2Q26 results

EFG Holding S.A.E.

13 August 2026

 

http://www.rns-pdf.londonstockexchange.com/rns/5424Q_1-2026-8-13.pdf

http://www.rns-pdf.londonstockexchange.com/rns/5424Q_2-2026-8-13.pdf

http://www.rns-pdf.londonstockexchange.com/rns/5424Q_3-2026-8-13.pdf

EFG HOLDING REPORTS SECOND QUARTER YEAR 2026 RESULTS

with Group net operating profit of EGP2.0 billion and net profit after tax and minority interest of EGP776 million; ON OPERATING REVENUES OF EGP6.5 BILLION

Cairo, August 13^th, 2026: EFG Holding demonstrated resilience in 2Q26, with Group net operating profit of EGP2.0 billion and Net profit after tax and minority interest of EGP776 million on operating revenues of EGP6.5 billion. The Group's total assets stood at EGP260.7 billion at the end of June 2026.

   Key Highlights

EFG Holding

·      Against a backdrop of heightened geopolitical uncertainty and a volatile start to 2026, EFG Holding maintained its resilient performance, successfully navigating macroeconomic headwinds. Group revenues increased 7% Y-o-Y to EGP6.5 billion in 2Q26, supported by strong performance led by BANK NXT and EFG Finance platforms. Revenue growth was primarily driven by BANK NXT's expanding loan book, higher securitization gains at Valu. The increase was partially offset by EFG Hermes's revenues declining 13% Y-o-Y, pressured by realized & unrealized losses on investments/seed capital incurred by Holding & Treasury Activities, in addition to lower Investment Banking revenues.

·      EFG Holding operating expenses (including provisions & ECL) increased 11% Y-o-Y to EGP4.5 billion in 2Q26, largely due to higher employee costs across the three verticals, increased other G&A expenses at EFG Hermes, and growth in BANK NXT and Valu's operations, alongside the persistent inflationary pressures witnessed in Egypt. Notably, Group employee expenses increased 12% Y-o-Y, on higher variable component of compensation in tandem with the growth in revenues.

·      With the increase in Group expenses outpacing the increase in revenues, EFG Holding's net operating profit and net profit before taxes slipped 1% Y-o-Y and 7% Y-o-Y, respectively. Group taxes declined 36% Y-o-Y, due to the booking of deferred tax gains on seed capital unrealized losses and fx losses. Accordingly, EFG Holding's net profit after tax and minority interest slipped 3% Y-o-Y to reach EGP776 million in 2Q26, pressured primarily by non-cash losses incurred by EFG Hermes, particularly Holding & Treasury Activities.

EFG Hermes

·      EFG Hermes recorded a decline in overall performance during the quarter, despite solid Y-o-Y growth from Brokerage and the Buy Side. This was primarily attributed to NAV losses driven by fx incurred by Holding & Treasury Activities due to the very sharp appreciation of the EGP against the USD at the close of the quarter as the unit continues to face a very volatile currency market, compared to strong realized & unrealized gains on investments/seed capital recorded in the comparable period. In addition, lower revenues from Investment Banking also weighed down on the results especially in the context of a strong comparable quarter. As a result, EFG Hermes revenues declined 13% Y-o-Y to EGP2.4 billion in 2Q26.

·      EFG Hermes operating expenses (including provisions & ECL) increased 12% Y-o-Y to EGP2.4 billion, mainly on higher employee expenses and higher other G&A expenses. Employee expenses rose 11% Y-o-Y, on higher accruals for variable compensation in addition to higher monthly commissions booked by Brokerage, salary increases in Egypt reflecting elevated inflation, and to a lesser extent the translation impact of the EGP devaluation on regional salaries. Likewise, other G&A expenses increased 19% Y-o-Y amid inflation, the translation of regional operations' expenses to EGP and higher expenses related to the Saudi Education fund. Meanwhile, EFG Hermes released provisions & ECL of EGP5 million, predominantly on Private Equity's legacy receivables and Holding's investment position.

·      As a result, EFG Hermes recorded net operating losses and net losses before taxes of EGP43 million and EGP128 million, respectively. EFG Hermes booked net tax gains, on deferred tax gains on unrealized losses on investments and fx losses. Consequently, EFG Hermes reported a net loss after tax and minority interest of EGP163 million, compared to profits of EGP268 million in 2Q25, on higher losses incurred by Holding & Treasury Activities. Excluding Holding & Treasury Activities net losses in both periods, EFG Hermes recorded a net profit after tax and minority interest of EGP694 million, up 50% Y-o-Y.

EFG Finance

·      EFG Finance witnessed another resilient quarter, with its revenues increasing 15% Y-o-Y to EGP2.0 billion in 2Q26, underpinned by higher revenues generated by Finance Holding, followed by Valu driven by higher securitization gains.

·      EFG Finance operating expenses (including provisions & ECL) remained broadly unchanged Y-o-Y at EGP1.2 billion, as the increase in employee expenses was muted by the decrease in provisions & ECL. Employee expenses increased 12% Y-o-Y, on higher salaries booked across the Platform to echo inflation in Egypt. Other G&A expenses were broadly flat Y-o-Y, as one-off costs related to Valu's listing in the comparable quarter, offset the higher operating expenses associated with Valu's ongoing business expansion. Meanwhile, provisions & ECL decreased 10% Y-o-Y, on provisions release witnessed by Corp Solutions, despite higher charges at Valu and Tanmeyah.

·      EFG Finance net operating profit and net profit before taxes increased 47% Y-o-Y and 48% Y-o-Y, respectively, as the increase in revenues outpaced the increase in expenses. Taxes declined 30% Y-o-Y, on lower profitability generated by Leasing and Tanmeyah. Consequently, EFG Finance net profit after tax and minority interest more than doubled, up 132% Y-o-Y to EGP535 million in 2Q26, on higher profitability generated by Finance Holding.

BANK NXT

·      Another strong quarter for the Commercial Bank, with its revenues rising 30% Y-o-Y to EGP2.1 billion in 2Q26, on the back of higher net interest income and net fees & commissions, supported by a larger interest earning asset base.

·      BANK NXT operating expenses (including provisions & ECL) increased 22% Y-o-Y to EGP845 million, primarily due to higher employee costs driven by new hires and inflation, as well as higher other operating expenses mainly related to IT expenses, outsourced fees, collection fees, cards issuance fees, regulatory expenses and stamp duty. Provisions & ECL rose 43% Y-o-Y, on higher ECL for the commercial bank's clients in line with the 50% increase in the loan book.

·      The Bank's net profit after tax added 33% Y-o-Y to reach EGP788 million (of which the Group's share is EGP404 million) in 2Q26, 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: [e-mail]

Group Head of Strategy

Basant AbdelMonsef

Email: [e-mail]

Tel: [phone]

www.efgholding.com

 

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