EFG-Hermes Q2 net profit declines by 66 %

Egyptian investment bank EFG Hermes said on Wednesday its second quarter net profit fell 66 per cent to 27 million Egyptian pounds ($4.4 million). The bank, which is planning a tie-up with Qatar’s QInvest, reported net profit of 80 million pounds a year earlier. It said investment bank revenue declined 13 per cent year-on-year to 195 million pounds in the second quarter on the back of lower revenue generated from capital markets and treasury operations. It said group revenue was 477 million pounds in the period. Revenues for the quarter split as 59 per cent contributed by the Commercial Bank and 41 per cent by the Investment Bank. While Investment Bank fee and commission income climbed 3 per cent year-on-year and 49 per cent quarter-on-quarter to EGP187 million, growth was offset by an 81 per cent contraction in capital markets and treasury revenues on the back of a very strong 2Q2011 figure that included dividend income from EFG Hermes’ investment in real estate developer SODIC. EFG Hermes Securities Brokerage again closed the quarter as the largest broker in the Arab world, maintaining its number-one position in Egypt (excluding special transactions) and the Dubai Financial Market, and retaining leading positions in other key regional markets. from:gulftoday