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EFG Hermes Q4 normalized net profit up 102%

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Staff writer ▼ | April 2, 2014
EFG Hermes reported its financial results for the fourth quarter and full year 2013. The firm closed 4Q 2013 with a normalized net profit after tax and before minority interest of EGP 96 million on operating revenues of EGP 637 million.
EFG Hermes
EFG HermesEFG Hermes reported its financial results for the fourth quarter and full year 2013. The firm closed 4Q 2013 with a normalized net profit after tax and before minority interest of EGP 96 million on operating revenues of EGP 637 million.


On a full-year basis, the Group reports a 102% rise in normalized net profit after tax and before minority interest to EGP 427 million on revenues of EGP 2,165 million.

The balance sheet clean-up resulted in EGP 715 million in non-cash, one-time charges below the net operating profit level. Including these charges and other one-off operating expenses, EFG Hermes Holding reports a statutory net loss after tax and before minority interest of EGP 335 million.

Notably, both the Investment Bank and the Commercial Bank were profitable at the operating level in both 4Q and FY2013. The Investment Bank posted a net operating profit of EGP 18 million in 4Q2013 (against a net operating loss of EGP 60 million in the same period last year) and of EGP 30 million on a full-year basis (versus a net operating loss of EGP 23 million in FY2012).

The Commercial Bank, meanwhile, reported a net operating profit of USD 53.0 million in 4Q2013 (up 14% year on year) and of USD 191.3 million on a full-year basis (up 4% year on year).

The firm’s management is optimistic that the year just-ended represents a turning point in the development of EFG Hermes post the Arab Spring. Notably, the Investment Bank turned net-operating-profit positive in both the fourth quarter and on a full-year basis.

Meanwhile, the combined impact of both the firm’s sharp emphasis on cost optimization and the second phase of its balance-sheet clean-up sees it entering 2014 with both a clean balance sheet and a lean P&L that should see it close FY14 with an opex base in line with our previously communicated target.


 

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