Arab Finance: EFG Holding reported an 18% year-on-year (YoY) increase in group revenues to EGP 6.6 billion in the first quarter (Q1) of 2026, supported by growth across its investment banking, non-bank financial institutions (NBFI), and commercial banking businesses, as per an emailed earnings release.

The Egypt-based financial institution said net operating profit and net profit before tax both rose 20% YoY to EGP 2.5 billion and EGP 2.3 billion, respectively. Net profit after tax and minority interest, however, declined to EGP 1 billion due mainly to higher taxes and minority interest. Total assets stood at EGP 270.2 billion at the end of March 2026.

Total operating expenses, including provisions and expected credit losses (ECL), increased 16% YoY to EGP 4.1 billion. The increase was attributed to higher general and administrative expenses amid inflationary pressures in Egypt, increased operational activity at EFG Finance, and higher provisions linked to larger loan books at both EFG Finance and Bank NXT.

EFG Hermes, the group’s investment banking arm, recorded a 9% YoY increase in revenues to EGP 3.1 billion, supported by holding and treasury activities that benefited from unrealized investment gains and foreign exchange gains following the Egyptian pound devaluation in March 2026.

The investment bank said sell-side revenues declined slightly despite brokerage growth, reflecting lower investment banking activity against a strong comparison base, while buy-side revenues rose 6% YoY. Net operating profit and net profit before tax at EFG Hermes increased 31% and 34% YoY to EGP 1.2 billion and EGP 1.1 billion, respectively.

EFG Finance posted a 20% YoY increase in revenues to EGP 1.6 billion, driven mainly by the performance of valU, whose revenues surged 85% YoY on the back of higher securitization gains and loan issuances.

Despite the revenue growth, EFG Finance’s profitability declined, with net operating profit and net profit before tax falling 37% and 47% YoY to EGP 276 million and EGP 205 million, respectively. The company attributed the decline mainly to a 335% YoY increase in provisions and ECL, compared to reversals recorded in the same period last year, as well as non-operational foreign exchange losses recognized by Finance Holding. Net profit after tax and minority interest for the platform reached EGP 61 million.

Meanwhile, Bank NXT reported a 34% YoY increase in revenues to EGP 1.9 billion during Q1 2026, driven primarily by a 53% YoY rise in net interest income supported by loan portfolio growth.

The bank’s net operating profit rose 40% YoY to EGP 1.1 billion, while net profit before tax climbed 39% YoY to EGP 1 billion. Net profit after tax increased 39% YoY to EGP 691 million, with EFG Holding’s share amounting to EGP 354 million.