Beltone Holding, a fast-growing financial institution, has made a successful turnaround in H1 2024 posting a net profit after tax and minority interest of EGP817 million ($16.74 million). This is compared to a loss of EGP146 million during the first half of 2023.

 

Beltone’s successful execution of its turnaround and growth strategy led to a significant surge in consolidated top-line performance, with operating revenue of EGP2.9 billion, recording a significant increase of 818% year-on-year. 

 

Revenue growth was driven by strong performances on both the Investment Bank and Non-Banking Financial Institutions (NBFIs) fronts. Recorded These unprecedented results were driven by the strong performances of both the Investment Bank and Non-Banking Financial Institutions (NBFIs), which expanded the net operating profit margin to 64%.

 

Q2 performance

During the second quarter of 2024, Beltone Holding recorded operating revenue of EGP1.6 billion, reflecting an 822% year-on-year increase. Net operating profit reached EGP1 billion, with the operating profit margin reaching 62%.

 

“This growth reflects not only our financial success but also the strategic initiatives we’ve undertaken, such as expanding into high-impact areas like mortgage and venture capital. The transformation we’ve led goes beyond the numbers; it’s about reinforcing our position as a market leader and establishing a new benchmark in the financial services sector,” said Dalia Khorshid, CEO of Beltone. 

 

“In the first half of the year, Beltone Holding has taken remarkable strides in expanding our operational footprint. The Financial Regulatory Authority's recent approval of our SME finance licence is a testament to our deep commitment to empowering small and medium enterprises, which are the backbone of our economy. Our partnership with CI Venture Capital to manage a $30 million fund is another chapter in our journey to support the most promising startups across diverse sectors. 

 

Beltone Mortgage’s rapid ascent

“Meanwhile, Beltone Mortgage’s rapid ascent to a leading market position, securing over 22% of the market share, addresses the growing local demand for real estate finance as Egypt’s fastest mortgage provider. Additionally, the launch of our $100 million private credit platform through Beltone Investment Holding is a strategic move to bolster Egyptian exporters, ensuring they have the financial resources needed to thrive in a competitive global market. Together, these initiatives tell a story of a company that is not only growing but is deeply invested in the economic fabric of our country,” added Khorshid.

 

Investment Bank continued its strong performance, achieving operating revenue of EGP471 million during H1 2024, marking a 327% year-on-year growth. This accounted for 16% of the company’s consolidated revenue. 

 

This exceptional performance was primarily driven by a significant expansion in brokerage operations, leading to higher commissions due to an increase in the margin lending portfolio.

 

In the asset management sector, Beltone maintained its position as Egypt’s largest non-bank affiliated asset manager, with assets under management (AUMs) reaching EGP27.7 billion in 1H2024, up from EGP21.5 billion in the same period in 2023. Similarly, the investment banking division’s revenue more than tripled year-on-year, driven by an expanded offering in equity, debt, and advisory services.

 

Beltone’s NBFIs platform witnessed an unprecedented surge in operating revenue, reaching EGP2.4 billion during H1 2024, marking a 13-fold year-on-year increase. This growth was attributed to significant expansions within its offerings, leading to substantial disbursements across its various subsidiaries. The platforms’ portfolio grew sevenfold year-on-year to reach EGP15.2 billion during H1 2024.

 

Portfolio growth

The main contributors to portfolio growth within the NBFIs platforms were the leasing and factoring and consumer finance business lines, which grew by 6-fold and 5-fold year-on-year, respectively. Additionally, the expanded offerings within the NBFIs platform significantly contributed to its success, with the mortgage finance business line achieving a portfolio of EGP3.3 billion and capturing a market share of 22.3% during H1 2024.

 

In the venture capital domain, Beltone Venture Capital executed three new equity investments in BirdNest, Sylndr, and Trella, alongside two follow-up rounds for Way-Up Sports and Ariika, all completed in H1 2024. On the debt side, the company successfully closed a venture debt transaction with Sylnder. Venture debt outstanding portfolio stood at EGP109 million as at the end of H1 2024.--TradeArabia News Service