Efg-hold.gdr S Regulatory News (EFGD)

http://www.rns-pdf.londonstockexchange.com/rns/0753F_1-2026-5-20.pdf

http://www.rns-pdf.londonstockexchange.com/rns/0753F_2-2026-5-20.pdf

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EFG HOLDING REPORTS FIRST QUARTER YEAR 2026 RESULTS

with Group net operating profit of EGP2.5 billion and Net profit after tax and minority interest of EGP1.0 billion; ON OPERATING REVENUE OF EGP6.6 BILLION

Cairo, May 20th, 2026: EFG Holding started 2026 on a good footing, with Group net operating profit of EGP2.5 billion and Net profit after tax and minority interest of EGP1.0 billion on operating revenues of EGP6.6 billion. The Group's total assets stood at EGP270.2 billion at the end of March 2026.

   Key Highlights

· EFG Holding started a very turbulent 2026 on a good footing, with Group revenues rising 18% Y-o-Y to EGP6.6 billion in 1Q26. Revenue growth was driven by strong performance across all three verticals, underpinned by BANK NXT's expanding loan book, Holding & Treasury Activities' solid unrealized gains on investments/seed capital, and Valu's higher securitization gains and increased issuances;

· EFG Holding operating expenses (including provisions & ECL) increased 16% Y-o-Y to EGP4.1 billion in 1Q26, reflecting EFG Finance's growth in operations, higher provisional charges, and the persistent inflationary pressures witnessed in Egypt. Notably, Group employee expenses remained broadly flat, declining slightly by 2% Y-o-Y, on lower accruals for the variable component of compensation in light of a the very volatile geopolitical situation stemming from the ongoing US/Israel-Iran war;

· With the increase in Group revenues outpacing the increase in expenses, EFG Holding's net operating profit and net profit before taxes both increased 20% Y-o-Y. Higher than the growth of revenues, a testimony to strong operational performance. On the other hand, Group taxes rose 107% Y-o-Y, on deferred taxes on fx gains and seed capital unrealized gains and higher tax charges related to profitability generated by Egyptian entities. Accordingly, EFG Holding's net profit after tax and minority interest declined 14% Y-o-Y to reach EGP1.0 billion.

· Almost all EFG Hermes's business lines reported Y-o-Y growth in revenues in 1Q26, with Holding & Treasury Activities being the largest contributor to the increase, benefiting from solid unrealized gains driven by fx as the EGP devalued c.14% in March 2026. As a result, fx gains overshadowed the NAV decline in USD (due to adverse market conditions). Additionally, Brokerage and the Buy Side posted Y-o-Y increase, while Investment Banking revenues declined, weighed down by a strong comparable base. As a result, revenues increased 9% Y-o-Y to EGP3.1 billion;

· EFG Hermes operating expenses (including provisions & ECL) came flat Y-o-Y at EGP2.0 billion, on a 10% decline in employee expenses due to lower variable compensation, while other G&A expenses rose 17% amid inflation and recurring expenses related to Private Equity's Saudi Education fund that were not yet recorded in the comparable period. Meanwhile, provisions & ECL recorded a net charge of EGP20 million, on Private Equity and Brokerage lines of business;

· As a result, net operating profit and net profit before taxes increased 31% Y-o-Y and 34% Y-o-Y, respectively. Taxes increased Y-o-Y on the back of deferred taxes on fx gains and unrealized gains on investments, and a lower comparable quarter which included deferred tax gains on unrealized losses on investments. Consequently, EFG Hermes' net profit after tax and minority interest dropped 5% Y-o-Y to EGP619 million, on lower profitability generated by Investment Banking, which muted the increase in Holding & Treasury Activities profits. 

· EFG Finance delivered a strong start to the year with revenues rising 20% Y-o-Y to reach EGP1.6 billion. Valu led the performance with an 85% Y-o-Y increase in revenues, on the back of higher issuances and securitization gains, followed by Corp Solutions, while Tanmeyah's revenues came broadly flat Y-o-Y;

· EFG Finance operating expenses (including provisions & ECL) increased 48% Y-o-Y to EGP1.3 billion, due to higher provisions & ECL, other G&A expenses, and to a lesser extent higher employee expenses. Other G&A expenses rose 28% Y-o-Y, predominantly on higher costs associated with Valu's growth in operations and increased issuances, alongside the inflationary environment. Provisions & ECL increased 335% Y-o-Y, on higher charges recorded by Valu in line with the growth in its outstanding portfolio, alongside a lower base comparable quarter which included releases. Leasing also recorded higher provisional charges consistent with the expansion of its outstanding portfolio, followed by Tanmeyah;

· With the increase in operating expenses surpassing the increase in revenues, EFG Finance net operating profit and net profit before taxes slipped 37% Y-o-Y and 47% Y-o-Y, respectively. Consequently, EFG Finance net profit after tax and minority interest dropped 79% Y-o-Y to reach EGP61 million, predominantly on a non-operational fx loss of EGP116 million incurred by Finance Holding, and lower profitability generated by Tanmeyah and Leasing.

· The Commercial Bank witnessed a strong first quarter, with its revenues increasing 34% Y-o-Y to EGP1.9 billion, largely driven by higher net interest income, in addition to growth in interest earning assets;

· BANK NXT operating expenses (including provisions & ECL) rose 26% Y-o-Y to EGP788 million in 1Q26, primarily due to an increase in office and occupancy resulting from the rent of the new head office space, as well as higher other G&A expenses mainly related to IT expenses, outsourced and consultancy fees, followed by higher salaries. Similarly, provisions & ECL increased 18% Y-o-Y, largely on a lower comparable period which included write up on assets reverted to the bank;

· The Bank's net profit after tax added 39% Y-o-Y to reach EGP691 million (of which the Group's share is EGP354 million) in 1Q26, as revenue growth outpaced the growth in expenses.

For full report and financial statements, please click on the links on top of the page.

For further information:

Investor Relations Contacts

Email: InvestorRelations@efghldg.com

Group Head of Strategy

Basant AbdelMonsef

Email: babdelmonsef@efgholding.com

Tel: +20 (0)2 35356412

www.efgholding.com