EFG Holding’s Revenue Drops 34% to $112.7M in Q1 2025 Due to Currency Devaluation
EFG Holding, based in Egypt, said its revenue for the first quarter fell by 34% compared to the same time last year, reaching $112.7 million (EGP 5.6 billion). This drop happened because last year’s revenue was unusually high due to the big fall in the value of the Egyptian pound against the US dollar.
First-Quarter Results
EFG Holding said on Wednesday that if foreign exchange (currency) gains were not included, its group revenues would have gone up by 31%. This shows strong growth in its three main business areas.
However, net profit (after tax and payments to other investors) dropped 34% compared to last year, reaching $24.2 million (EGP 1.2 billion).
Operating costs fell by 29% to $70.3 million (EGP 3.5 billion), mainly due to lower employee expenses and fewer expected loan losses. Because of this, the company’s net operating profit dropped 41% to $42.4 million (EGP 2.1 billion).
EFG Hermes, one of the top asset managers in the Middle East and North Africa (MENA), saw its revenues drop 54% to $57.7 million (EGP 2.9 billion). But without the effect of foreign exchange gains, revenues would have actually increased by 30%. Its net profit dropped 54% to $13.1 million (EGP 652 million), mostly due to weaker performance from its Holding and Treasury departments.
EFG Finance, another part of the group, saw a 23% increase in revenue to $26.8 million (EGP 1.3 billion), thanks to strong results from its companies Tanmeyah and Valu. Its net profit jumped 108% to $5.9 million (EGP 297 million), showing better performance across most of its businesses.
The group’s banking arm, Bank NXT, had an 11% increase in revenue to $28.2 million (EGP 1.4 billion). This came from higher interest income due to interest rate hikes and more interest-earning assets. Net profit rose 5% to $9.9 million (EGP 498 million), as revenue grew faster than costs.
Key Quote
“Our Asset Management business keeps growing, and we played a major role in big deals this quarter, like the IPO of Nice One in Saudi Arabia and the ADNOC Gas share sale in the UAE. This strengthens our role as a top financial advisor in the region,” said Karim Awad, Group CEO of EFG Holding. He is ranked 10th on Forbes Middle East’s list of Top 40 Asset Managers for 2025.
Planned Stock Listing
In March, EFG Holding’s board agreed to offer 20.49% of its fintech company Valu to shareholders and list its shares on the local stock exchange. After the listing, EFG will still control at least 67% of Valu through its other companies.
Valu recently got a fintech license from the Financial Regulatory Authority (FRA), allowing it to offer a full digital service to customers.
“Valu’s steps toward going public mark an important achievement for the company, highlighting its strong growth in Egypt and its role as a trusted financial services provider,” Awad said on Wednesday.
Published: 22th May 2025
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