EFG 2022 Q1 profit up 18% to Ksh.2.1 billion
An investment bank franchise in Frontier Emerging Markets (FEM), EFG Hermes Holding, has recorded an 18 percent net profit of Ksh.2.1 billion in its 2022 quarter one financial results.
The rise in the group’s profitability is attributable to higher revenues across its operations, posting a 55 percent increase to Ksh.11.9 million.
This, according to EFG Hermes Chief Executive Karim Awad, has been driven by solid performance across the Group’s line of businesses.
“EFG Hermes Holding’s diversified operations and holistic product offerings continue to drive our resilient performance and exceptional revenue growth, making us one of the fastest-growing companies in our footprint,” said Awad.
During the period under review, the group’s Asset Management revenues rose 7 percent to Ksh.564.4 million anchored on higher management fees due to increased total assets under management (“AUMs”).
EFG Hermes private equity revenues stood at Ksh.144.2 million compared to Ksh.181.1 million in the same period last year.
This was due to a high base in the 2021 quarter one that included additional management fees following the third close of the EFG Hermes Education Fund, which, if excluded, would have boosted the division’s revenues by 28 percent.
The Group’s operating expenses rose 49 percent to Ksh.7.5 billion supported by the consolidation of aiBANK’s operating expenses, valU’s higher operating costs, and an increase in the Group’s employee costs.
Non-Bank Financial Institutions (NBFIs) posted a 34 percent increase in revenues to Ksh.3.7 billion.
NBFI’s growth in the first quarter was predominantly driven by the Group’s microfinance player Tanmeyah, Buy-Now, Pay-Later (BNPL) fintech platform valU, and EFG Hermes Corp-Solutions’ factoring arm.
Early May this year, the EFG Hermes was recognized by the Financial Times and Statista as one of Africa’s fastest-growing companies in 2022.
EFG Hermes also doubles as the universal bank in Egypt.