CAIRO: Egyptian investment bank EFG Hermes reported a 63 percent drop in nine-month consolidated net profit to LE 276.8 million ($46.3 million), according to a statement from the stock exchange on Wednesday.
It made a profit of LE 738.3 million in the same period a year earlier, the bourse said, without giving further details.
Egypt’s banks have been hurt by a weak financial market and an exodus of foreign investors in the wake of the uprising that led to president Hosni Mubarak’s overthrow early this year.
“Amid challenging market conditions, prudence was the order of the day in the third quarter and remains so as we head into the end of the year,” said Hassan Heikal, CEO of EFG Hermes, in a statement sent to Daily News Egypt.
“We are pleased to have sharply reduced expenses at the Investment Bank while still leaving all five of the Investment Bank’s divisions the flexibility they need to respond to the inevitable market upswing, whenever that may occur.”
EFG Hermes was ranked 24th overall on the Europe, Middle East and Africa M&A tables at the half-year 2011 mark and closed its advisory on the $452 million sale of Olympic Group to Sweden’s Electrolux.
“The business will continue to face headwinds as a result of regional challenges and turbulence in the global financial system alike,” noted EFG Hermes Chief Executive Officer Yasser El Mallawany. “This underscores the fundamental wisdom of catalysing our transformation into a commercial bank last year by acquiring a controlling stake in Crédit Libanais.” –Additional reporting by Daily News Egypt
