Efg-hold.gdr S Regulatory News (EFGD)

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EFG HOLDING REPORTS Third QUARTER YEAR 2025 RESULTS

with Group net profit after tax and minority interest of EGP846 million; ON OPERATING REVENUE OF EGP6.3 BILLION

Cairo, November 19th, 2025: EFG Holding reports a strong set of results for the third quarter 2025, with Group net profit after tax and minority interest of EGP846 million on operating revenues of EGP6.3 billion. The Group's total assets stood at EGP243.7 billion at the end of September 2025.

   Key Highlights

· EFG Holding delivered a strong third quarter, with Group revenues up 27% Y-o-Y to EGP6.3 billion, driven mainly by growth at BANK NXT and EFG Finance, offsetting lower revenues at EFG Hermes, which faced a high comparison period from last year's fx and investment gains;

· Group operating expenses (including provisions & ECL) grew 19% Y-o-Y, largely due to higher G&A expenses across all platforms, alongside increased employee costs and provisions at EFG Finance. Notably, employee expenses inched 9% Y-o-Y, as higher fixed costs reflecting salary adjustments for inflation in Egypt and the impact of slightly weaker EGP on the translation of regional expenses were offset by lower variable compensation;

· With revenue growth outpacing cost increases, net operating profit and net profit before tax grew 41% and 42% Y-o-Y, respectively. Group taxes fell 12% Y-o-Y on deferred tax gains, leading to a 22% Y-o-Y increase in net profit after tax and minority interest to reach EGP846 million, as BANK NXT and EFG Finance profits fully offset EFG Hermes' losses.

· EFG Hermes delivered an overall weak third quarter despite strong performance from its Sell-side and Buy-side businesses which achieved strong Y-o-Y revenue growth of 27% and 16%, respectively. However, the overall performance was weighed down by losses in Holding & Treasury Activities, following last year's exceptional gains on investments / seed capital and fx. As a result, total revenues fell 20% Y-o-Y to reach EGP2.1 billion;

· Holding & Treasury Activities recorded EGP220 million in losses versus EGP781 million in revenues in 3Q24, mainly due to unrealized losses on investments / seed capital and net interest losses, compared to substantial unrealized capital and fx gains a year earlier;

· EFG Hermes operating expenses (including provisions & ECL) rose 10% Y-o-Y to EGP2.1 billion, mainly on higher G&A expenses, with a modest 2% Y-o-Y increase in employee expenses, due to salary adjustments for inflation in Egypt and weaker EGP translation impact, partly offset by lower variable compensation. Other G&A expenses jumped 34% amid inflation, USD denominated costs and one-off costs related to the pre-operating expenses of the Wealth Management business. Meanwhile, Provisions & ECL recorded a net charge of EGP7 million, largely due to Brokerage margin exposures;

· As a result, net operating profit dropped 95% Y-o-Y and EFG Hermes recorded a net loss before tax of EGP57 million. Lower tax charges provided partial relief, bringing net loss after tax and minority interest to EGP171 million, compared to a net profit of EGP270 million in 3Q24, primarily due to Holding & Treasury Activities' losses. Excluding Holding & Treasury Activities, EFG Hermes recorded a net profit after tax and minority interest of EGP543 million in 3Q25, up 31% Y-o-Y.

· EFG Finance delivered another strong quarter in 3Q25, with revenues up 38% Y-o-Y to EGP1.5 billion, supported by broad-based growth across nearly all lines of business. Valu led the performance with a 79% Y-o-Y increase in revenues, driven by higher securitization gains, higher net fees & commissions and a 34% rise in loan issuances. Tanmeyah posted 9% Y-o-Y growth, supported by higher interest income, though partially offset by lower fee income. Leasing revenues grew 28% Y-o-Y on higher net interest income and portfolio expansion, while Factoring rose 12% Y-o-Y, mainly on stronger net interest income despite softer fees;

· EFG Finance operating expenses (including provisions & ECL) rose 34% Y-o-Y to EGP1.1 billion, largely due to increased employee expenses, higher provisions and inflation-driven G&A costs. Other G&A expenses rose 12% Y-o-Y, driven by third party collection and listing fees, card issuance and activation costs at Valu and inflationary and USD linked IT expenses. Provisions & ECL surged 93% Y-o-Y, mainly on higher ECL booked by Tanmeyah and to a lesser extent increased provisions at Valu reflecting growth in operations;

· Despite the rise in expenses, revenue growth outpaced costs, pushing net operating profit and net profit before taxes up 48% and 46% Y-o-Y, respectively. Taxes increased 43% Y-o-Y, reflecting stronger profitability-especially at Valu. Consequently, net profit after tax and minority interest increased 28% Y-o-Y to EGP261 million, driven chiefly by Valu's strong performance, followed by Leasing.

· The Commercial Bank delivered a very strong quarter, with its revenues increasing 119% Y-o-Y to EGP2.7 billion in 3Q25, supported by a larger interest earning asset base, which resulted in a 30% increase in net interest income, as well as significant other revenues from the sale of non-core assets. This was also enhanced by a further 33% Y-o-Y increase in net fees & commissions;

· BANK NXT operating expenses (including provisions & ECL) rose 30% Y-o-Y to EGP672 million in 3Q25, primarily due to a significant increase in office and occupancy costs resulting from the rent of the new head office space, followed by higher employee expenses reflecting salary adjustments and new hires, as well as higher other G&A expenses mainly related to outsourced and consultancy fees and marketing costs. This increase was offset by an 11% decline in provisions and ECL, reflecting a normalized ECL charge pattern as 2024 included higher provisions to enhance coverage ratio of stage 3 NPLs;

· The Bank's net profit after tax added 245% Y-o-Y to reach EGP1.5 billion (of which the Group's share is EGP756 million) in 3Q25, 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@efghldg.com

Tel: +20 (0)2 35356412

www.efghldg.com