EFG Hermes Pakistan : Transmission of Quarterly Report for the Period Ended

HALF	YEAR	REPORT
		2023

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I, on behalf of Board of Directors of your Company, am pleased to present herewith un-audited condensed interim financial statements of the Company for the half year ended June 30, 2023. These condensed interim financial statements have been reviewed by the external auditors of the Company.

Performance Review

During the second quarter ended June 30, 2023, the Company earned operating revenues of Rs.69.841 million as compared to Rs. 56.425 million for the same period last year. The Company earned before and after tax losses of Rs. (30.535) million and Rs. (38.977) million respectively compared to before and after tax losses of Rs. (23.244) million and Rs. (28.134) million respectively for the corresponding period. Loss per share for the quarter stood at Rs. (1.95) compared to loss per share of Rs. (1.41) for the corresponding period.

For the half year ended June 30, 2023, the Company earned operating revenues of Rs. 110.498 million as compared to Rs. 101.913 million for the corresponding period. The Company earned before and after tax losses Rs. (53.434) million and Rs. (64.915) million respectively as compared to before and after tax losses Rs. (30.90) million and Rs. (39.06) million respectively for the same period during last year. Loss per share for the half year is Rs. (3.24) as compared to loss per share of Rs. (1.95) for the corresponding period.

The decline in operating revenue and earnings over the corresponding period was driven by significantly decreased activity in the market turnover amidst rising political and economic uncertainty and multi-year high interest rates. However, despite the tough market conditions, the Company improved its market share compared with the corresponding period last year helped by greater participation from local institutions.

In Second Quarter 2023, the KSE100 index rose 3.6% compared with a decrease of 1.0% in First Quarter 2023 and a steep decline of 7.5% in corresponding period last year. The overall market liquidity fell to ADVT USD16mn in the second quarter 2023, which is 57% lowers than 2022 ADVT of USD37mn. The decline is market activity was led by elevated political and economic uncertainty in particular, the prolonged delay in reviving the stalled IMF programme, which however came through at the end of the quarter.

Karachi, August 23, 2023

H a l f Y e a r R e p o r t 2 0 2 3

H a l f Y e a r R e p o r t 2 0 2 3