EFG Hermes Holding S.A.E. (Egyptian Financial Group Hermes Holding Company) is an Egyptian

financial services Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companie ...

company present in the

Middle East The Middle East ( ar, الشرق الأوسط, ISO 233: ) is a geopolitical region commonly encompassing Arabia (including the Arabian Peninsula and Bahrain), Asia Minor (Asian part of Turkey except Hatay Province), East Thrace (Europ ...

North Africa North Africa, or Northern Africa is a region encompassing the northern portion of the African continent. There is no singularly accepted scope for the region, and it is sometimes defined as stretching from the Atlantic shores of Mauritania in t ...

, Sub-Saharan Africa, and

South Asia South Asia is the southern subregion of Asia, which is defined in both geographical and ethno-cultural terms. The region consists of the countries of Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.;;;;; ...

regions and specializes in

securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any fo ...

brokerage A broker is a person or firm who arranges transactions between a buyer and a seller for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be conf ...

asset management Asset management is a systematic approach to the governance and realization of value from the things that a group or entity is responsible for, over their whole life cycles. It may apply both to tangible assets (physical objects such as buildings ...

investment banking Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated with ...

private equity In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a typ ...

and research in addition to

finance lease A finance lease (also known as a capital lease or a sales lease) is a type of lease in which a finance company is typically the legal owner of the asset for the duration of the lease, while the lessee not only has operating control over the asset, ...

, factoring, microfinance,

Financial technology Fintech, a portmanteau of "financial technology", refers to firms using new technology to compete with traditional financial methods in the delivery of financial services. Artificial intelligence, blockchain, cloud computing, and big data are ...

mortgage A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any pu ...

, and

insurance Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...

. EFG Hermes serves a range of clients including sovereign

wealth fund A sovereign wealth fund (SWF), sovereign investment fund, or social wealth fund is a state-owned investment fund that invests in real and financial assets such as stocks, Bond (finance), bonds, real estate, precious metals, or in alternative inve ...

endowment Endowment most often refers to: *A term for human penis size It may also refer to: Finance *Financial endowment, pertaining to funds or property donated to institutions or individuals (e.g., college endowment) *Endowment mortgage, a mortgage to b ...

s, corporations,

financial institution Financial institutions, sometimes called banking institutions, are business entities that provide services as intermediaries for different types of financial monetary transactions. Broadly speaking, there are three major types of financial inst ...

s, high-net-worth clients and individual customers. EFG Hermes is listed on the

Egyptian Exchange The Egyptian Exchange (EGX), Egypt's stock exchange, comprises two exchanges, Cairo and Alexandria, both governed by the same board of directors and sharing the same trading, clearing and settlement systems. Presently, the chairman of the Egyptia ...

(EGX) and

London London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...

(LSE) stock exchanges. EFG Hermes has offices in

Egypt Egypt ( ar, مصر , ), officially the Arab Republic of Egypt, is a transcontinental country spanning the northeast corner of Africa and southwest corner of Asia via a land bridge formed by the Sinai Peninsula. It is bordered by the Med ...

, the

United Arab Emirates The United Arab Emirates (UAE; ar, اَلْإِمَارَات الْعَرَبِيَة الْمُتَحِدَة ), or simply the Emirates ( ar, الِْإمَارَات ), is a country in Western Asia ( The Middle East). It is located at ...

(UAE), the

Kingdom of Saudi Arabia Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the fifth-largest country in Asia, the second-largest in the A ...

(KSA),

Pakistan Pakistan ( ur, ), officially the Islamic Republic of Pakistan ( ur, , label=none), is a country in South Asia. It is the world's List of countries and dependencies by population, fifth-most populous country, with a population of almost 24 ...

Oman Oman ( ; ar, عُمَان ' ), officially the Sultanate of Oman ( ar, سلْطنةُ عُمان ), is an Arabian country located in southwestern Asia. It is situated on the southeastern coast of the Arabian Peninsula, and spans the mouth of ...

Kuwait Kuwait (; ar, الكويت ', or ), officially the State of Kuwait ( ar, دولة الكويت '), is a country in Western Asia. It is situated in the northern edge of Eastern Arabia at the tip of the Persian Gulf, bordering Iraq to the no ...

Jordan Jordan ( ar, الأردن; tr. ' ), officially the Hashemite Kingdom of Jordan,; tr. ' is a country in Western Asia. It is situated at the crossroads of Asia, Africa, and Europe, within the Levant region, on the East Bank of the Jordan Ri ...

Kenya ) , national_anthem = " Ee Mungu Nguvu Yetu"() , image_map = , map_caption = , image_map2 = , capital = Nairobi , coordinates = , largest_city = Nairobi , ...

Nigeria Nigeria ( ), , ig, Naìjíríyà, yo, Nàìjíríà, pcm, Naijá , ff, Naajeeriya, kcg, Naijeriya officially the Federal Republic of Nigeria, is a country in West Africa. It is situated between the Sahel to the north and the Gulf of G ...

, UK,

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., federal district, five ma ...

and

Bangladesh Bangladesh (}, ), officially the People's Republic of Bangladesh, is a country in South Asia. It is the List of countries and dependencies by population, eighth-most populous country in the world, with a population exceeding 165 million pe ...

with over 4,500 people from 25 nationalities. They serve clients from the

Europe Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a subcontinent of Eurasia and it is located enti ...

and the

History

EFG, also known as the Egyptian Financial Group, became the first

firm in

when it was established by Dr Mohamed Taymour in 1984. Hermes was founded in 1993 under the newly promulgated Capital Markets Law 95. EFG created and analyzed

privatization Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...

plans for the Egyptian government for several years. In 1993, The Egyptian Financial Group and Hermes independently made a move into securities brokerage. The two companies competed and both companies brought many investment strategies that were common to the west to

as several of the two firm's founders had Wall Street experience in corporate finance, sales & trading and asset management;, for example Hermes established the first

equity index In finance, a stock index, or stock market index, is an index that measures a stock market, or a subset of the stock market, that helps investors compare current stock price levels with past prices to calculate market performance. Two of the p ...

in all of Egypt. In 1994, both Egyptian Financial Group and Hermes entered into

. Fueled by

organic growth Organic business growth is related to the growth of natural systems and organisms, societies and economies, as a dynamic organizational process, that for business expansion is marked by increased output, customer base expansion, or new product deve ...

; the two firms also accounted for lead managing a majority of the privatization capital markets IPO's during 1995 and 1996. The two companies soon reached the point that further growth was not possible without a wider network of local and international clients on one hand, as well as the rising competitive threat of international investment banks in the progressively more active Egyptian market in terms of investment banking privatization transactions as well as higher trading volumes . These factors led to a merger in 1996 between EFG and Hermes.

Financial Performance

For the year 2021, EFG Hermes Holding has posted

profit after tax In business and accounting, net income (also total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales) is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, ...

(PAT) of along with group’s top line surpassing the .

Structure

EFG Hermes has five Divisions and six subsidiaries under its finance platform

Securities Brokerage

EFG Hermes Securities Brokerage is the leading brokerage house in the Arab world. With the region's largest brokerage team, the division caters to an extended spectrum of investors including foreign, local and Gulf institutions as well as individual, VIP, high-net-worth individuals and family offices. The division's products and services range from trading services including phone trading, online trading, SWAP/P-Note products trading and margin lending for Egyptian retail investors.

Asset Management

EFG Hermes Asset Management serves a client base that includes sovereign wealth funds, endowments, foundations,

multinational corporation A multinational company (MNC), also referred to as a multinational enterprise (MNE), a transnational enterprise (TNE), a transnational corporation (TNC), an international corporation or a stateless corporation with subtle but contrasting senses, i ...

s and family offices. The division employs professionals in portfolio management, trading, research, compliance and risk across its 3 locations in Egypt,

UAE The United Arab Emirates (UAE; ar, اَلْإِمَارَات الْعَرَبِيَة الْمُتَحِدَة ), or simply the Emirates ( ar, الِْإمَارَات ), is a country in Western Asia (The Middle East). It is located at th ...

(Dubai) and

Saudi Arabia Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the List of Asian countries by area, fifth-largest country in Asia ...

. The division has consistently delivered superior returns across its broad and diverse product spectrum.

Private Equity

EFG Hermes Private Equity is a private equity house, with a presence in Cairo and Dubai. The division is focused on attractive investment opportunities that capitalise on different opportunities in and outside the MENA region. EFG Hermes Private Equity advised InfraMed, the largest investment vehicle dedicated to infrastructure investments in the Southern and Eastern Mediterranean. The firm was also one of five global and regional founding sponsors that together contributed EUR 385 million to establish InfraMed. In late 2014, EFG Hermes launched Vortex - its renewable energy vehicle - to invest in solar and wind energy projects across Europe and Asia.

Investment Banking

EFG Hermes Investment Banking is an advisor for major M&A, debt and equity transactions. The division's investment professionals have advised on cross-border transactions in the region through a distribution network that encompasses more than 100 investors across North America, Europe, the Middle East and Africa. The Investment Banking team has completed some US$53.3 billion in M&A transactions since 1985 while raising more than US$19 million through initial public offerings, rights issues, secondary offerings and private placements in the same period.

Research

EFG Hermes Research division offers its clients coverage of MENA markets, including more than 150 companies representing c. 60% of the region's aggregate market capitalisation. The team offers economics and strategy coverage of 11 key countries in the Arab world. Products include equity research, strategy and macro-strategy notes, sector overviews, economic notes, industrial research and country-specific economic and banking data reports.

Strategy

EFG Hermes global strategy relies heavily on expanding in frontier emerging markets FEM. Therefore, the company has made its priority to enter into the major financial hubs of the Middle-East, namely

, the

Qatar Qatar (, ; ar, قطر, Qaṭar ; local vernacular pronunciation: ), officially the State of Qatar,) is a country in Western Asia. It occupies the Qatar Peninsula on the northeastern coast of the Arabian Peninsula in the Middle East; it ...

and

Lebanon Lebanon ( , ar, لُبْنَان, translit=lubnān, ), officially the Republic of Lebanon () or the Lebanese Republic, is a country in Western Asia. It is located between Syria to Lebanon–Syria border, the north and east and Israel to Blue ...

. Further expansions focused on key African financial hubs such as

Kenya ) , national_anthem = " Ee Mungu Nguvu Yetu"() , image_map = , map_caption = , image_map2 = , capital = Nairobi , coordinates = , largest_city = Nairobi , ...

as a hub for

East Africa East Africa, Eastern Africa, or East of Africa, is the eastern subregion of the African continent. In the United Nations Statistics Division scheme of geographic regions, 10-11-(16*) territories make up Eastern Africa: Due to the histori ...

and

as a hub for

West Africa West Africa or Western Africa is the westernmost region of Africa. The United Nations defines Western Africa as the 16 countries of Benin, Burkina Faso, Cape Verde, The Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Liberia, Mali, Mau ...

United Arab Emirates

EFG Hermes launched its brokerage activities in the UAE in early 2005, and by early 2007 had captured dominant market share on

Dubai Dubai (, ; ar, دبي, translit=Dubayy, , ) is the most populous city in the United Arab Emirates (UAE) and the capital of the Emirate of Dubai, the most populated of the 7 emirates of the United Arab Emirates.The Government and Politics ...

Financial Market. The firm is also the top ranked broker on the

Abu Dhabi Securities Market Abu Dhabi Securities Exchange (A.D.X.; formerly Abu Dhabi Securities Market (ADSM); ar, سوق أبو ظبي للأوراق المالية) is a stock exchange in Abu Dhabi, United Arab Emirates (UAE). Listed companies by sector List provided by ...

Dubai Financial Market The Dubai Financial Market (DFM) ( ar, سوق دبي المالي) is a stock exchange located in Dubai, United Arab Emirates. It was founded on 26 March 2000. Overview , there are 67 companies listed on DFM. Most of them are UAE-based companie ...

and Nasdaq Dubai. In December 2005, EFG Hermes was granted a license by the

Dubai International Financial Centre The Dubai International Financial Centre (DIFC) is a special economic zone in Dubai covering , established in 2004 as a financial hub for companies operating throughout the Middle East, Africa and South Asia (MEASA) markets. DIFC is regulated by ...

to conduct asset management and investment banking activities. EFG Hermes UAE is regulated in this capacity by the

Dubai Financial Services Authority The Dubai Financial Services Authority (DFSA) is the financial regulatory agency of the special economic zone, the Dubai International Financial Centre (DIFC), In Dubai, United Arab Emirates. It is distinct from the UAE's federal Securities and Co ...

, an independent regulatory authority that operates to the standards of major financial centers such as

and

New York City New York, often called New York City or NYC, is the most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the most densely populated major city in the U ...

. Out of

, the firm manages the region's top performing funds and has closed a number of landmark investment banking transactions. In February 2006, EFG Hermes UAE was also granted a license to conduct brokerage activities from within the Dubai International Financial Centre and became the first regional trading, clearing and custody member of the Dubai International Financial Exchange, its wholesale exchange.

Kingdom of Saudi Arabia

EFG Hermes was granted a license from the

Capital Market Authority (Saudi Arabia) The Capital Market Authority (CMA; ar, هيئة السوق المالية) is the Saudi governments financial regulatory authority responsible for capital markets in Saudi Arabia. The CMA is a government organization applying full financial, leg ...

to launch its operations in the

in March 2007 offering securities brokerage, investment banking, asset management and research services in the largest investment market in the region. The brokerage arm reached the #1 position among the 12 independent brokerage companies, despite having started trading properly only in the third quarter of 2007.

Pakistan

EFG Hermes, inaugurated its office in Pakistan, making it the first foreign investment bank to directly enter the market since 2008 and the first foreign broker to have a local footprint in the country. The opening followed the firm's acquisition of Pakistani brokerage Invest and Finance Securities Ltd., which began operating as EFG Hermes Pakistan Limited.

Oman

In April 2008, EFG Hermes acquired 51% of

Vision Securities Vision, Visions, or The Vision may refer to: Perception Optical perception * Visual perception, the sense of sight * Visual system, the physical mechanism of eyesight * Computer vision, a field dealing with how computers can be made to gain und ...

at a

PE ratio Pe may refer to: Physical education Language * Pe language * Pe (Cyrillic), a letter (П) in the Cyrillic alphabet * Pe (Semitic letter), a letter (פ ,ف, etc.) in several Semitic alphabets ** Pe (Persian letter), a letter (پ) in the Arabic al ...

of 11.5 compared to EFG Hermes’ PE ratio of 16.6. EFG Hermes has long since accounted for substantial flows into the

Omani Oman ( ; ar, عُمَان ' ), officially the Sultanate of Oman ( ar, سلْطنةُ عُمان ), is an Arabian country located in southwestern Asia. It is situated on the southeastern coast of the Arabian Peninsula, and spans the mouth of t ...

market on behalf of its foreign institutional clients, and is able to serve a broader base of clients from its presence on the ground in

Kuwait

EFG Hermes IFA, the brokerage arm of EFG Hermes in Kuwait, is a brokerage firm on the

Kuwait Stock Exchange Boursa Kuwait Securities Co., is the private-sector corporate owner and operator of the Kuwait Stock Exchange (KSE), the national stock market of Kuwait. History Although several share holding companies (such as National Bank of Kuwait (NBK) in ...

(KSE) with a client base including a wide array of retail, VIP and high-net-worth clients, as well as local, regional, and international institutional investors. EFG Hermes IFA provides the full range of brokerage services including an online trading platform. The firm has maintained its position as the top brokerage firm in Kuwait.

Jordan

Since inception, EFG Hermes Jordan has maintained a client base of around 6,000 investors by the end of 1H2017 ranging from retail, VIP, high net worth clients, local and regional institutions as well as foreign institutional investors. The firm offers its client base access to senior and executive management teams of publicly listed companies, promoting a business-friendly climate in Jordan. Moreover, EFG Hermes Jordan is the only local broker that has the support of a large and dedicated research division that publishes thorough fundamental analysis, sector analysis and strategy reports on the country and the market. Currently, the research team covers five of the largest listed companies that represent a market capitalization of 45%.

Kenya

EFG Hermes Kenya launched its operations in 2017, being the firm’s first foray into Sub-Saharan Africa in a step that will serve as an East African hub into more neighboring markets. The company provides securities brokerage, research and corporate advisory services spanning Kenya and neighboring markets.

Nigeria

In 2018, EFG Hermes expanded its global presence into the largest economy in West Africa through the acquisition of Primera Africa Securities Limited, now EFG Hermes Nigeria Limited. EFG Hermes Nigeria is licensed by the Securities and Exchange Commission and the Nigerian Stock Exchange to carry out brokerage and research coverage services.

United States

EFG Hermes USA, Inc. is a subsidiary of EFG Hermes Holding and is a member of FINRA and SIPC. The office was established to serve Western institutional clients residing in North America and provides coverage of 75 frontier emerging markets (FEM) or 100% of FTSE's FEM index to its clients.

Bangladesh

EFG Hermes Bangladesh was inaugurated as rep office in Dhaka, the capital city of Bangladesh, to serve the firm’s network of global institutional clients. The addition of Bangladesh to the firm’s frontier platform came as part of EFG Hermes’ drive to expand representation in high-potential frontier emerging markets.

Vietnam

EFG Hermes entered an agreement in 2019 with ACBS - the securities brokerage arm of ACB

Asia Commercial Bank Asia Commercial Bank, often abbreviated to ACB, is the largest private bank in Vietnam by assets, headquartered at 442 Nguyễn Thị Minh Khai, Ward 5, District 3, Ho Chi Minh City. It was registered on 19 May 1993 and began operations in June 19 ...

Vietnam Vietnam or Viet Nam ( vi, Việt Nam, ), officially the Socialist Republic of Vietnam,., group="n" is a country in Southeast Asia, at the eastern edge of mainland Southeast Asia, with an area of and population of 96 million, making it ...

to offer its clients on-ground access to the local capital markets.

References

External links

Abraaj Capital. Investor Relations. Retrieved September 28, 2006Arab Decision, Egypt, other Financial Institutions
* ttp://www.ameinfo.com/88697.html Ameinfo. UAE retail investors moving online as market grows*American University. Sources and links. Retrieved September 1, 2006
Bank Audi. Jordanian Economic Report. Retrieved August 29, 2006Center for administrative Innovation in the Euro-Mediterranean Region. Jordan Administrative Reform, Innovation and Maintenance

Central Intelligence Agency (2004). The World Fact Book. Retrieved on October 3, 2006

EFG Hermes. Investor Relations. Retrieved on September 14, 2006Library of Congress, Federal Research Division, Country Studies. Jordan. Retrieved October 3, 2006Moussa Najla. Abraaj Capital makes offer on EFG Hermes Shares. Retrieved November 20, 2006

2006 Jordan

Index of Economic Freedom The ''Index of Economic Freedom'' is an annual index and ranking created in 1995 by The Heritage Foundation and '' The Wall Street Journal'' to measure the degree of economic freedom in the world's nations. The creators of the index claim to ...

The Heritage Foundation The Heritage Foundation (abbreviated to Heritage) is an American conservative think tank based in Washington, D.C. that is primarily geared toward public policy. The foundation took a leading role in the conservative movement during the preside ...

, Retrieved August 29, 2006
Saban Center for Middle East Policy. Luncheon Address: Suhair Al-Ali. Retrieved October 17, 2006, from Miller Reporting Co
{{DEFAULTSORT:Efg-Hermes Holding Company Financial services companies established in 1984 Banks established in 1984 Investment banks Private equity firms of the Middle East Conglomerate companies of Egypt