Beltone Holding turned profitable in 2023 after years of losses, recording EGP 369 mn in net income compared to a net loss of EGP 269 mn in 2022, the company said in its earnings release (pdf). Beltone turned in EGP 1.9 bn in operating revenue for 2023, up 411% y-o-y.

NBFI, investment banking drove growth: The company’s top-line performance was mainly led by a strong performance in its non-banking financial institutions arm, where operating revenues surged 989% y-o-y to EGP 986.8 mn driven by the “transformation and development” of its NBFIs platform, the statement said. The investment bank unit saw its operating revenues more than double y-o-y to EGP 560 mn in 2023 driven by “strong brokerage operations on the back of a successfully augmented margin lending portfolio of EGP 1.2 bn,” the statement added.

Pouring funds back into the business: Beltone’s operating expenses rose 150% y-o-y to EGP 849.3 mn over 2023, as the company put focus on strategic hirings, deployment of new systems and other operating costs dictated by the company’s growth and transformation strategy, the statement said.

Why this matters: It is the first full-year earnings release Beltone has issued since CEO Dalia Khorshid was brought in post-acquisition by the UAE’s Chimera Capital to turn the business around after the company had struggled with profitability and strategy for several years. The turnaround has included a full new management team, a full book of new policies and procedures, a record rights issue to recapitalize the business, and its transformation into a data-driven organization.

BACKGROUND- Abu Dhabi-based investment firm Chimera acquired a majority stake in Beltone in October 2022. It overhauled the company’s team of senior executives and embarked on a company-wide restructuring following Chimera’s appointment of Khorshid as the group’s CEO. Beltone closed a huge EGP 10 bn capital increase in July.

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