Egypt's EFG Hermes 1Q net profits drop 93 pct

AP News
Posted: Jun 15, 2011 8:42 AM
Egypt's EFG Hermes 1Q net profits drop 93 pct

Egypt-based regional investment giant EFG Hermes says its net profits plummeted 93 percent year-on-year in the first quarter, dragged down by unrest in the Arab world.

EFG said Wednesday that net profits fell to 36 million pounds ($6.1 million) for the period ending March 31 compared to net profits of 483.6 million pounds in the same period in 2010.

Also affecting the results was a one-time gain resulting from its sale of Lebanon's Bank Audi SAL in January 2010.

Revenues from its investment banking division dropped 84 percent, reaching 168.2 million pounds.

The uprisings in Tunisia and Egypt, and later in Yemen, Bahrain and Libya, have battered the investment climate in the Arab world.

EFG's shares were down almost 0.3 percent, to 21.97 pounds, on the Egyptian Exchange by about 2:15 p.m. local time.