EFG Hermes profit takes hit from regional turmoil

Financial services group also affected by global downturn. Egyptian bank EFG Hermes said yesterday that the global economic downturn combined with the Arab world's political turmoil took its toll on the company's brokerage and investment banking business, sending its full-year net profit sharply lower. The Cairo-based financial services group, one of the Middle East's largest, said its consolidated net profit for 2011 slumped to 133 million Egyptian pounds (Dh80 million) compared with 700.4 million pounds in net profit in 2010, according to data on Zawya.com and the company's website. "This has been a particularly challenging year, with economic and political uncertainty casting a shadow across not only our region, but the entire globe," said Hassan Heikal, chief executive officer. The bank's operating revenues fell 31 per cent to 1.7 billion pounds as its brokerage, investment banking and asset management units all reported lower earnings. ‘Strategic alliance' EFG Hermes and Qatar's QInvest recently said they are in talks to create what could become one of the Middle East's largest investment banks. The two financial groups are exploring "a potential strategic alliance" to that would create an investment bank with operations across the Middle East, Africa, Turkey, and South and South East Asia. From: Gulfnews