Egypt News

Fourth quarter net profit fell to 32 million Egyptian pounds ($5.36 million) from 84.6 million in 2009 as revenue from two of its biggest market-based activities, brokerage and investment banking, declined. These activities were unlikely to improve in 2011, it indicated.

"Market conditions deteriorated significantly in 2011 as a result of the EGX (Egyptian stock exchange) closing," EFG-Hermes said in its earnings statement, without elaborating.

EFG-Hermes said its brokerage revenue fell by 16.3 million pounds year-on-year in the fourth quarter and its investment banking fees and commissions by 19 million pounds.

This year, Egypt's stock market was closed for more than seven weeks during the protests that ousted President Hosni Mubarak, reopening only on March 23. The benchmark index has lost 12.6 percent so far this year.

The political turmoil in Egypt over the last two months has weakened the country's economic outlook and its currency, and analysts say political uncertainty may continue to drag down share prices in the coming months.

The bank said its assets under management rose to $5.61 billion as of Dec. 31 from $5.47 billion as of Oct. 31.

EFG-Hermes's stock jumped 7.9 percent on Wednesday, while Egypt's index .EGX30 rose 1.3 percent.

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