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\u201cMeanwhile, at our NBFIs platform, we achieved remarkable progress on all strategic initiatives and delivered impressive growth across all business lines, especially at valU, our innovative Buy-Now-Pay-Later (BNPL) fintech platform. valU successfully reached an outstanding portfolio size exceeding the EGP 1 billion mark and has continued to play a pivotal role in the Group\u2019s efforts to further penetrate Egypt\u2019s thriving fintech space.\u201d Awad added.<\/p>\n
EFG\u2019s NBFIs platform delivered a 62 percent year-on-year revenue increase to 483 million pounds in the second quarter of 2021. Its microfinance company, Tanmeyah also recorded a revenue increase of 60 percent year-on-year to 367 million pounds driven by increased sales and a growing loan portfolio.<\/p>\n
\u201cMeanwhile, growing contributions from the Group\u2019s leading Buy-Now Pay-Later fintech platform, valU \u2013 which successfully tripled its revenues Y-o-Y to EGP 63 million \u2013 also supported the NBFIs platform in 2Q21.\u201d EFG statement read.<\/p>\n
The NBFIs platform\u2019s factoring revenues grew nearly three-fold to 11 million pounds, primarily due to an expansion in its client portfolio in the second quarter. However, its leasing revenues declined 11 percent year-on-year to 42 million pounds, as the comparable quarter included 7 million pounds of securitisation gains.<\/p>\n
At the EFG\u2019s Investment Bank, sell-side revenues increased by 69 percent year-on-year 493 million pounds driven by solid performance from the Investment Banking division as well as Brokerage in the second quarter of the year.<\/p>\n
Investment Banking revenues jumped 176 percent year-on-year to 161 million pounds driven by higher advisory fees generated from a surge in deal count. Brokerage revenues surged 42 percent year-on-year to 333 million pounds driven by solid revenues generated across the majority of markets where the division operates.<\/p>\n
Parallel to this, buy-side revenues increased by 70 percent year-on-year to 159 million pounds due to a strong performance from the Asset Management division in the second quarter of 2021.<\/p>\n
Revenues at the Group\u2019s Asset Management operations more than doubled to 142 million pounds on account of higher management and incentive fees booked by FIM. The division\u2019s solid performance offset the 39 percent year-on-year drop to 17 million pounds in the second-quarter revenues at the Private Equity division, which came due to lower assets under management following the Vortex III exit in September 2020.<\/p>\n
At EFG Hermes\u2019 Capital Markets and Treasury operations, revenues fell by 27 percent year-on-year to 475 million pounds due to exceptionally strong unrealized gains in the comparable period last year.<\/p>\n
\u201cSince the start of the year, our NBFIs platform achieved multiple operational milestones, most notable of which includes Tanmeyah\u2019s loan portfolio reaching EGP 3.3 billion, its highest level since inception.\u201d Awad noted.<\/p>\n
As of May 2021, Awad further said EFG Hermes\u2019 factoring business was ranked in first place with a market share of 20.4 percent and an outstanding portfolio that exceeded 1 billion pounds.<\/p>\n
\u201cParallel to this, our Investment Banking division delivered a remarkable performance in 2Q21, successfully advising on eight transactions during the quarter worth an aggregate value of $946 million.<\/p>\n
\u201cOur robust pipeline is testament to the firm\u2019s ability to weather the challenging external environment and provide outstanding advisory services to its local and regional client base,\u201d he stated.<\/p>\n
EFG Hermes\u2019 second-quarter net operating profit grew by 33 percent year-on-year to 630 million pounds as revenue growth outpaced that of expenses during the period. Its operating expenses increased by 13 percent year-on-year to 981 million pounds due to higher employee expenses \u2013 primarily at Tanmeyah \u2013 in the second quarter.<\/p>\n
Employee expenses as a percentage of revenues stood at 45 percent in the second quarter, well below the firm\u2019s 50 percent threshold.<\/p>\n
EFG recorded a 24 percent year-on-year growth to 406 million pounds in net profit after tax and minority interest. Bottom-line growth was primarily driven by improved profitability at the Group\u2019s NBFIs platform in the second quarter.<\/p>\n
\u201cHeading into the second half of the year, we remain cognizant of the potential for a new wave of COVID-19-related challenges and geopolitical headwinds which impact the pace of economic recovery across global markets.\u201d concluded Awad.<\/p>\n
\u201cNevertheless, we take comfort from our increasingly diversified business operations and the agility of our people, which allow us to continue capitalising on new opportunities and carry our growth momentum forward despite the challenges,\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Egypt\u2019s EFG Hermes reported a 20 percent year-on-year growth in revenues for the second quarter of the year to 1.6 billion Egyptian pounds ($101.8 million).<\/p>\n","protected":false},"author":4,"featured_media":320827,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22,33],"tags":[82],"class_list":["post-322975","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","category-main","tag-efg-hermes"],"yoast_head":"\n