Beltone Holding continued its profitable streak in 1Q 2024, recording net income of EGP 514 mn compared to a net loss of EGP 52 mn in 1Q 2023, which the company attributed to the “growth driven by the restructuring and turnaround strategy,” in its latest earnings release (pdf) and accompanying press release (pdf). Beltone brought in EGP 1.33 bn in operating revenue over the same quarter, up 812% y-o-y.

NBFI, investment bank drove the topline: Beltone’s non-banking financial institution arm saw “remarkable growth, capturing impressive market shares across the platform,” the statement said. The platform’s operating revenues surged 1,297% y-o-y to EGP 1.04 bn, due to strong portfolio growth from the leasing and factoring, consumer finance, microfinance and mortgage finance business lines. The company’s investment bank unit saw its operating revenues rise 355% y-o-y to EGP 236 mn as brokerage operations rose “on the back of higher commissions as well as successfully augmenting margin lending portfolio to EGP 1.24 bn,” the statement added.

Investing in itself: The company’s operating expenses more than tripled in the quarter to EGP 463 mn. Some EGP 113 mn of the operating expenses went to the investment bank “due to the restructuring costs including new systems and strategic hires entailed by the company’s growth strategy,” the statement said.

Why this matters: Last year was a turning point for Beltone after Abu Dhabi-based investment firm Chimera acquired a majority stake in the company in October 2022 and brought in CEO Dalia Khorshid. 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.

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