Contact concluded Q1-2026 with strong results, achieving a 27% increase in total operating income.
Contact Financial Holding SAE (CNFN.CA), Egypt’s largest non-bank financial services provider, announced today its consolidated financial results for the first quarter ending 31 March 2026. In Q1-2026, the Group achieved consolidated total operating income of EGP 642 million, marking a 27% y-o-y increase, driven primarilyby the strong operating performance of the financing division. Consolidated net income increased by 12% y-o-y in Q1-2026, closing the first quarter at EGP 66 million, reflecting the Group’s continued ability to deliver earnings growth. As the restructuring phase and heavy investment in digital infrastructure continue to mature, the Group expects these investments to unlock stronger operational synergies, improved scalability, and enhanced long-term profitability.
Q1-2026 Key Financial and Operational Highlights
|
|
Q1-2025 |
Q1-2026 |
Change |
|
Financing Division |
|
|
|
|
Total Portfolio (EGP bn) |
20.3 |
19.2 |
-5% |
|
Financing Operating Income (EGP mn) |
372 |
542 |
46% |
|
Financing Net Income (EGP mn) |
27 |
72 |
170% |
|
Insurance Division |
|
|
|
|
Gross Written Premiums (EGP mn) |
1,070 |
1,380 |
29% |
|
Insurance Revenue (EGP mn) |
619 |
881 |
42% |
|
Insurance Operating Income (EGP mn) |
140 |
97 |
-30% |
|
Insurance Net Income2 (EGP mn) |
43 |
-3 |
-106% |
|
Consolidated Results |
|
|
|
|
Total Operating Income (EGP mn) |
506 |
642 |
27% |
|
Net Income2 (EGP mn) |
59 |
66 |
12% |
|
Annualized Return on Average Equity |
6.8% |
6.9% |
0.02 pts |
Looking at the Group’s performance by division, the financing division achieved strong operating income growth in Q1-2026despite a moderation in portfolio size. Operating income increased 46% y-o-y to EGP 542 million, supported by a strategic shift towards higher margin products, coupled with strong returns associated with portfolio transfer activity and the continued scaling of the Group’s digital financing capabilities. Consequently, financing net income increased by 170% y-o-y to EGP 72 million during the first quarter as part of this multi-phase provisioning cycle.
The insurance division continued to demonstrate strong growth momentum during Q1-2026, supported by sustained revenue expansion across its operations. Insurance revenue increased 42% y-o-y to EGP 881 million, driven by a 29% increase in Gross Written Premiums (GWPs) to EGP 1.4 billion, fueled by the ramp-up of new products and stronger cross-selling across both Sarwa Insurance and Sarwa Life. While the division delivered solid top-line growth, operating income declined by 30% y-o-y to EGP 97 million,temporarily impacted by higher claims spillover from 2025 in Group Medical. However, management has already enacted a decisive repricing program in Q1, with revised rates taking effect through Q2 and Q3 2026 to drive underwriting income back into positive territory. Moreover, increased operating expenses associated with the expansion phase had an impact on the earnings before tax. Consequently, the division recorded a net loss of EGP 3 million during the quarter.
Throughout Q1-2026, Contact continued advancing its restructuring strategy while accelerating investments in digital transformation and infrastructure modernization to support long-term scalable growth. During the quarter, the Group further reinforced its transition into a fully diversified fintech platform through its strategic business platforms: Auto & Lifestyle, Consumer Credit, Business, and Insurance. Under one integrated ecosystem, Contact delivers a diversified suite of consumer financing, business financing, insurance, and investment solutions, creating a more seamless and comprehensive customer value proposition.
In parallel, the Group continued integrating AI technologies to enhance operational efficiency and customer experience. Through its AI Lab, the Company developed a proprietary AI risk approval engine designed to improve credit decision precision by utilizing expanded data points a fully regulated FRA-supervised framework.
On the digital front, Contact Now, Egypt’s premier comprehensive digital financial platform, sustained its robust growth momentum throughout Q1 2026. Highlighting the rapid adoption of Contact’s expanding digital ecosystem, the total value of transactions processed on the platform surpassed EGP 453 million during the quarter. User acquisition also accelerated significantly, with new downloads increasing by 231,210 during the three-month period, pushing the platform's total download base to 2.2 million. In parallel, new registrations grew by 125,259 over the quarter, bringing total registered users to 1.5 million and further cementing Contact Now's position as a market leader in the digital financial services space.
Q1-2026 also marked an important milestone in Contact’s governance journey with the appointment of Dr. Manal Hussein as Chairperson, bringing over 30 years of leadership experience across Egypt’s financial services, public, and private sectors.
Commenting on the results, John Saad, Group CEO and MD of Contact Financial Holding said:“Q1-2026 marks an important milestone in Contact’s transformation journey as we continue evolving into a fully integrated, digital-first financial platform. Following the successful completion of our management transition, we are now operating with a more agile and execution-driven model, supported by platform-based structures that are already enhancing operational efficiency and strengthening revenue diversification. At the same time, we continue embedding AI and digital capabilities at the core of our operations, not only as enablers of efficiency, but as drivers of disciplined financial inclusion. Backed by the Contact Now ecosystem, we are responsibly expanding access to finance, bridging gaps for underserved Egyptian segments, and building a smarter, more secure, and more inclusive financial experience for the Egyptian market”.
On his part, Youssef Abdel-Ati, Group CFO of Contact Financial Holding, said: “Contact delivered robust results in Q1-2026, reflecting the continued momentum of our transformation strategy and sustained growth across our core business lines. The quarter was supported by strong operational performance, with new financing increasing by 41%, mainly driven by the Digital and Business platforms, while insurance GWP increased by 29% year-on-year. Consolidated operating income increased by 27%, while operational discipline improved our Cost-to-Income ratio to 59.9%, supporting an 18% year-on-year increase in EBT and delivering net income of EGP 66 million in Q1-2026”.