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.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.