Wrapping up an earnings-heavy week, EFG Holding and Qalaa Holdings are also out with their latest set of financials.

EFG HOLDING SEES INCOME, REVENUES RISE IN 3Q

Our friends at EFG Holding saw its net income after tax and minority interest rise 76% y-o-y during the third quarter of the year to record EGP 697 mn, the company said in its latest earnings release (pdf). Revenues rose 68% y-o-y to reach EGP 5.0 bn during the quarter, driven by robust performances across all of the group’s lines of business.

Investment bank EFG Hermes saw another "buoyant quarter,” with its revenues jumping 87% y-o-y to EGP 2.7 bn, “supported by higher revenues generated by all its lines of business; particularly holding & treasury activities and brokerage.” Net income after tax and minority interest rose 68% y-o-y during 3Q 2024 to record EGP 274 mn.

The company’s NBFI arm EFG Finance reported revenues of EGP 1.1 bn during the quarter, up 68% y-o-y, with all of its business lines growing during the quarter — Tanmeyah’s revenues almost doubled and Valu’s revenues were up 36% y-o-y. EFG Finance’s net income jumped 349% y-o-y to EGP 203 mn in 3Q 2024, driven by higher profitability from Tanmeyah and Leasing.

The newly-rebranded Bank NXT reported a 20% y-o-y increase in net income to EGP 428 mn during 3Q 2024. The commercial bank reported a 38% y-o-y increase in revenues to record EGP 1.2 bn, supported by higher net interest income.

What they said: “Our third-quarter results stand as a clear testament to the resilience and strategic acumen that EFG Holding embodies. They also highlight the Group’s ability to withstand the negative impact of currency devaluation and persistent inflation in our home market, which has translated into higher employee and operating expenses across all three platforms, particularly at the Investment Bank. Our ability to achieve outstanding growth amidst a challenging economic landscape results from our ability to execute a solid strategy that allows us to expand our business in compelling markets such as Saudi Arabia,” Group CEO Karim Awad said in the release (pdf) accompanying the earnings.

The bigger picture: The group saw a 77% y-o-y jump in revenues during the first nine months of the year to record EGP 18.6 bn. Its net income after tax and minority interest was up 96% y-o-y during the nine-month period to sit at EGP 3.3 bn.

QALAA RECORDS IMPROVED REVENUES, LOWER BOTTOM LINE IN 2Q-

Qalaa Holdings saw its revenues grow by 64% y-o-y to EGP 38.2 bn in 2Q 2024, which the company attributed to “broadbased growth across the Group’s subsidiaries,” as well as ERC’s USD-denominated revenue, the company said in its latest earnings release (pdf). However, the firm recorded a consolidated net loss after minority interest of EGP 1.4 bn during the quarter — a 255% y-o-y increase in losses — which it said was down to the “increased non-operating expenses” and revaluation of Allied Crop and TAQA Arabia shares.

The company’s debt levels hurt its profitability during the quarter: The revaluation of shares coupled with legal costs associated with the restructuring and settlement of bank debt collectively led to the losses during the quarter, the firm said.

What they said:“Looking ahead, I remain confident in my positive outlook for the Group. Our portfolio companies’ cash flows are strong with very low levels of debt, and with growth achieved through efficiencies and small, incremental investments. Additionally, over the past couple of quarters we have taken huge steps in our debt settlement and restructuring strategy, placing Qalaa in a stronger and more favorable financial position,” Qalaa founder and chairman, Ahmed Heikal, said.

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