/Equities/XLON/EFGD/RNS

FY2021 Consolidated Financial Statements- IFRS

RNS Number : 9254J

EFG-Hermes Holdings SAE

29 April 2022

EFG Hermes Reports IFRS Consolidated Financial Statements for the Year Ended 31 December 2021

For the full financial Statements please click on the below link:

http://www.rns-pdf.londonstockexchange.com/rns/9254J_1-2022-4-29.pdf

Consolidated statement of financial position

As at December 31, 2021

(In EGP)		31/12/2021	31/12/2020	01/01/2020
	Note
Assets
Cash and cash equivalents	5	30,876,257,819	7,397,790,093	9,984,123,272
Funded facilities to customers	8	10,081,007,385	8,189,679,143	5,925,245,600
Banking loans and facilities (aiBank)	8.1	9,544,916,760	-	-
Accounts receivable	7	5,611,375,904	4,734,488,970	4,521,946,503
Investments at fair value through profit and loss	6	8,002,539,778	5,744,078,663	7,880,915,409
Investments at fair value through OCI	9	16,820,480,365	10,097,642,055	13,602,999,007
Investments at amortized cost	12	10,050,278,918	-	-
Assets held for sale	11	305,541,145	59,640,898	-
Equity accounted investees	10	461,315,552	103,095,770	55,000,000
Investment property	13	125,529,472	132,074,502	205,498,422
Property and equipment	14	999,401,918	651,958,068	667,411,332
Goodwill and other intangible assets	15	1,107,396,952	984,353,914	999,077,802
Deferred tax assets	22	47,607,209	24,995,255	87,035,205
Other assets	16	2,561,079,667	621,212,320	524,534,183
Total assets		96,594,728,844	38,741,009,651	44,453,786,735



Liabilities
Due to banks and financial institutions	17	17,736,580,111	9,235,466,908	10,427,808,365
Customer deposits	18	38,564,737,371	-	-
Loan and borrowings	24	5,501,069,487	4,117,731,698	3,504,291,832
Creditors and other credit balances	21	3,157,995,391	2,408,136,351	2,399,822,189
Accounts payable - customers credit balance at fair value through profit and loss	19	3,890,060,348	2,022,981,775	5,086,573,832
Accounts payable - customers credit balances		8,537,833,096	5,486,303,627	7,677,341,560
Short term bonds	20	550,000,000	500,000,000	400,000,000
Provisions	23	690,001,941	566,956,651	569,382,887
Current tax liability		363,572,503	164,219,351	189,128,550
Deferred tax liabilities	22	296,588,621	301,270,105	211,537,049
Total liabilities		79,288,438,869	24,803,066,466	30,465,886,264

Equity
Share capital	25	4,865,353,355	3,843,091,115	3,843,091,115
Legal reserve		840,272,556	833,933,867	803,102,208
Share premium		1,668,623,811	1,922,267,826	1,922,267,826
Other reserves		783,420,592	791,823,872	2,060,243,837
Retained earnings		6,390,395,096	6,235,979,897	5,002,324,179
Equity attributable to owners of the Group		14,548,065,410	13,627,096,577	13,631,029,165
Non - controlling interests	26	2,758,224,565	310,846,608	356,871,306
Total equity		17,306,289,975	13,937,943,185	13,987,900,471
Total liabilities and equity		96,594,728,844	38,741,009,651	44,453,786,735

These financial statements were approved and authorised for issue on 29 April 2022 and signed by:

Mona Zulficar

Chairperson

Karim Awad

Group Chief Executive Officer

The accompanying notes form an integral part of these consolidated financial statements.

Consolidated statement of profit or loss

For the year ended December 31, 2021

(In EGP)		For the year ended
		31/12/2021	31/12/2020
	Note

Interest income	32	4,416,355,205	2,894,539,255
Interest expense	32	(1,831,314,272)	(1,077,889,450)
Net interest income		2,585,040,933	1,816,649,805
Fee and commission income	32	3,395,050,747	2,742,568,431
Fee and commission expense	32	(344,114,579)	(271,609,375)
Net fee and commission income		3,050,936,168	2,470,959,056
Securities (loss) gains for investments at fair value through profit and loss	32	(7,302,092)	371,758,025
Changes in the fair value of investments at fair value through profit and loss	32	(76,153,571)	576,420,133
Dividend income	32	31,853,072	39,543,674
Other revenues	28	146,867,227	126,552,995
Net gains on dereceognition of financial assets measured at amortized cost	32	88,347,943	13,542,181
Impairment loss on financial assets - net of recoveries	29	(137,995,100)	(294,566,570)
Foreign currencies exchange differences	32	234,140,416	(15,282,497)
Gains on selling assets held for sale	32	3,864,407	-
Share of loss from equity accounted investees	32	(14,173,369)	(4,237,980)
Operating income		5,905,426,034	5,101,338,822

General and administrative expenses	31	(3,796,051,268)	(3,251,986,101)
Financial guarantee provision	23	(5,673,313)	(10,079,751)
Impairment loss on goodwill and intangible assets	32	(16,034,698)	(5,921,804)
Impairment loss on investment property		-	(3,384,491)
Provisions	23	(96,968,478)	(32,475,067)
Depreciation and amortisation	13,14,15	(193,664,511)	(171,143,524)
Profit before tax		1,797,033,766	1,626,348,084
Income tax expense	30	(350,786,930)	(329,046,528)
Profit for the year		1,446,246,836	1,297,301,556
Profit attributable to:
Owners of the Group		1,329,283,838	1,264,551,960
Non- controlling interests		116,962,998	32,749,596
		1,446,246,836	1,297,301,556

Basic earnings per share (EGP)	34	1.57	1.41
Dilluted earnings per share (EGP)	34	1.49	1.41

The accompanying notes form an integral part of these consolidated financial statements.

Consolidated statement of comprehensive income

For the year ended December 31, 2021

(In EGP)		For the year ended
		2021	2020

Profit for the year		1,446,246,836	1,297,301,556
Other comprehensive income:
Items that may be reclassified to profit or loss
Foreign operations - foreign currency translation differences		(15,450,147)	(96,787,059)
Foreign currency translation differences - reclassified to profit or loss		(167,306,760)	(32,212,643)
Net losses on investments in debt instruments at fair value through OCI - net change in fair value		(10,639,480)	(625,405,385)
Investments at fair value through OCI - net change in fair value - reclassified to profit or loss		34,043,158	(474,568,773)
Related tax	22	(930,181)	12,221,624
Items that will not be reclassified to profit or loss
Investment at fair value through OCI - reclassified to Retained Earnings		(15,659)	(2,176,473)
Net gains (losses) on investments in equity instruments designated at fair value through OCI - net change in fair value -		10,802,502	(52,867,403)
Actuarial gain (loss) re-measurement of employees' benefits obligations	23	971,076	(2,002,429)
Other comprehensive income, net of tax		(148,525,491)	(1,273,798,541)
Total comprehensive income		1,297,721,345	23,503,015

Total comprehensive income attributable to:
Owners of the Group		1,172,204,692	(5,870,434)
Non - controlling interests		125,516,653	29,373,449
		1,297,721,345	23,503,015

The accompanying notes form an integral part of these consolidated financial statements.

Consolidated statement of changes in equity

For the year ended December 31, 2021

(In EGP)	Share capital	Legal reserve	Share premium	General reserve	Translation reserve	Fair value reserve	Employee stock Ownersip plan reserve	Hedging reserve	Retained earnings	Total	Non-controlling interest	Total Equity

Balance as at 31 December 2019, as previously reported	3,843,091,115	803,102,208	1,922,267,826	158,269	2,119,175,070	665,788,125	-	(26,442,387)	4,330,582,531	13,657,722,757	362,757,134	14,020,479,891
Effect of change in accounting policies	-	-	-	-	-	(724,877,627)	-	26,442,387	671,741,648	(26,693,592)	(5,885,828)	(32,579,420)
Balance as at 1 January 2020	3,843,091,115	803,102,208	1,922,267,826	158,269	2,119,175,070	(59,089,502)	-	-	5,002,324,179	13,631,029,165	356,871,306	13,987,900,471
Profit	-	-	-	-	-	-	-	-	1,264,551,960	1,264,551,960	32,749,596	1,297,301,556
Other comprehensive income	-	-	-	-	(126,465,076)	(1,141,954,889)	-	-	174,044	(1,268,245,921)	(3,376,147)	(1,271,622,068)
Total comprehensive income	-	-	-	-	(126,465,076)	(1,141,954,889)	-	-	1,264,726,004	(3,693,961)	29,373,449	25,679,488

Transactions with owners of the Group
Contributions and distributions
Dividends	-	-	-	-	-	-	-	-	-	-	(79,164,760)	(79,164,760)
Transferred to legal reserve	-	30,831,659	-	-	-	-	-	-	(30,831,659)	-	-	-
Changes in ownership interests
Changes in ownership interests without a change in control	-	-	-	-	-	-	-	-	(238,627)	(238,627)	3,766,613	3,527,986
Balance as at 31 December 2020	3,843,091,115	833,933,867	1,922,267,826	158,269	1,992,709,994	(1,201,044,391)	-	-	6,235,979,897	13,627,096,577	310,846,608	13,937,943,185

Balance as at 31 December 2020	3,843,091,115	833,933,867	1,922,267,826	158,269	1,992,709,994	(1,201,044,391)	-	-	6,235,979,897	13,627,096,577	310,846,608	13,937,943,185
Effect of change in accounting policies on 1 January 2021
Adjustment	-	-	-	-	-	-	-	-	(4,099,065)	(4,099,065)	-	(4,099,065)
Balance as at 1 January 2021	3,843,091,115	833,933,867	1,922,267,826	158,269	1,992,709,994	(1,201,044,391)	-	-	6,231,880,832	13,622,997,512	310,846,608	13,933,844,120

The accompanying notes form an integral part of these consolidated financial statements.

Consolidated statement of changes in equity (continued)

For the year ended December 31, 2021

(In EGP)	Share capital	Legal reserve	Share premium	General reserve	Translation reserve	Fair value reserve	Employee stock Ownersip plan reserve	Hedging reserve	Retained earnings	Total	Non-controlling interest	Total Equity
Total comprehensive income
Profit	-	-	-	-	-	-	-	-	1,329,283,838	1,329,283,838	116,962,998	1,446,246,836
Other comprehensive income	-	-	-	-	(182,139,923)	24,089,701	-	-	986,735	(157,063,487)	8,553,655	(148,509,832)
Total comprehensive income	-	-	-	-	(182,139,923)	24,089,701	-	-	1,330,270,573	1,172,220,351	125,516,653	1,297,737,004

Transactions with owners of the Group
Contributions and distributions
Dividends	768,618,225	-	-	-	-	-	-	-	(768,618,225)	-	-	-
Transferred to share capital	253,644,015	-	(253,644,015)	-	-	-	-	-	-	-	-	-
Transferred to legal reserve	-	6,338,689	-	-	-	-	-	-	(6,338,689)	-	-	-
Employee stock ownership plan (ESOP)	-	-	-	-	-	-	149,646,942	-	-	149,646,942	-	149,646,942
Changes in ownership interests
Changes in ownership interests without a change in control	-	-	-	-	-	-	-	-	(396,799,395)	(396,799,395)	(18,077,004)	(414,876,399)
Share of NCI in the increase/(decrease) of subsidiaries paid- in capital	-	-	-	-	-	-	-	-	-	-	2,339,938,308	2,339,938,308
Balance as at 31 December 2021	4,865,353,355	840,272,556	1,668,623,811	158,269	1,810,570,071	(1,176,954,690)	149,646,942	-	6,390,395,096	14,548,065,410	2,758,224,565	17,306,289,975

The accompanying notes form an integral part of these consolidated financial statements.

Consolidated statement of cash flows

For the year ended December 31, 2021

(In EGP)		For the year ended
		2021	2020
	Note
Cash flows from operating activities
Profit before income tax		1,797,033,766	1,626,348,084
Adjustments for:
Depreciation and amortisation	13,14	193,664,511	171,143,524
Provisions formed	23	102,641,791	42,554,818
Provisions used	23	(123,453,932)	(8,684,029)
Provisions reversed	23	(54,802,383)	(35,255,180)
Gains on sale of property and equipment	14	(14,668,983)	(836)
Gains from Securitization		(66,016,939)	-
Gains (loss) on sale of investment at fair value through OCI	9	34,043,538	(474,568,773)
Gains on sale of assets held for sale	11	(3,864,407)	-
Amortization of premium/ issue discount		(30,974,345)	-
Changes in the fair value of investments at fair value through profit and loss	32	76,153,571	(576,420,133)
Share of loss of equity-accounted investees	32	14,173,369	4,237,980
Impairment loss on assets		154,029,798	303,872,865
Share-based payment	31	149,646,948	-
Foreign currency translation differences		(17,442,997)	(27,818,033)
Foreign currencies exchange differences		(234,140,416)	15,282,496
Operating cash flows before changes in working captial		1,976,022,890	1,040,692,783

Changes in working capital:
Other assets	16	(504,813,017)	(53,187,325)
Creditors and other credit balances	21	52,887,549	94,960,732
Accounts receivable	7	(916,774,492)	(258,963,589)
Accounts payable - customers credit balances		3,047,194,580	(1,995,952,225)
Accounts payable - customers credit balance at fair value through profit and loss	19	1,867,078,573	(3,063,592,057)
Funded facilities to customers	8	(2,935,999,896)	(2,477,553,478)
Due from banks	5	(5,583,297,532)	-
Due to banks	17	(304,852,380)	-
Customers deposits		(1,242,670,248)	-
Investments at fair value through profit and loss	6	(2,302,120,418)	2,208,024,926
Income tax paid		(233,489,679)	(173,872,403)
Net cash used in from operating activities		(7,080,834,070)	(4,679,442,636)

Cash flows from investing activities
Payments to purchase property and equipment and other intangible assets		(97,448,606)	(101,158,922)
Proceeds from sale of property and equipment	14	19,391,892	152,699
Proceeds from sale of assets held for sale	11	120,045,492	-
Proceeds from sale of investment at fair value through OCI	9	24,130,051,252	17,567,402,835
Payments to purchase investment at fair value through OCI	9	(20,306,019,053)	(14,767,315,832)
Payments to purchase investment in subsidiaries		(2,965,924,996)	-
Payments to purchase equity accounted investees	10	(17,982,500)	(52,333,749)
Dividends collected		8,583,669	-
Cash from acquisition of subsidiaries		2,382,473,653	-
Net cash used in investing activities		3,273,170,803	2,646,747,031

The accompanying notes form an integral part of these consolidated financial statements.

Consolidated statement of cash flows (continued)

For the year ended December 31, 2021

(In EGP)		For the year ended
		2021	2020
	Note

Cash flows from financing activities
Dividends paid		-	(89,377,959)
Proceeds from securitization transactions		1,112,500,000	-
Proceeds from short term bonds	20	550,000,000	500,000,000
Payment for short term bonds	20	(500,000,000)	(400,000,000)
Proceeds from / Payment for financial institutions		3,619,102,552	(2,563,764,366)
Proceeds from loans and borrowings	24	2,178,924,870	1,538,044,191
Payment for loans and borrowings	24	(904,202,493)	(981,195,693)

Net cash generated from (used in) financing activities activities	6,056,324,929	(1,996,293,827)

Net increase/(decrease) in cash and cash equivalents	2,248,661,662	(4,028,989,432)

Cash and cash equivalents at 1 January	5	2,443,779,733	6,405,620,232
Effect of exchange rate	5	21,918,767	67,148,933
Cash and cash equivalents at 31 December	5	4,714,360,162	2,443,779,733

For further information:

Investor Relations Department

Email: [email protected]

Tel: +20 (0)2 35356710

Fax: +20 (0)2 3535 7017

Head of IR, Budgeting and Reporting - Hanzada Nessim

Email: [email protected]

Tel: +20 (0)2 35356502

Fax: +20(0)2 3535 7017

www.efg-hermes.com

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END

FR BXGDSLXDDGDC

Date	29 Apr 2022
Time	14:41:02
Category	Results
ID	9254J

Date	29 Apr 2022
Time	14:41:02
Category	Results
ID	9254J

t

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FY2021 Consolidated Financial Statements- IFRS

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