The past year has been one of the most active and significant years in EFG Hermes Holding’s history. The many milestones that were achieved are the culmination of a long and successful journey that has led us to where we are today. Long before I became Chairperson, EFG Hermes Holding had a dream and an objective to one day acquire a commercial bank in our home market of Egypt. 2021 is the year that we have come full circle to achieve this goal and today we are finally a universal bank in Egypt. The Firm now has the ability to provide customers with a full roster of banking and non-banking financial services with a market-leading investment bank franchise that is continuing to grow market shares and capture opportunities in Frontier Emerging Markets (FEM).

The acquisition of a 51% majority stake in the Arab Investment Bank (aiBANK) in November of 2021 marked an important new milestone for our Firm. It’s a strategic entry into the Egyptian commercial banking sector, which has consistently shown remarkable growth and resilience throughout the volatility of the past years. The transaction is also very significant as it marks the beginning of a new strategic alliance between EFG Hermes Holding and the Sovereign Fund of Egypt (TSFE), which owns a 25% stake in the bank through its fully owned sub-fund TSFE Financial Services. The remaining 24% of the bank is owned by our government partner, the National Investment Bank (NIB). The successful completion of this transaction has set a new precedent and sent a clear message that the Egyptian private sector, represented by EFG Hermes Holding, can work effectively with the public sector to create new models of cooperation. This is, in my opinion, an example of a public private partnership (PPP) at its best.

The role of TSFE as a catalyst for encouraging the private sector to participate in major transactions of this nature that will support the sustainable economic development of Egypt should be recognized and encouraged.

We must also acknowledge and applaud the important role that the Central Bank of Egypt (CBE) has played with their adoption of a new vision and approach to encourage the private sector. Permitting EFG Hermes Holding to acquire a majority stake of the Bank was a turning point, and we are honored that they have placed their trust in us. We fully intend to continue writing this success story with our partners and to make all stakeholders proud of aiBANK in the coming years.

With an investment bank, a commercial bank, and a fast-growing non-banking financial institutions (NBFI) platform, we are very well positioned to provide a holistic set of financial products and services to both retail and corporate clients alike. We are also in a much better position to withstand the cyclicality of capital markets. In Egypt and across our footprint of 13 markets, the Firm has proven its resilience.

Despite the suboptimal conditions brought about by the prolonged impact of COVID-19, we have had a record year in terms of the number of deals that our advisory team has closed. Whether it’s in Egypt, the UAE, Saudi Arabia, or Pakistan, the Firm continues to capture an impressive deal flow. Over the years, we have been ramping up our business in all the new countries we have expanded into and our efforts continue to bear the fruit. This past year we saw our Investment Banking team close their first M&A transaction in Pakistan with advisory to TPG’s Evercare Group on the sale of its 50% stake in Islamabad Diagnostic Centre to Integrated Diagnostics Holding (IDH). We are also very proud of our team in Pakistan who have just been named the Best International Brokerage Firm in Pakistan by Asiamoney for the first time. In Kenya, our brokerage business holds a first place ranking for the second consecutive year. All of these achievements are an indication that we are now gaining grounds and making a strong name for ourselves outside our traditional markets.

Closer to home in Saudi Arabia and the Gulf, we are deepening our reach with active roles in several significant transactions in 2021, such as the IPOs of ACWA Power on Tadawul and Fertiglobe on ADX, among many others. It is not just the number of deals executed that we are proud of, but also the significance of those deals. It is both the breadth and depth of our operations that are impactful.

We are extremely pleased with the exceptionally active year that our NBFI platform has had. We have continued to expand the platform and, today, we are able to offer our clients in Egypt a diverse and comprehensive product offering, including buy-now, pay-later (BNPL) fintech through our award-winning platform, valU, microfinance through Tanmeyah, leasing and factoring through EFG Hermes Corp-Solutions, insurance through Kaf, e-payments through PayTabs Egypt, and mortgage finance through Bedaya. With hard work, innovation, and successful partnerships with local businesses in Egypt, our NBFI platform is growing and making a difference in the lives of Egyptians from all socioeconomic groups.

The commercial success of our business is a tremendous source of pride but equally important is our responsibility towards the sustainable development of our home market. The EFG Hermes Foundation has a well-established track record as a leader in sustainable development in Egypt and has instilled this sense of social responsibility throughout the Group. Our microfinance company, Tanmeyah, for example, is the largest contributor to the social responsibility activities of the Egyptian Microfinance Federation. In fact, all our subsidiaries are very conscious of the principles of responsible investing and aware that their work must be socially and environmentally sound. It is extremely gratifying to witness the positive impact that the Foundation has had on the mindset of the management and employees of EFG Hermes Holding.

As the importance of addressing climate change becomes more and more evident, green and socially impactful investments are becoming increasingly vital to our business across the board. Vortex Energy, the global renewable energy platform managed by our private equity arm, remains actively engaged in making new investments in renewables through its newly launched USD 200 million Vortex Energy IV Fund. In addition to their London office, they have also established a permanent presence in Spain and Abu Dhabi to explore regional opportunities in energy transition verticals, including generation from solar, wind, hydropower, and biomass. I look forward to seeing our green investments continue to expand across sectors and geographies including Egypt and MENA.

I am cautiously optimistic about the year ahead. We will continue to be alert looking after our employees and customers while working aggressively as we look forward to a brighter future. Egypt has been relatively resilient; we succeeded in staying both open and agile, which has helped our businesses significantly, the economy, and ultimately our people. We see strong growth potential in Egypt in terms of GDP and GCC markets will continue to outperform.

I would like to take this opportunity to thank our esteemed Board of Directors. EFG Hermes Holding’s Board houses the region’s most prominent business experts, who have been a great source of support and guidance, and an integral component to our success in 2021. Our board has been extremely committed and generous, consistently providing the necessary time and effort, and providing us with a 360-degree view that is becoming increasingly important to us as we expand our business into new areas. I truly believe that our strong Board constitution and contribution is one of the major factors of our ongoing success. I would also like to thank the Firm’s senior management and all employees for their hard work and dedication through a tough year, one that deserves to be celebrated. I am proud of each and every one of them and wish them all the best for the coming year. May we continue to succeed, break new ground, and create positive impact.