Egypt’s EFG-Hermes sinks to 2013 loss on one-off charges
The Egyptian bank EFG-Hermes plunged to a net loss last year, hit by one-off charges including a writedown in the value of certain investments.
The bank, active both in investment and commercial banking, said on Thursday that it made a net loss of 335 million Egyptian pounds (Dh176.6m), compared with a profit of 211m pounds in 2012. Excluding the charges, normalised net profit doubled from 2012, it said.
EFG-Hermes said the one-off charges totalled 761m pounds, including 616m pounds in the fourth quarter alone.
Hanzada Nessim, head of investor relations, said that the impairment charges related to acquisitions which the bank had previously made at home and in markets including Kuwait and Oman.
Charges also related to changes in the “fair value” of investment property in Dubai and one-off operating expenses booked during the year, Mr Nessim said, without giving any further detail.
In the fourth quarter, EFG-Hermes made a net operating profit of 163m pounds, up 302 per cent from a year earlier, the bank said.
Its normalised net profit, discounting one-off charges, reached 427m pounds for the whole year, slightly more than double the amount it made in 2012.
In Cairo yesterday, shares in EFG-Hermes fell to 12.78 pounds in their steepest drop since August 18. Last week they had hit their highest price since mid-2012 at around 13.50 pounds each.
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