Latest news with #KarimAwad
El Fagr
a day ago
- Business
- El Fagr
EFG Holding Preserves Growth Momentum، Demonstrating Resilient Performance in the Second Quarter Results of 2025
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.
Gulf Business
2 days ago
- Business
- Gulf Business
EFG Holding posts strong Q2 2025 growth driven by diversified performance
Karim Awad, group CEO, EFG Holding/Image: Supplied EFG Holding, a financial institution with a universal bank in Egypt and the leading investment bank in the Middle East and North Africa (MENA), reported a 21 per cent year-on-year (YoY) revenue increase in Q2 2025 to EGP6.1bn, supported by strong results across all business lines—particularly EFG Finance, its non-bank financial institutions (NBFI) platform, and Bank NXT, its commercial bank. Total operating expenses, including provisions and expected credit losses (ECL), rose 22 per cent YoY to EGP4.1bn, driven by higher provisions—mainly in EFG Finance—and increased general and administrative (G&A) costs, while employee expenses remained flat. With revenue growth outpacing expense growth, net operating profit rose 19 per cent YoY and net profit before tax increased 21 per cent YoY. Net profit after tax and minority interest grew 2 per cent YoY to EGP802m. Group CEO Karim Awad said: '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 $1bn in the quarter.' Business line performance EFG Hermes posted flat revenues at EGP2.7bn, with a 131 per cent YoY increase in combined Holding & Treasury Activities, Brokerage, and Buy Side revenues. Holding & Treasury Activities rebounded to EGP397m from a loss of EGP503m in Q2 2024. Brokerage revenues rose 25 per cent YoY, led by Egypt, Kuwait, and UAE markets. Net profit after tax and minority interest fell 11% YoY to EGP268m, due to lower profitability in the Investment Banking division. EFG Finance revenues surged 66 per cent YoY to EGP1.8bn, driven by broad-based growth. Valu led with a 71 per cent YoY revenue increase, fueled by securitisation gains, higher fees, and a 60% rise in loan issuances to EG4.7bn. Tanmeyah and Corp-Solutions also saw growth, with Leasing's portfolio doubling to EGP17.7bn. Operating expenses jumped 82 per cent YoY to EGP1.2bn due to inflation-driven costs, higher provisions, increased staff costs, and one-time listing expenses. Net profit after tax and minority interest fell 15 per cent YoY to EGP230m, due to higher minority interest after Valu's share distribution and reduced ownership from 95 per cent to 67 per cent. Bank NXT delivered 30 per cent YoY revenue growth to EGP1.6bn, led by higher net interest income and interest-earning assets. Operating expenses rose 23 per cent YoY to EGP694m, offset by a 27 per cent decline in provisions and ECL. Net profit after tax and minority interest jumped 39 per cent YoY to EGP304m. Awad concluded: '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 capitalise on emerging opportunities for the benefit of clients and shareholders alike.'
Zawya
2 days ago
- Business
- Zawya
Egypt: EFG Holding generates $41mln in H1 2025 consolidated profits
Arab Finance: The consolidated net profits attributable to the owners of EFG Holding dropped by 22.91% to EGP 2 billion in the first half (H1) of 2025 from EGP 2.603 billion in H1 2024, the financial results showed. Revenues fell to EGP 11.528 billion in H1 2025 form EGP 13.592 billion a year earlier, whereas the earnings per share (EPS) declined to EGP 1.37 from EGP 1.79. As for the standalone business, the net profits increased to EGP 1.927 billion in the first six months of 2025 from EGP 879.747 million in H1 2024. Non-consolidated EPS jumped to EGP 1.32 from EGP 0.60, while the total revenues soared to EGP 3.734 billion from EGP 2.393 billion. Karim Awad, Group CEO of EFG Holding, commented: '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,' Awad noted. He added: '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 $1 billion in the quarter. © 2025 All Rights Reserved Arab Finance For Information Technology Provided by SyndiGate Media Inc. (
Zawya
23-06-2025
- Business
- Zawya
Egypt: Amazon exercises option to acquire direct stake in Valu
Arab Finance: EFG Holding's subsidiary U Consumer Finance, known under the trademark Valu, announced Amazon's decision to exercise its option to acquire a direct equity stake in Valu, according to a press release. Amazon entered into an option agreement with EFG Holding in May 2022, acquiring $10 million of EFG Holding global depository receipts (GDRs). The deal included the option to convert the GDRs into a direct stake in Valu, representing 4.255% of its share capital. Accordingly, based on the terms and conditions of this option agreement, Amazon will hold around a 3.95% stake in Valu. Subject to the required approvals, the transaction will be executed on the first trading session of Valu shares on the Egyptian Exchange (EGX) at a price per Valu share of EGP 6.041 through the block trade mechanism. It is worth highlighting that EFG Hermes acted as the sole financial advisor to EFG Holding and Valu on the transaction. Karim Awad, Group CEO of EFG Holding, commented: " This milestone underscores our unwavering commitment to our shareholders, as we continue to create and manage businesses that deliver exceptional value and long-term rewards.' 'Valu's success exemplifies our dedication to driving financial inclusion and digital transformation in Egypt and beyond, while solidifying our position as a catalyst for innovation and growth in the region,' Awad affirmed. For his part, Walid Hassouna, CEO of Valu, stated: "At Valu, we remain unwavering in our commitment to redefining the customer experience through cutting-edge financial solutions that empower individuals and businesses alike, driving both convenience and opportunity in every interaction." Valu was listed on the EGX on May 21st,2025, while its shares will be admitted to trading on the EGX on June 23rd. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
23-06-2025
- Business
- Zawya
Amazon to acquire direct stake in Valu following deal with EFG Holding
Cairo: Amazon has agreed to exercise its option to acquire a direct equity stake in U Consumer Finance (Valu), a subsidiary of EFG Holding Company, according to a press release. Based on an option agreement with EFG Holding in May 2022, Amazon acquired $10 million of the EGX-listed firm's global depository receipts (GDRs), with the option to convert the GDRs into a direct stake in Valu. This accounts for 4.25% of its share capital. After obtaining the necessary approval, Amazon will hold around 3.95% of Valu's shares. The transaction will be executed on the first trading session of Valu shares on the Egyptian Exchange (EGX) at a price per Valu share of EGP 6.04 through the block trade mechanism. Karim Awad, Group CEO of EFG Holding, said: "This milestone underscores our unwavering commitment to our shareholders, as we continue to create and manage businesses that deliver exceptional value and long-term rewards." Walid Hassouna, CEO of Valu, commented: "At Valu, we remain unwavering in our commitment to redefining the customer experience through cutting-edge financial solutions that empower individuals and businesses alike, driving both convenience and opportunity in every interaction." EFG Hermes served as the sole financial advisor to EFG Holding and Valu on the transaction. Meanwhile, Valu is set to start trading its shares on the EGX on 23 June 2025.
