Contact Financial Holding, Egypt’s leading non-bank financial services and insurance provider, has reported a powerful start to the year, posting a 306% year-on-year (YoY) surge in consolidated net income for the first quarter of 2025, reaching EGP 59 million. The group’s total operating income also saw a robust 30% YoY increase, rising to EGP 475 million, underscoring the company’s strong operational momentum and strategic shift toward high-margin and digitally enabled financial solutions.
In a statement announcing the results, Contact’s management highlighted the company’s renewed strategic focus:
“Contact’s strong first-quarter results reflect the impact of our strategic pivot toward higher-margin products and the resilience of our business model, supported by gradually improving economic conditions. The exceptional performance from our insurance division, which recorded a 767% increase in net income, has further strengthened our growth trajectory.”
Insurance Division Steals the Spotlight
The insurance segment emerged as the group’s fastest-growing division, delivering unprecedented performance. Insurance revenue surged by 73% YoY to reach EGP 619 million during Q1 2025, driven by strong contributions from both Sarwa Life and Sarwa Insurance. Gross written premiums (GWPs) climbed 54% YoY to EGP 1.07 billion, underlining the group’s expanding footprint in Egypt’s insurance market.
Operating income from the insurance business soared by 242% YoY to EGP 109 million, while net income recorded a staggering 767% YoY increase, reaching approximately EGP 43 million—a nearly ninefold jump compared to the same period last year. The group attributed this growth to improved underwriting margins, expanded product offerings, and increased market penetration across key customer segments.
Financing Division Remains a Steady Performer
Contact’s financing division also delivered solid results, with operating income up 14% YoY to EGP 372 million. Net profit for the division increased to EGP 27 million, reflecting a 33% YoY rise. This performance was supported by the group’s continued emphasis on credit quality, portfolio diversification, and innovative financing products that cater to both individuals and SMEs.
Fintech and Digital Platforms Driving Future Growth
The group continues to push the boundaries of digital transformation in Egypt’s financial services sector. Its flagship platform, ContactNow, has positioned itself as Egypt’s first all-in-one digital financial marketplace. The app has witnessed growing traction, enabling customers to access a wide array of financing products, apply for loans, and complete purchases with flexible payment options—ranging from cash to tailored installment plans.
During the quarter, Contact enhanced the app’s user experience by launching a new end-to-end digital purchase journey, enabling seamless product discovery, credit application, and payment integration. This move is part of the group’s broader effort to accelerate fintech adoption, improve customer acquisition, and deepen cross-selling opportunities.
Strategic Outlook
With a strong start to the year, Contact Financial Holding appears well-positioned to capitalize on Egypt’s evolving financial landscape. The company is benefiting from favorable macroeconomic conditions, increasing demand for non-bank financial services, and rising digital adoption among consumers.
Analysts have pointed to Contact’s balanced portfolio, innovative technology platforms, and operational discipline as key factors that will continue to support its upward trajectory throughout 2025.
