The financing portfolio of Contact Financial Holding jumped to EGP 11.5bn during the first quarter (1Q) of 2022, compared to 1Q 2021's EGP 8.73bn — a growth rate of about 31%. The company also witnessed an annual growth rate of 47% in total new financing to record more than EGP 2.5bn that is supported by the launch of new products and an increase in the company's presence through branches and platforms. Furthermore, the total insurance premiums of Tharwa Insurance and Tharwa Life Insurance more than doubled to EGP 252m. This is due to the two companies launching new products and increasing sales among the customer base of the various activities of the company. The consolidated net profit of Contact Holding also jumped to EGP 154m, with an annual growth rate of 40%, compared to EGP 109m. Management said that the indicators of business results achieved by the company during the year reflect the efficiency of the investment strategy adopted by the company. It also pointed out that insurance activity witnessed the launch of many new products, with sales among the customer base of the various activities of the company developing, making the best out of the improvement in market conditions and the increase in demand for insurance products throughout the year, as demand increased at a rapid pace. Moreover, it explained that growth came despite the macroeconomic challenges present in the current quarter, especially in light of the continued disruption of supply chains, high inflation rates, and the economic repercussions of the Russian-Ukrainian War that affected economic activities at the local and international levels. Furthermore, car financing witnessed a growth in the volume of new financing at an annual rate of 7% despite the disruption of supply chains, local pressures on import activity, and the repercussions of the devaluation of the EGP last March, which led to a slowdown in the Egyptian passenger car market. Management noted that it expected the passenger car market to be affected during the first quarter by the current disruptions in supply chains. Meanwhile, the management indicated that it was also able to launch the contactcars.com website, which has had 1.2m monthly users throughout 1Q 2022. Furthermore, the company plans to reinforce its presence in the digital field by entering into strategic partnerships with companies that provide innovative digital solutions that support the company's activities by pumping more investments during the coming period as part of its quest to bring about a tangible transformation as it prepares to launch Contact Pay.
