At a Glance
STRATEGIC DIRECTION
Chairperson's Foreword
A Note from Our Group CEO
Management Discussion & Analysis
INVESTMENT BANK
Sell-side Overview
Securities Brokerage
Investment Banking
Research
Buy-side Overview
Asset Management
Private Equity
NBFI PLATFORM
NBFI Platform Overview
Tanmeyah
valU
EFG Hermes Corp-Solutions
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50
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56
58
60
62
66
72
PayTabs Egypt
Bedaya
Kaf
EFG EV Fintech
COMMERCIAL BANK
Commercial Bank Overview
aiBANK
OUR CONTROLS
Corporate Governance
Risk & Compliance
OUR TEAM
Our People
Executive Committee
Board of Directors
Corporate Social Responsibility
Corporate Social Responsibility
FINANCIAL STATEMENTS
Financial Statements & Auditor's Report
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F U E L I N G
S Y N E R G I E S
As the firm expands its offering, it works to maintain a laser-sharp
focus on how the businesses under its umbrella work together. By
fueling synergies, the firm is enhancing its cross-selling abilities,
growing its revenue streams, and offering clients best-in-class end-
to-end financial solutions.
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Annual Report 2022 | EFG Hermes Holding | 3
CONTENTS UK
Jordan
Kuwait
Pakistan
Egypt
Saudi
Arabia
UAE
Oman
Bangladesh
Nigeria
Kenya
Vietnam
Singapore
At a Glance
EFG HERMES HOLDING
AT A GLANCE
USA
Boasting a remarkable track record of over 39 years, EFG
Hermes Holding continues to be the leading partner of
choice for regional and global clientele through its roster of
financial offerings and solutions that unlock access to the
markets’ most compelling prospects. Over the years, the
Firm has successfully transformed its business model to be-
come a full-fledged, impact-driven universal bank in Egypt,
boasting the leading investment bank arm in Frontier and
Emerging Markets (FEM). With an expansive on-the-ground
presence spanning 14 countries across four continents, and
three fast-growing verticals, EFG Hermes Holding lever-
ages its deep-rooted understanding of the markets where
it operates and the unique synergies inherent in its business
model to unlock value-accretive opportunities for clients
across its footprint.
Operational Footprint
EFG Hermes Holding leverages its three diverse verticals —
the Investment Bank, Non-Bank Financial Institutions (NBFI)
Platform, and the Commercial Bank — to bring to market
unique financial products and services that support its clients
— individuals from all walks of life and businesses of all sizes
— in every stage of their growth and development. 2022 saw
the Firm deliver a strong performance across all its platforms
despite the challenging macroeconomic environment.
The Investment Bank
Securities Brokerage
EFG Hermes Securities Brokerage, the MENA region’s premier
brokerage house, offers its clients a wide range of innovative
and tailored products and services, secure multi-platform trad-
ing tools, market intelligence and insights, and unparalleled
execution capabilities, ensuring maximum generated returns
tailored to different investor preferences and risk profiles. The
division boasts an expansive four-continent presence across
the MENA region and FEM. It operates in countries including
Egypt, Kuwait, the UAE, Saudi Arabia, Oman, Jordan, Pakistan,
Kenya, Nigeria, and Bangladesh, along with US and UK repre-
sentative offices.
In 2022, and despite the macroeconomic volatility on the
back of rising interest rates and inflationary pressures, EFG
Hermes' Brokerage division delivered a strong performance
across its core markets of operations. As a result, the division
witnessed an expansion in traded volumes across most
regions during the year and substantial growth in its market
share across the board. The Brokerage division managed to
successfully sustain its first-place position on the Egyptian
Exchange (EGX), the Dubai Financial Market (DFM), and Ke-
nya’s Nairobi Securities Exchange (NSE). It also fortified its
second-place ranking in Abu Dhabi and Kuwait, while com-
ing in fifth in Nigeria and Oman and sixth in Saudi Arabia.
Investment Banking
EFG Hermes’
Investment Banking division has rap-
idly grown to become the partner of choice for clients
and partners, as it continues to offer unrivaled advisory
capacities in the mergers and acquisitions (M&A), debt
(DCM), and equity capital market (ECM) spaces. The divi-
sion leverages its extensive market know-how and a wide
network of MENA clients to bring to market compelling op-
portunities, carrying out the majority of the largest, most
prominent transactions in the region.
Throughout 2022, the division successfully concluded
advisory on 32 ECM, DCM, and M&A transactions across its
footprint, with an aggregate value of over USD 14.3 billion.
Currently, the division provides market intelligence and
insights on 338 stocks under coverage in 10 sectors across
25 countries.
Asset Management
EFG Hermes’ Asset Management division offers its client
base a wide range of mutual funds and discretionary port-
folios with both country-specific and regional mandates,
including equity, money market, fixed income, indexed, and
Sharia- and UCTIS-compliant mandates.
Research
EFG Hermes’ award-winning Research division unlocks
in-depth insights into the region’s most promising and
compelling companies, markets, sectors, and economies,
allowing clients to make informed financial and investment
decisions that match their objectives. The division offers
unrivaled equity, macro, strategy, and index research, an-
chored by industry professionals and an expansive footprint
in Egypt, the UAE, Pakistan, Kenya, Nigeria, Saudi Arabia,
Oman, and the UK.
By the end of 2022, the division’s assets under management
(AUM) in Egypt stood at EGP 25.9 billion, while regional AUM
from the Firm’s regional arm, Frontier Investment Manage-
ment (FIM) Partners, grew to record USD 2.7 billion.
Private Equity
EFG Hermes’ Private Equity platform drives value-accre-
tive investments in strategic and impactful sectors by
providing rapid and flexible investment capital. As a long-
term impact investor, the division invests in businesses
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Annual Report 2022 | EFG Hermes Holding | 5
At a Glance
operating in key industries, including renewable energy,
education, and healthcare, that generate lucrative finan-
cial returns and create social and environmental impacts.
suite of innovative leasing and factoring tools and advisory
services — a one-stop shop financial enabler of business
growth and development supporting small, medium, and
large corporates.
The division’s investments in the infrastructure landscape are
managed through the flagship Vortex Energy platform, which
was established in 2014 as part and parcel of the Firm’s ef-
forts to ramp up its investments in the global renewables
space and work toward a net zero future.
In the education field, EFG Hermes’ Egypt Education
Platform (EEP) is a USD 150 million investment fund es-
tablished in 2018 as part of a USD 300 million education
platform in collaboration with Dubai-based education
provider GEMS Education.
Rx Healthcare Management was established to manage
healthcare investments that serve the rapidly-growing sector
and the region's high demand for healthcare solutions.
Non-Bank Financial Institutions
Tanmeyah
Tanmeyah for Microenterprise Services, a subsidiary of
EFG Hermes Holding, is the leading company in provid-
ing a range of microfinance solutions in Egypt. Tanmeyah
was established in 2009 and, since its inception, has
grown to become one of the leading entities in the field
of working capital financing for owners of low-income
generating projects. Tanmeyah offers a broad spectrum
of financial solutions targeted at governorates where
business owners typically lack access to finance from
conventional banks, which is part of its goal to promote
financial inclusion in Egypt and serve as a growth engine
for enterprises to bolster the development of its sur-
rounding communities.
By the end of 2022, Tanmeyah recorded an outstanding port-
folio value of EGP 4.3 billion and a total client base of 378,645
active borrowers.
EFG Hermes Corp-Solutions
EFG Hermes Corp-Solutions was launched in 2020 as a
consolidated entity representing the Group’s factoring
and leasing businesses. As a constituent part of the NBFI
platform, the entity offers its clients a comprehensive
At the end of 2022, EFG Hermes Corp-Solutions registered
an aggregate value of leasing and factoring bookings
amounting to EGP 9.6 billion versus the EGP 8 billion booked
at year-end 2021.
valU
Launched at the end of 2017 as a Buy-Now, Pay-Later
(BNPL) provider, valU today has grown to become the
MENA region’s leading lifestyle-enabling fintech plat-
form. A fundamental element of EFG Hermes Holding’s
wider strategy to diversify its product base and provide
nationwide financial solutions through digital interme-
diation, valU has transformed throughout the years to be-
come a key player in the regional fintech ecosystem and
promoter of financial inclusion. As a BNPL provider, valU
offers convenient and inclusive financing plans from 3 to
60 months through over 3,600 retail partners and service
providers, as well as over 1,000 e-commerce platforms
covering various categories, including home appliances,
electronics, home finishing, furniture, residential solar
solutions, healthcare, education, travel, F&B, oil and gas,
fashion, used cars, and more. In 2022, valU redesigned
its service and product offering universe, setting the
foundation for the Firm to market new and innovative
solutions beyond BNPL services. With this new strategy
in motion, valU will reposition itself in 2023 to become a
comprehensive platform offering its clients various intel-
ligent financial services.
In 2022, valU recorded 568,000 app customers and over one
million transactions completed through its app.
PayTabs Egypt
Established in Saudi Arabia in 2014, PayTabs is an award-
winning payment processing powerhouse with an expan-
sive presence spanning 10 markets. In 2019, EFG Hermes
Holding partnered with the fintech player PayTabs to
launch PayTabs Egypt — a formidable digital payments
platform and an integral part of the Firm’s NBFI platform.
Over the years, PayTabs Egypt has significantly contributed
to the nation’s directives for financial inclusion and digital
transformation by becoming the leading online payment
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Annual Report 2022 | EFG Hermes Holding | 7
With an expansive on-the-ground presence spanning 14
countries across four continents, and three fast-growing verticals,
EFG Hermes Holding leverages its deep-rooted understanding
of the markets where it operates
At a Glance
gateway for a wide range of consumer segments and busi-
nesses across key industries. Today, PayTabs Egypt offers
seamless digital payment solutions for corporates, SMEs,
startups, and freelancers.
that drive value for individuals and businesses in the life
and savings arenas. Kaf aims to make insurance prod-
ucts more accessible to the wider Egyptian population,
creating social and community value through insurance
products backed by a trusted digital platform.
PayTabs concluded 2022, having registered a base of over
2,000 merchants and over 1.5 million transactions completed
through its platform.
EFG EV Fintech
Established in 2017 as a joint venture between EFG Hermes
Holding’s wholly owned subsidiary, EFG Finance, and
government-backed venture capital fund, Egypt Ventures,
EFG EV Fintech is Egypt’s flagship boutique micro-VC arm
that supports innovative and strategic fintech companies
from start to finish. The company boasts the country’s larg-
est fintech portfolio, with prominent companies operating
in key sectors, including insurance-tech, regulatory-tech,
agri-fintech, digital and open banking, and SME lending.
In 2022, EFG EV Fintech successfully managed to carry out
several landmark transactions during the year, including its
exit from tech-led business-to-business (B2B) platform Fatu-
ra and HR platform Paynas, by capitalizing on the synergistic
prospects between its own entity and other arms within the
Firm’s NBFI platform.
Bedaya
Established in 2019 as a joint venture between Talaat Mostafa
Group (TMG), Ghabbour Capital (GB Capital), and EFG Hermes’
NBFI platform, Bedaya Mortgage Finance (Bedaya) is one of
Egypt’s leading providers of non-bank digitalized mortgage
financing solutions, with its offerings spanning residential,
commercial, and administrative real estate properties. Its inno-
vative mortgage financing solutions are powered by technol-
ogy and well-rounded industry acumen, ensuring the fastest
turnaround and the best quality of service in the market.
By the end of 2022, Bedaya recorded a substantial hike in port-
folio value and number of clients served — a Y-o-Y increase of
206% and 379% versus the end of 2021, respectively.
Kaf
Founded in 2020 following the acquisition of Tokio Marine
Egypt Family Takaful by EFG Finance and GB Capital, Kaf
has grown into a tech-enabled insurance brand in Egypt,
delivering innovative and impactful insurance solutions
2022 saw Kaf become the first Egyptian company to of-
ficially transition from takaful insurance to commercial
insurance, to expand its customer base and shift focus to
more disruptive solutions that upscale the insurance sec-
tor. By the end of the year, the company recorded 2 million
lives insured compared to 78,000 in 2020 pre-acquisition.
Commercial Banking
aiBANK
As part of its strategy to promote access to responsible
financial solutions across the country, EFG Hermes Hold-
ing concluded the acquisition of aiBANK alongside the
Sovereign Fund of Egypt (TSFE) in 2021. The acquisi-
tion marked EFG Hermes Holding’s strategic entry into
Egypt’s ever-expanding commercial banking sector. It
kick-started the Group’s transformation into a universal
bank in Egypt that offers its clients a holistic suite of
financial services.
Since its acquisition, aiBANK has embarked on a transfor-
mation journey to become Egypt’s only boutique bank with
a unique focus on people, entrepreneurs, and businesses
driving change across the market. Through a relentless
commitment to customer-centricity, the bank aims to of-
fer market-leading retail, corporate and Islamic banking,
in addition to treasury and investment services tailored to
consumers and businesses of all sizes.
In 2022, aiBANK achieved growth across all its business
segments, recording an increase in newly banked custom-
ers and organic growth from its existing customer base.
By the end of the year, the bank registered total net loans
amounting to EGP 19.3 billion.
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Annual Report 2022 | EFG Hermes Holding | 9
14
75
countries in our geographic
footprint
MENA and frontier emerging
markets in our coverage
EFG Hermes Holding continues to broaden its
bespoke offering across its geographical foot-
print through its three key verticals.
STRATEGIC DIRECTION Strategic Direction
CHAIRPERSON’S
FOREWORD
Despite the global headwinds witnessed in 2022, I reflect
on the year with nothing but immense pride. EFG Hermes
Holding achieved major milestones on a Group-wide
scale, delivering outstanding financial and operational
results across its core operations and lines of business
and creating meaningful impact across its geographical
footprint — a testament to the relentless efforts of our
teams and the effectiveness of our adapted strategies.
Following our acquisition of aiBANK in 2021, EFG Hermes
Holding transformed into a universal bank in Egypt and a
provider of a full spectrum of bespoke financial services.
During 2022, we continued to see the Group’s verticals
— the leading investment bank franchise, the non-bank
financial institutions (NBFI) platform, and the commercial
bank — demonstrate resilience and stability amid global
macroeconomic volatility and come together to offer
synergistic, value-add offerings that had the power to
transform individual lives, grow businesses, and enact
wider economic and market change throughout our foot-
print. 2022 saw a multitude of cross-selling partnerships
between our different products, our lines of business, and
our teams, with an eye toward providing our clients with
access to end-to-end finance and investment prospects
across the markets in which we operate — proof positive
of how synergies are and will remain the focal point of
EFG Hermes Holding’s business model.
The investment bank continues to outperform across its
operational footprint. On the sell side of the business,
the Investment Banking division continued to advise
on the largest, most prominent ECM, DCM, and M&A
transactions in 2022, particularly in the GCC as the region
witnessed favorable investor sentiment following the
surge in oil prices witnessed during the year. The division
advised on a multitude of landmark transactions in the
GCC,
International Restaurants’
dual listing between the Abu Dhabi Securities Exchange
including Americana
EFG Hermes Holding achieved major milestones on a Group-
wide scale, delivering outstanding financial and operational
results across its core operations and lines of business and
creating meaningful impact across its geographical footprint.
(ADX) and the Saudi Exchange, Taaleem’s IPO on the
DFM, Riyadh Cables’ IPO on the Saudi Exchange, and
Borouge plc’s IPO on the ADX, among others. I am also
happy to say that the division expanded its capacities to
Kuwait, advising on Ali Alghanim and Sons Automotive
Company’s private placement ahead of its IPO on Boursa
Kuwait, marking the first IPO on the Kuwaiti exchange
since 2020. These transactions perfectly align with our
strategy to bring to market quality investment prospects
that are strategic and value-accretive for local and global
investors alike. Similarly, the Brokerage division contin-
ues to drive growth for the Group, sustaining its leading
positions across its markets of operations. In 2022, the
division successfully ranked first on the Egyptian Ex-
change (EGX) and the Dubai Financial Market (DFM) and
second in Abu Dhabi and in Kuwait. On the buy side of the
business, the Private Equity division continues to drive
investments in the renewable energy, healthcare, and
education sectors, sustaining its position as a long-term
impact investor across key industries. Building on its suc-
cessful acquisition of Spain-based Ignis Energy Holdings
in 2021, our renewables-focused platform Vortex Energy
continued to ramp up its investments in Ignis, helping the
integrated renewables player boost its capacities and
capture a large share of demand for alternative energy
solutions in the European region. As we gear up for 2023,
Vortex Energy looks to venture into more fields, including
energy storage and electrical vehicle (EV) charging, as it
continues to lay the foundation for the transition toward
clean energy and a net-zero future.
I am also pleased with the exceptional performance of
our flagship NBFI platform, which continues to unlock
access to finance through its comprehensive suite of
offerings, including consumer financing through valU,
microfinance through Tanmeyah, leasing and factoring
through EFG Hermes Corp-Solutions, insurance through
Kaf, e-payments through PayTabs Egypt, and mortgage
finance through Bedaya. 2022 saw the various entities
under our NBFI umbrella come together seamlessly to
help Egyptians of all income levels build the lives they
want to live and alleviate their financial burdens, in
addition to helping businesses of all sizes deliver on their
growth and expansion plans.
Our third vertical, the commercial bank, continues to
play a pivotal role in providing retail banking services to
individual clients and corporate debt services to a wide
range of institutional clients. During 2022, aiBANK was
successful in providing financing for clients of both valU
and used vehicles marketplace Sylndr, in addition to act-
ing as the lender on EFG Hermes Corp-Solutions’ debt
arrangement for MARAKEZ, as part of the latter’s financ-
ing package for its flagship Mall of Arabia. Going forward,
I am confident that our acquisition of aiBANK will unlock
more synergistic prospects across the Group.
While I am very proud of the tremendous success wit-
nessed across the Group’s operational footprint this year, I
am equally proud of our ability to uphold our commitment
and responsibility toward the sustainable development of
the community in which we live and work, as we continue
to contribute to the improvement of Egypt’s underserved
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Annual Report 2022 | EFG Hermes Holding | 13
Strategic Direction
It is our agility that enables us to effectively combat volatility
and persevere even during the most testing times.
governorates. In 2022 alone, the EFG Hermes Founda-
tion signed an MoU with the Ministry of Social Solidarity
to take part in the Haya Karima initiative, a presidential
initiative that aims to alleviate burdens on citizens in rural
communities and urban slums, enhancing their quality of
life through a set of initiatives that cover services, devel-
opment, and production activities. Through this MoU, we
have collaboratively begun rehabilitating 26 houses in the
area of Al-Deir, Esna, in the Luxor governorate. Addition-
ally, the Group came together with aiBANK to sponsor and
support the National Initiative for Green Smart Projects in
Egypt — a program that fell in line with the principles that
were presented at COP27 — in efforts to achieve sustain-
able development as part of Egypt’s Vision 2030. The
Foundation also partnered with the Ministry of Education
and Technical Education to transition over 100 Schools in
Luxor and Aswan to clean solar energy. These accomplish-
ments are a culmination of our efforts to create deep im-
pact across our community, underscoring the importance
of responsible financing and how much we value ESG
frameworks within our organization.
In closing, I would like to take the opportunity to thank our
esteemed Board of Directors, whose term comes to an
end this year, for yet another remarkable year of service.
The Board has been at the helm of EFG Hermes Holding’s
success in 2022 and an invaluable asset providing con-
tinuous guidance and support as we navigated through
a turbulent macroeconomic environment. Over the years,
EFG Hermes Holding has gone from strength to strength,
growing its portfolio to complement its bespoke offering
in the market and breaking ground in new markets — all of
which would not have been possible without the efforts
and diversified expertise of its board members. I would
also like to thank our senior management and our teams
for their continuous efforts and tremendous work this
year. It is our people who have helped shape EFG Hermes
Holding into what it is today, and I could not be prouder
to be working alongside the individuals who have single-
handedly grown the business into what it is today — an
impact-driven institution that continues to raise the bar in
the financial services industry for people from all walks of
life and businesses of all sizes.
Going into 2023, and while global market conditions
remain difficult, I am confident in our ability to continue
withstanding and rising above the challenges that come
our way. It is our agility that enables us to effectively com-
bat volatility and persevere even during the most testing
times. We will continue capitalizing on our track record
and the unparalleled capabilities of our teams to sustain
our ironclad position as the leading financial services
institution in Frontier and Emerging Markets (FEM), con-
tinuously providing the market with the most compelling
opportunities that create value across the board.
Mona Zulficar
Non-Executive Chairperson
EFG Hermes Holding
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Annual Report 2022 | EFG Hermes Holding | 15
Strategic Direction
Despite the challenges, we ended the year with a solid set of
results and reported successes across numerous metrics backed
by prudent balance sheet management and the solid operational
performance of many of our divisions.
2022 was a year rife with external challenges for us as a
Firm and the world over. The easing of pandemic-related
constraints, the Russia-Ukraine war, inflationary pres-
sures, and subsequent monetary tightening were just
some of the factors shaping the global macro environ-
ment and, in turn, impacting the geographies in which we
operate. While GCC jurisdictions benefited from a high
oil cycle and a boom in economic activity, our offices
in non-oil-producing countries were less immune to the
unfavorable global environment. Despite the challenges,
we ended the year with a solid set of results and reported
successes across numerous metrics backed by prudent
balance sheet management and the solid operational
performance of many of our divisions.
In saying this, we must consistently look inwardly at the
work we still must do on all fronts to meet the expecta-
tions of our stakeholders. As we brace for the challenges
ahead with the knowhow of the year that just ended un-
der our belts, we’re entering 2023 with a more dynamic
approach that will allow us to adapt to externalities while
remaining committed to a vision and execution strategy
guided by our 6Ps: People, Positioning, Presence, Prod-
ucts, Profitability, and Public Responsibility.
Key to this will be supporting expansions that yield long-
term results while, at the same time, optimizing our ser-
vice portfolio to conserve capital and lean out expenses
to increase our efficiency metrics. Although we will not
be expanding our physical Presence in the year ahead,
we will continue to focus on growing our positioning and
businesses outside Egypt. We remain extremely bullish
on growth prospects in the GCC and will focus further
on our three key markets of the UAE, Saudi Arabia, and
Kuwait as we diversify our revenue base in 2023. In
Egypt, cross-selling will become the theme for 2023
as we serve our corporate and retail client base with a
growing Product suite that includes commercial banking,
BNPL services, leasing, advisory, and brokerage, among
others. This increased cross-selling should also improve
our Profitability — the lynchpin of our performance met-
rics considering the trickle-down impact on our entire
stakeholder base.
At the same time, making returns without compromising
our commitment to the people and communities we do
business in is a core value we have long held. Public Re-
sponsibility, which encompasses a strong commitment
to environmental, social, and governance (ESG) best
practices, is not a pillar we use to enhance our image to
stakeholders but the driving force behind everything we
do. As such, 2023 will also see us further integrate ESG
performance metrics and mitigation strategies into all
our businesses.
Finally, and most importantly, People will continue to be
the most important pillar of our success. Inflation and,
in some jurisdictions, extenuating circumstances like
natural disasters have made this a challenging year for
our EFG Hermes Holding family. As such, supporting our
best and brightest by ensuring they are rewarded for the
value they bring to the company, are given clear growth
paths, and learning and development opportunities will
remain a top priority as we maintain our position as an
undisputed employer of choice for our people.
While the road ahead remains unclear, we are steadfast
in our belief that a healthy balance sheet, a diverse busi-
ness model, and an employee base that continues to
include some of the brightest and most dedicated in the
business will carry us through. I want to take this oppor-
tunity to thank our esteemed Board of Directors for their
stalwart guidance throughout the year just ended, our
management teams across the region for their measured
and strategic leadership, as well as the people serving
and advising our clients, developing innovative products
and solutions, and making sure the Firm runs with ease
and efficiency. Only by having a shared understanding of
what we want to build for the future and a collective com-
mitment to seeing it through can we weather the events
of tomorrow — whatever they may be — to ensure we
maintain our Positioning as the region’s largest and most
innovative financial services corporation.
Karim Awad
Group Chief Executive Officer
EFG Hermes Holding
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Annual Report 2022 | EFG Hermes Holding | 17
A NOTE FROM OURGROUP CEO Strategic Direction
MANAGEMENT
DISCUSSION AND ANALYSIS
EFG Hermes Holding recorded double-digit growth across its top and bottom lines in 2022, pri-
marily driven by the remarkable performance across its three operational verticals, the Investment
Bank, the Non-Bank Financial Institutions (NBFI) platform, and the Commercial Bank.
Overview
Notwithstanding the macroeconomic headwinds wit-
nessed in 2022, EFG Hermes Holding achieved strong
growth during the year, recording operating revenues of
EGP 11 billion — a substantial increase of 77% Y-o-Y from
the EGP 6.2 billion booked in the previous year, which was
primarily driven by the solid performance delivered across
the Group’s three verticals.
EFG Hermes, the leading Investment Bank franchise in
Frontier and Emerging Markets (FEM), recorded revenues of
EGP 6.2 billion at year-end 2022, reflecting a Y-o-Y increase
of 58% and representing 56% of the Group’s consolidated
top line, mainly on the back of the strong performance of
the vertical’s sell-side business, which witnessed a 38%
growth Y-o-Y to stand at EGP 2.5 billion. The Firm’s Invest-
ment Banking division continued to leverage its unrivaled
placement and execution capacities to advise on the
region’s most prominent and compelling equity, debt, and
M&A transactions. As a result of its immense efforts, and
having advised on a total of 32 transactions worth an ag-
gregate of USD 14.3 billion, the division registered revenues
of EGP 748 million, reflecting an increase of 51% Y-o-Y. On
the buy-side, the business recorded revenues amounting to
EGP 723 million, reflecting a Y-o-Y increase of 14%.
The NBFI platform, which represented 23% of the Group’s
total top line, reported revenues of EGP 2.5 billion, reflecting a
Y-o-Y growth of 28%, on the back of the strong performance
delivered across the platform’s subsidiaries, particularly the
twofold increase in revenues reported by valU, the MENA
region’s leading lifestyle-enabling fintech platform.
The Group’s commercial bank, aiBANK, which contributed
an impressive 20% to the Group’s total top line, recorded
revenues of EGP 2.2 billion and a net profit after tax (NPAT)
of EGP 515 million. This was driven by the substantial
increase in net fees and commissions on the back of the
bank’s growth in trade finance transactions and an acceler-
ated increase in the booking of retail loans.
EFG Hermes Holding’s operating expenses increased by
85% Y-o-Y in 2022 to reach EGP 7.3 billion due to rising
inflationary pressures, the USD-denominated expenses
incurred across the Group’s regional offices, higher salaries,
and the substantial growth of the Group’s business op-
erations and subsidiaries during the year, particularly valU,
which saw significant improvement across its operations
and portfolio.
EFG Hermes Holding’s net profit after tax and minority
interest came in at EGP 1.8 billion — an 18% Y-o-Y increase
from the previous year, which was relatively subdued by
higher taxes, mainly incurred by aiBANK, in addition to the
deferred tax of EGP 399 million on unrealized gains on in-
vestments and seed capital and foreign exchange gains on
the Investment Bank’s side.
Group Revenues (EGP mn)
Group Net Profit (EGP mn)
10,959
1,840
1,553
6,187
5,432
4,802
4,006
3,630
1,378
1,305
1,225
1,012
2022
2021 2020 2019* 2018* 2017
2022
2021
2020
2019* 2018* 2017
* Revenues and net profit figures for 2018 and 2019 are adjusted to reflect IFRS 16
18 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 19
Strategic Direction
Revenue Contribution by Platform
74 %
63 %
56 %
32 %
26 %
23 %
Investment Bank
NBFIs
2022
2021
2020
20 %
5 %
aiBANK
21.7
22.2
NPAT Contribution by Platform
100 %
75 %
61 %
Group Financial Highlights
In EGP mn
Group Operating Revenue
Investment Bank
NBFIs
aiBANK
Group Operating Expenses
Group Net Operating Profit
Group Net Operating Profit Margin
FY22
10,959
6,165
2,549
2,245
7,268
3,691
34%
Group Net Profit after Tax & Minority Interest
1,840
Investment Bank
NBFIs
aiBANK
Group Revenue by LOB
1,130
447
263
FY21
6,187
3,892
1,989
306
3,920
2,266
37%
1,553
1,172
344
37
Change
77%
58%
28%
634%
85%
63%
-
18%
-4%
30%
610%
FY22
FY21
24 %
22 %
Investment Bank
2022
NBFIs
2021
2020
14 %
2%
aiBANK
EGP mn
Securities Brokerage
Investment Banking
Asset Management
Private Equity
Leasing
Tanmeyah
valU
Factoring
Holding & Treasury Activities
FY22
1,780
748
553
171
294
1,499
650
83
2,914
FY21
1,341
494
528
109
215
1,427
302
58
1,420
20 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 21
Strategic Direction
The Investment Bank
6.2 EGP
BN
Investment Bank revenues in 2022,
up 58% Y-o-Y
Securities Brokerage
In 2022, EFG Hermes' Securities Brokerage division con-
cluded executions worth USD 96.3 billion, reflecting an
increase of 36% Y-o-Y, driven by the rise in MENA market
executions, particularly in Saudi Arabia, Qatar, and the UAE.
The division booked revenues amounting to EGP 1.8 billion
by the end of 2022, reflecting an increase of 33% Y-o-Y
from the revenues registered in the prior year, mainly driven
by the stronger revenues generated from the UAE, Saudi
Arabia, Kuwait, Egypt, and Qatar.
Regarding contribution to pure brokerage commissions,
Egypt and the UAE markets (Dubai and Abu Dhabi) shared
the first place with a contribution of 19% each, followed by
Saudi Arabia and Kuwait with a 16% contribution each. Qatar
followed with a contribution of 13%, and frontier markets,
including Nigeria, Kenya, Pakistan, and other frontier execu-
tions, came in fourth with a 6.5% contribution.
As a result of its solid performance during the year, EFG
Hermes was successful in sustaining its leading position as
the broker of choice across its footprint, having maintained
its first-place ranking on the EGX, with a market share of
40.2%. Additionally, in its home market of Egypt, the Firm
successfully retained 78% of the 25.8% foreign participa-
tion for the year. In the UAE, EFG Hermes maintained its
first-place ranking on the DFM, with a market share of 41.1%
in 2022 and successfully captured 43% of inflows from the
40% foreign participation in the market. In Abu Dhabi, the
Firm fortified its second-place ranking on the ADX, with a
market share of 14.7%, capturing 32% of the 18% of foreign
flows in the market. In Saudi Arabia, EFG Hermes was sixth
among pure brokers (non-commercial banks), with a 4.4%
market share in 2022. In Kuwait, the Firm ranked second on
Boursa Kuwait, with a market share of 32.8% at year-end
2022. In Oman, the Firm ranked fifth, with a market share of
17.3%. In Jordan, the Firm ranked 12th in 2022, with a market
share of 6.3%, and captured 24% of the 3% in foreign activity
witnessed in the market.
In frontier markets, the Pakistani market index declined
by 9.4% Y-o-Y and volumes decreased by 58% Y-o-Y. The
foreign activity also continued to drop, at 7% of total market
turnover in 2022, of which the Firm successfully captured
12%. By the end of the year, the Firm had recorded a market
share of 3.7% in Pakistan. In Kenya, the Firm sustained its
first-place ranking for the third consecutive year, recording a
market share of 70.0% in 2022, which was primarily driven by
the increase in foreign executions during the year. In Nigeria,
the Firm placed fifth in 2022, with a market share of 9.9%.
Research
During 2022, EFG Hermes’ award-winning Research division
continued to leverage its unrivaled in-house capabilities
to provide the most comprehensive and impactful FEM
research to clients around the world, initiating coverage on
22 new small- to mid-cap and large-cap stocks, with 12 of
these initiations being UAE-based companies given the sub-
stantial pipeline of prominent IPOs, and the increased trac-
tion garnered across UAE markets. By the end of the year,
the Research division had recorded a total coverage of 338
stocks in 25 countries across MENA and frontier markets.
In 2023, the division aims to deepen its MENA-based re-
search while adding new countries to its Asian coverage,
particularly in the first quarter of the year and driven by the
strong growth potential in the region.
Investment Banking
EFG Hermes’ Investment Banking division has cemented
its leading position as the regional investment bank of
EFG Hermes Holding achieved strong growth during the year,
recording operating revenues of EGP 11 billion — a substantial
increase of 77% Y-o-Y.
choice for partners and clientele in the MENA region and
FEM. Leveraging decades of industry and market acumen,
and backed by 43 industry experts, the flagship division
continues to advise on the region’s largest, most prominent
transactions in the M&A, ECM, and DCM spaces.
By the end of 2022, the division had concluded advisory on
32 ECM, DCM, and M&A transactions across its footprint,
with an aggregate value of over USD 14.3 billion, and record-
ed revenues of EGP 748 million, reflecting an increase of 51%
Y-o-Y from the EGP 494 million recorded in the previous year.
On the equity front, EFG Hermes' Investment Banking di-
vision continued to dominate the region, having advised
on the GCC region’s most notable IPOs, including leading
education provider Taaleem’s USD 204 million IPO on the
Dubai Financial Market (DFM), marking the first private
sector IPO on Dubai’s stock exchange since 2014. The
division also concluded advisory on state-owned Dubai
Electricity and Water Authority’s (DEWA) USD 6.1 billion
IPO on the DFM — the largest-ever listing in the Middle
East since Saudi Aramco’s record share sale in 2019
and a first-of-its-kind transaction for a public company
in Dubai. In Kuwait, EFG Hermes advised on the USD
323 million private placement for Ali Alghanim and Sons
Automotive Company ahead of its IPO on Boursa Kuwait,
marking the first IPO in the Kuwaiti stock market since
2020, and the largest in the country. In Saudi Arabia,
EFG Hermes advised on the USD 400 million IPO for
cable manufacturer Riyadh Cables (RCGC) on the Saudi
Exchange. In Oman, the division concluded advisory on
the USD 60.6 million IPO of Pearl REIF — Oman’s larg-
est Shariah-compliant real estate investment fund — on
the Muscat Stock Exchange (MSX). 2022 also saw the
division advise on the USD 1.8 billion IPO of Americana
Restaurants International Plc (Americana) on the Saudi
Stock Exchange and the ADX, marking the first-of-its-
kind concurrent dual listing between the two exchanges.
On the M&A front, the division acted as sell-side advisor
on the USD 500 million majority stake sale of Al Meswak
Dental Clinics, the largest dental and dermatology ser-
vice provider in Saudi Arabia. In Egypt, EFG Hermes'
Investment Banking division acted as sell-side advisor
on the acquisition of a 70% stake in two Egypt-based
maritime and terminal operating companies, Transmar
International Shipping Company (Transmar) and Trans-
cargo International (TCI), by Abu Dhabi Ports Group
(AD Ports). The transaction, valued at USD 140 million,
marked AD Ports’ first investment in Egypt. The team
also acted as buy-side advisor to the Public Investment
Fund of Saudi Arabia (PIF) on its indirect acquisition of
a significant minority stake valued at USD 126.7 million
in B.Tech, Egypt’s leading consumer electronics retailer.
Other landmark deals for the year included the sell-side
advisory on the USD 115.7 million majority acquisition of
Auf Group, a leading healthy snacks and coffee manu-
facturer and retailer in Egypt, by UAE-based Agthia, a
leading food and beverage company in the region.
22 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 23
Strategic Direction
In the DCM space, the team concluded advisory on several
securitization deals for the Firm’s subsidiaries, including EFG
Hermes Corp-Solutions on the second issuance of its secu-
ritization program, in a transaction worth USD 102.3 million,
marking the team’s largest debt transaction in 2022. Another
transaction was that of Bedaya Mortgage Finance (Bedaya),
which saw the division advise on the mortgage finance play-
er’s first securitization issuance worth EGP 651.2 million. Ad-
ditionally, the team advised real estate player Orascom Devel-
opment Egypt on the USD 81.0 million financing package for
its flagship project, O-West. Parallel to this, the team advised
MARAKEZ, a leading Saudi real estate player in Egypt, on its
USD 39.2 million debt arrangement alongside EFG Hermes
Corp-Solutions and the Firm’s commercial bank, aiBANK,
who acted as leasing partner and lender, respectively. As part
of its strategy to bring a broader range of offerings to market,
the Investment Banking division concluded advisory on CIRA
Education’s EGP 800 million future flow securitization bond of-
fering — Egypt’s first-ever future flow securitization issuance.
Asset Management
In 2022, the Group’s Asset Management division record-
ed revenues amounting to EGP 553 million, reflecting an
increase of 5% Y-o-Y from the EGP 528 million recorded
at year-end 2021. EFG Hermes’ Asset Management op-
erations in Egypt registered a 10% Y-o-Y growth in AUM,
driven by the favorable performance of equity markets
during the year, coupled with rising net inflows in money
market funds (MMFs). Regional AUM from the Firm’s
regional arm, Frontier Investment Management (FIM)
Partners, also grew in 2022 to record USD 2.7 billion,
up 5.2% Y-o-Y from the USD 2.6 billion booked one year
previously, as the division delivered a solid performance
across its funds and managed accounts, in addition to
the growth in net inflows from equity portfolios. Ad-
ditionally, FIM was successful in onboarding a new key
account during the year as a cornerstone of its strategy
to broaden its investor network.
During the year, the Asset Management division es-
tablished a new office in Muscat, Oman, to expand its
regional presence.
Private Equity
EFG Hermes’ Private Equity division focuses on driving
value-accretive investments in strategic and impact-
ful sectors. As such, the division invests in businesses
operating in key industries — including renewable en-
ergy, education, and healthcare — that generate lucrative
financial returns and social and environmental impacts.
In 2022, the division registered revenues amounting to
EGP 171 million, indicating a climb of 57% Y-o-Y.
On the renewables front, the division manages invest-
ments through its dedicated Europe-focused platform,
Vortex Energy. In 2022, Vortex Energy invested its second
tranche into Ignis Energy Holdings, bringing total invest-
ments to EUR 300 million and highlighting the strategic
importance of its long-standing relationship with the
company. The injections came as part of the plan to have
Vortex Energy invest EUR 476 million into the Spanish
renewables player through its recently launched fund
Vortex Energy IV. Through this, Vortex Energy continues
to help Ignis boost capacities, transforming into a fully
integrated renewable independent power producer (IPP)
in Spain and other geographies.
The Firm’s education platform, Egypt Education Platform
(EEP), continues to cement its position as the region’s larg-
est performing education-focused platform, broadening its
capacities in Egypt’s education sector and diversifying its
investment portfolio of leading international schools. Fol-
lowing the addition of Al Hayah International Academy to the
platform in 2021, the EEP acquired Hayah West in Sheikh Za-
yed in 2022. The EEP also concluded new acquisitions dur-
ing the year, including flagship GEMS International School in
Cairo (GISC), Trillium the Montessori house — the latter mark-
ing the platform’s first break into the burgeoning pre-K seg-
ment — and Egypt’s leading education content developer,
Selah El Telmeez (SET). Currently, the platform owns and
manages 19 schools and pre-schools under various stages
of development, with a combined capacity of approximately
21,000 students and over 11,000 enrolled students.
In the healthcare space, the Firm’s healthcare-focused
platform, Rx Healthcare Management (RxHM), delivered
strong operational and financial results in 2022 as it
continued to bolster its production capacities through
United Pharma. United Pharma recorded a significant
85% increase in revenues at the end of the year and is
well on track to achieve its 2023 targets. Parallel to the
success of United Pharma, the Rx Healthcare platform
continues to capitalize on lucrative prospects in the in-
jectables and other generic pharma segments.
Non-Bank Financial Institutions
Tanmeyah
Tanmeyah, the Firm’s microfinance arm, achieved size-
able growth across all performance metrics in 2022,
particularly in terms of productivity and efficiency. By the
end of the year, Tanmeyah recorded a superior portfolio
value of EGP 4.3 billion, reflecting a Y-o-Y increase of 18%
from EGP 3.7 billion at year-end 2021. The company also
hit a total client base of 379,000 active borrowers, mainly
due to writing-off clients worth EGP 116 million.
Tanmeyah’s total number of loans issued amounted to
371,000 by the end of the year, compared to 367,000
loans booked in 2021, with the company issuing loans
worth around EGP 28 million daily, compared to the
EGP 18 million allocated last year. While the number of
loans issued remained relatively flat during the year,
Tanmeyah focused on increasing ticket sizes, with its
MEL average ticket size rising by 32% Y-o-Y to record
EGP 1.97 thousand.
By year-end 2022, Tanmeyah’s revenues stood at EGP
1.5 billion, edging up 5% Y-o-Y despite more robust sales
on the back of a higher interest expense. Tanmeyah’s
revenues included EGP 23 million attributed to Fatura, the
company’s recently acquired retail marketplace platform.
Tanmeyah also successfully implemented its digital col-
lection plan, which was initiated during the year to cover
five of the company’s branches. Today, all of Tanmeyah’s
306 branches use digital collection platforms, with
digital collections representing 35%, equivalent to EGP
599 million, of Tanmeyah’s 4Q22 collections, of which
63% came through Fawry, 21% through O-Pay, and 16%
through Damen.
valU
valU, MENA’s leading fintech, lifestyle-enabling platform,
delivered an exceptional performance across all its
metrics in 2022. By the end of the year, valU registered
568,000 app customers and over 1 million transactions
completed through its app. With an average ticket size
of EGP 5,000, valU concluded the year with a total gross
merchandise value (GMV) of EGP 5.8 billion — a twofold
increase from the EGP 2.4 billion booked in 2021. The
fintech player’s revenues climbed by 115% Y-o-Y to EGP
2.5 EGP
BN
NBFI Platform revenues in 2022,
up 28% Y-o-Y
650 million, underpinned by a significant Y-o-Y growth in
loans issued and the value of its outstanding portfolio.
During the year, valU also acquired Paynas, a full-fledged
employee management and benefits company that of-
fers services to MSMEs in collaboration with Banque
Misr and Visa. The acquisition perfectly positions valU
to capture more opportunities and become a holistic
lifestyle-enabling platform that serves the needs of
multiple segments with progressive and convenient
financial solutions.
Working with EFG Hermes Investment Banking, 2022
saw valU issue its second and third securitized bond of-
ferings, worth EGP 532.6 million and EGP 854.5 million,
respectively. Both issuances came as part of a broader
EGP 2 billion program to support the company’s expan-
sion plans.
EFG Hermes Corp-Solutions – Leasing
EFG Hermes Corp-Solutions’ leasing arm recorded a
total value of bookings amounting to EGP 4.4 billion — an
increase of 12% Y-o-Y from the EGP 3.9 billion recorded
in 2021. As a result of its portfolio growth for the year and
the gains generated from its second securitized bond of-
fering worth EGP 2.0 billion, EFG Hermes Corp-Solutions’
leasing business recorded revenues amounting to EGP
294 million — an increase of 37% Y-o-Y from the EGP 215
million registered in 2021 and representing 12% of total
NFBI top line.
During the year, the leasing arm forged a series of sig-
nificant partnerships, including its signing of a USD 25
million deal with Transmar, a wholly owned subsidiary
of IACC Holdings and Egypt’s only container shipping
line, to finance the purchase of a cargo vessel, Transmar
Legacy. The landmark transaction, which saw a col-
laboration between EFG Hermes Holding’s Investment
24 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 25
Strategic Direction
Banking division and EFG Hermes Corp-Solutions,
marked the leasing player’s strategic entry into the high-
potential maritime sector.
EFG Hermes Corp-Solutions – Factoring
2022 was an exceptional year for EFG Hermes Corp-
Solutions’ factoring business, which successfully grew
its portfolio by 36%, recording a total value of bookings
amounting to EGP 5.3 billion versus the EGP 4.2 billion
booked one year previously. Factoring revenues for 2022
climbed by 43% Y-o-Y to EGP 83 million due to higher net
interest income, fees, and commissions.
2022 saw EFG Hermes Corp-Solutions’ factoring arm
extend its services to leading MENA logistics and trans-
portation player TruKKer in a debt facility worth EGP
38 million. The partnership is slated to enable TruKKer
to expand its operations in the Egypt branch by ramp-
ing up shipments and facilitating swifter payments. It
also signed an agreement with oil and gas leader PICO
Energy in a structured transaction worth USD 15 million,
marking its entry into the oil and gas sector.
aiBANK
aiBANK concluded 2022 having achieved growth across
all its segments — Retail and Business Banking, SME and
Midcap, Corporate Banking, and Islamic Banking — and
registering an increase in newly banked customers during
the year, coupled with organic growth from its existing
customer base. The bank reported total net loans of EGP
19.3 billion in 2022, reflecting a 102% Y-o-Y increase from
the EGP 9.6 billion recorded in 2021, and a net interest
income of EGP 1.8 billion, reflecting an increase of 710%
Y-o-Y from the EGP 221 million recorded at year-end 2021.
The bank’s net commission income hiked by a strong
1,280% Y-o-Y to EGP 295 million, up from the EGP 21 mil-
lion recorded in the previous year, driven by the increase
in volumes of trade finance transactions and the acceler-
ated bookings of retail loans. By the end of 2022, the bank
recorded a net profit after tax (NPAT) of EGP 515 million.
P&L (IN EGP MILLION)
In EGP mn
Net Interest Income
Net Fees & Commissions
Other Revenues
Total Net Revenues
Employee Expenses
Other Operating Expenses*
Total Operating Expenses
Net Operating Profit (Loss)
Other Expenses
Net Profit (Loss)
Net Profit (Loss) After Tax
*Includes Other G&A and Provisions & ECL
**FY21 only includes figures from November and December 2021 following the acquisition of aiBANK
FY22
1,791
295
159
2,245
509
755
1,264
981
108
872
515
FY21
221
21
63
306
93
63
156
150
32
118
73
Balance Sheet (IN EGP MILLION)
In EGP mn
Cash & Due from Central Bank
Due from Banks
Net Loans & Advances
Financial Investments
Other Assets
Total Assets
Due to Banks
Customer Deposits
Other Liabilities
Total Liabilities
Total Shareholders’ Equity
Balance Sheet Indicators:
Loans/Deposits
NPLs
Coverage Ratio
Total Capital Adequacy Ratio
December 2022 December 2021
2,096
8,094
19,333
23,103
2,770
55,397
786
48,202
1,084
50,072
5,325
43%
8%
90%
20%
1,061
18,736
9,567
14,008
2,084
45,457
1,056
38,730
801
40,587
4,870
29%
16%
85%
34%
26 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 27
6.2 EGP
BN
revenues in 2022
58%
revenue growth in 2022
EFG Hermes Holding offers its wide base of
individual, institutional, and government-backed
clients a comprehensive suite of advisory and
capital management services in Frontier and
Emerging Markets.
INVESTMENT BANK Investment Bank
SELL-SIDE
OVERVIEW
in Kenya for the third consecutive year and continued to
strengthen its position in Pakistan and Nigeria.
Another landmark milestone we take pride in is the first
in-person iteration of our flagship One on One Conference
following the onset of the COVID-19 pandemic, which took
place in September 2022. The conference facilitated thou-
sands of meetings, bringing together hundreds of regional
and global investors seeking the region's most value-accre-
tive investment opportunities. We were incredibly proud of
the success of this iteration.
On the investment banking side, our flagship Investment
Banking division performed remarkably during 2022, leverag-
ing its unrivaled execution capabilities to advise on the most
prominent ECM, DCM, and M&A deals across the region. The
highlight for 2022 — and something we are incredibly proud
of — was our ability to capitalize on the significant boom in
ECM activity in the GCC, which has rapidly grown to become
an investment haven for regional and global investors alike.
Our Investment Banking division has undoubtedly played a
pivotal role in making these offerings happen and bringing a
wider range of high-value investment prospects to market.
The division facilitated a total of 12 ECM transactions in 2022,
10 of which were IPOs, including the USD 6.1 billion listing of
Dubai utility player DEWA, the USD 724 million initial public
offering of Empower on the Dubai Financial Market (DFM),
and the USD 1.0 billion listing of Dubai’s exclusive toll-gate
operator Salik on the DFM. Another landmark transaction
the division advised on was the USD 1.8 billion dual-listing
of restaurant-chain operator Americana on the ADX and the
Saudi Exchange — a never-before-seen listing between
both exchanges — and the USD 378 million IPO of Riyadh
Cables Group (RCGC) — the largest cable manufacturer in
the region — during the year. The division also advised on
education provider Taaleem’s USD 204 million IPO on the
DFM, the USD 2.0 billion listing of Borouge on the Abu Dhabi
Exchange (ADX), and Ali Alghanim and Sons Automotive
Company’s USD 323 million private placement ahead of
Despite the challenging global macroeconomic environ-
ment, 2022 was an incredibly successful year for EFG
Hermes’ sell-side business. Despite rising inflationary pres-
sures and interest rates, currency devaluations, and politi-
cal instability, I am happy to say that each division under the
sell-side umbrella came out strong, rising above the hurdles
and delivering exceptional operational and financial results.
Our premier Brokerage franchise witnessed a record-breaking
year, substantially capitalizing on the volatility in the MENA re-
gion’s markets to increase traded volumes and market shares,
particularly in the GCC region. By year-end 2022, the division
successfully sustained its rankings across most of its focus
markets, ranking first on the EGX and the DFM and second in
Abu Dhabi and Kuwait. Leveraging the region's highly volatile
trading environment, we successfully attracted a more ex-
tensive client base across our online trading platform, EFG
Hermes One, and unlocked a larger number of MENA-focused
prospects for our investors. In the frontier markets in which we
operate, our Brokerage division delivered a commendable
performance despite the region's lingering macroeconomic
and political challenges. The division was the highest ranked
its IPO on Boursa Kuwait — the first international IPO on the
Kuwaiti exchange since 2020. In Oman, the division advised
on the USD 60.6 million IPO of Pearl REIF — Oman’s largest
Shariah-compliant real estate investment fund — on the
Muscat Stock Exchange (MSX).
On the M&A front, EFG Hermes Investment Banking acted
as sell-side advisor on the acquisition of a 70% stake in two
Egypt-based maritime and terminal operating companies,
Transmar International Shipping Company (Transmar) and
Transcargo International (TCI), by Abu Dhabi Ports Group
(AD Ports). The transaction, valued at USD 140 million,
marked AD Ports’ first investment in Egypt. The team also
acted as buy-side advisor to the Public Investment Fund of
Saudi Arabia (PIF) on its indirect acquisition of a significant
minority stake in B.Tech, Egypt’s leading consumer elec-
tronics retailer. Other landmark deals for the year included
the sell-side advisory on the USD 115.7 million majority ac-
quisition of Auf Group, a leading healthy snacks and coffee
manufacturer as well as retailer in Egypt, by UAE-based
Agthia, a leading food and beverage company in the region.
Alongside the success of our Brokerage and Investment
Banking divisions, our Research division was once again
recognized as the chief regional provider of fundamental-
based research, facilitating well-rounded products, tools,
and insights for our teams and clientele across the board.
During the year, the division expanded coverage to 338
stocks, focusing on expanding its presence in Southeast
Asia as part and parcel of our strategy to broaden our
research coverage regionally. Additionally, the division sup-
ported the Firm’s Investment Banking division in advising
on the region’s largest IPOs — all of which were closed with
the help of the Research division’s unrivaled insights.
Despite the world witnessing consequential incidents, our
goals for next year stay the same — to continue building on
the tremendous success we have worked so tenaciously to
achieve over the last four decades. On the investment banking
front, we will continue to capitalize on the ever-growing de-
mand in the markets where we operate by offering the most
compelling ECM, DCM, and M&A propositions. The GCC has
proven to be a market to watch, and the significant ramp-up in
ECM activity over the last year is something we aim to propel
going forward. In our home market of Egypt, we continue to
see growing demand for DCM products. We aim to capitalize
on this by bringing to market alternative financing solutions
that enable our clients to deliver on their expansion plans. Our
efforts in Egypt in 2022 also paid off on the M&A front. Having
closed several cross-border deals, we plan to continue building
on this by connecting global capital to local opportunities that
position Egypt as a value-accretive investment destination.
On the brokerage front, and in efforts to ramp up the busi-
ness from a fintech perspective, we are looking to bring our
online, award-winning, and cutting-edge trading platform,
EFG Hermes One, to more GCC markets, expanding our
online presence and facilitating online trading in the region.
On the research front, the division seeks to branch out from
its current coverage portfolio and continue focusing on
more attractive Southeast Asian markets, such as Indone-
sia, Thailand, and the Philippines. It also aims to broaden
its product offerings to ensure more diversified insights for
EFG Hermes Holding and its clients.
As we dive into 2023, we remain confident in our abil-
ity to continue building on our track record of remarkable
achievements over the years. We are excited to see what
the year holds for us in the sell-side business as we remain
committed to our clients, partners, and the markets in
which we operate. This commitment we so fiercely honor
enables us to continue delivering exceptional performance
across all metrics, year on year.
Mohamed Ebeid
Co-CEO of the Investment Bank
30 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 31
Investment Bank
SECURITIES
BROKERAGE
Overview
EFG Hermes' Securities Brokerage division is the MENA
region’s leading brokerage house offering a wide range of
innovative and tailored products and services, secure multi-
platform trading tools, market intelligence and insights, and
unparalleled execution capabilities, ensuring maximum
generated returns tailored to different investor preferences
and risk profiles. The division boasts an expansive four-
continent presence across the MENA region and FEM and
operates in countries that include Egypt, Kuwait, the UAE,
Saudi Arabia, Oman, Jordan, Pakistan, Kenya, Nigeria, and
Bangladesh, with regional offices in the US and the UK.
Operational Highlights of 2022
The Brokerage division ended the year on a strong note,
having delivered a solid performance across its operational
footprint by focusing on bolstering its performance across
its core markets of operations. As a result, the division
witnessed an expansion in traded volumes across most re-
gions during the year and a substantial growth in its market
shares across the board.
By the end of the year, the Brokerage division registered
an increase of 33% Y-o-Y in revenues to stand at EGP 1.8
billion, primarily driven by the increase in executions in
the MENA region, including Saudi Arabia, the UAE, Qatar,
and Kuwait. In terms of pure commissions registered in
regional markets, Egypt and the UAE markets, including
Dubai and Abu Dhabi, came in at first place with a contri-
bution of 19% each, followed by Saudi Arabia and Kuwait,
with each registering a contribution of 16%. As a result of
its revenue growth, the division’s regional market shares
climbed during the year.
In its home market of Egypt, the division successfully
sustained its first-place ranking on the EGX, closing the
year with a market share of 40.2%, up from a market share
of 33.8% booked in 2021. This was mainly driven by the
currency devaluation of the Egyptian pound that occurred
this year, which sparked a significant increase in traded
volumes. Foreign participation came in at 25.8% during the
year, with EFG Hermes successfully capturing over 78% of
these institutional inflows.
In 2022, Kuwait was one of the GCC countries that wit-
nessed a significant ramp up in traded volumes, primar-
ily driven by the oil price surges witnessed during the
year, and the healthy investor sentiment in the Kuwaiti
financial market. Additionally, the year saw homegrown
Kuwaiti automotive brand, Ali Alghanim and Sons, issue
an IPO on Boursa Kuwait, which broke ground as the
first IPO on the exchange since 2020, spurring demand
for more local businesses to go public in the market.
Capitalizing on this pent-up demand, the Brokerage divi-
sion maintained its second-place ranking in 2022, with
a market share of 32.8% — a 3.2% increase Y-o-Y from
the 29.6% recorded in 2021 — and over 60% of foreign
institutional inflows captured.
In the UAE, the Brokerage division managed to grow its
market share on the back of the hike in GCC and local trad-
ing on the retail and institutional fronts and the substantial
ramp up in IPOs witnessed during the year. In Dubai, EFG
Hermes' Securities Brokerage division sustained its first-
place ranking on the DFM, with a market share of 41.1% at
year-end 2022, up 5.2% from the 35.8% registered in 2021.
On the ADX, EFG Hermes’ market share stood at a solid
14.7% by the end of the year, maintaining its second-place
ranking on the exchange.
In Saudi Arabia, despite the drop in market volumes, the
Brokerage division managed to grow its market share in
the kingdom, recording a twofold increase from 2% in 2021
to 4.4% in 2022. This was mainly fueled by the increase in
foreign institutional activity during the year.
Activity in Oman and Jordan remained relatively flat for the
year and saw the division sustain its market share in both
markets, standing at 17.3% in Oman and 6.3% in Jordan.
The Firm’s Direct Market Access (DMA) trading platform
made progress throughout the year, automatically linking
foreign institutional investors to the system’s database as
part of the Firm’s efforts to contribute to promoting digital
transformation, and enabling them to directly submit their
orders into the market. With this significant development
in the digital brokerage space, EFG Hermes continues to
introduce innovative financial solutions to its investors and
expand its product and service offerings.
32 | EFG Hermes Holding | Annual Report 2022
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Investment Bank
Egypt
UAE – DFM
UAE – ADX
UAE – NASDAQ Dubai
Kuwait
Kenya
Nigeria
Oman
KSA
Jordan
Pakistan
FY22
FY21
Market Share
Rank
Market Share
Rank
40.2%
41.1%
14.7%
30.08%
32.8%
70.0%
9.9%
17.3%
4.4%
6.3%
3.7%
1st
1st
2nd
1st
2nd
1st
5th
5th
6th*
12th
n/a
-
33.8%
35.8%
13.6%
34.1%
29.6%
60.8%
5.7%
16.6%
2%
6%
3.6%
*Among brokers not linked to commercial banks
Frontier Markets
2022 was a relatively challenging year for frontier mar-
kets, primarily driven by the unstable macroeconomic
environment witnessed during the year. In Pakistan, the
market witnessed another tough year on the back of
macroeconomic and political volatility, which resulted
in lower volumes and a decline in market activity for the
year. As such, investors were bearish on the market, and
EFG Hermes’ market share stood at 3.66% by the end
of the year.
In Kenya, despite the rising pressures on the back of cur-
rency devaluations, foreign inflows were the main driver
that stabilized the market for another year, and the division
managed to cement its first-place position with a 70.01%
market share.
Meanwhile in Nigeria, EFG Hermes leveraged the strides
made in the previous years, standing as the fifth leading
broker in the country with a 9.91% market share.
Online Trading
In 2022, the Firm’s world-class online trading, EFG Hermes
One, garnered significant traction, particularly following
the revamp of the application in 2021 in efforts to enable
investors to tap into a wealth of investment knowledge,
execute informed trades, and monitor their portfolios in
real-time through a simpler, user-friendly interface and
new exclusive features. GCC markets in particular came
out strong on the digital platform, driven by the hikes in oil
prices during the year. Nonetheless, the strong volatility
surrounding the US market, primarily driven by the hikes in
interest rates, resulted in a slight drop in revenues gener-
ated through the application on global trading.
Structured Products
The Structured Product Desk was launched in 2016 as an inte-
gral part of the Firm’s strategy to grow its capital market busi-
ness and deliver a suite of diverse products to the franchise.
In 2022, the division's Structured Product Desk’s revenues
34 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 35
Investment Bank
declined by 25% Y-o-Y to record EGP 60 million versus the
EGP 79 million booked at year-end 2021.
Unique Corporate Access
To unlock lucrative investment prospects for global
and regional investors across key sectors in the world’s
most promising markets, EFG Hermes held its 16th One
on One Conference in September 2022, marking its first
in-person iteration since the onset of COVID-19. The
conference witnessed the participation of 205 compa-
nies from 33 countries in direct meetings with over 655
institutional investors and fund managers representing
270 international institutions. The 17th iteration of the
conference is slated to take place in March 2023 and is
anticipated to have an even wider turnout.
Key Financial Highlights 2022
Brokerage division’s revenues grew 33% Y-o-Y to EGP 1.8
billion in 2022, on the back of the favorable market condi-
tions resulting in higher volumes across multiple of the
Firm’s core markets of operation.
Commission Breakdown by Market FY22
Egypt
DFM*
ADX
KSA
Kuwait
Qatar
Frontier Markets
Structured Products
Others**
Total
FY22
19.1%
7.4%
11.9%
15.6%
16.4%
13.4%
6.5%
1.8%
7.7%
100%
*DFM includes Nasdaq Dubai’s share of 0.01% in 4Q22 and FY22
** Others include: Oman, Jordan, Lebanon, UK (GDRs), Bonds, and
EFG Hermes One
Brokerage Revenue* EGP millions
2022
2021
Egypt
UAE
KSA
Kuwait
Frontier Markets**
Structured Products
Fixed Income
Others**
Total Revenue
FY22
812
316
198
225
112
60
16
41
1,780
FY21
652
187
97
155
136
79
0
35
1,341
*Brokerage revenues highlighted above represent operations and not markets
** Frontier Markets include Pakistan, Kenya, Nigeria, and others
***Others include: Jordan, Oman, and Bahrain
36 | EFG Hermes Holding | Annual Report 2022
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Investment Bank
Average Daily Commissions (USD ‘000)
2022
2021
330
282
Best Broker – Egypt
Best Broker – Nigeria
Best Broker – Kenya
Best Broker – MENA
Awards
EMEA Finance African Banking Awards 2022
EMEA Finance African Banking Awards 2022
EMEA Finance African Banking Awards 2022
GLOBAL INVESTOR: 2022 MENA Awards
Best Broker – Pan-Africa
EMEA Finance African Banking Awards 2022
Best Broker – Egypt
Best Broker – UAE
Best Broker – Oman
GLOBAL INVESTOR: 2022 MENA Awards
GLOBAL INVESTOR: 2022 MENA Awards
GLOBAL INVESTOR: 2022 MENA Awards
Best Broker – Saudi Arabia
GLOBAL INVESTOR: 2022 MENA Awards
Best Broker – Kuwait
GLOBAL INVESTOR: 2022 MENA Awards
Best International Brokerages – Pakistan
Asiamoney Brokers Poll 2022
Brokerage Services – Africa
AGF Service Providers Awards 2022
Best Trading Platform – EFG Hermes One
Entrepreneur Middle East Leaders in FinTech Award 2022
Forward-Looking Strategy
Going forward, the Brokerage division aims to capitalize
on the rapid recovery witnessed across its core markets,
and to continue building on the exceptional performance
it has delivered in 2022. In its home market, the division
aims to continue to leverage its substantial portfolio of
institutional investors, with an eye to further increase its
market share. In the GCC region, the significant boom
in the region’s equity markets following the increase in
oil prices and prominent IPOs will continue to unlock
numerous opportunities for regional and global investors
and generate healthy trade volumes across the board.
Leveraging its leading market positions on the GCC’s
exchanges, the division is perfectly positioned to capture
an even larger share of the market and generate higher
foreign institutional flows. In global markets, the strong
uncertainty surrounding the interest and inflation rate
environment continues to pose investment challenges
and concerns, which are expected to linger in 2023. On
the frontier and emerging side, the Brokerage division
continues to focus on strengthening its performance
in its core markets; Egypt, United Arab Emirates, Saudi
Arabia, Kuwait, Kenya, and Nigeria. To bolster its online
platform’s presence beyond Egypt and Kenya, the divi-
sion aims to introduce its flagship EFG Hermes One
platform to new markets, including Kuwait, the UAE as
well as others.
38 | EFG Hermes Holding | Annual Report 2022
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Investment Bank
INVESTMENT
BANKING
Overview
EFG Hermes' Investment Banking division has grown over
the years to become the region’s most trusted advisory
house and has successfully cemented its leading position
as the regional Investment Banking franchise of choice for
partners and clients in the MENA region and FEM. Leverag-
ing decades of industry and market acumen, the division
continues to advise on the region’s largest, most prominent
transactions in the M&A, ECM, and DCM spaces by lever-
aging the multidisciplinary experience of over 40 profes-
sionals. It provides its clients with key economic, industry,
market, and company-focused insights, steering the region
with its solid on-the-ground presence and expansive track
record. By the end of 2022, the division recorded a total of
32 ECM, DCM, and M&A transactions across its footprint,
with an aggregate value of over USD 14.3 billion.
Operational Highlights of 2022
In light of the Russia-Ukraine war, rising inflationary pres-
sures, currency devaluations, and a high interest-rate envi-
ronment, 2022 was a challenging year for global markets.
Nonetheless, the GCC region came out strong, driven by
a solid crude oil market and government initiatives that
bolstered capital markets and investor sentiment. In 2022,
ECM activity in the GCC boomed, with the UAE, Saudi
Arabia, Kuwait, and Oman collectively seeing a record-high
number of mega-hit IPOs.
EFG Hermes’ Investment Banking division concluded the
year having captured a large share of the most significant
transactions in the GCC region. The division closed 13 DCM
transactions valued at USD 453 million, 12 ECM transactions
valued at USD 12.8 billion, and seven M&A transactions
worth USD 1.1 billion. As a result of its strong performance in
the equity capital market space, the division placed second
on the Refinitiv ECM 2022 League Table.
ECM
In Dubai, the division advised on leading education pro-
vider Taaleem’s USD 204 million IPO on the DFM, marking
the first private-sector IPO on the DFM since 2014. The
transaction also saw the Investment Banking division
transition from its typical joint bookrunner role to acting
as a joint global coordinator on the listing. The division
also concluded advisory on state-owned Dubai Electricity
and Water Authority’s (DEWA) USD 6.1 billion IPO on the
DFM — the largest ever listing in the Middle East since
Saudi Aramco’s IPO in 2019 and the first for a public com-
pany in Dubai. The division also advised on the USD 1.0
billion IPO of Dubai toll operator Salik and acted as joint
bookrunner on the USD 724 million IPO of Emirates Central
Cooling Systems Corporation (Empower). In Abu Dhabi,
the division successfully completed advisory on the USD
2.0 billion IPO for leading global petrochemicals manufac-
turer Borouge plc — a joint venture between Abu Dhabi
National Oil Company (ADNOC) and Borealis AG — on the
Abu Dhabi Securities Exchange (ADX), marking the largest
listing in the history of the exchange.
Breaking ground in Kuwait, EFG Hermes completed
advisory on the USD 323 million private placement for
Ali Alghanim and Sons Automotive Company ahead of
its IPO on Boursa Kuwait, for which the division acted
as joint bookrunner. Marking the first IPO in the Kuwaiti
stock market since 2020 and the largest in the country,
the transaction sparked a substantial surge in future IPO
activity in Kuwait.
2022 also saw the division act as joint bookrunner on the
landmark USD 1.8 billion IPO of Americana Restaurants
International Plc (Americana) on the Saudi Stock Exchange
and the ADX, marking the first-of-its-kind concurrent dual
listing between the two exchanges. Also on the Saudi
Exchange, the division advised on the USD 378 million IPO
for Riyadh Cables Group (RCGC) — the largest cable manu-
facturer in the region — during the year.
In Oman, the division advised on the USD 60.6 million IPO of
Pearl REIF — Oman’s largest Shariah-compliant real estate
investment fund — on the Muscat Stock Exchange (MSX).
Borouge plc IPO – Joint bookrunner on the USD 2.0 billion
initial public offering on the ADX.
In its home market, EFG Hermes acted as sole global coor-
dinator and joint bookrunner on the USD 81.7 million IPO of
Macro Group, one of the most prominent cosmeceutical play-
ers in the Egyptian market, on the Egyptian Exchange (EGX).
2022 ECM Deals
Macro Group IPO – Joint bookrunner and sole global coordi-
nator on the USD 81.7 million initial public offering on the EGX.
DEWA IPO – Joint bookrunner on the USD 6.1 billion initial
public offering on the DFM.
Salik IPO – Joint bookrunner on the USD 1.0 billion initial
public offering on the DFM.
Taaleem IPO – Joint global coordinator on the USD 204
million initial public offering on the DFM.
Empower IPO – Joint bookrunner on the USD 724 million
initial public offering on the DFM.
Riyadh Cables IPO – Joint bookrunner on the USD 378 mil-
lion initial public offering on the Saudi Exchange.
Americana Dual Listing – Joint bookrunner and underwrit-
er on the USD 1.8 billion dual listing on the ADX and Saudi
Exchange.
Ali Alghanim and Sons Automotive Company IPO – Joint
bookrunner on the USD 323 million initial public offering on
Boursa Kuwait.
Pearl REIF IPO – Joint bookrunner on the USD 60.6 million
initial public offering on the MSX.
Fawry Rights Issue – Sole financial advisor on the USD
43.2 million rights issue on the EGX.
40 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 41
Investment Bank
M&A
On the M&A front, the Firm’s Investment Banking team
delivered a solid performance during 2022, bridging the
gap between its home market of Egypt and the GCC. The
division acted as sell-side advisor on the USD 500 million
majority stake sale of Al Meswak Dental Clinics, the largest
dental and dermatology service provider in Saudi Arabia.
In Egypt, EFG Hermes' Investment Banking division acted
as sell-side advisor on the acquisition of a 70% stake in two
Egypt-based maritime and terminal operating companies,
Transmar International Shipping Company (Transmar) and
Transcargo International (TCI), by Abu Dhabi Ports Group
(AD Ports). The transaction, valued at USD 140 million,
marked AD Ports’ first investment in Egypt.
DCM
In the DCM space, the Firm’s Investment Banking division
recorded a solid performance during the year. It continued
to provide alternative financing solutions to the market
while supporting its clients in delivering on their expansion
plans. Milestone DCM transactions for the year included
the team’s advisory on several securitization deals for the
Firm’s subsidiaries, including EFG Hermes Corp-Solutions’
second issuance in its securitization program, in a transac-
tion worth USD 102.3 million, marking the team’s largest
debt transaction in 2022. Another synergistic transaction
was that of Bedaya Mortgage Finance (Bedaya), which saw
the division advise on the mortgage finance player’s first
securitization issuance worth USD 35.2 million.
The team also acted as a buy-side advisor to the Public In-
vestment Fund of Saudi Arabia (PIF) on its indirect acquisi-
tion of a significant minority stake in B.Tech, Egypt’s leading
consumer electronics retailer.
To further solidify its position as the partner of choice in the
ever-growing Egyptian real estate industry, the team ad-
vised chief real estate player Orascom Development Egypt
on the USD 81.1 million financing package for its flagship
O-West project.
Other landmark deals for the year included the sell-side
advisory on the USD 115.7 million majority acquisition of Auf
Group, a leading healthy snacks and coffee manufacturer
as well as retailer in Egypt, by UAE-based Agthia, a leading
food and beverage company in the region.
2022 M&A Deals
Transmar International Shipping Company and Transcargo
International (TCI) Sale – Sell-side financial advisor to Trans-
mar and TCI’s shareholders on the 70% stake sale of both
companies to AD Ports in a transaction worth USD 140 million.
Auf Group Sale – Sell-side financial advisor to Auf Group
on the majority stake sale to UAE-based Agthia worth USD
115.7 million.
Credit Agricole S.A. Accelerated Direct Purchase – Buy-
side advisor to Credit Agricole S.A. on its direct purchase of
a 4.8% stake in Credit Agricole Egypt in a transaction worth
USD 21.1 million.
B.Tech Acquisition – Buy-side advisor to the PIF on its in-
direct acquisition of a significant minority stake in B.Tech.
Al Meswak Dental Clinics Sale – Sell-side advisor on the
USD 500.0 million majority stake sale of Al Meswak Dental
Clinics to Jadwa.
Parallel to this, the team advised MARAKEZ, a leading
Saudi real estate player in Egypt, on its USD 39.2 mil-
lion debt arrangement alongside EFG Hermes Corp-
Solutions and the Firm’s recently acquired aiBANK, who
acted as leasing partner and lender, respectively — a
testament to the division’s unrivaled ability to provide
end-to-end financial solutions to its clients by capital-
izing on the synergies between the Firm’s wide-ranging
lines of business.
As part and parcel of its strategy to bring a broader range
of offerings to market, the Investment Banking division
concluded advisory on CIRA Education’s USD 32.7 million
future flow securitization bond offering — Egypt’s first ever
future flow securitization issuance.
2022 DCM Deals
Pioneers Properties Securitization Program – Financial
advisor, lead arranger, underwriter, and bookrunner on
Pioneers Properties’ second and third securitization
bond issuance worth USD 23.0 million and USD 11.9 mil-
lion, respectively.
EFG Hermes Corp-Solutions Securitization Program – Ad-
vised EFG Hermes Corp-Solutions on its second securitiza-
tion issuance in a transaction worth USD 102.3 billion.
By the end of 2022, EFG Hermes' Investment Banking division
recorded a total of 32 ECM, DCM, and M&A transactions across its
footprint, with an aggregate value of over USD 14.3 billion.
EFG Hermes Corp-Solutions Bond Offering – Advised on
the USD 27.0 million bond issuance for EFG Hermes Corp-
Solutions.
Madinet Nasr for Housing and Development (MNHD)
Securitization Program – Sole financial advisor on the USD
19.1 million securitization issuance for MNHD.
valU Securitization Program – Advised valU on the second
issuance of its securitization program in a transaction worth
USD 27.5 million.
Premium International for Credit Services (Premium) Se-
curitization Program – Advised Premium on the sixth and
seventh issuances of its short-term securitization program,
worth USD 10.8 million and USD 8.1 million, respectively.
MARAKEZ Debt Arrangement – Advised MARAKEZ on its
USD 39.2 million debt arrangement.
Orascom Development Financing Package – Advised
leading real estate player Orascom Development Egypt
on the USD 81.1 million financing package for its flagship
O-West project.
Bedaya Securitization Program – Sole financial advisor
on the USD 35.2 million securitization issuance for Bedaya
Mortgage Finance, the first securitization issuance for a
real estate mortgage company in Egypt.
valU Securitization Program – Advised valU on the third is-
suance of its securitization program in a transaction worth
USD 34.7 million.
CIRA Future Flow Securitization Program – Advised CIRA
on a USD 32.7 million future flow securitization issuance,
the first future flow securitization issuance in the Egyptian
DCM space.
42 | EFG Hermes Holding | Annual Report 2022
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Investment Bank
Awards
Africa: Best Debt Bank
Global Finance – Best Investment Banks Awards 2022
Middle East: Best Investment Bank
Global Finance – Best Investment Banks Awards 2022
Best Equity House – Middle East
EMEA Finance Achievement Awards 2021
Best Equity House – MENA
EMEA Finance Achievement Awards 2021
Best Securitization House in Africa
EMEA Finance Achievement Awards 2021
Best Independent Advisory Firm – North
Africa
AGF Service Providers Awards 2022
Leading Investment Banking Brand, Egypt
– 2022 – EFG Hermes
Global Brand Awards 2022
Key Financial Highlights of 2022
EFG Hermes’ Investment Banking division reported total
revenues of EGP 748 million at year-end 2022, reflecting
a 51% increase from the EGP 494 million booked in 2021.
Investment banking revenues contributed approximately
7% of EFG Hermes Holding’s total revenue in 2022.
Forward-Looking Strategy
While 2023 is expected to present challenging conditions for
global markets, EFG Hermes' Investment Banking division
remains confident in its ability to continue expanding its range
of offerings and providing more compelling, value-accretive
investment prospects across the markets in which it operates.
The GCC region remains a global investment hub, particu-
larly on the equity front. In alignment with this, EFG Hermes'
Investment Banking division aims to continue leveraging its
unparalleled execution and research capabilities to lead and
advise on the region’s largest, most notable transactions in ef-
forts to sustain its position as the leading investment banking
franchise in the equity landscape. Parallel to launching new
products, the division also aims to expand into more rapidly
growing sectors across the region.
In Egypt, currency devaluations, coupled with the state’s
privatization and reform program, are slated to drive a surge
in foreign investment inflows and bolster activity across the
country’s capital markets, particularly on the M&A side.
Shedding light on debt capital markets, the division aims to
continue capitalizing on the high demand present both in
Egypt and the broader region by infusing the market with
a comprehensive set of both conventional debt products
and innovative funding solutions that are not only tailored to
changing market dynamics but also unlock the most potent
growth prospects for the division and the Firm as a whole.
44 | EFG Hermes Holding | Annual Report 2022
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The department’s ability to adapt to changing market
dynamics and react to the developing needs of its in-
creasingly varied client base has earned EFG Hermes'
Research division several awards over the years, and
2022 was no different. EFG Hermes Research contin-
ued to rank highly in the Institutional Investor 2022 Poll,
once again named the Top Frontier Research House and
ranked third in the MENA region.
Investment Bank
RESEARCH
Overview
EFG Hermes’ Research division is the region’s premier
provider of in-depth, real-time market insights with macro,
strategy, sector, and equity expertise provided by award-
winning analysts. With 338 stocks under coverage in 10
sectors across 25 countries, the division sets the industry
standard for delivering the most comprehensive and im-
pactful FEM research to clients around the world.
With on-the-ground insights from analysts based across
the Firm’s footprint, the division’s ability to provide dif-
ferentiated research products that identify opportunities
and allow clients to make informed investment decisions
is unmatched. This has proved invaluable in 2022 consid-
ering the unprecedented geopolitical, as well as macro-
economic, turbulences that have threatened the stability
of FEM and, in turn, impacted capital flowing into those
markets from institutional and retail clients alike.
The division’s growing ability to constantly expand its
coverage universe and tailor its product offering to the
evolving needs of its clients has cemented its position in
recent years as the research house of choice for equity
and strategy research in FEM.
Operational Highlights of 2022
2022 was a particularly challenging year the world over,
with geopolitical tensions in Europe, tightening monetary
policy, and soaring inflation curbing investor sentiment and
appetite in many of the markets under the Research divi-
sion’s coverage. As such, the importance of fundamental
and equity research insights came into even greater focus,
and as a result, EFG Hermes Research continued to expand
its coverage universe and hone its product offering.
The division, which currently has an on-ground presence
in Egypt, Saudi Arabia, the UAE, the UK, Kenya, Bangla-
desh, and Pakistan, initiated coverage on 15 new stocks
and was a key driver of the Firm’s IPO executions. The
GCC bucked the global downturn in ECM activity to see
c. USD 21 billion raised in offerings this year alone, with
particularly big-ticket share sales seen in the UAE and
Saudi Arabia, including Taaleem, Empower, The Pearl
REIF, Salik, Ali Alghanim and Sons Automotive, Borouge,
DEWA, Americana, and Riyadh Cables — all of which were
completed by the Firm with research from the division.
This year saw an increased push into South Asian markets
for the division, in line with the Firm’s overall strategy for
its frontier market platform. The division’s Vietnam cover-
age was deepened, while the groundwork was made for
initiations in new South Asian markets. As regulatory bodies
continue to codify ESG reporting standards and investors
turn to ESG and impact-focused investment solutions, EFG
Hermes' Research division started to develop ESG score-
cards this year for companies under coverage, which will
allow clients to more consistently track and measure ESG
metrics across companies in various industries.
The team is also taking decisive steps to digitalize the
research experience for clients to leverage the success
of the EFG Hermes Research Portal and employ data
analytics and other techniques to provide clients with
bespoke, impactful research. This year, the division re-
vamped its research dissemination platform to allow the
team to deliver insights to clients based on updates in
the industry, market, economy, and more, while also al-
lowing the team to gain unique, data-driven insights into
client needs.
With COVID-19 restrictions easing, key investor confer-
ences and access events returned, allowing the division to
strengthen relationships with clients and lay the ground-
work for value-accretive events in the year ahead to facili-
tate the sharing of ideas, building powerful networks, and
fostering long-standing industry relationships.
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Investment Bank
Evolution of Companies Under Active Coverage (Number of Companies at Year-End)
338
326
299
287
263
225
154
141
2022
2021
2020
2019
2018
2017
2016
2015
Egypt
UAE
Kuwait
Qatar
KSA
Oman
Other
Pakistan
Vietnam
Kenya
Nigeria
Bangladesh
Forward-Looking Strategy
With the difficult circumstances faced last year — including
a stronger USD, higher inflation, and tighter financial condi-
tions — weighing on our markets through to the end of the
year, valuations for FEM equities are attractive compared
to developed markets. With higher profitability, free cash
flow, and dividend yields all slated for a pick-up in our mar-
kets — particularly in the GCC region — clients, investors,
and analysts will continue to look for research houses for
incisive, accurate, and timely research to help them navi-
gate headwinds and capitalize on tailwinds. As the Firm’s
Research franchise continues to expand and strengthen its
offering, the division is perfectly positioned to capitalise on
this demand going forward.
In the year ahead, the division is planning a push away
from low-turnover African markets on the frontier side of
the house to more attractive South Asian markets, such as
Indonesia, Thailand, the Philippines, and more. It will also
work on broadening the variety of its products, providing
more diversified insights for the Firm’s client base and di-
visions, including the development of a Research Primer
for investors looking to break into the Asian market. On
the MENA side of the house, the division is anticipating
a wave of initiations as the GCC IPO boom sees no sign
of slowing due to strong market fundamentals, abundant
liquidity, and the UAE's push to bring more state-owned
and private sector companies to the market.
48 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 49
Investment Bank
BUY-SIDE
OVERVIEW
assets under management (AUM) both registered a solid
increase during the year, with Egypt AUM growing 10% to
record EGP 25.9 billion and regional AUM increasing 5.2%
to stand at USD 2.7 billion. I am also happy to announce
that the division was successful in further extending its
regional presence this year, having established a new
dedicated office in Muscat, Oman.
On the private equity side, the division’s flagship energy
transition platform, Vortex Energy, continued to build on its
strategic and fruitful partnership with Spain-based Ignis
Energy Holdings, which facilitated a multitude of opportu-
nities for the platform to continue growing its investment
portfolio and broadening its outreach across various Eu-
ropean countries. During the year, and through its recently
launched fund Vortex Energy IV, Vortex Energy, along with
its co-investors, injected the second tranche of its invest-
ment in Ignis Energy Holdings, worth c. EUR 228 million.
Our partnership with such a globally renowned player not
only enables us to cater to the growing demand present in
the sustainable and responsible investing space but also to
continue playing a fundamental role in contributing to the
global transition toward a net-zero emissions future.
Alongside our success in the renewable energy space,
2022 was a solid year for our healthcare platform Rx
Healthcare Management (RxHM), which continued to grow
its operations in collaboration with leading medical solu-
tions provider, United Pharma. I am delighted to say that we
were successful in enhancing our production capacities
Despite the year's market conditions on the back of geo-
political tensions that had knock-on effects on energy and
commodity prices, the shrinking value of currencies in most
emerging markets, and monetary tightening raising the alarm
bells of recession, EFG Hermes continued to demonstrate
resilience across its core operations. The strategies we set
out in previous years shielded us from headwinds in 2022,
as we worked to continue bringing to market varied, innova-
tive financial offerings that allowed us to surpass regional
benchmarks and peer averages. The buy-side business, in
particular, delivered solid results this year, capitalizing on
the growing demand for compelling and value-generating
investment prospects, all while contributing to the Group’s
consolidated revenue growth.
On the asset management side of the house, EFG
Hermes' Asset Management division recorded revenues
of EGP 553 million in 2022, up 5% Y-o-Y from the EGP
528 million recorded at year-end 2021. Local and regional
The buy-side business delivered solid results this year, capitalizing
on the growing demand for compelling and value-generating
investment prospects, all while contributing to the Group’s
consolidated revenue growth.
and expanding our geographical footprint during the year,
in line with our strategy to provide a better-rounded roster
of innovative healthcare solutions across the region.
In the education sector, the year saw our full-fledged edu-
cation-focused platform, the Egypt Education Fund (EEF),
broaden its capacities in Egypt’s ever-growing education
space by adding more prominent international schools to its
portfolio. Leveraging its acquisition of Al Hayah International
Academy back in 2021, the platform acquired Hayah West
in Sheikh Zayed. Additionally, the EEF was successful in
acquiring GEMS International School in Cairo (GISC) and Tril-
lium the Montessori house, marking our strategic entry into
the nascent pre-K segment. Branching out of Egypt’s capital,
the EEF entered into an agreement with Abu Soma Develop-
ment to establish a school in Soma Bay, which is set to kick
off operations in 2024.
As a result of the solid performance delivered across all
three platforms, the division closed the year with rev-
enues of EGP 171 million, reflecting an increase of 57%
Y-o-Y from the EGP 109 million booked in 2021.
Although the macroeconomic challenges we faced this
year are expected to linger in 2023, I am confident that
both our Private Equity and Asset Management arms will
continue to uphold their commitment to our stakeholders
and will remain dedicated to building on the tremendous
success achieved over the years. It is of utmost impor-
tance for us to continue sustaining our strong position in
the regional markets in which we operate, and we aim to
continue charging the market with investment prospects
and innovative offerings that not only generate returns for
our clients and bolster the Firm’s financial position but also
create long-term, meaningful value on a regional scale.
Karim Moussa
Co-CEO of the Investment Bank
50 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 51
Investment Bank
ASSET
MANAGEMENT
Overview
EFG Hermes’ Asset Management division, the MENA re-
gion’s leading asset manager, offers its clients a diverse
and comprehensive suite of mutual funds and discre-
tionary portfolios comprising of country-specific and re-
gional mandates, including money market, fixed income,
indexed, and Shariah- and UCTIS-compliant mandates.
Powered by a team of regional industry experts, EFG
Hermes' Asset Management division caters to an ever-
growing client base of individual and institutional clients,
as well as government-backed entities. The division
unlocks value-accretive investment prospects, market
insights, and other value-add services that are tailored
to different individual preferences, financial objectives,
and risk appetites.
In 2022, the division won new
mandates, outperformed peer
averages, and sustained its
leading position as the asset
manager of choice in the region.
Operational Highlights of 2022
Despite the challenges driven by inflationary pressures,
higher interest rates, and currency devaluations, the MENA
region’s capital markets remained resilient during the year.
EFG Hermes’ Asset Management division ended 2022 on
a strong note, winning new mandates, outperforming peer
averages, and sustaining its leading position as the asset
manager of choice in the region.
By the end of 2022, the division’s AUM in Egypt hiked by
10% Y-o-Y to record EGP 25.9 billion, up from the EGP
23.5 billion recorded at year-end 2021. The increase was
primarily driven by the favorable performance of equity
markets during the year, coupled with rising net inflows
in money market funds (MMFs).
Despite the challenging market conditions, regional
AUM from the Firm’s regional arm, Frontier Investment
Management (FIM) Partners, also grew in 2022 to record
USD 2.7 billion, up 5.2% from the USD 2.6 billion booked
one year previously, as the division delivered a solid
performance across its funds and managed accounts, in
addition to the growth in net inflows from equity port-
folios. Additionally, FIM was successful in onboarding a
new key account during the year, as a cornerstone of its
strategy to broaden its investor network.
During the year, and in efforts to expand its regional pres-
ence, the Asset Management division successfully estab-
lished a new office in Muscat, Oman.
52 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 53
Key Financial Highlights of 2022
Asset Management revenues rose by 5% Y-o-Y in 2022 to
EGP 553 million, compared to the EGP 528 million reported
in 2021, on the back of the higher incentive fees booked by
the regional asset management arm, FIM.
Awards
In 2022, EFG Hermes Asset Management was named Best
Asset Manager in Egypt and Pan-Africa by EMEA Finance
African Banking Awards 2022 and was ranked 18th in Forbes
Middle East’s Top 30 Asset Management Companies.
Forward-Looking Strategy
Going into 2023, the Asset Management division aims to
continue delivering long-term value to its investors and
other stakeholders and cementing its leading position
across the regional markets in which it operates. The
year ahead will see the division bring to market a wider
range of innovative emerging market equity and fixed
income products in efforts to complement its suite of
existing offerings and to grow its roster of offerings in
Egypt and region-wide. Capitalizing on the ever-growing
importance of sustainable investing for individual and
institutional investors alike, the division’s regional arm,
FIM, continues to operate in accordance with the high-
est ESG investing standards, and it is in the process of
enhancing its ESG policies to better serve changing
investor dynamics across different asset classes.
Investment Bank
Egypt AUM (EGP bn)
25.9
12.6
20.9
20.2
8.9
7.8
22.2
9.1
23.5
9
21.7
8
20.7
7.9
19.8
7.6
12.2
11.2
11.8
12.4
13.8
13
12.1
11.7
1.0
0.7
0.6
4Q22
3Q22
2Q22
0.7
1Q22
0.7
4Q21
0.7
3Q21
0.7
2Q21
0.6
1Q21
19.1
7.4
11.3
0.6
17.4
6.8
10.1
0.5
16.9
6.4
10
0.5
15.5
5.3
9.8
0.4
4Q20
3Q20
2Q20
1Q20
Egypt Equity Funds
MMFs and Fixed Income
Portfolios
Regional AUM (EGP bn)
2.7
1.8
2.8
1.9
2.5
1.7
2.8
2
0.9
0.9
0.8
0.8
2.6
1.8
0.8
2.5
1.8
0.7
2.4
1.7
0.7
2.4
1.9
0.5
2.1
1.6
0.5
1.7
1.4
0.4
1.7
1.3
0.4
1.4
1.1
0.3
4Q22
3Q22
2Q22
1Q22
4Q21
3Q21
2Q21
1Q21
4Q20
3Q20
2Q20
1Q20
Regional Funds
Regional Portfolios
Local Funds Managed in Egypt (EGP bn)
10.2
1.2
MMR
2.3
1.3
Equity
Fixed Income
Balanced
54 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 55
Investment Bank
PRIVATE
EQUITY
Overview
EFG Hermes’ Private Equity platform drives value-accretive
investments in sectors that are strategic and impactful
by providing rapid and flexible investment capital. The
platform’s unmatched capacity building and technical
assistance, combined with its strategic leadership man-
agement, are some of the factors enabling it to grow its
businesses swiftly across its footprint. As a long-term im-
pact investor, the division invests in businesses operating
in key industries — including renewable energy, education,
and healthcare — that generate not only lucrative financial
returns but also social and environmental impacts.
On the renewables front, the division manages investments
through its dedicated Europe-focused platform, Vortex En-
ergy. The platform, which was launched in 2014, funds proj-
ects in the fast-growing energy transition industry to drive
higher sustainable development and lay the foundation for
the transition toward clean energy. Today, Vortex Energy is
a leading energy transition investment manager that seam-
lessly executes deal sourcing, structuring, financing, asset
integration, and divestment on a global scale.
In the ever-growing education sector, EFG Hermes’ EEF
is a USD 150 million investment fund that was launched in
2018. In line with its strategy to carry out socially impactful
investments, EEF continues to grow and develop Egypt’s
underserved K-12 sector through investments in schools
and greenfield developments, in addition to building a verti-
cally integrated platform to manage and enhance opera-
tions more effectively.
In the healthcare space, the Firm’s healthcare-focused
investment platform, RxHM, was established to manage
diverse investments across the healthcare sector to meet
the rapidly growing demand for premium healthcare offer-
ings across Egypt, the MENA region, and Africa at large. In
2019, the platform successfully completed the acquisition
of a majority stake in United Pharma, a leading Egyptian
medical solutions provider, in efforts to expand United
Pharma’s medical product offerings across the region.
2022 Operational Highlights
Vortex Energy
2022 was a strong year for the Firm’s renewables-
focused platform, primarily driven by the unprecedented
surges in electricity prices on the back of the Russia-
Ukraine war, which created higher demand for alterna-
tive energy solutions. By the end of 2022, Vortex Energy
had invested a total of EUR 300 million into Ignis Energy
Holdings, highlighting the strategic importance of its
longstanding relationship with the company. Through
this, Vortex Energy helped Ignis boost capacities and
capture a share of the growing demand in Europe, led
by the continents’ current energy crises and the need for
more renewable energy resources.
RX Healthcare Management
RxHM delivered a strong set of operational and financial
results in 2022 as it continued to bolster its production
capacities through United Pharma. The platform witnessed
substantial growth throughout the year, having success-
fully sourced a wider range of offerings across its portfolio,
and broadened its geographical footprint through higher
exports across the region.
Egypt Education Fund
In 2022, the EEF continued to cement its position as the
region’s largest performing education-focused platform,
broadening its capacities in Egypt’s education sector and
diversifying its investment portfolio of leading interna-
tional schools. Following the addition of Al Hayah Interna-
tional Academy to the platform in 2021, the year saw the
EEF acquire Hayah West in Sheikh Zayed. The EEF also
concluded new acquisitions during the year, including
As a long-term impact investor, EFG Hermes' Private Equity
division invests in businesses operating in key industries that
generate not only lucrative financial returns but also social and
environmental impacts.
flagship GISC and Trillium the Montessori house — the
latter marking the platform’s first break into the burgeon-
ing pre-K segment. Additionally, the platform entered into
an agreement with Abu Soma Development Company to
establish a new state-of-the-art school in Soma Bay. The
school is slated to house around 300 students and is set
to commence operations in 2024.
To expand its complementary services offered to
students, EEF acquired "Selah El Telmeez", the leading
Egyptian learning guide and content creator for K-12
students. Up-and-running since 1960, Selah El Telmeez
is a brand trusted by millions of Egyptians, offering a
broad range of books and digital learning materials
across an array of subjects. By that same token, the
acquisition of Option Travel in 2019 continued to bear
fruit, with the platform’s school bus service perform-
ing exceptionally well during the year considering the
return to in-person learning.
Awards
During the year, EFG Hermes’ Private Equity division was
recognized as the Best Private Equity House in Africa by
EMEA Finance Awards 2021. Vortex Energy, in particular,
won the Best Sustainable Private Equity Investment and
the Best Private Equity Fund Raising in Africa by EMEA
Finance Achievement Awards 2021. The division was also
recognized as one of the leading private equity divisions
in the region by IJ Global, having been shortlisted among
some of the most prominent investment managers in the
region for the Investment Manager of the Year award.
2022 Key Financial Highlights
Revenues for the division in 2022 recorded EGP 171 million,
reflecting a 57% increase Y-o-Y from the EGP 109 million
registered in 2021.
Forward-Looking Strategy
Looking ahead, the division aims to continue ramping up its
portfolio to house a larger number of high-impact invest-
ments across its key areas of focus. On the renewables side,
Vortex Energy plans to continue building on the success of
its partnership with Ignis to grow its operational footprint
on an international scale. As such, the flagship renewables
platform is looking to venture into more sustainable and
environmentally conscious fields, including energy storage
and electrical vehicle (EV) charging.
On the education front, EEF continues to focus on strengthen-
ing its position as a full-fledged integrated education platform,
leveraging educational institutions in the pre-K and K-12 space
as well as complementary service offerings, such as trans-
portation and digital education materials. The platform also
continues to seek out new value-generating prospects in the
Egyptian education space, with an eye for branching out of
Cairo and breaking ground in more underserved regions.
Shedding light on the healthcare side of the house, RxHM
plans to continue broadening its healthcare portfolio by
adding more acquisitions alongside United Pharma with
entry into the IV and medical solutions space as it works to
upscale the healthcare space and infuse the market with a
wider range of comprehensive medical solutions.
56 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 57
2.5 EGP
BN
revenues in 2022
28%
revenue growth in 2022
The NBFI platform is an end-to-end financial
services ecosystem unlocking access to
finance for people of all income levels and
businesses of all sizes.
NBFI PLATFORM NBFI Platform
NBFI PLATFORM
OVERVIEW
EFG Finance, the fastest-growing NBFI platform in Egypt
and a growth engine for financial inclusion, the vertical that
is led by myself, is home to numerous brands, including
leasing and factoring platform EFG Hermes Corp-Solutions,
microfinance player Tanmeyah, mortgage finance provider
Bedaya, insurance provider Kaf, and e-payment platform
PayTabs Egypt. On the other hand, valU, the leading fintech
lifestyle-enabling solution in Egypt and a sub-brand of the
group, is independently led by CEO Walid Hassouna.
2022 was a solid year for our flagship NBFI platform, as it
continues to be a holistic ecosystem of complementary
businesses that join forces to provide end-to-end financial
solutions at every stage of people’s lives and the growth
of their businesses. Our relentless efforts and strong per-
formance during the year serve as a testament to how we
honor our longstanding mission at the Firm — to provide
people from all walks of life and businesses of all sizes with
access to the financing and tools they need to live better
lives, build bigger companies, and enhance the communi-
ties in which they live and work.
The year saw our leasing and factoring arm, EFG Hermes
Corp-Solutions, record strong results across its core op-
erations. Total bookings hit a record high of EGP 9.6 billion,
compared to the EGP 8 billion booked in 2021, as it continued
to offer its clients innovative and comprehensive leasing and
factoring offerings, in addition to expanding its operations
into new, value-accretive sectors. In the logistics space,
the company partnered with a globally renowned logistics
company, TruKKer, supporting it in developing the operations
of its Egyptian arm by ramping up shipments and facilitating
swifter payments. In the maritime sector, EFG Hermes Corp-
Solutions forged a partnership with Egypt-based shipping
company, Transmar, to finance the purchase of the cargo
vessel, Transmar Legacy. The company also partnered with
PICO Energy in a structured transaction worth USD 15 mil-
lion, marking its entry into the oil and gas sector.
EFG Hermes Corp-Solutions also concluded the year having
issued an EGP 2 billion securitized bond — its largest to date
— in addition to a bond offering worth EGP 500 million as
part of a more expansive EGP 3 billion program to monetize
its receivables portfolio and, in turn, expand the business.
On the microfinance front, Tanmeyah continued to grow its
client base and sales by ramping up resources across its
branches and streamlining operations, focusing on boost-
ing efficiency through investment in digital infrastructure.
By that same token, the company partnered with promi-
nent players in the e-payment space, including Fawry, O-
Pay, Bee, and Masary, to enable customers to make online
payments through various points of sale — a key plank in its
strategy to promote nationwide financial inclusion through
digital intermediation. Tanmeyah continued to build on the
success of its partnership with Banque Misr, rolling out co-
branded, prepaid “Meeza” cards to its customers, enabling
them to make deposits, withdrawals, and transfers swiftly
and seamlessly through Banque Misr’s ATMs and points of
sale. By the end of the year, Tanmeyah had recorded an out-
standing portfolio value of EGP 4.3 billion and a total client
base of 378,645 active borrowers.
Our mission is to provide people and businesses with the
financing they need to live better lives, build bigger companies,
and enhance the communities in which they live and work.
Parallel to its digital transformation efforts, the microfi-
nance leader acquired Fatura, a tech-enabled business-to-
business (B2B) marketplace with a presence spanning 22
governorates in Egypt. Through this strategic acquisition,
Fatura will grant Tanmeyah access to its fast-growing
network of merchants, enabling the company to bridge the
gap in the ever-growing B2B credit market.
Another milestone for the year was the success of our
e-payment solutions platform PayTabs Egypt, which con-
tinued to capitalize on the demand and need for digital
payments to fuel the drive toward a cashless society.
Throughout 2022, the company invested in diversifying
its network of partners, forming a multitude of strategic
collaborations with leading local and regional brands and
expanding its range of innovative and tailored payment
solutions through its world-class platform. In alignment
with this, in Egypt, PayTabs Egypt successfully launched
Paymes — a one-of-a-kind social commerce marketplace
and a leading platform in Central Asia. Paymes is slated to
serve as PayTabs Egypt’s social commerce platform in the
MENA region, enabling freelancers, artisans, consultants,
home-based business owners, personal trainers, food
truck vendors, and members of the gig economy to make
payment collections across social media platforms swiftly
and seamlessly. At year-end 2022, PayTabs Egypt regis-
tered a base of over 2,000 merchants and over 1.5 million
transactions completed through the platform.
In the insurance space, our tech-enabled microinsurance
brand, Kaf, concluded the year with solid performance
across its core operations and breaking ground in the mar-
ket, having recorded the tremendous achievement of 2
million lives insured. Alongside its operational growth, Kaf
focused on forging partnerships with other entities within
the Firm’s NBFI platform. 2022 saw the company extend
its insurance plans to Tanmeyah’s customers, mitigating
the default risks of Tanmeyah’s borrowers and ensuring
stability and progress of people’s small and micro busi-
nesses as part of its focus to drive financial inclusion
across Egypt’s governorates.
Bedaya, our mortgage finance venture and Egypt’s first
non-bank online mortgage provider, ended 2022 having
exceeded its operational and financial targets and facing
macroeconomic challenges head-on. The company’s exten-
sive efforts throughout the year resulted in a substantial hike
in portfolio value and the number of clients served — a Y-o-Y
increase of 206% and 379% versus the end of 2021, respec-
tively. As a result of this growth, Bedaya ranked second by
market share in the Egyptian mortgage space in 2022. The
year also saw Bedaya issue its first securitized bond, worth
EGP 651.2 million, in collaboration with the Firm’s Investment
Banking division, marking the first-ever securitization for a
mortgage player in Egypt’s debt capital market.
Gearing up for 2023, and as the macroeconomic environ-
ment continues to pose challenges for regional and global
markets, we aim to continue enhancing the operational
capacities of the businesses within the platform as they
expand their offerings to new markets. Additionally, as the
NBFI platform continues to witness rapid growth Y-o-Y, it is
of utmost importance for us to continue capitalizing on our
most valuable asset, our people, the leaders who steer this
ship forward, even during the most testing times. We re-
main confident in our ability to continue providing compel-
ling and fundamentally necessary products for the people
and businesses in our community, and we look forward to
another year of remarkable achievements.
Aladdin ElAfifi
Chief Executive Officer
EFG Finance
60 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 61
By the end of the year, Tanmeyah had recorded an outstanding
portfolio value of EGP 4.3 billion, reflecting a Y-o-Y increase of 18%
from EGP 3.7 billion at year-end 2021.
NBFI Platform
TANMEYAH
Overview
Tanmeyah for Microenterprise Services, a subsidiary of
EFG Hermes Holding, is the leading company in provid-
ing a range of microfinance solutions in Egypt. Tanmeyah
was established in 2009 and, since inception, has grown
to become one of the leading entities in the field of work-
ing capital financing for owners of low-income generat-
ing projects. The financing programs support owners
of microenterprises in developing their businesses and
projects, which contributes to the improvement of sur-
rounding communities. Tanmeyah facilitates access to
finance in underprivileged areas through its on-ground
presence in many governorates across Egypt. It continu-
ously seeks to expand geographically by opening new
branches in rural and urban areas in Upper Egypt and
Delta governorates.
Tanmeyah’s financing programs start from EGP 1,000 and
cater to low-income businesses while driving economic
growth throughout Egypt and improving standards of liv-
ing. Tanmeyah has been actively promoting digitalization
as part of Egypt’s strategy toward achieving increased
financial inclusion and has launched several applications
offering digital services and online payment solutions to
customers, enabling the company to serve a wider cus-
tomer base. Today, Tanmeyah has issued over 2 million fi-
nancing facilities of various types and sizes to low-income
generating projects across Egypt.
2022 Operational Highlights
2022 was an exceptional year for Tanmeyah, with the com-
pany achieving substantial growth across all performance
metrics, particularly on the productivity and efficiency fronts.
By the end of the year, Tanmeyah had recorded an out-
standing portfolio value of EGP 4.3 billion, reflecting a Y-o-Y
increase of 18% from EGP 3.7 billion at year-end 2021. The
company also recorded a total client base of 378,645 active
borrowers. Additionally, Tanmeyah’s total number of loans
issued amounted to 371,107 by the end of 2022 compared to
the 367,294 loans booked in 2021, with the company issuing
loans worth EGP 6.1 billion compared to the EGP 5.2 billion
issued the previous year. While the number of loans issued
remained relatively flat during the year, Tanmeyah focused
on increasing its ticket sizes, with its MEL average ticket size
increasing by 23 % Y-o-Y to record EGP 17,928.
During the year, Tanmeyah proceeded with its strategy to
aggressively broaden its client base and increase sales by
ramping up resources across its branches and restructur-
ing operations to cater to a wider segment of clients. As
a result, the company achieved record-high issuances
during the year, particularly in March when sales reached
EGP 605 million.
As a cornerstone of its wider strategy to promote financial in-
clusion and digital transformation, and building on its partner-
ship with Damen in 2021, the year saw Tanmeyah partner with
electronic payment networks Masary and Bee to broaden its
digital collection capacities by enabling customers to make
online payments through various points of sale. The company
also partnered with Fawry and O-pay during the year, two
of the region’s most prominent digital payment platforms,
unlocking access for customers to make payments through
both platforms at any of Tanmeyah’s branches, in addition
to retail outlets within Tanmeyah’s network. Following its
partnership with Banque Misr in 2021, Tanmeyah began roll-
ing out co-branded prepaid “Meeza” cards to its customers
in collaboration with the bank, enabling customers to make
deposits, withdrawals, and transfers through Banque Misr’s
ATMs and points of sale. By the end of 2022, Tanmeyah had
successfully issued 28 Meeza cards.
Capitalizing on the synergies across EFG Hermes Holding’s
NBFI platform, Tanmeyah forged a strategic, one-of-a-kind
62 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 63
NBFI Platform
partnership with PayTabs Egypt to digitize its payment
collections and disbursements through PayTabs Egypt’s
secure payment gateway. This partnership offers the
microfinance leader direct access to PayTabs Egypt’s
microbusinesses and freelancers and enables Tanmeyah’s
businesses and individuals to make payments securely and
smoothly. Additionally, the microfinance leader concluded
its first acquisition during the year, having acquired Fatura,
a tech-enabled B2B marketplace with a presence spanning
22 governorates in Egypt. Prior to the acquisition, Fatura
was backed by prominent shareholders in the fintech field,
with EFG EV Fintech being one of the primary investors
since 2020. The strategic acquisition of Fatura aims to
grant Tanmeyah access to Fatura’s fast-growing network of
merchants, enabling the company to bridge the gap in the
key B2B credit market.
2022 saw the company focus heavily on enhancing its
operational efficiency and expanding its caliber outreach
across Egypt’s governorates. Simultaneously, Tanmeyah
concluded the refurbishment of its head office and the
establishment of
its customer-focused headquarters
during the year, with the aim to effectively identify, reach,
and capture a wider share of customers in the microfi-
nance space.
Key Financial Highlights
On the back of the substantial increase in sales, enhanced
margins, and a record portfolio growth, Tanmeyah record-
ed a revenue increase of around 7% Y-o-Y to EGP 1.5 billion
in 2022, up from EGP 1.4 billion recorded at year-end 2021.
In addition to its relentless efforts to digitally transform
its infrastructure and broaden its client base, Tanmeyah
focused on diversifying its product offerings during the
year. In 2022, the microfinance player’s previously estab-
lished Women in Business (WIB) program was rebranded
to the Individual Lending Program, catering to a wider
stratum of the Egyptian population. By the end of the
year, the program had registered over 47,673 loans, an
increase of 65% from the 28,902 loans issued across the
WIB program in 2021.
At present, Tanmeyah’s team comprises of 4,375 em-
ployees, of which over 3,585 are field loan officers.
Forward-Looking Strategy
Looking ahead, Tanmeyah aims to continue on its tra-
jectory to ramp up its operations and bolster efficiency
across its footprint. To do so, the microfinance leader
will continue to digitally transform its operations by
investing in technology and data science, in addition to
capitalizing on its acquisition of Fatura and the synergies
inherent in both companies’ business models. Addition-
ally, Tanmeyah plans to continue rolling out campaigns
and launching new products with prominent players that
drive progression in the microfinance space, ultimately
enabling the company to continue growing across all its
performance metrics.
64 | EFG Hermes Holding | Annual Report 2022
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NBFI Platform
valU
Overview
Launched at the end of 2017 as a Buy-Now, Pay-Later
(BNPL) provider, valU is the MENA region’s leading life-
style-enabling fintech platform. A fundamental element
of EFG Hermes Holding’s wider strategy to diversify its
product base and provide nationwide financial solutions
through digital intermediation, valU has transformed
throughout the years to become a pillar in the regional
fintech ecosystem and promoter of financial inclusion.
Its foundation as a BNPL provider saw valU offer conve-
nient and inclusive 3–60-month financing plans through
over 3,600 retail partners and service providers, as well
as over 1,000 e-commerce platforms covering various
categories, such as home appliances, electronics, home
finishing, furniture, residential solar solutions, healthcare,
education, travel, F&B, oil and gas, fashion, used cars,
and more. Having continued to launch a continuous
stream of disruptive but fundamentally integrated solu-
tions and partnerships to the market, the company has
become a full-fledged lifestyle-enabling platform that
meets consumers’ ever-expanding financial needs.
3,600+
retail partners
1,000+
online partners
568K
valU app customers
1 MN+
transactions
5.8EGP
BN +
gross merchandise value
2022 Operational Highlights
2022 was marked by tremendous accomplishments for
valU, as the fintech leader continued to bring to market
innovative financing products and venture into more
promising sectors. By the end of the year, valU had regis-
tered remarkable growth across all metrics, with 568,000
app customers and over 1 million transactions completed
through the app. With an average ticket size of EGP 5,000,
valU concluded the year with a total gross merchandise
value of EGP 5.8 billion — a twofold increase from the EGP
2.4 billion booked in 2021.
Growth and Expansion
The company’s incredible success drew the attention
of global investors looking to capitalize on its growth
prospects in Egypt and the region. In May, Amazon
acquired USD 10 million in EFG Hermes GDRs with the
option to place that investment into valU in the future,
translating into 4.255% of valU’s issued share capital
based on a post-money valuation of USD 235 million at
the time. The acquisition was followed by announcing
the Alhokair family’s intent to purchase a 4.99% stake in
the platform through a USD 12.4 million capital increase.
66 | EFG Hermes Holding | Annual Report 2022
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NBFI Platform
The agreement with the Alhokair family, a powerhouse
in the Saudi retail market, came on the heels of valU’s
announcement of the intention to purchase a 35% stake
in Saudi consumer finance player, Fas Finance, marking
its strategic entry into the Saudi market.
valU also closed 2022 having concluded several acquisi-
tions. The fintech player fully acquired Paynas — a full-
fledged employee management and benefits company
that offers services to MSMEs, including a cloud-based
platform to manage attendance and payroll; financial
products, such as payroll cards in collaboration with
Banque Misr and Visa; affordable health insurance; as
well as financial wellness products, such as earned-wage
payouts and salary advances. The synergies between
Paynas’s B2B and valU’s B2C offerings perfectly posi-
tion valU to capture more opportunities and become a
holistic lifestyle-enabling platform that serves the needs
of multiple segments with progressive and convenient
financial solutions. During the year, valU also acquired
a minority stake in Kiwe — the first social payment app
for youth that facilitates onboarding of the unbanked
segment in Egypt — and invested in Hoods, the live e-
commerce platform.
Working with EFG Hermes' Investment Banking, valU
issued its second and third securitized bond offerings
in 2022, worth EGP 532.6 million and EGP 854.5 million,
respectively. Both issuances came as part of a broader
EGP 2 billion program to support the company’s expan-
sion plans.
Strategic Partnerships
On the partnership front, the year saw valU welcome
more homegrown and international brands aboard its
merchant network. By doing so, valU successfully ex-
tended its customizable BNPL plans to new products
and sectors, ultimately growing its client base and cre-
ating higher brand awareness. By the end of 2022, valU
had registered over 4,500 merchants across its network.
As a cornerstone of its efforts to enhance affordability
that positively impacts many Egyptians’ lives, valU forged
a first-of-its-kind partnership with energy solutions pro-
vider, TotalEnergies, to offer convenient payment plans
across its petrol stations. On the e-commerce front, valU
partnered with the region’s leading digital marketplaces,
Noon, Jumia, and Amazon Egypt, unlocking customers’
access to various products offered on all three platforms.
2022 also saw valU venture into food commerce, col-
laborating with online platforms, Rabbit and Voo, to allow
shoppers to purchase groceries using its BNPL solutions.
Another milestone partnership for the year was with Al-
Ahly Sporting Club, which saw valU provide people with
more affordable financing plans on new memberships.
The collaboration is part of the fintech player’s strategic
alliances with other sporting clubs, including SODIC’s
Club S, signed in 2021.
During the year, valU expanded into more significant tick-
et transactions, joining forces with real estate developers
in the market, such as Arab Developers Holding, Makadi
Heights, Almaza Bay, and Palm Hills, as well as hospital-
ity player Travco, to offer residents convenient financing
solutions for home maintenance and finishing fees. valU
also partnered with Rentak, the first platform in Egypt
combining fintech and proptech solutions, to facilitate
rent transactions between tenants and landlords. It also
forged a unique partnership with Egypt’s homegrown
used-car platform, Sylndr, unlocking more affordable
payment options for those looking to buy high-quality
used cars conveniently, transparently, and reliably.
2022 also saw valU forge unconventional, three-party
partnerships. These collaborations included multina-
tional retail and wholesaling international brand, Carre-
four, and home-appliance and electronics manufacturer,
Braun, to offer shoppers at Carrefour exclusive promo-
tions on Braun’s wide selection of products.
The company additionally signed a partnership agreement
with Geidea, a Saudi-based digital payments provider, to
integrate the company’s seamless and intuitive payment
aggregation solutions into the valU ecosystem.
valU was named Fintech Company of the Year at the Gulf
Business Tech Awards 2022 for the second consecutive year.
valU continued to broaden the outreach of its existing
product offerings during the year to target new audi-
ences. It amplified its efforts to grow the landmark cash
redemption program, Sha2labaz, allowing customers
to reclaim any amount spent when purchasing from
any product or service provider inside or outside valU’s
vendor network. The amount reclaimed in cash is then
paid on flexible tenors from 6 to 60 months through valU.
In 2022, valU worked on creating saving and investment
products that align with its strategy to promote financial
empowerment and inclusion and expand beyond solely
being a BNPL player. It also opened new brick-and-
mortar branches to serve more customers and expand
its on-the-ground presence in the market.
Operational Synergies
Another critical factor to valU’s success this year was
its ability to capitalize on the synergies inherent in EFG
Hermes Holding’s business model. The fintech player
partnered with several of the Group’s lines of business,
including PayTabs Egypt, aiBANK, and the Investment
Banking division. Partnerships for the year included
collaborating with aiBANK and Synldr to unlock more
affordable payment options for those looking to buy and
sell used cars seamlessly and reliably. valU joined forces
with PayTabs Egypt to partner with The Knowledge Hub
(TKH) — a multidisciplinary educational hub of world-
class universities — enabling parents to pay for their
children’s academic fees, books, and other educational
materials. Another partnership between both businesses
included that with notchnco — a homegrown indepen-
dent software vendor (ISV) for meta products — to unlock
unique shopping experiences through WhatsApp for
valU’s clients.
Awards
In 2022, valU was named Fintech Company of the Year at
the Gulf Business Tech Awards 2022 for the second con-
secutive year.
Technological Infrastructure
As valU expands its product universe and prioritizes
customer satisfaction, it continues to invest in the UX and
UI of its app to provide customers with more financial
solutions and a remarkable customer experience through
seamless navigation.
Forward-Looking Strategy
Looking ahead, valU aims to continue enriching its prod-
uct base, expanding its operational footprint across new
geographies, onboarding new merchants, and empow-
ering people to achieve their desired lifestyle needs. In
2023, valU plans to expand to Saudi Arabia, following the
Alhokair family’s intent to purchase a 4.99% stake in the
platform, with an eye toward potential growth into other
regional markets.
Additionally, as part and parcel of its strategy to become
an end-to-end fintech platform, valU will leverage its
acquisition of Paynas to offer B2B programs and HR
services to its merchants. Following the success of its
unconventional partnerships in 2022, the year ahead will
also see valU continue to forge more value-accretive
three-way partnerships to foster innovation within the
fintech space.
68 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 69
NBFI Platform
Number of Transactions
1,122,065
452,379
Gross Merchandise Value (EGP)
5,839,478,340
2,355,787,559
147%
148%
FY22
FY21
Growth
Product Category FY22 Contribution
Product Category FY21 Contribution
Sectors
Electronics
E-Commerce
Sha2labaz
Mega Stores
Furniture
Fashion
Appliances
Jewelry
Car Services
Clubs and Gyms
Aggregator
Travel
Others
Sectors
Electronics
E-Commerce
Sha2labaz
Mega Stores
Furniture
Fashion
Appliances
Jewelry
Car Services
Others
FY22
29.6%
14.9%
12.8%
11.0%
6.9%
5.7%
5.3%
3.7%
2.3%
0.9%
0.9%
0.8%
5.0%
FY21
37.4%
13.2%
0.1%
16.3%
9.0%
6.2%
6.5%
3.3%
0.5%
7.5%
70 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 71
NBFI Platform
EFG HERMES
CORP-SOLUTIONS
EFG Hermes Corp-Solutions was established in 2020 to
consolidate the Group’s factoring and leasing arms, EFG
Hermes Leasing and EFG Hermes Factoring, into one
bundled entity. An integral part of EFG Hermes Holding’s
NBFI platform, the company provides its clients of various
sizes and in numerous industries with leasing and factor-
ing services that give them critical access to capital and
liquidity. Leveraging the Group’s investment banking and
NBFI platforms and the inherent synergies on a Firm-wide
level, EFG Hermes Corp-Solutions is able to provide re-
gional market insights and intelligence, as well as tailored
advisory and capital access solutions that upscale the
non-bank corporate financing landscape in Egypt and
promote financial inclusion across the country. Today, the
company boasts a diverse client mix of SMEs and mid-
cap to large corporations that operate across a myriad of
sectors including real estate development, logistics and
maritime, oil and gas, printing and packaging, education,
healthcare, trading and distribution, among others.
2022 Operational Highlights
2022 was a strong year for EFG Hermes Corp-Solutions.
The company was able to expand its service offerings in
Egypt, penetrate new sectors, conclude landmark cross-
border executions, and deliver exceptional results across its
core operations. By the end of the year, EFG Hermes Corp-
Solutions recorded aggregate bookings amounting to EGP
9.6 billion, up 19.4% Y-o-Y from the EGP 8 billion recorded at
year-end 2021. The company also registered a base of 218
clients utilizing both leasing and factoring services, reflect-
ing a slight decline of 6% from the previous year in light of the
securitization of 19 clients, 10 of which have been completely
removed from EFG Hermes Corp-Solutions’ portfolio.
On the leasing side, 2022 saw the company register new
bookings amounting to EGP 4.4 billion — an increase
of 12% Y-o-Y from the EGP 3.9 billion recorded in 2021.
Operationally, the division signed a USD 25 million deal
with Transmar, a wholly owned subsidiary of IACC Hold-
ings and Egypt’s only container shipping line, to finance
the purchase of a cargo vessel, Transmar Legacy. The
landmark transaction, which saw a collaboration between
EFG Hermes Holding’s Investment Banking division and
EFG Hermes Corp-Solutions, marked the leasing player’s
strategic entry into the high-potential maritime sector. Fol-
lowing the completion of the transaction, Transmar was
70% acquired by Dubai-based AD Ports later in the year.
Capitalizing on the success of its sale-and-leaseback
agreements with real estate powerhouses Madinet Masr
and Misr Italia Properties in 2021, EFG Hermes Corp-So-
lutions collaborated with the Firm’s Investment Banking
division on the EGP 1.1 billion sale-and-leaseback package
for MARAKEZ, one of the largest mixed-use developers in
Egypt. EFG Hermes’ investment banking division acted as
the financial advisor and arranger on the transaction, with
EFG Hermes Corp-Solutions acting as the leasing partner,
and aiBANK — the commercial bank acquired by the Firm
in 2021 — acting as underwriter. The proceeds were used
toward spending on Mall of Arabia, MARAKEZ’s flagship
retail and lifestyle complex located in 6th of October.
Additionally, the company signed a sale-and-leaseback
agreement worth EGP 600 million for LMD Visionary Real
Estate Development (LMD) to finance its all-in-one, state-
of-the-art leisure and business complex, 3’Sixty.
On the factoring side, EFG Hermes Corp-Solutions suc-
cessfully grew the portfolio by 36%, recording a total
value of bookings amounting to EGP 5.3 billion versus the
EGP 4.2 billion booked one year previously.
Operationally, the division extended its factoring services
to leading MENA logistics and transportation player TruK-
Ker in a debt facility worth EGP 38 million. The partnership
— which garnered significant traction — is slated to enable
TruKKer to expand its operations in the Egypt branch by
ramping up shipments and facilitating swifter payments.
Additionally, the factoring player signed an agreement
with oil and gas leader PICO Energy in a structured trans-
action worth USD 15 million, marking its entry into the
oil and gas sector. These landmark agreements not only
serve as testament to EFG Hermes Corp-Solutions’ ability
to unlock access to funding that best serves its clients’
needs, but also its efforts to broaden its outreach into
more value-accretive sectors.
Another key milestone for the year was EFG Hermes
Corp-Solutions’ partnership with Klickit, a payment man-
agement and digital collection platform for tuition fees,
to provide education service providers with a holistic set
of financial solutions that aim to drive the sector’s growth
and development. Through this one-of-a-kind partnership,
Klickit’s network of education providers can now lever-
age EFG Hermes Corp-Solutions’ leasing and factoring
services to finance their capital expenditures.
2022 also saw EFG Hermes Corp-Solutions issue its
second securitized bond offering, worth EGP 2.0 billion, in
collaboration with the Firm’s flagship Investment Banking
division. The bond was backed by a receivables portfolio
of EGP 2.9 million, representing 24 lease contracts, and
marked the second issuance in the bond program worth
EGP 3 billion.
Key Financial Highlights
In 2022, EFG Hermes Corp-Solutions recorded 1,194 new
bookings compared to the 1,285 bookings recorded in
2021. The company registered a value of new bookings
amounting to EGP 9.6 billion, up from the EGP 8 billion
booked in the previous year, and recorded a net profit
of EGP 182 million at year-end 2022, reflecting a Y-o-Y
increase of 73% from the EGP 105 million booked one
year previously.
Forward-Looking Strategy
Looking ahead, and while the macroeconomic environ-
ment remains relatively challenging, EFG Hermes Corp-
Solutions continues to work relentlessly to broaden its
client base and target unserved sectors across its port-
folio. As such, the company aims to continue exploring
expansion prospects in new, value-accretive markets,
branching out beyond Egyptian borders and breaking
ground with new financing offerings and structures. The
year will also see EFG Hermes Corp-Solutions capitalize
on the solid cross-selling capacities with EFG Hermes
Holding’s other divisions, leveraging the Firm’s expan-
sive track record and unrivalled capabilities to further
accelerate its operational growth and cement its leading
position both in the leasing and factoring spaces.
72 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 73
NBFI Platform
PAYTABS
EGYPT
Overview
Established in Saudi Arabia in 2014, PayTabs is an
award-winning payment processing powerhouse with
an expansive presence spanning 10 markets. In 2019,
EFG Hermes Holding partnered with the fintech player to
launch PayTabs Egypt — a formidable digital payments
platform and integral part of the Firm’s NBFI platform.
Over the years, PayTabs Egypt has significantly contrib-
uted to the nation’s directives for financial inclusion and
digital transformation by becoming the leading online
payment gateway for a wide range of consumer seg-
ments and businesses across key industries. Today, Pay-
Tabs Egypt offers seamless digital payment solutions for
corporates, SMEs, startups, and freelancers.
Operational Highlights of 2022
Despite ongoing inflationary pressures that hampered
consumer purchasing power, 2022 was a year of excep-
tional growth for PayTabs Egypt. The company success-
fully achieved its operational targets prior to the end of
the year, primarily driven by the rapidly growing demand
for e-payment solutions and market dynamics shifting
more rapidly toward digital solutions that offer cashless
transactions. PayTabs Egypt capitalized on this demand
by providing the market with unique and value-accretive
offerings, broadening its client outreach, and tapping
into high-potential sectors in Egypt. As a result, the digital
payments powerhouse ended the year having registered
a base of over 2,000 merchants, a remarkable growth of
65% Y-o-Y, and over 1.5 million transactions completed
through the platform.
Throughout the year, PayTabs Egypt heavily invested in
diversifying its network of partners, forging a multitude
of strategic collaborations with leading local and re-
gional brands, and offering a wider range of innovative
and tailored payment solutions through its world-class
payments platform. Partnerships for the year included
that with Egypt’s chief digital savings platform, Waffarha,
which leveraged PayTabs Egypt’s cutting-edge tech-
nology and seamless payment processes to offer the
Egyptian market exclusive coupon deals on a myriad of
products and services at affordable price points.
Another major milestone for the year
included the
introduction of Paymes (a PayTabs company) — a one-
of-a-kind social commerce marketplace and a leading
platform in Central Asia. Through this landmark deal,
Paymes will serve as PayTabs Egypt’s social commerce
platform in the MENA region, carving the path for a mul-
titude of freelancers, artisans, consultants, home-based
business owners, personal trainers, food truck vendors,
and members of the gig economy to collect payments
across social media platforms for any services they ren-
der, swiftly and seamlessly.
2022 also saw PayTabs Egypt hone in on the high-value
synergies inherent in EFG Hermes Holding’s business
model, forging partnerships alongside its sister com-
panies in the NBFI platform. valU, the MENA region’s
leading fintech, lifestyle-enabling platform, has been a
strong contributor to PayTabs Egypt’s growth for the year,
unlocking access to a wider number of merchants and
enabling the company to onboard and activate a larger
number of clients. On the hospitality front, PayTabs Egypt
partnered with Jaz Hotels Group and Steinberger Hotels,
supporting both iconic entities in streamlining bookings
and ensuring swift and secure payment processing.
Through these partnerships, guests are now able to pay
their expenses and booking fees through bank cards via
PayTabs Egypt, in addition to valU’s convenient payment
solutions. PayTabs Egypt also came together with valU
to tap into the education sector by partnering with The
Knowledge Hub (TKH) — a multidisciplinary educational
hub of world-class universities — enabling parents to
pay for their children’s tuition and academic fees, books,
and other educational materials seamlessly via PayTabs
Egypt’s payment gateway and valU’s customizable pay-
ment plans. Additionally, PayTabs Egypt joined forces
with valU to partner with the MENA region’s first X2C
online-offline auctioning and e-commerce marketplace,
Mazadat, to unlock access for users to benefit from
valU’s BNPL services for C2C and B2C e-commerce and
process online payments via PayTabs Egypt’s digital pay-
ment gateway.
As part of PayTabs Egypt’s strategy to further build on the
cross-selling capabilities across the Group’s lines of busi-
ness, the company partnered with the NBFI platform’s lead-
ing microfinance arm, Tanmeyah for Microfinance Services,
to digitize its payment collection processes for its network
of businesses and individuals, ultimately playing a pivotal
role in Tanmeyah’s digital transformation strategy.
Forward-Looking Strategy
Going forward, PayTabs Egypt plans to continue infusing
the market with disruptive digital products and payment
methods, which will significantly benefit the company’s
onboarded merchants and attract new ones to its net-
work. Shifting its focus from Cairo, 2023 will see PayTabs
expand beyond Egypt’s capital by venturing into more
underserved governorates. To do so, the company will
deploy on-the-ground teams of experienced profes-
sionals to onboard and activate more merchants as part
of its wider strategy to promote financial inclusion and
contribute to the move toward a cashless society on a
country-wide scale.
Alongside growing its merchant network, PayTabs Egypt
aims to focus and invest in bolstering the customer expe-
rience on its bespoke platform. As such, the digital pay-
ments solution provider is in the process of establishing
a local call center, which is slated to receive inbound and
outbound customer calls and technical support inquiries.
Additionally, PayTabs Egypt plans to onboard a dedicated
quality assurance team, which will be responsible for
monitoring and evaluating the efficiency and reliability
of merchant onboarding processes and effectively ad-
dressing any related issues and concerns.
74 | EFG Hermes Holding | Annual Report 2022
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NBFI Platform
BEDAYA
MORTGAGE FINANCE
Overview
Bedaya Mortgage Finance (Bedaya) is one of Egypt’s
leading providers of non-bank digitalized mortgage fi-
nancing solutions, with its offerings spanning residential,
commercial, and administrative real estate properties. Its
innovative mortgage financing solutions are powered by
disruptive technologies and a well-rounded industry acu-
men, ensuring the fastest turnaround and the best quality
of service in the market.
Established in 2019 as a joint venture between Talaat Mostafa
Group (TMG), Ghabbour Auto’s NBFI arm GB Capital, and
EFG Hermes’ NBFI platform, Bedaya offers its client base a
comprehensive range of cut-to-fit mortgage financing plans
with 10-year repayment periods and convenient interest
rates through its seamless integrated digital platform. The
mortgage financing leader leverages its mortgage finance
and Ijarah programs to enable clients to purchase and reno-
vate properties.
In 2022, Bedaya was
awarded the Best Mortgage
Financing Company in
Egypt in the 2022 Global
Banking & Finance Awards
2022 was a year rife with macroeconomic challenges,
primarily driven by rising interest rates and inflationary
pressures. Despite these volatilities, Bedaya managed to
end the year on a high note, exceeding operational and
financial targets and successfully navigating the chal-
lenging environment. By the end of the year, the com-
pany had registered a twofold increase from the facilities
recorded last year.
Bedaya’s extensive efforts to expand and bolster its
operations throughout the year resulted in a substantial
hike in portfolio value and number of clients served — a
Y-o-Y increase of 206% and 379% versus the end of 2021,
respectively. As a result of this growth, Bedaya ranked
second in the Egyptian mortgage market, according to
the FRA — a testament to the mortgage finance player’s
comprehensive service offerings and the strong demand
surrounding the company’s affordable and inclusive
mortgage financing programs.
Above and beyond the exceptional performance deliv-
ered across the leading mortgage finance player’s core
operations, 2022 saw Bedaya capitalize on the synergies
inherent in the Firm’s business model, coming together
with EFG Hermes’ Investment Banking division to issue
its first securitized bond offering worth EGP 651.2 million
— the first ever securitization issuance for a mortgage
financing company in the Egyptian debt capital market
space. The issuance, which featured a historic tenor of 10
years, was met with substantial interest from investors
and played a pivotal role in expanding Bedaya’s opera-
tional footprint and diversifying its offerings.
2022 also saw Bedaya establish a dedicated sales hub,
as part and parcel of its efforts to enhance operational
systems and processes. Additionally, the company fo-
cused on upscaling its digital mortgage application,
which was launched in 2021, deploying efforts to bet-
ter manage traffic and inquiries. These achievements
allowed Bedaya to effectively manage outbound calls
and generate higher leads during the year.
Bedaya also continues to be an employer of choice in
Egypt’s mortgage landscape, attracting the highest cali-
ber talent in the region.
Forward-Looking Strategy
In 2023, Bedaya aims to continue its upward trajectory by
expanding its operations and presence in the ever-growing
mortgage market and introducing innovative financing
products that provide the best mortgage experiences for
Egyptians locally and abroad, as well as non-Egyptians
living and working in Egypt. The company will focus heavily
on growing its portfolio, with an equal split between returns
from portfolio acquisitions and the retail profile. On the retail
side, the interest rate environment remains challenging,
significantly impacting the retail portfolio. Nonetheless,
Bedaya continues to work toward capturing value-accretive
retail prospects and catering to changing dynamics to
expand its outreach in the Egyptian mortgage space. On
the portfolio acquisition side, Bedaya continues to leverage
its expansive network of prominent and highly reputable
developers to deliver more real estate units to the market,
ultimately capitalizing on the significant demand in the
market and cementing its leading position as the provider
of choice for mortgage facilities.
76 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 77
2022 saw Kaf become the first Egyptian company to officially
transition from takaful insurance to commercial insurance.
NBFI Platform
KAF
Overview
Founded in 2020 following the acquisition of Tokio Marine
Egypt Family Takaful by EFG Finance and GB Capital, Kaf
has grown to become a tech-enabled insurance brand in
Egypt delivering innovative and impactful insurance solu-
tions that drive value for individuals and businesses in the
life and savings arenas. Kaf aims to make insurance prod-
ucts more accessible to the wider Egyptian population,
creating social and community value through insurance
products backed by a trusted digital platform.
2022 Operational Highlights
The year saw Kaf become the first Egyptian company to
officially transition from takaful insurance to commercial
insurance — a journey that began in 2020 in an effort to
expand its customer base and shift focus to more disrup-
tive solutions that upscale the insurance sector.
During the year, Kaf delivered an exceptional performance
across its life and savings insurance offerings, reaching 2
million lives insured by year-end compared to 78,000 lives
recorded in 2020 pre-acquisition. The growth was largely at-
tributed to the synergies inherent in the EFG Hermes Holding
business model that allowed Kaf to extend insurance plans to
customers of the Firm’s leading microfinance arm, Tanmeyah,
in addition to other NBFIs. By collaborating with Tanmeyah, Kaf
mitigated the default risks of Tanmeyah’s borrowers, ensuring
stability and progress of people’s small and micro businesses
as part of both NBFI platform companies’ focus to drive finan-
cial inclusion across Egypt’s governorates.
Alongside the conversion and microinsurance success-
es, 2022 also saw Kaf focus on enhancing the customer
journey experience across its platform by partnering
with world-class IT and consulting firm DXC Technology
to launch a dedicated IT system, which will enable the
company to take its operations to the digital sphere and
strengthen its technological infrastructure to deliver unri-
valed tech-led services to its customers. Additionally, the
company partnered up with the digital insurance broker
Estafsar. Kaf also partnered with e-health platform Este-
shara to enable customers to undergo medical examina-
tions smoothly and seamlessly.
Forward-Looking Strategy
Going into 2023, Kaf aims to venture into the retail space,
launch new digital insurance products, and continue
building its operational and distribution capabilities. The
company also aspires to continue broadening its online
presence by investing in advanced technologies. Ad-
ditionally, following the completion of its conversion
process, Kaf plans to continue raising the bar by leverag-
ing the success of its partnerships with key entities from
within its shareholding groups, such as EFG Finance and
GB Auto, to launch a myriad of new strategic and revolu-
tionary insurance products in the market.
78 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 79
EFG EV Fintech successfully managed to carry out several
landmark transactions during the year, capitalizing on the
synergistic prospects between its own entity and other arms within
the Firm’s NBFI platform.
NBFI Platform
NBFI Platform
EFG EV
FINTECH
Overview
Established in 2017 as a joint venture between EFG
Hermes Holding’s wholly owned subsidiary, EFG Finance,
and government-backed venture capital fund, Egypt Ven-
tures, EFG EV Fintech is Egypt’s flagship boutique micro-
VC arm that seeks out and supports strategic fintech
companies backed by innovative concepts and entrepre-
neurs from start-to-finish. Leveraging over three decades
of investment and regional expertise, EFG EV Fintech
boasts the country’s largest fintech portfolio of the most
prominent companies operating in key sectors within the
fintech space, including insurance-tech, regulatory-tech,
agri-fintech, digital and open banking, and SME lending.
The company not only provides the necessary funds to
enable business growth but also offers legal advisory,
commercial mentorship, and other support services with
an eye for fostering progression and agility in Egypt’s
fintech ecosystem.
2022 Operational Highlights
In 2022, EFG EV Fintech successfully managed to carry out
several landmark transactions during the year, capitalizing
on the synergistic prospects between its own entity and
other arms within the Firm’s NBFI platform.
Throughout the year, the company successfully con-
cluded its exit from Fatura Netherlands B.V. (Fatura) —a
tech-driven B2B platform with a presence in 22 Egyptian
governorates — in which it had been a primary investor
since 2020. Fatura brings together retailers, manufactur-
ers, and wholesalers under one roof, offering users a multi-
tude of innovative services that include a marketplace with
live product viewing and price transparency, B2B BNPL
services, and additional marketing support services. Fol-
lowing EFG EV Fintech’s exit, Fatura was acquired by EFG
Hermes Holding’s leading microfinance arm, Tanmeyah.
Another milestone for EFG EV Fintech during 2022 was
its exit from HR platform, Paynas. The platform offers a
roster of employee management and payment services
to MSMEs, including a cloud-based platform to manage
time, attendance, payroll, and financial products, such
as payroll cards and affordable health insurance. Paynas
also offers financial wellness products, such as earned
wage payouts and salary advances. Following EFG EV
Fintech’s strategic exit from the platform, Paynas was
acquired by EFG Hermes Holding’s leading lifestyle-
enabling fintech platform, valU.
2022 also saw EFG EV Fintech add Fintech Galaxy to
its well-rounded portfolio, a global platform that fosters
innovation and synergies in the financial services ecosys-
tem. As the first ever Central Bank-regulated open financ-
ing platform, Fintech Galaxy focuses on facilitating open
banking API integration between financial institutions
and fintech-focused companies.
Forward-Looking Strategy
Shedding light on 2023, EFG EV Fintech plans to continue
focusing on enhancing the capacities across its portfolio,
leveraging its decades of business expertise to support
its portfolio companies from the very start of their journey
up until the exit stage. EFG EV Fintech’s team of industry
experts continues to proactively support the innovators
in Egypt’s fintech landscape, offering day-to-day assis-
tance, advisory, and mentorship services, with an eye for
upscaling the market and fueling digital transformation
in Egypt. In terms of new investments, EFG EV Fintech
continues to focus on fintech companies that not only
have high potential for growth but also employ disruptive
technologies to create meaningful impact.
80 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 81
1.8 EGP
BN
net interest income in 2022
515 EGP
MN
net profit in 2022, amounting to
14% of Group total
aiBANK plays a vital role in providing retail banking
services to individual clients and corporate debt
services to a wide range of institutional clients.
COMMERCIAL BANK Commercial Bank
COMMERCIAL BANK
OVERVIEW
The year saw the bank successfully access new foreign
currency springs, adjust its pricing strategy, and introduce new
products and services to its comprehensive offering.
The macroeconomic headwinds underpinned by cur-
rency devaluations, geopolitical tensions, interest rate
hikes, inflationary pressures, and liquidity shortages
significantly dampened market activity in 2022. None-
theless, we continued to leverage our diversified busi-
ness model and prudent risk management capacities to
hedge against external shocks and effectively adapt to
changing market conditions. As a result, the year saw the
bank successfully access new foreign currency springs,
adjust its pricing strategy, and introduce new products
and services to its comprehensive offering. I am pleased
that aiBANK witnessed solid growth across its core seg-
ments during the year.
Our Retail and Business Banking segment delivered
outstanding results in 2022, with its deposit and lending
portfolios increasing 23% and 69% Y-o-Y, respectively.
During the year, our focus was on enhancing the efficiency
of our processes while expanding our offerings to cater
to our customers’ needs. Recognizing the importance
of SMEs and their significant contribution to the growth
and development of Egypt’s economy, aiBANK launched
a fast-track, parameterized small business loan program
in line with the Central Bank of Egypt’s mandate to al-
locate 25% of the bank’s total loan portfolio to SMEs,
including 10% dedicated to small businesses. It gives me
great pleasure to say that in 2022, and as a result of the
immense success of our program, aiBANK surpassed the
CBE’s mandate, recording an allocation of 27.8% of its to-
tal loan portfolio to SMEs, including 12.5% being injected
into small businesses — a remarkable achievement for
us and a testament to our unwavering commitment to
supporting the nation’s directives to foster innovation in
Egypt’s nascent entrepreneurial space.
Our Corporate Banking segment recorded strong growth
across its loan portfolio during the year, which was
primarily driven by the hike in the number of corporate
clients operating in various key industries and the or-
ganic growth of its existing client base, coupled with an
increase in syndication and group debt arrangements. In
2022, we successfully managed to grow our corporate
portfolio by an outstanding 98% Y-o-Y. Another remark-
able milestone aiBANK hit during the year was its partici-
pation in the landmark USD 700 million syndicated facility
for Canal Sugar — Egypt’s largest agricultural project and
a state-of-the-art sugar beet processing plant — winning
the bank an award at the African Banker Awards 2022.
On the Islamic Banking side, we began taking the nec-
essary steps to revitalize the segment to better serve
our clients through a broader range of top-notch, value-
accretive Shariah-focused offerings.
Alongside the tremendous accomplishments across our
core operations, it is equally important for us to continue en-
hancing our digital infrastructure to spur digital transforma-
tion across our branches. In alignment with this, I am happy
to announce that we successfully reformed and upgraded
our core banking system, which will enable us to grow our
portfolio of premier online banking solutions across vari-
ous channels and ensure the seamless integration of our
expansive network of branches across the country.
At aiBANK, our commitment to integrating environmental
and social frameworks into our policies, procedures, and
management approach is unwavering. We are continu-
ally seeking solutions that effectively minimize the en-
vironmental impact of our operations, with a particular
focus on key environmental concerns, such as climate
change and greenhouse gas (GHG) emissions. In 2022,
aiBANK’s head office was ranked one of the banks with
the lowest carbon emissions.
In the future, I remain confident in the effectiveness
of the strategy we have in place, which will enable us
to withstand future macroeconomic challenges and
achieve further growth in the year ahead while ensuring
we consistently create value for our stakeholders. I look
forward to reporting another successful year in 2023.
Tamer Seif
Chief Executive Officer & Managing Director
aiBANK
84 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 85
Commercial Bank
aiBANK
As part of its strategy to promote financial inclusion and
spearhead digital transformation across the country, EFG
Hermes Holding, alongside The Sovereign Fund of Egypt
(TSFE), concluded the acquisition of aiBANK in 2021. This
acquisition marked EFG Hermes Holding’s strategic entry
into Egypt’s ever-growing commercial banking sector and
transformed the Group into a universal bank in Egypt, provid-
ing its clients with a holistic suite of financial services.
Founded in 1974, aiBANK has embarked on its transforma-
tion since its acquisition, setting out a strategy to become
Egypt’s only boutique bank with a unique focus on people,
entrepreneurs, and businesses, driving change across the
market. Through a relentless commitment to customer-
centricity, the bank aims to offer market-leading retail,
institutional, and Islamic banking, as well as treasury and
investment services tailored to consumers and businesses
of all sizes. At the same time, aiBANK has set out a key ob-
jective to deliver the fastest turnaround times in the market,
coupled with a commitment to ensuring clients receive
solutions that are directly in line with their needs and exem-
plary service levels at every stage of their customer journey.
Operational Highlights of 2022
Despite the global headwinds witnessed in 2022 driven by
foreign currency shortages, currency devaluations, and a
series of interest rate hikes, aiBANK displayed resilience by
leveraging its agility to hedge against macroeconomic risks,
tapping new streams of foreign currency, making tactical
changes in pricing, and launching new products. By the end
of the year, aiBANK achieved growth across all its segments
— Retail and Business Banking, SME and Midcap, Corpo-
rate Banking, and Islamic Banking — recording an increase
in newly banked customers coupled with organic growth
from its existing customer base. The bank registered total
net loans of EGP 19.3 billion in 2022, reflecting a 102% Y-o-Y
increase from the EGP 9.6 billion recorded in 2021.
On the Retail and Business Banking front, aiBANK achieved
record growth across the segment, with the deposit
portfolio up 23% Y-o-Y and the lending portfolio up 69%
Y-o-Y. The bank continues its persistent efforts to enhance
growth by optimizing its processes, services, and product
ranges. 2022 saw aiBANK capitalize on the importance of
SMEs to the national economy in an effort to further diver-
sify its portfolio, growing its SME portfolio during the year
to reach the Central Bank of Egypt’s (CBE) mandate of 25%
of a bank’s total loan portfolio allocated to SMEs, which
includes a dedicated 10% to small companies. The bank
managed to successfully surpass the mandate in 2022,
with 27.8% of its total loan portfolio dedicated to SMEs,
which included 12.5% allocated to small companies.
Additionally, during the year, the bank introduced a new,
fast-track small business loan program, which resulted in
higher realized gains across its portfolio amounting to EGP
700 million by year-end 2022.
On the Corporate Banking side, aiBANK witnessed significant
growth across its loans and investment portfolio, primarily driven
by the increase in the number of newly banked corporate cli-
ents, including prominent market players in different industries,
coupled with organic growth of the bank’s existing portfolio.
Additionally, the increase in syndication and group debt arrange-
ments resulted in a 98% Y-o-Y increase in the bank’s corporate
portfolio in 2022. In cognizance of its efforts, the bank was
awarded for participating in the multi-tranche, USD 700 million
syndicated facilities for Canal Sugar — Egypt’s largest agricul-
tural project and the world’s largest sugar beet processing plant
— in the African Banker Awards 2022. On the Investment side,
the portfolio witnessed an increase of 518% Y-o-Y.
The year also saw aiBANK take steps to revitalize its Islamic
Banking segment and expand its roster of Shariah-focused
offerings, with an eye for ensuring the best quality of service
to its client base of individuals and businesses.
aiBANK’s Treasury division focused on diversifying the bank’s
excess liquidity of short-, medium-, and long-term invest-
ment tools, enabling it to capitalize on the interest rates hikes
witnessed during the year while maintaining a balanced
maturity ladder to offset liquidity shortages.
Digital Transformation
In efforts to enhance its digital infrastructure and as part of
its wider strategy to contribute to the nationwide directives
of promoting digital transformation, aiBANK has successfully
reengineered and upgraded its core banking system in 2022
to broaden its offered services and better serve its customers.
Financial Highlights of 2022*
In 2022, aiBANK recorded a net interest income of EGP 1.8
billion, reflecting an increase of 61% Y-o-Y from the EGP
1.1 billion recorded at year-end 2021. The bank’s net com-
mission income grew a remarkable 162% Y-o-Y to EGP 316
million, up from the EGP 120.5 million recorded in the previ-
ous year, driven by the increase in volumes of trade finance
transactions and the accelerated bookings of retail loans.
By the end of 2022, the bank had recorded a net profit after
tax (NPAT) of EGP 526 million.
*Figures in this section are based on aiBANK’s standalone
financials
ESG
As aiBANK continues to witness remarkable growth across its
core operations, it becomes more committed to integrating en-
vironmental and social frameworks into the fabric of its policies
and procedures, as well as its management approach. On the
environmental front, the bank aims to consistently minimize the
adverse environmental impact of its operations by regulating its
emissions to tackle key environmental issues, such as climate
change and GHG emissions. Additionally, aiBANK measures the
carbon footprint of its head office and has been ranked one of
the banks with the lowest carbon emissions.
Forward-Looking Strategy
Looking ahead, aiBANK aims to continue expanding its
offering of banking products and services across its core
segments and refurbishing existing segments, with an eye
to growing its customer base. The bank continues to focus
on growing its retail and business banking capacities and
corporate and investment portfolio, while simultaneously
reengineering its Islamic Banking segment, strengthening
its SME business model, and introducing new digital chan-
nels and segmental value propositions to boost its portfolio
and profitability metrics.
86 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 87
11,549
registered shareholders
127
risk and compliance officers
In line with global best practices, EFG Hermes
Holding's prudent and cohesive frameworks ensure
transparency and ethical running across the Group's
lines of business, strategies, and processes.
OUR CONTROLS Our Controls
CORPORATE
GOVERNANCE
EFG Hermes Holding upholds the highest levels of corporate
governance on the Group and subsidiary levels, with rigorous
processes, policies, and procedures in place that ensure
transparent and ethical running throughout the organization.
The Firm’s prudent management and governance frame-
works that have been at the heart of its success over the
years will continue to play a central role as the Group evolves
and further cements itself as a universal bank in Egypt with
a leading investment bank franchise across the entire FEM
space and a dedicated commercial banking arm.
The Firm’s Board of Directors is committed to providing
EFG Hermes Holding with the needed guidance and sup-
port acquired over decades of cumulative experience.
This expertise has helped EFG Hermes Holding grow
sustainably while delivering value to all its stakeholders.
The Group’s Corporate Governance Framework ad-
dresses country-specific policies and works to blend
EFG Hermes Holding’s Group-wide strategy with the
more focused subsidiary development programs. The
framework provides the grounds for efficient decision-
making across the entire organization and guarantees
a high degree of accountability to ensure that all share-
holders and clients have their investments handled in a
responsible and professional manner. The framework
sets out the minimum standards expected Group-wide
while complying with local laws and regulations for an
even higher level of stringency.
Based on the mandate of this framework, the Board of Di-
rectors continues to comply with the Egyptian Financial
Regulatory Authority’s (FRA) corporate governance regu-
lations released in 2016 and updated in 2020, stipulating
the appointment of a majority of non-executive board
members, half of whom should be independent, for all
regulated Egyptian subsidiaries. EFG Hermes Holding
is fully compliant with FRA regulations and Egyptian
Exchange (EGX) listing rules.
The Firm complies with FRA regulations requiring all
FRA-regulated companies in Egypt and companies listed
on the EGX to have 25% female representation on their
boards or two female board members as per the FRA
Decrees No. 109 and 110 for the year 2021.
Moreover, the holding company and its subsidiaries comply
with the FRA Decrees No. 107 and 108 for the year 2021
pertaining to the disclosure rules for ESG practices related to
sustainability and the financial impact of climate change for
FRA-regulated companies and companies listed on the EGX.
Management and Control Structure
Board of Directors
EFG Hermes Holding’s Board of Directors is responsible
for providing the Firm with strategic leadership, financial
soundness, governance, management supervision, and
control. The board is comprised of 12 members, 11 of
whom are non-executive.
Without exception, all EFG Hermes Holding’s Directors
possess a broad spectrum of experience and expertise,
directly related to the Group’s expansive lines of business
and divisions, with a strong emphasis on competence and
integrity. Directors are selected based on the contributions
they can make to the board and management, in addition to
their ability to represent the interests of shareholders.
The Firm’s Annual General Meeting (AGM) continued to
be held virtually. The Firm was one of the first listed com-
panies to comply with Law No. 13 for the year 2022 that
introduced amendments to the Capital Market Law No. 95
for 1992 (CM Law) and its Executive Regulations issued by
Decree No. 135 for 1993 (CMLER), requiring all listed enti-
ties to provide electronic systems that allow shareholders
to attend and vote in general meetings virtually. Most com-
mittees and executive committee meetings were held
virtually in 2022.
The following principles govern the conduct of the
Board of Directors and the Firm:
Compliance with Laws, Rules, and Regulations
Adherence to the law is the fundamental principle on
which the Firm’s ethical standards are built. All directors
must respect and obey all applicable laws, rules, and
regulations. The board complies with the international
best practices, rules, and regulations of the Firm, in ad-
dition to laws and regulations of the markets in which the
Firm operates.
Conflicts of Interest
All members of the board declare their outside business inter-
ests and board directorships annually. They also abstain from
participating in any discussions and decisions that might affect
their own personal interests or those of a loosely related person
or company. Business relationships between the Firm and any
of its board members must be approved by the Firm’s AGM.
Safeguarding and Proper Use of Company Assets
All directors endeavor to protect the Firm’s assets and
ensure their efficient use. All assets must be used for
legitimate business purposes only.
Fair Dealing
Each director should deal fairly with the Firm’s clients,
competitors, providers, and employees. None should take
unfair advantage of anyone through manipulation, con-
cealment, abuse of privileged information, misrepresenta-
tion of material facts, or any other unfair dealing practice.
Code of Conduct
The Code of Conduct defines core values, principles,
and other requirements that all the Firm’s directors and
employees are required to follow while conducting their
regular daily duties.
Standards and Policies
The Firm’s standards and policies comply with Egyptian
and international corporate governance guidelines.
Data Protection Policy
The data protection policy sets out the obligations and
requirements for protecting customers’ personal data
and provides guidance on how and when the Firm can
process their data. In addition, the policy covers regula-
tions introduced in different jurisdictions in which the
Firm operates.
90 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 91
Our Controls
Confidentiality
Directors and officers must ensure the confidentiality of in-
formation entrusted to them by the Firm or its clients, except
when disclosure is authorized or legally mandated. Confiden-
tial information includes all non-public information that might
be of use to competitors, or harmful to the Firm or its clients
if disclosed.
Corporate Opportunities
Directors are prohibited from taking personal advantage
of potential opportunities that are revealed through corpo-
rate information, property, or position without the consent
of the board. Directors are obliged to advance the Firm’s
legitimate interests when the opportunity presents itself.
Audit
Auditing forms an integral part of corporate governance at
EFG Hermes Holding. Both internal and external auditors
play a key role in providing an independent assessment of
the Firm’s operations and internal controls. Furthermore, to
ensure independence, Internal Audit has a direct reporting
line to the Audit Committee, a subcommittee of the board.
Corporate Governance Committees
Audit Committee
The Audit Committee is comprised of five members, all of
whom are non-executive. The committee meets at least
once per quarter or as required. In 2022, the meetings were
held virtually until 3Q2022. The committee is responsible for
the oversight of financial statements and financial reporting,
internal control and governance systems, compliance with
laws and regulations, whistleblowing and fraud, conflict of
interest, the internal audit function, and compliance with
the Code of Conduct established by management and the
board. The committee ensures free and open communica-
tion between the committee members, internal auditors,
management, and the external auditor on a quarterly basis.
Risk Committee
The Risk Committee is comprised of five members, all of
whom are non-executive. The committee meets at least once
per quarter or as required. In 2022, the meetings were held
virtually until 3Q2022. The committee oversees risk, legal, and
operational issues across the Group, assisting the board in ful-
filling its duties with regards to the oversight of the identifica-
tion and management of risks, adherence to risk management
policies, and compliance with risk-related regulatory require-
ments, advising the board on risk appetite and tolerance in
accordance with its strategic objectives. It is responsible for
advising the board on risks associated with strategic acquisi-
tions or disposals and reviewing reports on Group Enterprise
Risk Management, including reports on credit, investments,
market, liquidity and operational risks, business continuity, and
regulatory compliance.
Remuneration and Compensation Committee
The Compensation Committee is comprised of five non-
executive board members. The committee meets once a
year to study compensation within the Group as a whole
(and for senior management in particular) and to assist
the board in fulfilling its duties with regards to strategic
human resources issues and the remuneration policies of
EFG Hermes Holding. This not only safeguards shareholder
interests but also ensures that management’s interests are
fully aligned with those of the Firm. The committee directly
manages the allocations within the Management Incentive
Scheme for Senior Management as approved by the Gen-
eral Assembly. In 2022, the meeting was held virtually.
Corporate Governance Committee
The Corporate Governance Committee is comprised
of three non-executive board members and holds one
meeting per year. The committee’s responsibilities
include periodically evaluating the Firm's corporate
governance structure, reviewing and monitoring the
implementation of the company’s corporate governance
framework, documenting and following up on the board’s
performance evaluation reports, reviewing the regulator's
observations related to the implementation of corporate
governance, and ensuring they are appropriately handled
and addressed. In 2022, the meeting was held virtually.
Nomination Committee
The Nomination Committee is comprised of one executive
and three non-executive board members. It assesses and
oversees the appointment, at the level of the Holding com-
pany, of board members, the Group Chief Executive Officer,
and Group Executive Committee members. It is the commit-
tee’s responsibility to make sure appointments, which must
be approved by the Annual General Assembly, align with the
Group’s strategic directives and ensure the independence
of directors in accordance with applicable laws, regula-
tions, and international best practices. The committee also
conducts regular assessments of the structure, size, and
composition of key executive positions at the Group level.
8. Promoting the Group’s culture and values and monitor-
ing overall employee morale and working environment.
The committee helps to ensure a smooth succession of
board members and, where appropriate, the Group CEO
and Group Executive Committee members. Meetings are
scheduled and held on an as-needed basis.
9. Identifying ESG matters that affect the operations of EFG
Hermes Holding, monitoring ESG integration throughout
the Firm, and passing ESG resolutions while suggesting
updates to the ESG policy for board approval.
Executive Committee
The Executive Committee is appointed by EFG Hermes
Holding’s Board of Directors and is comprised of eight
members, who are strategically selected to ensure all
divisions are represented. The Executive Committee is
entrusted with the implementation of the policy decisions
of the board and overseeing the Firm’s risk management
structures and policies.
Its purview includes:
1. Developing the Firm’s strategic plans and goals for
board approval while managing the material issues to
the business that emerge.
2. Approving transactions within its authority limit in rela-
tion to investments, acquisitions, and disposals, in addi-
tion to considering and approving expansions into new
geographies and product lines.
3. Reviewing the Group’s annual capital, revenue, and cost
budgets while monitoring performance against finan-
cial objectives, in addition to approving cost-cutting
measures as needed.
4. Overseeing the management of the Group’s current and
future balance sheet in line with its business strategy
and risk appetite.
5. Considering material joint ventures, strategic projects
or investments, and new businesses from a capital
perspective, while monitoring and managing capital and
liquidity positions.
The Executive Committee meets once a month to discuss
and follow up on day-to-day operations of the Firm and
address any pressing issues that may arise. In 2022, most
meetings were held virtually.
Shareholder Information
Shareholders
EFG Hermes Holding’s shares are listed on the Egyptian
Exchange (EGX) and the London Stock Exchange (LSE) in
the form of USD-denominated GDRs.
Significant Shareholders
EFG Hermes Holding is required by law to notify the EGX
and the FRA of shareholders whose holdings reach or ex-
ceed 5% of voting rights. Further notification is made once a
multiple of the 5% is exceeded or reduced by a shareholder.
Shareholder Structure
As of 31 December 2022, a total of 11,609 shareholders
were listed in the Firm’s share register.
Executive Holdings and Management Transactions
• As of 31 December 2022, the EFG Hermes Holding
Board of Directors held a total of 1,262,574 shares, rep-
resenting 0.11% of the total 1,167,684,806 shares of EFG
Hermes Holding.
• As of 31 December 2022, shares allocated to EFG
Hermes’ Employees Stock Option Program
(ESOP)
were 60,874,563 shares, representing 5.21% of the total
1,167,684,806 shares of EFG Hermes Holding, pursuant
to the Extra Ordinary General Assembly resolution on 30
May 2021.
6. Aligning investment spending across the Group's func-
tions with its investment plan and strategic objectives and
considering business commitments for board approval.
7. Receiving and considering reports on operational matters
material to the Group or have cross-divisional implications.
Share Ownership Information
All information relating to EFG Hermes Holding’s Securities
held or transacted by members of the Board of Directors and
other insiders are promptly disclosed and reported without fail
in accordance with relevant local and international regulations.
92 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 93
Our Controls
RISK
AND COMPLIANCE
As the world continues to witness unprecedented chal-
lenges and rapid changes in regulations and mandates, the
ability to implement and maintain sound risk and compli-
ance frameworks is growing in importance. This helps
navigate downside risks with agility and drive effective de-
cision-making processes and day-to-day operations with
efficacy and transparency. As such, EFG Hermes Holding,
with its expansive and fast-growing geographic presence,
houses a Risk and Compliance department that manages
the Firm’s global compliance frameworks and adherence
to the same in line with international best practices.
While different, both risk and compliance functions within
the department work closely together to monitor trends
and changes in regulations in all jurisdictions in which
the Firm does business. The functions also develop and
put into action firmwide and divisional policies and pro-
cedures that manage compliance, regulatory, and reputa-
tional risks to ensure proper governance across the Firm,
all while safeguarding client and employee information.
At present, the department boasts 58 compliance of-
ficers, collectively working to ensure the full adherence
of the Firm’s lines of business and subsidiaries to the
applicable statutory provisions, regulations, and internal
policies. Alongside the Compliance team is the Risk
Management team, boasting 69 professionals who are
responsible for identifying, overseeing, and mitigating
the Group’s liquidity, market, and credit risks. Together,
the teams advise the Firm’s businesses, manage audits
and inquiries, educate staff on policies and procedures,
as well as surveilling and testing the Firm’s risk manage-
ment infrastructure under the supervision of the Group
Chief Risk and Compliance Officer.
and to mitigate related risks. A cornerstone of these ef-
forts included consistently updating compliance manu-
als and policies, in addition to implementing a proactive
approach in reviewing and monitoring EFG Hermes Hold-
ing’s adherence to country-specific regulations to ensure
the continuity of the Firm’s expansive operations given the
macroeconomic challenges that the world continues to
face. To enhance its data safeguarding measures and to
cover its obligation of protecting employees and clients,
the department drafted a Group-wide Data Protection
Policy, which was approved by EFG Hermes Holding’s
Board of Directors during the year. 2022 also saw the Risk
and Compliance division mark the major milestone of be-
ing the first Egyptian financial institution to achieve ISO
31000:2018 Enterprise Risk Management Conformity by
the British Standards Institution (BSI), providing guidelines
for managing any form of risk in a systematic, transparent,
and credible manner within different scopes and contexts.
Highlights for the year included:
• Obtaining an investment banking license in the UAE
• Drafting and approving Group-wide Data Protection
policies
• Completing an enterprise-wide AML and Sanctions
Risk Assessment
• Renewing ISO 22301:2012 certification for the seventh
consecutive year
• Obtaining ISO 31000:2018 certification
• Updating business continuity plans
• Conducting business continuity drills across the
Group’s countries of operations
• Formulating the methodology for the calculation of
expected credit losses (ECL) across the Group
2022 Operational Highlights
In 2022, EFG Hermes Holding’s Risk and Compliance
department conducted extensive regulatory reviews and
inspections to ensure Group-wide business continuity
Internal Audit
Internal Audit is an independent assurance function, autho-
rized by the Board of Directors and the Audit Committee to
provide reasonable assurance about the company control
2022 saw the Risk and Compliance division mark the major
milestone of being the first Egyptian financial institution to achieve
ISO 31000:2018 Enterprise Risk Management Conformity by the
British Standards Institution (BSI).
environment. Boasting a roster of competent and multi-
lingual industry professionals, the team is responsible for
monitoring, evaluating, and advising on the adequacy of the
Firm’s operational, financial, and administrative controls,
as well as the efficacy of its information systems. It also
evaluates the effectiveness of risk management practices
and internal control and corporate governance processes
across the Group’s subsidiaries, lines of business, and
support functions, ensuring the full protection of the Group
from both conventional and emerging risks.
Reporting to the Group’s Audit Committee, the Internal Audit
function conducts intermittent inspections and systemic
evaluations in alignment with the committee’s pre-approved
annual plan. To ensure the reviewing process is at maximum
efficiency, the function carries out frequent reviews with
the Firm’s departments in accordance with each function’s
risk level and the internal scores awarded in the previous
review. Accordingly, high- and medium-risk departments
are reviewed on an annual basis, and low-risk departments
are reviewed every other year. Additionally, the division con-
ducts follow-ups on previous audit findings to ensure they
have been appropriately addressed and corrected. It also
provides a wide array of services, including in-depth opera-
tional assessments, evaluations of departmental adherence
to regulatory requirements, and monitoring of corporate
governance, as well as strategic consultation to the business
without compromising the function’s independence.
At present, the Group’s Internal Audit team is made up of nine
centralized auditors covering investment banking and NBFI
activities and 43 auditors covering microfinance services.
2022 Operational Highlights
During 2022, the Internal Audit function successfully
completed its annual audit plan. At the same time, and
in coordination with the division, Ernst and Young’s (EY)
regional office concluded the full audit of EFG Hermes
Holding’s systems, applications, networks, and infra-
structure, with the results of the audit to be reported to
the Group Audit Committee.
To be aligned with the Group’s ESG policies and strate-
gies, the Internal Audit department has included controls
related to ESG-related policies and practices into each
business line’s audit program to ensure full conformity.
The division continued to use TeamMate — a bespoke
digital tool introduced as part of EFG Hermes Hold-
ing’s wider digital transformation strategy — to solidify
EFG Hermes Holding’s leading position as a digitally
integrated financial services group. It is used across the
Firm’s various functions to enhance processes and to ef-
fectively store, analyze, and process the vast quantity of
financial data related to various Group operations across
its footprint to allow for a more accurate and efficient
auditing process.
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Annual Report 2022 | EFG Hermes Holding | 95
Our Controls
By the end of 2022, EFG Hermes Holding conducted five mandatory
training courses for 895 employees, disseminating 4,475 hours of
trainings during the year.
Forward-Looking Strategy
Looking ahead, 2023 will see the Risk and Compliance
department and the Internal Audit division work on fur-
ther streamlining operations and bolstering operational
efficiencies across the Group. On the Compliance side,
the function continues to obtain licenses that enable the
department to support the Firm’s expansions. As such,
and as the Group continues to tap into new markets and
new lines of business, the Risk and Compliance depart-
ment will continue to work together with other divisions
to ensure new products, business lines, and subsidiar-
ies — particularly in the Investment Bank and NBFI
platform — are seamlessly integrated into EFG Hermes
Holding’s control frameworks, and that any new laws and
regulations regarding these expansions are accurately
reflected and addressed.
Employee Awareness
As EFG Hermes Holding continues to achieve signifi-
cant growth and expansions across its core operations,
subsidiaries, and geographical footprint, it is integral
to communicate Group-wide strategies, policies, and
procedures to employees and to foster transparency
and integrity across the board. In alignment with this,
the Risk and Compliance department is committed
to taking part in Human Resources (HR) onboarding
processes and conducting orientation sessions for new
recruits on audit-, compliance-, and risk-related issues
to ensure consistent alignment with the Group’s opera-
tional frameworks.
To guarantee that all employees develop a comprehen-
sive level of understanding on key subjects, the Firm
conducts mandatory training courses that delve into
key issues, such as financial crime, fraud prevention,
general data protection regulations (GDPR), cybersecu-
rity, and ESG awareness, under the supervision of the
Compliance function. By the end of 2022, EFG Hermes
Holding conducted five mandatory training courses for
895 employees, disseminating 4,475 hours of trainings
during the year.
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Annual Report 2022 | EFG Hermes Holding | 97
7,000+
employees at year-end 2022
EFG Hermes Holding's decades-long track
record of success is attributed to the strength
and dedication of its people.
OUR TEAM Our Team
OUR
PEOPLE
Out of the Shadows of the Pandemic
With COVID-19 retreating, 2022 started off with a different,
more positive energy as normalcy crept back in. While we
were glad to put it behind us and more than ready to plan
without restrictions, we knew we wanted to continue to
build on the learnings of the past couple of years.
Being able to plan our HR calendar without the ghost of
pandemic restrictions looming over us was refreshing.
Rather than focus on what we couldn’t do, we could turn
our attention to all the possibilities back on the table.
Rather than think of how we needed to maintain a physi-
cal distance between employees for their own benefit
and wellbeing, we were able to focus on all the synergies
we could create by bringing them back together. But
naturally, this came with a price — a built-in challenge:
we had no excuses and plenty of opportunity.
Tech-enabled HR
Although already glaringly obvious, the pandemic magni-
fied the value of and need for digital HR solutions. But the
ability to synergize our processes and programs across
the different facets of HR and the different geographies
transcends the pandemic, and our digital HR agenda
remains a cornerstone of our plans. We’re proud of the
scope of digital transformation our HR offering saw
throughout the past year.
2022 saw the introduction of our succession planning
tool on Talent Central. Conceptualized to capture our
revamped Succession Planning 2.0 framework, this
tool has enabled a seamless, organized collection and
analysis of all-important succession data needed to
ensure the firm’s sustainability, highlighting our strengths
and vulnerabilities, and allowing us to work on them in
a pre-emptive manner. And, with the introduction of our
brand-new Learning Management System (LMS), we’re
well-positioned to synergize the outcome of our succes-
sion planning with our learning agenda.
Recognizing the importance of data, especially from our
employees, informed the prioritization of the first feature
of our HR Services platform. We believe capturing feed-
back from departing employees is key, so we’ve digitized
our exit interviews, allowing for a more organized analy-
sis of our findings and, in turn, any corresponding actions
and impact.
We continue to upgrade our promotions and development
needs analysis (DNA) tools to further refine the process,
the output, and the user experience. We will continue
to release enhanced versions that positively impact the
process, the output, and the experience of the programs
these tools support.
Employee Development
As always for a people business, focusing on growing our
people and expanding their horizons remained a non-nego-
tiable priority. As restrictions lifted and we were finally able
to bring people together, the behind-the-scenes work we’ve
been doing on The Academy’s programs saw the light this
year. The refined assessment and selection methodologies
came into play and augmented the value of the programs
we ran. In addition to running the final modules for Emerging
Leaders I, II, and the Leadership Development Programme
(LDP), we ran a successful first module for the first intake of
our Executive Development Programme (EDP).
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Our Team
The ability to synergize our processes and programs across
different facets of HR and different geographies by leveraging our
digitalization strategy remains a cornerstone of our plans.
And, as always, current employees were always the first tal-
ent pool we searched within when filling open roles, be they
short-term or permanent assignments, many of which were
cross-border. This remains one of our strongest employee
development tools.
Forward-Looking Strategy
Tech-enabled HR is a mainstay on our agenda — we still
have ambitious plans. We plan to expand Talent Central
to house all our talent management and talent develop-
ment tools, processes, and databases. We also plan to
expand our services platform, focusing on efficiency and
effectiveness. Across both platforms, analytics is a focal
point; with all the valuable data we are amalgamating, we
will make sure we make full use of it. To this end, we’re
upgrading our data analytics capabilities across multiple
areas within HR.
Employee wellbeing is another focal point and, accord-
ingly, a complete benefits audit is a key component of
our 2023 plan. It’s important that our offering continues
to address and satisfy the evolving needs of our employ-
ees. We plan to partner with market leaders in employee
benefits across our complete footprint to assess and
benchmark our benefits portfolio to make improvements
and changes accordingly.
Riding on the back of the stronger openness to and adop-
tion of digital learning as a viable learning medium that the
pandemic brought on, we partnered with LinkedIn Learn-
ing, providing our employees unlimited access to the most
extensive and most renowned library of digital learning
content available.
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Our Team
EXECUTIVE
COMMITTEE
Karim Awad
Group CEO and Chairman of the
Executive Committee, EFG Hermes
Holding
Mr. Karim Awad is Group Chief Executive Officer, Chairman of the Executive Com-
mittee, and a member of the Board of Directors of EFG Hermes Holding S.A.E. With
over 23 years of experience, Mr. Awad started his career at EFG Hermes in 1998 in
the Investment Banking Department, eventually heading the division in 2007 and
leading several high-profile local and regional transactions. He assumed managerial
roles in the Firm thereafter, first as CEO of the Investment Bank in 2012 and then as
Group CEO in 2013.
Since then, Mr. Awad has led a substantial restructuring of the Firm that included
streamlining its expenses and divesting its non-core assets, primarily among which
was a majority stake in Lebanese bank, Credit Libanais. Working together with the
EFG Hermes Holding senior management, Mr. Awad spearheaded a major shift in
the Firm’s strategy that transformed EFG Hermes from a MENA-based investment
bank to a frontier markets financial solutions house. To achieve this vision, the Firm
focuses on six pillars: hiring the best people, improving the Firm’s positioning in
markets it operates in, selectively expanding its geographical presence, enhancing
its product offering, increasing profitability metrics, and ensuring that public respon-
sibility remains front and center to all its operations.
During the past nine years, the Firm was able to enhance its market share in its
core sell-side operations of investment banking, brokerage, and research in its
key markets of the UAE, KSA, and Egypt, while expanding its presence to seven
new markets that span sub-Saharan Africa and Asia. The buy-side business was
completely revamped through the consolidation of its regional asset management
business with UAE-based affiliate, Frontier Investment Management (FIM), in 2017
and the re-emergence of an active Private Equity division that is becoming a key
player in renewables, education, and healthcare. The Firm was also able to sig-
nificantly increase the suite of products it offers to clients by building a full-fledged
non-bank financial institutions (NBFI) platform that currently includes leasing,
factoring, microfinance, BNPL, mortgages, payments, and insurance, in addition to
fixed income and structured product platforms. In November 2021, EFG Hermes
Holding finalized an acquisition of a commercial bank in Egypt, thereby completing
its transformation into a universal banking platform that will further increase the
suite of products that it offers its clients while laying a strong foundation for the
Firm’s future growth prospects.
The strategic shift helped drive growth in the Firm’s revenues, which reached EGP
6.1 billion, and profits, which stood at EGP 1.45 billion in 2021, all while maintaining a
strong commitment to the communities in which the Firm operates through a vibrant
CSR policy and actively adopting progressive ESG standards.
Mr. Awad holds a degree in business administration (BBA) from The American Uni-
versity in Cairo.
Mohamed Ebeid
Co-CEO of the Investment Bank
(Sell-Side), EFG Hermes
With more than two decades of experience with EFG Hermes, Mr. Mohamed Ebeid
is currently the Co-CEO of the Investment Bank, a position he assumed in 2016 with
a mandate to grow the business on the sell-side and to expand its product offering
in multiple continents.
Since then, he has successfully built the Firm’s sell-side business across various busi-
ness lines. On the investment banking side, Mr. Ebeid led the Firm to work on deals
across multiple jurisdictions in the MENA region and frontier markets worth over USD
54 billion. He also built the Frontier business with on-the-ground operations in four
different continents, giving clients access to more than 75 markets around the world.
Mr. Ebeid has also led the development of the Firm’s Structured Products Platform,
which has pulled in trades worth c. USD 5 billion since inception in 2017. This is in
addition to the creation of the Fixed-Income Desk, which began operations in 2018.
Mr. Ebeid began his career with the Firm in 1999 in the Securities Brokerage division,
and he has since held numerous positions within the Firm. Most recently, he acted as
Head of Brokerage, where he managed to restructure the business and streamline
its activities in just over two years, all while boosting profitability.
He held the post of Head of Institutional Sales beginning 2006 and managed to add
GCC institutional clients and sovereign wealth funds to the Firm’s client base. Mr.
Ebeid was also an integral part of EFG Hermes’ Institutional Sales team, heading
an endeavor to expand the Firm’s western institutional client base and further root
the business in its home market of Egypt. During that time, he was part of the team
executing the Firm’s expansion plan in the MENA region and directing its capabilities
in terms of research and corporate access.
He holds a BCom with a specialization in accounting from Ain Shams University.
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Our Team
Karim Moussa
Co-CEO of the Investment Bank
(Buy-Side) and Head of Asset
Management and Private Equity,
EFG Hermes. CEO, Vortex Energy
Mr. Karim Moussa joined EFG Hermes in Dubai in 2008, with the primary respon-
sibility of building the Firm’s value-add and core infrastructure private equity
platforms. Today, he leads EFG Hermes’ USD 4.5 billion buy-side business, a role
he has held since 2017.
Mr. Moussa led the establishment of Vortex Energy in 2014, raising and de-
ploying close to USD 1 billion in renewable energy assets across Europe. He
recently launched the Vortex Energy IV fund, an energy transition fund that has
invested in IGNIS, a 20GW leading and fully integrated Spanish renewables
company, and EO Charging, UK’s leading charging solutions provider for fleet
and buses. Within Vortex Energy, he successfully completed the exit of an op-
erating portfolio of c. 460 MW onshore wind assets in France, Spain, Portugal,
and Belgium to funds managed by J.P. Morgan. In addition, he has successfully
completed the sale of a controlling stake in a 365 MW operating solar portfolio
to Tanaga Nasional in the UK, delivering combined (net) c. 13% IRR and 1.4x
MOIC paying cash yields in excess of 5% p.a. to investors.
Mr. Moussa also led the launch of the Egypt Education Platform (EEP), a USD 150
million fund, dedicated to investing in Pre K-12 schools and education services in
Egypt, aggregating 25 assets with a total student capacity of 25,000. Other flagship
PE deals he led include Nasdaq-Dubai’s USD 445 million take-private of DAMAS In-
ternational and later its exit, delivering c. 2x MOIC. Mr. Moussa sits on the Investment
Committee of several EFG Hermes’ sponsored funds. He is also a Member of the
Board of Directors of various portfolio companies.
Prior to joining EFG Hermes, Mr. Moussa was Vice President at Deutsche Bank’s
Global Banking division, with responsibilities across M&As, ECM, and DCM ad-
visory in the MENA region. In this role, he advised on the USD 4.2 billion Dubai
Ports World IPO, the USD 670 million sale of Sokhna Port to Dubai Ports World,
and the USD 1.4 billion LBO of the Egyptian Fertilizers Company by Abraaj Capi-
tal. He joined Deutsche Bank in 2001 as an Analyst in the M&A execution team
in Frankfurt, advising on several mid-cap transactions in Continental Europe.
He moved to Dubai in 2005 with the CEO of Deutsche Bank MENA to help
establish the bank’s regional business. He started his career at Berlin Capital
Fund, a venture capital fund managed by Berliner Bank.
Mr. Moussa holds an MA in business administration and mechanical engineering
(Diplom Wirtschaftsingenieur) from the Technical University of Berlin.
Mohamed El Wakeel
Group Chief Operating Officer, EFG
Hermes Holding
Mr. Mohamed El Wakeel is the Group Chief Operating Officer (COO) at EFG
Hermes Holding. Following three years at HSBC, Mr. El Wakeel joined the Firm
in 2000 as part of the operations team of the Securities Brokerage division. After
succeeding in streamlining the division’s operations to ensure best-in-class prac-
tices and efficiency, he moved on to head brokerage operations for Egypt then
took on the title of the Securities Brokerage Group’s Head of Operations. As Head
of Operations, Mr. El Wakeel played a pivotal role in setting up and integrating the
operations of the Firm’s newly launched offices in new markets.
His role also included strengthening the IT infrastructure, upgrading the Firm’s
security framework, and enhancing in-house app development to encompass
the requirements of all lines of business. Prior to becoming Group COO, he was
Group Head of Market Operations at the Firm, where his hands-on experience
was key to the enhancement of EFG Hermes Holding’s operations across mul-
tiple lines of business.
Mr. Wakeel holds a BBA, Faculty of Commerce, Ain Shams University.
Mr. Abdel Wahab Mohamed Gadayel is EFG Hermes Holding’s Group Chief
Risk and Compliance Officer, a post he has held since 2013. Prior to this, he
served as Group Head of Compliance for three years, where he played a key
role in setting and refining the Group’s policies and procedures and enhancing
the Group’s compliance framework. During his current tenure in Risk Manage-
ment, Mr. Gadayel revamped the Group’s risk management framework and
policies, oversaw the issuance of the Group’s risk appetite framework, and
obtained the ISO 22301:2019 certification for the Firm’s Business Continuity
Management System and the ISO 31000:2018 certification for the Firm’s
Enterprise Risk Management.
Abdel Wahab Mohamed
Gadayel
Group Chief Risk and Compliance
Officer, EFG Hermes Holding
Mr. Gadayel joined EFG Hermes in 1998 as an Operations Officer, later being
promoted to Deputy Head of Operations, a role he held until 2004. He also held
the post of Managing Director of Operations at EFG Hermes UAE between 2004
and 2009, where he integrated newly acquired offices in the lower GCC region,
helping the Group rapidly expand into new markets during his tenure.
Mr. Gadayel graduated from Cairo University with a major in economics and a
minor in political science.
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Our Team
Mohamed AbdelKhabir
Group Chief Financial Officer, EFG
Hermes Holding
Inji Abdoun
Group Chief Human Resources
Officer, EFG Hermes Holding
Mr. Mohamed AbdelKhabir is EFG Hermes Holding’s Group Chief Financial Officer
(CFO), member of the Executive Committee, and a board member in several of EFG
Hermes Holding’s subsidiaries. Since assuming his role in 2016, Mr. AbdelKhabir has
been actively involved in transforming EFG Hermes from a MENA-based investment
bank to a frontier markets financial solutions house. He participated in acquiring and
establishing various subsidiaries across the frontier markets, as well as a number of
NBFI subsidiaries in the microfinance, insurance, consumer finance, BNPL, leasing,
factoring, mortgage, and e-commerce spheres. Most recently, he participated in
the acquisition of aiBANK in Egypt. He has also been responsible for funding those
expansions and managing the balance sheet of the Group, in addition to investor
relations, budgeting, reporting, accounting, and taxation.
Prior to his current post, Mr. AbdelKhabir joined EFG Hermes’ Investment Banking
division in early 2008. His notable transactions during his investment banking tenure
include the IPO of Integrated Diagnostics Holding (IDH) through a secondary offer-
ing worth USD 334 million in the LSE. He was also involved in the sale of Cleopatra
Hospital in Egypt to the Abraaj Group, the merger of Al Borg and Al Mokhtabar labo-
ratories, ENPC’s USD 1.05 billion syndicated loan, and the issuance of ODH EDRs
worth USD 1.8 billion.
Previously, he held the position of Financial Planning Manager at Procter and
Gamble in the Corporate Finance division with a focus on financial planning, bud-
geting, corporate restructure, integration, and profit forecasting.
Mr. AbdelKhabir holds a BA in business administration (BBA) from The American
University in Cairo with a major in finance and a minor in economics and psychol-
ogy. He is also a CFA charter-holder.
Ms. Inji Abdoun joined the Human Resources (HR) department at EFG Hermes in
June 2007 as HR Manager for the UAE with a mandate to establish an HR function
for the Group’s operations, while contributing to the department’s Group-wide initia-
tives with a focus on talent management. Her mandate expanded in 2008, as she
played an active role in integrating newly acquired operations in Oman and Kuwait
and enhancing the HR function in the Saudi office.
In 2009, Ms. Abdoun became the Group Head of Human Resources, overseeing
the full spectrum of the department’s functions across the Group while working
closely with the Firm’s management team, providing HR insights into business
issues. As of 2017, Ms. Abdoun became the Group’s Chief HR Officer, continuing to
oversee the Group’s HR activities and working with the executive team as part of
the Executive Committee.
Prior to joining EFG Hermes, Ms. Abdoun assumed HR management roles at LINK-
dotNET (an OT subsidiary) and Fayrouz International (a Heineken subsidiary), as well
as a role in career advising and placement at AUC’s Career Advising and Placement
office (CAPS), accumulating more than 19 years of experience in the field.
Ms. Abdoun is a certified Myers-Briggs practitioner. She holds an MBA from the MIT
Sloan School of Management.
Aladdin ElAfifi
CEO of EFG Finance, EFG Hermes
Holding's Non-Bank Financial
Institutions (NBFI) Platform
Mr. Aladdin ElAfifi is the CEO of EFG Finance, EFG Hermes Holding's Non-Bank
Financial Institutions (NBFI) Platform, and is responsible for leading its entire
portfolio, including leasing, factoring, microfinance, insurance, mortgage, and
payments, as well as the addition of new services, whether organically or through
acquisitions. He is also a non-executive board member representing the major-
ity shareholder for valU, a board member of EFG Hermes Corp-Solutions, and a
board member of EFG Finance. Additionally, Mr. ElAfifi is an Endeavor mentor,
sharing knowledge and expertise with young entrepreneurs heading small- and
medium-sized businesses. With over 23 years of financial advisory and direct
investment experience, Mr. ElAfifi most recently co-founded the Cairo-based real
estate investment management and advisory business, 46 Group. He was also the
Co-CEO of Pharos Holding, where he overlooked securities brokerage, asset man-
agement, and investment banking and advisory activities. In addition, he helped
co-found Egypt’s first nano-lending startup, Kashat, and worked on the funding
and sponsoring of startups directly and through work with Startupbootcamp as
Co-Manager of the first Egyptian fintech accelerator.
Prior to joining Pharos, Mr. ElAfifi led the team managing Qalaa Holding’s invest-
ments in mining industries, gold exploration, and the waste management sector
through the creation of Tawazon, a local and regional market leader in the field of
municipal and agricultural solid waste management. He was also a senior member
of the team that established TAQA Arabia, a full-service energy (natural gas and
electricity) distribution group, and the initial team that worked on conceptualizing,
negotiating, and signing the Framework Agreements for what would later become
the Egyptian Refining Company (ERC).
Mr. ElAfifi previously worked in London as an Investment Banker at Goldman
Sachs’s UK M&A and the Industrials and Natural Resources teams after having
begun his career at EFG Hermes Investment Banking. With both Goldman Sachs
and EFG Hermes Holding, he worked on several high-profile M&A and capital
market transactions across a multitude of sectors.
Mr. ElAfifi is a Chartered Financial Analyst (CFA). He also holds an MBA from the
Wharton School of Business with a concentration in finance, strategic, and entre-
preneurial management, and he is a recipient of the Joseph Wharton fellowship.
He holds a BA in economics with a minor in business administration from The
American University in Cairo.
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Our Team
BOARD
OF DIRECTORS
Mona Zulficar
Non-Executive Chairperson, EFG
Hermes Holding
Ms. Mona Zulficar has served as Non-Executive, Independent Chairperson of EFG
Hermes Holding since April 2008. She is a Founding Partner and Chairperson of Zul-
ficar & Partners Law Firm, a specialized law firm consisting of 13 partners and more
than 65 associates. Established in June 2009, Zulficar & Partners has since grown
into one of the top ranked law firms in Egypt. Ms. Zulficar was previously Senior
Partner at Shalakany Law Firm and Chair of its Executive Committee for many years.
Ms. Zulficar is recognized in local and international legal circles as the precedent
setter and one of Egypt’s most prominent corporate, banking, and project finance
attorneys. As an M&A and capital markets transactions specialist, Ms. Zulficar has
led negotiations on some of Egypt’s and the Middle East’s largest and most complex
successful transactions over the past three decades.
Ms. Zulficar also played an instrumental role in modernizing and reforming economic
and banking laws and regulations, both in her capacity as former board member of
the Central Bank of Egypt during the banking reform program from 2003 to 2011 and
as a prominent member of national drafting committees. Ms. Zulficar is a leading
human rights activist recognized locally and internationally, and she has initiated sev-
eral successful campaigns for human rights legislation, including women’s rights,
freedom of opinion, and family courts. Ms. Zulficar served as VP of the Constitutional
Committee, played a key role in drafting the 2014 Egyptian Constitution, and was a
member of the National Council for Human Rights until September 2021.
Ms. Zulficar was recently elected President of the first Egyptian Microfinance
Federation, currently the Egyptian Federation for Financing Medium, Small, and
Micro Enterprises, and she chairs several NGOs active in social development and
microfinance for underprivileged women. Internationally, Ms. Zulficar served two
terms as an elected member of the United Nations Human Rights Council Advisory
Committee until 2011.
Ms. Zulficar holds a BSc in economics and political science from Cairo University
and an LLM from Mansoura University, as well as an honorary doctorate degree in
law from the University of Zurich.
Karim Awad
Group CEO and Chairman of the
Executive Committee, EFG Hermes
Holding
Mr. Karim Awad is Group Chief Executive Officer, Chairman of the Executive Com-
mittee, and a member of the Board of Directors of EFG Hermes Holding S.A.E. With
over 23 years of experience, Mr. Awad started his career at EFG Hermes in 1998 in
the Investment Banking Department, eventually heading the division in 2007 and
leading several high-profile local and regional transactions. He assumed managerial
roles in the Firm thereafter, first as CEO of the Investment Bank in 2012 and then as
Group CEO in 2013.
Since then, Mr. Awad has led a substantial restructuring of the Firm that included
streamlining its expenses and divesting its non-core assets, primarily among which
was a majority stake in Lebanese bank, Credit Libanais. Working together with the
EFG Hermes Holding senior management, Mr. Awad spearheaded a major shift in
the Firm’s strategy that transformed EFG Hermes from a MENA-based investment
bank to a frontier markets financial solutions house. To achieve this vision, the Firm
focuses on six pillars: hiring the best people, improving the Firm’s positioning in
markets it operates in, selectively expanding its geographical presence, enhancing
its product offering, increasing profitability metrics, and ensuring that public respon-
sibility remains front and center to all its operations.
During the past nine years, the Firm was able to enhance its market share in its
core sell-side operations of investment banking, brokerage, and research in its
key markets of the UAE, KSA, and Egypt, while expanding its presence to seven
new markets that span sub-Saharan Africa and Asia. The buy-side business was
completely revamped through the consolidation of its regional asset management
business with UAE-based affiliate, Frontier Investment Management (FIM), in 2017
and the re-emergence of an active Private Equity division that is becoming a key
player in renewables, education, and healthcare. The Firm was also able to sig-
nificantly increase the suite of products it offers to clients by building a full-fledged
non-bank financial institutions (NBFI) platform that currently includes leasing,
factoring, microfinance, BNPL, mortgages, payments, and insurance, in addition to
fixed income and structured product platforms. In November 2021, EFG Hermes
Holding finalized an acquisition of a commercial bank in Egypt, thereby completing
its transformation into a universal banking platform that will further increase the
suite of products that it offers its clients while laying a strong foundation for the
Firm’s future growth prospects.
The strategic shift helped drive growth in the Firm’s revenues, which reached EGP
6.1 billion, and profits, which stood at EGP 1.45 billion in 2021, all while maintaining a
strong commitment to the communities in which the Firm operates through a vibrant
CSR policy and actively adopting progressive ESG standards.
Mr. Awad holds a degree in business administration (BBA) from The American Uni-
versity in Cairo.
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Our Team
Yasser El Mallawany
Non-Executive Vice Chairman of
the Board, EFG Hermes Holding
Mr. Yasser El Mallawany is the Non-Executive Vice Chairman of EFG Hermes Hold-
ing’s Board of Directors. Since his appointment as Chief Executive Officer of the Firm
in 2003, Mr. El Mallawany has played a key role in driving the consolidation of Egypt’s
investment banking sector and facilitated the emergence of EFG Hermes as the
leading Arab investment bank at the time.
Mr. El Mallawany began his career at Commercial International Bank (CIB), formerly
Chase National Bank, and his tenure at CIB spanned over 16 years, last serving as the
General Manager of the Corporate Banking Division. He joined EFG Hermes at the
time of the Firm’s merger with CIIC.
Mr. El Mallawany holds a BA in accounting from Cairo University.
Mr. Takis Arapoglou is a Non-Executive Member of EFG Hermes Holding’s Board
of Directors. He had an earlier career in international capital markets and corporate
and investment banking based in London and later in managing, restructuring, and
advising publicly listed Financial Institutions and Corporates, primarily in SE Europe
and the Middle East.
His most recent executive roles include: Managing Director and Global Head of the
Banks and Securities Industry for Citigroup, Chairman and CEO of the National Bank
of Greece, and CEO of Commercial Banking at EFG Hermes Holding across the
Middle East and Africa for the period between 2010 and 2013.
Marwan Elaraby
Partner, Gibson, Dunn & Crutcher LLP
Efstratios Georgios (Takis)
Arapoglou
Non-Executive Board Member, EFG
Hermes Holding
Mr. Arapoglou has broad and extensive experience as a board member, and he
currently holds the following non-executive board positions: Chairman of Bank of
Cyprus Group, listed in the LSE; Chairman of Tsakos Energy Navigation (TEN) Ltd,
listed in the NYSE; and Board Member of EFG Hermes Holding SAE, listed in the EGX
and the LSE.
Mr. Arapoglou has degrees in mathematics, engineering, and management from
Greek and British universities.
Jean Cheval
Senior Advisor, NATIXIS
Mr. Marwan Elaraby is a Non-Executive, Independent Member of EFG Hermes
Holding’s Board of Directors. He is based in Dubai, where he serves as partner in the
Capital Markets, Private Equity, and Mergers and Acquisitions practices at Gibson,
Dunn & Crutcher LLP. His practice focuses on advising governments and private
capital clients on a variety of corporate and capital market transactions across sev-
eral industries. Mr. Elaraby was previously a partner at Shearman & Sterling LLP and a
Managing Director at Citadel Capital (now Qalaa Holdings), one of the leading private
equity firms in the Middle East and Africa. Mr. ElAraby also served as Executive Direc-
tor in EFG Hermes’ investment banking group, where he worked as an investment
banker advising clients on numerous capital markets and M&A transactions in the
Middle East.
Mr. Elaraby is a New York-qualified lawyer. He holds a BA in economics from The
American University in Cairo and a Juris Doctor (J.D.) degree from Columbia Univer-
sity School of Law.
Mr. Jean Cheval is a Non-Executive Member of EFG Hermes Holding’s Board of
Directors. He joined Natixis in June 2009, leading the Debt and Finance department
(Structured Finance) until 2012 and the European Area between 2011 and 2012. Mr.
Cheval became Head of Finance and Risk, member of Natixis Senior Management
Committee, and Second Senior Manager of Natixis in September 2012, holding said
positions until October 2017. Since then and until March 2022, he became Senior
Advisor to Natixis' CEO. He currently chairs the Risk Management Committee of the
Board of Alpha Bank, Greece, and the Natixis Foundation for research and innova-
tion. He is also a member of the Board of Natixis Algeria.
Mr. Cheval spent most of his career at Credit Agricole lndosuez (1983–2001), where
he was successively Chief Economist, Head of Strategic Planning and Budget, Head
of Structured Financing, and Head of the Middle East and Asia, prior to being ap-
pointed General Manager. Mr. Cheval also served as Director of Al Bank Al Saudi Al
Fransi in KSA, WAFA Bank in Morocco, and Banque Libano-Française in Lebanon.
Mr. Cheval was also Head of Banque Audi France, Chairman of Banque Audi Swit-
zerland (2001–2005), and member of the Board of Audi-Saradar Bank (2002–2006).
Mr. Cheval previously worked for the French Ministry of Industry and the French
Planning Agency.
He graduated from the École Centrale de Paris’ Engineering School and the Univer-
sity of Berkeley.
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Our Team
Zubyr Soomro
Chairman, United National Bank
Ltd, UK
Mr. Zubyr Soomro is a Non-Executive, Independent Member of EFG Hermes Hold-
ing’s Board of Directors.
Mr. Soomro has been an international banker for 33 years, with experience at Ci-
tibank and in senior-level assignments in the Middle East, Turkey, UK, and Pakistan. In
1997, he was appointed as Chairman and President of United Bank and tasked with
restructuring it for privatization, after which he re-joined Citibank’s Pakistan franchise
as its Managing Director. He was awarded the Quaid-e-Azam Centenary Gold Medal
by the State Bank of Pakistan in 2004 for leading reforms in the banking sector in his
role as Chairman of the Pakistan Banks Association and his successful restructuring
of United Bank. In recognition of this, he was invited to speak by the World Bank in
Washington D.C., the IMF in Egypt, and the IFC in Bangladesh on the restructuring of
public sector banks. In 2019, he was asked by the government of Pakistan to help re-
structure the remaining large public sector bank, the National Bank of Pakistan (NBP),
as an Independent, Non-Executive Director and Chairman, a position he held until
April 2022. In addition, he was appointed as a Non-Executive Director and Chairman
of NBP's joint venture bank in the UK, United National Bank Ltd, until October 2022.
Over the last 20 years, Mr. Soomro has also been actively involved in financial inclu-
sion and poverty alleviation, and he was the Chairman of the Pakistan Microfinance
Investment Company, the apex entity for the sector and majority owned by UK and
German government-related entities. He served on the boards of Pakistan Pov-
erty Alleviation Fund, LUMS, the National Education Management Foundation, LRBT,
Aitchison College, Acumen Pakistan, Grameen Foundation in the USA, and the Indus
Valley School of Art and Architecture.
He served on the government’s Economic Advisory Council twice (1997–1999 and
2013–2018), and he has been a member of the board of the State Bank of Pakistan,
the policy board of the Security and Exchange Commission of Pakistan, and the
board of the National Investment Trust. He also served as the Chairman of the Board
of the Karachi Stock Exchange, President of the Overseas Chamber of Commerce
and Industry, and President of the American Business Council.
Mr. Soomro has a BSc Hons from the London School of Economics (LSE) and an MA
from the School of Oriental and African Studies, London University. He also attended
executive programs at the Harvard Business School and the Harvard Kennedy
School. He received extensive formal training in key areas of commercial, invest-
ment, and private banking within Pakistan and globally while working at Citibank.
Mr. Abdulla Khalil Al Mutawa is a Non-Executive, Independent Member of EFG
Hermes Holding’s Board of Directors. He is a competent and dedicated investment
professional with more than 39 years of experience and a comprehensive back-
ground in finance and administration. He is currently the General Manager of the
Private Office of H.E. Sheikh Suroor Bin Mohammad Al Nahyan.
Mr. Al Mutawa has also served on the Board of Directors of Bank Alfalah Limited,
Pakistan, since 1997, with membership posts on the bank’s Board Audit Committee
(BAC), Remuneration and Nomination Committee (BHR&NC), Board Risk Manage-
ment Committee (BRMC), Board Compensation Committee (BCC), and Board
Information Technology Committee (BITC), in addition to serving as Chairman of the
Board Strategy and Finance Committee (BS&FC).
Mr. Al Mutawa is also Chairman of Makhazen Investment PJSC (Private Joint-Stock
Company), Abu Dhabi, and Chairman of the Makhazen Executive Committee.
Mr. Al Mutawa holds a BSc in business administration from the University of North
Carolina, USA.
Mr. Khalid Mana Saeed Al Otaiba is a Non-Executive, Independent Member of EFG
Hermes Holding’s Board of Directors. Mr. Al Otaiba has been Office Manager for His
Excellency Dr. Mana Saeed Al Otaiba, Personal Advisor to H. H. President of the UAE
Sheikh Mohammed bin Zayed Al Nahyan, since 2000. Mr. Al Otaiba also holds the
post of Deputy Chairman of Al Otaiba Group of Companies. He leverages his over 22-
year career, spanning numerous industries, to serve as Director of Alfalah Insurance
Company Limited, Pakistan; Chairman of Liwa International Investment Tourism and
Royal Mirage Hotel & Resort Ltd, Morocco; and Chairman of Ghantout International
and Bank Alfalah, as well as Director of Royal Mirage Masdar, Abu Dhabi.
Mr. Al Otaiba holds a BA in international economics from Suffolk University, Boston,
Massachusetts.
Abdulla Khalil Al Mutawa
General Manager, The Private Office
of H. E. Sheikh Suroor Bin Moham-
med Al Nahyan
Khalid Mana Saeed Al
Otaiba
Office Manager for His Excellency
Dr. Mana Saeed Al Otaiba
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Our Team
Ramsay Zaki
Founder, Wafra Export
Mr. Ramsay Zaki is a Non-Executive, Independent Member of EFG Hermes
Holding’s Board of Directors. In 2014, Mr. Zaki founded Wafra Export, a fruit
export company that owns a state-of-the-art packing house and grows its
produce on a 360-acre plot. Mr. Zaki was part of the EFG Hermes Holding
team for 18 years, starting as Head of Operations Brokerage in 1995 and end-
ing his tenure as Chief Operating Officer (COO).
As COO, Mr. Zaki was responsible for managing operational matters, including
compliance-related functions. Mr. Zaki’s contribution to EFG Hermes Hold-
ing includes rapidly growing the Firm’s backbone in all countries and lines
of business, while maintaining the highest degree of corporate governance
and ethics, as well as weathering major economic and political events in the
region. He was also member of the Firm’s Board of Directors until 2013.
Prior to joining EFG Hermes Holding, Mr. Zaki worked for five years at Com-
mercial International Bank (CIB), where he headed the team responsible for
extending credit to the Egyptian pharmaceutical industry. During his time at
CIB, Mr. Zaki successfully more than doubled loans to the sector and cap-
tured a 70% market share of all private sector pharmaceutical companies
operating in Egypt. Mr. Zaki was also heavily involved in the merger negotia-
tions between the two biggest private sector pharmaceutical companies in
the country.
Mr. Zaki holds a BCom from Cairo University.
Timothy Collins
CEO and Senior MD of Ripplewood
Advisors LLC
Mr. Timothy Collins is a Non-Executive Member of EFG Hermes Holding’s Board of
Directors. Mr. Collins is the CEO and Senior Managing Director of Ripplewood Advi-
sors, the successor to Ripplewood Holdings, which he founded in 1995. Ripplewood
has successfully invested in and built companies globally, including in Asia, Europe,
and the Middle East. It has consistently delivered superior returns from investments,
totaling more than USD 40 billion in enterprise value.
Ripplewood has played an instrumental role in transforming and strengthening
prominent financial institutions, including AS Citadele Banka of Latvia, Commercial
International Bank of Egypt, and Shinsei Bank of Japan, and it has invested in a broad
range of industries, including automotive, chemicals, consumer electronics, food,
real estate, and telecommunications. Ripplewood’s investment in Internet provider
Gogo began the revolution in in-flight connectivity that is now becoming pervasive.
Many Ripplewood investments remain public companies. Before founding Ripple-
wood, Mr. Collins worked for Onex, Lazard Frères, Booz Allen Hamilton, and Cum-
mins. He formerly served on several public-company boards, including Advance
Auto Parts, Asbury Automotive, Citigroup (after it accepted public funds), Commer-
cial International Bank, Gogo, Rental Services Corporation, and Shinsei Bank. He also
served as an independent Director at Weather Holdings, a large private emerging-
markets telecom operator that was sold to VimpelCom.
Mr. Collins is the Chairman of AS Citadele banka. He is involved in several not-for-profit
and public sector activities, including the Trilateral Commission and the Council on
Foreign Relations, NEOM, McKinsey, and Yale Divinity School Advisory Boards. He
was formerly the Chairman of the Advisory Board for the Yale School of Manage-
ment, and he is currently the Co-Chair of the Advisory Council of the NYU Global
Institute for Advanced Study and a member of the Investment Advisory Committee
to the New York State Common Retirement Fund.
Mr. Collins has a BA in philosophy from DePauw University and an MBA in public
and private management from Yale University’s School of Management. Mr. Collins
received an honorary Doctorate of Humane Letters from DePauw University in 2004,
and he has been an Adjunct Professor and Visiting Fellow at New York University. He
served as a Visiting Lecturer at the Yale Law School and is Senior Fellow and Director
of the Henry P. Becton Fellowship Program at the Yale School of Management.
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Our Team
Ms. Elizabeth Critchley is a Non-Executive Member of EFG Hermes Holding’s
Board of Directors. Ms. Critchley is the Managing Partner of Ripplewood Advi-
sors I LLP, the investment advisor to Ripplewood. Ms. Critchley has been lead-
ing Ripplewood’s investment efforts, including, most recently, into Eastern
Europe and the Middle East.
Ms. Critchley represents Ripplewood and/or its affiliates on the boards of
Citadele, Latvia, and EFG Hermes Holding.
Elizabeth Critchley
Partner, Ripplewood Advisors
Limited
Before joining Ripplewood, Ms. Critchley was a Founding Partner of Resolu-
tion Operations, which raised GBP 660 million via a listed vehicle at the end
of 2008, and went on to make three acquisitions in financial services (Friends
Provident plc for USD 2.7 billion, most of Axa’s UK life businesses for USD 4
billion, and Bupa for USD 0.3 billion).
Until forming Resolution Operations, Ms. Critchley was a Managing Di-
rector at Goldman Sachs International, where she ran the European FIG
Financing business.
Ms. Critchley has structured, advised, or invested in transactions with more
than 50 global financials and corporates.
Ms. Critchley has a First-Class Honors Degree in Mathematics from University
College London.
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EFG Hermes Holding continues to make strategic
and responsible investments across key sectors
that create massive impact across the board.
CORPORATE SOCIAL RESPONSIBILITY Corporate Social Responsibility
CORPORATE SOCIAL
RESPONSIBILITY
EFG Hermes Holding has made significant strides toward
embedding sustainability across its operations, with a strong focus
on responsible investing, climate action, and social impact.
As a universal bank with a strong presence in FEM, EFG
Hermes Holding is committed to leveraging the power of
finance to create sustainable progress for present and
future generations. This commitment is reflected in our
efforts over the years to weave sustainability into the very
fabric of our operations. In 2014, we launched our Social
Purpose initiative to ensure that our products and servic-
es generate value for all stakeholders while addressing
global, social, economic, and environmental challenges,
and in 2015, we expanded our core principles to include
“Public Responsibility” in addition to our original “5Ps”,
People, Products, Positioning, Presence, and Profitability.
This was followed by the issuance of our ESG policy in
2017, which aims to align our operations with ethical and
sustainable business practices. The CSR department
spearheads these initiatives and also oversees the work
of the EFG Hermes Foundation for Social Development,
which collaborates with policymakers and partners on
projects that promote sustainable development and
economic growth, with a focus on supporting underprivi-
leged members of the community. Hence, we strive to
create positive change and meaningful impact on society
and the environment while delivering innovative financial
services to our clients.
Moreover, as signatories of the United Nations Principles
for Responsible Investment (UN PRI) since 2018, we remain
committed to responsible investment in FEM, with a par-
ticular emphasis on climate change and the recommenda-
tions of the Task Force on Climate-related Financial Disclo-
sures (TCFD). We also prioritize clean energy financing and
deployment, and our ground-breaking renewable energy
investment platform, Vortex Energy, has been instrumental
in financing the transition to clean energy. Beyond clean
energy, our investment portfolio is designed to address the
fulfillment of other SDGs, including investments in socially
critical sectors that include health, education, and phar-
maceuticals. To support and enrich these sectors, we are
continuously expanding our product and service offerings
across our foothold while also updating our reporting and
disclosure procedures and policy environment. This year,
we expanded our ESG policy to address our growing NBFI
platform, submitted our fourth transparency report as part
of our commitment to the UN PRI, and renewed our com-
mitment to the United Nations Global Compact (UNGC).
EFG Hermes Holding has made significant strides toward
embedding sustainability across its operations, with a
strong focus on responsible investing, climate action, and
social impact, and is well-positioned to support its clients in
building a solid financial foundation while addressing global
challenges, such as climate change and social inequality.
Going forward, the Group remains committed to sustain-
ability and will continue to innovate and invest in sustainable
solutions to support its clients and communities.
The Pillars Guiding Our Sustainability Strategy
Environmental
Social
Governance
Remaining mindful of our
carbon footprint, promoting sus-
tainable business operations,
and executing investments that
ensure the sustainability of the
environment at large.
Supporting our people and the
communities we serve through
key initiatives and leveraging the
power of technology to create
social impact.
Establishing strict internal
frameworks and reporting
mechanisms that promote
transparency and accountability
across all levels of the Group.
Recognized for Our Efforts in 2022
Awards received by EFG Hermes Holding
and its subsidiaries:
• EFG Hermes received the Euromoney Award for Excel-
lence and Market Leaders in the category of Best Bank
for Corporate Social Responsibility – Egypt
• EFG Hermes was recognized by Egypt’s FRA as “Sus-
tainability Champions”
• EFG Hermes Corp-Solutions was recognized by
Egypt’s FRA as “Sustainability Champions”
Awards received by executives at EFG Hermes:
• EFG Hermes Holding’s Non-Executive Chairperson,
Mona Zulficar, received a prestigious award from
H.E. Egyptian President AbdelFattah Elsisi during the
celebration of the Egyptian Women’s Day and Mother
of the Year 2022 ceremony.
• Hanaa Helmy, CEO of the EFG Hermes Foundation
and Head of CSR, was recognized among the Diligent
Modern Governance 100, a world-leading recognition
programme of top audit, governance, compliance,
ESG, and risk professionals.
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Corporate Social Responsibility
RESPONSIBLE
INVESTING
At EFG Hermes Holding, we recognize the importance of not only identifying profitable business
opportunities but also investing in impactful ventures that are paving the way for a more sustain-
able future.
Vortex Energy
Vortex Energy is a renewable investment platform and a core
pillar within the Private Equity division of EFG Hermes, and it
has been significantly contributing to the goal of sustainable
development through its investments in clean energy op-
portunities. Since its establishment in 2015, Vortex Energy has
been committed to sustainable and responsible investing,
and its business practices are formulated, evaluated, and
executed in accordance with a robust sustainability and ESG
strategy that supports the UNGC and upholds the UN PRI.
Vortex Energy has been focused on deploying capital
across its four fund vehicles to maximize its social and
environmental impact. Over the years, Vortex I, II, and III
acquired operational renewable energy plants across
Spain, Portugal, Belgium, France, and the United King-
dom, generating 822MW of net capacity from individual
assets. These assets were optimized for maximum clean
energy production and operated in line with the latest
industry standards, resulting in the delivery of 4.6 ter-
awatt hours (TWh) of clean energy and the avoidance of
approximately 4.5 million metric tons of carbon dioxide
equivalent (MTCO2e). These assets are still operational
and will continue to save 1.5 million MTCO2e annually
over the coming years.
Vortex I, II, and III continue to support the transition to clean energy and a net-zero future
822
Megawatts generated
4.6
Terawatt hours of reliable and
low-cost renewable electricity
generated
4.5 MN
MTCO2e averted and displaced
from bulk electric grids
Vortex Energy’s latest development was the launch of its
fourth investment vehicle and flagship fund, “Vortex IV”, in July
2021 to further its efforts at delivering on its strategy to support
and play a role in the ongoing global transition to cleaner and
more sustainable sources of energy. Shortly after, Vortex IV
successfully completed its first investment in October 2021
with Spain-based Ignis Energy Holdings (Ignis), which will see
Vortex IV inject over EUR 475 million to fund Ignis' ambitious
plans to build a >20 GW platform and transform it into a fully-
fledged IPP across Spain and other regions.
Egypt Education Platform (EEP)
The EEP was established in 2019 by regional and global
institutional investors, including EFG Hermes' Private
Equity and the Sovereign Fund of Egypt (TSFE), and
it has allowed us to play a role in growing and enhanc-
ing Egypt’s educational space. The platform currently
operates 19 assets in Cairo, Alexandria, and the Red
Sea, including 11 schools and eight pre-school branches
with a combined capacity of approximately 20,000 and
1,000 students, respectively. Moreover, the EEP operates
under five different brand names and verticals, includ-
ing GEMS International Schools, Hayah Schools, Prime
International Language Schools, and Trillium Preschools.
The platform also boasts a portfolio of investments in
complementary services, such as education content
development through EEP’s majority-owned Selah El
Telmeez, and provides premier transportation services
to students through Option Travel.
Parallel to this, the EEP is committed to providing high-
quality education and has maintained accreditation by
leading global and regional bodies. The platform also
supports student athletes by being affiliated with orga-
nizations that help them achieve their educational and
sporting goals and awards scholarships to students who
excel academically. Additionally, the EEP is a member
of the Global Schools Program, an initiative of the UN
Sustainable Development Solutions Network (SDSN),
promoting Education for Sustainable Development (ESD)
within schools and classrooms.
Financial Inclusion
Tanmeyah
Established in 2009 and acquired by EFG Hermes Holding
in 2016, Tanmeyah is Egypt’s leading microfinance service
provider. It has played a key role in supporting the drive for
financial inclusion in Egypt by providing innovative financial
solutions to lower-income business owners who have little
to no access to credit facilities from traditional banking
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Corporate Social Responsibility
19
Assets
8
Pre-school branches
11
Schools
+21K
Combined schools and pre-schools
student capacity
systems. Through its 300+ branch footprint across 25 gov-
ernorates, Tanmenyah is able to provide the necessary
financial support to small-scale business owners across
the nation, ultimately supporting them in growing their busi-
nesses and enhancing their overall quality of life.
valU
valU, the MENA’s leading fintech, lifestyle-enabling platform
was established in 2017 as a constituent element of EFG
Hermes Holding’s wider strategy to promote nationwide
financial inclusion and bolster the regional fintech ecosys-
tem through its innovative digital financing solutions. valU
aims to alleviate financial burdens and empower the lives
of Egyptians by offering convenient and inclusive financing
plans with 6-to-60 month tenors and granting customers
access to its expansive network of merchants across the
retail, service, and e-commerce sectors.
PayTabs Egypt
Established as a joint venture between PayTabs and EFG
Hermes, PayTabs Egypt is a leading digital payment solu-
tions provider that offers innovative fintech solutions that
cater to various consumer segments in Egypt. Through
the company’s innovative offering, PayTabs Egypt is able
to extend a range of online payment processing solutions
to merchants across the nation through its state-of-the-
art hybrid digital payment platform, ultimately supporting
Egypt’s overarching digital transformation and its drive
toward strengthening financial inclusion and contributing
to the move toward a cashless society.
EFG Hermes Corp-Solutions
A flagship subsidiary of EFG Hermes Holding’s NBFI
platform, EFG Hermes Corp-Solutions’ primary offering
focuses on providing businesses with leasing and factor-
ing services. EFG Hermes Corp-Solutions aims to provide
businesses — especially those with clearly outlined social
impact mandates — across various sectors that play a key
role in supporting long-term economic stability, including
healthcare and education, with tailored financing solutions
that best address their needs and support their continued
growth and development.
aiBANK
aiBANK was acquired by EFG Hermes Holding and TSFE
in 2021, and it has successfully positioned the Group as a
universal bank operating in FEM. aiBANK provides financing
solutions to a variety of customer segments and has a clear
focus on providing credit facilities to support SMEs in Egypt.
In 2022, aiBANK launched a campaign titled “Financing That
Moves You 100 Strides Forward”, which aims to deliver on its
financial inclusion strategy by providing SMEs with financing
facilities of up to EGP 10 million with the aim of supporting job
creation and driving economic growth.
ENCOURAGING
RESPONSIBLE INVESTING
One of the key components of our sustainable investment strategy is promoting responsible
investment practices by providing a platform where ESG-conscious individuals can invest in
companies that prioritize sustainable and responsible business operations.
EFG Hermes One is a state-of-the-art trading platform
that was rolled out by the Group in 2021 in two of our key
markets, Egypt and Kenya. It provides users with seamless
access to multiple MENA markets and global exchanges,
allowing users to trade multiple asset classes across some
of the world’s most compelling markets. The app also fea-
tures real-time market intelligence insights offered by EFG
Hermes Research and incorporates a full suite of research
products that leverage the global-award-winning insights
of an international team. As part of EFG Hermes Holding’s
commitment to sustainability, EFG Hermes One promotes
several exchange-traded funds (ETFs) with themes that
support impact investment. This allows socially mindful
investors to be certain that their money is invested in com-
panies that are committed to tackling key ESG issues.
EFG Hermes One Offers Four ESG-Themed ETFs
Women in Leadership
The Women in Leadership ETF is comprised of companies from North America, Europe, and Asia
Pacific (developed markets) with a market cap larger than USD 5 billion. The companies present in the
ETF all have a larger percentage of women in executive leadership positions relative to other compa-
nies within their respective regions.
General ESG
The General ESG ETF is comprised of 20 companies with market caps larger than USD 10 billion and
have low ESG risk ratings.
Renewable Energy
Companies included in the Renewable Energy ETF are those that generate the majority of their rev-
enues from operations revolving around the production of renewable energy sources, including solar
power, wind, hydropower, biomass, and geothermal energy.
Green Transformation
Companies included in the Green Transformation ETF are those that operate in green industries, such
as electric vehicles and EV charging, carbon-neutral packaging, recycling, sustainable farming, green
food, and carbon capture technologies.
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Corporate Social Responsibility
DRIVING POSITIVE
SOCIAL IMPACT
We are firm believers that investing in our people and society is key to ensuring the sustainable
development of our economy and the environment. Not only do we support the growth of our
employees, but we also develop impactful projects that make a tangible difference for the people
across the communities where we live and work.
Investing in Our People
Our employees have the ability to shape and contribute
to our purpose, strategy, and performance and form the
bedrock of EFG Hermes Holding’s success. As part of
our ongoing efforts to promote the health and profes-
sional development of our people, our HR department is
constantly developing initiatives and programs aimed at
supporting the growth and development of our people.
Development Needs Assessment (DNA)
We are fully committed to the development of our people
and ensure that they have clearly outlined paths for
growth. Since 2019, our DNA Open House has encour-
aged employees to take an active role in mapping out
their development path and provided managers with a
platform to support their people in exploring new oppor-
tunities within their respective departments and across
the entirety of the Group.
Recruitment, Advancement, and Succession
Planning
EFG Hermes Holding has a history of promoting from
within, and we are firm believers that everyone across
our organization has significant potential for growth
and to pursue managerial and executive positions in the
Group. On this front, we introduced a new and improved
succession planning strategy, which allows us to better
identify and prepare internal candidates for senior level
positions across the Group.
comprehensive healthcare insurance plans but also pro-
vide a discretionary healthcare fund that can be accessed
by our employees who require critical medical services that
are not covered.
Financial Literacy
We designed a program to provide EFG Hermes Holding’s
non-officer employees with the knowledge that will empower
and better position them to manage their personal finances in
a manner that allows them to save and avoid incurring debt.
Although EFG Hermes Holding employs a loan policy for the
people that need it most across the Group, we believe that this
program provides a more long-term and sustainable solution
with regards to personal finance management.
The EFG Hermes Foundation for Social
Development
The EFG Hermes Foundation for Social Development was
founded in 2006 and has partnered with various organiza-
tions across the private and public sectors to uplift the
livelihoods of the people across our communities. Our goal
is to bring partners together and leverage an integrated
development approach to bring projects to life that benefit
society at large, including climate change, environment,
gender equality, children’s rights, disease prevention, and
economic empowerment.
Employee Wellbeing
We believe that everyone deserves the right to access qual-
ity healthcare services to ensure their physical and mental
wellbeing. At EFG Hermes Holding, we not only provide
To date, the Foundation has implemented three ground-
breaking integrated development projects in deprived
rural areas in Upper Egypt, successfully reaching over
500,000 beneficiaries. The Foundation’s most recent
project was the EGP 70 million Naga’ El Fawal and El
128 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 129
Corporate Social Responsibility
Deir Village Integrated Development Project, which was
launched in 2017 and aims to build a developed base in
order to revitalize the local economy and serve the vil-
lage’s 75,000 residents.
Over the years, the project has had a number of achieve-
ments in the development of Naga’ El Fawal, including
the renovation of a health unit in the village, the estab-
lishment of a water treatment plant, and the rebuilding
of 94 houses with the long-term aim of eliminating rural
co-living. Additionally, the project has also seen the de-
velopment of a fully equipped community center, includ-
ing a Montessori preschool, a center catering to children
with disabilities, and a training facility, all of which are
powered by solar energy.
Developments in 2022
Naga’ El Fawal and El Deir Village Integrated
Development Project
The Clean Energy for Schools Project – The EFG Hermes
Foundation for Social Development signed a partnership
agreement with the Ministry of Education and Technical
Education, represented by the General Authority for Educa-
tional Buildings, to transition over 100 schools in Luxor and
Aswan to clean solar energy.
Hayah Karima (Egypt’s “Decent Life” Initiative) – The
Foundation signed an MoU with the Ministry of Social Soli-
darity to participate in the Hayah Karima initiative and build
on the extensive progress made by the Naga’ El Fawal and
El Deir Village Integrated Development Project. The MoU
will see the Foundation rehabilitate 120 housing units in El
Deir village and build a sewer line connecting housing units
to the pumping station and wastewater treatment plants
previously developed by the Foundation and is anticipated
to benefit over 15,000 residents in the area.
Education and Training – In 2022, the Young Scholars
Academy saw 14 children graduate, including two gradu-
ates with special needs. Additionally, Montessori train-
ing, as well as training for special needs, was provided to
26 women from Luxor with the aim of growing their skill
sets and empowering them to pursue better employ-
ment prospects.
Saving Hearts with the Magdi Yacoub
Foundation
In line with our commitment to funding vital healthcare
initiatives in Egypt, the EFG Hermes Foundation for So-
cial Development partnered with aiBANK and the Magdi
Yacoub Foundation to sponsor heart surgeries at the
Aswan Heart Centre.
GOVERNANCE
EFG Hermes Holding’s robust governance framework plays an essential role in managing key risks
and ensures that we remain aligned with our commitment to sustainable business operations.
Effective governance is a critical component of building
sustainable business practices that deliver on our ESG
agendas, and EFG Hermes Holding is committed to fos-
tering the integration of ESG policies across the Group
to ensure the long-term sustainability of its operations.
In this endeavor, and as a member of the UNGC and
signatory of the UN PRI, EFG Hermes Holding prioritized
developing the frameworks that allow us to best manage
our risks and deliver on our ambitious growth strategies
while maintaining our commitment to the sustainability
of the environments we operate in and ensuring that our
business practices are guided by the ESG principles.
At EFG Hermes Holding, our Compliance, Risk, and HR
departments consistently monitor our operations to en-
sure our compliance with all regulatory requirements, in-
cluding those relating to ESG. On this front, EFG Hermes
Holding is compliant with the regulations outlined by
Egypt’s FRA, as well as the FRA’s regulations regarding
ESG disclosures, which requires responding to 51 indica-
tors and questions across two types of disclosures; ESG
indicators, and the recommendations of the TCFD.
For a more comprehensive review of the Group’s corporate
governance frameworks and compliance with ESG-related
requirements, please refer to the “Corporate Governance”
section outlined in this annual report.
130 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 131
FINANCIAL STATEMENTS Financial Statements
AUDITOR'S REPORT
To the shareholders of EFG Hermes Holding Company
EFG
EV FINTECH
We have audited the accompanying consolidated financial statements of EFG Hermes Holding Company which comprise
the consolidated statement of financial position as at 31 December 2022, and the consolidated statements of income,
comprehensive income, changes in equity and cash flows for the financial year then ended, and a summary of significant
accounting policies and other explanatory notes.
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presenta-
tion of the financial statements.
Management’s Responsibility for the Financial Statements
These consolidated financial statements are the responsibility of Company’s management. Management is responsible
for the preparation and fair presentation of these consolidated financial statements in accordance with the Egyptian
Accounting Standards and in the light of the prevailing Egyptian laws, management responsibility includes, designing,
implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that
are free from material misstatement, whether due to fraud or error; management responsibility also includes selecting and
applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted
our audit in accordance with the Egyptian Standards on Auditing and in the light of the prevailing Egyptian laws. Those
standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assur-
ance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial state-
ments. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
on the financial statements.
Opinion
In our opinion, the consolidated financial statements referred to in the first paragraph above present fairly, in all material
respects, the consolidated financial position of the company as of December31 , 2022 and its consolidated results of its
operations and its consolidated cash flows for the year then ended in accordance with Egyptian Accounting Standards
and comply with applicable Egyptian laws and regulations relating to the preparation of these financial statements.
KPMG Hazem Hassan
Cairo, March 22, 2023
134 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 135
EFG
EV FINTECH
Consolidated statement of financial position
Consolidated income statement
(in EGP)
Assets
Cash and cash equivalents
Loans and faciltites to customer
Accounts receivables
Investments at fair value through profit and loss
Investments at fair value through OCI
Investments at amortized cost
Assets held for sale
Equity accounted investees
Investment property
Property, plant and equipment
Goodwill and other intangible assets
Deferred tax assets
Other assets
Total assets
Liabilities
Due to banks and financial institutions
Customer Deposits
Loans and borrowings
Creditors and other credit balances
Accounts payable - customers credit balance at fair value through
profit and loss
Accounts payable - customers credit balance
Issued bonds
Provisions
Current tax liability
Deferred tax liabilities
Total liabilities
Equity
Share capital
Legal reserve
Share premium
Other reserves
Retained earnings
Note no.
31/12/2022
*(Restated)
31/12/2021
(6)
(9)
(8)
(7)
(10)
(12)
(5)
(11)
(13)
(14)
(15)
(22)
(16)
(17)
(18)
(24)
(21)
(19)
(20)
(23)
(22)
(25)
26,214,250,479
30,876,257,819
33,222,142,228
19,999,896,526
5,569,133,136
5,611,375,904
6,772,893,362
8,002,539,778
14,080,120,999
16,820,480,365
11,518,692,377
10,050,278,918
349,701,081
606,432,818
118,984,442
1,636,042,509
1,954,749,801
64,486,447
3,401,909,847
310,745,145
461,315,552
125,529,472
1,522,312,110
993,839,079
47,607,209
2,564,263,111
105,509,539,526
97,386,440,988
12,371,835,820
17,736,580,111
48,130,171,764
38,564,737,371
5,408,502,064
5,963,333,876
4,570,191,615
3,069,703,383
379,039,443
3,890,060,348
9,595,446,350
8,537,833,096
500,000,000
550,000,000
903,715,808
473,873,472
800,661,223
690,001,941
363,572,503
416,130,589
83,133,437,559
79,781,953,218
5,838,424,030
4,865,353,355
867,454,520
1,668,623,811
3,125,555,888
7,460,139,693
840,272,556
1,668,623,811
783,420,592
6,486,918,967
Equity attributable to owners of the Company
18,960,197,942
14,644,589,281
Non - controlling interests
Total equity
Total equity and liabilities
* See note (35)
(26)
3,415,904,025
2,959,898,489
22,376,101,967
17,604,487,770
105,509,539,526
97,386,440,988
The accompanying notes and accounting policies from page (141) to page (184) are an integral part of these financial state-
ments and are to be read therewith.
Mona Zulficar
Chairperson
Karim Awad
Group Chief Executive Officer
(in EGP)
Interest income
Interest Expense
Net Interest Income
Fee and commission income
Fee and commission expense
Net Fees and commission Income
Securities Loss
Changes in Investments at Fair Value through Profit & Loss
Dividend Income
Other Revenues
Foreign Currencies Exchnage Differences
Gains on selling Assets held for sale
Share of profit (Loss) from equity accounted investees
Gain on acquisition
Revenue
General administrative expenses
Financial Guarantee Provision
Impairment loss on assets
Provisions
Depreciation and amortization
Profit before tax
Income tax expense
Profit for the year
Profit attributable to:
Owners of the Company
Non - controlling interests
* See note (35)
Note no.
(33)
*(Restated)
For the year ended
31/12/2022
31/12/2021
9,295,888,885
4,416,355,205
(5,698,004,648)
(1,831,314,272)
3,597,884,237
2,585,040,933
(33)
4,804,815,709
3,395,050,747
(508,239,556)
(344,114,579)
4,296,576,153
3,050,936,168
(847,026,822)
923,031,019
5,660,968
381,500,523
2,495,674,927
5,486,779
76,562,049
-
(7,302,092)
(76,153,571)
31,853,072
235,215,170
234,140,414
3,864,407
( 14 173 369)
97 562 892
10,935,349,833
6,140,984,024
(6,426,256,897)
(3,667,378,008)
(21,174,483)
(736,750,108)
(156,889,674)
(5,673,313)
(154,029,798)
(96,968,478)
(33)
(28)
(33)
(32)
(23)
(29)
(23)
(13,14,15)
(296,470,780)
(196,292,200)
3,297,807,891
2,020,642,227
(30)
(1,103,724,498)
(350,195,700)
2,194,083,393
1,670,446,527
1,839,715,656
1,553,001,713
(26)
354,367,737
117,444,814
2,194,083,393
1,670,446,527
The accompanying notes and accounting policies from page (141) to page (184) are an integral part of these financial state-
ments and are to be read therewith.
136 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 137
Financial Statements
EFG
EV FINTECH
Consolidated statement of
comprehensive income
(in EGP)
Profit for the year
Other comprehensive income:
Items that are or may be reclassified to profit or loss
*(Restated)
For the year ended
31/12/2022
31/12/2021
2,194,083,393
1,670,446,527
Foreign operations - foreign currency translation differences
3,210,783,015
(15,450,147)
Foreign currency translation differences - reclassified to profit or loss
Investments at fair value through OCI - net change in fair value
(852,751,863)
(108,438,531)
Investments at fair value through OCI - net change in fair value - reclassified to profit or loss
(3,015,600)
Investment at Fair Value through OCI - reclassified to Retained Earnings
Share of OCI of Equity accounted investees
Actuarial (loss) gain re-measurement of employees’ benefits obligations
Related tax
Other comprehensive income, net of tax
Total comprehensive income
Total comprehensive income attributable to:
Owners of the Company
Non - controlling interests
* See note (35)
(167,306,760)
163,022
34,043,158
( 15 659)
-
971,076
(930,181)
(547,139)
206,188
(4,505,067)
25,089,047
2,266,820,050
(148,525,491)
4,460,903,443
1,521,921,036
3,957,615,925
1,395,922,567
503,287,518
125,998,469
4,460,903,443
1,521,921,036
The accompanying notes and accounting policies from page (141) to page (184) are an integral part of these financial state-
ments and are to be read therewith.
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138 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 139
Financial Statements
EFG
EV FINTECH
Consolidated statement of cash flow
(in EGP)
Cash flows from operating activities
Profit before income tax
Adjustments for:
Depreciation and amortization
Provisions formed
Provisions used
Provisions reversed
Gains on sale of Property, plant and equipment
Gain from securitization
Loss on sale of investment at FVTOCI
Gains on sale of Assets held for sale
Amortization of premium / issue discount
Changes in the fair value of investments at fair value through profit and loss
Share of profit (Loss) of equity-accounted investees
Gain on acquisition
Impairment loss on assets
Share-based payment
Foreign currency translation differences
Foreign currencies exchange differences
Operating profit before changes in current assets and liabilities
Changes in:
Other assets
Creditors and other credit balances
Securitization surplus
Accounts receivables
Accounts payable
Accounts payable - customers credit balance at fair value through profit and loss
Loans and facilities to customers
Due from banks
Due to banks
Customers deposits
Investments at fair value through profit and loss
Income tax paid
Net cash provided from operating activities
Cash flows from investing activities
Payments to purchase Property, plant and equipment and other intangible assets
Proceeds from sale of Property, plant and equipment
Proceeds from sale of assets held for sale
Proceeds from sale of investment FVTOCI
Payments to purchase investment FVTOCI
Payments to purchase investment in subsidiaries
Proceeds from sale investment in subsidiaries
Payments to purchase equity accounted investees
Proceeds from sale equity accounted investees
Dividends collected
Net cash provided from provided from investing activities
Cash flows from financing activities
Dividends paid
Proceeds from securitization
Proceeds from issued bonds
Payment for issued bonds
Payment for / proceeds from financial institutions
Proceeds from loans and borrowings
Payment for loans and borrowings
Net cash (used in) provided from financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash from acquisition from subsaidiaries
Cash and cash equivalents at 31 December
* See note (35)
*(Restated)
For the year ended
Note no.
31/12/2022
31/12/2021
3,297,807,891
2,020,642,227
(13,14,15)
(23)
(23)
(23)
(29)
(32,40-20)
(31)
(31)
296,470,780
178,064,157
(64,685,603)
(53,029,978)
(4,200,177)
(242,336,282)
682,066,606
(5,486,779)
(216,239,805)
(923,031,019)
(76,562,049)
-
736,750,108
139,361,770
3,756,860,513
(2,495,674,927)
5,006,135,206
(566,071,027)
1,841,524,257
(147,522,091)
7,187,677,684
(12,374,159,270)
(3,089,257,615)
(17,537,398,727)
17,615,468,007
(270,335,381)
9,565,434,394
5,095,984,810
(586,294,906)
11,741,185,341
(364,198,383)
7,377,621
-
17,958,372,803
(16,578,048,550)
(844,421,791)
383,228,911
(88,618,564)
8,127,400
26,087,565
507,907,012
(378,139,685)
3,521,589,471
500,000,000
(550,000,000)
(8,707,207,824)
2,186,366,631
(3,247,267,176)
(6,674,658,583)
5,574,433,770
7,499,886,385
5,263,671
13,079,583,826
196,292,200
102,641,791
(123,453,932)
(54,802,383)
(14,668,983)
(66,016,939)
34,043,538
(3,864,407)
(30,974,345)
76,153,571
14,173,369
(97,562,892)
154,029,798
149,646,948
(17,442,999)
(234,140,414)
2,104,696,148
(504,813,017)
(32,620,974)
-
(916,774,492)
3,047,194,580
1,867,078,573
(2,935,999,896)
(5,583,297,532)
(304,852,380)
(1,242,670,248)
(2,302,120,418)
(233,489,679)
(7,037,669,335)
(97,448,606)
19,391,892
120,045,492
24,130,051,252
(20,306,019,053)
(2,965,924,996)
-
(17,982,500)
-
8,583,669
890,697,150
(43,164,735)
1,112,500,000
550,000,000
(500,000,000)
3,619,102,552
2,178,924,870
(904,202,493)
6,013,160,194
(133,811,991)
2,465,698,500
2,382,473,653
4,714,360,162
The accompanying notes and accounting policies from page (141) to page (184) are an integral part of these financial state-
ments and are to be read therewith.
Notes to the consolidated financial statements
for the year ended 31 December 2022
(In the notes all amounts are shown in EGP unless otherwise stated)
Background
Incorporation
1.
1.1.
EFG-Hermes Holding S.A.E “the company” is an Egyptian Joint Stock Company subject to the provisions of the Capital
Market Law No.95 of 1992 and its executive regulations. The company’s registered office is located in Smart Village build-
ing No. B129, phase 3, KM 28 Cairo / Alexandria Desert Road, 6 October 12577 Egypt.
Purpose of the company
1.2.
EFG Hermes is a premiere financial services corporation that offers diverse investment banking services including securi-
ties brokerage, investment banking, Asset management and private equity. In addition to its non-bank finance products,
which include leasing and micro-finance, installment services, factoring, securitization, collection and Sukuk Issuance.
The purpose of the company also includes participation in the establishment of companies which issue securities or in
increasing their share capital, custody activities, margin trading and commercial bank activities.
Basis of preparation
Statement of compliance
2.
2.1.
These consolidated financial statements have been prepared in accordance with Egyptian Accounting Standards and
relevant Egyptian laws and regulations.
Authorization of the financial statements
2.2.
The financial statements were authorized for issue in accordance with a resolution of the board of directors on March 21, 2023.
Functional and presentation currency
3.
These consolidated financial statements are presented in Egyptian pounds (EGP) which is the Company’s functional currency.
Use of estimates and judgments
4.
In preparing these consolidated financial statements, management has made judgements, estimates and assumptions
that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongo-
ing basis. Revisions to estimates are recognized prospectively.
• Estimates and assumptions about them are re-viewed on regular basis.
• The change in accounting estimates is recognized in the period where the estimate is changed whether the change
affects only that period, or in the period of change and the future periods if the change affects them both.
5.
Assets held for sale
• Assets held for sale represented in the assets that has been acquired by EFG Hermes Corp-Solutions and Arab Invest-
ment Bank (aiBank) amounted to EGP 349,701,081 in exchange of debt account receivables.
140 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 141
Financial Statements Assets held for sale is relating to the acquisition of the following assets:
9.
Loans and facilities to customers
EFG
EV FINTECH
• Land and buildings.
• -Machines and equipment.
6.
Cash and cash equivalents
Cash on hand
Cheques under collection
Banks - current accounts
Obligatory reserve balance with CBE
Banks - time deposits
Balance
Impairment loss
Balance
31/12/2022
209,094,960
140,002
31/12/2021
173,138,322
140,001
10,943,423,711
10,740,937,558
1,906,215,015
897,426,113
13,158,395,985
19,066,529,533
26,217,269,673
30,878,171,527
(3,019,194)
(1,913,708)
26,214,250,479
30,876,257,819
Micro finance
Finance lease
Consumer finance
Factoring
Commercial bank (Arab Investment Bank)
Other loans
Unearned interest
Balance
Impairment loss
Balance
Current
Non-current
Balance
7.
Investments at fair value through profit and loss
10.
Investments at fair value through OCI
Mutual fund certificates
Equity securities
Debt instruments
Treasury bills
Structured notes
Balance
8.
Accounts receivables
Accounts receivables
Other brokerage companies
Balance
Impairment loss
Balance
Non-current investments
Equity securities
Mutual fund certificates
Debt instruments
Current investments
Debt instruments
Balance
31/12/2022
5,231,021,232
165,787,522
660,606,610
336,438,555
31/12/2021
3,094,960,043
144,330,891
670,915,045
202,273,451
379,039,443
3,890,060,348
6,772,893,362
8,002,539,778
31/12/2022
5,613,135,724
271,045,671
31/12/2021
5,684,065,407
39,939,670
5,884,181,395
5,724,005,077
(315,048,259)
(112,629,173)
5,569,133,136
5,611,375,904
31/12/2022
3,081,637,527
31/12/2021
2,355,231,395
6,842,561,620
5,953,754,061
3,900,887,909
1,811,103,100
2,553,049,168
1,884,359,760
20,841,231,035
11,282,203,297
1,441,312,409
572,771,302
(3,678,020,032)
(1,889,446,847)
34,982,659,636
21,969,976,068
(1,760,517,408)
(1,970,079,542)
33,222,142,228
19,999,896,526
12,894,738,256
10,097,085,874
20,327,403,972
9,902,810,652
33,222,142,228
19,999,896,526
31/12/2022
31/12/2021
159,532,028
116,119,175
105,064,479
98,972,870
5,117,913,917
1,820,633,725
5,393,565,120
2,04,671,074
8,686,555,879
14,795,809,291
14,080,120,999
16,820,480,365
142 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 143
Financial Statements 11.
Equity accounted investees
12.
Investment at amortised cost
EFG
EV FINTECH
Interest in joint venture
Bedaya Mortgage
Finance Co
EFG-EV Fintech
Paytabs
RX Capital limited
Interest in associate
Company’s
location
Company’s
asset
Company’s
liabilities
December 31, 2022
Company’s
net gain
(losses)
Company’s
gross profit
Shareholding
Percentage
%
Shareholding
value
Egypt
2,363,819,561
2,108,837,922
89,692,357
147,297,258
33.34
84,813,765
Egypt
Egypt
UAE
62,328,839
5,441,599
15,459,992
24,594,963
55,817,071
41,911,548
(10,859,294)
3,517,846
18,581,608
3,741,654
(2,180,462)
--
Kaf Life Insurance takaful
Egypt
340,318,277
196,554,842
(25,517,449)
12,520,574
50
51
50
37.5
20.3
24
20
18,448,912
41,929,326
10,247,598
62,029,972
311,285,169
--
510,555
Zahraa Elmaadi
Company*
Middle East Land
Reclamation Company *
Prime for investment
fund management *
Enmaa Financial Leasing
company *
Balance
Egypt
2,563,499,818
1,032,639,341
216,265,679
307,687,959
Egypt
Egypt
47,974,000
192,215,000
(24,763,000)
--
2,751,943
199,168
377,145
265,313
Egypt
1,982,674,093
1,737,141,061
22,113,268
52,041,419
31.4
77,167,521
606,432,818
Company’s
location
Company’s
asset
December 31, 2021
Company’s
net gain
(losses)
Company’s
liabilities
Company’s
gross profit
Shareholding
Percentage
%
Shareholding
value
Interest in joint venture
Bedaya Mortgage
Finance Co
EFG-EV Finech
Paytabs
RX Capital limited
Interest in associate
Egypt
Egypt
Egypt
UAE
1,099,525,625
910,182,306
19,212,115
45,217,153
33.34
61,253,690
42,810,436
648,333
(2,855,335)
297,245
7,987,835
24,875,887
(9,857,646)
2,270,958
16,512,209
2,811,550
(2,009,341)
--
50
51
50
21,081,052
1,459,594
6,850,329
Debt instruments-Listed
Debt instruments-Non Listed
Impairment loss
Balance
13.
Investment property
Particular
Cost
Balance as at 1/1/2021
Total cost as at 31/12/2021
Total cost as at 31/12/2022
Accumulated depreciation
Accumulated depreciation as at 1/1/2021
Depreciation for the year
Accumulated depreciation as at 31/12/2021
Accumulated depreciation as at 1/1/2022
Depreciation for the year
Accumulated depreciation as at 31/12/2022
Carrying amount
Net carrying amount as at 31/12/2021
Net carrying amount as at 31/12/2022
31/12/2022
31/12/2021
10,964,941,637
10,069,806,653
581,157,127
--
11,546,098,764
10,069,806,653
(27,406,387)
(19,527,735)
11,518,692,377
10,050,278,918
Buildings
169,539,818
169,539,818
169,539,818
37,465,316
6,545,030
44,010,346
44,010,346
6,545,030
50,555,376
125,529,472
118,984,442
Investment property net carrying amounted to EGP 118,984,440 as at 31 December 2022, represents the following:-
• EGP 113 500 669 the book value of the area owned by EFG – Hermes Holding Company in Nile City building, and with
a fair value of EGP 000 185 493.
Kaf Life Insurance takaful
Egypt
251,117,156
185,998,053
(36,676,288)
10,490,848
37.5
21,599,015
• EGP 2,952,398 the book value of the area owned by Hermes Securities Brokerage, one of the subsidiaries, in Elmanial
Egypt
2,309,385,000
938,992,000
47,974,000
192,215,000
--
--
--
--
2,546,000
176,000
106,550
269,000
20.3
278,655,628
24
20
--
474,060
branch and with a fair value of EGP 11,050,000.
• EGP 2,531,375 the book value of the area owned by Hermes Securities Brokerage, one of the subsidiaries, in Elharam
branch and with a fair value of EGP 19,978,950.
Zahraa Elmaadi
Company *
Middle East Land
Reclamation Company*
Prime for investment
fund management *
Enmaa Financial Leasing
company*
Balance
Egypt
Egypt
Egypt
1,379,917,000
1,157,373,000
1,953,331
17,121,000
31.4
69,942,184
461,315,552
* Equity accounted investees acquired through the acquisition of Arab Investment Bank (aiBank).
144 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 145
Financial Statements
EFG
EV FINTECH
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15.
Goodwill and other intangible assets
Particular
Cost
Goodwill
Customer
Relationships
Licenses
Software
Total
Balance as at 1 January 2021
896,012,911
70,807,500
10,550,653
62,461,548
1,039,832,612
Additions
Acquisition
Reclassification
Foreign Currency Translation
Differences
Total cost as at 31 December 2021
Balance as at 1 January 2022
Additions
Acquisition
Foreign currency translation differ-
ences
--
--
--
--
--
--
--
--
--
--
13,493,266
78,104,081
20,481,910
13,493,266
78,104,081
20,481,910
(117,380)
(182,446)
178,521
(121,305)
896,012,911
896,012,911
--
881,545,411
70,690,120
70,690,120
16,029,657
--
10,368,207
10,368,207
9,938,374
--
174,719,326
1,151,790,564
174,719,326
1,151,790,564
70,988,951
9,475,738
96,956,982
891,021,149
--
40,392,373
1,619,795
15,150,168
57,162,336
Total cost as at 31 December 2022
1,777,558,322
127,112,150
21,926,376
270,334,183
2,196,931,031
Accumulated amortisation and
impairment
Balance as at 1 January 2021
Amortisation
Impairment
Acquisition
Reclassification
Adjustments
Foreign currency translation differ-
ence
Total accumulated amortisation and
Impairment as at 31 December 2021
Balance as at 1 January 2022
Amortisation
Impairment
Acquisition
Foreign currency translation differ-
ence
Total accumulated amortisation and
Impairment as at 31 December 2022
Carrying amount as at 31 December
2021
Carrying amount as at 31 December
2022
5,921,803
--
9,503,738
--
--
--
--
24,782,612
7,064,658
--
--
--
--
--
--
6,530,960
--
--
--
24,774,283
15,347,811
--
47,605,627
18,155,301
(1,657,845)
55,478,698
22,412,469
16,034,698
47,605,627
18,155,301
(1,657,845)
(39,408)
(2,131)
(35,924)
(77,463)
15,425,541
31,807,862
6,528,829
104,189,253
157,951,485
15,425,541
--
10,239,220
--
--
31,807,862
10,132,985
6,528,829
853,559
--
--
--
--
104,189,253
26,859,118
--
2,024,189
157,951,485
37,845,662
10,239,220
2,024,189
20,623,932
140,278
13,356,463
34,120,673
25,664,761
62,564,779
7,522,666
146,429,024
242,181,230
880,587,370
38,882,258
3,839,378
70,530,073
993,839,079
1,751,893,561
64,547,371
14,403,710
123,905,159
1,954,749,801
146 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 147
Financial Statements
EFG
EV FINTECH
15.1. Goodwill is relating to the acquisition of the following subsidiaries:
16.
Other assets
EFG- Hermes IFA Financial Brokerage Company Kuwait – (KSC)
IDEAVELOPERS – Egypt
EFG- Hermes Jordan
Tanmeyah Micro Enterprise Services S.A.E
Frontier Investment Management Partners LTD
Fatura Netherlands B.V*
Noutah for electronic commerce**
Balance
31/12/2022
179,148,550
--
--
365,398,862
325,800,740
869,543,470
12,001,939
1,751,893,561
31/12/2021
179,148,550
1,600,000
8,639,218
365,398,862
325,800,740
--
--
880,587,370
Acquisition of Fatura Netherlands B.V
*
In June 2022 Tanmeyah Micro Enterprise Services S.A.E (one of subsidiaries) acquired 100% of Fatura Netherlands B.V
shares with an acquisition cost amounting to EGP 832,193,298.
The Company’s share in the acquired net assets and liabilities on the date of acquisition amounted to EGP (37,350,174).
Accordingly the goodwill will represents the difference which amounts to EGP 869,543,472.
Acquisition of Noutah for electronic commerce
**
In October 2022 Tanmeyah Micro Enterprise Services S.A.E (one of subsidiaries) acquired 100% of Noutah for electronic
commerce shares with an acquisition cost amounting to EGP 12,228,493.
The Company’s share in the acquired net assets and liabilities on the date of acquisition amounted to EGP 226,554. Ac-
cordingly the goodwill will represents the difference which amounts to EGP 12,001,939.
Deposits with others
Down payments to suppliers
Prepaid expenses
Employees’ advances
Accrued revenues
Taxes withheld by others
Payments for investments
Settlement Guarantee Fund
Due from Egypt Gulf Bank- Tanmeyah Clients
Receivables-sale of investments
Securitization surplus
Sundry debtors
Total
Deduct: Impairment loss
Balance
(16-1)
(16-2)
31/12/2022
47,487,740
31/12/2021
57,133,978
1,188,539,804
902,953,364
197,725,051
117,223,877
1,236,758,881
27,082,585
19,353,856
26,790,298
10,582,259
39,000,311
178,567,421
83,360,970
61,420,556
989,851,567
23,615,895
1,373,856
22,898,787
17,314,143
16,854,902
31,045,330
331,406,383
393,243,155
3,420,518,466
2,601,066,503
(18,608,619)
3,401,909,847
(36,803,392)
2,564,263,111
Deposits with others include an amount of EGP 16,919,378 in the name of the subsidiaries, EFG-Hermes Interna-
16.1.
tional Securities Brokerage -Financial Brokerage Group Company (Previously) and Hermes Securities Brokerage Company
which represents blocked deposits for same day trading operations settlement takes place in the Egyptian Stock Exchange.
Both companies are not entitled to use these amounts without prior approval from Misr Clearance Company.
The following represents the assets and liabilities on the acquisition date:
16.2.
Payments for investments are represented in the following:
Description
Cash and cash equivalents
Accounts receivable
Other assets
Fixed assets
Intangible assets
Creditors and other credit balances
Current tax liability
Deferred tax
Total
Paid in acquisition
Goodwill
Fatura
5,874,624
2,458,460
5,002,464
4,518,118
7,451,549
(57,400,317)
(5,154,704)
(100,366)
(37,350,172)
832,193,298
869,543,470
Noutah
127,533
--
18,781
80,240
--
--
--
--
226,554
12,228,493
12,001,939
* The acquiree’s financial statements have been consolidated based on the book value of the identifiable assets and liabilities, the company has a grace
period of 12 months ending May 2023 for preparing Purchase Price Allocation (PPA) study to determine the fair value of the identifiable asset and liabilities
according to the Egyptian Accounting Standards.
** The acquiree’s financial statements have been consolidated based on the book value of the identifiable assets and liabilities, the company has a grace
period of 12 months ending September 2023 for preparing Purchase Price Allocation (PPA) study to determine the fair value of the identifiable asset and
liabilities according to the Egyptian Accounting Standards.
AAW Company for Infrastructure
IDEAVELOPERS
Paynas for payment and digital solutions
Balance
31/12/2022
31/12/2021
1,348,856
5,000
18,000,000
19,353,856
1,348,856
25,000
--
1,373,856
148 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 149
Financial Statements 17.
Due to banks and financial institutions
21.
Creditors and other credit balances
Financial institutions
Bank overdraft *
Deposits**
Current account**
Balance
* Banks overdraft include the credit facilities granted from one of the banks which represents the following:
• A pledged governmental bond contract to secure a credit facility amounted to EGP 1,061,304,159.
• A pledged Treasury bills contract to secure a credit facility amounted to EGP 739,070,182.
** Relate to Arab Investment Bank (aiBank).
18.
Customer deposits
Call deposits
Term deposits
Saving and deposit certificates
Saving deposits
Other deposits
Balance
Corporate deposits
Individual deposits
Balance
Current
Non-current
Balance
31/12/2022
41,545,598
31/12/2021
7,861,707,906
11,544,331,480
8,818,578,082
515,899,890
270,058,852
1,008,686,945
47,607,178
12,371,835,820
17,736,580,111
31/12/2022
31/12/2021
15,239,775,939
13,590,506,782
22,111,560,197
14,545,755,376
8,651,603,248
7,881,255,045
1,140,598,796
986,633,584
1,316,791,217
1,230,428,951
48,130,171,764
38,564,737,371
35,927,784,539
14,820,936,371
12,202,387,225
23,743,801,000
48,130,171,764
38,564,737,371
23,310,069,539
19,160,002,371
24,820,102,225
19,404,735,000
48,130,171,764
38,564,737,371
Accounts payable - customers credit balance at fair value through profit and loss
19.
This amount represents payable to customers against the structured notes issued by one of group companies.
20.
Issued bonds
• During December 2021 Hermes Securities Brokerage (a subsidiary - 100%) issued short-term bonds with a value of
EGP 550 million (Third issuance) that are tradable and non-convertible to shares and it’s for the period of 12 months at
a par value of EGP 100 (one hundred Egyptian pounds only) for the bond to be paid at the end of the period with a fixed
rate of 11.15 % that will be paid at the end of the issuance period. And it’s non-expedited payment, the bonds proceeds
will be used to finance different company activities and pay it’s financial obligations, The full value of the bonds has
been paid during December 2022.
• During June 2022 EFG-Hermes Corp-Solutions (a subsidiary - 100%) issued the first issuance of unsecured long-term
bonds with a value of EGP 500 million for two years. The issuance is part of a three years issuance program with total
value of EGP 3 billion. The bonds are tradable and non-convertible to shares but it’s can be expedited to payment
starting from coupon number 5 (seventh month of the issuance). The bonds proceeds will be used to finance different t
Accrued expenses
Dividends payable (prior years)
Deferred revenues
Suppliers
Clients’ coupons - custody activity
Tax authority
Social Insurance Association
Payables- purchase of investments
Medical takaful insurance tax
Deposits due to others –finance lease contracts *
Pre collected Installments
Sundry creditors
Balance
31/12/2022
2,851,514,433
215,380,481
147,776,543
382,770,788
205,947,929
43,747,539
13,507,353
5,263,007
25,589,536
4,040,813
462,031,947
212,621,246
31/12/2021
1,725,048,720
297,364,906
50,637,002
347,141,373
12,489,264
68,525,079
18,217,043
--
12,837,396
4,136,184
373,972,381
159,334,035
4,570,191,615
3,069,703,383
*
deposits collected from the lessees of EFG Hermes Corp- Solutions.
Deposits due to others amounted to EGP 4,040,813 as at 31 December 2022 versus EGP 4,136,184 as at 31 December 2021 represents the
22. Deferred tax assets (liabilities)
Balance at
1/1/2022
(Restated*)
Acquisition
of subsid-
iaries
Recog-
nized in
profit or
loss
(113,456,183)
(100,366)
3,167,668
(398,302)
1,180,104
29,241,747
(290,607,350)
--
--
--
--
148,241
253,272
14,155,129
Recog-
nized in
equity
Foreign
currency
differences
Deferred
tax assets
Net
Deferred
tax
liabilities
--
--
--
--
59,422
(110,329,459)
--
(110,329,459)
435,439
185,378
185,378
(12,497)
1,420,879
1,420,879
8,407,597
51,804,473
51,804,473
--
--
--
(203,330,073)
24,443,416
--
(469,494,007)
--
(469,494,007)
1,457,373
--
(215,262,894)
1,867,147
(5,582,969)
7,775,053
--
--
--
--
(1,633,912)
1,433,517
--
--
--
--
184,645
(213,620,876)
--
(213,620,876)
--
--
--
1,867,147
1,867,147
--
(7,216,881)
--
(7,216,881)
9,208,570
9,208,570
--
(368,523,380)
(100,366) (401,069,052)
24,443,416
9,074,606 (736,174,776)
64,486,447 (800,661,223)
Fixed assets
depreciation
Claims provision
Impairment loss on
assets
Prior year losses
carried forward
Investment at fair
value
Foreign currency
translation differ-
ences
Revaluation of invest-
ment property
Investment in
Associates
ESOP deferred
150 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 151
Financial Statements
23.
Provisions
24.
Loans and borrowings
Claims provision
Commercial bank (aiBank) contingent liabilities
Severance pay provision
Financial guarantee for contingent liabilities
Balance
23.1.
(23-1)
(23-1)
(23-1)
(23-1)
31/12/2022
406,954,289
55,413,903
405,700,617
35,646,999
31/12/2021
372,814,069
56,117,796
226,617,198
34,452,878
903,715,808
690,001,941
Claims
provision
Severance Pay
provision*
Financial
guarantee for
contingent
liabilities
Commercial
bank
contingent
liabilities
Total
Balance at the beginning of the year
372,814,069
226,617,198
34,452,878
56,117,796
690,001,941
Formed during the year
96,578,413
60,311,260
21,174,484
--
178,064,157
Foreign currency differences
11,421,949
135,534,991
--
1,903,284
148,860,224
Amounts used during the year
(23,437,341)
(21,267,899)
(19,980,363)
Actuarial of employees’ benefits obligations
--
4,505,067
No longer needed
(50,422,801)
--
--
--
--
--
(64,685,603)
4,505,067
(2,607,177)
(53,029,978)
Balance at the end of the year
406,954,289
405,700,617
35,646,999
55,413,903
903,715,808
* Related to group entities outside Egypt.
The borrower
EFG Hermes Corp-Solutions *
,,
,,
,,
,,
,,
,,
,,
,,
,,
,,
,,
,,
,,
,,
,,
,,
,,
,,
,,
,,
,,
,,
Arab Investment bank
,,
EFG – Hermes Pakistan Limited
,,
Tanmeyah Micro Enterprise Services S.A.E
,,
Valu
,,
,,
,,
EFG - Hermes Advisory Inc.
EFG Finance Holding
,,
,,
EFG Hermes Int. Fin Corp
Lease liabilities**
Balance
Current
Non-current
Balance
Credit Limit Contract date Maturity date
16/7/2027
16/7/2020
27/2/2027
27/2/2020
12/12/2026
12/12/2019
31/3/2023
29/3/2022
22/8/2028
22/8/2022
31/3/2027
6/3/2022
14/3/2023
14/3/2016
13/7/2027
13/7/2020
12/6/2025
12/6/2017
18/2/2025
28/3/2022
30/9/2023
9/3/2022
30/5/2023
15/5/2022
30/9/2027
20/2/2022
24/4/2023
24/4/2017
25/5/2028
26/10/2022
4/4/2028
4/4/2021
19/10/2022
19/10/2017
6/5/2028
1/11/2022
7/2/2023
7/2/2018
19/5/2027
19/5/2020
15/8/2028
15/8/2022
30/3/2024
6/2/2022
26/11/2027
26/11/2020
1/8/2023
13/4/2017
31/7/2023
13/4/2017
11/5/2026
12/5/2017
28/10/2024
29/10/2021
3/5/2023
4/5/2018
12/2/2022
4/11/2019
12/1/2023
12/11/2017
31/12/2023
15/6/2022
30/11/2023
5/9/2022
30/9/2024
6/7/2022
18/5/2022
18/11/2021
13/8/2027
13/8/2020
21/12/2028
21/12/2021
30/8/2028
30/8/2021
21/5/2023
21/5/2021
335 million
150 million
600 million
540 million
2 billion
508 million
24 million
233 million
200 million
168 thousand
450 million
150 million
300 million
408 thousand
50 million
100 million
493.7 million
200 million
225 million
101 million
600 million
750 million
100 million
10.3 million
25.4 million
40.8 million
48.9 million
75 million
81.3 million
100 million
350 million
175 million
375 million
370 million
250 million
400 million
250 million
785.5 million
31/12/2022
71,975,503
27,332,594
314,592,847
472,734,144
715,725,823
374,365,908
24,019,715
135,448,140
--
168,131
141,154,502
75,526,723
173,766,259
408,995
36,193,872
50,699,700
493,700,000
196,836,578
57,590,676
101,407,037
61,292,881
386,920,412
62,677,183
1,555,798
5,000,715
40,833,000
48,999,600
59,481,121
--
8,000,000
253,948,780
172,773,583
430,898,843
--
--
--
--
--
412,473,001
5,408,502,064
31/12/2021
169,630,189
43,728,117
412,389,761
315,766,871
682,796,686
177,724,571
69,696,583
26,822,749
19,209,706
653,831
397,029,955
114,928,127
81,305,409
1,226,987
99,346,583
21,052,491
7,069,500
8,834,128
97,590,676
164,578,428
357,425,443
260,283,150
66,287,873
3,630,198
10,001,430
32,990,250
39,588,300
43,633,026
27,104,333
16,120,232
--
--
--
370,497,531
250,000,000
375,175,828
123,946,345
613,004,200
462,264,389
5,963,333,876
1,589,604,253
3,818,897,811
5,408,502,064
2,682,374,853
3,280,959,023
5,963,333,876
* EFG Hermes Corp Solutions (wholly owned subsidiary), is committed to settle the credit granted by waiving the rental value of the finance lease contracts
to the banks within the credit amount.
** Lease liabilities include an amount of EGP 153,253,280 in the name of EFG-Hermes Holding and Tanmeyah Micro Enterprise Services S.A.E that repre-
sents sale and lease back agreement.
152 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 153
Financial Statements
25.
Share capital
• The company’s authorized capital amounts EGP 6 billion and issued capital amounts EGP 3,843,091,115 distributed on
768,618,223 shares of par value EGP 5 per share which is fully paid.
• The company’s General Assembly approved in its session held on May 20, 2021 to increase the company’s issued
capital from EGP 3,843,091,115 to EGP 4,611,709,340 distributed on 922,341,868 shares with an increase amounting to
EGP 768,618,225 by issuing 153,723,645 shares with par value EGP 5 through the issuance of one free share for every
five shares. This increase is transferred from the company retained earnings that presented in December 31, 2020
financial statements. The required procedures had been taken to register the increase in the Commercial Register.
• On 28th September 2021, the Company’s General Assembly approved the increase in issued capital from EGP
4,611,709,340 to EGP 4,865,353,355 representing an increase of EGP 253,644,015 and distributed on 50,728,803
shares having a par value of EGP 5 per share, The issuance of the capital increase shares were financed from the share
premium reserve for the purpose of the Remuneration & Incentive Program of the Employees, Managers & Executive
Board Members of the Company and its subsidiaries. The commercial register was updated and the issued shares
were allocated under the Remuneration & Incentive Program of the Employees of the Company, and the Beneficiary
of the program will be entitled to attend the Ordinary and Extraordinary General Shareholders of the Company and to
vote on its resolutions upon the transfer of ownership of the Granted Shares to the Beneficiary.
• The company’s General Assembly approved in its session held on May 19, 2022 to increase the company’s issued
capital from EGP 4,865,353,355 to EGP 5,838,424,030 distributed on 1,167,684,806 shares with an increase amounting
to EGP 973,070,675 by issuing 194,614,135 shares with par value EGP 5 through the issuance of one free share for every
five shares. This increase is transferred from the company retained earnings that presented in December 31, 2021
financial statements. The required procedures had been taken to register the increase in the Commercial Register.
26. Non - controlling interests
Share capital
Additional paid-in capital
Legal reserve
Other reserves
Treasury shares
Retained (losses)
Profit for the year
Balance
31/12/2022
2,629,160,442
120,463,104
35,867,090
458,125,265
(1,904,208)
31/12/2021
2,618,870,616
120,463,104
37,775,135
309,205,450
--
(180,175,405)
(243,860,630)
354,367,737
117,444,814
3,415,904,025
2,959,898,489
Securitization and Sukuk transactions
-
The group has entered into some securitization and Sukuk transactions, the assets and liabilities related to those trans-
actions do not qualify for the recognition criteria under Egyptian accounting standards, accordingly the group has not
recognized those assets or liabilities.
The assets and liabilities related to those transactions are represented in :
Client portfolios related to securitization transactions
Balances with custodians
Land and Buildings related to Sukuk transactions
Total Assets
Bonds
Sukuk
Total liabilities
11,694,428,998
1,644,811,682
2,350,000,000
15,689,240,680
8,629,176,743
2,350,000,000
10,979,176,743
Arab Investment Bank Contingent liabilities are as follows:
Capital commitments
27.
A-
Financial investments
The value of commitments related to financial investments for which payments was not requested until the date of the
financial position as at 31 December 2022:
African Export -Import Bank
1,066,131
586,021
480,110
Contribution
amount
USD
Amount paid
Residual amount
USD
USD
Long-Term Assets
1,026,118,921
835,920,588
190,198 ,333
Contribution
amount
EGP
Amount paid
Residual amount
EGP
EGP
Contingent liabilities
27.
The holding company guarantees its subsidiary EFG- Hermes UAE LLC against the Letters of Guarantee issued from banks
amounting to:
Commitments on loans, guarantees and facilities
B-
The bank’s commitments on loans and facilities are as follows:
AED
Equivalent to EGP
Group off-financial position items:
Assets under management
31/12/2022
83,670,000
562,362,804
31/12/2021
83,670,000
357,864,957
108,911,765,671
71,407,412,524
Letters of guarantees
Letters of credit (Export and Import)
Acceptances of supplier facilities
Balance
31 December 2022
EGP
2,649,790,604
330,149,059
236,791,075
3,216,730,738
154 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 155
Financial Statements * Share-based payments.
The Company introduced an Employees Share Ownership plan (ESOP) in accordance with the shareholder’s approval at
the extraordinary general assembly meeting by issuing Free shares representing 5.5% of the issued capital of the Com-
pany shall be granted to employees, managers and executive board members of the Company and its subsidiaries
The duration of this program is five years starting as of 1 January 2021 till 31 December 2025, the vesting period is 3-4 years
starting from 1 January 2021 till 31 December 2024. The beneficiary entitled to shares granted to 4 equal installments.
The equity instruments for share-based payment are recognized at fair value on the grant date and are record in the income
statement with a corresponding increase in equity. The value of expenses charged to the income statement during the
period amounted EGP 139,361,770.
Equity instruments during the year represents the following:
Total at the beginning of the year
Free shares distributed during the year
Granted shares during the year
Forfeited shares during the year
Total at the end of the year
For the
year ended
31/12/2022 No.
of Shares
For the
year ended
31/12/2021 No. of
Shares
48,504,101
9,700,820
--
--
--
48,504,101
(2,000,200)
56,204,721
--
48,504,101
28. Other Revenues
Other revenues includes rental income, and non-recurring income.
29.
Impairment loss on assets
Accounts receivables
Loans receivables
Cash and cash equivalents
Other Debit Accounts
Financial investments
Good will and intangible assets
Total
30.
Income tax expense
Current income tax
Deferred tax
Total
For the year ended
31/12/2022
168,004,199
532,046,433
272,687
(1,039,140)
27,226,709
10,239,220
31/12/2021
19,016,764
104,431,821
451,596
15,756,528
(1,661,609)
16,034,698
736,750,108
154,029,798
For the year ended
31/12/2022
702,655,446
401,069,052
1,103,724,498
31/12/2021
367,271,918
(17,076,218)
350,195,700
Cash and cash equivalents
31.
For the purpose of preparing the statement of cash flows, cash and cash equivalents are represented in the following :
Cash and due from banks
Bank overdraft
Treasury bills less than 90 days
Effect of exchange rate
Cash and cash equivalents
32. General administrative expenses
Wages, salaries and similar items*
Consultancy
Travel , accommodation and transportation
Leased line and communication
Rent and utilities expenses
Other expenses
Total
31/12/2022
31/12/2021
24,311,054,657
11,355,533,830
(11,544,331,480)
(8,818,578,082)
312,860,649
2,177,404,414
--
2,785,526,223
13,079,583,826
7,499,886,385
For the year ended
31/12/2022
4,574,748,051
365,708,040
42,943,614
207,381,132
93,210,669
1,142,265,391
31/12/2021
2,787,653,848
179,435,929
10,203,324
142,505,592
58,457,373
489,121,942
6,426,256,897
3,667,378,008
156 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 157
Financial Statements
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158 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 159
s
e
i
t
i
l
i
b
a
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l
l
a
t
o
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I
Financial Statements
(b)
Geographical segments
• The Group operates in main geographical areas: Egypt, GCC. In presenting the geographic information, segment revenue has
been based on the geographical location of operation and the segment assets were based on the geographical location of
the assets. The group's operations are reported under geographical segments, reflecting their respective size of operation.
• The revenue analysis in the tables below is based on the location of the operating company, which is the same as the
location of the major customers and the location of the operating companies.
Total revenues
Segment assets
Total revenues
Segment assets
December 31, 2022
Egypt
GCC
Other
Total
8,905,934,254
1,868,327,716
161,087,863
10,935,349,833
83,832,797,440
14,681,496,090
6,995,245,996
105,509,539,526
December 31, 2021
Egypt
GCC
Other
Total
4,736,447,682
1,230,795,863
173,740,479
6,140,984,024
81,451,088,917
15,427,005,155
508,346,916
97,386,440,988
34.
Tax status (the holding company)
• As to Income Tax, the years till 2019 the competent Tax Inspectorate inspected the parent company’s books and all the
disputed points have been settled with the Internal Committee. as to years 2020/2021, have not been inspected yet.
• As to Salaries Tax, the parent company’s books had been examined till 2020 and all the disputed points have been
settled with the Internal committee and as to years 2021/2022 have not been inspected yet.
• As to Stamp Tax, the parent company’s books had been examined from year 1998 till 2018 and all the disputed points
have been settled with the competent Tax Inspectorate and as to years 2019/2022 have not been inspected yet.
• As to Property Tax, for Smart Village building the company paid tax till December 31, 2022 and for Nile City building the
company paid tax till December 31, 2021.
35. Corresponding figures
Certain adjustments have been made to some comparative figures as a result to the Purchase price allocation (PPA) of
Arab Investment Bank as following:
Statement of financial position
Property, plant and equipment
Other assets
Assets held for sale
Goodwill and other intangible assets
Deferred tax Liabilities
Retained earnings
Non - controling interests
Income Statement
Depreciation and amortisation
Gain on acquisition
Income tax expense
Profit for the year
Owners of the Company
Non - controling interests
Other Adjustments
Statement of financial position
Loans and faciltites to customer
Creditors and other credit balances
(As reported) for
the year ended
31/12/2021
EGP
999,401,918
2,561,079,667
305,541,145
1,107,396,952
296,588,621
6,390,395,096
2,758,224,565
(193,664,511)
--
(350,786,930)
1,574,920,094
1,456,477,842
118,442,252
Adjustments
EGP
522,910,192
3,183,444
5,204,000
(113,557,873)
119,541,968
96,523,871
(Restated) for
the year ended
31/12/2021
EGP
1,522,312,110
2,564,263,111
310,745,145
993,839,079
416,130,589
6,486,918,967
201,673,924
2,959,898,489
(2,627,689)
97,562,892
(196,292,200)
97,562,892
591,230
(350,195,700)
95,526,433
1,670,446,527
96,523,871
1,553,001,713
(997,438)
117,444,814
19,625,924,145
2,695,731,002
373,972,381
373,972,381
19,999,896,526
3,069,703,383
The company did not present a third statement of financial position as at the beginning of the preceding period as ret-
rospective restatement has no effect on the information in the statement of financial position at the beginning of the
preceding period.
160 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 161
Financial Statements 36. Group’s entities
The parent company owns the following subsidiaries:
Direct owner-
ship
%
Indirect owner-
ship
%
EFG Hermes International Securities Brokerage -
Financial Brokerage Group (Previously)
Egyptian Fund Management Group
Hermes Portfolio and Fund Management
Hermes Securities Brokerage
Hermes Corporate Finance
EFG - Hermes Advisory Inc.
EFG- Hermes Financial Management (Egypt) Ltd.
EFG - Hermes Promoting & Underwriting
Bayonne Enterprises Ltd.
EFG- Hermes Fixed Income
EFG- Hermes Management
EFG- Hermes Private Equity
EFG- Hermes UAE LLC.
Flemming CIIC Holding
Flemming Mansour Securities
Flemming CIIC Securities
Flemming CIIC Corporate Finance
EFG- Hermes UAE Ltd.
EFG- Hermes Holding - Lebanon
EFG- Hermes KSA
EFG- Hermes Lebanon
Mena Opportunities Management Limited
Mena (BVI) Holding Ltd.
EFG - Hermes Mena Securities Ltd.
Middle East North Africa Financial Investments W.L.L
EFG- Hermes Oman LLC
EFG- Hermes Regional Investment Ltd.
Offset Holding KSC **
EFG- Hermes IFA Financial Brokerage
IDEAVELOPERS
EFG- Hermes CB Holding Limited
EFG- Hermes Global CB Holding Limited
EFG - Hermes Syria LLC *
Sindyan Syria LLC *
Talas & Co. LLP *
EFG - Hermes Jordan
Mena Long-Term Value Feeder Holdings Ltd. **
Mena Long-Term Value Master Holdings Ltd. **
Mena Long-Term Value Management Ltd.**
EFG - Hermes CL Holding SAL
EFG-Hermes IB Limited
Financial Group for Securitization
Beaufort Investments Company
EFG Hermes-Direct Investment Fund
Tanmeyah Micro Enterprise Services S.A.E
EFG – Hermes Frontier Holdings LLC
EFG – Hermes USA
EFG Capital Partners III
99.87
88.51
78.81
97.58
99.42
100
--
99.88
100
99
96.3
--
--
100
--
--
--
100
99
73.3
99
--
--
--
--
--
100
--
--
--
--
100
49
97
--
100
--
--
--
--
100
100
--
64
--
100
100
--
0.09
11.49
21.19
2.42
0.48
--
100
--
--
1
3.7
100
100
--
99.33
96
74.92
--
--
26.7
0.97
95
95
100
100
51
--
50
63.084
80
100
--
20.37
--
97
--
50
45
45
100
--
--
100
--
93.983
--
--
100
Health Management Company
EFG – Hermes Kenya Ltd.
EFG Finance Holding
EFG - Hermes Pakistan Limited
EFG - Hermes UK Limited
OLT Investment International Company (B.S.C)
Frontier Investment Management Partners LTD **
EFG-Hermes SP limited
Valu
EFG Hermes Corp-Solutions
Beaufort Asset Managers LTD
EFG Hermes Bangladesh Limited
EFG Hermes FI Limited
EFG Hermes Securitization
EFG Hermes PE Holding LLC
Etkan for Inquiry and Collection and Business Processes
RX Healthcare Management
FIM Partners KSA **
Egypt Education Fund GP Limited
EFG Hermes Nigeria Limited
EFG-Hermes Int. Fin Corp
FIM Partners UK Ltd
EFG Hermes Sukuk
Beaufort Holding LTD.
Beaufort Management LTD.
Vortex IV GP LTD.
Beaufort SLP Holding
Beaufort Private Investment Holding LTD.
Frontier Disruption Capital
Arab Investment Bank
EFG VA Holdco Limited
EFG VA Investco Limited
Lighthouse Energy GP Limited
Beaufort SLP II Limited
Lighthouse Energy GP II
Beaufort Management Spain
EFG Singapore PTE LTD
Fatura Netherlands B.V
Fatura L.L.C
ASASY FOR DIGITAL CONTENT
EFG Payment
FIM Partners Muscat SPC
Noutah for electronic commerce
EFG National Holding Limited
EFG RMBV National Investco Limited
EFG IB Holdco Limited
EFG IB Investco Limited
Direct owner-
ship
%
--
--
99.82
--
--
99.9
--
--
--
--
--
--
--
--
100
--
--
--
--
--
100
--
90
--
--
--
--
--
--
51
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
Indirect owner-
ship
%
52.5
100
0.18
51
100
--
50
100
100
100
100
100
100
100
--
100
52.5
50
80
100
--
50
10
100
100
100
100
100
50
--
100
100
100
100
100
100
100
93.983
93.983
93.983
100
50
93.983
100
100
100
100
* Due to the political situation in Syria, the Group lost its control on the Syrian entities. In 2016, the Group deconsolidated the Syrian companies and changed
them to a fully impaired investments at fair value through OCI.
** The Holding Company has the power to govern the financial and operating policies of the mentioned companies then the investees Companies is classi-
fied as investments in subsidiaries.
162 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 163
Financial Statements 37. Measurement of fair value
38. Classification of financial assets and financial liabilities
• A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial
and non-financial assets and liabilities.
• When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair
values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques
as follows.
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).
• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
• If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy,
then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest
level input that is significant to the entire measurement.
• Valuation techniques include net present value and discounted cash flow models, comparison with similar instru-
ments for which observable market prices exist and other valuation models. Assumptions and inputs used in valuation
techniques include risk-free and benchmark interest rates, credit spreads and other premiums used in estimating
discount rates, bond and equity prices, foreign currency exchange rates.
• The following table analyses financial instruments measured at fair value at the reporting date, by the level in the fair
value hierarchy into which the fair value measurement is categorised. The amounts are based on the values recog-
nised in the statement of financial position:
Financial assets
Mutual fund certificates
Equity securities
Structured notes
Treasury bills
Debt instruments
Financial Liabilities
Accounts payable - customers credit
balance at fair value through profit
and loss
Financial assets
Mutual fund certificates
Equity securities
Treasury bills
Structured notes
Debt instruments
Financial Liabilities
Accounts payable - customers credit
balance at fair value through profit
and loss
Note no
(7,10)
(7,10)
(7)
(7,10)
(7,10)
(19)
Note no
(7,10)
(7,10)
(7,10)
(7,10)
(7,10)
(19)
31 December 2022
Level 1
-
77,624,340
-
-
5,778,520,527
5,856,144,867
Level 2
-
-
379,039,443
9,022,994,434
-
9,402,033,877
Level 3
5,347,140,407
247,695,210
-
-
-
5,594,835,617
Total
5,347,140,407
325,319,550
379,039,443
9,022,994,434
5,778,520,527
20,853,014,361
-
-
379,039,443
379,039,443
-
-
379,039,443
379,039,443
31 December 2021
Level 1
-
95,884,129
-
-
2,491,548,770
2,587,432,899
Level 2
-
-
4,542,374,641
14,345,768,449
-
18,888,143,090
Level 3
3,193,932,913
153,511,241
-
-
-
3,347,444,154
Total
3,193,932,913
249,395,370
4,542,374,641
14,345,768,449
2,491,548,770
24,823,020,143
-
-
3,890,060,348
3,890,060,348
-
-
3,890,060,348
3,890,060,348
Financial assets
Mutual fund certificates
Equity securities
Treasury bills
Structured notes
Debt instruments
Cash and cash equivalents
Loans and facilities to customer
Accounts receivables
Other assets
Financial Liabilities
Due to banks and financial institutions
Customer Deposits
Loans and borrowings
Creditors and other credit balances
Accounts payable - customers credit
balance at fair value through profit and loss
Accounts payable - customers credit
balance
Issued bonds
Financial assets
Mutual fund certificates
Equity securities
Treasury bills
Structured notes
Debt instruments
Cash and cash equivalents
Loans and facilities to customer
Accounts receivables
Other assets
Financial Liabilities
Due to banks and financial institutions
Customer Deposits
Loans and borrowings
Creditors and other credit balances
Accounts payable - customers credit
balance at fair value through profit and loss
Accounts payable - customers credit
balance
Issued bonds
Note no
(7,10)
(7,10)
(7,10,12)
(7)
(7,10,12)
(6)
(9)
(8)
(16)
(17)
(18)
(24)
(21)
(19)
(20)
Note no
(7,10)
(7,10)
(7,10)
(7,10)
(7,10,12)
(6)
(9)
(8)
(16)
(17)
(18)
(24)
(21)
(19)
(20)
31 December 2022
Amortised Cost
--
--
581,157,127
--
10,937,535,250
26,214,250,479
33,222,142,228
5,569,133,136
3,401,909,847
79,926,128,067
12,371,835,820
48,130,171,764
5,408,502,064
4,570,191,615
FVTPL
5,231,021,232
165,787,522
336,438,555
379,039,443
660,606,610
--
--
--
--
6,772,893,362
--
--
--
--
--
379,039,443
9,595,446,350
500,000,000
80,576,147,613
--
--
379,039,443
31 December 2021
Amortised Cost
--
--
--
--
10,050,278,918
30,876,257,819
19,999,896,526
5,611,375,904
2,564,263,111
69,102,072,278
17,736,580,111
38,564,737,371
5,963,333,876
3,069,703,383
FVTPL
3,094,960,043
144,330,891
202,273,451
3,890,060,348
670,915,045
--
--
--
--
8,002,539,778
--
--
--
--
--
3,890,060,348
8,537,833,096
550,000,000
74,422,187,837
--
--
3,890,060,348
FVTOCI
116,119,175
159,532,028
8,686,555,879
--
5,117,913,917
--
--
--
--
14,080,120,999
--
--
--
--
--
--
--
--
FVTOCI
98,972,870
105,064,479
4,340,101,190
10,455,708,101
1,820,633,725
--
--
--
--
16,820,480,365
--
--
--
--
--
--
--
--
164 | EFG Hermes Holding | Annual Report 2022
Annual Report 2022 | EFG Hermes Holding | 165
Financial Statements
Financial instruments and management of related risks:
39.
The Company's financial instruments are represented in the financial assets and liabilities. Financial assets include cash
balances with banks, investments and debtors while financial liabilities include loans and creditors. Notes to financial state-
ments includes significant accounting policies applied regarding basis of recognition and measurement of the important
financial instruments and related revenues and expenses by the company to minimize the consequences of such risks.
39.1. Market risk
Market risk is defined as the potential loss in both on and off financial position resulting from movements in market risk
factors such as foreign exchange rates, interest rates, and equity prices.
Market risk is represented in the factors which affect values, earnings and profits of all securities negotiated in stock ex-
change or affect the value, earning and profit of a particular security.
According to the company's investment policy, the following procedures are undertaken to reduce the effect of this risk.
• Performing the necessary studies before investment decision in order to verify that investment is made in potential
securities.
• Diversification of investments in different sectors and industries.
• Performing continuous studies required to follow up the company's investments and their development.
39.2. Foreign currencies risk
• The foreign currencies exchange risk represents the risk of fluctuation in exchange rates, which in turn affects the
company’s cash inflows and outflows as well as the value of its assets and liabilities in foreign currencies.
• The company has revaluate assets and liabilities at the financial position date as disclosed in foreign currency ac-
counting policy.
39.3. Risk management
In the ordinary course of business, the Group is exposed to a variety of risks, the most important of which are liquidity risk,
interest rate risk, currency risk, credit risk and market risk. These risks are identified, measured and monitored through various
control mechanisms in order to price facilities and products on a risk adjusted basis and to prevent undue risk concentrations.
The independent risk control process does not include business risks such as changes in the environment, technology and
industry. They are monitored through the Group’s strategic planning process.
39.4. Credit risk
Credit risk is the risk of a person or an organization defaulting in the repayment of their obligations to the Group in respect of
the terms and conditions of the credit facilities granted to them by the Group. The management minimizes this risk by spread-
ing its loan portfolio overall economic sectors and by adopting appropriate procedures and controls to evaluate the quality of
the credit facilities granted and the creditworthiness of the borrowers. The credit risk of connected accounts is monitored on
a united basis. In addition, the effective credit appraisal procedure for examining applications for credit facilities followed by
the Group, adopts as the main criteria the repayment capability and obtaining sufficient collateral. The continuous monitoring
of credit accounts and the timely preventive action further minimize, to a large extent, the exposure to credit risk.
39.5. Liquidity risk
Liquidity risk is the risk that the Group will be unable to meet its payment obligations when they fall due under normal
and stress circumstances. To limit this risk, management has arranged diversified funding sources in addition to its core
deposit base, manages assets with liquidity in mind and monitors future cash flows and liquidity on daily basis. This incor-
porates an assessment of expected cash flows and the availability of high grade collateral which could be used to secure
additional funding if required.
The Group maintains a portfolio of high marketable and diverse assets that can be easily liquidated in the event of an
unforeseen interpretation of cash flow. In addition, the Group maintains statutory deposits with the Central Banks.
The liquidity position is assessed and managed under a variety of scenarios, giving due consideration to stress factors
relating to both the market in general and to the Group in specific. The Group maintains a solid ratio of high liquid net assets
in foreign currencies to deposits and commitments in foreign currencies taking markets conditions into consideration.
Interest rate risk
39.6.
Interest rate risk stems from the sensitivity of earnings to future movements in interest rates applied on assets and liabilities.
The Group’s management closely monitors interest rate fluctuations on a continuous basis and ensures that assets and
liabilities are matched and re-priced in a timely manner. The Group is exposed to interest rate risk as a result of mismatches
or gaps in the amounts of assets and liabilities that mature or are re-priced in a given period. The most important source of
interest rate risk derives from the lending, funding and investing activities, where fluctuations in interest rates are reflected
in interest margins and earnings.
39.7. Equity price risk
Equity price risk is the risk that the value of a portfolio will fall as a result of change in stock prices. Risk factors underlying
this type of market risk are a whole range of various equity (and index) prices corresponding to different markets (and
currencies/maturities), in which the Group holds equity-related positions.
The Group sets tight limits on equity exposures and the types of equity instruments that traders are allowed to take posi-
tions in. Nevertheless, depending on the complexity of financial instruments, equity risk is measured in first cash terms,
such as the market value of a stock/index position, and also in price sensitivities, such as sensitivity of the value of a
portfolio to changes in the underlying asset price. These measures are applied to an individual position and/or a portfolio
of equity products.
39.8. Operational risk
Operational risk is the risk of direct or indirect loss due to an event or action causing failure of technology, process infra-
structure, personnel, and other risks having an operational risk impact. The Group seeks to minimize actual or potential
losses from operational risk failure through a framework of policies and procedures that identify, assess, control, manage,
and report those risks. Controls include effective segregation of duties, access, authorization and reconciliation proce-
dures, staff education and assessment processes.
39.9. Fair value of financial instruments
The fair value of the financial instruments does not substantially deviated from its book value at the financial position date.
According to the valuation basis applied, in accounting policies to the assets and liabilities.
39.10. Derivative financial instruments and hedge accounting
• Derivatives are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently
re-measured at their fair value, according to the valuation basis applied, in accounting policies to derivative financial instruments.
• In accordance with an arrangement between the subsidiary, EFG- Hermes Mena Securities Limited Co. and its cus-
tomers (“the customers”), the Company from time to time enters into fully paid Shares Swap Transaction Contracts
(“the contracts”) with the customers. Under the contracts the customers pay to the Company a pre-determined price,
which is essentially the market price at the trade date, in respect of certain reference securities. In return for such
shares swap transactions the Company pays to the customers the mark to market price of the reference securities at
a pre-determined date (normally after one year). However, the contracts can be terminated at any time by either of the
parties, which shall be the affected party.
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Financial Statements
In order to hedge the price risks with respect to the reference securities under the contracts, the Company enters into
back-to-back fully paid Share Swap Transaction Contracts with other subsidiaries, MENA Financial Investments W.L.L.
(“MENA-F”) and EFG-Hermes KSA.
Accordingly, the Share Swap Transactions are measured at fair value based on underlying reference securities under the contracts.
Significant accounting policies applied
40.
40.1. Basis of consolidation
40.1.1. Business combination
• The Group accounts for business combinations using the acquisition method when control is transferred to the Group.
• The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets
acquired.
• Any goodwill that arises is tested annually for impairment, any gain on a bargain purchase is recognized immediately in
profit or loss.
• Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.
• The consideration transferred doesn’t include amounts related to the settlement of pre-existing relationships. Such
amounts are generally recognized in profit or loss.
• Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consid-
eration that meets the definition of a financial instrument is classified as equity, then it is not re measured and settlement
is accounted for within equity. Otherwise, other contingent consideration is re measured at fair value at each reporting
date and subsequent changes in the fair value of the contingent consideration are recognized in profit or loss.
40.1.2. Subsidiaries
• Subsidiaries are entities controlled by the Group.
• The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity
and has the ability to affect those returns through its power over the entity.
• The financial statements of subsidiaries are included in the consolidated financial statements from the date on which
control commences until the date on which control ceases.
40.1.3. Non-controlling interests
NCI are measured at their proportionate share of the acquiree’s identifiable net assets at the date of acquisition. Changes
in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.
40.1.4. Loss of control
When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related
NCI and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the
former subsidiary is measured at fair value when control is lost.
Interests in equity-accounted investees
40.1.5.
The Group’s interests in equity-accounted investees comprise interests in associates and a joint venture. Associates are
those entities in which the Group has significant influence, but not control or joint control, over the financial and operating
policies. A joint venture is an arrangement in which the Group has joint control, where by the Group has rights to the net
assets of the arrangement. Rather than rights to its assets and obligations for its liabilities.
Interests in associates and the joint venture are accounted for using the equity method. They are initially recognized at
cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the
Group’s share of the profit or loss and OCI of equity accounted investees, until the date on which significant influence or
joint control ceases.
40.1.6. Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are
eliminated. Unrealised gains arising from transactions with equity accounted investees are eliminated against the invest-
ment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised
gains, but only to the extent that there is no evidence of impairment.
40.2. Foreign currency
40.2.1. Foreign currency transactions
Transactions in foreign currencies are translated into the respective functional currencies of Group companies at the ex-
change rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the ex-
change rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency
are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary items
that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the
transaction. Foreign currency differences are generally recognised in profit or loss and presented within finance costs.
However, foreign currency differences arising from the translation of the following items are recognised in OCI:
• An investment in equity securities designated as at FVOCI (except on impairment, in which case foreign currency
differences that have been recognised in OCI are reclassified to profit or loss);
• A financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is
effective and
• Qualifying cash flow hedges to the extent that the hedges are effective.
40.2.2. Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are
translated at the exchange rates at the reporting date. The income and expenses of foreign operations are translated at the
exchange rates at the dates of the transactions.
Foreign currency differences are recognized in OCI and accumulated in the translation reserve, except to the extent that
the translation difference is allocated to NCI.
When a foreign operation is disposed of in its entirety or partially such that control, significant influence or joint control is
lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as
part of the gain or loss on disposal. If the Group disposes of part of its interest in a subsidiary but retains control, then the
relevant proportion of the cumulative amount is reattributed to NCI. When the Group disposes of only part of an associate
or joint venture while retaining significant influence or joint control, the relevant proportion of the cumulative amount is
reclassified to profit or loss.
40.3. Discontinued operation
A discontinued operation is a component of the Group’s business, the operations and cash flows of which can be clearly
distinguished from the rest of the Group.
Classification as a discontinued operation occurs at the earlier of disposal or when the operation meets the criteria to be
classified as held-for-sale.
When an operation is classified as a discontinued operation, the comparative statement of profit or loss and OCI is re-
presented as if the operation had been discontinued from the start of the comparative period.
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Financial Statements 40.4. Revenue
40.4.1. Gain (loss) on sale of investments
Gain (loss) resulting from sale of investments are recognized on transaction date and measured by the difference between
cost and selling price less selling commission and expenses. In case of derecognizing of investments in associates, the
difference between the carrying amount and the sum of both the consideration received and cumulative gain or loss that
had been recognized in shareholders’ equity shall be recognized in income statement.
40.4.2. Dividend income
Dividend income is recognized when declared.
40.4.3. Custody fee
Custody fees are recognized when the service is provided and the invoice is issued.
40.4.4. Interest income and expenses
Interest income and expenses are recognized in the income statement under “Interest income” item or “Interest expenses”
by using the effective interest rate method of all instruments bearing interest other than those classified held for trading or
which have been classified at inception “fair value through income statement”.
40.4.5. Fee and commission income
Fee related to servicing the loan or facility are recognized in income when performing the service while the fees and
commissions related to non-performing or impaired loans are not recognized, instead, they are to be recorded in marginal
records off the financial position. Then they are recognized within the income pursuant to the cash basis when the interest
income is collected. As for fees which represent an integral part of the actual return on the financial assets, they are treated
as an amendment to the rate of actual return.
40.4.6. Brokerage commission
Brokerage commission resulting from purchase of and sale of securities operations in favor of clients are recorded when
operation is implemented and the invoice is issued.
40.4.7. Management fee
Management fee is calculated as determined by the management contract of each investment fund & portfolio and re-
corded on accrual basis.
40.4.8. Incentive fee
Incentive fee is calculated based on certain percentages of the annual return realized by the fund and portfolio, however these in-
centive fee will not be recognized until revenue realization conditions are satisfied and there is adequate assurance of collection.
40.4.9. Investment property rental income
Rental income from investment property is recognized as revenue on a straight-line basis over the term of the lease. Lease
incentives granted are recognized as an integral part of the total rental income, over the term of the lease. Rental income
from other property is recognized as other income.
40.4.10. Revenue from micro-finance services
• Revenue from micro-finance services is recognized based on time proportion taking into consideration the rate of return on
asset. Revenue yield is recognized in the income statement using the effective interest method for all financial instruments
that carry a yield, the effective interest method is the method of measuring the amortised cost of a financial asset and
distributing the revenue over the life of time the relevant instrument. The effective interest rate is the rate that discounts esti-
mated future cash receipts during the expected life of the financial instrument to reach the book value of the financial asset.
• When classifying loans to customers as irregular, no income is recognized on its return and it is recognized in marginal re-
cords outside the financial statements and are recognized as revenue in accordance with the cash basis when it is collected.
• The commission income is represented in the value of the difference between the yield of the financing granted micro-
enterprises and the accruals of the company's bank by deducting the services provided directly from the amounts
collected from the entrepreneurs.
• The benefits and commissions resulting from the performance of the service are recognized, according to the accrual
basis as soon as the service is provided to the client unless those revenues cover more of the financial period are
recognized on a time proportion basis.
• An administrative commission of 8% of the loan granted to customers is collected on contracting in exchange for the
issuance of the loan service and administrative commission revenue are proven in the income statement upon the
issuance of the loan to the client.
• A commission delay in payments of premiums is collected at rates agreed upon within the contracts and are recog-
nized as soon as customers delayed payment on the basis of the extended delay.
40.4.11. Gains from securitization
Gains from securitization is measured as the difference between the fair value of the consideration received or is still due to
the company at the end of securitization process and the carrying amount of the securitization portfolios in the company’s
books on the date of the transfer agreement.
Income tax
40.5.
Income tax expense comprises current and deferred tax. It is recognized in profit or loss except to the extent that it relates
to a business combination, or items recognized directly in equity or in OCI.
40.5.1. Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjust-
ment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the
best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It
is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also includes any tax arising
from dividends.
Current tax assets and liabilities are offset only if certain criteria are met.
40.5.2. Deferred tax
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognized for:
• Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combina-
tion and that affects neither accounting nor taxable profit or loss;
• Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that
the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not
reverse in the foreseeable future.
• Taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences to the
extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits
are determined based on business plans for individual subsidiaries in the Group. Deferred tax assets are reviewed at each
reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized; such
reductions are reversed when the probability of future taxable profits improves.
Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent that it has become
probable that future taxable profits will be available against which they can be used.
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Financial Statements
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using
tax rates enacted or substantively enacted at the reporting date.
Research and development
-
Expenditure on research activities is recognized in profit or loss as incurred.
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Group
expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. For this purpose, the
carrying amount of investment property measured at fair value is presumed to be recovered through sale, and the Group
has not rebutted this presumption.
Deferred tax assets and liabilities are offset only if certain criteria are met.
40.6. Property, plant and equipment
40.6.1. Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impair-
ment losses. The cost of certain items of property, plant and equipment . If significant parts of an item of property, plant and
equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant
and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.
40.6.2. Subsequent expenditure
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expen-
diture will flow to the Group.
40.6.3. Depreciation
Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual
values using the straight-line method over their estimated useful lives, and is generally recognized in profit or loss. Leased
assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group
will obtain ownership by the end of the lease term. Land is not depreciated. The estimated useful lives of property, plant
and equipment for current and comparative periods are as follows:
Buildings
Office furniture, equipment &
electrical appliances
Computer equipment
Transportation means
Estimated useful life
20 - 50
2-16.67
3.33 - 5
3.33 - 8
years
years
years
years
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
40.6.4. Reclassification to investment property
When the use of a property changes from owner-occupied to investment property.
40.7. Projects under construction
Projects under construction are recognized initially at cost, the book value is amended by any impairment concerning the
value of these projects cost includes all expenditures directly attributable to bringing the asset to a working condition for
its intended use. Property and equipment under construction are transferred to property and equipment caption when they
are completed and are ready for their intended use.
Intangible assets and goodwill
Goodwill
40.8.
-
Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses.
Development expenditure is capitalised only if the expenditure can be measured reliably, the product or process is tech-
nically and commercially feasible, future economic benefits are probable and the Group intends to and has sufficient
resources to complete development and to use or sell the asset. Otherwise, it is recognized in profit or loss as incurred.
Subsequent to initial recognition, development expenditure is measured at cost less accumulated amortisation and any
accumulated impairment losses.
Other intangible assets
-
Other intangible assets, are measured at cost less accumulated amortisation and any accumulated impairment losses.
Investment property
40.9.
Investment property is measured at cost on initial recognition.
Subsequent to initial recognition investment property is measured at cost less accumulated depreciation and impairment
loss, if any. Investment property is depreciated on a straight line basis over is useful life. The estimated useful life of invest-
ment property is 33 years.
40.10. Assets held for sale
Non-current assets, or disposal groups comprising assets and liabilities, are classified as held-for-sale if it is highly prob-
able that they will be recovered primarily through sale rather than through continuing use.
Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to
sell. Any impairment loss on a disposal group is allocated first to goodwill, and then to the remaining assets and liabilities
on a pro rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets, employee benefit
assets, investment property or biological assets, which continue to be measured in accordance with the Group’s other
accounting policies. Impairment losses on initial classification as held-for-sale or held-for distribution and subsequent
gains and losses on remeasurement are recognised in profit or loss.
Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer amortised or depreci-
ated, and any equity-accounted investee is no longer equity accounted.
40.11. Financial instruments
40.11.1. Recognition and initial measurement
Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and
financial liabilities are initially recognised when the Group becomes a party to the contractual provisions of the instrument.
A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially
measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or
issue. A trade receivable without a significant financing component is initially measured at the transaction price.
40.11.2. Classification and subsequent measurement
Financial assets
On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI – debt investment; FVOCI –
equity investment; or FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for
managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting
period following the change in the business model.
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Financial Statements
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
• it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:
• it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets; and
• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subse-
quent changes in the investment’s fair value in OCI. This election is made on an instrument-by-instrument basis.
All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL.
This includes all derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset
that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch that would otherwise arise.
40.11.3. Financial assets – Business model assessment
The Group makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level
because this best reflects the way the business is managed and information is provided to management. The information
considered includes:
• The stated policies and objectives for the portfolio and the operation of those policies in practice. These include
whether management’s strategy focuses on earning contractual interest income, maintaining a particular interest rate
profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows
or realizing cash flows through the sale of the assets;
• How the performance of the portfolio is evaluated and reported to the Group’s management;
• The risks that affect the performance of the business model (and the financial assets held within that business model)
and how those risks are managed;
• How managers of the business are compensated – e.g. whether compensation is based on the fair value of the assets
managed or the contractual cash flows collected; and
• The frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expecta-
tions about future sales activity.
Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for
this purpose, consistent with the Group’s continuing recognition of the assets.
Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are
measured at FVTPL.
40.11.4. Financial assets – Assessment whether contractual cash flows are solely payments of principal and interest
For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial recognition.
‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal amount
outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administra-
tive costs), as well as a profit margin.
In assessing whether the contractual cash flows are solely payments of principal and interest, the Group considers the
contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that
could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this
assessment, the Group considers:
• Contingent events that would change the amount or timing of cash flows;
• terms that may adjust the contractual coupon rate, including variable-rate features;
• Prepayment and extension features; and
• Terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse features).
A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount
substantially represents unpaid amounts of principal and interest on the principal amount outstanding, which may include
reasonable compensation for early termination of the contract. Additionally, for a financial asset acquired at a discount
or premium to its contractual par amount, a feature that permits or requires prepayment at an amount that substantially
represents the contractual par amount plus accrued (but unpaid) contractual interest (which may also include reasonable
compensation for early termination) is treated as consistent with this criterion if the fair value of the prepayment feature is
insignificant at initial recognition.
40.11.5. Financial assets – Subsequent measurement and gains and losses
Financial assets at FVTPL
Financial assets at amortised cost
Debt investments at FVOCI
Equity investments at FVOCI
These assets are subsequently measured at fair value. Net gains and losses, including
any interest or dividend income, are recognised in profit or loss.
These assets are subsequently measured at amortised cost using the effective interest
method. The amortised cost is reduced by impairment losses. Interest income, foreign
exchange gains and losses and impairment are recognised in profit or loss. Any gain or
loss on derecognition is recognised in profit or loss.
These assets are subsequently measured at fair value. Interest income calculated
using the effective interest method, foreign exchange gains and losses and impairment
are recognised in profit or loss. Other net gains and losses are recognised in OCI. On
derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.
These assets are subsequently measured at fair value. Dividends are recognised as
income in profit or loss unless the dividend clearly represents a recovery of part of the
cost of the investment. Other net gains and losses are recognised in OCI and are never
reclassified to profit or loss.
40.11.6. Financial liabilities – Classification, subsequent measurement and gains and losses
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is
classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL
are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other
financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and
foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in
profit or loss.
40.11.7. Derecognition
Financial assets
The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it
transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards
of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the
risks and rewards of ownership and it does not retain control of the financial asset.
The Group enters into transactions whereby it transfers assets recognised in its statement of financial position, but retains either
all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognised.
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Financial Statements Financial liabilities
The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.
The Group also derecognises a financial liability when its terms are modified and the cash flows of the modified
liability are substantially different, in which case a new financial liability based on the modified terms is recognised
at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration
paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.
40.11.8. Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when,
and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them
on a net basis or to realise the asset and settle the liability simultaneously.
40.11.9. Derivative financial instruments and hedge accounting
The Group holds derivative financial instruments to hedge its foreign currency and interest rate risk exposures. Embedded
derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset
and certain criteria are met.
Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and
changes therein are generally recognised in profit or loss.
The Group designates certain derivatives as hedging instruments to hedge the variability in cash flows associated with
highly probable forecast transactions arising from changes in foreign exchange rates and interest rates and certain deriva-
tives and non-derivative financial liabilities as hedges of foreign exchange risk on a net investment in a foreign operation.
At inception of designated hedging relationships, the Group documents the risk management objective and strategy for under-
taking the hedge. The Group also documents the economic relationship between the hedged item and the hedging instrument,
including whether the changes in cash flows of the hedged item and hedging instrument are expected to offset each other.
Cash flow hedges
When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value
of the derivative is recognised in OCI and accumulated in the hedging reserve. The effective portion of changes in
the fair value of the derivative that is recognised in OCI is limited to the cumulative change in fair value of the hedged
item, determined on a present value basis, from inception of the hedge. Any ineffective portion of changes in the fair
value of the derivative is recognised immediately in profit or loss.
The Group designates only the change in fair value of the spot element of forward exchange contracts as the hedging
instrument in cash flow hedging relationships. The change in fair value of the forward element of forward exchange
contracts (forward points) is separately accounted for as a cost of hedging and recognised in a costs of hedging
reserve within equity.
When the hedged forecast transaction subsequently results in the recognition of a non-financial item such as inven-
tory, the amount accumulated in the hedging reserve and the cost of hedging reserve is included directly in the initial
cost of the non-financial item when it is recognised.
For all other hedged forecast transactions, the amount accumulated in the hedging reserve and the cost of hedging
reserve is reclassified to profit or loss in the same period or periods during which the hedged expected future cash
flows affect profit or loss.
If the hedge no longer meets the criteria for hedge accounting or the hedging instrument is sold, expires, is terminated or is
exercised, then hedge accounting is discontinued prospectively. When hedge accounting for cash flow hedges is discon-
tinued, the amount that has been accumulated in the hedging reserve remains in equity until, for a hedge of a transaction
resulting in the recognition of a non-financial item, it is included in the non-financial item’s cost on its initial recognition or,
For other cash flow hedges, it is reclassified to profit or loss in the same period or periods as the hedged expected future
cash flows affect profit or loss.
If the hedged future cash flows are no longer expected to occur, then the amounts that have been accumulated in the
hedging reserve and the cost of hedging reserve are immediately reclassified to profit or loss.
Net investment hedges
When a derivative instrument or a non-derivative financial liability is designated as the hedging instrument in a hedge of
a net investment in a foreign operation, the effective portion of, for a derivative, changes in the fair value of the hedging
instrument or, for a non-derivative, foreign exchange gains and losses is recognised in OCI and presented in the translation
reserve within equity. Any ineffective portion of the changes in the fair value of the derivative or foreign exchange gains and
losses on the non-derivative is recognised immediately in profit or loss. The amount recognised in OCI is reclassified to
profit or loss as a reclassification adjustment on disposal of the foreign operation.
40.12. Share capital
40.12.1. Ordinary shares
Incremental costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity. Income
tax relating to transaction costs of an equity transaction are accounted for in accordance with EAS 24.
40.12.2. Repurchase and reissue of ordinary shares (treasury shares)
When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attribut-
able costs is recognized as a deduction from equity. Repurchased shares are classified as treasury shares and are presented
in the treasury share reserve. When treasury shares are sold or reissued subsequently, the amount received is recognized as
an increase in equity and the resulting surplus or deficit on the transaction is presented within share premium.
40.13. Legal reserve
The Company's statutes provides for deduction of a sum equal to 5% of the annual net profit for formation of the legal
reserve. Such deduction will be ceased when the total reserve reaches an amount equal to half of the Company's issued
capital and when the reserve falls below this limit, it shall be necessary to resume
40.14. Impairment
40.14.1. Non-derivative financial assets
Financial instruments and contract assets
The Group recognises loss allowances for Expected Credit Loss (ECLs) on:
• Financial assets measured at amortised cost;
• Debt investments measured at FVOCI;
• contract assets.
The Group also recognises loss allowances for ECLs on loans receivables.
The Group measures loss allowances at an amount equal to lifetime ECLs, except for the following, which are measured
at 12-month ECLs:
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Financial Statements • Debt securities that are determined to have low credit risk at the reporting date; and
• Other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of
the financial instrument) has not increased significantly since initial recognition.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when
estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue
cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical
experience and informed credit assessment, that includes forward-looking information.
40.14.5. Write-off
The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering
a financial asset in its entirety or a portion thereof. For individual customers, the Group has a policy of writing off the gross
carrying amount when the financial asset is 180 days past due based on historical experience of recoveries of similar
assets. For corporate customers, the Group individually makes an assessment with respect to the timing and amount of
write-off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from
the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order
to comply with the Group’s procedures for recovery of amounts due.
The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.
unless it can be rebutted.
40.14.6. Non-financial assets
The Group considers a financial asset to be in default when:
• The debtor is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to actions such as
realising security (if any is held); or
• The financial asset is more than 90 days past due unless it can be rebutted.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the
reporting date (or a shorter period if the expected life of the instrument is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is ex-
posed to credit risk.
40.14.2. Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash
shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows
that the Group expects to receive).
ECLs are discounted at the effective interest rate of the financial asset.
40.14.3. Credit-impaired financial assets
At each reporting date, the Group assesses whether financial assets carried at amortised cost and debt securities at
FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact
on the estimated future cash flows of the financial asset have occurred.
• At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than, investment
property, contract assets and deferred tax assets) to determine whether there is any indication of impairment. If any
such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually for impairment.
• For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from
continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a business
combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.
• The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value
in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset or CGU.
• An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount.
• Impairment losses are recognised in profit or loss. They are allocated first to reduce the carrying amount of any good-
will allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.
• An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the
extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net
of depreciation or amortisation, if no impairment loss had been recognised.
40.15. Provisions
Provisions are recognized when the Group has a legal or constructive current obligation as a result of a past event and it’s
probable that a flow of economic benefits will be required to settle the obligation. If the effect is material, provisions are
determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessment of
the time value of money and, where appropriate, the risks specific to the liability. Provisions are reviewed at the financial
position date and amended (when necessary) to represent the best current estimate.
40.16. Treasury bills
Treasury bills are recorded at nominal value and the unearned income is recorded under the item of "creditors and other
credit balances". Treasury bills are presented on the financial position net of the unearned income.
Evidence that a financial asset is credit-impaired includes the following observable data:
40-17 Trade, and notes receivables, debtors and other debit balances
• Significant financial difficulty of the debtor;
• A breach of contract such as a default or being more than 90 days past due;
• The restructuring of a loan or advance by the Group on terms that the Group would not consider otherwise;
• It is probable that the debtor will enter bankruptcy or other financial reorganisation; or
• The disappearance of an active market for a security because of financial difficulties.
40.14.4. Presentation of allowance for ECL in the statement of financial position
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets.
For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognised in OCI.
• Trade, notes receivables, debtors and other debit balances are stated at nominal value less impairment losses.
• The Company’s lessees and the leased assets are regularly classified & evaluated and their obligations are reduced by
the rent value paid in each financial period, and with the assurance of the availability of adequate guarantee to collect
the client’s rent values.
40.18. Cash and cash equivalents
For the purpose of preparing the statement of cash flows, cash and cash equivalents includes the balances, whose matu-
rity do not exceed three months from the date of acquisition, cash on hand, cheques under collection and due from banks
and financial institutions.
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Financial Statements 40.19. Profit sharing to employees
The holding company pays 10% of its cash dividends as profit sharing to its employees provided that it will not exceed total
employees’ annual salaries. Profit sharing is recognized as a dividend distribution through equity and as a liability when
approved by the Company’s shareholders.
40.20. Employees benefits
40.20.1. Share based payments
Equity settled transactions
For equity-settled share-based payment transactions, the company measure the services received, and the correspond-
ing increase in equity, indirectly, by reference to the fair value of the equity instruments granted. The fair value of those
equity instruments is measured at grant date.
Vesting conditions, other than market conditions, are taken into account by adjusting the number of equity instruments
included in the measurement of the transaction amount so that, ultimately, the amount recognized for services received
as consideration for the equity instruments granted are based on the number of equity instruments that eventually vest.
Hence, on a cumulative basis, no amount is recognized for services received if the equity instruments granted do not vest
because of failure to satisfy a vesting condition.
The company recognize an amount for the services received during the vesting period based on the best available esti-
mate of the number of equity instruments expected to vest and revise that estimate, if necessary, if subsequent informa-
tion indicates that the number of equity instruments expected to vest differs from previous estimates. On vesting date, the
entity shall revise the estimate to equal the number of equity instruments that ultimately vested
40.21. Micro-enterprises Receivables
40.21.1. Credit policy
Funding Consideration
• Funding are granted to clients who have previous experience not less than one year in his current activity which is
confirmed by the client with adequate documentation and field inquiry.
• Funding are granted to the client which it’s installment is suitable according to his predictable income activity and
this done throw analyzing client's revenues and expenses and his foreseeable marginal income, and this done by the
branches specialists of the company on the prepared form for this purpose(financial study form and credit decision).
• Before grant funding, a client activity field inquiry is done.
• Recording inquiries results about client and guarantor with inquiring forms of the company which reveal client’s activ-
40.22. Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease
if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a
lease in EAS 49.
40.22.1. As a lessee
At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration
in the contract to each lease component on the basis of its relative stand-alone prices. However, for the leases of property
the Group has elected not to separate non-lease components and account for the lease and non-lease components as a
single lease component.
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is
initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at
or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove
the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the
end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease
term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right-of-use
asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those
of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and
adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incre-
mental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.
The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources
and makes certain adjustments to reflect the terms of the lease and type of the asset leased.
Lease payments included in the measurement of the lease liability comprise the following:
fixed payments, including in-substance fixed payments;
ity (visit form & Inquiry form).
variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
• The company prohibit grant funding for new client unless the activity is existing with previous one year experience
where the granted funds be within a minimum 1 000 EGP and maximum 30 000 EGP with loan duration of 12 months.
• Inquiries for clients are performed by I-Score Company before granting and in case of approval on granting. The credit
limit of the client is considered when calculating the client’s revenue and expenses.
Client's Life Insurance
The insurance process on the client is performed with the authorized companies from insurance supervisory authority.
Client's Following up
The company keeps specialists in branches from following up all regular clients, and irregular with continuous application of that
during finance period with judging on their commitment in paying the remaining installments and this done through recording
visits for clients with daily basis and also with data base provided by computer system for all branches all over the republic.
Impairment loss of micro financed loans
The company at the date of the financial statements estimates the impairment loss of micro financed loans, in the light
of the basis and rules of granting credit and forming the provisions according to the Board of Directors decision of the
Financial Supervisory Authority No. (173) issued on December 21, 2014 to deal with the impairment loss.
amounts expected to be payable under a residual value guarantee; and the exercise price under a purchase option that the
Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to
exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to
terminate early.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a
change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the
amount expected to be payable under a residual value guarantee, if the Group changes its assessment of whether it will
exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the
right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The Group presents right-of-use assets that do not meet the definition of investment property in ‘property, plant and equip-
ment’ and lease liabilities in ‘loans and borrowings’ in the statement of financial position.
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Annual Report 2022 | EFG Hermes Holding | 181
Financial Statements Short-term leases and leases of low-value assets
The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low – value assets and
short-term leases, including IT equipment. The Group recognises the lease payments associated with these leases as an
expense on a straight-line basis over the lease term.
40.22.2. As a lessor
At inception or on modification of a contract that contains a lease component, the Group allocates the consideration in the
contract to each lease component on the basis of their relative stand- alone prices.
When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.
To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks
and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then
it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for
the major part of the economic life of the asset.
When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It as-
sesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with
reference to the underlying asset. If a head lease is a short-term lease to which the Group applies the exemption described
above, then it classifies the sub-lease as an operating lease.
If an arrangement contains lease and non-lease components, then the Group applies EAS 11 to allocate the consideration
in the contract.
The Group applies the derecognition and impairment requirements in EAS 47 to the net investment in the lease. The Group
further regularly reviews estimated unguaranteed residual values used in calculating the gross investment in the lease.
The Group recognises lease payments received under operating leases as income on a straight- line basis over the lease
term as part of ‘other revenue’.
40-23 Operating segment
A segment is a distinguishable component of the Group that is engaged either in providing products or services (business
segment) or in providing products or services within a particular economic environment (geographical segment), which
is subject to risks and rewards that are different from those of other segments. The Group’s primary format for segment
reporting is based on business segment.
New Editions and Amendments to Egyptian Accounting Standards:
41.
On March 6, 2023, the Prime Minister's Decree No. (883) of 2023 was issued amending some provisions of the Egyptian
Accounting Standards, the following is a summary of the most significant amendments:
New or reissued
standards
Summary of the most significant
amendments
Potential impact
on the financial
statements
Effective date
Egyptian Accounting
Standard No. (10)
amended 2023
"Fixed Assets " and
Egyptian Accounting
Standard No. (23)
amended 2023
"Intangible Assets".
Egyptian Accounting
Standard No. (34)
amended 2023
"Investment Egyptian
Accounting Standard
No. (36) amended
2023
Egyptian Accounting
Standard No. (36)
amended 2023
"Exploration for and
Evaluation of Mineral
Resources"
1- These standards were reissued in
2023, allowing the use of revaluation
model when subsequent measurement
of fixed assets and intangible assets.
2- This resulted in amendment of the
paragraphs related to the use of the
revaluation model option in some of
the applicable Egyptian Accounting
Standards, which are as follows:
- Egyptian Accounting Standard No.
(5) "Accounting Policies, Changes in
Accounting Estimates and Errors".
- Egyptian Accounting Standard No.
(24) "Income Taxes"
- Egyptian Accounting Standard No.
(30) "Interim Financial Reporting"
- Egyptian Accounting Standard No.
(31) "Impairment of Assets"
- Egyptian Accounting Standard No.
(49) "Leasing Contracts"
1- This standard was reissued in 2023,
allowing the use fair value model when
subsequent measurement of investment
property.
2- This resulted in amendment of some
paragraphs related to the use of the fair
value model option in some of the ap-
plicable Egyptian Accounting Standards,
which are as follows:
- Egyptian Accounting Standard No. (1)
"Presentation of Financial Statements"
- Egyptian Accounting Standard No.
(5) "Accounting Policies, Changes in
Accounting Estimates and Errors".
- Egyptian Accounting Standard No.
(13) "The Effects of Changes in Foreign
Exchange Rates"
- Egyptian Accounting Standard No.
(24) "Income Taxes"
- Egyptian Accounting Standard No.
(30) "Interim Financial Reporting "
- Egyptian Accounting Standard No.
(31) "Impairment of Assets"
- Egyptian Accounting Standard No.
(32) "Non-Current Assets Held for Sale
and Discontinued Operations"
- Egyptian Accounting Standard No.
(49) "Leasing Contracts"
1- This standard was reissued in 2023,
allowing the use of revaluation model
when subsequent measurement of
exploration and valuation assets.
2- The company applies either the
cost model or the revaluation model for
exploration and valuation assets, the
evaluation should carried out by experts
specialized in valuation and registered
in a register maintained for this purpose
at the Ministry of Petroleum, and in
the case of applying the revaluation
model (whether the model stated in
the Egyptian Accounting Standard (10)
"Fixed Assets " or the model stated
in Egyptian Accounting Standard (23)
"Intangible Assets") should consistent
with the classification of assets in
accordance with paragraph No. (15) of
Egyptian Accounting Standard No. (36)
amended 2023.
The amendments of adding the option to
use the revaluation model are effective
for financial periods starting on or after
January 1, 2023, retrospectively, cumula-
tive impact of the preliminary applying of
the revaluation model shall be added to
the revaluation surplus account in equity,
at the beginning of the financial period in
which the company applies this model
for the first time.
The amendments of adding the option
to use the fair value model are effective
for financial periods starting on or after
January 1, 2023 retrospectively, cumula-
tive impact of the preliminary applying of
the fair value model shall be added to the
balance of retained earnings or losses at
the beginning of the financial period in
which the company applies this model
for the first time.
The standard
has no impact
on the financial
statements.
The amendments of adding the option to
use the revaluation model are effective
for financial periods starting on or after
January 1, 2023, retrospectively, cumula-
tive impact of the preliminary applying of
the revaluation model shall be added to
the revaluation surplus account in equity,
at the beginning of the financial period in
which the company applies this model
for the first time.
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Annual Report 2022 | EFG Hermes Holding | 183
Financial Statements New or reissued
standards
Summary of the most significant
amendments
Potential impact
on the financial
statements
Effective date
Egyptian Accounting
Standard No. (35)
amended 2023
"Agriculture"
Egyptian Accounting
Standard No. (50)
“Insurance Contracts"
1- This standard was reissued in 2023,
where paragraphs (1-5), (8), (24), and (44)
were amended and paragraphs (5a) - (5c)
and (63) were added, with respect to
the accounting treatment of agricultural
produce harvested, (Egyptian Account-
ing Standard (10) "Fixed assets " was
amended accordingly).
2- The Company is not required to
disclose the quantitative information
required under paragraph 28(f) of
Egyptian Accounting Standard No. (5) for
the current period, which is the period
of the financial statements in which the
Egyptian Accounting Standard No. (35)
amended 2023 and Egyptian Accounting
Standard No. (10) amended 2023 are
applied for the first time in relation to
agricultural produce harvested. However,
the quantitative information required
under paragraph 28(f) of Egyptian
Accounting Standard No. (5) should be
disclosed for each comparative period
presented.
1- This standard determines the principles
of recognition of insurance contracts falling
within the scope of this standard, and
determines their measurement, presenta-
tion, and disclosure. The objective of the
standard is to ensure that the company
provides appropriate information that
truthfully reflects those contracts.
This information provides users of the
financial statements with the basis
for assessing the impact of insurance
contracts on the company’s financial
position, financial performance, and cash
flows.
2- Egyptian Accounting Standard
No. (50) replaces and cancels Egyptian
Accounting Standard No. 37 "Insurance
Contracts".
3- Any reference to Egyptian Account-
ing Standard No. (37) in other Egyptian
Accounting Standards to be replaced by
Egyptian Accounting Standard No. (50).
4- The following Egyptian Accounting
Standards have been amended to
comply with the requirements of the
application of Egyptian Accounting
Standard No. (50) "Insurance Contracts",
as follows:
- Egyptian Accounting Standard No.
(10) "Fixed Assets ".
- Egyptian Accounting Standard No.
(23) "Intangible Assets".
- Egyptian Accounting Standard No.
(34) " Investment property".
The standard
has no impact
on the financial
statements.
These amendments are effective for
annual financial periods starting on or
after January 1, 2023 retrospectively,
cumulative impact of the preliminary
applying of the accounting treatment
for agricultural produce harvested shall
be added to the balance of retained
earnings or losses at the beginning of the
financial period in which the company
applies this treatment for the first time.
Management
is currently
evaluating the
potential impact
on the financial
statements from
the application of
the standard.
Egyptian Accounting Standard No. (50)
is effective for annual financial periods
starting on or after July 1, 2024, and if the
Egyptian Accounting Standard No. (50)
shall be applied for an earlier period, the
company should disclose that fact.
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Financial Statements FUELING SYNERGIES
A N N U A L R E P O R T 2 0 2 2