Fitaihi incurs unrealized losses of SAR 27 mln on Egyptian pound devaluation

One of Fitaihi Group branches

Fitaihi Holding Group  posted the first evaluation losses from investments at fair value in nearly two years, specifically since the third quarter of 2020, after incurring losses of SAR 25.9 million in H1 2022, against earnings of SAR 28.3 million a year earlier.  

The company attributed the losses mainly to the Egyptian pound devaluation by 19.5%, which affected the valuation of its investments in Egypt, resulting in losses of SAR 27 million.

*Included losses of SAR 27 mln from EGP devaluation

The losses are expected to increase, in light of the continued Egyptian pound devaluation against the US dollar and the increase in inflation rates currently.

The Central Bank of Egypt (CBE) decided today, Oct. 27, to liberalize the exchange rate of the Egyptian pound, in addition to raising the interest rate by 200 basis points to 14.25% for overnight lending and 13.25% for overnight deposit.

The company recently posted audited financial results for H1 2022, which reflected net earnings of SAR 16.8 million for H1 2022, according to data compiled by Argaam.