By: Islam Fadl

Cairo – Mubasher: Sarwa Capital Holding for Financial Investments has managed to obtain the first consumer financing licence in Egypt and be officially authorised as the first consumer financing company at traffic departments, the CEO, Said Zaater, said.

Despite the challenges posed by the coronavirus (COVID-19) pandemic in the market, the company achieved net profits of EGP 210 million in the first half (H1) of 2020, up by 9% year-on-year (YoY), before deducting the provisions allocated to face the pandemic, Zaater revealed in an interview with Mubasher.

Provisions have been increased to EGP 49 million this year in order to comply with IFRS9 by the end of 2020. The return rate on average shareholders’ equity reached 13.1% during the first quarter (Q1), he added.

Moreover, the operating income from financing business remained slightly unchanged at EGP 406 million in H1-20, compared to EGP 411 million in H1-19, while the financing revenues totalled EGP 756 million from EGP 773 million.

The company has also managed several securitisation transactions at a combined value of EGP 21 billion through 29 issuances since 2005.

Consumer financing

The CEO further revealed that the value of consumer financing provided by its subsidiary Contact exceeded EGP 20 billion since the establishment of the company, excluding mortgage financing.

The financing portfolio grew by 9% YoY to EGP 6.9 billion in the January-June period.

Insurance

In one year, Sarwa Insurance Company and Sarwa Life Insurance Company inaugurated three branches in Cairo and Alexandria to foster their presence in the Egyptian insurance market.

The two companies registered insurance premiums of EGP 131 million in H1-20, jumping by 470% when compared to the prior-year period.

Insurance revenues rose by 154% YoY to EGP 180 million in the six-month period, while the operating income increased to EGP 75 million from EGP 27 million.

Repercussions of COVID-19

Up until now, the company’s plans have not been affected by the pandemic, Zaater affirmed, noting that the company managed to develop an online platform offering installment payment plans  during Q2-20.

The company also added new products to its installment plans.

Sarwa Capital is also set to rebrand its Getgo consumer financing product to Contact Shopping in a bid to expand its customer base.