Corporate news
Contact Financial Holding [CNFN]
Contact Financial Holding recorded moderate revenue growth during 2025; however, profitability came under noticeable pressure, reflected in a decline in net earnings.
Financing and operating revenues reached approximately EGP 2.21 billion, compared to EGP 1.98 billion in 2024, representing a growth rate of 11.5%. Net insurance revenues also increased to EGP 562 million versus EGP 490 million, up 14.6% YoY, reflecting continued positive operational performance across both financing and insurance segments.
On the other hand, finance expenses rose by 22% YoY, exceeding revenue growth due to higher borrowing costs amid elevated interest rate levels. This resulted in pressure on the interest spread, negatively impacting profitability margins.
Additionally, credit provisions increased during the year following the recognition of additional provisions related to previously non-performing clients, creating further pressure on net earnings.
The company reported net profit of EGP 470.85 million in 2025, compared to EGP 771.63 million in 2024 (including minority interest), representing a 39% YoY decline. Net profit attributable to the parent company decreased by 50.15% YoY, reaching approximately EGP 345.1 million, compared to EGP 692.3 million in the previous year.
The stock is currently trading at around 13x P/E and 1.4x P/B. Future earnings recovery remains largely dependent on lower funding costs and continued loan portfolio expansion.
Mostafa Amin -Equity Analyst
MAmin@egy.Primegroup.org