Contact Financial Holding’s normalized net income rose 3% y-o-y to EGP 178 mn in 1Q 2023, as a jump in income at the company’s ins. division offset falling financing revenues, according to the company’s earningsrelease(pdf).

In detail: Net income at the NBFS player’s ins. division rose 35% y-o-y to EGP 25 mn thanks to robust results at Sarwa Life and Sarwa Ins., whose total gross written premiums grew 73% y-o-y to a combined EGP 437 mn. Meanwhile, net income at the financing division fell 14% as a strong expansion of new financing failed to offset a rise in credit loss provisions to “hedge against potential increases in credit risk during the ongoing economic turbulence.” New financing surged 66% y-o-y to a record EGP 4.1 bn, driven primarily by the company’s consumer finance and auto loan products, which posted new growth of 179% and 81%, respectively.

What they said: “Our results in the first quarter of 2023 came in the midst of difficult domestic and global macroeconomic environments, further showcasing our company’s resilience and the effectiveness of our mitigation and investment strategies,” management said. “Expanding and enhancing our digital capabilities continues to be at the top of our list. In parallel, we remain on the lookout for attractive investment opportunities to provide new services to our customers and new growth avenues for the company.”

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