EFG Hermes Holding [HRHO]
Egypt/ Non-Banking financials / Q4 2020 Results
12M PT EGP17.7 (+24%)
set on 22 Dec 2020
Investment Rating: Overweight / Risk Rating: Medium
Four years of consecutive growth: EFG Hermes Holding [HRHO] achieved net revenue growth for the fourth year in a row, reaching EGP5.4bn (+12% y/y). Yet, earnings slipped to EGP1.3bn (-5% y/y) which offset revenue growth, nudging ROAE down to a single-digit rate of 9%. The investment banking platform dominated 75% of revenues and 80% of earnings. Meanwhile, the NBFS platform is steadily growing with all its constituents now generating positive earnings. We see HRHO’s 2020 results as positive overall due to a resilient revenue growth in a puzzling year in which we had expected both lines to show weaker performance.
Sherif El Etr
Equity Analyst
T +202 3300 5720