EFG Hermes Plans Further Expansion in Nigeria

Enterprise Television- EFG Hermes Plans Further Expansion in Nigeria

Egyptian financial services giant, EFG Hermes considers applying for an investment banking licence in Nigeria. This would enable the firm to serve clients in West Africa.  Ali Kapley disclosed this in an interview with Bloomberg.

Kapley  “We’re very excited about where Nigeria will go. There will be speed bumps along the way but it is a very exciting capital market for us.”

Kapley also disclosed that the firm would be concluding its acquisition of Primera Africa, a Nigerian brokerage house in a few weeks. EFG had in June last year disclosed it was interested in operating in Nigeria.

Nigeria’s capital markets were one of the best performing in the world last year based on a rebound in crude oil prices and the ensuing enhanced foreign exchange liquidity. The NSE has tanked sharply in recent times due to approaching elections and broader emerging market concerns.

Communication giant MTN’s ongoing struggles with the Central Bank of Nigeria (CBN) and the office of the Attorney General of the Federation (AGF) have also left investors wary.

The apex bank has since issued a statement dispelling rumours of a retroactive application of foreign exchange laws.

Year to date, the NSE All-Share Index is down 15.86 per cent and is one of the worst performing in Africa, only behind the BRVM.

EFG Hermes was founded in 1984, and currently operates in the United Arab Emirates, Saudi Arabia, Jordan, Kuwait, Omar, and Pakistan. The company has 880 staff and manages $2.4 billion worth of assets.

Results for the half year ended June 2018 show revenue increased from 2.2 billion EGP to 2.5 billion EGP.

Profit before tax dropped from 892 million EGP to 600 million EGP. Profit after tax also fell from 765 million EGP to 479 million EGP.

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