The financing portfolio of the Contact Financial Holding jumped to EGP 12.38bn in the first half (1H) of 2022, compared to EGP 8.97bn in 1H 2021, with a growth rate of 38%.
The company witnessed an annual growth of 52% in financing to record EGP 5.1bn during 1H 2022, driven by consumer financing, capital financing, commercial vehicle financing, and mortgage financing.
The total insurance premiums increased at an annual rate of 98% to reach EGP 504m during the first half of this year, compared to EGP 254m during the same period in the previous year.
The group’s net profits during 1H 2022 grew by 22% annually to record EGP 238m compared to EGP 195m during 1H 2021.
Saeed Zaatar, Group CEO, said that the company is focusing its plans on increasing its direct presence through the branch network and developing the package of services provided. Since the beginning of the year, it has been expanding its commercial relationship network by concluding new agreements with sports clubs, schools and universities.
Zaatar added that the company will focus on increasing its presence in the educational sector in Egypt during 2H 2022, as the group works to provide tuition financing services.
It is currently negotiating with several schools and universities to offer various tuition financing plans.
It also aims to expand the financing solutions provided to the healthcare sector, focusing on financing dental care workers.
Zaatar confirmed the validity of his expectations that the growth of the car financing product would be affected by the challenges facing the passenger car market in Egypt, but the company succeeded in continuing to develop the volume of new financing in line with the mentioned expectations thanks to the product diversification strategy adopted by the company.
The company continues to develop its digital platforms to facilitate customer access to products and improve user experience, with a focus on creditworthiness assessments.
Noting that the growth of the volume of new financing, mainly driven by the increase in the number of new clients, given that 50% of new consumer financing clients were granted credit approvals by artificial intelligence technology to assess creditworthiness.
In terms of financing products, such as the consumer finance and working capital finance sectors, the strongest performing sectors during the first half of 2022, in light of the strong annual growth in the volume of new finances.
The consumer finance product (which includes Contact Shopping) witnessed a fivefold increase in the volume of new financing during the first half of this year on the back of the launch of new products, including the quick financing product for finishing homes, products for financing club subscriptions, and financing school and education expenses.
The company also launched a number of new points of sale in commercial centres and stores, which resulted in an increase in the number of financing transactions.