Egypt Independent

EFG Hermes: 2010 trading in regional markets down by 40%

A recently issued financial report shows that regional stock markets saw a nearly 50-percent decline in trading during the second quarter of 2010, compared to the same period in 2009.

Regional markets were affected by the financial crisis in Greece, according to the report, produced by the Egyptian Financial Group (EFG Hermes). The average drop during the first half of 2010 stood at 40 percent, compared with the first half of 2009.

The report also details a decrease in the net profits of the financial group during the second quarter of 2010, of 9.8 percent (equivalent to LE364 million). This was due to the decline in regional trading, as well as losing revenues through selling its share in Bank Audi.

Total remuneration and commissions were down  by 10.6 percent compared with the second quarter of 2009, reaching LE205 million in the second quarter of 2010. During the same period, there was a 50 percent decline in regional trading.

As for total administrative and general expenses, these were up by 25.75 percent, reaching LE200 million, higher than in the second quarter of 2009.

The total assets run by the group decreased to US$5.07 billion, including US$4.14 billion consumed in investment funds and financial portfolios.

The report also reveals that both the investment funds and portfolios department and the Infra Egypt fund have prepared for a number of funds to be launched during the second half of 2010.

It also expected that the Syrian PE fund will be closed before the end of this year.

Translated from the Arabic Edition.

Tags EFG-Hermes