UPDATE 1-Egypt's EFG-Hermes Q1 net profit plunges 60 pct

(Adds comments from bank, detail from statement)

CAIRO, May 14 (Reuters) - Egyptian investment bank EFG-Hermes (HRHO.CA)(HRHOq.L) posted a 60 percent drop in net profit after minority interest for the first quarter of 2009 at 140.1 million Egyptian pounds ($24.9 million) on Thursday.

"Management continues to expect 2009 to be a difficult year and thus is adamant about adhering to all the cost cutting measures and continues to be vigilant on third party risk and the use of the balance sheet," the bank said in a statement.

The bank cut staff salaries last year in its efforts to help the bank weather the global financial crisis.

Fully loaded employee costs, the biggest component of operating expenses, were down by 28 percent in the first quarter of 2009 compared to a year earlier.

The bank said income from fees, commission and management of investments tumbled 68 percent to 150.5 million pounds.

It attributed this decline to factors including contracting volumes on all regional markets, delays in investment banking transactions and increasing redemptions above usual levels.

"For most of the first quarter 2009, EFG-Hermes continued to experience deteriorating market conditions impacting the assets under management, trading volumes and the ability to close investment banking deals," the bank said.

The bank said slight improvements in market valuations in March 2009 had yet to be reflected in improved investor activity with volumes -- with exception of Egypt -- declining or only slightly improving mostly on the back of retail trading.

Interest income climbed to 41.9 million pounds. ($1 = 5.62 Egyptian pounds) (Writing by Cynthia Johnston)