Egypt’s top financial services firm EFG Hermes posted a notable dip in its first-quarter revenue this year, falling 34% compared to the same period in 2024. The decline is largely tied to last year’s foreign currency gains that won’t repeat this time around.
Revenue slid to 5.6 billion Egyptian pounds ($112.45 million), and net profit before tax and minority interest dropped by the same margin, down to 1.2 billion pounds. The sharp drop reflects how much the earlier currency fluctuations had boosted last year’s numbers.
The Currency Shift That Shook The Numbers
March 2024 was a turning point for Egypt’s economy. The country devalued its currency significantly—from 30 to 50 Egyptian pounds per US dollar—as part of an $8 billion bailout deal with the IMF. This move had ripple effects across many sectors, especially finance.
For EFG Hermes, this meant foreign earnings suddenly had a much bigger value when converted back to Egyptian pounds last year. It’s that same boost which was missing in Q1 2025, causing a year-on-year revenue slump.
Mohamed AbdelKhabir, EFG Hermes’s CFO, gave some clarity, saying, “We had a great quarter in terms of operations. All our business lines are performing well. EFG Hermes is doing well.” That’s a bit of good news amid the headline numbers.
Deals Keeping EFG Hermes Afloat
Even with revenue down, the firm isn’t sitting idle. AbdelKhabir highlighted some big-ticket transactions in the investment banking space that helped keep momentum.
-
January saw the Saudi tech company Nice One Beauty Digital Marketing go public with an IPO.
-
In February, the UAE’s ADNOC Gas floated 4% of its shares in a $2.84 billion offering.
These deals underscore how EFG Hermes is capitalizing on strong activity beyond Egypt’s borders, which remains an important part of their business model.
How The Foreign Exchange Impact Plays Out
EFG Hermes’s CFO explained how last year’s Egyptian pound devaluation ended up being a windfall for the company due to its foreign operations.
Because they hold assets and conduct business outside Egypt, when the pound was weaker, those foreign earnings translated into more Egyptian pounds. This one-time FX gain inflated last year’s revenue figures, making the current year look weaker in comparison.
In a sense, this quarter’s drop doesn’t necessarily reflect a faltering company. Instead, it’s more about the lack of last year’s currency tailwind.
EFG Hermes In The Bigger Picture
EFG Hermes is among the region’s most prominent financial players, offering investment banking, asset management, and securities brokerage services. Their ability to navigate regional markets while balancing the Egyptian economy’s challenges is crucial.
Here’s a quick glance at the revenue and profit trends:
| Metric | Q1 2024 | Q1 2025 | Change |
|---|---|---|---|
| Revenue (in billion EGP) | 8.48 | 5.6 | -34% |
| Net Profit before tax (EGP) | 1.82 billion | 1.2 billion | -34% |
The chart above shows how much the currency move impacted financial results year over year.
What’s Next For EFG Hermes?
While the FX gains are behind them, the company’s focus on expanding deals abroad and developing strong business lines is encouraging. AbdelKhabir remains optimistic about the company’s direction despite the numbers.
It’s a tricky balancing act, especially with economic shifts in Egypt and the wider Middle East. But with recent successful IPOs and offerings, EFG Hermes seems poised to keep playing a key role in regional finance.
