EFG Holding reported a 7 per cent year-on-year increase in second-quarter revenues, as growth in its commercial banking and non-bank financial services businesses helped offset a weaker performance at its investment banking division amid market volatility and currency fluctuations.
The Egypt-based financial services group said revenues reached EGP6.5 billion in the three months to June 2026, supported by continued expansion at Bank NXT and EFG Finance. The company said the quarter unfolded against a backdrop of geopolitical uncertainty, regional market volatility and ongoing macroeconomic pressures.
Revenue at Bank NXT increased 30 per cent year-on-year to EGP2.1 billion, driven by growth in its loan book and higher net interest income. Meanwhile, EFG Finance recorded a 15 per cent rise in revenues to EGP2 billion, helped by stronger securitisation gains at Valu and contributions from its finance businesses.
Investment banking arm EFG Hermes generated revenues of EGP2.4 billion, with results affected by market and currency volatility as well as lower investment banking activity compared with a strong second quarter last year.
Group net profit after tax and minority interest stood at EGP776 million, down 3 per cent from a year earlier. The company said profitability was supported by lower tax expenses, while non-cash losses at EFG Hermes, particularly within its holding and treasury activities, weighed on the bottom line.
“Our focus remains on maintaining balance sheet resilience, managing costs prudently, and pursuing selective growth across our core platforms,” said Karim Awad, Group CEO of EFG Holding. “The operating environment across the region remains unsettled, but the Group’s diversified model continues to enable us to navigate these conditions while preserving profitability.”
Awad added that the company would continue expanding its product offering and strengthening its presence across business lines. “We expect to introduce new businesses in the near term, reflecting our commitment to building a more scalable and future-ready company.”
Within its business segments, EFG Finance more than doubled net profit after tax and minority interest to EGP535 million, benefiting from higher revenues at Finance Holding and Valu. Operating expenses remained broadly stable as lower credit loss provisions offset higher employee costs.
Bank NXT posted a 33 per cent increase in net profit after tax to EGP788 million, supported by higher net interest income, fees and commissions and continued loan book growth. EFG Holding’s share of the bank’s profit amounted to EGP404 million.
The company said the quarter highlighted the growing contribution of its commercial banking and non-bank financial services operations, while its investment banking business continued to navigate challenging market conditions. EFG Holding said it remains focused on disciplined execution, balance sheet resilience and balanced growth amid ongoing macroeconomic and geopolitical uncertainty.
Source: Khaleej Times