Beltone swings to EGP 47.8 mn 2Q loss as costs outpace revenue growth

Beltone Holding swung to a net loss after tax and minority interest of EGP 47.8 mn in 2Q 2026, from net income of EGP 601.6 mn a year earlier, as operating expenses grew faster than revenue at the financial-services group, according to its latest earnings release (pdf). Operating revenue more than doubled to EGP 7.36 bn in the quarter, up 112% y-o-y. But operating expenses rose 157% to EGP 6.36 bn, leaving net operating income flat at EGP 1.00 bn and compressing the net operating-profit margin to 14% from 29%.

The weak second quarter pulled down first-half earnings. Net income after tax and minority interest fell 50% y-o-y to EGP 646.8 mn in 1H 2026, even as consolidated operating revenue jumped 125% to EGP 14.18 bn. Net operating income rose just 16% to EGP 2.07 bn, with the operating margin narrowing to 15% from 28%.

The drivers: The company said the squeeze reflected the cost of scaling up its platform following the consolidation of Baobab. G&A expenses rose 287% y-o-y to EGP 7.3 bn, which the company attributed to incorporating Baobab’s operations, adding its branch network across several African markets, and higher employee and operating-infrastructure costs. The larger lending book also required more provisions: Expected credit-loss charges rose to EGP 237 mn in 1H 2026 from EGP 35 mn a year earlier, while impairment charges on financial assets climbed to EGP 478 mn from EGP 86 mn. Beltone also recorded EGP 395 mn in foreign-exchange losses during 2Q.

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