Egypt’s banking sector to see 15% y-o-y earnings growth 2Q -EFG Hermes

Egypt’s banking sector to see 15% y-o-y earnings growth in 2Q -EFG Hermes: The Egyptian banking sector will see bottom line growth of 15% y-o-y in 2Q2019, according to EFG Hermes forecasts. Earnings growth will be driven by lower provisioning costs and a 12% y-o-y rise in revenues thanks to higher net interest income, the bank says.

But earnings to fall quarter-on-quarter: A seasonal slowdown in loan growth will cause earnings to fall 9% in 2Q compared to 1Q, EFG says. This will come despite 3% q-o-q growth in revenues.