EFG-Hermes Third-Quarter Profit Climbs After Real Estate Sale

EFG-Hermes Holding SAE, the biggest publicly traded Arab investment bank, said third-quarter profit rose 43 percent, boosted by the sale of its former headquarters.

Net income for the period through Sept. 30 rose to 63.8 million Egyptian Pounds ($9.3m) from 44.5 million pounds a year earlier, the Cairo-based bank said today in a statement. Investment bank revenue rose to 191 million pounds, boosted by a one-time gain of 24 million pounds from the real estate sale.

The bank, whose merger with Qatar’s Qinvest LLC collapsed earlier this year, is focusing on operations in Gulf Cooperation Council countries after saying political turmoil in its home market discouraged foreign investors.

EFG-Hermes said it has booked revenue from advising Dubai Group LLC on the $164 million sale of Dubai First to First Gulf Bank (FGB) in the third quarter, while fees from the listing of BLME Holdings PLC (BLME) on Nasdaq Dubai (DPW) would be included in the fourth-quarter results.

The stock fell 1.4 percent to 8.02 pounds at 1:53 p.m. in Cairo compared to the benchmark EGX 30 Index’s 0.3 percent decline.

To contact the reporter on this story: Shaji Mathew in Dubai at shajimathew@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.