Contact Financial Holding’s normalized net income rose 21% y-o-y to EGP 609 mn in 2022 on rising revenue across its ins. and financing divisions, according to the company’s earnings release (pdf). On a 4Q basis, normalized net income rose 38% y-o-y to EGP 205 mn driven in part by a 61% increase in new financing.

Robust revenues led the growth: The NBFS player’s financing division reported operating income of EGP 1.45 bn in 2022, up 33% y-o-y, thanks to a 24% increase in net interest income, higher revenues from portfolio transfer, and a surge in fee and commission income which doubled y-o-y, according to the company’s earnings presentation (pdf). The rise was underpinned by a 61% increase in new financing, which hit EGP 11.4 bn on the back of increasing demand for the company’s consumer finance, working capital, commercial trucks, and mortgage products. Meanwhile, the ins. division’s operating income rose 44% to EGP 195 mn. This was driven by an 83% rise in total gross written premiums, which the company attributed to“higher market penetration, increased cross-selling, and new product launches.”

What they said: “While the challenges faced during 2022 are likely to persist throughout the upcoming year, we are confident that we have put in place a strong strategy to help us navigate the difficult operating environment,” management said. “At the same time, we remain on the lookout for attractive investment [chances] to provide new services to our customers and new growth avenues for the company.”