REG - EFG Holding S.A.E. - 3rd Quarter Results

EFG Holding SAEAnnouncement

19/11/2025 08:15

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RNS Number : 1509I  EFG Holding S.A.E.  19 November 2025

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EFG HOLDING REPORTS Third QUARTER YEAR 2025 RESULTS

with Group net profit after tax and minority interest of EGP846 million; ON
OPERATING REVENUE OF EGP6.3 BILLION

Cairo, November 19(th), 2025: EFG Holding reports a strong set of results for
the third quarter 2025, with Group net profit after tax and minority interest
of EGP846 million on operating revenues of EGP6.3 billion. The Group's total
assets stood at EGP243.7 billion at the end of September 2025.

   Key Highlights

EFG Holding

·      EFG Holding delivered a strong third quarter, with Group revenues
up 27% Y-o-Y to EGP6.3 billion, driven mainly by growth at BANK NXT and EFG
Finance, offsetting lower revenues at EFG Hermes, which faced a high
comparison period from last year's fx and investment gains;

·      Group operating expenses (including provisions & ECL) grew
19% Y-o-Y, largely due to higher G&A expenses across all platforms,
alongside increased employee costs and provisions at EFG Finance. Notably,
employee expenses inched 9% Y-o-Y, as higher fixed costs reflecting salary
adjustments for inflation in Egypt and the impact of slightly weaker EGP on
the translation of regional expenses were offset by lower variable
compensation;

·      With revenue growth outpacing cost increases, net operating
profit and net profit before tax grew 41% and 42% Y-o-Y, respectively. Group
taxes fell 12% Y-o-Y on deferred tax gains, leading to a 22% Y-o-Y increase in
net profit after tax and minority interest to reach EGP846 million, as BANK
NXT and EFG Finance profits fully offset EFG Hermes' losses.

EFG Hermes

 

·      EFG Hermes delivered an overall weak third quarter despite strong
performance from its Sell-side and Buy-side businesses which achieved strong
Y-o-Y revenue growth of 27% and 16%, respectively. However, the overall
performance was weighed down by losses in Holding & Treasury Activities,
following last year's exceptional gains on investments / seed capital and fx.
As a result, total revenues fell 20% Y-o-Y to reach EGP2.1 billion;

·      Holding & Treasury Activities recorded EGP220 million in
losses versus EGP781 million in revenues in 3Q24, mainly due to unrealized
losses on investments / seed capital and net interest losses, compared to
substantial unrealized capital and fx gains a year earlier;

·      EFG Hermes operating expenses (including provisions & ECL)
rose 10% Y-o-Y to EGP2.1 billion, mainly on higher G&A expenses, with a
modest 2% Y-o-Y increase in employee expenses, due to salary adjustments for
inflation in Egypt and weaker EGP translation impact, partly offset by lower
variable compensation. Other G&A expenses jumped 34% amid inflation, USD
denominated costs and one-off costs related to the pre-operating expenses of
the Wealth Management business. Meanwhile, Provisions & ECL recorded a net
charge of EGP7 million, largely due to Brokerage margin exposures;

·      As a result, net operating profit dropped 95% Y-o-Y and EFG
Hermes recorded a net loss before tax of EGP57 million. Lower tax charges
provided partial relief, bringing net loss after tax and minority interest to
EGP171 million, compared to a net profit of EGP270 million in 3Q24, primarily
due to Holding & Treasury Activities' losses. Excluding Holding &
Treasury Activities, EFG Hermes recorded a net profit after tax and minority
interest of EGP543 million in 3Q25, up 31% Y-o-Y.

EFG Finance

·      EFG Finance delivered another strong quarter in 3Q25, with
revenues up 38% Y-o-Y to EGP1.5 billion, supported by broad-based growth
across nearly all lines of business. Valu led the performance with a 79% Y-o-Y
increase in revenues, driven by higher securitization gains, higher net fees
& commissions and a 34% rise in loan issuances. Tanmeyah posted 9% Y-o-Y
growth, supported by higher interest income, though partially offset by lower
fee income. Leasing revenues grew 28% Y-o-Y on higher net interest income and
portfolio expansion, while Factoring rose 12% Y-o-Y, mainly on stronger net
interest income despite softer fees;

·      EFG Finance operating expenses (including provisions & ECL)
rose 34% Y-o-Y to EGP1.1 billion, largely due to increased employee expenses,
higher provisions and inflation-driven G&A costs. Other G&A expenses
rose 12% Y-o-Y, driven by third party collection and listing fees, card
issuance and activation costs at Valu and inflationary and USD linked IT
expenses. Provisions & ECL surged 93% Y-o-Y, mainly on higher ECL booked
by Tanmeyah and to a lesser extent increased provisions at Valu reflecting
growth in operations;

 

·      Despite the rise in expenses, revenue growth outpaced costs,
pushing net operating profit and net profit before taxes up 48% and 46% Y-o-Y,
respectively. Taxes increased 43% Y-o-Y, reflecting stronger
profitability-especially at Valu. Consequently, net profit after tax and
minority interest increased 28% Y-o-Y to EGP261 million, driven chiefly by
Valu's strong performance, followed by Leasing.

BANK NXT

·      The Commercial Bank delivered a very strong quarter, with its
revenues increasing 119% Y-o-Y to EGP2.7 billion in 3Q25, supported by a
larger interest earning asset base, which resulted in a 30% increase in net
interest income, as well as significant other revenues from the sale of
non-core assets. This was also enhanced by a further 33% Y-o-Y increase in net
fees & commissions;

·      BANK NXT operating expenses (including provisions & ECL)
rose  30% Y-o-Y to EGP672 million in 3Q25, primarily due to a significant
increase in office and occupancy costs resulting from the rent of the new head
office space, followed by higher employee expenses reflecting salary
adjustments and new hires, as well as higher other G&A expenses mainly
related to outsourced and consultancy fees and marketing costs. This increase
was offset by an 11% 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 245% Y-o-Y to reach EGP1.5
billion (of which the Group's share is EGP756 million) in 3Q25, 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

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