EFG Hermes has reported its first quarter (Q1) results for 2021, with revenues climbing a solid 30% year-on-year (y-o-y) to EGP 1.3bn.
The surge comes on the back of a positive performance across the majority of the Group’s lines of business in Q1 of 2021.
“While the challenges posed by the ongoing novel coronavirus (COVID-19) pandemic remain, EFG Hermes continued to reap the benefits of the diversified business model it has built in recent years,” said Karim Awad, CEO of EFG Hermes Holding Group, “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 Q1, and maintaining our position as the leading financial services player in frontier emerging markets.”
Leading growth for the quarter, the Group’s NBFI platform recorded a revenue increase of 22% y-o-y to EGP 441m, and contributed 35% of EFG Hermes’ top line in Q1 of 2021 driven by improved performance across its lines of business.
Tanmeyah’s revenues grew 9% y-o-y to EGP 321m, on the back of it delivering a strong sales performance for the period. Meanwhile, the Group’s consumer finance business, valU, nearly tripled revenues y-o-y to EGP 56m, 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% y-o-y to EGP 56m and EGP 8m, respectively. It was driven by higher arrangement fees and interest income in Q1 of 2021.
EFG Hermes’ sell-side revenues climbed 29% y-o-y to EGP 296m, on the back of improved performances at its Investment Banking and Brokerage operations in Q1 of 2021 spurred by improved market conditions.
The Group’s Investment Banking division more than doubled its revenue performance for the period, recording EGP 42m on the back of increased advisory fees from the successful close of eight transactions in Q1 of 2021 alone.
Meanwhile, Brokerage revenues increased 20% y-o-y to EGP 255m, driven by strong results generated from its operations in Egypt for the period.
Meanwhile, at the Group’s buy-side operations, revenues grew 22% y-o-y to EGP 129m, on the back of improved performance from EFG Hermes Asset Management. Revenues there surged 62% y-o-y to EGP 99m, due to higher management and incentive fees booked by FIM in Q1 of 2021.
“The variables impacting our outlook for 2021 remain plentiful and difficult to predict,” Awad said, “Nonetheless, the Group will continue leveraging its comprehensive capacities across its operations and capitalising 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.”
He noted that, as always, the company will continue to remain cautious and monitor market developments. This is not only to ensure that it continues to generate value for all stakeholders, but to guarantee the continued health and safety of its people, without whom the company’s exceptional results and continued successes would not have been achieved.”