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 its results for the full year ended 2024. The Group booked its highest-ever recorded revenues of EGP24.4 billion ($482 million), representing a remarkable 66 percent Year-on-Year growth, underpinned by increasing revenues reported by all lines of business of the Group, EFG Hermes, the investment bank vertical, followed by Bank NXT, the commercial bank vertical, and EFG Finance, the Non-Bank Financial Institutions (NBFI) vertical.
EFG Holding’s operating expenses increased 57 percent Y-o-Y to EGP15.5 billion in FY24, driven by the increase in employee expenses and other operating expenses. In terms of profitability, the Group’s net operating profit rose 84 percent Y-o-Y in FY24 to EGP8.9 billion ($175.9 million). Meanwhile, net profit before tax rose 81 percent Y-o-Y to EGP7.7 billion in FY24. The Group’s net profit after tax and minority interest increased 71 percent Y-o-Y to reach a record high of EGP4.3 billion ($84.9 million), on higher profitability generated by the three verticals. The Group’s total assets stood at EGP186.9 billion at the end of December 2024.
Adapting in a rapidly evolving economic landscape
Karim Awad, group CEO of EFG Holding, reflected on the Group’s performance, stating, “The outstanding financial performance of our institution in 2024 stands as a powerful testament to our relentless pursuit of excellence, strategic foresight, and our ability to adapt in a rapidly evolving economic landscape. This year’s earnings across all our verticals reinforce our position as a leading financial institution in the MENA region—one that continuously delivers value, fosters growth, and sets new industry benchmarks.”
“Our continued focus on innovation, cross-selling capabilities, operational efficiency, and client-centric solutions has enabled us to deliver sustained value and maintain a competitive edge,” Awad further noted.
Read more: EFG Hermes achieves top position in MENA Equity Capital Markets for 2024 through market-leading executions
On the investment bank side of the house, EFG Hermes had a strong year, surging 81 percent Y-o-Y to EGP14.7 billion, boosted by unrealized gains on investments/seed capital, foreign exchange gains, and outstanding sell-side performance. Sell-side revenues surged 95 percent Y-o-Y to EGP7.4 billion, lifted by Investment Banking’s exceptional revenues and higher Brokerage revenues. Investment Banking revenues surged a staggering 220 percent Y-o-Y to EGP2.4 billion. In comparison, Brokerage revenues climbed 65 percent Y-o-Y on the back of higher revenues generated by the MENA markets, namely Egypt and UAE markets, to EGP5.1 billion. This was further complemented by the growth in Structured Products’ revenues after the devaluation and the increased executions of Egypt’s carry trade. Net profit after tax and minority interest rose 63 percent to reach EGP 2.5 billion.
EFG Finance’s robust growth
Additionally, revenues at EFG Finance, the Group’s Non-Bank Financial Institutions (NBFI) vertical, jumped 60 percent Y-o-Y to EGP4.8 billion, led by Valu and Tanmeyah, and followed by EFG Corp-Solutions’ Leasing business. Operating expenses rose 45 percent Y-o-Y to EGP3.3 billion, driven by higher employee expenses, other G&A, provisions, and ECL. Valu’s revenues grew 66 percent Y-o-Y to EGP1.9 billion, boosted by higher fees and commissions as loans issued increased Y-o-Y, higher securitization gains which came at EGP835 million, and foreign exchange gains. Tanmeyah’s strong performance in the year’s second half resulted in a 50 percent increase in revenues Y-o-Y to EGP1.9 billion, on higher net interest income as the outstanding portfolio grew Y-o-Y. EFG Corp-Solutions’ Leasing revenues more than doubled, up 117 percent Y-o-Y to EGP787 million, while its Factoring revenues grew 38 percent Y-o-Y to EGP165 million. EFG Finance’s net profit after tax and minority interest more than doubled, up 134 percent Y-o-Y to reach EGP815 million.
Bank NXT saw another strong year, with its revenues increasing 37 percent Y-o-Y to EGP5.0 billion in FY24, primarily driven by higher net interest income, which grew 54 percent Y-o-Y to EGP3.9 billion. The Bank’s net profit after tax added 54 percent Y-o-Y to reach EGP1.8 billion (of which the Group’s share is EGP909 million) in FY24, as revenue growth outpaced the growth in expenses.
“Leveraging our strong balance sheet and expanding regional presence, we remain committed to seizing new opportunities and driving sustainable growth. The continued expansion of our Investment Bank in the GCC, alongside the positive momentum of Valu, Bank NXT, and Tanmeyah, reflects the strength of our strategy and adaptability. These developments reinforce our focus on delivering long-term profitability, generating value for our shareholders, and supporting our clients and communities. Guided by a clear strategic vision, we strive to contribute to the evolution of financial services across the MENA region,” further concluded Awad.
Moreover, EFG Holding’s FY24 financial results and management’s commentary are available.
