EFG Hermes records 30% revenue growth in Q1 2021

EFG Hermes records 30% revenue growth in Q1 2021

EFG Hermes, a leading financial services corporation in Frontier Emerging Markets reported a 30% growth in its revenue in Q1 2021 to EGP 1.3 billion. This is according to its latest Q1 2021 financials, seen by Nairametrics.

The firm, which also operates in the Nigerian financial service sector attributed the growth to positive performances recorded across the majority of the Group’s lines of business in the first quarter of 2021.

Highlights

  • The Group’s NBFI platform recorded a revenue increase of 22% year-on-year to EGP 441 million and contributed 35% of EFG Hermes’ top line in Q1 2021.
  • Tanmeyah’s revenues grew 9% year-on-year to EGP 321 million on the back of it delivering a strong sales performance for the period.
  • The Group’s consumer finance business, valU, nearly tripled revenues Y-o-Y to EGP 56 million on the back of a strong portfolio expansion.
  • The Group’s Leasing and Factoring platform, EFG Hermes Corp-Solutions, recorded revenue increases of 30% and 110% year-on-year to EGP 56 million and EGP 8 million, respectively.
  • At EFG Hermes’ Capital Markets and Treasury operations, revenues increased by 45% year-on-year to EGP 389 million.
  • EFG Hermes’ net operating profit more than tripled to EGP 453 million in Q1 2021, driven by strong growth in revenues while expenses remained largely flat during the period.

The Group’s sell-side revenues increased by 29% year-on-year to EGP 296 million on the back of improved performances at its Investment Banking and Brokerage operations spurred by improved market conditions. Also, Brokerage revenues increased by 20% year-on-year to EGP 255 million, driven by strong results generated from its operations in Egypt for the period.

What EFG Hermes is saying

“While the challenges posed by the ongoing pandemic still abound, EFG Hermes continued to reap the benefits of the diversified business model it has built in recent years

This has helped us adapt swiftly to this evolving situation and supported us in delivering robust results across our business lines by end of the first quarter and maintaining our position as the leading financial services player in frontier emerging markets,” said EFG Hermes Holding Group CEO, Karim Awad.

“At our NBFI platform, Tanmeyah delivered record sales of EGP 490 million, the highest since its inception and a testament to the Group’s prowess in the microfinancing space. Moreover, we maintained valU’s growth trajectory as we continued to expand our partnerships with vendors across the nation and capitalize on Egypt’s ever-growing consumer base,” Awad added.

He also stated that the company’s Investment Banking division closed eight transactions across the ECM and DCM spaces, supporting its sell-side performance for the period and further cementing the firm’s position as the leading investment bank across the markets it operates in.

Outlook for the year

Speaking on the organisation’s outlook for the year, Karim Awad said, “The variables impacting our outlook for 2021 remain plentiful and difficult to predict.

Nonetheless, the Group will continue leveraging its comprehensive capacities across its operations and capitalizing on what we hope will be an improving external environment as consumers and businesses adjust to the COVID-19 situation, to deliver solid results and sustainable value for the remainder of the year.

As always, we will continue to remain cautious and monitor market developments, not only to ensure that we continue to generate value for all stakeholders but to guarantee the continued health and safety of our people, without whom our exceptional results and continued successes would not have been achieved.”

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