​EFG Hermes released its earnings results for the first nine months of 2008, its first since the Middle East began feeling the effect of the credit and liquidity crunch in Western markets. (Click here to download the latest earnings release) In the first nine months of the year, the firm reported total consolidated revenues of EGP 2.1 billion, up 37.5% over the same period last year. As global economic challenges spilled over into regional markets, the firm’s 3Q 08 consolidated revenues grew a more modest 6.2% to EGP 576.5 million; that figure represents a 33.8% dip compared with 2Q 08. Meanwhile, net profit after tax and minority interest rose 2.8% to EGP 913.8 million in 9M 08 compared to EGP 889.2 million in the same period last year, with a 59.8% profit margin when the accrual of bonuses is excluded. (The firm’s accounting policies now allow the monthly accrual of bonuses). “There is no question these are challenging times for regional markets,” says EFG Hermes chief executive officer (CEO) Yasser El-Mallawany. “That said, the Middle East’s macroeconomic fundamentals are as very sound. Look no further than the International Monetary Fund’s latest projections for 2009, which forecast 5.9% growth in the region against just 2.2% growth globally.” Core revenue drivers for 9M 08 included brokerage (46.8% of total operating revenues), asset management (29.7%), investment banking (15.5%) and private equity (5.4%). “While we see the regional market downturn and low valuations rolling into the fourth quarter, we remain firmly optimistic about the long-term outlook for the Middle East and North Africa,” said EFG Hermes CEO Hassan Heikal. “We are going into this cycle with a very strong and healthy balance sheet that differentiates us from the rest of the market.” EFG Hermes’ complete earnings report for the first nine months of 2008, with comments and analysis, may be viewed on the firm’s website (www.efg hermes.com).