Contact Financial Holding closes 2024 with outstanding performance

Contact Financial Holding (CNFN.CA), Egypt’s leading non-bank financial services provider, announced its consolidated financial results for the fiscal year ending December 31, 2024. The Group achieved a consolidated operating income of EGP 2.5bn, marking an 18% growth, while normalized net income increased by 6% to reach EGP 736mn by the end of the year.

Meanwhile, the Group’s total financing portfolio expanded to EGP 21.1bn, reflecting its commitment to delivering flexible and innovative financial solutions that cater to evolving market needs.

Financial Performance Overview

• Total operating income in FY24 increased by 18%.
• Normalized net income rose by 6%.
• Financing division operating income grew by 14% to reach EGP 2bn.
• Insurance division operating income surged by 37% to EGP 478mn.
• Total financing portfolio recorded EGP 21.1bn in FY24.
• Net income in the insurance division jumped 56% to EGP 154mn.

Financing Division Performance

The financing division delivered solid results, with operating income growing by 14% to EGP 2bn. Despite economic challenges in the Egyptian market, a significant recovery in the second half of the year played a key role in boosting demand across various financing segments, such as auto finance and consumer finance, while also driving strong growth in mortgage and working capital financing. Additionally, in Q4 2024, the financing division’s operating income surged to EGP 647mn, marking an impressive 71% year-on-year increase.

Insurance Division Performance

The insurance division sustained exceptional growth throughout the year, with gross written premiums (GWPs) increasing by 53% to reach EGP 2.3bn in FY24, driven by the robust performance of Sarwa Insurance and Sarwa Life Insurance. This growth contributed to a 37% increase in operating income to EGP 478mn and a 56% rise in net income to EGP 154mn. Additionally, in Q4 2024, the division’s GWPs rose to EGP 526mn, marking a 63%  growth. This strong performance was supported by a comprehensive suite of insurance services tailored to meet customer needs, alongside continued market expansion.

Digital Innovation and Market Expansion

On the digital front, Contact has continued to lead in fintech innovation, with its digital applications witnessing significant growth, particularly the "ContactNow" app, Egypt’s first all-in-one digital financial platform. The app strengthened its payment ecosystem by expanding its strategic partnerships, providing users with diverse payment options, including cash and installment plans. These advancements drove a 38%  increase in the total value of transactions made through the app in FY24, reflecting the increasing trust customers place in Contact’s digital solutions.

Meanwhile, "ContactCars" sustained its impressive growth, with monthly active users reaching 1.2 million, further solidifying its position as Egypt’s leading destination for car buyers. In 2024, the platform launched "Otlobha," a new service enabling customers to purchase vehicles at the best price in the shortest time possible. Additionally, the platform developed a new B2B Vehicle Auction product, streamlining the vehicle sales process between dealers, resulting in a 27% increase in the number of paid dealer subscriptions during Q4 2024.

CEO's Statement

Commenting on the results, Mr. Said Zater, CEO of Contact Financial Holding, noted that Contact closed 2024 on a strong note, reflecting its resilience and stability. Backed by a flexible business model that has consistently demonstrated its ability to navigate economic fluctuations, he emphasized that through a clear strategic vision, prudent management, and a continuous focus on product and service innovation, the Group has achieved sustainable growth that underscores the efficiency of its operational strategies and its team’s unwavering commitment to excellence.

He further highlighted that the financing division’s strong performance in 2024 was primarily driven by a significant recovery in the second half of the year, leading to an increase in new lending. He also expressed pride in the record-breaking results achieved by the insurance division, which strengthened the Group's financial performance. Additionally, he underscored the company’s commitment to digital innovation, focusing on optimizing operational efficiency and improving user experience. This year witnessed significant milestones in this regard, most notably the advancement of the "ContactNow" app, further solidifying Contact’s market leadership and paving the way for continued success.