SODIC’s bottomline more than doubles in 2Q 2023: Upmarket real estate deve loper SODI C reported net income of EGP 148 mn in 2Q 2023, up 126% y-o-y, according to the company’s latest earnings release (pdf). The company’s revenues for the quarter dipped 7% y-o-y to EGP 1.42 bn. Over the first six months of the year, the company’s bottomline rose 15% y-o-y to EGP 335 mn while revenue rose 7% to EGP 2.92 bn.

A strong 1H for sales…: Gross contracted sales were up 22% y-o-y to EGP 8.17 bn from the sale of 674 units during the first half of 2023. West Cairo projects accounted for 52% of gross contracted sales in 1H, followed by East Cairo projects (34%), and the company’s June development on the North Coast (15%).

…despite price pressures: The sales growth came even after the company slowed sales in 1Q to review selling prices amid rising construction costs. “Despite the limited launches in the first half of the year and the significant price increases to offset the effect of inflation we have achieved record sales,” said General Manager Ayman Amer.

Deliveries dip: The company’s deliveries in 1H 2023 fell 13% y-o-y, with 402 units delivered compared to 463 units during the same period last year. Of the 402 units delivered, 212 were in East Cairo, 189 in West Cairo, and one in the North Coast.

REMEMBER- SODIC is expanding in Sahel. The company acquired 180 acres of land south of its North Coast project Caesar in May. SODIC plans to invest over EGP 10 bn in the Caesar extension, which it expects to start work on later this year. The real estate developer also entered into a revenue-sharing partnership with local investment firm Al Safy Group at the beginning of this month that will see it develop a 440-feddan land plot on the North Coast.

MASHREQ NET INCOME DOUBLES IN 2Q-

Mashreq reports strong earnings growth in 2Q: Emirati lender Mashreq’s net incom e rose 139% y-o-y to AED 1.9 bn in 2Q 2023, up from AED 796 mn in the same period last year, according to its earnings release (pdf). The bottom-line y-o-y growth in 2Q 2023 was driven by an 84% increase in net interest income to AED 1.87 bn, as well as a 44% increase in ins., FX & other income which together brought in AED 458 mn.

A strong 1H performance: The lender’s net income also more than doubled to AED 3.5 bn in 1H 2023, up from AED 1.4 bn in the same period last year. Growth over the six-month period was driven by a 96% rise in net interest income, which came in at AED 3.6 bn.

Driving the growth: Growth in the lender’s loan portfolio — which climbed 5% YTD to AED 95 bn — and the high interest rate environment, it said. Meanwhile, deposits increased 11% YTD to AED 127 bn.

What they said: “Assessing Mashreq’s robust performance in the first half of 2023, it is evident that our strategic initiatives have been instrumental in shaping this success. With an exceptional 88% y-o-y increase in operating profit, rising to AED 3.7 bn, and a marked reduction in our cost-to-income ratio to 28.3%, the strength of our approach is clear,” Group CEO Ahmed Abdelaal said.

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