EFG Hermes Holdings started strong in the first quarter of 2026, with consolidated revenues rising by 18% year-on-year to reach £6.6 billion. This growth was driven by the strong performance of the group's three business platforms: investment banking, non-banking finance, and commercial banking.
The group's financial results showed an increase in operating profit and net profit before tax by 20%, reaching £2.5 billion and £2.3 billion respectively, reflecting the strength of operational performance. However, net profit after tax and minority interests was about £1 billion, down compared to the same period last year due to increased tax burdens and minority interests.
Event Details
The total assets of the group reached £270.2 billion by the end of March 2026. Operating expenses, including provisions and expected credit losses, increased by 16% to £4.1 billion, due to rising general expenses and ongoing inflationary pressures in the Egyptian market, alongside operational expansion in EFG Hermes Finance's activities and growth in lending portfolios at the platform and Next Bank.
Kareem Awad, the group's CEO, stated that the company began 2026 with strong performance driven by revenue growth across all three sectors, despite geopolitical tensions in the region during the latter part of the first quarter. He noted that the group continues to focus on disciplined risk management and maintaining operational profitability amid economic and regional challenges.
Background & Context
In the investment banking sector, EFG Hermes achieved revenue growth of 9% to reach £3.1 billion, driven by the performance of treasury activities and the holding company, as well as benefiting from currency exchange gains following the devaluation of the pound in March 2026. Additionally, revenues from asset management and direct investment rose by 6%, supporting the growth of operating profit and profit before tax for the investment bank by 31% and 34% respectively, reaching £1.2 billion and £1.1 billion.
In the non-banking finance sector, EFG Hermes Finance recorded a revenue growth of 20% to reach £1.6 billion, primarily supported by the strong performance of Valu, whose revenues surged by 85% due to increased securitization issuances and loans. However, the platform's profits faced pressure due to a 335% rise in provisions and expected credit losses, leading to a 37% decline in operating profit and a 47% decrease in profit before tax, reaching £276 million and £205 million respectively, while net profit after tax and minority interests stood at £61 million.
Impact & Consequences
Conversely, Next Bank continued to achieve strong results during the first quarter, with revenues rising by 34% to £1.9 billion, driven by a 53% increase in net interest income due to strong expansion in the loan portfolio. The bank's operating profit increased by 40% to £1.1 billion, while net profit before tax rose by 39% to £1 billion, and net profit after tax reached £691 million with an annual growth of 39%, of which the group's share was £354 million.
These financial results demonstrate EFG Hermes Holdings' ability to adapt to challenging economic conditions, reflecting an effective strategy in risk management and sustainable growth.
Regional Significance
These results are a positive indicator of the ability of Arab companies to achieve growth amid global economic challenges. They also highlight the importance of investments in the financial and banking sectors as key drivers of economic growth in the region.
In conclusion, EFG Hermes Holdings' revenues stand as evidence of the success of its strategies in facing challenges, enhancing its market position and reflecting the strength of the Egyptian economy.