REG - EFG Holding S.A.E. - 2Q25 results

EFG Holding SAEAnnouncement

14/08/2025 09:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250814:nRSN3374Va&default-theme=true

RNS Number : 3374V  EFG Holding S.A.E.  14 August 2025

http://www.rns-pdf.londonstockexchange.com/rns/3374V_1-2025-8-14.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3374V_1-2025-8-14.pdf)

http://www.rns-pdf.londonstockexchange.com/rns/3374V_2-2025-8-14.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3374V_2-2025-8-14.pdf)

http://www.rns-pdf.londonstockexchange.com/rns/3374V_3-2025-8-14.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3374V_3-2025-8-14.pdf)

EFG HOLDING REPORTS SECOND QUARTER YEAR 2025 RESULTS

with Group net profit after tax and minority interest of EGP802 million; ON
OPERATING REVENUE OF EGP6.1 BILLION

Cairo, August 14(th), 2025: EFG Holding reports a strong set of results for
second quarter 2025, with Group net profit after tax and minority interest of
EGP802 million on operating revenues of EGP6.1 billion. The Group's total
assets stood at EGP207.8 billion at the end of June 2025.

   Key Highlights

EFG Holding

·      EFG Holding reports resilient performance in 2Q25, with Group
revenues up 21% Y-o-Y to EGP6.1 billion, driven by strong results across all
business lines - particularly EFG Finance and BANK NXT - while EFG Hermes
revenues remained flat as the exceptionally strong Investment Banking
performance in 2Q24 created a high base that overshadowed this quarter's solid
execution, and despite a strong quarter from Holding & Treasury
Activities;

·      Group operating expenses (including provisions & ECL) rose
22% Y-o-Y to EGP4.1 billion, reflecting higher provisions predominantly in EFG
Finance, persistent inflationary pressures, impact of a slightly weaker EGP on
the translation of regional expense and non-recurring expenses related to
Valu's listing. Notably, employee expenses remained flat Y-o-Y, as higher
fixed costs were offset by lower variable compensation;

·      With revenue growth outpacing cost increases, net operating
profit and net profit before tax grew 19% and 21% Y-o-Y, respectively. Group
taxes rose 15% Y-o-Y on higher tax charges related to profitability generated
by Egyptian entities. As a result, net profit after tax and minority interest
edged up 2% Y-o-Y to EGP802 million, with BANK NXT's contribution largely
offset by higher minority interest from Valu and lower Investment Banking
performance.

EFG Hermes

 

·      EFG Hermes maintained its resilient performance in 2Q25, with
Group operating revenues coming in flat Y-o-Y at EGP2.7 billion. This reflects
a strong recovery across Holding & Treasury, Brokerage, and Buy Side
activities-collectively up 131% Y-o-Y-offset by a sharp decline in Investment
Banking revenues due to a high base in 2Q24. Holding & Treasury Activities
recorded a strong rebound, generating EGP397 million in revenues versus a loss
of EGP503 million in 2Q24, driven predominantly by higher realized and
unrealized gains on investments and seed capital;

·      EFG Hermes operating expenses (including provisions & ECL)
rose 3% Y-o-Y to EGP2.2 billion, with a 10% decline in employee expenses due
to lower variable compensation, while other G&A expenses rose 36% amid
inflation, FX translation, and one-off costs related to the pre-operating
expenses of the Wealth Management business. Meanwhile, Provisions & ECL
recorded a net charge of EGP23 million, compared to a net release in 2Q24,
largely due to new regulatory-driven provisions related to margin lending in
Brokerage KSA and ECL on Holding's carry trade position;

·      As a result, net operating profit and net profit before tax both
declined 11% Y-o-Y. Lower tax charges provided partial relief, bringing net
profit after tax and minority interest to EGP268 million, down 11% Y-o-Y,
primarily due to lower Investment Banking profitability.

EFG Finance

·      EFG Finance delivered another strong quarter in 2Q25, with
revenues surging 66% Y-o-Y to EGP1.8 billion, supported by broad-based growth
across all lines of business. Valu led the performance with a 71% Y-o-Y
increase in revenues, driven by strong securitization gains and higher net
fees & commissions amid a rise in loan issuances, followed by Tanmeyah and
Corp Solutions;

·      EFG Finance operating expenses rose 82% Y-o-Y to EGP1.2 billion,
largely due to inflation-driven G&A costs, higher provisions, and
increased employee expenses. Other G&A expenses rose 87% Y-o-Y, driven by
USD-denominated IT expenses, EGP83 million in one-off costs related to Valu's
listing, and higher third-party, collection, and activation fees. Provisions
& ECL surged 232% Y-o-Y, mainly on higher ECL booked by Tanmeyah, and to a
lesser extent, Corp Solutions;

·      Despite the rise in expenses, revenue growth outpaced costs,
pushing net operating profit and net profit before taxes up 39% and 37% Y-o-Y,
respectively. Taxes increased 66% Y-o-Y, reflecting stronger profitability
across the platform-especially at Valu. However, net profit after tax and
minority interest declined 14% Y-o-Y to EGP230 million, due to higher minority
interest charges following the distribution of Valu shares and hence the
decline in EFG Holding's ownership from 95% to 67%.

BANK NXT

·      The Commercial Bank delivered a strong performance, with its
revenues increasing 30% Y-o-Y to EGP1.6 billion in 2Q25; largely driven by
higher net interest income, in addition to a growth in interest earning
assets. This was partially offset by a 35% Y-o-Y decrease in net fees &
commissions. 2Q25 also witnessed strong other revenues as compared to 2Q24,
due to gains from the sale of investments;

·      BANK NXT operating expenses including provisions & ECL rose
23% Y-o-Y to EGP694 million in 2Q25, primarily due to higher salaries, as well
as higher other G&A expenses mainly related to IT expenses and marketing
costs. This increase was offset by a 27% decline in provisions and ECL,
reflecting a normalized ECL charge pattern as 2024 included higher provisions
to enhance coverage ratio of stage 3 NPLs;

·      The Bank's net profit after tax added 39% Y-o-Y to reach EGP594
million (of which the Group's share is EGP304 million) in 2Q25, as revenue
growth outpaced the growth in expenses.

 

For full report and financial statements, please click on the links on top of
the page.

 

For further information:

Investor Relations Contacts

Email: InvestorRelations@efghldg.com

Group Head of Strategy

Basant Abdelmonsef

Email: babdelmonsef@efghldg.com

Tel: +20 (0)2 35356412

www.efghldg.com

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DOCPIMRTMTIBMAA