of EGP236 million in 4Q17 and operating revenue of EGP837 million in 4Q17. The Group total assets stood at EGP41.3 billion at the end of FY17.
Key Highlights
FY2017
· The Group made progress towards its strategic goals of building a financial services platform that caters to different groups of clients and covers the MENA and Frontier regions. During the year, we continue to grow our franchise; be closer to our clients by expanding into Pakistan, Kenya and opening offices in USA and UK; and expand our spectrum of products to include structured products, merchant banking activities and installment sale services (ValU). This translated into Group operating revenue of EGP3.6 billion versus EGP1.3 billion, up 186% Y-o-Y in FY17, after adjusting for the one-off fx-gain in FY16;
· Fee and commission revenues increased 84% Y-o-Y to EGP2.3 billion in FY17. Excluding fx-gains booked on business lines in FY16, fees and commissions would be 111% higher Y-o-Y. This strong set of results reflect healthy growth in revenues delivered by the traditional businesses in addition to progress made in new initiatives, while maintaining - a leadership position in markets we trade, top rated analysts, an award winning asset manager and a world-class Investment Banking division leading Thomson Reuters Middle East ECM fees league tables in FY17;
· Adjusting for fx-gains, capital markets & treasury operations revenue increased 605% Y-o-Y to EGP1.4 billion in FY17. The increase in revenues is driven predominately by: (i) a healthy growth in treasury operations, (ii) additional revenue generated from Merchant Banking activities (which was introduced in 2017); (iii) a one-off gain of EGP348 million from the sale of Credit Libanais shares; and (iv) a number of capital gains;
· Group operating expenses rose 12% Y-o-Y to EGP2.1 billion in FY17, on higher salaries and higher all operating expense categories and despite lower discretionary compensation. We continued to achieve our commitment to deliver employee expenses/ operating revenues ratio below the 50% mark, concluding the year with a 39%. Additionally, if we exclude the gain of EGP348 million from selling Credit Libanais's shares in FY17, employee expenses/ operating revenues would come at 43%;
· While our headline figures suggest a decline in profits, if we exclude the one-off fx-gains in FY16, the Group operating profit and the Group net profit after tax and minority interest would be EGP1.5 billion and EGP1.2 billion versus a loss of EGP618 and EGP1.2 billion in the comparable periods, respectively;
· In FY17, we continued to divest the remaining stake in Credit Libanais post the sale of the majority stake in the Bank and its subsequent deconsolidation in 2Q16. In FY17, we offloaded an additional 5.7% of the Bank's shares, thus leaving the Firm with 9.5% stake at the end of the year.
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
Group Head of IR, Budgeting and Reporting
Hanzada Nessim
Email: hnessim@efg-hermes.com
Tel: +20 (0)2 35356502
www.efg-hermes.com