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EFG Hermes posts net profit of EGP 422 million in Q3 2020

EFG Hermes has reported a group net profit of EGP 422 million for Q3 2020, up by 17.9% YoY.

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EFG Hermes, a leading financial service corporation in Frontier Emerging Markets (FEM), has reported a group net profit of EGP 422 million for Q3 2020, up by 17.9% YoY.

This is according to its latest financials sent to Nairametrics.

READ: EFG Hermes seals Helios Towers’ £288 million IPO on LSE 

Other key highlights in its latest financials for Q3 2020 include:

  • Revenue rose to EGP 1.4 billion, indicating an increase of +21% Y-o-Y. The growth is due to a massive boost in earnings recorded from the buy-side, capital markets and the NBFIs.
  • Net profit after tax and minority interest increased to EGP 422 million, up by +18% Y-o-Y.
  • Operating expenses increased to EGP878 million, up by +19% Y-o-Y. This is largely due to a hike in employee expenses and other operating expenses.
  • Net operating profit rose to EGP556 million, up by +23% Y-o-Y.
  • Brokerage increased to EGP243 million, up by +4% Y-o-Y.
  • Fees and commission revenue also increased to EGP1.06 billion, indicating a gain of +22% Y-o-Y.

(READ MORE: NSE Set to Host Sustainable Capital Markets Forum to Promote Green Finance in West Africa)

What you should know

  • In Q3 2020, the Nigerian Stock Exchange Index gained 9.6% Q-o-Q triggered by bullish local investors’ sentiment and heavy trade in the blue chips.
  • Meanwhile, volumes declined 15% q-o-q. Foreign investors continued to be stuck in long repatriation queues with no clarity on exit timeline. Foreign participation accounted for 34% of the total market activity in Q3 2020, of which EFG Hermes executed 28% of this flow.
  • EFG Hermes Nigeria held second place ranking in Q3 2020, with a market share of 21.2%. This takes the firm’s 9M 2020 market share to 23.5%, representing a second- place ranking

READ: Nigerian Banks expected to write off 12% of its loans in 2020 

What they are saying

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Commenting on the recent figures, CEO of EFG Hermes Holding Group, Karim Awad, said, “As we continue to navigate the impacts of the COVID-19 pandemic across our operations, I’m proud to report that we have continued to lead markets across our footprint and demonstrated the strength of our operations for the quarter.

READ: Access Bank Plc reports profit of N40.9 billion for Q1 2020

“On the Private Equity front, realized incentive fees of EGP 349 million from the strategic exit from our managing stake in Vortex Solar significantly contributed to the Group’s performance for the period. Our NBFI platform also continues to bring in stellar results in a quarter that saw valU awarded a license from the FRA, thus bringing the entirety of the Group’s operations under regulatory oversight.

READ: Custodian Investment Plc posts Profit After Tax of N1.5 billion in Q3 2020

“valU recorded its highest ever bookings since launch, while the firm’s leasing business closed the quarter with 54% more bookings YoY. Our Brokerage business commanded leading market shares across our areas of operation and our Investment Banking division successfully concluded six equity, M&A, and debt transactions worth an aggregate USD 193 million, displaying our growing ability to execute across a wider product spectrum and in extremely challenging conditions.”

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READ: Arbico Plc records N430.15million loss in nine months 

Bottom Line

Performance for the period was bolstered by strong performance from EFG Hermes’ Private Equity division, as well as the NBFI platform and continued support from the firm’s capital markets and treasury operations.

Chidi Emenike is a graduate of economics, a Young African Leadership Initiative Fellow and an Investment Foundations certificate holder. He worked as a graduate Teaching Assistant in the Federal College of Education Kano and is also a trained National Peer Group Educator on Financial Inclusion

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Business

#DigitalSkillsTraining: FG announces conclusion of selection process

Only successful applicants that are contacted by the Ministry are to report at the training venue.

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President Buhari to address Nigerians on Lekki toll plaza shootings after investigation , Youth Investment Fund:  Ministry of Finance and CBN to launch provision of funds- Minister, Federal Ministry of Youth and Sports launch DEEL initiative

The Federal Government through the Ministry of Youth and Sports disclosed that the selection process for the upcoming Digital Skills Training has been concluded for the #DigitalSkillsTraining from April 11th to 30th, 2021.

This was disclosed in a statement by the Ministry of Youth and Sport on Sunday evening.

“The Federal Ministry of Youth and Sports Development wishes to inform the general public and all Nigerian Youths that the selection process has been concluded for successful applicants for the #DigitalSkillsTraining scheduled for April 11 to 30, 2021,” the statement said.

The Ministry added that only successful applicants that were contacted by the Ministry are to report at the training venue. Those who were not successful but arrive at the training would not be admitted.

Upcoming #DigitalSkillsTraining Programmes of the Ministry will be widely publicized on youthandsport.gov.ng , on : noya.ng and on the Ministry’s social media handles,” the statement added.

What you should know 

Recall that Nairametrics reported in November 2020, that the Ministry of Youths and Sports Development announced it will scale up its digital skills training to cover 500,000 youths across the country after securing funding under the COVID-19 stimulus budget.

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Business News

Cost of building materials rise by over 60% in one year

The price of building materials in the market experienced a rise of over 60% in the last one year.

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2nd Niger Bridge, Suicide on Third Mainland Bridge

The cost of Cement, Steel, Tiles and Plaster of Paris (PoP) cement, among others have risen by over 60% between March 2020 and March 2021.

For instance, the cost of steel, which was sold at N234,000 per tonne as of March 2020, had increased to N380,000 at the end of March 2021. This represents a 62% increase within the period under review.

While Dangote Cement increased from N2,600 to N3,800 (though it is sold at N3,600 in some areas in Lagos), Lafarge Cement and BUA Cement increased from N2,400 and N2,250 to N3,600 and N3,250 respectively within the same period.

The price hikes are not limited to the cost of steel and cement alone but also to other materials like Tiles, PoP cement, and roofing sheets.

The cost of super white cement increased from N2,500 (25kg) to N3,700, and the cost of high-quality white cement (40kg) also increased from N4,000 to N6,500.

The cost of gravel increased from N80,000 to N140,000; that of 8mm diameter and 25mm diameter (imported) increased from N234,000 and N245,000 to N330,000 and N380,000 respectively.

Doors are not left out in the hike. Costs of Flush door (high quality), Panel door and Turkish steel door (1,500 x 2,100) also rose from N35,000, N40,000, N165,000 to N60,000, N75,000 and N235,000 respectively.

Why the hike?

Industry experts have attributed the hike to persistent depreciation of the naira and the rising cost of other building materials.

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Tunde Oluwole, a fellow of the Nigerian Institute of Builders, explained that the development was caused by high interest rate, inflation, increasing exchange rate and scarcity of forex in the country.

He said, “The increasing prices in Nigeria is a result of the combined effects of high-interest rates, devaluation of the naira, inflation, and non-effective distribution network of the materials.”

To Kolawole Adebisi, an Estate Developer, the development in the cement industry is caused by the ban of imported cement in the country.

He told Nairametrics that he is not against the ban, as the government’s intention is to boost local production of cement but explained that “the local manufacturers were unable to produce enough cement to meet the demand and this contributed to the rising cost of the product.”

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