The financial statements of the Financial Group Hermes, one of the largest Egyptian investment houses, revealed that the group's profits declined in the third quarter of this year by 5.3% to 337.3 million pounds, compared to 356 million pounds in the profits of the same period last year.
Hermes said in a statement to the Egyptian Stock Exchange, yesterday, Wednesday, that operating expenses increased during the comparison periods by 108% due to the compilation of the results of the Arab Investment Bank, the increase in expenses due to the growth of activity, as well as the devaluation of the currency.
Hermes stated that general and administrative expenses increased significantly during the third quarter of this year, reaching 1.4 billion pounds, compared to 740.6 million pounds in the same period of the previous year. During the first nine months of 2022, the group's expenses increased to reach 3.8 billion pounds, compared to 2.4 billion pounds for the same period in 2021.
The decline in Hermes net profits came despite the growth of the group's revenues by 91.7% to 2.3 billion pounds, compared to 1.2 billion pounds during the same quarter of last year, which the group attributed to the strong performance and the compilation of the results of the Arab Investment Bank - an Egyptian bank - in which the group acquired a majority stake in November. 2021.
As for the first nine months of this year, Hermes net profits declined to 1.03 billion pounds, compared to 1.05 billion pounds in profits for the same period of 2021, while revenues recorded 6.3 billion pounds, compared to 4.03 billion pounds for the same period of the previous year, with a growth of 56.3 percent. % on an annual basis.
EFG-Hermes was a target for acquisition by the Emirati First Abu Dhabi Bank Group, but withdrew the offer on April 14, due to the turmoil in the financial markets.
