– EFG Holding achieves its highest-ever revenues of EGP 14.7 billion in 2023, marking a 34% Year-on-Year growth, driven by strong performance in its Investment Bank (EFG Hermes) and commercial bank arm (aiBANK).

– Despite a 35% increase in operating expenses, the Group’s net operating profit rises by 32% Year-on Year to EGP 4.9 billion, with net profit reaching EGP 3.2 billion, up by 47% Year-on-Year.

– EFG Hermes reports robust financial performance, with revenues increasing by 32% Year-on-Year to EGP 8.1 billion, driven by significant growth in sell-side and buy-side operations, particularly in Brokerage and Asset Management.

EFG Holding, a financial institution with a universal bank in Egypt and an investment bank in the Middle East and North Africa (MENA), has disclosed its full-year 2023 results. The Group achieved its highest-ever recorded revenues of EGP 14.7 billion, marking a 34% Year-on-Year growth. 

This exceptional performance was driven by the stellar contributions of its Investment Bank (EFG Hermes) in both sell-side and buy-side operations, as well as its commercial bank arm, aiBANK.

Operating expenses for EFG Holding increased by 35% Year-on-Year due to higher employee expenses and other General & Administrative costs, particularly at EFG Hermes and aiBANK. 

Additionally, higher provisions and Expected Credit Losses (ECL) across EFG Finance’s lines of business and aiBANK contributed to the rise in expenses.

Despite the increase in expenses, the Group’s net operating profit rose by 32% Year-on-Year to EGP 4.9 billion. Net profit also saw significant growth, rising by 47% Year-on-Year to EGP 3.2 billion in FY23, primarily fueled by the growth in profitability of Brokerage, Asset Management, Valu, and aiBANK.

Valu, the leading universal financial technology powerhouse in MENA, announced its partnership with Visa, the world leader in digital payments, in launching the new prepaid Valu card. 

The Group’s net profit after tax and minority interest reached EGP 2.5 billion, representing a 39% Year-on-Year increase. Furthermore, the Group’s total assets stood at EGP 121.9 billion at the end of December 2023.

Karim Awad, Group CEO of EFG Holding, commented on the performance, emphasizing the team’s dedication, commitment to excellence, and strategic foresight. He highlighted the record-breaking financial results, driven by the exceptional contributions of EFG Hermes and aiBANK, which underscore the strength of the Group’s strategic vision and its commitment to delivering excellence.

On the investment bank side, EFG Hermes reported a strong performance, with revenues increasing by 32% Year-on-Year to EGP 8.1 billion in FY23. Sell-side revenues grew by 51%, primarily due to Brokerage revenues. While Investment Banking revenues remained flat Year-on-Year, Brokerage revenues surged by 73%, driven mainly by Brokerage Egypt’s strong executions.

The buy-side’s revenues saw a substantial increase of 75% Year-on-Year, closing the year at EGP 1.3 billion, primarily driven by robust growth in the Asset Management business. Private Equity revenues also increased by 44% Year-on-Year to EGP 246 million in FY23.

The Investment Bank’s net profit after tax and minority interest increased by 20% to reach EGP 1.6 billion compared to EGP 1.3 billion in FY22.