EFG-Hermes Q1 net profit nearly wiped out
Cairo, June 15, 2011
EFG-Hermes, Egypt's biggest investment bank, said first-quarter net profit slumped 93 percent, hit by political turmoil and with the 2010 period boosted by an exceptional capital gain.
Net income dropped to 36.0 million Egyptian pounds ($6.1 million), EFG-Hermes said on Wednesday. The bank said first-quarter revenue would have risen 17 percent had it not been for an extraordinary 717 million pound capital gain in the 2010 period from the sale of a stake in Lebanese lender Bank Audi.
EFG-Hermes sold the stake in January 2010 for $913 million.
First-quarter operating revenue fell 60 percent to 431 million pounds, while operating costs rose 39 percent to 285 million pounds.
It said investment banking operations were hit by the region's political turmoil and the closure of the stock exchange for 35 trading days during the quarter due to the unrest. - Reuters