Cairo – EFG Hermes decided to pursue exit options from two markets namely Pakistan and Jordan, and is currently in advanced stages of agreeing on an exit from a third market that will be announced in due course.
The move comes in light of EFG Hermes’ efforts to drive shareholders’ value as it continues to look at simplifying its operations and directing its resources to opportunities aligned with its core strength, according to a press release.
EFG Hermes said: “Given our strong belief that these markets’ economic and capital markets potential remains very high, EFG Hermes will remain committed to serving its institutional clients base pursuant to our expected exits.”
The firm added the exit from Pakistan and Jordan will not have any material impact on its revenues, as their combined revenues represented less than 1% of the Group revenues in the nine-months of 2022 and in the full year of 2021; and accounted for 2% and 3%, respectively, of the brokerage revenues over the same periods.
The company further stated that it remains strongly committed to the remaining core markets in which it operates, noting that it enters 2023 with a balance sheet that is extremely healthy with a net cash position that will be positively impacted by the exits.
The three contemplated exits will have minimal impact on the company’s 2023 financial statements, EFG Hermes revealed.
In the first nine months (9M) of 2022, the EGX-listed firm posted consolidated net profits after tax worth EGP 1.31 billion million, higher than EGP 1.12 billion in 9M-21.
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