Updates from HELI+ QNBE, & more IPOs💸

Heliopolis Housing reports profit fall in 2024

Heliopolis Housing and Development reported a steep decline in net income for 2024, with profits falling 67.2% YoY to approximately EGP 2.6 billion, according to the company’s latest financial results. 

Total revenues also decreased last year to around EGP 4.5 billion, compared to EGP 15.6 billion in 2023.

Similarly, earnings per share dropped from 5.85 in 2023 to just EGP 1.92 last year.

Board decisions

In a separate disclosure to the Egyptian Stock Exchange (EGX), the company’s board approved a dividend payout of EGP 1.33 per share for 2024 earnings.

Remember, the company has been making big moves

The company said in an EGX disclosure in January that it purchased a plot of land spanning 766 acres near New Cairo for EGP 12.118 billion.

In July, the firm announced a partnership with Madinet Masr for construction of a residential project spanning 491 feddans in New Heliopolis in eastern Cairo. The project is expected to add EGP 194.67 billion in revenues over 12 years, with Heliopolis holding a 36.5% stake in it.

Going forward

The company expects to accumulate EGP 225 billion in revenues over the next the next nine years from partnerships it concluded with MG Group, Middle East Company, and Madinet Misr.

QNBE reports profit uptick in Q1

Egypt’s second-largest private lender “Qatar National Bank” (QNBE) announced a 1.57% increase in its net profits for the first quarter of 2025, reaching EGP 7.18 billion, according to its latest earnings release.

QNBE saw a 13.59% YoY increase in net interest income – amounting to over EGP 11.2 billion —  during Q1.

Net interest, fee and commission income also rose to over EGP 12.92 billion up from 11.12 billion in the same period of 2024. 

Earnings per share reached EGP 2.90, compared to EGP 2.86 in the same period last year.

More details 

QNBE saw a 6.90% increase in customer deposits during the first quarter of 2025, totaling approximately EGP 727 billion by the end of March, driven by growth across all areas of activity.

The bank’s total consolidated assets amounted to approximately EGP 859 billion, reflecting a 4.80% increase compared to December 2024.

Comes after a strong 2024

The lender saw its profits leap 63% YoY in 2024 to reach EGP 26.39 billion. Its board of directors distributed a cash dividend of EGP 1.5 per share based on the previous year’s profits.

2024 awards include:

Best SME Bank in Egypt – by both The Capital Finance International Magazine and The Global Banking and Finance.

Best Retail Bank  in Egypt – by The Capital Finance International Magazine  and The Global Banking and Finance.

Best Customer Experience Bank – Egypt – The International Finance Magazine.

Cabinet is targeting a lot of IPOs over the next two years

In a move aimed at boosting Egypt’s privatization efforts, the government is preparing to restructure and offer stakes in several military-owned companies, including Safi, Wataniya Petroleum, Chillout, Silo Foods, and the National Company for Roads Building, through its USD 12 billion sovereign wealth fund. 

The specifics 

The Sovereign Fund of Egypt and the National Service Projects Organization yesterday signed an agreement for the promotion and coverage of the companies with EFG Hermes and CI Capital.

The cabinet said it intends to offer shares in these companies over the next two years, with completion expected by 2026.

In line with IMF requirements

The strategy is part of Egypt’s broader plan to accelerate privatization and attract private sector participation, a key requirement for securing an expanded USD 8 billion loan from the International Monetary Fund (IMF). 

 This initiative aligns with the IMF’s recommendations to create a more competitive business environment, as the government seeks to sell stakes in at least 10 companies in 2025, including military-owned enterprises.

 Who else may be included

 In line with its privatization program, the state reportedly expects to rake in between EGP 250-350 million from the listing of between a 25-30% stake in Misr Pharma on the EGX in 1H 2025, as we previously noted.

Along with Misr Pharma, the government is reportedly planning to publicly debut a similar share in Chemical Industries Development after handpicking Al Ahly Pharos as financial advisor to manage both IPOs, Al Borsa quoted cabinet sources as having said in January.

On the macro front: Inflation quickens in March on higher food prices

In its first acceleration rate since October, Egypt’s annual headline inflation – total inflation within an economy, including volatile commodities like food and energy prices — increased to 13.6% in March up from 12.8% in February, according to data from the Central Agency for Public Mobilization and Statistics. 

On an annual basis, food and beverage prices climbed 6.6% in March, up from 3.7% in February.

The decline goes against the median projection of a recent Reuters poll, which had forecasted a drop to 12.6%

With real interest rates around 15%, Egypt’s inflation-adjusted rates are among the highest in the world, Bloomberg notes.

Month-on- Month

On a monthly basis, prices rose 1.6% in March, up from 1.4% in February, driven by a 3.5% uptick in food and beverage prices. 

Main reasons are due to the increase in prices of: 

Fruits – 23.6%.

 Vegetables – 3.1%.

 Meat and poultry – 2.8%.

 Fish and seafood – 0.7%.

Grains and bread – 0.5%.

 Dairy products – 0.3%.

 Mineral water, soft drinks, and natural juices – 0.3%.

 Oils and fats – 0.2%.

Sugar – 0.2%.

Coffee, tea, and cocoa – 0.2%.

Going forward

Fitch projected in a recent rating report that inflation in Egypt will reach 12.5% by the end of FY 2025, and 10.6% at the end of FY26.

The Central Bank of Egypt (CBE) is targeting a 7% (±2 percentage points) inflation rate for the fourth quarter of 2026.

 Are interest rate cuts on the horizon?

 The significant gap between March’s inflation and the CBE benchmark interest rate of 27.25% could provide the central bank with the opportunity to begin a monetary easing cycle at its policy meeting on April 17, as many economists had anticipated before the data was released, Bloomberg notes.

Thanks for tuning in! Subscribe to our newsletter for the latest stock market and economy updates here: https://claps.therumble.app/category/egypt-news/