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EFG Hermes net profits up 49% y-o-y to record EGP 304m in Q2 19

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EFG Hermes the leading financial services corporation in Frontier Emerging Markets (FEM) reported net profit of EGP 304m in the Q2 of 2019 up 49% year-over-year (Y-o-Y) the company revealed recently.

The company achieved revenues of EGP 1.1bn, reflecting a 13% y-o-y increase during the same period.

For the H1 of 2019, group revenues reached EGP 2.3bn to deliver a net profit after tax and minority interest of EGP 676m, representing a 51% increase compared to the same period last year.

Strong top-line growth came on the back of a robust performance by the Group’s NBFI platform, which reported a 73% y-o-y increase in revenues to EGP 322m in 2Q19 and contributed 31% to group revenues for the quarter.

The platform’s results were underpinned by Tanmeyah’s impressive 83% year over year revenue growth to EGP 275m in 2Q19.

The Group CEO of EFG Hermes Holding’s Karim Awad commented that, “Halfway into the year, EFG Hermes continues to report solid results with our NBFI platform recording stellar growth and increasing its contribution to our top-line to 31% for the quarter up from 20% a year ago.”

“Our microfinance solutions provider, Tanmeyah, once again posted outstanding results as it continues to grow its active borrowers and loans issued. The rapid growth at our NBFI platform bears testament to the strong demand for financing solutions in Egypt and the ample opportunities present in increasing access to finance and helping fuel broad-based financial inclusion and economic growth.”

More so, Tanmeyah’s strong growth helped drive a 15% y-o-y increase in the Group’s reported Fees and Commissions revenue to EGP 784m in 2Q19, which continued to make up the lion share of the Group’s top-line at 75% for the quarter.

EFG Hermes’ sell-side businesses recorded a 4% y-o-y expansion in revenues to EGP 364m in the second quarter of the year. Higher revenues reported by the Brokerage business, which rose 10% y-o-y to EGP 297m primarily on stronger commissions generated in the MENA markets particularly KSA, Kuwait, and the UAE, more than offset a 17% Y-o-Y contraction in Investment Banking revenues.

“The Brokerage division’s ability to deliver strong top-line growth for the quarter despite difficult market conditions reflects the success of our geographical diversification strategy which, in recent years, has seen us successfully penetrate key MENA and Frontier markets,” Awad said.

“During the quarter we saw Frontier markets, KSA and Kuwait take the lead in terms of contributions to total commissions, a testament to our team’s strong revenue generation capabilities across a multitude of regional markets.” he added

However, EFG Hermes’ Private Equity division delivered a 15% y-o-y rise in its reported revenues to EGP 27m on the back of higher management fees, following the second closing of the Group’s education fund which stood at $133m. While, the Asset Management division revenues recorded EGP 71m, a drop of 40% y-o-y due to lower incentive fees for the quarter. Accordingly, EFG Hermes’ buy-side business witnessed a 31% y-o-y decrease in revenues to EGP 98m in 2Q19.

Group operating expenses saw an increase of only 9% y-o-y and a drop of 15% Q-o-Q to EGP 672m in Q2 2019, with the increase versus the same quarter last year mainly on higher employee expenses and other operating expenses related to Tanmeyah.

 

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Bidvest Bank trading profit rises 3.5% to R6.7bn

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The Commercial bank in the Republic of South Africa trading, distribution and services group Bidvest said recently its trading profit for the year ended June 30 rose 3.5 percent to R6.7 billion despite flat revenue.

Headline earnings per share were up 9.8 percent to 1,352.1 cents and the company said exceptional cost and capital discipline as well as improved margins were highlights against a volatile trading backdrop.

The CEO Bidvest Bank Lindsay Ralphs said, “There has been a strong focus on our clients, on solutions, innovation, wholesaling the right product at the appropriate price point as well as bolt-on acquisitions in the services and office & print divisions, which has culminated in acceptable growth.”

The group declared a final cash dividend of 318 cents per share, bringing the total dividend for the year to 600 cents, up 7.9 percent from last year.

Strong profitability gains were achieved at Adcock Ingram while Comair recognised the successful claim awarded against South African Airways, which increased Bidvest’s share of profits from these associated companies.

Bidvest said its diverse portfolio of businesses and extensive reach allowed it to weather challenging times.

“Our basic-need services and everyday essential product ranges enable us to support and add value to all our stakeholders. Innovation to disrupt ourselves, and the industries in which we operate, remains a core focus alongside disciplined asset management and cost control,” Ralphs added.

 

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Guinness Nigeria Declares N5.5bn Profit, N3.3bn Dividend

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A leading beverage alcohol firm in Nigeria Guinness Nigeria, recently announced a profit after tax (PAT) of N5.483 billion for the year ended June 30, 2019, compared with N6.718 billion. The profit was actualized from a revenue of N131.498 billion as against N142.975 billion in 2018.

Net financing income fell from N3.443 billion to N1.862 billion, while profit before tax (PBT) was N7.103 billion, down from N9.943 billion in 2018. The board of directors has recommended a dividend of N3.329 billion.

Commenting on the result, the Managing Director, Guinness Nigeria Plc, Mr. Baker Magunda, stated that the company would continue to work on all operating indices while expecting that the micro and macroeconomic parameters improve.

Magunda mentioned that: “Revenue for the year declined 8% compared to same period last year on the backdrop of an extremely challenging macroeconomic and competitive environment. The cost of the increase in excise duty at a time of stagnant consumer disposable income had to be absorbed by industry players. Despite the tough competitive landscape, we continue to see good growth performance from Guinness, Spirits and the malt drinks.”

According to him, a combination of factors, inflation plus prior year royalties and accruals not approved by NOTAP, led to a 17 per cent decline in gross profit for the organisation.

Magunda explained that “Marketing spend reduction by 16 per cent and distribution costs initiatives partly mitigated the gross profit decline, thus leading to a fall in operating profit by N4.4 billion. Profit before tax decreased by N2.8 billion as a 46 per cent reduction in net finance costs further helped to cushion the decline in operating profit,”

Also speaking on the performance, Chairman of the company, Mr. Babatunde Savage, said: “As a board, we are confident that our strategy is sound, and that we are making the right investments in the company to ensure our long-term competitiveness. The Board will continue to support the management in its efforts to build a business that aims to consistently deliver growth for stakeholders.”

The company noted that despite the challenges, it continues to fulfill its commitment to stakeholders particularly as it drives its renewable energy and water recovery project for sustainable environment.

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Zenith Bank grows profit to N111.7bn, in H1’19

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Nigeria’s leading financial service Zenith Bank Plc has announced profit before tax (PBT) of N111.7billion and proposed interim dividend of 30 kobo per share for the half-year ended June 2019 (H1’19).

This was disclosed by the bank in its audited financial results for H1’19 released recently which showed improved performance in key financial indicators.

In a statement announcing the results, the bank said: “Gross earnings grew by three percent from ¦ 322.2 billion to ¦ 331.6 billion driven by a significant growth of 24 percent (YoY) in non-interest income from ¦ 88.6 billion in H1 2018 to ¦ 109.7 billion in H1 2019.”

It further said: “In particular, fees from electronic products increased by ¦ 17 billion (168 percent) from ¦ 10 billion in H1 2018 to ¦ 27 billion in H1 2019, demonstrating significant progress in our retail banking initiatives.”

“This top-line growth filtered through to the bottom-line as Profit Before Tax (PBT) increased to¦ 111.7 billion reflecting a four percent growth over ¦ 107.4 billion reported in H1 2018 with earnings per share (EPS) increasing by nine percent to ¦ 2.83 in H1 2019 from ¦ 2.60 compared to the prior period.” It added.

 

 

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