Egypt’s leading financial services firm, EFG Holding, has reported a year-on-year drop in revenue, attributing the decline largely to the absence of the significant foreign exchange gains that boosted its earnings in the previous year.
In its latest financial disclosures, EFG Holding noted that while core operations remained stable, overall revenue dipped due to the normalization of currency-related income. In 2023, the company had benefited from a substantial one-time forex gain amid a volatile economic climate and currency depreciation, which artificially inflated its topline figures.
“Our underlying business remains resilient, but naturally, the absence of last year’s extraordinary foreign exchange impact has created a comparative shortfall,” the company said in a statement accompanying the report.
EFG Holding’s investment banking and non-bank financial services arms continued to perform steadily, with modest growth in advisory services, asset management, and leasing. However, the drag from reduced forex income offset these gains at the consolidated level.
Analysts say the earnings report reflects broader trends in Egypt’s financial sector, where firms are adjusting to a more stable, albeit challenging, macroeconomic environment after a period of sharp currency fluctuations and inflationary pressure.
Despite the revenue dip, EFG’s management expressed confidence in the group’s long-term outlook, pointing to strategic investments in regional expansion, fintech platforms, and diversified financial products.
Shares in EFG Holding remained relatively stable in early trading, suggesting investor confidence in the company’s fundamentals beyond the temporary forex-related impact.
