Egypt’s EFG Holding revenue falls on previous forex gain

Egyptian financial services company EFG Holding’s revenue declined by an annualised 34 percent in the first quarter, due to an exceptional foreign currency gain in the same period of 2024, the company said on Wednesday.

Revenue fell to EGP5.6 billion ($112.5 million), while net profit after taxes and minority interests fell 34 percent to EGP1.2 billion in the quarter.

Egypt in March 2024 devalued its currency to around EGP50 to the dollar from the previous EGP30, part of an $8 billion financial support programme agreed with the International Monetary Fund.

“We’ve had a good quarter operationally,” chief financial officer Mohamed AbdelKhabir told Reuters.

“All of our business lines are doing well. EFG Hermes, the investment bank, is doing quite well. We’ve closed a couple of very important deals on the investment banking side.”

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These were an initial public offering in January of Saudi technology company Nice One Beauty Digital Marketing and a $2.84 billion offering in February of a 4 percent stake in the UAE’s Adnoc Gas.

AbdelKhabir said the company had gained last year from the devaluation of the Egyptian pound because they had foreign exchange from operations abroad.