EFG Holding’s Q2 2023 revenue jumps 51% to EGP3.1bn

EFG Holding posted higher quarterly revenue and profit, buoyed by broad-based growth across the investment bank (EFG Hermes), the commercial bank (aiBANK), and the non-bank financial institutions platform (EFG Finance).

The group’s revenues in the three months to June 30 surged by 51 per cent year-on-year (YoY) to EGP3.1bn while its net profit after tax and minority interest rose by 20 per cent to reach EGP405m.

“Our performance for the period continues to reflect our commitment to operational excellence across the markets we operate in, which saw our divisions continue to deliver on our strategies on both the buy- and sell-side at EFG Hermes,” said Karim Awad, EFG Holding’s group CEO.

“This performance stands testament to the value creation possibilities from the Group’s comprehensive and diverse business model.”

EFG Hermes

EFG Hermes continued to build on its success at the start of the year and successfully concluded two equity transactions and three debt transactions worth an aggregated value of $1.1bn, further cementing its position as the advisory house of choice.

The investment division acted as a joint book-runner on the initial public offering (IPO) of ADNOC L&S on the Abu Dhabi Securities Exchange and was a joint global coordinator on the IPO of Al Ansari Financial Services on the Dubai Financial Market.

EFG Hermes ‘revenue rose by 61 per cent YoY to reach EGP 1.6bn in Q2 2023 compared to EGP989m a year ago.

The growth in the second quarter was supported by a 13 per cent YoY jump in sell-side revenue to EGP797m on the back of a 57 per cent YoY increase in brokerage revenue to EGP645m during the period under review.

Further, the division’s revenue was buoyed by a 286 per cent YoY increase in holding and treasury activities to EGP530m in Q2 2023.

EFG Finance

EFG Finance continued to focus on introducing new and innovative financial service offerings, as well as partnering with various players in the second quarter of 2023.

The non-bank financial institutions platform’s (NBFIs) revenues reached EGP620m in the quarter, a 23 per cent increase, thanks to a 193 per cent YoY surge in valU’s revenue to EGP207m.

Similarly, EFG Corp-Solutions posted revenue of EGP27m in Q1 2023, up 90 per cent as well as an 11 per cent increase in leasing revenues to EGP66m. However, Tanmeyah’s revenues plunged 7 per cent YoY to EGP297m on lower sales.

With a footprint spanning 12 countries across four continents and a capital base of EGP25.1bn, the banking group successfully rebranded from EFG Hermes to EFG Holding in May.

Awad said the new brand identity reflects the bank’s evolution into a universal financial powerhouse and further underscores the breadth and depth of its portfolio of value-accretive financial solutions.

aiBANK

Meanwhile, aiBANK’s revenues soared by 58 per cent YoY to EGP888m, driven by a 43 per cent increase in net interest income due to an increase in interest earnings assets. The bank’s performance was further supported by a record 181 per cent YoY increase in net fees and commission income to EGP187m in Q2 2023, as trade finance activities continue to pick up.

Read: Shining the spotlight on EFG Holding’s rebranding and growth journey