Dubai: EFG Holding reported a strong start to 2026, posting an 18 per cent year-on-year increase in revenues to EGP 6.6 billion during the first quarter, supported by growth across all three of its business verticals despite mounting regional geopolitical tensions.The financial institution, which operates a universal bank in Egypt and is one of the leading investment banks in the Middle East and North Africa, said net operating profit and profit before tax both climbed 20 per cent year-on-year to EGP 2.5 billion and EGP 2.3 billion, respectively.However, net profit after tax and minority interest declined to EGP 1.0 billion, mainly due to higher taxes and minority interest expenses. Total assets stood at EGP 270.2 billion by the end of March 2026.Operating expenses, including provisions and expected credit losses (ECL), rose 16 per cent year-on-year to EGP 4.1 billion. The increase was attributed to inflationary pressures in Egypt, expanded operations at EFG Finance and higher provisions linked to the growth of loan books at both EFG Finance and Bank NXT.Solid startKarim Awad, Group CEO of EFG Holding, said the company delivered a “solid start” to the year despite challenging regional conditions.“EFG Holding delivered a solid start to 2026, with revenue growth across all three verticals and strong operational performance,” Awad said.He added that the group remained focused on disciplined execution, prudent risk management and sustaining profitability despite the difficult macroeconomic environment.Investment gainsEFG Hermes, the group’s investment banking arm, posted a 9 per cent increase in revenues to EGP 3.1 billion, supported by treasury activities, unrealised investment gains and foreign exchange gains following the March 2026 devaluation of the Egyptian pound.Its net operating profit and profit before tax rose 31 per cent and 34 per cent year-on-year to EGP 1.2 billion and EGP 1.1 billion, respectively.EFG Finance, the group’s non-bank financial institution platform, recorded a 20 per cent increase in revenues to EGP 1.6 billion, driven largely by Valu, whose revenues surged 85 per cent year-on-year due to higher securitisation gains and loan issuances.Despite the strong revenue growth, EFG Finance reported lower profitability as provisions and expected credit losses surged 335 per cent year-on-year. Net operating profit fell 37 per cent to EGP 276 million, while profit before tax dropped 47 per cent to EGP 205 million.Strong growthMeanwhile, Bank NXT delivered the strongest growth among the group’s divisions, with revenues rising 34 per cent year-on-year to EGP 1.9 billion, fuelled by a 53 per cent increase in net interest income and continued loan portfolio expansion.The bank’s net operating profit increased 40 per cent to EGP 1.1 billion, while net profit before tax climbed 39 per cent to EGP 1.0 billion. Net profit after tax reached EGP 691 million, with EFG Holding’s share amounting to EGP 354 million.