EFG Hermes Holding recorded a 55% year-on-year revenue increase to Sh11.4 billion (EGP 1.9 billion) for the first quarter of 2022, driven by strong performance across its business lines. Net profits after tax and minority interest rose 18% to Sh2 billion (EGP 345 million), according to the group's latest financial results.
Group CEO Karim Awad highlighted the impact of operational diversification and expanded product offerings, stating, "Our Non-Bank Financial Institutions (NBFI) platform is responding to consumer and corporate needs during high inflationary times. Net profits for the platform, together with results generated following the majority-stake acquisition of a commercial bank, generated half of our Group’s net profits after tax and minority."
The Investment Banking division closed five transactions valued at USD 301 million, including Egypt's first cosmeceutical IPO and two regional M&A deals. The Brokerage division maintained its top ranking in Cairo, Nairobi, and Dubai, contributing to a 61% year-on-year increase in sell-side revenues to EGP 494 million.
Key performance drivers included a 157% surge in revenues from valU, the group's BNPL fintech platform, reaching EGP 143 million. Tanmeyah, the microfinance arm, reported EGP 395 million in revenues, while EFG Hermes Corp-Solutions' factoring business grew 118% to EGP 18 million. However, leasing revenues declined 21% to EGP 45 million.
The NBFI platform saw a 34% revenue increase to EGP 601 million, fueled by Tanmeyah, valU, and the factoring arm. Capital market operations faced a 24% contraction to EGP 294 million, attributed to lower net interest income following the aiBANK acquisition. Operating expenses rose 49% to EGP 1.2 billion, driven by aiBANK consolidation and increased staff costs.
Awad emphasized the group's focus on expanding in the GCC and strengthening its universal banking model in Egypt. The firm was recognized as Africa's 55th fastest-growing company by the Financial Times and Statista in 2022, marking its fourth-fastest growth in Egypt among financial services institutions.
