EFG Hermes Holding [HRHO]: Earnings Growth Skyrocketing ex-One-Offs
Overweight and 12M PT maintained
EFG Hermes Holding [HRHO]
Egypt / Non-Banking Financials / Q3 2021 Results
12M PT: EGP14.8 (+15%)
set on 22 Dec 2020
Investment Rating: Overweight | Risk Rating: Medium
Concrete performance, ex-one-offs
EFG Hermes Holding [HRHO] reported a net profit of EGP356mn (-16% y/y, -12% q/q) in Q3 2021. This was mainly due to a high comparable base in the year-ago quarter which included the Vortex Energy exit, without which HRHO’s normalized earnings and net revenues would have grown 387% and 9%, respectively. Otherwise, net revenues reached EGP1.2bn (-18% y/y, -26% q/q) in Q3 2021, with the investment banking (IB) platform contributing 57%. TTM ROAE continues to remain in the low double-digit zone at 11%. We expect further ROAE improvement in the long term once aiBank’s acquisition is finalized and financials are consolidated.
For the full report, please click here.
Sherif El Etr
Equity Analyst
T +202 3300 5720