Valu’s net income rose 43% in 1H 2026, but quarterly growth slowed sharply in 2Q

Consumer-finance platform Valu grew net income 43% y-o-y in 1H 2026 to EGP 486 mn, according to its latest earnings release (pdf). Gross revenues rose 29% to EGP 3.2 bn, and gross merchandise value (GMV) climbed 38% to EGP 14.6 bn.

Growth cooled markedly in the second quarter. Valu generated roughly EGP 265 mn in 2Q, according to EnterpriseAM calculations from the 1H results and its previously reported 1Q figures, up c. 23% y-o-y, a sharp step down from 1Q’s 78%. Gross revenues of c. EGP 1.68 bn were up roughly 20% y-o-y, half the 40% pace of 1Q.

Transactions kept accelerating. Valu processed 5.2 mn transactions in 1H, up 45% y-o-y, and transaction frequency rose to 12.4x per customer from 9.8x a year earlier. It ended the half with 955k active customers and more than 9.8k merchant partners, average daily GMV of EGP 81.1 mn, and c. 29k daily transactions.

The product mix is broadening. The core “U” buy-now-pay-later product remained the largest, with GMV up 22% y-o-y to EGP 7.82 bn. Prepaid-card spending jumped 64% to EGP 3.3 bn across 300k activated cards, while auto-financing product Shift nearly doubled, with GMV up 98% to EGP 2.87 bn. Ulter and Loans rose 26% to EGP 740 mn, and the marketplace Shop’IT has generated EGP 300 mn in GMV since launch.

Asset quality held up. Valu’s non-performing loan (NPL) ratio stood at 1.16%, and its market share reached 21% as of May. Its active unbanked customer base grew 41% y-o-y to 390k, generating EGP 2.11 bn in GMV across 872k transactions in 1H.

Why it matters: Valu’s 1.16% NPL ratio comes amid heightened scrutiny of the country’s rapidly growing consumer finance industry, where concerns have centered on whether strong lending is pushing borrowers beyond their repayment capacity. Consumer financing by NBFIs surged 57% y-o-y to EGP 96.3 bn in 2025. However, sector-wide NPLs remained below 3% at the end of 2025, suggesting that the rapid expansion has so far not translated into a broad deterioration in asset quality.

Funding growth: Valu had EGP 24.08 bn in authorized credit facilities from 28 financial institutions. It closed an EGP 881 mn securitization in 2Q — its 22nd issuance — taking cumulative securitized volume to EGP 21.2 bn.

What’s next: The company is advancing to its next phase of growth through “the successful launch in Jordan [in May] and the planned introduction of SME financing in Egypt,” CEO Walid Hassouna said in the release. Valu is also investing in its proprietary technology infrastructure, including a new data center, as it expands into new markets and segments.

Container volumes lift ALCN earnings

Alexandria Container and Cargo Handling’s (ALCN) net income rose 18% y-o-y to EGP 3.8 bn in 1H 2026, according to a disclosure to the bourse (pdf). Revenues increased 3% to EGP 4.58 bn, while gross income grew 5% to EGP 3.54 bn. The company’s gross income margin widened to 77.4% from 76.1% a year earlier.

Behind growth: Container throughput increased 8% y-o-y during the six-month period, outpacing the 3% increase in revenues. Meanwhile, operating cashflows slipped 7% y-o-y to EGP 2.65 bn, while net working capital rose 32% from the end of 2025 to EGP 6.27 bn.

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