The results of the financial group “Hermes” revealed that the group’s net revenues increased by 8% to 4 billion pounds during the first 9 months of quest’year, accompanied by net profit growth at an annual rate of 26% to reach 1.1 billion pounds.
Group CEO Karim Awad said the major sectors have managed to continue their strength performance and have played a vital role in solidifying the company’s position as a leading financial and investment institution in emerging and frontier markets.
He explained that the non-bank finance sector continued to record outstanding results, as the positive contribution of Tanmia, a specialist in Microfinance Services, as the group improved its results, increased as the value of its loan portfolio reached £ 3.5 billion, which is the highest level recorded by its institution.
Regarding the sectors of promotion, underwriting and securities brokerage, the group managed to conclude 9 transactions for the first time in 3 months, for a total value of 2.6 billion dollars. This achievement is a testament to the strength of the operating sectors and the enormous ability of the brokerage sector to execute a number of successful capital market transactions.
Looking at the results for the third quarter of 2021, net profit after tax and minority rights was £ 356 million, in light of revenue growth to £ 1.2 billion over the same period, in annual decline compared to the same period of the previous year, which saw the success of the direct investment sector recording Performance fees of EGP 349 million after completing the exit from Vortex III, as well as recording unrealized profits deriving from a revaluation of the starting capital in the same period last year.
Revenues from the securities brokerage, promotion and underwriting sectors increased at an annual rate of 45% to reach £ 406 million in the third quarter of questyear, buoyed by the exceptional performance of the two sectors. In the promotion and underwriting sector, revenues grew significantly at an annual rate of 184%, reaching EGP 107 million, thanks to the increase in advisory fees for trades and the number of trades executed during this period. .
The revenues of the securities brokerage sector increased to £ 299 million in the third quarter of 2021, with an annual growth rate of 23%, thanks to the strong growth of the brokerage sector’s revenues in the Egyptian and Kuwaiti markets, as well as to the positive returns of structured products.
Revenues in theasset management and direct investment declined at an annual rate of 74% to record 115 million pounds during the third quarter of questyear, thanks to the direct investment industry’s success in registering commissions performance of 349 million pounds after the completion of the exit from Vortex III in the same period last year.
Revenues from the direct investment sector amounted to £ 29 million in the third quarter of 2021. On the other hand, the revenues from the asset management sector increased at an annual rate of 32% to reach £ 86 million in third quarter of 2021. thanks to the increase in FIM management fees.
Revenues from the non-bank financial sector increased during the third quarter of 2021 at an annual rate of 52% to reach £ 507 million. This is due to the growth in revenues of “Tanmia” and the positive contribution of “Value”. Tanmia’s revenues increased at an annual rate of 36% to record £ 355 million during the third quarter of 2021, driven by the intensification of sales plans and the development of the financing portfolio during that period. The revenues of the company “Value” have more than tripled to 97 million pounds, thanks to the growth of the client portfolio and the improvement of profit margins in the third quarter of 2021.
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