EFG Holding reports mixed 1Q25 financial results

Published 21/05/2025, 08:04
EFG Holding reports mixed 1Q25 financial results

CAIRO - EFG Holding S.A.E. announced its financial outcomes for the first quarter of 2025, revealing a net profit after tax and minority interest of EGP 1.2 billion from operating revenues of EGP 5.6 billion. The results, released today, show a 34% year-over-year decline in revenues, which the company attributes to a high base in the previous year that included a significant foreign exchange gain due to the devaluation of the Egyptian pound in March 2024.

The company’s total assets reached EGP 207.2 billion by the end of March 2025. Excluding the impact of foreign exchange gains, the group’s revenues would have increased by 31% year-over-year, indicating growth across its various platforms, particularly the Investment Bank and EFG Finance, followed by BANK NXT.

EFG Holding’s total operating expenses, including provisions and expected credit losses (ECL), decreased by 29% year-over-year to EGP 3.5 billion, with a notable reduction in employee expenses and lower provisions & ECL, despite an increase in other general and administrative expenses. The group’s net operating profit and net profit before taxes both saw a 41% year-over-year decrease, while taxes decreased by 67%, primarily due to deferred tax gains on seed capital unrealized losses.

EFG Hermes, part of the holding, experienced a 54% year-over-year decrease in revenues to EGP 2.9 billion, influenced by lower Holding & Treasury Activities revenues compared to a period that included significant foreign exchange gains. Excluding these gains, EFG Hermes’ revenues would have shown a 30% year-over-year increase. Operating expenses fell by 45% year-over-year, and net profit after tax and minority interest declined by 54% to EGP 652 million.

EFG Finance reported a 23% year-over-year increase in revenues, reaching EGP 1.3 billion, with significant contributions from Tanmeyah and Valu. Operating expenses rose by 12% year-over-year to EGP 900 million, reflecting growth in operations and the inflationary environment. Net profit after tax and minority interest more than doubled, up 108% year-over-year to EGP 297 million.

BANK NXT saw an 11% year-over-year increase in revenues to EGP 1.4 billion, driven by higher net interest income. Operating expenses, including provisions & ECL, rose by 19% year-over-year to EGP 624 million. The bank’s net profit after tax grew by 5% year-over-year to EGP 498 million.

This financial summary is based on a press release statement from EFG Holding S.A.E. and reflects the company’s performance in the context of a challenging global economic landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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