Contact Financial Holding (CNFN.CA), Egypt's leading non-bank financial services provider, announced strong results for the first half of 2025, with consolidated total operating income rising 24% year-on-year (y-o-y) to EGP 1.1 billion. The Group's growth was underpinned by robust performances across its financing and insurance divisions, coupled with accelerating digital expansion. Normalized net income reached EGP 163.6 million in 1H-2025, reflecting the company's ability to meet growing demand through innovative financing and insurance solutions. Financing Division Drives Growth The financing division delivered a 31% y-o-y increase in operating income, reaching EGP 983 million in 1H-2025. Growth was driven by a focus on higher-margin products and expansion in key segments such as truck, mortgage, and working capital financing. The division posted particularly strong results in the second quarter, with operating income of EGP 611 million, up 44% compared to the same period last year. Consumer finance remained a standout performer, recording a 46% y-o-y increase in new lending, supported by strong customer acquisition and favorable market conditions. Insurance Division Posts Outstanding Results Contact's insurance arm also reported exceptional results, with revenues climbing 61% y-o-y to EGP 1.3 billion. Gross Written Premiums (GWPs) rose 55% y-o-y to approximately EGP 1.9 billion. Sarwa Life recorded a 59% increase in GWPs to c.EGP 1.2 billion, while Sarwa Insurance reported 48% growth, with GWPs reaching EGP 698.6 million. In 2Q-2025 alone, the insurance division posted GWPs of EGP 812 million (up 56% y-o-y) and revenues of EGP 708 million (up 52% y-o-y), underscoring its resilience and sustainable growth momentum. Digital Expansion Through ContactNow Contact's digital platform, ContactNow, continued to gain traction in 1H-2025. Transactions processed through the app rose 20% y-o-y, with total user registrations surpassing 1.04 million since inception. The company also secured a fintech license from the Financial Regulatory Authority (FRA) to provide fully digital consumer finance services, reinforcing its digital-first strategy. Management Outlook The company's management expressed optimism about the second half of 2025, citing a clear growth strategy focused on digital transformation, customer experience, and financial inclusion. "Our strong first-half results highlight the resilience of our business model and the trust we continue to build with our clients," management stated, adding that enhancing digital capabilities will remain a top priority to support growth and market leadership.
