Cairo – August 19, 2024: Reporting a net income after tax and minority interest of LE 817 million during H1 2024 in its latest earnings release, Beltone Holding highlighted its significant turnaround from a loss of LE 146 million in the same period last year.
In its report, Beltone Holding revealed that its operating revenue surged year-on-year, reaching LE 2.9 billion in the first half of 2024, recording a significant increase of 818 percent year-on-year. This highlighted the success of Beltone’s aggressive turnaround and growth strategy, it noted.
Beltone’s revenue growth was driven by strong performances across both its Investment Bank and Non-Banking Financial Institutions (NBFIs) sectors which expanded the net operating profit margin to 64 percent, the report stated.
Net profit after Tax and Minority Interest recorded LE 817 million during the period compared to a loss of LE 146 million during the first half of 2023,
The operating revenue for the second quarter of 2024 alone reached LE 1.6 billion, reflecting an 822 percent increase compared to the previous year. Net operating profit also saw a significant rise, hitting LE 1 billion with an operating profit margin of 62 percent.
Dalia Khorshid, CEO of Beltone Holding, commented on the results, “This growth reflects not only our financial success but also the strategic initiatives we’ve undertaken, such as expanding into high-impact areas like mortgage and venture capital. The transformation we’ve led goes beyond the numbers; it’s about reinforcing our position as a market leader and establishing a new benchmark in the financial services sector.”
The Investment Bank division reported operating revenue of LE 471 million for H1 2024, marking a 327 percent year-on-year growth and accounting for 16 percent of the company’s consolidated revenue. This performance was driven by an expansion in brokerage operations and increased commissions from margin lending.
Within the asset management sector, the company maintained its position as Egypt’s largest non-bank affiliated asset manager, it explained, with assets under management reaching LE 27.7 billion in H1 2024, up from LE 21.5 billion in the same period last year.
The investment banking division also saw its revenue more than triple year-on-year due to expanded services in equity, debt, and advisory, the report highlighted.
The NBFIs platform reported an operating revenue reaching LE 2.4 billion, a 13-fold increase year-on-year, driven by significant expansions in leasing, factoring, and consumer finance.
The platform’s portfolio grew sevenfold to LE 15.2 billion in the first six months of the year.
The main contributors to portfolio growth within the NBFIs platforms were the leasing and factoring and consumer finance business lines, which grew by 6-fold and 5-fold year-on-year, respectively.
Additionally, the expanded offerings within the NBFIs platform significantly contributed to its success, with the mortgage finance business line achieving a portfolio of LE3.3 billion and capturing a market share of 22.3 percent during H1 2024.
The CEO also highlighted the company’s recent achievements, including the Financial Regulatory Authority’s approval of Beltone’s SME finance license and a partnership with CI Venture Capital to manage a $30 million fund.
In the venture capital domain, Beltone executed three new equity investments in BirdNest, Sylndr, and Trella, alongside follow-up rounds for Way-Up Sports and Ariika. On the debt side, the company closed a venture debt transaction with Sylndr. Venture debt outstanding portfolio stood at LE109 million as at the end of H1 2024.
Khorshid added that Beltone Mortgage rapidly grew to a leading market position, securing over 22 percent of the market share and addressing the growing demand for real estate finance in Egypt. The launch of a $100 million private credit platform through Beltone Investment Holding aims to support Egyptian exporters with essential financial resources, she noted.
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