Egypt’s Contact Financial Holding reports a 71% increase in net income for the third quarter, reaching $4.5 million
Egypt’s Contact Financial Holding reported a 71% increase in its profit for the third quarter, reaching $4.5 million (EGP 223 million). This growth was due to its business strategy that focused on meeting market demand.
Q3 Results
Contact Financial Holding’s total income reached $14 million (EGP 692 million) in the third quarter of 2024, which is a 36% increase compared to last year. The total financing portfolio grew to $419.8 million (EGP 20.8 billion).
The main factors driving this growth were higher demand for personal and auto loans, as well as strong performance in mortgage and working capital financing. Of the total income, 85% came from financing, and 15% came from insurance.
The financing division saw a 72% increase in net income compared to last year, reaching $4.1 million (EGP 204 million). This was mainly due to a 64% rise in new loans compared to the previous quarter. However, for the first nine months of the year, net income from financing dropped 23% compared to last year, totaling $6.3 million.
The insurance division also grew, with gross written premiums (GWPs) rising by 50% to $36.3 million (EGP 1.8 billion) in the first nine months of the year. This was mainly due to the improved performance of Sarwa Life and Sarwa Insurance, which expanded their products and market reach.
In the automotive sector, the number of paid dealer subscriptions on the ContactCars.com platform grew by 52% year-on-year, and average traffic on the platform increased by 80% year-on-year during the first nine months. Looking ahead to the fourth quarter, the company plans to focus on growing its products and increasing the number of subscribed dealers in Alexandria.
Dubai branch
Contact opened its first branch in Dubai in September and launched ‘Contact Credit’ in the UAE as part of its global growth plan.
The company aims to offer financial and insurance services to Egyptians living in the UAE, making it easier for them to fund assets and get insurance in Egypt without needing to travel back home.
The new office is located in Dubai’s Business Bay area and was officially opened on September 9. The ceremony was attended by Said Zater, CEO of Contact Financial Holding, and Dr. Hossam Hussein Ismail, the Consul General of Egypt in Dubai and the Northern Emirates.
Contact’s management stated that it will continue looking for opportunities to expand further into the GCC region and beyond.
Published: 19th November 2024
Also Read:
Saudi Aramco, Sinopec start refining, petrochemical plant in China
Elie Saab Marks 45 Years of Fashion Design in Riyadh
EFG Hermes issues $13.5M securitized bonds for Valu
