EFG-Hermes To Shut UAE Branch, Downsize More Employees

Reliable sources from EFG-Hermes  the investment bank will be shutting down its brokerage firm in Abu Dhabi by the end of the current year.

The sources further noted that EFG-Hermes (HRHO.CA) is widely downsizing its employees in the UAE seeking to curb the continuous losses in brokerage business.

It is worth noting that the financial statements for EFG-Hermes Brokerage (UAE) reported losses of AED 190.413 thousand (around EGP 320.138 thousand) during the first 9 months of 2012, compared to AED 35.548 thousand for the same period a year earlier, Al Arabiya.net reported.

During the third quarter of 2012, EFG-Hermes Brokerage (UAE) has posted losses of AED 358.259 thousand, compared to profits of AED 8.785 thousand for the same period a year earlier.

Moreover, the sources noted that EFG-Hermes is not only incurring losses in the UAE branch but also in other subsidiaries in a number of Gulf states due to the fact that the firm’s revenues do not depend on the bourses’ trading and speculations.

Al Arabiya.net has tried to call any of the EFG-Hermes officials to ask about the repercussions of the recent decisions, but they found no answer.

The sources further noted that EFG-Hermes headquarters have posted remarkable profits despite the difficult circumstances the Egyptian Exchange (EGX) has been facing since the outbreak of the revolution.

The sources stated that most of the Group’s revenues come from its research business as EFG-Hermes is making researches for the firms which are listed on the EGX or planning to get listed.

The sources revealed that the Group have dispensed with the Head of UAE Brokerage Reham Tawfik’s services.

Sources concluded that EFG-Hermes will be downsizing more employees working in subsidiaries in UAE alongside a number of Gulf states starting from next January.