EFG Hermes Marks Third Consecutive Quarter with
Group Net Profit at or Above EGP 100 mn as it releases
3Q14 Results
Revenue and profits at the leading investment bank in the Arab world are led by
particularly strong results from the Investment Bank despite the inherent
seasonality of the third quarter; group net profit rises 58% year-on-year
11 November 2014
(Cairo, Egypt) —EFG Hermes,* the leading investment bank in the Arab world, reported today a 46%
year-on-year increase in operating profits to EGP 247 million in 3Q14, leading to strong growth in net
earnings to EGP 100 million. This is the Firm’s third consecutive quarter reporting positive earnings,
and it notably comes despite the inherent seasonality of the business during the third quarter with the
slowdown for summer and the month of Ramadan.
Core Investment Bank operations were once again the primary drivers of growth, with Investment Bank
net operating profits rising 487% Y-o-Y to EGP 85 million in 3Q14. This filters into a net profit after
tax and minority interest of EGP 43 million in the quarter, an impressive turnaround from a net loss of
EGP 11 million in the same period of 2013.
Fee and commission revenue, which includes the four core Investment Bank business lines of
Securities Brokerage, Investment Banking, Asset Management and Private Equity, rose 52% Y-o-Y to
EGP 211 million in 3Q14. Growth of this KPI was mainly driven by higher Brokerage commissions
as liquidity improved in most of the Firm's traded markets and stronger Investment Banking revenue
which reflects the substantial market share in Egypt and growing market share in the GCC.
At the same time as the Investment Bank saw rising fee and commission revenue, management’s
ongoing emphasis on cost management led to a 15% Y-o-Y drop in total operating expenses to
EGP149 million in 3Q14 on lower employee expenses and other operating expenses.
At the Commercial Banking arm, Credit Libanais reported a net profit of USD 15.9 million in 3Q14, a
decline of 11% Y-o-Y as the difficult geopolitical environment continued to impact operations,
however, on a Q-o-Q basis net profit increased 38%. The bank’s total assets stood at USD 9.0 billion
with a loan-to-deposit ratio of 36.3%.
The strong operational performance in the quarter further cements management's optimism about the
future as the Group implements a strategy that aims to drive growth and create sustainable value for
shareholders in the coming years. Going forward, management will work on continuously delivering
strong group profitability as well as strengthening the Group's market share in Egypt and across the
GCC, all while diversifying the Firm's product offering to add new innovative services to its current
suite and carefully expanding its geographical presence in high growth markets .
Key Operational Highlights
*
Egyptian Exchange: Reuters code HRHO.CA | Bloomberg HRHO EY • LSE (GDRs): Reuters code
HRHOqL | Bloomberg code EFGD LI
www.efghermes.com

Securities Brokerage was once more the number-one ranked broker by market share of
executions on the Egyptian Exchange (EGX) and maintained its second place ranking in
Kuwait. Additionally, the Firm was able to substantially grow its market share in other regional
markets becoming second largest in Oman and Jordan and the third in Abu Dhabi. This comes
on the heels of the expected opening of KSA's exchange to foreigners by next year and where
the Firm has also significantly improved its market share and performance. Brokerage
executions closed 3Q14 at USD 9.4 billion, up 49% Y-o-Y, and consequently brokerage
revenues increased 47% Y-o-Y to EGP 97 million. This quarter the Egyptian Exchange
regained the lead as the largest contributor to the brokerage commission pot, representing 40%
of total commissions.

Investment Banking closed its third Initial Public Offering (IPO) for the year and the second
in Dubai acting as one of seven Book Runners for the landmark USD 1.6 billion IPO of the
Dubai based Emaar Malls Group where the division played a major role in the IPO's
overwhelming success. The team also acted as the sole financial advisor for the restructuring
and recapitalization of Pal Zileri, the Italian based subsidiary of Al Arafa Holding, with a total
deal value of USD 68 million. In Egypt, the Division acted as the sell-side advisor for a leading
private hospital that was acquired by the Dubai based private equity firm The Abraaj Group.
Last but not least, the Investment Banking team is in the final stages of concluding an EGP 1.0
billion rights issue for the Sixth of October Development and Investment Company (SODIC)
acting as the lead manager and the sole Book Runner.

AUM at Asset Management grew 5% Q-o-Q to USD3.3 billion at the end of 3Q2014,
reflecting the bullish trend across financial markets which led to a 9% appreciation of AUMs
against a 4% net outflow. The Division’s funds continued to outperform their tracking indices
in 3Q2014 with very strong performances in both absolute terms and relative to peer groups.
The coming period will see the division increase its focus on asset gathering initiatives. The
Division’s notable performance has seen it maintain its awards streak across numerous industry
rankings.

Meanwhile, AUM at Private Equity stood at USD 0.6 billion at the end of 3Q2014, with the
expected closing in 4Q2014 of the division's acquisition alongside investors of 49% of EDPR
France — a subsidiary of the world's 4th largest renewable energy company EDPR — to add a
further USD 208 million to the division's AUM. This transaction compliments the Division’s
strategy of pursuing high yield infrastructure and green energy plays. The team will continue
to actively review new growth-capital oriented investment opportunities as well as exits of
existing portfolio companies to maximize returns for limited partners.

The coverage universe of the firm’s award-winning Research house reached 133 equities
representing c. 61% of the aggregate regional market capitalization, with further coverage of
11 economies from a macro perspective and eight in terms of regular strategy notes.
EFG Hermes full 3Q2014 Earnings Release and the firm’s Audited Financials are now available on
our website.
—Ends—
Notes for Editors:
About EFG Hermes
www.efghermes.com
Established in 1984, EFG Hermes is the leading investment bank in the Arab world. The Firm
specializes in Securities Brokerage, Investment Banking, Asset Management, Private Equity and
Research. EFG Hermes is listed on both the Egyptian and London stock exchanges. A 65% stake in
Credit Libanais gives EFG Hermes exposure to the region’s promising commercial banking sector.
Through its operations in Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia and the UAE,
with more than 800 employees of 25 nationalities, EFG Hermes serves a considerable and diversified
client base from the Middle East and North Africa to Europe, Africa and the United States. Our
clients include governments, corporations, financial institutions, high net worth clients and individual
customers.
For further information about EFG Hermes, please visit efghermes.com and stay connected with us:
For further information, please contact:
EFG Hermes Media
[email protected]
May El Gammal
Head of Marketing
[email protected]
Note on Forward-Looking Statements
In this press release, EFG Hermes may make forward looking statements, including, for example, statements
about management’s expectations, strategic objectives, growth opportunities and business prospects. These
forward-looking statements are not historical facts but instead represent only EFG Hermes’ belief regarding
future events, many of which, by their nature are inherently uncertain and are beyond management’s control
and include among others, financial market volatility; actions and initiatives taken by current and potential
competitors; general economic conditions and the effect of current, pending and future legislation, regulations
and regulatory actions. Accordingly, the readers are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date on which they are made.
www.efghermes.com