EFG Holding Preserves Growth Momentum، Demonstrating Resilient Performance in the Second Quarter Results of 2025

El Fagr

3 days ago

EFG Holding، a financial institution with a universal bank in Egypt and the leading investment bank in the Middle East and North Africa (MENA)، announced today its results for the second quarter of 2025. The Group's revenues recorded a 21% Y-o-Y increase to reach EGP 6.1 billion، driven by strong results across all business lines، particularly EFG Finance، its non-bank financial institutions (NBFI) platform، and Bank NXT، its commercial bank.
The Group's total operating expenses (including provisions & ECL) increased 22% Y-o-Y to EGP 4.1 billion، on higher provisions & ECL، predominantly in EFG Finance، and higher other G&A expenses. Meanwhile، employee expenses were flat Y-o-Y.
With the increase in revenues surpassing the increase in expenses، EFG Holding's net operating profit and net profit before taxes increased 19% Y-o-Y and 21% Y-o-Y، respectively. Consequently، net profit after tax and minority interest inched up 2% Y-o-Y to reach EGP 802 million in 2Q25.
Karim Awad، Group CEO of EFG Holding، commented، 'Our second quarter results demonstrate the continued resilience and strength with which EFG Holding operates، supported by its diversified platform and strong geographic footprint. EFG Holding's first half of 2025 has been defined by meaningful milestones and strong momentum. Foremost among these is Valu's listing on the Egyptian Exchange (EGX) in June، complemented by Amazon's decision to exercise its Option Agreement with EFG Holding to acquire a direct stake in Valu. The period's financial results highlight the standout performance of EFG Finance، driven by Valu and Bank NXT. Our Asset Management platform continues to expand، with assets under management growing، while the Investment Banking division closed transactions totaling more than USD 1 billion in the quarter.
EFG Hermes، the investment bank، maintained its resilient performance for the second quarter of the year، with Holding & Treasury Activities، Brokerage، and the Buy Side revenues collectively rising 131% Y-o-Y. Although the Investment Banking business continues to demonstrate solid performance this quarter، Y-o-Y revenues appear lower due to an exceptionally high base in the comparative period. Excluding this high base effect، the underlying performance of the advisory business remains robust and promising. Thus، EFG Hermes' operating revenues came flat Y-o-Y at EGP 2.7 billion. Holding & Treasury Activities recorded a strong rebound، generating EGP 397 million in revenues versus a loss of EGP 503 million in 2Q24. Brokerage revenues rose 25% Y-o-Y، driven by higher revenues generated particularly by Egypt، followed by Kuwait and the UAE markets. EFG Hermes operating expenses (including provisions & ECL) inched up 3% Y-o-Y to EGP 2.2 billion، on higher other G&A expenses، higher provisions & ECL، and despite lower employee expenses. EFG Hermes reported net profit after tax and minority interest of EGP 268 million، down 11% Y-o-Y، on lower profitability generated by the Investment Banking division.
EFG Finance، the Group's Non-Bank Financial Institutions (NBFI) platform، continued to deliver strong results in 2Q25، with its revenues surging 66% Y-o-Y to EGP 1.8 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 substantial securitization gains and higher net fees & commissions amid a rise in loan issuances، followed by Tanmeyah and Corp-Solutions، which continued its upward trajectory with Leasing's portfolio reaching EGP 17.7 billion in 1H25، increasing 102% Y-o-Y، fueled by targeted efforts to onboard large creditworthy clients. Valu issued EGP 4.7 billion worth of new loans in 2Q25، up 60% Y-o-Y. EFG Finance's operating expenses rose 82% Y-o-Y to EGP 1.2 billion، mainly due to inflation-driven G&A costs، higher provisions، increased employee expenses and one-time expenses related to Valu's listing. EFG Finance's net operating profit and net profit before taxes rose 39% Y-o-Y and 37% Y-o-Y، respectively، in 2Q25. However، net profit after tax and minority interest declined 15% Y-o-Y to EGP 230 million، due to higher minority interest charges following the distribution of Valu shares to EFG Holding's shareholders and the decline in EFG Holding's ownership from 95% to 67%.
Bank NXT، the commercial bank، delivered a strong performance، delivering 30% Y-o-Y revenue growth to reach EGP 1.6 billion in 2Q25. This was primarily driven by higher net interest income، in addition to an increase in interest-earning assets. Operating expenses، including provisions & ECL، rose 23% Y-o-Y to EGP 694 million in 2Q25، primarily due to higher salaries، as well as higher other G&A expenses، which were offset by a 27% decline in provisions and ECL. The Bank's net profit after tax and minority interest added 39% Y-o-Y to reach EGP 304 million in 2Q25، as revenue growth outpaced the growth in expenses.
'Amid ongoing geopolitical volatility and persistent macroeconomic headwinds، market dynamics across the MENA region remained varied، both in terms of liquidity and overall performance. Nonetheless، the Brokerage business delivered notable growth in total executions، driven primarily by robust activity in Kuwait and the UAE. Bank NXT continued to broaden its portfolio، diligently cultivating a strong base that will underpin future growth and generate lasting value. Anchored by a solid foundation، the firm is well-positioned to adeptly navigate changing market conditions and confidently capitalize on emerging opportunities for the benefit of clients and shareholders alike،' concluded Awad.