EFG Holding reported a solid start to 2026, with group revenues increasing by 18% year-on-year to EGP 6.6 billion, supported by strong performance across all three core business verticals.
Net operating profit and net profit before tax both rose by 20% year-on-year to EGP 2.5 billion and EGP 2.3 billion, reflecting resilient operational performance across the group. However, net profit after tax and minority interest declined to EGP 1.0 billion, mainly due to higher taxes and minority interest pressures.
Total assets reached EGP 270.2 billion by the end of March 2026, highlighting continued balance sheet expansion.
Rising Costs Amid Inflationary Pressures
Total operating expenses, including provisions and expected credit losses (ECL), increased by 16% year-on-year to EGP 4.1 billion. The rise was primarily driven by higher general and administrative expenses amid persistent inflation in Egypt, alongside increased activity at EFG Finance and higher provisioning requirements across lending portfolios.
The group also noted that stronger operational activity in its non-bank financial institutions (NBFI) vertical contributed to overall cost growth.
CEO Commentary on Market Conditions
Karim Awad, Group CEO of EFG Holding, stated that the company delivered a strong operational performance in Q1 2026, with revenue growth across all business verticals despite a challenging regional environment.
He noted that geopolitical tensions arising from the US–Israel–Iran conflict impacted market conditions in the latter part of the quarter. However, he expressed optimism that a resolution would positively influence both regional markets and business activity.
Awad emphasized continued focus on disciplined execution, risk management, and sustaining profitability despite macroeconomic pressures.
EFG Hermes Delivers Strong Investment Banking Performance
EFG Hermes, the group’s investment banking arm, recorded revenues of EGP 3.1 billion, up 9% year-on-year.
Performance was supported by gains in holding and treasury activities, including unrealized investment gains and foreign exchange benefits following the EGP devaluation in March 2026.
Net operating profit increased by 31%, while net profit before tax rose by 34% year-on-year, reaching EGP 1.2 billion and EGP 1.1 billion respectively.
Mixed Performance Across Business Lines
Sell-side revenues declined slightly despite strong brokerage activity, reflecting lower investment banking deal activity compared to a strong base period. Meanwhile, buy-side revenues grew 6% year-on-year.
Strong Growth in EFG Finance
EFG Finance recorded revenue growth of 20% year-on-year to EGP 1.6 billion, driven primarily by strong performance from Valu, which saw revenues surge 85% year-on-year due to higher securitization gains and loan issuance activity.
However, profitability declined, with net operating profit falling 37% and net profit before tax dropping 47% year-on-year. This was largely attributed to a sharp increase in provisions and expected credit losses, as well as foreign exchange losses at Finance Holding.
Net profit after tax and minority interest for the vertical stood at EGP 61 million.
Bank NXT Delivers Strong Quarter
Bank NXT posted a strong performance, with revenues rising 34% year-on-year to EGP 1.9 billion.
Growth was driven by a 53% increase in net interest income, supported by expansion in the bank’s loan portfolio. Net operating profit rose 40% year-on-year to EGP 1.1 billion, while net profit before tax increased 39% to EGP 1.0 billion.
Net profit after tax reached EGP 691 million, up 39% year-on-year, with the group’s share amounting to EGP 354 million.
Outlook
The group continues to focus on maintaining disciplined growth across its investment banking, non-bank financial services, and commercial banking divisions, while navigating a complex macroeconomic and geopolitical environment in the MENA region.
