Beltone Holding, one of Egypt’s fastest-growing financial institutions, has announced its consolidated financial results for the first half of 2024, revealing a remarkable turnaround in its fortunes. 

Driven by strategic expansion and a focused growth strategy, the company’s operating revenue surged by an astonishing 818 percent year-on-year, reaching EGP 2.9 billion. This performance marks a significant leap from the same period last year and underscores Beltone’s successful transformation.

The company reported a net profit of EGP 817 million for the six months ending 30 June 2024, a stark contrast to the loss of EGP 146 million recorded in the first half of 2023. This turnaround was fueled by robust performances across Beltone’s Investment Bank and Non-Banking Financial Institutions (NBFIs) segments, which together expanded the net operating profit margin to 64 percent.

During the second quarter of 2024 alone, Beltone Holding recorded operating revenue of EGP 1.6 billion, reflecting an 822 percent year-on-year increase. Net operating profit during this period reached EGP 1 billion, with the operating profit margin holding strong at 62 percent.

“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,” said Dalia Khorshid, CEO of Beltone Holding. 

“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.”

Strategic Initiatives Drive Success

Beltone Holding’s strategic initiatives have been central to its success in 2024. The company has expanded its operational footprint through several key moves, including securing the Financial Regulatory Authority’s approval for its SME finance license. This milestone reflects Beltone’s commitment to empowering small and medium enterprises, which play a crucial role in Egypt’s economic growth.

Additionally, Beltone’s partnership with CI Venture Capital to manage a USD 30 million fund is another significant step in supporting Egypt’s most promising startups across diverse sectors. 

Meanwhile, Beltone Mortgage, a wholly-owned subsidiary, has rapidly ascended to a leading position in the market, capturing over 22 percent of the mortgage finance market share in the first half of the year. This achievement is a response to the growing local demand for real estate finance, with Beltone Mortgage now recognized as Egypt’s fastest mortgage provider.

Beltone’s strategic expansion into private credit has also been noteworthy. The launch of a USD 100 million private credit platform through Beltone Investment Holding aims to bolster Egyptian exporters, providing them with 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.

Strong Performance Across Different Segments

The investment banking segment continued its strong performance, generating operating revenue of EGP 471 million in the first half of 2024, a 327 percent year-on-year growth. This segment alone accounted for 16 percent of Beltone’s consolidated revenue. The exceptional performance was primarily driven by significant expansion in brokerage operations, leading to higher commissions due to an increase in the margin lending portfolio.

In asset management, Beltone maintained its dominance as Egypt’s largest non-bank affiliated asset manager, with assets under management (AUMs) reaching EGP 27.7 billion in the first half of 2024, up from EGP 21.5 billion during the same period in 2023. Similarly, the investment banking division’s revenue more than tripled year-on-year, bolstered by an expanded offering in equity, debt, and advisory services.

Beltone’s NBFIs platform also witnessed unprecedented growth, with operating revenue reaching EGP 2.4 billion during the first half of 2024—a 13-fold increase year-on-year. The platform’s portfolio grew sevenfold, reaching EGP 15.2 billion. This surge was driven by substantial expansions within Beltone’s leasing, factoring, and consumer finance business lines, which saw sixfold and fivefold growth, respectively. Additionally, Beltone Mortgage’s portfolio reached EGP 3.3 billion, further solidifying its market-leading position.

In the venture capital domain, Beltone Venture Capital made significant strides, executing three new equity investments in BirdNest, Sylndr, and Trella, alongside two follow-up rounds for Way-Up Sports and Ariika. The company also successfully closed a venture debt transaction with Sylndr, with the venture debt portfolio standing at EGP 109 million as of the end of June 2024.

Beltone Holding’s results for the first half of 2024 highlight the success of its strategic initiatives, positioning the company as a formidable leader in Egypt’s financial services sector. As it continues to expand its footprint across various high-impact areas, Beltone remains committed to driving growth and supporting the broader economic development of Egypt.