Egyptian investment bank EFG-Hermes reported a 42 percent fall in third-quarter net income and said it was working on a plan for $10 million annual savings after its recent acquisition of a Lebanese bank.
EFG-Hermes, which expanded into commercial banking when it bough a controlling interest in Credit Libanais in November, said on Tuesday it was finalizing a corporate reorganization to streamline business.
"The proposed plan is expected to result in cost savings of approximately $10 million in the annual operating expenses, at a cost of a one-off charge of $10 million to be potentially booked in Q4 2010," it said.
The bank’s consolidated third-quarter net income fell to LE 88.1 million ($15.2 million). Fee and commission income rose 5 percent to LE 185 million.
Lower brokerage revenues — as a result of a summer lull coinciding with the Muslim fasting month of Ramadan when business typically slows — was offset by an increase in revenue from investment and private banking activities, it said.
"The investment banking team is currently involved in two high-profile potential transactions. The first is the $6.6 billion merger of Weather and Vimpelcom and the second is the sale of Olympic Group to Electrolux for $475 million," it said.
Following the acquisition of Credit Libanais, total consolidated assets stood at 47.1 billion pounds at the end of the third quarter.
