Cairo-Headquartered Beltone Holding Achieves Net Profit Of EGP514 Million In Q1 Of 2024 The company's consolidated financial and operational results for the period ending March 31, 2024 revealed remarkable growth.
You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.
Beltone Holding, a Cairo-headquartered financial institution specializing in various areas of finance and investment, has continued to reap the benefits of its turnaround and growth strategy that drew consolidated top line growth. Indeed, it has reported that its operating revenue grew 812% year-on-year to a record EGP1.33 billion during the first quarter of 2024.
The company's consolidated financial and operational results for the period ending March 31, 2024 further revealed that this remarkable growth was driven by the robust expansion of its non-banking financial institutions (NBFIs) platform, coupled with the exceptional performance of its investment bank.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) recorded EGP458 million during Q1 of 2024. Net profit recorded EGP514 million during the period, compared to a net loss of EGP52 million during Q1 of 2023.
The investment bank's solid performance significantly contributed to these results, with operating revenue increasing by 355% year-on-year to EGP236 million. This growth was primarily driven by robust brokerage operations, supported by higher commissions, and successful augmentation of the margin lending portfolio to EGP1.24 billion, representing a remarkable 675% year-on-year increase.
Related: For Egypt's Entrepreneurs, Opportunities Lie In Deep-Rooted Economic Challenges
Additionally, assets under management rose by 56% year-on-year to EGP29.4 billion, compared to EGP18.8 billion in Q1 of 2023, leading to an increase in management fees. Furthermore, the investment banking division has expanded its 2024 pipeline across different sectors, offering a comprehensive suite of services, including mergers and acquisitions (M&A), equity capital market (ECM), and debt capital market (DCM) spaces. It also provides financial and export credit agency (ECA) advisory services, along with an opportunistic-based credit fund introduced during the second half of 2023.
The NBFIs platform witnessed remarkable growth, capturing impressive market shares across the platform and achieving impressive results during Q1 of 2024, as operating revenue soared 1,297% year-on-year to EGP1.04 billion. The outstanding portfolio grew 891% year-on-year to EGP13.1 billion, up from EGP1.3 billion during the same period last year.
Leasing and factoring and consumer finance business lines were the main contributors to the NBFIs record growth, where outstanding portfolios rose 7x and 11x, to EGP7.9 billion and EGP2.8 billion respectively.
Mortgage finance outstanding portfolio recorded EGP2.1 billion, capturing 24% market share during Q1 of 2024. The outstanding portfolio of cash for microfinance more than doubled to EGP284 million during the period, compared to EGP128 million in Q1 of 2023.
Beltone Venture Capital (BVC) concluded two new equity investments during Q1 of 2024 by investing in Egypt-based proptech BirdNest and Egyptian online used car retailer Sylndr, as well as one follow-up round for Egypt-based marketplace for sports equipment and apparelWay Up Sports. In addition, BVC concluded a debt transaction with Sylndr. Plus, the newly established Beltone SME received initial regulatory approval for its license during Q1 of 2024.
Related: Forging Ahead: How The Middle East Has Become A Driving Force In The Global Fintech Landscape
