Contact Financial Holding announced its consolidated financial results for the first half of 2026, recording solid performance supported by the resilience of its financing business and continued growth in the insurance segment during the second quarter.

The Group, Egypt’s largest non-bank financial services provider, achieved consolidated total operating income of EGP 1.3 billion in H1-2026, representing a 6% year-on-year increase compared with EGP 1.22 billion in H1-2025.

Consolidated earnings before tax (EBT) rose 7% year-on-year to EGP 281 million, reflecting continued operational discipline and the Group’s focus on strengthening the quality and scalability of its business platforms.

Meanwhile, consolidated net income stood at EGP 95 million, compared with EGP 123 million in the same period last year, mainly reflecting higher tax provisions and impairments on financial assets.

Financing business drives operating income growth

The financing division delivered solid operating performance during H1-2026 despite a moderation in portfolio size.

Financing operating income increased 7% year-on-year to EGP 1.055 billion, compared with EGP 983 million in H1-2025, supported by stronger off-balance-sheet activity.

Net revenue from portfolio transfers reached EGP 761 million, marking a significant 101% year-on-year increase.

Total new lending also increased 16% year-on-year to EGP 5.9 billion, supported by strong momentum across Contact’s digital and business platforms.

Digital lending doubled to EGP 1.1 billion, while the Business Platform grew 52% to EGP 2 billion.

Financing net income reached EGP 75 million, compared with EGP 89 million a year earlier, reflecting the impact of the ongoing multi-phase provisioning cycle and impairments on financial assets.

Insurance revenue rises 38%

The insurance division continued to deliver strong growth during the first half of 2026, supported by sustained revenue expansion across its operations.

Insurance revenue increased 38% year-on-year to EGP 1.8 billion, while gross written premiums rose 24% to EGP 2.3 billion.

The growth was supported by continued product diversification and stronger cross-selling across Sarwa Insurance and Sarwa Life.

Profitability during the first half was affected by residual group medical claims from late 2025 and an elevated motor loss ratio, which weighed on underwriting income.

However, following the losses recorded in the first quarter, the division achieved a strong recovery during Q2-2026, with both underwriting and net income returning to profitability.

Contact is addressing the performance of the affected business lines through repricing, tighter underwriting standards and enhanced claims management. The medical insurance business already showed improvement during the second quarter, with the Group expecting this trend to continue through the third and fourth quarters.

The insurance division recorded net income of EGP 29 million during H1-2026.

Contact accelerates its digital transformation

During the first half of the year, Contact continued to advance its new operating model strategy, accelerating investments in digital transformation and infrastructure modernization to support scalable growth and operational excellence.

The Group is increasingly shifting away from traditional business silos toward integrated business platforms designed to strengthen coordination, improve execution and generate greater operational efficiencies across the organization.

Contact is also reinforcing its position as a diversified fintech platform through four strategic business platforms: Auto & Lifestyle, Consumer Credit, Business and Insurance.

Through this integrated ecosystem, the Group provides a broad range of consumer financing, business financing, insurance and investment solutions aimed at creating a more seamless customer experience.

AI supports credit decisions and risk management

As part of its digital transformation strategy, Contact continued integrating artificial intelligence technologies across its operations to improve efficiency, strengthen risk management and enhance the customer experience.

Through its AI Lab, the Group developed a proprietary AI risk approval engine designed to improve the accuracy of credit decisions by analyzing a broader range of data points.

The technology operates within a regulated framework supervised by the Financial Regulatory Authority (FRA) and incorporates human oversight.

Contact is also expanding the use of AI across credit, risk management, operations and customer support.

The company’s proprietary AI engine is already processing approximately 68% of auto loan applications, supporting faster and more efficient credit decision-making.

Contact Now transactions surpass EGP 1 billion

The Contact Now digital platform maintained strong growth momentum during H1-2026, reflecting increasing customer adoption of Contact’s expanding digital ecosystem.

The total value of transactions processed through the platform surpassed EGP 1 billion during the first half of the year.

New downloads increased by 514,906, bringing total downloads to 2.5 million.

The platform also added 269,752 new registered users, taking the total number of registered users to 1.6 million.

The continued growth strengthens Contact Now’s position in Egypt’s digital financial services market and supports the Group’s broader strategy of expanding financial access through technology.

John Saad: We are building a more integrated and scalable financial platform

John Saad, Group CEO and Managing Director of Contact Financial Holding, said that the first-half results reflect the progress the company is making as it evolves into a more integrated, agile and scalable financial platform.

He noted that Contact is increasingly focused on building operating capabilities that can support sustainable growth at scale while maintaining strong discipline in risk management, execution and profitability.

Saad highlighted the continued growth in new lending, driven by the acceleration of digital lending and the Business Platform, alongside continued momentum in insurance supported by higher premiums and broader product diversification.

He added that the Group’s priorities for the coming period include operational excellence, scalable platforms and technology-led execution, while expanding the use of AI across credit, risk, operations and customer support.

According to Saad, the objective is not simply to adopt new technologies, but to use them to improve the quality and speed of decision-making, strengthen Contact’s operating model and deliver a smarter and more inclusive financial experience.

Contact maintains strong lending momentum

Contact maintained strong momentum during H1-2026, with total new lending across its platforms reaching EGP 5.9 billion, representing 16% year-on-year growth.

Digital lending increased 100% to EGP 1.1 billion, while the Business Platform grew 52% to EGP 2 billion.

The insurance segment also recorded a 24% year-on-year increase in gross written premiums to EGP 2.3 billion.

Investment income increased 71% year-on-year to EGP 200 million, further supporting the Group’s overall financial performance.

CFO: Cost discipline supports earnings before tax growth

Youssef Abdel-Ati, Group CFO of Contact Financial Holding, said the company maintained solid financial momentum during the first half of 2026, supported by stronger portfolio quality and increased off-balance-sheet portfolio transfers.

Revenue from portfolio transfers increased 101% year-on-year to EGP 761 million, contributing to the 7% growth in financing operating income to EGP 1.055 billion.

Insurance revenue increased 38% year-on-year to EGP 1.8 billion, supported by enhanced distribution channels, while investment income grew 71% to EGP 200 million.

At the consolidated level, disciplined cost management kept the cost-to-income ratio at 59.8%, supporting a 7% year-on-year increase in earnings before tax to EGP 281 million.

Despite the impact of tax provisions and impairments on financial assets on net income, Contact maintained strong cash-generation capacity and balance-sheet liquidity.

The company continues to focus on accelerating its transformation into an integrated financial technology platform, expanding digital services and leveraging AI to enhance operational efficiency, risk management and customer experience.