CAIRO: Beltone Financial Holding’s bottom line saw a loss of LE 5.631 million in the second quarter of 2011, compared to a loss of LE 9.785 million during the same period last year.
For the first half of 2011, the Cairo-based investment firm lost LE 10.154 million, versus a profit of LE 10.852 million last year, according to a statement.
Total consolidated revenue in the first half of 2011 came in at LE 42.3 million, a 49.6 percent drop from last year and down 31.1 percent from the previous quarter. The firm attributed the decline to the “significant slowdown in investment banking activities and drop in market turnover that ensued following the January 25 revolution in Egypt.”
Investment banking revenues, impacted the most by the slowdown, dropped by more than 96 percent from last year, while brokerage revenues were down 33 percent “due to a drop in daily trading volumes accompanied by 50 days of suspension of trading on EGX during the first quarter.”
Asset management revenues were the least impacted dropping 10.4 percent to reach LE 23.9 million.
Long-term assets reached LE 190.157 million, up from LE 51.732 million at the end 2010, “as a result of the company’s acquisition of the office building in the Smart Villages in Sixth of October City. The acquisition results in direct savings on rental expenses of LE 6.650 million per year.”
“Despite the economic slowdown following the January 25 revolution in Egypt, investment banking was mandated five key transactions during the first half of 2011, one of which is acting as sole advisor on $750 million financing for KIMA,” the firm said.
Beltone’s management implemented a cost-cutting plan which resulted in savings of LE 16.056 million.
