Beltone Financial to expand into securitization by acquiring SODIC subsidiary

Fatma Salah
2 Min Read

Beltone Financial Holding has expressed its intention to acquire Sodic Securitization, a subsidiary of SODIC, as part of its strategy to diversify into non-banking financial services. The company will undertake due diligence, pending regulatory approvals, to finalize the acquisition either directly or through a subsidiary.

The due diligence process is expected to last up to six weeks, with immediate agreement and implementation upon completion. This move is seen as a strategic step by Beltone to integrate securitization services without establishing a new entity.

After three years of losses, Beltone Financial Holding reported a profit of EGP 86m in the first nine months of the year, a significant turnaround from the EGP 139m in accumulated losses during the same period last year, bolstered by the group’s restructuring efforts.

The company’s revenue soared to EGP 957m in the first nine months, a substantial increase from EGP 257m in the previous year.

The investment bank’s operating revenue hit EGP 198m, while Beltone Securities Trading’s margin share buying portfolio grew by 109% to EGP 621m. The assets under management also climbed to EGP 23bn.

Financial leasing activities saw remarkable growth, reaching EGP 3.6bn, a six-fold increase year-over-year. The consumer financing portfolio expanded to EGP 1.1bn, serving over 7,000 customers.

The “Cash” microfinance loan portfolio grew to EGP 123m, with client numbers surpassing 10,000.

Beltone’s acquisition of Cash Microfinance is aimed at penetrating the microfinance sector, further broadening its non-banking financial services spectrum.

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