EFG Hermes profits dropped to LE 422.9 million (about US$27 million) during the first half of 2020, down to LE 686.5 million (US$43.14 million) including minority rights recording during the period last year.
The company attributed the dismal performance to higher loan loss provisions booked by the NBFI platform during the period.
EFG Hermes’ financial indicators revealed that the group accumulated revenues of LE 2.98 billion (US$187.27 million) during the first six months of 2020.
This was a dismal performance compared to the from LE 3.16 billion (US$198.58 million) recorded during the same months of 2019.
In Q1 2020, EFG Hermes realised profits of LE 98.92 million (US$6.17 million) during the first quarter of 2020, a significant drop compared to LE 380 million (US$23.88 million) achieved in the same quarter of 2019.
EFG Hermes’ net profit for Q2 however improved to reach LE380 million, representing an 8% year-on-year increase.
According to EFG, the growth recorded in Q2 2020 was supported by the solid bottom line generated by the Investment Bank, which increased 46% y-o-y to LE 297m.
“The group has shown resilience during Q2 of 2020, as it continued to navigate a challenging external environment due to the novel coronavirus (COVID-19) pandemic”, EFG Hermes Holding Group CEO, Karim Awad, said.
He further noted that, “with a diverse geographical presence and a full array of services, the Group is able to navigate a challenging external environment with great success.”