EFG-Hermes reports 7.8 per cent fall in profits

16 November 2009

Decrease in fee and commission income hits Egyptian bank

EFG-Hermes, an Egyptian investment bank, has reported a 7.8 per cent fall in third-quarter profits. It made a profit of £E150.7m ($27.6m) in the three months to the end of September, compared with £E163.4m in the same period of 2008.

The bank said the drop in profits was the result of a decrease in fee and commission income of 57.7 per cent to £E179m. This was the result of “market conditions over the year as volumes and valuations declined,” according to a bank statement.

Total revenues fell 27.9 per cent to £E346m, compared with the same period of 2008.

The bank said it was beginning to see signs of a recovery in the third quarter. “The third quarter of 2009 is the first quarter since the financial crisis that witnessed net cash inflows, a trend that continued into the fourth quarter of 2009,” according to the statement.

Total assets under management rose to $4.3bn, from $4bn at the end of the June.

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