DUBAI, March 10 EFG Hermes, Egypt's
largest investment bank, wants to secure 60 percent of its
investment banking revenue from abroad by 2017, its group chief
executive told Reuters on Monday.
Three years of political turmoil since the uprising that
swept autocratic leader Hosni Mubarak from power have taken a
heavy toll on Egypt's economy, deterring foreign investment and
tourism. Islamist President Mohamed Mursi was
ousted last year following protests against his rule.
EFG, which has yet to report full-year 2013 earnings, has
seen its annual profits slide sharply since 2011, when Mubarak
The bank, which has operations across the Middle East, wants
a better revenue balance, CEO Karim Awad said in an interview on
the sidelines of a conference in Dubai on Monday.
Currently 60 percent of investment banking revenue comes
from Egypt and 40 percent from abroad, but EFG wants to flip
that round to 60 percent from overseas, he said.
"Egypt will continue to be a very crucial market for EFG
Hermes but we want to make sure we have good operations in the
United Arab Emirates, Saudi Arabia, Kuwait and other markets,"
"The target is to become a more balanced regional bank that
operates across all markets, with Egypt remaining the largest
contributor," he said, adding the bank was targeting growth in
its asset management business, with its core brokerage
operations also pushing it towards the overseas revenue target.
Awad said EFG's mergers and acquisitions advisory pipeline
was currently strongest in Saudi Arabia, with deals both inside
the country and outbound transactions into other Middle East
nations being worked on.
EFG Hermes reported a 63 percent drop in 2011 full-year net
profit to 307.7 million Egyptian pounds ($44.2 million),
compared with a year earlier, amid the country's unrest.
The bank, which saw a merger deal with Qatari investment
bank QInvest collapse in May last year, has aggressively cut
costs since the tie-up failed. Awad said the bank expects
operating expenses to fall to 780-800 million Egyptian pounds at
the end of 2013 and to 500 million Egyptian pounds in 2014.
($1 = 6.9603 Egyptian pounds)
(Reporting by Mirna Sleiman and David French; Editing by Pravin