CAIRO: EFG-Hermes, Egypt s largest investment bank by market value, posted a 30 percent increase in second-quarter net profit as revenue from investment banking soared.
The bank said first-half net profit jumped 34.2 percent to LE 757.7 million ($142 million). Reuters calculated second-quarter net profit as LE 409.19 million.
Revenue in the second quarter jumped 65 percent to LE 871.3 million.
In the first half of the year, the firm reported total consolidated revenues of LE 1.53 billion, up 56 percent over the same period last year.
“EFG-Hermes posted its best half-year results ever despite volatility in major regional markets due to an ongoing correction and the global economic slowdown, said EFG-Hermes CEO Yasser El-Mallawany.
During the second quarter of 2008 the investment banking team simultaneously closed two IPOs as well as continued to build the pipeline on both equity raising and mergers and acquisitions, the bank said.
Total revenue from investment banking surged 95 percent to LE 741 million, it said.
EFG-Hermes already has a presence in Egypt, Saudi Arabia, the United Arab Emirates, Qatar and Oman. It has said it expected to move into Kuwait and Bahrain by the end of 2008, completing its network in the Gulf Cooperation Council states.
“Across the region, we are reaping the fruits of our strategy of adding new markets, products and clients, said EFG-Hermes CEO Hassan Heikal, adding, “We are particularly pleased with the breakdown of operating revenues in the first half, which reflect our strategy of focusing on the larger and more stable asset management business as a core driver going forward.
In the first half, asset management (including both listed and private equity) accounted for 32.7 percent of total operating revenues. Brokerage accounted for 38.9 percent and investment banking for 10.7 percent, while the trading book accounted for 18 percent. -Additional reporting by Reuters.
