Section Flag 1 Section Flag 2 3 TABLE OF CONTENTS a. Chairperson's Foreword b. A Note from our Group CEO c. MD&A a. Sell-side Overview b. Investment Banking c. Securities Brokerage EFG FINANCE a. EFG Finance Overview b. Tanmeyah c. Valu OUR CONTROLS FINANCIAL STATEMENTS CORPORATE SUSTAINABILITY AND IMPACT OUR TEAM BANK NXT a. Our People b. Executive Committee c. Board of Directors Section Flag 4 5 AT A GLANCE 6 7 AT A GLANCE 2024 marked a year of remarkable growth and achievement for EFG Holding, a year defined by strategic growth, operational excellence, and a relentless pursuit of innovation across our three core business verticals: the Investment Bank, the Non- Bank Financial Institutions (NBFI), and the Commercial Bank. In an era where agility and sophistication are prerequisites for success, EFG Holding has consistently demonstrated its ability to anticipate market shifts and deliver integrated financial solutions that empower clients and companies of every scale. Our Investment Bank continues to be a beacon of expertise, orchestrating landmark transactions and providing bespoke advisory services that shape industries and unlock opportunities across the MENA region. The NBFI platform has solidified its role as a catalyst for financial inclusion and sustainable growth, offering a diversified suite of non-banking products tailored to the nuanced needs of a rapidly evolving marketplace. Meanwhile, our Commercial Bank remains steadfast in EFG Hermes Securities Brokerage, the MENA region’s leading brokerage house, offers innovative and tailored products and services, secure multi-platform trading tools, market intelligence and insights, and unparalleled access and executional capabilities. Additionally, the division boasts an expansive execution presence across the MENA region, including Egypt, Kuwait, UAE, Saudi Arabia. EFG Hermes maintained its first-place ranking in Egypt during the year, securing a market share of 33%. Retail investors remained the primary force in the market, comprising over 80% of trading volumes, with EFG Hermes leading retail execution with 10.4%. Foreign participation constituted 10% of total market activity, with EFG Hermes capturing 45% of this flow in 2024. EFG Hermes maintained its leadership in the UAE market throughout the year, securing the top position on the DFM with a 47% market share, driven by increased executions from foreign institutional investors. Foreign activity made up 35% of total market participation for the year, with EFG Hermes capturing nearly half of this flow at 49%. Meanwhile, the Firm ranked second overall in ADX with a 30% market share, as foreign investors accounted for 34% of total activity, of which EFG Hermes captured 24%. This growth was fueled by the increased activity in IPOs, reflecting EFG Hermes’ strong competitive position in the UAE market. In Saudi Arabia, EFG Hermes achieved stable performance, with market share remaining consistent compared to the previous year. Notably, the Firm experienced significant momentum towards the end of 2024, capturing a larger share of the local market and high-net-worth family offices. With a strengthened presence on the ground and a more robust team in the region, EFG Hermes positioned itself for future growth in Saudi Arabia. Its market share recorded 5.6%, on the back of several robust capital market activity in the Kingdom. its commitment to delivering exceptional value to clients and is underpinned by a client-centric ethos. At EFG Holding, delivering seamless, end-to-end financial solutions is fundamental to our approach, reflecting our deep market insight and unwavering commitment to excellence. In 2024, we expanded our product offerings, enhanced shareholder value, and prioritized the growth and development of our people, reinforcing a culture of continuous improvement. As we celebrate a year of significant achievements, we remain steadfast in our vision to set the benchmark for financial leadership in the region, building on a legacy of integrity, expertise, and innovation to serve as the trusted partner of choice in a rapidly evolving world. Moreover, we are proud to have effectively contributed to the well-being of our local community on economic, social, and environmental levels, underscoring our holistic commitment to responsible and sustainable growth. EFG Holding leverages its three distinct verticals — the Investment Bank (EFG Hermes), Non-Bank Financial Institutions (NBFI) (EFG Finance), and the Commercial Bank (Bank NXT) - to deliver a comprehensive range of financial products and services tailored to meet the evolving needs of a diverse clientele, including individual clients and businesses of all sizes. In 2024, the Group demonstrated outstanding performance across all its verticals, reflecting strategic foresight, operational resilience, and an ability to navigate dynamic economic environments. The Investment Bank (EFG Hermes) maintains a strong physical presence across the MENA region, enabling us to provide localized expertise and strengthen our client relationships globally. Operational Footprint EFG Hermes The Investment Bank Securities Brokerage At a Glance 9 EFG Hermes’ Investment Banking division has grown to become the region’s most trusted advisory house. It has successfully cemented its leading position as the regional investment banking partner of choice for partners and clients in the MENA region. With decades of industry and market expertise, the division continues to advise on the region’s largest and most prominent transactions in the mergers and acquisitions (M&A), equity capital markets (ECM), and debt capital markets (DCM) spaces. This success is driven by the multidisciplinary experience of over 50 professionals dedicated to delivering exceptional insights and tailored solutions. In 2024, the division drove substantial expansion in ECM, leading landmark transactions across Saudi Arabia and the UAE, overseeing nine GCC IPOs, and cementing its place at the top of regional league tables. The team successfully concluded advisory on 38 ECM, DCM, and M&A transactions across its footprint, with an aggregate value of over USD 22.6 billion. EFG Hermes’ Asset Management division stands as the leading asset manager in the MENA region, offering a wide array of mutual funds and discretionary portfolios tailored to diverse investment objectives. Our offerings include country-specific and regional mandates spanning money market, fixed income, indexed strategies, and Shariah- and UCTIS-compliant products. We focus on delivering value through strategic investment opportunities, market insights, and bespoke services designed to suit client preferences, financial goals, and risk profiles. In 2024, assets under management (AUM) rose by 8% Y-o-Y, driven by strong growth in equities and money market funds, reaching EGP 38.7 billion. Our team’s excellence has been recognized globally, earning prestigious accolades such as “Best Asset Manager in Egypt” and “Best Asset Manager in the UAE” from the EMEA Finance Middle East Awards, as well as “MENA Best Asset Manager of the Year” from MEED. These honors underscore our leadership and commitment to delivering superior value to our clients. EFG Hermes’ Private Equity platform focuses on value- driven investments in strategic and impactful sectors by providing rapid and flexible investment capital. Its exceptional capacity for building businesses, offering technical assistance, and strong strategic leadership enables swift growth across its operations. As a long- term impact investor, the division targets businesses in key industries, including renewable energy, education, and healthcare. On the renewables front, the division manages investments through its dedicated Europe-focused platform, Vortex Energy. The platform, which was launched in 2014, funds projects in the fast-growing energy transition industry to drive higher sustainable development and lay the foundation for the transition toward clean energy. This success is largely attributed to Vortex Energy’s strategic investments in its portfolio companies, Ignis and EO Charging. The underlying portfolio companies generated c. EUR 300 million of revenue in 2024. Ignis has been delivering exceptional results since Vortex’s investment in 2021. By backing a proficient management team, there have been significant improvements in both EBITDA and revenue growth of 77% CAGR since the investment year. Its diversified business lines and sizable pipeline of +15 GWs in various stages from operation to late-stage development have further contributed to this success. An additional driver of growth is the burgeoning demand for data centers Investment Banking Asset Management Private Equity 8 249 Stocks 9 Countries 11 Markets in Spain, fueled by the rise in AI and cloud computing. Its capability to develop and sell assets to these data centers has positioned it advantageously in this expanding market. Similarly, EO Charging, its electric vehicle charging business, has made significant strides. It has secured contracts for charging infrastructure for London buses and attracted new clients, reinforcing its presence in the EV charging sector in the UK, as well as its on-ground expansion into the US market. Revenues have increased almost 3x since the investment in 2022. In the education sector, EFG Hermes’ Education and Education Fund (EEF) is a USD 150 million investment fund launched in 2018. In line with its strategy to make socially impactful investments, the EEF continues to grow and develop Egypt’s underserved K-12 sector through investments in schools and greenfield developments. Additionally, EFG Hermes has launched the Saudi Education Fund (SEF), which is a USD 300 million investment aimed at addressing the increasing demand for high-quality K-12 education in the Kingdom. In the healthcare space, Rx Healthcare Management manages diverse investments across the healthcare sector to meet the growing demand for premium healthcare offerings across Egypt, the MENA region, and Africa. The company saw a strong increase in earnings, with a growth rate of over 40%, reflecting the success of its strategic initiatives. A key factor behind this performance has been the launch of new products, further expanding United Pharma’s footprint in the Egyptian market. For over four decades, EFG Hermes’ Research division has established itself as the premier provider of incisive, real-time market insights across the region. Renowned for its depth and accuracy, the division offers expert analysis in macroeconomics, strategic outlooks, sector trends, and equities crafted by award-winning analysts recognized for their excellence. Setting the industry benchmark, the division delivers the most comprehensive and impactful research on the MENA region to clients worldwide. Covering 249 stocks across nine countries and 11 markets, it empowers investors with the knowledge to navigate complex markets confidently. Research At a Glance At a Glance EFG Finance Non-Bank Financial Institutions Tanmeyah EFG Corp-Solutions In 2024, Tanmeyah demonstrated impressive growth amid challenging macroeconomic conditions, with sales increasing by 35% Y-o-Y and assets reaching EGP 6.6 billion, a 43% rise that outpaced the market. The company expanded its branch network by 52 to a total of 354, and grew its team to over 5,500 employees to serve nearly 30,000 new clients monthly across 25 governorates. Major infrastructure investments included launching a data center, a mobile app, a unified API, and an AI-powered WhatsApp assistant, enhancing customer experience and efficiency. Strategic partnerships with Gulf Insurance Group and MSMEDA enabled the launch of new insurance products and microfinance programs, supporting thousands of micro-enterprises in underserved regions and sectors like agriculture, FMCG, and healthcare. Tanmeyah’s excellence was recognized through numerous awards and certifications, including AML 30000 and PCI DSS, ensuring high standards of security and compliance. The company earned accolades such as ‘Best Place to Work,’ ‘Fastest Growing Microfinance Company’ (second consecutive year), and awards from Global Banking & Finance Review and International Business Magazine for empowering women and advancing ESG initiatives. Despite a challenging economic climate and rising interest rates in 2024, EFG Corp-Solutions achieved significant milestones through strategic restructuring and support from EFG Holding. The company doubled its net income by expanding its leasing and factoring portfolios, and solidified its position among Egypt’s top three players in these markets. Aggregate bookings soared to EGP 12.3 billion, representing a 30% Y-o-Y increase, while strategic focus on blue-chip clients and landmark deals both inside and outside Egypt highlighted its resilience and operational strength. The company also enhanced liquidity by issuing its second securitized bond, valued at EGP 450 million, as part of a broader EGP 3.0 billion securitization program. EFG Corp-Solutions pursued diversification by entering new markets, partnering in export-led and import substitution projects, and onboarding clients with high- value transactions. Leasing bookings rose by 32% to EGP 5.3 billion, aided by strong collaborations with banking partners. On the factoring side, a deliberate focus on fewer, larger, high-creditworthy contracts led to a 255% increase in average ticket size, with portfolio growth driven by innovative solutions for sectors like pharmaceuticals and IT. Valu PayTabs Egypt EFG EV Fintech In 2024, Valu achieved remarkable growth, exceeding all financial and operational targets. Transactions surged to 4.1 million, more than doubling last year’s figures, while Gross Merchandise Value (GMV) soared to over EGP 16.5 billion, an 81% increase. Revenues climbed to EGP 1.9 billion, up 66% from the previous year, and market share grew from 18.5% to approximately 24%. The company expanded its customer base by serving over 200,000 new-to-credit customers, who conducted over one million transactions. Valu also executed six securitizations, raising over EGP 4.9 billion, and leveraged synergies within EFG Holding to expand its reach and diversify its offerings. Valu introduced several innovative products and milestones in 2024: Ulter, a luxury financing solution with the highest national credit limit and flexible repayment plans; Shift, an auto loan product streamlining vehicle purchases; and the Valu prepaid card with Visa, transforming the platform into an open-loop system with over 130,000 active cards and 1.26 million transactions. The company partnered with Bank NXT to launch a co-branded credit card and introduced ‘Spark’it,’ allowing interest-free deferred payments for a month. Valu also opened Cairo’s first FinBrew Hub, Valu Café, integrating financial solutions with lifestyle experiences, and partnered with luxury merchants to expand its market presence, reinforcing its leadership in the MENA fintech landscape. In 2024, PayTabs Egypt achieved strong growth, with transaction volumes up 25% Y-o-Y, GMV rising 70%, and transaction numbers increasing 13%. The company led innovation by integrating card top-up features on EFG Hermes ONE, making it Egypt’s first stock trading app with this option and forging key partnerships with Azimut, MasterCard, and Ollin to expand payment and consumer finance solutions. PayTabs Egypt launched four new alternative payment methods: Forsa, Aman, Halan, and Souhoola, introducing BNPL options. It also rolled out Basata for in-store payments via mobile reference codes. It became the first platform in Egypt to process American Express cards and expanded into B2B payments and social commerce with “Paymes.” The parent company, EFG Finance, is currently considering a strategic divestment to optimize operational efficiency. In 2024, EFG EV Fintech navigated a tough economic climate by focusing on strategic growth and capitalizing on new opportunities. A key milestone was Digified’s successful FRA license to provide digital KYC services to NBFIs. The company also refined its portfolio management, segmenting companies by performance and tailoring strategies accordingly driving growth and exits for high performers, supporting and seeking acquisitions for medium performers, and exploring exit options for low performers. Despite sluggish funding markets and cautious regional investors, some renewed investment emerged due to local currency stability. While many startups struggled with high valuations and postponed fundraising, EFG EV Fintech remains cautiously optimistic for 2025, expecting better funding conditions and expansion opportunities if global economic trends continue to improve. 11 10 12 In 2024, Bedaya achieved significant growth, ranking third in the Egyptian mortgage market for loan value and surpassing its budget by booking over EGP 3.0 billion in loans, well above its EGP 2.2 billion target and nearly triple the previous year’s EGP 1.1 billion. The company capitalized on cross-selling synergies with EFG Corp-Solutions and maintained conservative lending practices with low loan-to-value ratios across its retail and portfolio acquisition segments, ensuring prudent growth despite rapidly rising interest rates. A key milestone was Bedaya’s issuance of its fourth securitization in October at EGP 1.4 billion, followed by an additional EGP 1.78 billion issuance in December, bringing its total securitizations to EGP 7.5 billion and cementing its status as the largest bond issuer in Egypt’s expanding mortgage market. Bedaya also focused on operational excellence by streamlining processes and restructuring departments, investing in its workforce to enhance productivity and support its long-term sustainable growth strategy. In 2024, Fatura achieved key milestones by reducing losses 33% while maintaining strong sales, thanks to strategic efficiencies and expansion into new verticals. Collaborations such as with Oracle boosted productivity, and the company maintained a fulfillment rate of over 90%, serving over 35,100 retailers and 1,100 wholesalers. Fatura also enhanced its network by cleaning up duplicate accounts, deploying anti-fraud measures, and preparing for machine learning-driven security in 2025. The mobile app-centric approach drove higher transaction values and improved user experience with new account management features. Fatura streamlined its team, launched talent incentives, and focused on targeted hiring. Diversification advanced with the launch of “Haraka” for the F&B sector and expansion into consumer supplies. Meanwhile, the parent company, EFG Finance, is reviewing a potential strategic divestment from Fatura to optimize value. In 2024, Kaf underwent a significant turnaround, more than doubling its revenues and improving operational efficiency, resulting in a net result EGP 40 million better than the previous year. Monthly operational losses declined from EGP 7.3 million to EGP 2.7 million by year-end, demonstrating solid progress towards profitability. Kaf expanded its reach to insure approximately 2.25 million clients across Egypt and is now projected to rank 8th in the national insurance market, up from 15th at inception. The company’s robust financial management and strategic cost optimizations helped it navigate inflationary pressures, while stakeholders’ confidence was reinforced by an investment of EGP 142 million to support growth and operational enhancements. Kaf also launched several new products in 2024, including a pension offering, corporate savings products, and a retail “Term Life” insurance product via its app, with pension deals reaching over EGP 300 million in assets under management. The integration of pension services into the app and foray into the retail segment signal a move toward more sustainable, diversified revenue streams. Strategic partnerships played a critical role in Kaf’s growth, such as its collaboration with EFG Hermes’ Asset Management division to jointly sell pension funds, a distribution agreement with Bank NXT to be activated in 2025, and a soft-launched partnership with Klickit to integrate digital term life insurance with educational payments. Bedaya Fatura Kaf In 2024, Bank NXT completed a major rebranding, approved by the Central Bank of Egypt and fully implemented by September, unifying its identity across all channels and reflecting its vision for innovation and customer empowerment. This drove a 52.8% increase in its customer base to 86,439, a 58.8% rise in individual borrowers, and strong product uptake per customer. The Bank expanded its ATM network to 115, launched new products including a co-branded credit card with Valu, a high-limit credit card, and corporate cards, and established a mortgage hub in Maadi. Operationally, customer deposits grew 35% and the loan portfolio by 34% Y-o-Y, while corporate loans surged 53% to EGP 17.9 billion and the mortgage portfolio grew 70% to EGP 1.8 billion, reaching over 8,000 mostly low-income customers. Notable launches included the ‘Super Daily Plus’ Savings Account with daily interest and free life insurance in partnership with Kaf Insurance. The Bank also partnered with the Urban Development Fund to expand mortgage solutions and invested in its workforce, growing to 1,360 employees, 29% of whom are women, and achieving a 77% employee satisfaction rate through training and rebranding programs. 13 At a Glance Bank NXT Commercial Bank Section Flag 14 15 STRATEGIC DIRECTION 16 17 CHAIRPERSON’S FOREWORD In line with our commitment to growth, we made significant strides in expanding our product offerings, leading transactions, and cementing our role as a key player in the markets we serve. As we close another remarkable year, it is with great pride that I present EFG Holding’s 2024 Annual Report. This year, we have faced numerous challenges, both locally and regionally, but through prudence, strategic foresight, and a deep commitment to our long-term goals, we have emerged stronger and more resilient than ever. The environment in which we operated throughout 2024 was undeniably demanding. From regional instability to evolving market conditions, we navigated turbulent seas with a steady hand. Early on, we took decisive steps to protect our interests by prudently scaling back exposure to markets under significant stress. Instead, we concentrated our efforts on regions where we have established a strong and growing footprint—Egypt, Saudi Arabia, UAE, and Kuwait. These markets, where our presence continues to expand and make an impact, have been central to our strategy, and our focus on them allowed us to weather the storm and position ourselves for future success. In line with our commitment to growth, we made significant strides in expanding our product offerings, leading transactions, and cementing our role as a key player in the markets we serve. Our efforts to innovate, diversify, and solidify our leadership have not only been a testament to the resilience of our business model but also to the strength of our human capital. At the heart of our success lies our dedicated and talented workforce— our greatest asset. We have continuously leveraged their expertise and passion to move the company forward, and the results speak for themselves. One of our most notable achievements this year has been in Egypt, where we made significant progress in developing new projects. We also rebranded aiBANK to become Bank NXT, reinforcing our position as a universal bank in the country. Our non-banking subsidiaries within EFG Finance, have been at the forefront of innovation, pioneering in areas from microfinance, financial Strategic Direction technology, to leasing, factoring, mortgage products, insurance, payments, B2B marketplace and micro- VC. These advancements have enabled us to diversify our offerings and strengthen our position as a leading universal bank. I am particularly proud of our unwavering commitment to human resources, which remains the cornerstone of our success. The Academy, a key initiative in our pursuit of excellence, plays a vital role in nurturing talent, strengthening our workforce, and ensuring that we are well-equipped to tackle the challenges of an ever-evolving business landscape. By focusing on the continuous development of our people, we are creating a pipeline of future leaders who will drive our success for years to come. Our commitment to sustainability and corporate social responsibility also remains steadfast. The EFG Foundation for Sustainable Development has been instrumental in advancing our efforts to give back to the community, focusing on areas such as health, education, poverty alleviation through economic empowerment, and social infrastructure. As we continue to grow and evolve, we remain dedicated to ensuring that our impact extends beyond financial returns, creating positive change in the communities where we operate. This year has also been a testament to the strength of our governance. I would like to take this opportunity to express my heartfelt gratitude to our brilliant board members, whose expertise, diversity, and unwavering support have been critical to our success. Their collective experience, drawn from various markets and industries, has enabled us to navigate challenges with confidence and make strategic decisions that serve the best interests of our stakeholders. I would also like to extend my sincere thanks to our management team and employees, whose hard work, dedication, and prudent approach to business have been indispensable in ensuring that we continue to thrive in this challenging environment. As we look ahead to 2025, we remain focused on the opportunities and challenges that lie before us. We are navigating a rapidly changing and often unpredictable market landscape, but our commitment to prudence, growth, and innovation will guide us through. We will continue to protect the best interests of our stakeholders—shareholders, employees, and the communities we serve—while investing in new products, services, and technologies that will allow us to maintain our leadership position in the market. Our strategy moving forward is clear. We will continue to grow, innovate, and introduce new products while safeguarding the interests of our stakeholders. We will maintain our commitment to sustainability, with a particular focus on green projects and social responsibility. Our approach will be guided by our core values and the six P’s, ensuring that we protect our people, promote innovation, and maintain the highest standards of corporate governance and social responsibility. In closing, I would like to express my deepest gratitude to everyone who has contributed to our success this year. The leadership, expertise, and dedication of our board, management, employees, and stakeholders have been instrumental in shaping the success of EFG Holding. As we embark on the journey ahead, we remain optimistic about the opportunities that lie before us. Together, we will continue to build on the strong foundation we have established and drive the company to even greater heights. Thank you for your continued trust and support. We look forward to another successful year of growth, innovation, and positive impact. Sincerely, Mona Zulficar Chairperson, EFG Holding 18 19 A NOTE FROM OUR GROUP CEO By improving operational efficiencies, diversifying revenue streams, and focusing on high-margin business lines, we are positioning ourselves to achieve sustainable growth. Reflecting on 2024, I am filled with pride and gratitude for the incredible journey that EFG Holding has embarked upon this year. Our team’s resilience, adaptability, and drive have been instrumental in navigating the challenges and opportunities we encountered. This year has reaffirmed our belief in the power of our core pillars, which guide us in our pursuit of excellence: People, Positioning, Presence, Profitability, Public Responsibility, and Product Development. Our People remain at the heart of our success. In 2024, we took significant steps to ensure that our employees continue to feel valued and supported in their roles. We recognize that a motivated and engaged workforce is essential for innovation and sustained growth. As such, we made a concerted effort to invest in their well-being, development, and growth. We introduced several initiatives designed to enhance employee satisfaction, such as a more flexible working environment, salary adjustments to address inflationary pressures, and employee surveys to gather feedback and ensure we are attuned to the needs and aspirations of our teams. By promoting a culture of inclusivity, open communication, and continuous learning, we are strengthening the foundation for long-term success. In addition, we launched leadership training programs and mentorship initiatives that empower our employees to develop and progress within the company. At EFG Holding, we believe that nurturing talent is a continuous journey, and this year’s efforts reflect our commitment to being an employer of choice. Positioning remains one of the cornerstones of our strategy. In 2024, we took deliberate steps to reinforce our leadership across key markets and enhance our competitive advantage. Our brokerage division continued to exceed expectations, benefiting from strong market research, data-driven insights, and our long-standing relationships with institutional clients. We remain committed to maintaining our position as a trusted partner for investors, ensuring we continue delivering value and high-quality service. On the fintech front, our premier platform, EFG Hermes ONE, remains at the forefront of serving retail clients by providing seamless access to 35 diverse markets. This empowers our clients to uncover investment opportunities across various markets and grow their portfolios confidently and efficiently. In the dynamic world of investment banking, our team has successfully executed a series of landmark transactions this year, reinforcing our standing as a dominant force in the MENA region. We have consistently delivered exceptional results by prioritizing customer-centric solutions and maintaining an agile approach to evolving market conditions. This dedication has earned us the prestigious title of the #1 investment bank in the MENA Equity & Equity-Related category for 2024, as recognized by the London Stock Exchange Group (LSEG). These accolades underscore our prominent position in the region and our remarkable ability to secure a significant market share in transactions, including a leading number of senior advisory roles. Our continued success is a testament to our unwavering commitment to excellence and innovation in the investment banking landscape. One of the key strategic achievements of 2024 was the successful rebranding and name change of our commercial bank. This transformative initiative was undertaken to reinforce the bank’s market positioning and better position it to attract and serve affluent clients. The new branding seamlessly integrates within EFG Holding’s broader brand ecosystem, fostering enhanced cross-selling opportunities across our diverse business lines. By aligning our offerings with evolving market demands, this strategic move enables us to serve our clients holistically and effectively, ensuring we meet their needs with unparalleled expertise and value. Strategic Direction Our geographic Presence continues to be an essential pillar in driving EFG Holding’s growth. This year, we reinforced our position in the core markets of Egypt, Saudi Arabia, UAE, and Kuwait, each of which plays a pivotal role in our strategy. We believe these markets hold significant untapped potential, and our efforts to expand further have been instrumental in building a stronger regional network. We also made notable progress in Saudi Arabia, launching the Saudi Education Fund to invest in the country’s rapidly growing educational sector. Additionally, EFG Finance has allowed us to tap into the burgeoning SME market, which presents tremendous growth opportunities. Profitability is the ultimate measure of our success, and in 2024, we saw strong financial results across key business lines. Our brokerage division continued to lead the market, and our asset management business grew significantly. However, we recognize that profitability is an area where we must continuously strive for improvement, and we are laser-focused on optimizing our cost structures, refining our investment strategies, and increasing our margins. This year, we also emphasized enhancing our return on equity (ROE) and profitability metrics. By improving operational efficiencies, diversifying revenue streams, and focusing on high-margin business lines, we are positioning ourselves to achieve sustainable growth. We are committed to driving continued profitability in the years to come and delivering value for our shareholders. In line with our vision for long-term growth, we remain deeply committed to our Public Responsibility. The EFG Foundation has made meaningful strides in 2024, continuing its work in key areas such as education, healthcare, and poverty alleviation. Our commitment to sustainability and social responsibility is further reflected in integrating environmental, social, and governance (ESG) principles into our operations. As a company, we are dedicated to making a difference through sustainable investments and ethical business practices. By focusing on these areas, we contribute to the well- being of the communities we serve and align with global 20 We also made strides in enhancing our digital capabilities, introducing new platforms that make it easier for clients to access our services and interact with us. 21 trends, emphasizing the importance of responsible corporate behavior. Product Development has been another key focus in 2024. This year, we introduced new investment products tailored to emerging sectors, with a particular focus on sustainable and high-impact investments. Our efforts to diversify our product portfolio are aimed at ensuring that we remain relevant in an increasingly dynamic and competitive market. We also made strides in enhancing our digital capabilities, introducing new platforms that make it easier for clients to access our services and interact with us. By leveraging technology, we improve the client experience and drive efficiency across our operations. As we move into 2025, we are excited about the opportunities ahead. The challenges we faced in 2024—be it inflationary pressures, market volatility, or geopolitical uncertainties—have only strengthened our resolve. Our strategy drives growth, profitability, and value creation for all stakeholders. We are confident that we will continue to achieve remarkable success with our talented team, strong market positioning, innovation commitment, and dedication to sustainability. We will continue to build on the solid foundation we have laid and create lasting value in the years to come. Thank you to everyone at EFG Holding for your dedication, hard work, and commitment to excellence. I look forward to what we will achieve together in 2025 and beyond. Karim Awad Group Chief Executive Officer EFG Holding Strategic Direction 22 MANAGEMENT DISCUSSION AND ANALYSIS The Group booked its highest-ever recorded revenues of EGP 24.4 billion, representing a 66% Y-o-Y growth. The Group booked its highest-ever recorded revenues of EGP 24.4 billion, representing a remarkable 66% Y-o-Y growth, underpinned by increasing revenues reported by its three verticals. EFG Hermes had a strong year, with revenues surging 81% Y-o-Y to EGP 14.7 billion, representing 60% of the Group’s consolidated top line, driven by the outstanding sell-side performance, as well as unrealized gains on investments/seed capital, and foreign exchange gains. Sell-side revenues surged 95% Y-o-Y to EGP 7.4 billion, lifted by Investment Banking’s exceptional revenues and higher Brokerage revenues. The Investment Banking division continued to advise on a series of high-profile transactions, solidifying its position as a leading investment bank in Egypt and the region, recording revenues of EGP 2.4 billion, up a staggering 220% Y-o-Y. In comparison, Brokerage revenues climbed 65% Y-o-Y on the back of higher revenues generated by the MENA markets, namely Egypt and the UAE, to EGP 5.1 billion. This was also complemented by the growth in Structured Products’ revenues after the EGP devaluation and the increased executions of Egypt’s carry trade. On the buy-side, the business recorded revenues amounting to EGP 1.9 billion, up 47% Y-o-Y. Net profit after tax and minority interest rose 63% to reach EGP 2.5 billion, contributing to 59% of the Group’s consolidated bottom line. EFG Finance, the Group’s NBFI vertical, reported revenue growth of 60% Y-o-Y, reaching EGP 4.8 billion and representing 20% of the Group’s consolidated top line. This was a result of all of the different lines of business witnessing strong top-line growth. Valu’s revenues grew 66% Y-o-Y to EGP 1.9 billion, boosted by higher Overview fees and commissions as loans issued increased Y-o-Y, higher securitization gains, and foreign exchange gains. Tanmeyah’s strong performance in the year’s second half resulted in a 50% increase in revenues Y-o-Y to EGP 1.9 billion, on higher net interest income as the outstanding portfolio grew Y-o-Y. EFG Corp-Solutions’ Leasing revenues more than doubled, up 117% Y-o-Y to EGP 787 million, while its Factoring revenues grew 38% Y-o-Y to EGP 165 million. EFG Finance’s net profit after tax and minority interest more than doubled, up 134% Y-o-Y to reach EGP 815 million, contributing to 19% of the Group’s consolidated bottom line. Bank NXT saw another strong year, with its revenues increasing 37% Y-o-Y to EGP 5.0 billion, representing 20% of the Group’s consolidated top line. This growth was primarily driven by higher net interest income, which grew 54% Y-o-Y to EGP 3.9 billion, on the back of interest rate hikes during 2024 and strong growth in the Bank’s interest-earning assets. The Bank’s net profit after tax added 54% Y-o-Y to reach EGP 1.8 billion (of which the Group’s share is EGP 909 million), contributing to 21% of the Group’s consolidated bottom line. EFG Holding’s operating expenses (including provisions and ECL) increased 57% Y-o-Y to EGP 15.5 billion in 2024, driven by the increase in employee expenses and other operating expenses across the three verticals, as well as higher provisions and ECL at EFG Finance. This increase also reflects the translation of the Group’s USD- denominated costs into devalued Egyptian Pounds. In terms of profitability, the Group’s net operating profit rose 84% Y-o-Y to EGP 8.9 billion, driven by the growth in profitability across all lines of business. The Group’s net profit after tax and minority interest increased 71% Y-o-Y to reach a record high of EGP 4.3 billion. Group Revenues Group Net Profit (EGP mn) (EGP mn) 2023 14,717 2022 10,959 2021 6,187 2024 24,422 2024 4,254 2023 2,494 2022 1,803 1,553 2021 23 Strategic Direction 25 Revenue Contribution by Platform NPATM* Contribution by Platform 60% 59% 55% 62% 20% 19% 20% 14% 20% 21% 25% 24% 56% 72% 23% 13% 20% 15% 2024 2024 2023 2023 2022 2022 EFG Hermes EFG Finance Bank NXT EFG Hermes *Net Profit After Tax and Minority Interest EFG Finance Bank NXT In EGP mn FY24 FY23 Change Group Operating Revenue 24,422 14,717 66% EFG Hermes 14,686 8,131 81% EFG Finance 4,777 2,978 60% Bank NXT 4,959 3,608 37% Group Operating Expenses 15,480 9,848 57% Group Net Operating Profit 8,941 4,869 84% Group Net Operating Profit Margin 37% 33% - Group Net Profit after Tax & Minority Interest 4,254 2,494 71% EFG Hermes 2,529 1,554 63% EFG Finance 815 349 134% Bank NXT 909 591 54% Group Financial Highlights 24 EGP mn FY23 Bank NXT 3,608 Securities Brokerage 3,072 Holding & Treasury Activities 3,060 Tanmeyah 1,263 Valu 1,154 Asset Management 1,019 Investment Banking 734 Leasing 363 Private Equity 246 Factoring 120 EGP mn FY24 Holding & Treasury Activities 5,421 Securities Brokerage 5,055 Bank NXT 4,959 Investment Banking 2,352 Valu 1,911 Tanmeyah 1,897 Asset Management 1,521 Leasing 787 Private Equity 338 Factoring 165 FY24 FY23 Group Revenue by LOB Strategic Direction 26 EFG Hermes The Investment Bank EFG Hermes Securities Brokerage’s total executions in 2024 rose 27.1% to reach USD 103.5 billion, driven by higher executions in all its MENA markets, with the exception of a slight slowdown in Egypt (including GDRs) and Qatar. Brokerage revenues increased 65% Y-o-Y to EGP 5.1 billion. This increase in revenues was driven by higher revenues generated by core MENA markets, particularly Egypt, UAE, and KSA, as well as Structured Products. Egypt continues to be the largest contributor to total commissions, reaching 33.3%. UAE markets’ combined contribution held the second place, with a total contribution of 20.8%. KSA outpaced Kuwait to hold the third place, with a contribution of 16.6%, followed by Kuwait with a contribution of 13.3%. As a result of its solid performance during the year, EFG Hermes succeeded in sustaining its leading position as the broker of choice across its footprint, maintaining its first-place ranking on the EGX with a market share of 33%. Foreign participation came in at 10% during the year, with EFG Hermes successfully capturing over 45% of these institutional inflows. In the UAE, EFG Hermes maintained its first-place ranking on the DFM with a market share of 47% in 2024. On the ADX, EFG Hermes’ market share stood at a solid 29.5% by the end of the year, maintaining its second-place ranking on the exchange. In Kuwait, the division captured additional market share to reach 28.4% in 2024, ending the year in second place. Foreign participation accounted for 11.3% of the total market, of which EFG Hermes captured 48%. In Saudi Arabia, EFG Hermes Securities Brokerage continued to grow its market share, recording 5.6% in 14.7EGP BN Investment Bank Revenues in 2024, up 81% Y-o-Y Securities Brokerage Research 2024, on the back of several IPOs coming out of the Kingdom. The Firm has maintained a sixth-place ranking among brokerage firms only and a fifth-place ranking among foreign brokerage firms. In Frontier, EFG Hermes held the first-place ranking in Kenya, with a 41.5% market share. For 2024, EFG Hermes captured 36.3% of the 48.8% foreign market activity. In Nigeria, the Firm placed sixth in 2024, with a market share of 6.8%. In 2024, EFG Hermes’ Research division continued to solidify its leadership in the industry, achieving the Research House of the Year award by the Saudi Capital Market Awards for the second year in a row. The team expanded coverage with 15 new stocks, aligning with surging ECM activity, and played a key role in EFG Hermes’ Investment Banking division’s execution of nine IPOs. Saudi Arabia remained a key focus. The division leads in stock coverage and execution, offering real-time, on- the-ground insights. This strategic edge reinforces EFG Hermes as the go-to research partner for institutional investors navigating the region’s evolving markets. With 249 stocks under coverage in nine countries across 11 markets, the division sets the industry standard for delivering the most comprehensive and impactful research on MENA to clients worldwide. EFG Hermes’ Investment Banking division has cemented its leading position as the regional investment bank of choice for partners and clientele in the MENA region. Leveraging decades of industry and market acumen and backed by industry experts, the flagship division continues to advise on the region’s largest, most prominent transactions in the mergers and acquisitions (M&A), equity capital markets (ECM), and debt capital markets (DCM) spaces. By the end of the year, the division recorded a total of 38 ECM, DCM, and M&A transactions across its footprint, with an aggregate value of over USD 22.6 billion. The division’s revenues more than tripled, up 220% Y-o-Y to EGP 2.4 billion, up from EGP 734 million in 2023. Reinforcing its leadership position in the GCC ECM landscape, the division successfully executed 15 equity offerings across four different exchanges, showcasing the Firm’s ability to drive impactful transactions across the region. EFG Hermes successfully acted as Joint Global Coordinator on the Accelerated Book Build (ABB) for Helmerich & Payne’s USD 197 million exit from ADNOC Drilling, marking the second ABB for ADNOC Drilling this year. The transaction highlights EFG Hermes’ ability to drive success through its longstanding relationships with clients and deep understanding of regional capital markets. The Firm also acted as Joint Bookrunner and Joint Underwriter on the USD 264 million IPO of United International Holding Company, a subsidiary of eXtra, on Tadawul. The offering saw strong demand, being oversubscribed 132 times. Additionally, EFG Hermes played a key role as Co-Lead Manager and Joint Bookrunner in Lulu Retail’s USD 1.7 billion IPO on the Abu Dhabi Securities Exchange (ADX), which was oversubscribed more than 25 times, underscoring EFG Hermes’ ability to facilitate large-scale transactions. The division further strengthened its presence in the UAE, acting as Joint Bookrunner on Talabat’s USD 2.0 billion IPO on the Dubai Financial Market, marking the largest UAE IPO in 2024 and the biggest global tech IPO of the year. Lastly, the Firm acted as Joint Bookrunner on the USD 43 million Accelerated Book Build for the National Investment Company’s 3.2% stake sale on Boursa Kuwait. The transaction, which marks EFG Hermes’ second offering on the exchange this year, demonstrates the Firm’s regional prominence and ability to attract renowned international and regional institutional investors to various equity markets. On the debt front, EFG Hermes continued to demonstrate its ability to structure tailored financial solutions across Investment Banking key sectors. The Firm acted as sole financial advisor on Sylndr’s EGP 300 million working capital facility, introducing Egypt’s first asset-backed working capital financing solution. The team also concluded multiple securitization issuances, including six securitization bonds for Valu worth a combined value of over EGP 4.9 billion, a EGP 500 million future cash flow securitization for Badr University in Assiut, and Premium International for Credit Services’ 9th securitized bond issuance amounting to EGP 400 million. Reaffirming its expertise in mortgage-backed securitizations, EFG Hermes also successfully advised Bedaya Mortgage Finance on two securitization issuances worth a combined value of EGP 3.2 billion. In 2024, EFG Hermes solidified its leadership in M&A advisory with a series of high-profile transactions, particularly facilitating Gulf investments in Egypt. Notably, it served as the sole financial advisor to Talaat Moustafa Group Holding (TMG) on securing strategic investments from ADQ and ADNEC in a 40.5% stake of its hospitality arm, ICON Group, and advised ICON Group on acquiring a 51% stake in Legacy Hotels from TSFE and EGOTH, reinforcing confidence in Egypt’s tourism sector. The Firm also played a pivotal role in Electra Investment Holding’s USD 449 million acquisition of a 19.98% stake in Elsewedy Electric, strengthening its footprint in the energy sector. In Saudi Arabia, it advised Budget Saudi on its USD 121 million acquisition of AutoWorld, expanding its presence in vehicle leasing, and supported Cenomi Retail in selling a portfolio of brands to Abdullah Al-Othaim Fashion Company, underscoring its expertise in complex, strategic deals. EFG Hermes Securities Brokerage’s total executions in 2024 rose 27.1% to reach USD 103.5 billion, driven by higher executions in all its MENA markets. 27 Strategic Direction During the year, Asset Management revenues rose 49% Y-o-Y, on the Firm’s regional arm, Frontier Investment Management (FIM) Partners’ higher management fees, a lower comparable period which included unrealized losses related to SPAC warrant, in addition to the impact of the EGP devaluation on its USD revenues, and despite lower incentive fees. Meanwhile, Egypt’s Asset Management revenues inched up 5% Y-o-Y. In Egypt, AUM increased 8% Y-o-Y in 2024, driven predominately by markets appreciation across all asset classes and despite net outflows. Positive market performance drove AUM up 21%, led by equity portfolios and MMFs. Meanwhile, net outflows represented 13%, with MMFs outflows being the most significant. Regional AUM from FIM increased by 13.9%, driven by net positive performance across most portfolios, which added 6% to AUM growth. Meanwhile, the remaining 7.9% was attributed to positive net inflows on the back of onboarding new clients and further expansion in the Saudi market. EFG Hermes’ Private Equity division focuses on driving value-accretive investments in strategic and impactful sectors. As such, the division invests in businesses operating in key industries — including renewable energy, education, and healthcare — that generate lucrative financial returns and social and environmental impacts. In 2024, the division registered revenues amounting to EGP 338 million, indicating a jump of 37% Y-o-Y. On the renewables front, the division manages investments through its dedicated Europe-focused platform, Vortex Energy. Vortex Energy currently manages two companies, Ignis Energy and EO Charging, and spans across two verticals within the Energy Transition sector: renewable energy and e-mobility, respectively. Egypt Education Platform (EEP) remains one of the region’s largest education-focused platforms, with a portfolio of 23 schools and pre-schools serving over 12,000 enrolled students and a total capacity of approximately 25,000 students. Its education content division reaches three to four million students annually, while its transportation Asset Management Private Equity business moves over 3,000 students daily with a fleet of over 650 vehicles. In AY24, EEP reported consolidated revenues of EGP 3.5 billion, reflecting a 38% Y-o-Y increase, and an adjusted EBITDA of approximately EGP 1 billion, marking c. 50% Y-o-Y growth. The platform continues to expand through PropCo/OpCo partnerships and management agreements, with two new schools set to launch within the next 12–18 months. EFG Hermes launched its second education fund, the Saudi Education Fund, in the second half of 2024, targeting USD 300 million in capital commitments. The fund secured approximately USD 135 million in its first closing in January 2025 and aims to build a leading K-12 operator in Saudi Arabia, focusing on private international schools in alignment with Vision 2030. It has already entered definitive agreements to acquire eight schools with a combined capacity of 16,000 students and 10,000 enrolled students across Saudi Arabia (five schools), UAE (two schools), and Bahrain (one school). Operating under the “Spark Education Platform – SEP” brand, the fund is preparing for its 28 second closing in 2Q25 while actively exploring further expansion opportunities. In the healthcare space, the Firm’s healthcare-focused platform, Rx Healthcare Management (RxHM), delivered strong operational and financial results during 2024 as it continued to bolster its production capacities through United Pharma (UpH), which grew its revenues by c. 57% in 2024 compared to 2023. UpH has continued to be among the top suppliers to the market for life-saving IV solutions, acting as the main player stabilizing the hospital pharmaceuticals supply market in Egypt. UpH’s solid performance was driven by the introduction of new hospital-essential products in the market and successful price optimization across its product portfolio. Throughout 2024, UpH has continued to pursue its export strategy, significantly growing its export sales compared to 2023. UpH is committed to expanding its portfolio and local and foreign sales channels to cater to the Egyptian and nearby regional markets with growing unmet demand. 29 Tanmeyah EFG Finance Non-Bank Financial Institutions 4.8EGP BN NBFI Platform Revenues in 2024, up 60% Y-o-Y Tanmeyah, the Firm’s microfinance arm, closed 2024 on a high note, achieving record sales with a 35% Y-o-Y increase in loans issued. This strong growth reflects its expanding market presence and the success of strategic initiatives launched in 2023. By year-end, Tanmeyah’s portfolio surged to EGP 6.6 billion, marking a 43% annual increase, nearly double the broader market growth reported by the Financial Regulatory Authority (FRA). This momentum was driven by a larger average ticket size, which grew 40% Y-o-Y, offsetting a slight dip in active borrowers. The sharp rise in sales of the Very Small Enterprise (VSE) product, which carries a higher ticket size, also contributed to the strong performance. Beyond lending, Tanmeyah has diversified its offerings, introduced life insurance products, and obtained PCI DSS certification in preparation for prepaid card issuance. The company is also modernizing its operations, with a new core banking system set to go live by April 2025, following successful data migration and security testing. Meanwhile, Tanmeyah is strengthening its physical footprint, adding 36 new branches during the year to better serve its growing customer base. With both digital and physical expansion in motion, the company remains focused on scaling its reach and adapting to evolving market needs. By year-end 2024, Tanmeyah’s revenues stood at EGP 1.9 billion, growing 50% Y-o-Y, on higher net interest income as the outstanding portfolio grew Y-o-Y; in addition to a rise in interest rates, and despite lower fees and commissions, as responsible lending was not yet implemented until July 2023. Strategic Direction 31 30 Valu, MENA’s leading financial technology powerhouse, wrapped up the year with impressive growth, issuing EGP 14.3 billion in new loans—up 62% Y-o-Y—driving its loan portfolio to EGP 13.4 billion by year-end. This momentum was fueled by strong demand for newly launched products, along with targeted offers and promotions. Total gross outstanding portfolio, including securitized loans, surged 59% Y-o-Y to EGP 13.4 billion. Excluding securitizations, Valu’s loan book reached EGP 10 billion, reflecting a 62% annual increase, supported by an 82% rise in transaction volumes. Since its inception, total transactions, including prepaid card spending, have reached 7.8 million. Valu also continued expanding its merchant network, which grew 21% Y-o-Y to nearly 8,000 partners by the end of 2024. As a leader in consumer finance, Valu increased its market share to approximately 24%, up from 19% in 2023. EFG Corp-Solutions’ leasing arm delivered a record-breaking performance in 2024, with new bookings surging 32% Y-o-Y to EGP 5.3 billion. This growth was driven by a strategic focus on securing high-quality, bankable clients and strengthening relationships with partner banks and lenders. The business gained strong momentum in the latter part of the year, with EGP 2.0 billion in new bookings during the final quarter alone, accounting for 38% of the annual total and marking an impressive 243% Q-o-Q increase. This was fueled by contracts with major blue-chip clients across diverse industries. By year-end, the on-books outstanding portfolio expanded to EGP 7.4 billion, reflecting a 36% yearly increase. Despite macroeconomic and regulatory challenges, EFG Corp-Solutions – Leasing division reinforced its position as a market leader, demonstrating resilience and consistent growth. The Factoring portfolio sustained its exceptional growth in 2024, with its portfolio soaring 101% Y-o-Y to EGP 4.8 billion. This expansion was fueled by significant new drawdowns from major players in real estate, construction, healthcare, energy, and F&B. In line with its strategic shift towards larger, high- creditworthy clients, the number of clients decreased by 24% Y-o-Y, while the average ticket size surged 251% to EGP 24.9 million. By securing fewer but higher-value contracts, EFG Corp-Solutions – Factoring division strengthened its position in the market, delivering strong and sustainable growth. Valu EFG Corp-Solutions – Leasing EFG Corp-Solutions – Factoring As a leader in consumer finance, Valu increased its market share to approximately 24%, up from 19% in 2023. Bank NXT saw another strong year, with its revenues increasing 37% Y-o-Y to EGP 5.0 billion in 2024, primarily driven by higher net interest income, which grew 54% Y-o-Y to EGP 3.9 billion. The Bank’s net profit after tax added 54% Y-o-Y to reach EGP 1.8 billion (of which the Group’s share is EGP 909 million) in 2024, as revenue growth outpaced the growth in expenses. Bank NXT operating expenses, including provisions & ECL, rose a minimal 10% Y-o-Y to EGP 2.0 billion in 2024, primarily due to higher salaries on the back of Bank NXT The Commercial Bank promotions, new hires, and inflation, as well as higher other G&A expenses mainly related to IT expenses, rebranding, and outsourced services. This increase was offset by a 49% decline in ECL & provisions, reflecting a normalized ECL charge pattern, noting that the past three years witnessed elevated ECL charges in a successful bid to more than adequately cover the portfolio and enhance the bank’s coverage ratio, which reached 178% in 2024. In addition, there was also the positive impact of recoveries and debt asset swaps recorded in 2024. P&L (EGP mn) FY24 FY23 Net Interest Income 3,911 2,540 Net Fees & Commissions 680 907 Other Revenues 367 161 Total Net Revenues 4,959 3,608 Employee Expenses 942 771 Other Operating Expenses* 1,096 1,077 Total Operating Expenses 2,038 1,848 Net Operating Profit (Loss) 2,921 1,759 Other Expenses 278 203 Net Profit (Loss) 2,643 1,557 Net Profit (Loss) After Tax and Minority 909 591 Minority *Includes other G&A and provisions and ECL P&L Balance Sheet (EGP mn) FY24 FY23 Cash & Due from Central Bank 8,934 4,241 Due from Banks 11,994 11,526 Net Loans & Advances 30,094 21,082 Financial Investments 24,379 21,626 Other Assets 3,953 3,005 Total Assets 79,354 61,479 Due to Banks 542 2,676 Customer Deposits 68,011 50,901 Other Liabilities 2,521 1,439 Total Liabilities 71,074 55,015 Total Shareholders’ Equity 8,280 6,464 Balance Sheet Indicators: Loans/Deposits 48% 45% NPLs 4% 6% Coverage Ratio 178% 124% Total Capital Adequacy Ratio 16% 19% Strategic Direction Section Flag 32 33 EFG HERMES 35 SELL-SIDE OVERVIEW NOTE Through strategic initiatives and operational excellence, we have continued to thrive in our core markets of Egypt, Saudi Arabia, and the UAE. Reflecting on our achievements in 2024, EFG Hermes’ sell-side business has demonstrated resilience and adaptability, emerging stronger and more determined amid a complex global environment. Despite facing challenges such as fluctuating interest rates, currency devaluation, geopolitical uncertainties, and global economic difficulties, our unwavering commitment to innovation and client service has solidified our position as a market leader in the MENA region. Through strategic initiatives and operational excellence, we have continued to thrive in our core markets of Egypt, Saudi Arabia, and the UAE. The Securities Brokerage division achieved outstanding results in 2024, reinforcing its leadership in key markets. In Egypt, we held the position of the top-ranked broker on the Egyptian Exchange (EGX), with a market share of 33%, demonstrating our crucial role in stimulating market activity. Additionally, our brokerage division experienced significant growth in the UAE, with our market share on the Dubai Financial Market (DFM) increasing to 47% in 2024 from 39% in 2023. Our market share on the Abu Dhabi Securities Exchange (ADX) rose to 30% from 17.5%. This growth was driven by an increase in IPO activity and our success in attracting institutional and high-net-worth inflows. This year, the brokerage team focused primarily on innovation. The EFG Hermes ONE app has been enhanced to support both global and local trading, resulting in an impressive 50% increase in assets on the platform and a doubling of revenues from online trading in international markets by our retail clients. This progress was made possible by the implementation of e-KYC capabilities, which significantly expanded our customer base by simplifying the onboarding process and increasing customer accessibility. On the institutional side, we introduced a prime brokerage department in Saudi Arabia and the UAE, offering services such as custody, stock lending and 34 borrowing, and fund unit services. This initiative is set to create a platform with substantial growth potential and anticipated revenue streams in the coming years. Our Investment Banking division further solidified its position as a leader in 2024, landing the ranking of the #1 investment bank in the MENA Equity & Equity-Related category for 2024 by the London Stock Exchange Group (LSEG) achieving significant milestones across equity capital markets (ECM), mergers and acquisitions (M&A), and debt capital markets (DCM). The division closed 38 transactions, collectively valued at over USD 22.6 billion, reinforcing its position as a trusted advisor and execution partner. EFG Hermes cemented its ECM leadership in 2024 with landmark deals across the GCC. In Saudi, it was joint bookrunner for the USD 12 billion Aramco Second Offering—the largest secondary public offering on the Saudi Exchange—alongside major IPOs like Fakeeh Care Group (USD 764 million) and UIHC (USD 264 million). In the UAE, it executed key transactions, including the USD 935 million ADNOC Drilling Accelerated Equity Offering, Talabat’s USD 2.0 billion IPO, and LuLu’s USD 1.7 billion IPO. Other notable deals included Alef Education’s USD 515 million IPO, Parkin’s USD 428.7 million IPO, and Spinneys’ USD 375 million IPO. The Firm also played a crucial role in Helmerich & Payne’s USD 197 million divestment in ADNOC Drilling and Salik’s USD 30 million block trade. By year-end, EFG Hermes secured its top position in MENA ECM league tables by deal count and transaction size. In 2024, EFG Hermes solidified its M&A leadership with transformative deals across key sectors, particularly facilitating Gulf investment in Egyptian assets. A major highlight was advising Talaat Moustafa Group Holding (TMG) on ADQ and ADNEC’s strategic investment in a 40.5% stake of its hospitality arm, ICON Group, as well as ICON’s acquisition of 51% of Legacy Hotels. The Firm EFG Hermes also advised Electra Investment Holding on its USD 449 million acquisition of a 19.98% stake in Elsewedy Electric, underscoring its expertise in Egypt’s energy sector. Other notable transactions included Kazyon’s majority stake acquisition in Dukan and the sale of a stake in King’s College Hospital London Dubai. In Saudi Arabia, it advised Budget Saudi on its USD 121 million acquisition of AutoWorld and supported Cenomi Retail in selling a portfolio of brands to Abdullah Al-Othaim Fashion Company. EFG Hermes reaffirmed its dominance in securitization, executing multiple issuances as the sole financial advisor, transaction manager, bookrunner, underwriter, and arranger. It led Valu’s 8th to 13th securitized bond issuances, raising over EGP 4.9 billion, and concluded Premium’s ninth issuance worth EGP 400 million. The Firm also executed Bedaya Mortgage Finance’s fourth and fifth securitizations, valued at EGP 1.4 billion and EGP 1.8 billion, respectively, and structured a second corporate bond issuance of EGP 450 million for EFG Corp-Solutions. Additionally, it advised on Badr University Assiut’s EGP 500 million future cash flow securitization and secured an EGP 300 million working capital facility for Sylndr, reinforcing its leadership in structured finance. In 2024, EFG Hermes’ Research division reinforced its position as the MENA region’s top research house, maintaining its number-one ranking in Institutional Investor’s institutional investor votes. The division expanded its coverage with 15 new stocks, supporting surging ECM activity and providing critical pre-listing and post-IPO analysis for nine IPOs. A key focus was the Saudi real estate sector, where EFG Hermes led as the largest research house by stock coverage and on-the- ground execution. Its ability to deliver precise, real-time insights cemented its reputation as the go-to research provider for institutional investors navigating the region’s evolving markets. As we look forward to 2025, we have a clear vision for achieving significant growth and innovation. With a strong pipeline of upcoming deals and a strategic 36 EFG Hermes is well- positioned to navigate the challenges and opportunities of 2025, driving sustainable growth and reinforcing its rank as a market leader in the region. 37 focus on our core markets, we aim to enhance our presence in Saudi Arabia by pursuing mid- to large-sized transactions and building stronger relationships with key stakeholders. We are committed to further digitizing our brokerage services to enhance the client experience and improve operational efficiency. In parallel, our focus will be balancing our ECM and M&A activities while expanding our DCM offerings to include syndicated loans. This will allow us to diversify our service portfolio further and meet our clients’ evolving needs. With an unwavering commitment to excellence and a highly proactive approach to market opportunities, EFG Hermes is well-positioned to navigate the challenges and opportunities of 2025, driving sustainable growth and reinforcing its rank as a market leader in the region. Mohamed Ebeid Co-CEO of EFG Hermes, an EFG Holding company EFG Hermes 38 INVESTMENT BANKING EFG Hermes’ Investment Banking division has grown over the years to become the region’s most trusted advisory house and has successfully cemented its leading position as the regional investment banking partner of choice for partners and clients in the MENA region. Leveraging decades of industry and market acumen, the division continues to advise on the region’s largest, most prominent transactions in the mergers and acquisitions (M&A), equity capital markets (ECM), and debt capital markets (DCM) spaces by leveraging the multidisciplinary experience of over 50 professionals. It provides its clients with key economic, industry, market, and company- focused insights, steering the region with its solid on-the- ground presence and expansive track record. By the end of 2024, the division recorded a total of 38 ECM, DCM, and M&A transactions across its footprint, with an aggregate value of over USD 22.6 billion. In 2024, EFG Hermes’ Investment Banking division delivered an exceptional performance across ECM, M&A, and DCM, reinforcing its reputation as a leading financial advisor in the MENA region. In ECM, the Firm capitalized on its expanded presence in Saudi Arabia and the UAE to lead several landmark transactions. The division successfully expanded its operations, particularly in the ECM space, overseeing nine IPOs in the GCC, solidifying its position at the top of the regional league tables. These accomplishments highlighted the company’s dedication to establishing a leading regional role on transformative transactions, requiring substantial effort and collaboration with regulators to ensure the execution of these offerings. EFG Hermes’ Investment Banking division concluded the year having captured a large share of the most substantial transactions in the GCC region. The division closed 15 ECM transactions valued at USD 20 billion, 15 DCM transactions valued at USD 240 million, and eight M&A transactions worth USD 2.4 billion. By the end of 2024, the division recorded a total of 38 ECM, DCM, and M&A transactions across its footprint, with an aggregate value of over USD 22.6 billion. Overview 2024 Operational Highlights ECM EFG Hermes cemented its position as a market leader in equity capital markets (ECM) in 2024, achieving remarkable milestones across key regional markets. The Firm strategically doubled down on the Saudi market, ramping up its on-ground presence and expanding its coverage to generate an extensive pipeline of opportunities. This intensified focus yielded significant results, with EFG Hermes securing a leadership position in IPOs and follow-on offerings in Saudi Arabia and the UAE and breaking new records in terms of deal count and transaction size. In Saudi Arabia, EFG Hermes showcased its capabilities with landmark transactions, including its role as joint bookrunner for the USD 12 billion Aramco Second Offering, the largest secondary public offering on the Saudi Exchange. Other notable deals included the USD 764 million IPO of Fakeeh Care Group, the USD 264 million IPO of UIHC, and the advisory and underwriting of the USD 148 million Miahona IPO. In the UAE, the Firm maintained its a strong market share for follow-on offerings, executing pivotal transactions such as the USD 935 million ADNOC Drilling Accelerated Equity Offering and prominent IPOs such as Talabat’s USD 2.0 billion listing on the DFM, LuLu’s USD 1.7 billion, and Alef Education’s USD 515 million listings on the ADX, as well as Parkin’s USD 428.7 million IPO on the DFM. The Firm further solidified its market position with the USD 375 million IPO of Spinneys. Additionally, EFG Hermes acted as joint global coordinator on the USD 197 million accelerated book build for the divestment of Helmerich & Payne’s stake in ADNOC Drilling, facilitating a seamless transaction for one of the energy sector’s key players. The Firm also acted as the sole global coordinator on the USD 30 million block trade for Salik, successfully executing the transaction with strong market demand. Additionally, EFG Hermes served as a joint global coordinator on Taaleem’s USD 67 million accelerated bookbuild (ABB), leveraging its extensive investor network to ensure a seamless execution. In Kuwait, EFG Hermes was the market leader in IPOs, with standout deals such as Beyout’s USD 147 million offering on Boursa Kuwait. The Firm also led the USD 43 million ABB for Boursa Kuwait as the sole global coordinator. EFG Hermes’ commitment to excellence and deep market expertise culminated in its recognition as a leader in ECM across the MENA region. By the close of the year, the Firm secured its position at the top of the league tables, leading in both deal count and transaction size. 39 EFG Hermes 41 40 Aramco Secondary Offering – Joint bookrunner on the USD 12.4 billion secondary public offering on the Saudi Exchange. Talabat IPO – Joint bookrunner on the USD 2.0 billion initial public offering on the DFM. LuLu IPO – Joint bookrunner on the USD 1.7 billion initial public offering on the ADX. ADNOC Drilling AEO – Joint global coordinator and joint bookrunner on the USD 935 million accelerated equity offering. Fakeeh Care Group IPO – Joint bookrunner and underwriter on the USD 764 million initial public offering on the Saudi Exchange. Alef Education IPO – Joint global coordinator and joint bookrunner on the USD 515 million initial public offering on the ADX. Parkin IPO – Joint bookrunner on the USD 429 million initial public offering on the DFM. Spinneys IPO – Joint bookrunner on the USD 375 million initial public offering on the DFM. UIHC IPO – Joint bookrunner and joint underwriter on the USD 264 million initial public offering on the Saudi Exchange. Miahona IPO – Joint financial advisor, bookrunner, and underwriter on the USD 148 million initial public offering on the Saudi Exchange. Beyout IPO – Joint global coordinator and joint bookrunner on the USD 147 million initial public offering on Boursa Kuwait. Sale of Helmerich & Payne’s Full Stake in ADNOC Drilling – Joint global coordinator on the accelerated book build (ABB) on behalf of Helmerich & Payne, Inc. (H&P) for the full divestment of H&P’s stake in ADNOC Drilling, valued at approximately USD 197 million. Salik Block Trade – Sole global coordinator on the USD 30 million block trade. Taaleem ABB – Joint global coordinator on the USD 67 million accelerated bookbuild. Boursa Kuwait ABB – Sole global coordinator on the USD 43 million accelerated bookbuild. 2024 ECM Deals In 2024, EFG Hermes reinforced its position as a leading advisor in the M&A space, successfully executing a range of high-profile and transformative transactions across key sectors and geographies. Its efforts were marked by an influx of Gulf investment in Egyptian assets, particularly in the hospitality, education, energy, and retail sectors, with landmark deals underscoring its expertise in bridging regional opportunities with strategic investors. One of the year’s standout achievements was the landmark transaction involving Talaat Moustafa Group Holding (TMG). Serving as the sole financial advisor, this deal demonstrated the Firm’s ability to secure significant foreign investment, further cementing Gulf confidence in Egyptian ventures. Complementing this success, it also advised TMG on the strategic investment by ADQ and ADNEC in a 40.5% stake of its hospitality arm, ICON Group, through a capital increase. It also acted as the buy-side advisor to Icon Group on the acquisition of 51% of Legacy Hotels from the Sovereign Fund of Egypt (TSFE) and the Egyptian General Company for Tourism and Hotels (EGOTH). This transaction further highlighted its ability to attract high-caliber investors to Egypt’s thriving tourism and hospitality market. Additionally, it acted as sole financial advisor to Electra Investment Holding on its USD 449 million acquisition of a 19.98% stake in Elsewedy Electric, reinforcing the division’s strong track record in Egypt’s energy sector. The Firm also advised on the demerger of Al Arafa for Investment and Consultancies S.A.E into Concrete Fashion Group for Trade and Industrial Investments and Gtex for Trade and Industrial Investments, showcasing its versatility across complex, multi-stage transactions. The Firm advised Kazyon on its acquisition of a majority stake in Dukan, playing a key role in structuring the deal and a subsequent capital raise to support the company’s growth ambitions. Additionally, EFG Hermes advised on the sale of a stake in King’s College Hospital London Dubai. In Saudi Arabia, the Firm’s expertise shone through in advising Budget Saudi on its USD 121 million acquisition of AutoWorld, a strategic move expanding its presence in the vehicle leasing market. It also provided sell-side advisory services to Cenomi Retail for the sale of a portfolio of brands to Abdullah Al-Othaim Fashion Company, ensuring optimal outcomes in the highly competitive retail sector. M&A EFG Hermes Stake Sale in TMG’s Hospitality Arm, ICON Group, by ADQ and ADNEC - Sole financial advisor for Talaat Moustafa Group Holding (TMG) on the strategic investment, through a capital increase, of a 40.5% stake in TMG Holding’s hospitality arm, ICON Group (ICON), by ADQ, an investment and holding company based in Abu Dhabi, and ADNEC Group (“ADNEC”). ICON Group Acquisition of 51% in Legacy Hotels – Buy- side advisor to Icon Group on the acquisition of 51% of Legacy Hotels from the Sovereign Fund of Egypt (TSFE) and the Egyptian General Company for Tourism and Hotels (EGOTH). Demerger of Al Arafa for Investment and Consultancies S.A.E – Sole financial advisor on the demerger of Al Arafa for Investment and Consultancies S.A.E into two publicly listed companies, namely Concrete Fashion Group for Trade and Industrial Investments and Gtex for Trade and Industrial Investments. Budget Saudi’s Acquisition of AutoWorld – Sole financial advisor for United International Transportation Company, or Budget Saudi’s, USD 121 million acquisition of Al-Jazira Equipment Company, known as AutoWorld, a SEDCO Holding-owned vehicle leasing company. 2024 M&A Deals DCM In the securitization space, EFG Hermes showcased its unparalleled expertise by acting as the sole financial advisor, transaction manager, bookrunner, underwriter, and arranger on multiple issuances. The Firm successfully executed Valu’s 8th–13th securitized bond issuances, raising a combined total of over EGP 4.9 billion, demonstrating its ability to support innovative fintech solutions and cater to growing investor demand. It also concluded Premium’s ninth securitization issuance, values at EGP 400 million. Additionally, EFG Hermes led Bedaya Mortgage Finance’s fourth and fifth securitization issuances, valued at EGP 1.4 billion and EGP 1.8 billion, respectively, reaffirming its commitment to bolstering Egypt’s mortgage finance sector. The Firm also structured and executed a second corporate bond issuance worth EGP 450 million for EFG Corp-Solutions, underlining its strong foothold in corporate solutions. In short-term note issuances, EFG Hermes continued to play a leading role, advising on the fifth issuance of Hermes Securities Brokerage Company’s (HSB) senior unsecured short-term notes worth EGP 600 million. The Firm also arranged the first short-term note issuance for EFG Corp- Solutions, raising EGP 433 million, showcasing its versatility in addressing client needs for diverse financing instruments. EFG Hermes advised on Badr University Assiut’s inaugural EGP 500 million future cash flow securitization issuance, a milestone for one of CIRA’s flagship universities. This follows the Firm’s successful execution of two previous future cash flow securitizations for CIRA. Additionally, EFG Hermes served as the sole financial advisor on the EGP 300 million working capital facility for Sylndr. Cenomi Retail Sale – Sell-side advisor to Cenomi Retail on the sale of a select portfolio of brands to Abdullah Al- Othaim Fashion Company. Electra Investment Holding Acquisition of a Stake in Elsewedy Electric – Sole financial advisor to Electra Investment Holding on the USD 449 million acquisition of a 19.98% stake in Elsewedy Electric. Kazyon Acquisition of Majority Stake in Dukan – Advised Kazyon on the acquisition of a majority stake in Dukan and a subsequent capital raise. Sale of a Stake in Kings College Hospital London – Advised on sale of a stake in UAE-based King’s College Hospital London Dubai. Valu 8th Securitized Bond Issuance - Sole financial advisor, transaction manager, bookrunner, underwriter, and arranger on Valu’s 8th securitized bond issuance worth EGP 888 million. Valu 9th Securitized Bond Issuance – Sole financial advisor, transaction manager, bookrunner, underwriter, and arranger on Valu’s 9th securitized bond issuance worth EGP 615.75 million. Valu’s 10th Securitized Bond Issuance – Sole financial advisor, transaction manager, bookrunner, underwriter, and arranger on Valu’s 10th securitized bond issuance worth EGP 1.2 billion. Valu’s 11th Securitized Bond Issuance – Sole financial advisor, transaction manager, bookrunner, underwriter, and arranger on Valu’s 11th securitized bond issuance worth EGP 1,091.9 million. Valu’s 12th Securitized Bond Issuance – Sole financial advisor, transaction manager, bookrunner, underwriter, and arranger on Valu’s 12th securitized bond issuance worth EGP 667.3 million. Valu’s 13th Securitized Bond Issuance - Sole financial advisor, transaction manager, book-runner, underwriter, and arranger on Valu’s 13th securitized bond issuance worth EGP 519.2 million. Bedaya’s Fourth Securitization Issuance – Sole financial advisor, transaction manager, bookrunner, underwriter, and arranger on Bedaya Mortgage Finance’s fourth securitization issuance worth EGP 1.4 billion. Bedaya’s Fifth Securitization Issuance – Sole financial advisor, transaction manager, bookrunner, underwriter, 2024 DCM Deals and arranger on Bedaya Mortgage Finance’s fifth securitization issuance worth EGP 1.8 billion. EFG Corp-Solutions Short-Term Issuance – Sole financial advisor, transaction manager, bookrunner, underwriter, and arranger on the first short-term note issuance, valued at EGP 433 million for a one-year term for EFG Corp-Solutions. EFG Corp-Solutions Securitization Issuance - Sole financial advisor, transaction manager, bookrunner, underwriter, and arranger on the EGP 450 million second issuance for EFG Corp-Solutions. Badr University Assiut’s Future Cash Flow Securitization Issuance – Sole financial advisor, transaction manager, book-runner, underwriter, and arranger on the first EGP 500 million future cash flow securitization issuance for BUA. Sylndr’s Working Capital Facility – Sole financial advisor on the EGP 300 million working capital facility for Sylndr. Premium’s Ninth Securitization Issuance – Sole financial advisor, transaction manager, book-runner, underwriter, and arranger on Premium’s ninth issuance, valued at EGP 400 million. Hermes Securities Brokerage Company’s (HSB) Short-Term Note Issuance – Advised on HSB’s fifth issuance, an EGP 600 million senior unsecured short- term note issuance. TMG Securitization Issuance – Sole financial advisor, transaction manager, book-runner, underwriter, and arranger on TMG issuance, valued at EGP 758 million. 42 Awards Award Name Award Entity Middle East Equity House of the Year IFR Awards Best Investment Bank in Egypt 2024 Euromoney Best Securitisation Deal in Africa: Palm Hill Developments’ EGP 472 mn and EGP 421 mn securitisations EMEA Finance Best Social Securitisation Deal in EMEA: CIRA Education’s EGP 700 mn future flow securitisation EMEA Finance Best Securitisation Programme in EMEA: Valu’s EGP multi-billion securitisation programme EMEA Finance Best M&A House in the Middle East EMEA Finance Best Equity House in MENA EMEA Finance Best M&A Deal in Africa: Global Investment Holding’s USD 625 mn minority stake in Eastern Company EMEA Finance Best IPO in EMEA: OQ Gas Networks’ OMR 288 mn IPO EMEA Finance Best IPO in the Middle East: ADNOC Gas’ USD 2.5 bn IPO EMEA Finance Best IPO in MENA: ADES Holding’s SAR 4.573 bn IPO EMEA Finance Best Sustainable IPO in EMEA: Dubai Taxi Company’s USD 315 mn IPO EMEA Finance Egypt’s Best Real Estate Advisor 2024 Euromoney Investment banking revenues more than tripled, up 220% Y-o-Y to EGP 2.4 billion, on strong advisory fees. 43 Key Financial Highlights of 2024 Forward-Looking Strategy Looking to 2025, EFG Hermes’ Investment Banking division is poised for a year of transformative growth, underpinned by a robust pipeline, strategic market expansions, and a steadfast commitment to innovation across core markets. The year begins with strong momentum, marked by a solid lineup of mergers and acquisitions set to close in early 2025. Building on its stellar track record in this space, it aims to further capitalize on market opportunities and deepen its foothold in sectors with high growth potential. In debt advisory, the division is set to broaden its capabilities significantly. While securitizations have historically been a key strength, the focus for 2025 will include expanding into syndicated loans, a move designed to diversify service offerings and meet the evolving needs of clients. Regionally, the Firm’s strategy emphasizes doubling down on Saudi Arabia, a market it views as central to its growth ambitions. With a vision to position itself as the leading investment bank not just in the Kingdom but across the GCC, it is investing heavily in building a robust pipeline and leveraging its regional expertise to deliver superior outcomes for clients. In Egypt, EFG Hermes Investment Banking remains committed to advancing M&A activities, with a focus on executing transactions that align with the evolving demands of the market. Furthermore, the Firm’s sights are set on revitalizing the IPO landscape, with the goal of leading a landmark IPO for an Egyptian company, targeting global investors and reinforcing Egypt’s position on the international investment stage. EFG Hermes 44 SECURITIES BROKERAGE EFG Hermes Securities Brokerage, the MENA region’s leading brokerage house, offers innovative and tailored products and services, secure multi-platform trading tools, market intelligence and insights, and unparalleled executional capabilities. Additionally, the division boasts Overview an expansive execution presence across the MENA region, including Egypt, Kuwait, UAE, Saudi Arabia. The division’s unmatched capabilities and global reach ensure maximum generated returns tailored to different investor preferences and risk profiles. In 2024, EFG Hermes Securities Brokerage demonstrated a robust performance across key markets, driven by strategic digital advancements and targeted efforts to enhance market share. The division focused on expanding its presence in core GCC markets while strengthening its digital trading platforms to meet the evolving demands of both institutional and retail clients. EFG Hermes maintained its first-place ranking in Egypt during the year, securing a market share of 33%. Retail investors remained the primary force in the market, comprising over 80% of trading volumes, with EFG Hermes leading retail execution with 10.4%. Foreign participation constituted 10% of total market activity, with EFG Hermes capturing 45% of this flow in 2024. EFG Hermes maintained its leadership in the UAE market throughout the year, securing the top position on the DFM with a 47% market share, driven by increased executions from foreign institutional investors. Foreign activity made up 35% of total market participation for the year, with EFG Hermes capturing nearly half of this flow at 49%. Meanwhile, the Firm ranked second overall in ADX with a 30% market share, as foreign investors accounted for 34% of total activity, of which EFG Hermes captured 24%. This growth was fueled by the increased activity in IPOs, reflecting EFG Hermes’ strong competitive position in the UAE market. In Saudi Arabia, EFG Hermes achieved stable performance, with market share remaining consistent compared to the previous year. Notably, the Firm experienced significant momentum towards the end of 2024, capturing a larger share of the local market and high-net-worth family offices. With a strengthened presence on the ground and a more robust team in the region, EFG Hermes positioned itself for future growth in Saudi Arabia. Its market share recorded 5.6%, on the back of several robust capital market activity in the Kingdom. In Kuwait, EFG Hermes continued to perform consistently, maintaining stable market share, ranking 2024 Operational Highlights second. The brokerage remains one of the top players in the country, further solidifying its regional strength across the GCC. The division captured additional market share to reach 28.4% in 2024. Foreign participation accounted for 11.3% of the total market of which EFG Hermes captured 48%, highlighting its ability to capitalize on the opportunities presented in the market. A cornerstone of this year’s success was the ongoing digitalization journey, which began in 2023. The institutional side of the business saw substantial improvements, including the recruitment of a seasoned expert in direct market access (DMA) and electronic trading. This investment proved invaluable as EFG Hermes gained significant market share in electronic trading and DMA, benefiting from a new algorithm that streamlined operations and strengthened the brokerage’s digital capabilities. The division also introduced a new business line with the establishment of a Prime Brokerage department, which includes services such as custody, stock lending and borrowing, and Lombard loans, primarily in the UAE and KSA. This expansion represents a forward-looking strategy to diversify offerings and create a robust pipeline of complementary services, potentially generating significant revenue in the next few years. EFG Hermes maintained its leadership in the UAE market throughout the year, securing the top position on the DFM with a 47% market share. EFG Hermes 45 46 FY24 FY23 Market Share Rank Market Share Rank Egypt* 33.0% 1 33.2% 1 UAE – DFM 47.4% 1 39% 1 UAE – ADX 29.5% 2 17.45% 2 Kuwait 28.4% 2 35.68% 2 Kenya 41.5% 1 38.54% 2 Nigeria 6.8% 6 9.5% 4 KSA 5.6% 5 5.97% 5 *Market share calculation is based on executions excluding special transactions, and includes (GDRs) *Note: Among foreign brokers not linked to commercial banks Brokerage Rankings (Percentage of Total Market Executions) The EFG Hermes ONE app underwent a major overhaul in 2024 as part of the Firm’s broader digital transformation strategy. The app, which now offers both local and global trading capabilities, has seen tremendous growth. The division doubled its revenues in Bahrain’s OLT global trading side of the app and increased AUM by 36%. A key development was the app’s rebranding and marketing campaign, designed to make it more accessible to a broader customer base. With a strategic shift towards targeting users regardless of net worth, the app now accommodates a more diverse clientele. Furthermore, the introduction of e-KYC capabilities significantly expanded the app’s capacity, enabling EFG Hermes to reach a larger audience and enhance customer experience. These developments mark a significant step towards achieving the Firm’s goal of building a comprehensive, user-friendly digital trading platform. The Structured Product Desk was launched in 2016 pursuant to the Firm’s strategy to enhance its capital market business and deliver a diverse product range to the business. During the year, the division’s Structured Product Desk’s revenues recorded EGP 270 million, representing an increase of 64% Y-o-Y in 2024. Online Trading Commission Breakdown by Market Structured Products EGP mn FY24 Egypt* 33.3% DFM 8.5% ADX 12.3% KSA 16.6% Kuwait 13.3% Qatar 6.4% Frontier Markets 3.5% Others 6.2% *Egypt includes (GDRs) of 4.0% in FY24 FY24 EFG Hermes EFG Hermes continued to offer unmatched corporate access in 2024 through its signature forums and conferences, which brought together large corporations from key markets around the world and institutional investors to foster economic growth and drive demand for its exceptional products. The 18th annual EFG Hermes One-on-One Conference, held in collaboration with the Dubai Financial Market (DFM) in March and the world’s largest investment forum dedicated to MENA, featured over 216 companies from 29 countries and direct meetings with 670 institutional investors. The 10th Annual London Investor Conference also provided a platform for global investors to explore opportunities in key sectors, with the theme “A New Era of Opportunities.” Both events played a critical role in deepening connections between MENA’s growing markets and international investors, reinforcing EFG Hermes’ position as a leading facilitator of investment and economic development in the region. Unique Corporate Access Brokerage Revenue (EGP mn) EGP mn FY24 FY23 Egypt 2,348 1,710 UAE 1,028 513 KSA 632 305 Kuwait 487 291 Frontier Markets 191 159 Structured Products 269 32 Others 101 62 Total Revenues 5,055 3,072 5,055 3,072 47 2024 2023 48 Average Daily Commissions (USD ‘000) 345 325 2024 2023 Awards EMEA Finance Middle East Awards • Best Broker-Middle East • Best Broker-Kuwait • Best Broker-KSA • Best Broker-UAE Promoting ESG Investment Strategies In response to the global shift in investor priorities and the rising demand for sustainable investing, the EFG Hermes Brokerage division continues to integrate Environmental, Social, and Governance (ESG) investment strategies into its platforms, including specific filters based on different ESG themes on EFG Hermes ONE. These themes aim to give clients exposure to the long-term macro trends influencing global markets through several tailored ESG themes that cater to diverse clientele and accommodate various risk profiles. The Renewable Energy theme highlights companies that earn a substantial part of their revenues from renewable energy sources, including wind, solar, hydropower, biomass, and geothermal energy. These companies are chosen based on their scale, the extent of their revenue exposure to renewable sources, and their geographic diversification. The Green Transformation theme highlights companies that are leading the way in sustainable innovation across various sectors. This includes areas such as electric mobility, green packaging, recycling, sustainable farming, green food, and carbon capture technology. The ESG leaders theme comprises large-cap companies with top ESG ratings based on independent assessments of environmental risk management, social responsibility, and corporate governance. These firms are considered best-in-class for managing non-financial risks. Lastly, the Women in Leadership theme features mid-cap companies with a higher-than-average representation of women in senior leadership roles across North America, Europe, and Asia Pacific. This selection is based on evidence linking diverse executive teams to improved company performance. With this selection of ESG-focused investment options, EFG Hermes ONE empowers clients to align their portfolios with global sustainability trends while pursuing long-term value creation. Forward-Looking Strategy Looking at 2025, EFG Hermes Securities Brokerage is poised to continue its digital transformation, with plans to fully digitize its brokerage services for both retail and institutional clients. The focus will be on enhancing operational efficiency, expanding market reach, and diversifying revenue streams to meet the evolving demands of the market. A key area of growth will be the further development of the EFG Hermes ONE app, which will continue to evolve with more advanced features aimed at making trading and investment more accessible. The app’s integration with Kenzi Wealth, set to launch in Q3 2025, will be a game-changer, offering clients a unique AI-driven, risk-based investment approach tailored to non-expert investors. This initiative will provide diversified investment options based on individual risk tolerance to a broader segment of the population, positioning EFG Hermes at the forefront of financial inclusivity. Additionally, the Firm will continue to enhance its direct market access (DMA) and electronic trading offerings. EFG Hermes will also explore market-making opportunities in the UAE, further deepening its presence in key markets and adding new dimensions to its brokerage offering. With these initiatives and a continued focus on digital innovation, EFG Hermes is well-positioned for a strong and successful 2025. 49 EFG Hermes RESEARCH For over 40 years, EFG Hermes’ Research division has been the region’s premier provider of in-depth, real-time market insights, with macroeconomic, strategy, sector and equity expertise crafted by award-winning analysts. With 249 stocks under coverage in nine countries across 11 markets, the division sets the industry standard for delivering the most comprehensive and impactful research on MENA to clients around the world. With on-the-ground insights from analysts, the division’s ability to provide differentiated research products that identify opportunities and allow clients to make informed investment decisions is unmatched. The division’s increasing proficiency to constantly expand its coverage universe and tailor its product offering to the evolving needs of its clients has cemented its position in recent years as the research house of choice for equity and strategy research in MENA. In 2024, EFG Hermes’ Research division solidified its position as the premier research house in the MENA region, maintaining its standing as the number-one player, in terms of institutional investor votes in Institutional Investor. This achievement underscores its ability to provide high-quality, data-driven insights that guide investment decisions in an increasingly complex market environment. The division’s efforts this year were shaped by key thematic focuses, with a particular emphasis on the Saudi real estate sector – a market that continues to evolve rapidly and attract significant investor interest. As part of its commitment to deepening its market insights, the division initiated coverage on 15 new stocks during the year. This expansion aligns with the surge in ECM activity across the region, where the Research team played a pivotal role in supporting equity placements by providing comprehensive pre-listing research and post-IPO analysis on EFG Hermes’ Investment Banking division’s execution of nine IPOs across a broad range of sectors. 2024 Operational Highlights 2024 marked another significant expansion in the division’s research coverage, particularly in Saudi Arabia, where it continues to lead as the largest research house, in terms of stock coverage and execution on the ground. Its position as the top research provider for institutional clients in Saudi Arabia is driven by its on-the-ground execution capabilities, allowing it to offer more precise, real-time insights. This strategic focus has ensured that EFG Hermes remains the go-to research house for investors looking to navigate the complexities of the Saudi market. EFG Hermes Research continued to broaden its research universe by identifying and analyzing new sectors poised for growth. In 2024, it expanded into the fintech and digital insurance industries, two sectors that are rapidly transforming financial services in the region. The research team provided in-depth assessments of these markets, identifying key players and analyzing their growth trajectories. Overview EFG Hermes Research continued to broaden its research universe by identifying and analyzing new sectors poised for growth. 50 A key milestone in 2024 was the integration of the CRM system with FactSet’s distribution platform, allowing it to track engagement analytics more effectively. It can now monitor which clients engage with reports, the number of unique clicks per report and the regions with the highest readership. Such insights have enabled the division to better tailor its research distribution, ensuring that clients receive the most relevant and impactful reports based on their investment interests. Additionally, the division upgraded its daily research templates and reports, making them fully responsive with improved accessibility across different digital platforms. These enhancements have not only optimized back-end efficiency but also provided clients with a seamless research experience. EFG Hermes Research’s commitment to excellence was, once again, recognized, named Research House of the Year by the Saudi Capital Market Authority (CMA) and receiving the Gold Award category for the third consecutive year. This award reflects its market leadership, the depth and quality of its research, and the trust it continues to build with institutional investors. Forward-Looking Strategy In 2025, EFG Hermes’ Research division is set to build on its momentum by enhancing its market coverage and delivering more sophisticated insights. A key priority will be the revamping of its research portal, introducing a more advanced and user-friendly experience that is aligned with the evolving needs of institutional investors. Its expansion across the GCC will continue, reinforcing its leadership position and deepening its expertise in high-growth markets. Additionally, the division is restructuring its team to sharpen its focus on NBFIs and new IPO entrants, ensuring it remains ahead of market trends. Sector-wise, it will intensify its coverage of education, fintech, and NBFIs, with new research initiations planned in real estate, hospitality, and education across the GCC. Companies Under Active Coverage 51 EFG Hermes (Number of Companies at Year End) KSA 89 48 UAE 47 Egypt Kuwait 21 14 Qatar 16 Oman Jordan 6 5 Morocco Bahrain Other MENA 2 1 Section Flag 52 53 BUY-SIDE OVERVIEW NOTE By maintaining strategic investments, prioritizing risk-adjusted returns, and driving value creation, we are dedicated to achieving superior outcomes for our clients and stakeholders. Our capacity to adapt to market fluctuations and seize emerging opportunities has strengthened our position as a leading investment platform throughout the MENA region during 2024. By maintaining strategic investments, prioritizing risk-adjusted returns, and driving value creation, we are dedicated to achieving superior outcomes for our clients and stakeholders. The Asset Management division has maintained its growth trajectory, with AUM in Egypt steadily increasing to EGP 38.7 billion in 2024. This growth has been supported by strong performances in equities and money market funds. Additionally, Regional Asset Management, operating under Frontier Investment Management (FIM) Partners, saw its AUM rise to USD 3.8 billion. This growth is attributed to successfully onboarding a significant Saudi equity mandate and strong performance across key investment strategies. The division has also secured several larger institutional mandates, which demonstrates our continued ability to attract and retain investor confidence in a dynamic market. On the private equity front, our strategy was focused on identifying and executing high-value investments in sectors that deliver both financial returns and positive social impact. In the education sector, we successfully launched the USD 300 million Saudi Education Fund (SEF), a pivotal step in expanding our presence in the GCC and aligning with Saudi Arabia’s Vision 2030. SEF entered into definitive agreements with GFH Financial Group to acquire seven international schools under the Britus Education brand, with a collective student capacity of approximately 12,000. This strategic investment enhances access to quality education across Saudi Arabia, UAE, and Bahrain, cementing our role in shaping the region’s education landscape. Despite industry-wide challenges, Vortex Energy delivered an outstanding performance, achieving a notable uplift in Net Asset Value (NAV) while significantly outperforming market trends. Investments in Ignis Energy yielded impressive results, driven by the increasing demand for data centers in Spain and an increase in AI and cloud 52 computing infrastructure. Furthermore, EO Charging, Vortex Energy’s electric vehicle charging platform, secured significant contracts for charging infrastructure for London buses, further strengthening its position in the market and reaffirming our commitment to innovation and growth within the healthcare industry. Rx Healthcare Management (RxHM) maintained its upward trajectory, with United Pharma achieving a remarkable over 40 growth in earnings, establishing itself as a leader in Egypt’s medical solutions sector. The division’s continued expansion and product diversification contributed to its sustained success, reinforcing EFG Hermes’ commitment to innovation and growth within the healthcare industry. Looking ahead to 2025, our buy-side business remains focused on identifying opportunities that align with our strategic vision, ensuring long-term growth and sustainable value creation. Asset management will continue to expand into high-growth regional markets, mainly in the UAE, Saudi Arabia, and Kuwait. It will leverage its expertise in forging new opportunities in equities and fixed income. Private Equity will heighten its presence in the GCC, prioritizing investments in education, healthcare, and renewable energy, capitalizing on the region’s dynamic economic landscape and demand for high-quality investment solutions. Our steadfast commitment to strategic expansion, disciplined risk management, and sustainable investment principles position us for continued success. As we advance, we remain dedicated to delivering top-notch investment solutions and maintaining our leadership as a trusted financial partner for investors worldwide. Karim Moussa Co-CEO of EFG Hermes, an EFG Holding company EFG Hermes ASSET MANAGEMENT EFG Hermes’ Asset Management division, the MENA region’s leading asset manager, offers its clients a diverse and comprehensive suite of mutual funds and discretionary portfolios comprising of country-specific and regional mandates, including money market, fixed income, indexed, and Shariah- and UCTIS-compliant mandates. Powered by a team of regional industry experts, EFG Hermes’ Asset Management division caters to an ever-growing client base of individual and institutional clients, as well as government- backed entities. The division unlocks value- accretive investment prospects, market insights, and other value-add services that are tailored to different individual preferences, financial objectives, and risk appetites. Overview The division strengthened its market presence by securing several significant mandates, attracting strong interest from institutional investors both locally and across the region. 54 EFG Hermes Asset Management delivered a strong performance in 2024, driven by market appreciation and strategic inflows despite periods of net outflows. Egypt Asset Management saw steady growth, with AUM reaching EGP 38.7 billion by the end of the year, rising 8% Y-o-Y, supported by gains in equities and money market funds. Meanwhile, Regional Asset Management (FIM) closed the year with USD 3.8 billion in AUM, reflecting a 13.9% increase, fueled by the successful onboarding of a major Saudi equity mandate and positive performance across multiple strategies. 2024 Operational Highlights 55 EFG Hermes Investor confidence remained high across both divisions, reinforcing EFG Hermes’ ability to navigate market complexities and secure new opportunities. The division strengthened its market presence by securing several significant mandates, attracting strong interest from institutional investors both locally and across the region. By effectively demonstrating its expertise and value proposition, the division positioned itself as a trusted partner for investors navigating a complex market landscape. In 2025, EFG Hermes Asset Management aims to surpass market benchmarks and deliver robust returns to investors by expanding its equities and fixed income. The Firm plans to leverage its expertise to identify high-potential investment opportunities, particularly in the GCC markets, including the UAE, Saudi Arabia, and Kuwait. By focusing on these key areas, EFG Hermes seeks to enhance its market position and provide clients with superior investment outcomes. Forward-Looking Strategy Asset Management revenues rose 49% Y-o-Y, on FIM’s higher management fees, a lower comparable period which included unrealized losses related to SPAC warrant, in addition to the impact of the EGP devaluation on its USD revenues, and despite lower incentive fees. Meanwhile, Egypt’s Asset Management revenues inched up 5% Y-o-Y. Key Financial Highlights Awards 56 57 EFG Hermes DEC-22 2.7 DEC-23 3.3 DEC-24 3.8 1.8 0.9 2.4 1.0 2.8 1.0 DEC-22 25.9 DEC-23 35.9 DEC-24 38.7 (EGP bn) (USD bn) Egypt AUM Regional AUM Egypt Equity Funds Portfolios Regional Portfolios MMFs and Fixed Income Regional Funds 12.6 12.2 1.0 1.4 1.7 19.7 14.8 22.2 14.9 Award Name Award Entity Best Asset Manager - Middle East EMEA Finance Middle East Awards Best Asset Manager - UAE EMEA Finance Middle East Awards MENA Best Asset Manager of the Year MEED 58 59 PRIVATE EQUITY EFG Hermes’ Private Equity platform drives value-accretive investments in sectors that are strategic and impactful by providing rapid and flexible investment capital. The platform’s unmatched capacity building and technical assistance, combined with its strategic leadership management, are some of the factors enabling it to grow its businesses swiftly across its footprint. As a long-term impact investor, the division invests in businesses operating in key industries — including renewable energy, education, and healthcare — that generate not only lucrative financial returns but also social and environmental impacts. On the renewables front, the division manages c.EUR 400 million of investments through its dedicated Europe- focused platform, Vortex Energy. The platform, which was launched in 2014 and completed cumulative investments of over EUR 1.5 billion, funds projects in the fast-growing energy transition industry to drive higher sustainable development and lay the foundation for the transition toward clean energy. Today, Vortex Energy is a leading energy transition investment manager that seamlessly executes deal sourcing, structuring, financing, asset integration, and divestment on a global scale. In the ever-growing education sector, EFG Hermes’ EEF is a USD 150 million investment fund that was launched in 2018. In line with its strategy to carry out socially impactful investments, EEF continues to grow and develop Egypt’s underserved K-12 sector through investments in schools and greenfield developments, in addition to building a vertically integrated platform to manage and enhance operations more effectively. Building on its successful business model, EFG Hermes launched the Saudi Education Fund (SEF), a USD 300 million investment aimed meeting the growing demand for world-class K-12 education in the Kingdom. In the healthcare space, the Firm’s healthcare-focused investment platform, RxHM, was established to manage diverse investments across the healthcare sector to meet the rapidly growing demand for premium healthcare offerings across Egypt, the MENA region, and Africa at large. In 2019, the platform successfully completed the acquisition of a majority stake in United Pharma, a leading Egyptian medical solutions provider, in efforts to expand United Pharma’s medical product offerings across the region. Overview In 2024, EFG Hermes’ private equity division launched the USD 300 million Saudi Education Fund (SEF), aiming to establish a world-class K-12 educational operator in Saudi Arabia. This initiative aligns with Saudi Arabia’s Vision 2030, which anticipates a significant increase in private school enrollment, necessitating strong educational institutions to meet the growing demand. As part of this strategy, SEF entered into definitive agreements 2024 Operational Highlights Saudi Education Fund with GFH Financial Group to acquire a portfolio of international schools under the Britus Education brand. This portfolio comprises seven schools: four in Saudi Arabia, two in the UAE, and one in Bahrain, collectively accommodating approximately 12,000 students, with nearly 10,000 currently enrolled. Building upon its successful experience in managing Egypt’s leading K-12 operator, the Egypt Education Platform (EEP), it is committed to delivering exceptional educational services to new student populations in the GCC region. Through this investment, the SEF aims to ensure that Britus Education thrives and adapts to the evolving needs of students and communities across the region. This strategic move underscores EFG Hermes’ dedication to enhancing access to high-quality education and fostering excellence by providing transformative learning experiences to students throughout the GCC. EFG Hermes EFG Hermes launched the Egypt Education Platform (EEP) in 2018 under its first education fund, establishing a leading presence in Egypt’s K-12 education sector. Since its inception, EEP has built a uniquely diversified portfolio comprising 25 assets, including 23 schools and preschools offering five curricula—American, British, IB, Montessori, and the Egyptian National Curriculum—with a combined capacity of approximately 25,000 students. In addition to its core educational offerings, EEP has expanded into complementary services, including Selah El Telmeez, an educational content business serving between three to four million students annually, and Option Travel, a specialized transportation service that facilitates the daily commute of over 3,000 students. EEP has demonstrated strong financial and operational performance, achieving a substantial year-on-year increase in key metrics. EBITDA grew by approximately 40% compared to the previous year, reflecting the continued success of its integrated education model. All underlying assets have performed well, reinforcing EEP’s position as a premier education platform in Egypt. Through ongoing investment and operational excellence, EEP remains committed to delivering high-quality education and expanding its impact across the market. Egypt Education Fund RX Healthcare Management delivered a solid performance in 2024, driven by impressive growth within United Pharma. The company saw a strong increase in earnings, with a growth rate of over 40%, reflecting the success of its strategic initiatives. A key factor behind this performance has been the launch of new products, further expanding United Pharma’s footprint in the Egyptian market. United Pharma has firmly established itself as the market leader in Egypt’s medical solutions business, now ranked number one in the sector. This growth has been primarily fueled by effective portfolio management, which has enhanced both market share and the company’s competitive position. With a continued focus on innovation and product development, RX Healthcare Management remains well-positioned to sustain its growth trajectory in the healthcare sector. The private equity arm is strategically positioning itself to capitalize on high-demand sectors, notably in education RX Healthcare Management (RxHM) Forward-Looking Strategy EFG Hermes 61 In 2024, the renewable energy sector faced significant challenges, including high interest rates, supply chain disruptions, market overcapacity, and sluggish demand growth in regions like Europe. These factors contributed to a downturn in renewable energy stocks and ETFs, with European renewable energy ETFs declining by over 20% during the year. Despite these industry-wide hurdles, Vortex Energy achieved a remarkable performance, with a substantial uplift in its Net Asset Value (NAV), outperforming the market by a significant margin. This success is largely attributed to Vortex Energy’s strategic investments in its portfolio companies, Ignis and EO Charging. The underlying portfolio companies generated c. EUR 300 million of revenue in 2024. Ignis has been delivering exceptional results since Vortex’s investment in 2021. By backing a proficient management team, there have been significant improvements in both EBITDA and revenue growth of 77% CAGR since the investment year. Its diversified business lines and sizable pipeline of Vortex Energy +15 GWs in various stages from operation to late-stage development have further contributed to this success. An additional driver of growth is the burgeoning demand for data centers in Spain, fueled by the rise in AI and cloud computing. Its capability to develop and sell assets to these data centers has positioned it advantageously in this expanding market. Similarly, EO Charging, its electric vehicle charging business, has made significant strides. It has secured contracts for charging infrastructure for London buses and attracted new clients, reinforcing its presence in the EV charging sector in the UK as well as its on-ground expansion in the US market. Revenues have increased almost 3x since the investment in 2022. and clean energy, to navigate through the challenges posed by market volatility. In the education space, the Firm remains optimistic about the substantial growth opportunities within the GCC, driven by Vision 2030 initiatives in Saudi Arabia and the UAE, as well as the broader regional demand for high-quality education. The Firm envisions further growth in 2025 and beyond, focused on enhancing educational services and upgrading existing platforms across the Middle East. By building on its experience and strong operational foundation, the Firm aims to make a significant impact on the quality of education in the region, contributing to the sector’s transformation. Similarly, EFG Hermes Private Equity sees immense potential in the clean energy and electrification sectors. With the growing global demand for decarbonization and the increasing urgency to address climate change, the Firm remains committed to its investments in renewable energy. The rising need for sustainable energy solutions, coupled with the global momentum towards addressing climate-related challenges, positions the Firm well for continued success in the energy transition space. 60 Section Flag 62 63 EFG FINANCE 64 EFG FINANCE OVERVIEW Functioning as an all-encompassing ecosystem, EFG Finance seamlessly merges multiple enterprises to provide holistic financial solutions for individuals and businesses at various stages of life and growth. EFG Finance is rapidly expanding and constantly evolving, with a growing portfolio of NBFI solutions across various industries in Egypt. We are currently home to number of super brands, comprising Tanmeyah, a microfinance player, EFG Corp-Solutions, which provides leasing and factoring services, PayTabs Egypt, a digital payment platform, Bedaya for mortgage finance, and Kaf for insurance, as well as Fatura, a technology-backed B2B marketplace. Valu, MENA’s leading universal financial technology powerhouse, is a sub-brand of EFG Finance that is independently led and run by CEO Walid Hassouna. EFG Finance has obtained the required license from the Financial Regulatory Authority (FRA) to introduce its newest subsidiary that will provide financial services tailored for small and medium enterprises. As we reflect on 2024, it is clear that our journey as EFG Finance has been one of resilience, adaptability, and innovation. Despite navigating through a volatile macroeconomic environment marked by rising interest rates, inflationary pressures, and regulatory constraints, our platform of eight subsidiaries has demonstrated a collective ability to weather challenges and emerge stronger. Each entity within our ecosystem has contributed uniquely to our shared success, driving financial inclusion, empowering businesses, and creating value for our stakeholders. Tanmeyah has exemplified the essence of inclusivity, carving out a leading position in the microfinance space by growing at double the pace of the market. This achievement reflects not just operational excellence but a deeper commitment to enabling financial access for underserved communities across Egypt. Tanmeyah maintained the quality of its growing portfolio through close risk monitoring and stringent collection processes. Through investments in technology, such as a new data center, and the roll-out of digital tools and ancillary products, Tanmeyah has modernized its infrastructure and was able to weather the negative repercussions of an adverse interest rate environment, while staying true to its mission. These strides forward speak to the power of innovation and the importance of a human-centric approach to financial services. Kaf Insurance, a relatively young player in its field, has made remarkable strides in expanding access to insurance services across Egypt. Doubling its revenues and climbing to a top 10 market position within a few short years speaks to the strength of its strategy and the market’s trust in its offerings. Kaf enacted strategic cost optimizations, innovative funding approaches, and focused on innovative solutions in order to achieve sustainable growth. In mortgage finance, Bedaya has proven its resilience and adaptability in a year dominated by rising interest rates. By focusing on asset liquidity generation and pivoting toward high-margin portfolio acquisition, Bedaya has not only met but exceeded its ambitious targets. This strategic shift underscores the company’s ability to anticipate market shifts and capitalize on opportunities while maintaining prudent risk management practices. PayTabs Egypt, has delivered robust growth by focusing on high-value merchants and strategic partnerships. The integration of payment solutions into the EFG Hermes ONE platform, along with collaborations with industry leaders like MasterCard, demonstrates how PayTabs Egypt continues to innovate and shape the payments landscape. Its role in redefining consumer finance management through partnerships such as the one with Ollin illustrates its forward-looking approach and dedication to customer-centric solutions. The funding environment for startups remained challenging throughout 2024. Despite this, EFG EV Fintech continued supporting its portfolio companies, and helped facilitating access to funding whenever needed. Fatura’s focus was on further operational efficiencies, improving margins and increasing fulfillment rates. In parallel, the company also worked on expanding into new verticals and enhancing operational productivity through partnerships with leading technology providers. Finally, EFG Corp-Solutions has proven to be a cornerstone of stability and adaptability in an otherwise challenging year. Unlike fixed-interest-rate products that are particularly vulnerable to market EFG Finance 65 fluctuations, the flexibility of EFG Corp-Solutions’ offerings have enabled it to navigate the high-interest- rate environment with ingenuity. By leveraging creative funding mechanisms, alongside an increased focus on factoring, EFG Corp-Solutions has achieved exceptional growth without over-reliance on equity injections. This success reflects not only the strength of our financial engineering but also the importance of being part of the broader EFG Holding ecosystem, which provides us with the resources and agility needed to thrive. As we close the year, the achievements of each subsidiary speak volumes about the collective strength of EFG Finance. Together, we have tackled significant challenges and seized opportunities to solidify our position as a leading NBFI platform. Looking ahead to 2025, we remain optimistic about the road ahead, underpinned by our unwavering commitment to innovation, sustainability, and customer-centric solutions. The future will undoubtedly present its own challenges, but if 2024 has shown us anything, it is that our ability to adapt and innovate will remain our greatest strengths. With gratitude for the hard work of our teams and the trust of our stakeholders, we move forward with confidence and purpose. Aladdin ElAfifi Chief Executive Officer EFG Finance, an EFG Holding company 66 67 TANMEYAH Tanmeyah, a subsidiary of EFG Finance, is a leading provider of financial solutions in Egypt with a concerted focus on micro enterprise segments. Tanmeyah’s unique approach provides critical financial solutions, empowering entrepreneurs to grow their businesses and contribute to the economic development of their communities. The company’s on-ground presence is steadily increasing across Egypt’s governorates, enhancing financial accessibility in underserved areas and underscoring its mission to drive sustainable growth and improve livelihoods. The company’s services are tailored to focus on the challenges faced by its clients, helping them develop resilient businesses while fostering economic inclusivity. Tanmeyah has developed many initiatives to increase financial inclusion. Tanmeyah has already established itself as a leader in meeting the requirements of its clientele in financing capital requirements for businesses as well as insurance needs. Overview Despite a challenging macroeconomic environment, Tanmeyah grew significantly faster than the market. Sales increased rapidly by an average of 35% Y-o-Y. These results were complemented by sustaining a healthy risk rate of 2%, reflecting Tanmeyah’s enhanced risk management framework. Tanmeyah’s portfolio reached EGP 6.6 billion, which represents an increase of 43% Y-o-Y, almost double the broader market growth. The upward trajectory in Tanmeyah’s loans issued and outstanding portfolio were fueled by an expansion in the average ticket size, offsetting the slight 5% decrease in active borrowers Y-o-Y in FY24. Tanmeyah’s weighted average ticket size increased 40% Y-o-Y, driven largely by rising inflationary pressures within the economy, as well as a 753% surge in sales of (VSE) product. To sustain this growth, Tanmeyah made substantial investments in infrastructure, launching a state-of- the-art data center to support scaling efforts and implement advanced technology solutions. This 2024 Operational Highlights included the successful launch of a mobile application, a unified application programming interface (API), and a WhatsApp-based digital artificial intelligence (AI) assistant, enhancing customer experience and increasing efficiency. Additionally, Tanmeyah introduced alternative revenue streams through its newly launched insurance business, which represented a significant portion of its revenue this year. In 2024, the company also focused on the vast expansion of Tanmeyah’s branch network, with 52 new branches opened, bringing the total number to 354 licensed branches and 342 operating branches by end of 2024. This expansion ensures an increase in accessibility for underserved communities across 25 governorates in Egypt. Tanmeyah also strengthened its operations through the growth of the team and the recruitment of senior bankers from the market, bringing the total employee count to more than 5,500 and reinforcing capabilities to cater to a growing client base near 30,000 new clients monthly. The company’s on-ground presence is steadily increasing across Egypt’s governorates, enhancing financial accessibility in underserved areas and underscoring its mission to drive sustainable growth and improve livelihoods. This year, Tanmeyah focused on fostering multiple partnerships to enhance operations, digitalization, and financial inclusion. Notably, Tanmeyah forged a strategic alliance with Gulf Insurance Group (GIG – Egypt), a leading provider of non-life insurance solutions in the country. This partnership enables Tanmeyah to expand its product offerings to include innovative insurance products, emphasizing its steadfast commitment to financial empowerment and inclusion. Additionally, Tanmeyah formed a strategic agreement with Egypt’s Micro, Small, and Medium Enterprise Development Agency (MSMEDA) valued at EGP 200 million. This partnership is aimed to finance approximately 10,000 micro-enterprises across Egypt, empowering local businesses and further promoting financial inclusion, particularly in underserved regions such as Upper Egypt and the Delta. Tanmeyah has introduced innovative microfinance loan packages tailored to very small segments of clients, empowering them to establish and grow their businesses, particularly in emerging sectors like agriculture. This new initiative is designed to support entrepreneurs in these fields with essential financial resources, enabling them to tap into previously underserved markets. Furthermore, Tanmeyah has robust plans to expand these offerings, broadening its scope to include the FMCG (Fast-Moving Consumer Goods), medical, and light transportation sectors. This expansion will provide additional opportunities for clients to scale their businesses and diversify into vital industries, driving economic growth and creating more sustainable livelihoods. Tanmeyah introduced a wide variety of affordable micro-insurance products, such as covering personal accidents, businesses, healthcare, funeral expenses, housing, and more. The company also launched its innovative new mobile branch, “Stay Savvy,” which targets boosting financial literacy and accessibility for clients and non-clients throughout the country. EFG Finance Section Flag 68 Tanmeyah also conducted a strategic certification agreement with COFICERT France to attain the prestigious AML 30000 certification, which is the international standard that represents the pinnacle of anti-money laundering (AML) and counter-terrorism financing (CTF) compliance, offering a robust and secure financial ecosystem for its clients. Tanmeyah successfully obtained the Payment Data Security Standard (PCI CSS) certification from Network Intelligence Company. This certification protects customers from potential data breaches, streamlines security practices, and increases operational efficiency. Tanmeyah, this year, was recognized as the ‘Best Place to Work’ by the Global Economics Awards and the ‘Fastest Growing Microfinance Company’ for the Awards and Certifications second consecutive year. This outstanding recognition conveys Tanmeyah’s dedication to formulating a supportive work environment for its employees and providing its customers with successful microfinance products and services. The Global Banking & Finance Review Magazine also recognized Tanmeyah as the ‘Best Financial Institution for Empowering Women in Business Egypt 2024’ and ‘Best Microfinance Company Egypt 2024’ along with “Microfinance Brand of the Year 2024 – Egypt”. Tanmeyah has also been awarded the Best Overall Financing Program’ and the ‘Women Entrepreneurship Support Provider of the Year” in Egypt for 2024 by the International Business Magazine. These awards recognize Tanmeyah’s unwavering dedication to financial inclusion and its active role in the Environmental, Social, and Governance (ESG) landscape. In 2025, Tanmeyah aims to continue the trajectory of innovation and digitalization by leveraging its advanced infrastructure and technology to boost growth. Key priorities entail expanding partnerships, launching new financial offerings, and maintaining a focus on financial inclusion. The launch of new digital products and services combined with data- driven expansion strategies will position Tanmeyah at the forefront of Egypt’s financial inclusion efforts, with the target of maintaining a client-first approach. Tanmeyah aims to redefine microfinance in the region and remain a positive, impactful force within the many communities it serves. While digitization remains a priority, Tanmeyah recognizes that neither a purely digital nor a solely Forward-Looking Strategy brick-and-mortar approach can fully meet client needs in this segment. Instead, it has adopted a “Click & Mortar” strategy, combining digital expansion with a physical presence. Plans are already in place to open 50 new branches. In 2025, the company will also focus on entering the payments space and is currently in the final stages of securing approval from the Central Bank of Egypt. The payments sector remains underserved outside Cairo and Alexandria, presenting a significant opportunity to leverage the company’s existing network. With a goal of issuing approximately 100,000 cards per month, the company aims to develop a comprehensive payments ecosystem. 69 EFG Finance 71 VALU Valu entered the market in December 2017 as a disruptor and pioneer of the regional fintech industry, starting out as a Buy-Now Pay-Later (BNPL) provider. Since its inception, it has evolved into the leading universal financial technology powerhouse in the MENA region. As a key component of EFG Holding’s broader strategy to expand its product portfolio and offer comprehensive financial solutions nationwide through digital platforms, Valu has continuously challenged market norms by introducing cutting-edge and seamlessly integrated financial services. Today, Valu is a renowned name in Egypt, significantly contributing to financial empowerment and inclusivity in the market and serving as a cornerstone in the regional fintech landscape with its seven distinct brands. With ‘U’, Valu has pioneered BNPL solutions in the MENA region, providing customizable financing plans for up to 60 months across more than 8,500 partners and online stores, covering a diverse array of categories. ‘Business’ serves as a B2B services platform specializing in corporate HR employee management systems, benefits, payroll cards, and a spectrum of financial services, including advances on salaries as well as early wage payouts. ‘Akeed’ serves as Valu’s unique savings platform. ‘Flip’ – Egypt’s most widely accepted e-gift card that can be used by both Valu and non Valu customers. ‘Sha2labaz’ is an instant cash redemption program with convenient repayment plans. ‘Ulter’ is a high-value financing program offered by Valu, allowing customers to make large purchases of up to EGP 60 million. Lastly, ‘Invest’ is an investment tool empowering customers to strategically invest through the AZ Valu Fund and EFG Hermes ONE. Valu also provides loans for big-ticket items exceeding the regular limit, up to EGP 20 million, for purposes such as education and home improvements. The Valu prepaid card offers users unparalleled flexibility in the payments universe, enabling real-time balance tracking and seamless transactions through the Valu app while being accepted at any Visa-enabled merchant worldwide. Valu’s co-branded credit card with Bank NXT is packed with benefits that are updated every month, including 1% cashback on fuel, food, and beverages, as well as a fee-free balance transfer program with exclusive pricing advantages. Overview +7,900 +7.8MN Merchants Transactions Valu has established numerous strategic partnerships across many industries, including retail, finance, and technology, further cementing its position as a leader in the MENA fintech space. 70 +16.5EGP BN +7.2MN Gross Merchandise Value Valu app downloads Valu has performed outstandingly on all avenues this year, surpassing last year’s results. Valu successfully exceeded its financial and operational targets. The company experienced a remarkable increase in transactions, closing the year at 4.1 million, compared to 1.9 million the previous year. This figure transcends all the cumulative transactions recorded from 2018 to 2023 and surpasses the yearly target set in 2024. Valu’s market share has increased from 18.5% in 2023 to around 24% this year, indicating robust growth in a highly competitive market. The Gross Merchandise Value (GMV) soared to over EGP 2024 Operational Highlights 16.5 billion in 2024, showcasing an impressive growth rate of over 81% from the previous year’s EGP 9.1 billion. The company’s revenues increased to EGP 1.9 billion in 2024, a 66% increase from the EGP 1.2 billion, highlighting exceptional financial performance. Valu has successfully rolled out its services to over 200,000 new-to-credit customers, who have conducted over one million transactions, as of year-end 2024. In 2024, Valu continued the momentum from its rebranding initiative launched the previous year, further solidifying its status as a leader in the rapidly evolving fintech landscape. The company remains dedicated to providing flexible and innovative solutions for all money- related needs. Having originated as the first BNPL platform in the MENA region, Valu has consistently driven innovation and transformed the fintech industry. This year, the company has expanded its offerings even further, presenting a diverse array of cutting-edge financial solutions that enrich the lives of individuals, empowering financial inclusion. One of the year’s most notable achievements was the successful launch of Ulter, a groundbreaking luxury financing solution designed for high-value purchases across various categories, including automotive, furniture, marine transport, and more. Ulter distinguishes itself in the market by offering the highest credit limit in the country and flexible repayment plans that extend up to 60 months. This product has unlocked a new level of financial accessibility for customers, effectively redefining luxury shopping in Egypt. Additionally, Valu partnered with ten leading luxury merchants this year to expand its offerings in the luxury market. Additionally, Valu has introduced Shift, an innovative auto loan product that simplifies vehicle purchases by removing the middleman, including individual sellers – a unique offering to the Egyptian automotive market. EFG Finance 72 Another notable achievement was the introduction of the Valu prepaid card in collaboration with Visa. This product has transformed Valu into an “open-loop” platform, allowing users to transfer their available limits onto a physical card that can be used across any Visa-accepting merchant in Egypt. Since its successful launch, there have been over 130,000 active cards issued and 1.26 million transactions with a value of EGP 1.83 billion. This innovative product has expanded Valu’s footprint significantly. The prepaid card has many unique features, including real-time balance tracking and seamless transactions with the Valu app. Valu successfully partnered with Bank NXT to launch a co-branded credit card exclusively for Valu users. This card has numerous benefits, including 1% cashback on fuel, food, and beverages, flexible installment options, and a fee-free balance transfer program. It also features a unique balance transfer option allowing customers to transfer their balances from any other credit card, offering exclusive processing and pricing benefits for three months. Valu also launched ‘Spark’it’ during the year, an innovative new product that redefines flexibility in financial transactions, allowing customers to make purchases and defer payments at no cost for an entire month. This groundbreaking solution reflects Valu’s commitment to empowering consumers with seamless, interest-free financial options that enhance their purchasing power without immediate financial strain. By eliminating upfront costs, ‘Spark’it’ not only provides greater convenience but also reinforces Valu’s mission to revolutionize everyday spending experiences. Introduced as the first FinBrew Hub in Cairo, Valu also launched Valu Café, which embodies Valu’s vision of integrating finance seamlessly into people’s lifestyles, offering a space where customers can enjoy artisanal coffee while exploring innovative financial solutions. Located in District 5, MARAKEZ’s dynamic mixed-use development, Valu Café fosters a sense of community, inviting visitors to connect, learn, and engage with financial literacy in a relaxed and inviting setting. Its thoughtfully designed space—featuring interactive digital touchpoints, a recreational corner, and a curated ambiance—ensures that every visit is both enriching and inspiring, reinforcing Valu’s commitment to innovation and accessibility in financial technology. Valu’s pioneering approach to securitization has been instrumental in its rapid growth. Since launching its first securitized bond issuance in 2021, the company has continually expanded its financial offering. Valu executed six securitizations this year alone—the 8th through 13th— raising over EGP 4.9 billion. These achievements highlight the company’s resourceful and agile approach to adopting financial solutions, fueling its rapid growth and helping to redefine financial accessibility and innovation in the fintech space. This year, Valu leveraged synergies within EFG Holding to significantly enhance its offerings and expand its customer reach. Collaborations with subsidiaries like Bank NXT and PayTabs Egypt, as well as cross- selling with EFG Holding’s brand universe, created new investment opportunities. The company’s strategy focused on diversifying its product portfolio while reinforcing its position as the leading fintech powerhouse in the MENA region. EFG Finance In 2024, Valu maintained its role as a pioneering financial technology platform by expanding its network of strategic partnerships across a diverse range of industries. These collaborations not only broadened the scope of Valu’s offerings but also reaffirmed its commitment to financial inclusion, accessibility, and innovation. By the end of the year, Valu had significantly scaled its network to over 8,500 merchants, bringing flexible financing solutions to an even greater number of consumers across Egypt. In the luxury automotive space, Valu partnered with MTI Automotive, part of MM Group for Industry and International Trade, to revolutionize high-end car financing in Egypt through Ulter, Valu’s exclusive program for luxury purchases. The collaboration offers tailored financing for premier brands, including Jaguar, Land Rover, Maserati, and Bentley. With flexible plans of up to 60 months and no down payment, the partnership brings unmatched convenience to business executives and high-net-worth clients seeking high-value vehicles. In the automotive services sector, Valu partnered with Ezz Elarab Group to provide interest-free maintenance financing. This offer includes zero percent down payment and no administrative fees for up to three months, making car services more accessible to a broader range of customers. Expanding into the luxury lifestyle space, Valu partnered with The Mob Collective to launch Dream Space, a recently launched company offering curated, turnkey home furnishing packages. By offering complete room designs with transparent pricing and Ulter’s high-limit, long-tenure financing, the initiative allows customers to effortlessly transform their spaces into sophisticated sanctuaries. In the hospitality industry, Valu partnered with Crowne Plaza West Cairo – Arkan, a part of the InterContinental Hotels Group, to offer flexible payment plans for accommodations, events, weddings, and food and beverage services. This collaboration brings Valu’s seamless solutions to a new dimension of luxury experiences in the heart of Sheikh Zayed. Further diversifying its education portfolio, Valu expanded its collaboration with ESLSCA University to offer flexible tuition installment plans of up to 60 months across all programs. Valu also enhanced accessibility to international education by facilitating tuition payments at the American International School of Egypt (AIS) West through the school’s Parent-Teacher Organization (PTO), streamlining the payment process for parents via Valu’s payment platform. On the retail front, Valu signed a cooperation protocol with B.TECH, one of Egypt’s largest electronics and home appliance retailers. The agreement introduced Strategic Partnerships exclusive installment offers and payment flexibility across B.TECH’s nationwide store network, empowering customers with diversified payment options. Valu also established partnerships in the e-commerce and digital payments sectors. Collaborating with ShipBlu and PayTabs Egypt, Valu allows customers to use their credit limits to pay for online orders through ShipBlu’s myBlu app, even when shopping from merchants outside of Valu’s network. This solution introduces a “Payment- on-Delivery” model, supporting Egypt’s transition to a more cashless society. It also partnered with Bosta and PayTabs Egypt to offer installment payment options for e-commerce deliveries, enhancing convenience and boosting sales for small and medium-sized businesses. Complementing this initiative, Valu teamed up with Flash, a QR code-based cashless payment fintech, to integrate Valu’s payment services across Flash’s merchant network. This allowed customers to pay for goods in-store or on delivery, enhancing convenience while eliminating reliance on traditional point-of-sale (POS) systems. In the philanthropic space, Valu partnered with the Magdi Yacoub Heart Foundation (MYF), enabling donors to contribute towards the construction of the Magdi Yacoub Global Heart Centre through Spark’it, Valu’s one-month fee- free installment product. The partnership aimed to simplify donations while supporting critical healthcare infrastructure. Through these diverse partnerships, Valu reinforced its position as a financial powerhouse that goes beyond traditional finance, making everyday aspirations – from education and mobility to wellness and luxury – more accessible. 73 Awards Award Name Organizer Most Innovative FinTech Company – Egypt 2024 Global Economics awards Best Overall Financial Technology Powerhouse Egypt 2024 International Business Most Comprehensive Suite of Financial Products Egypt 2024 International Business Best Overall BNPL Provider MENA Egypt 2024 International Business Top 45 2024 Africa Tech Award Best Overall Financial Technology Powerhouse - Egypt, 2024 Global brands Magazine Forbes Middle East's Top 50 Fintech Companies Forbes Middle East Best Financial Technology Company Egypt 2024 World Economic Magazine Fastest Growing Financial Technology Company – MENA - 2024 Business Tabloid Leading Financial Technology Powerhouse Providers MENA 2024 Global Business and Finance Magazine Awards 2024 Best Financial Technology Company 2024 - MENA Worldwide Finance Awards 2024 Most Convenient and Comprehensive Financial Solutions Provider Egypt 2024 World Business Outlook Payment Solutions Company of the Year Gulf Business Awards Most Innovative Financial Technology Egypt 2024 Global Business Review Magazine Most Comprehensive Suite of Financial Products - Egypt, 2024 Global Brands Magazine Rank: 3 Forbes Middle East Sustainability Leaders 2024 List (Green Finance) 74 EFG Finance 75 For the upcoming year, Valu aims to continue expanding its presence in the region, building on its momentum in Egypt and broadening its offerings in other countries, such as Jordan. Although competition in the fintech industry is intensifying, Valu has a positive outlook for the year ahead. The company’s strategy will prioritize innovation and diversification of its product portfolio, with the overarching goal of enhancing financial accessibility and providing customer-centric solutions to remain a leader in the industry. Valu is committed to setting new benchmarks with a progressive and innovative mindset, empowering its growing customer base with tools that enhance their lives. Forward-Looking Strategy FY24 FY23 Growth (% Y-o-Y) Number of Transactions 3,367* 1,850 82% Gross Merchandise Value (EGP mn) 16,512 9,142 81% *This does not include prepaid card transactions FY24 FY23 Product Category Contribution Categories FY24 Valu Products 26.5% Appliances & Electronics 20.5% Marketplaces 11.5% Supermarkets & Hypermarkets 7.4% Fashion 6.3% Home 6.2% Aggregator 4.6% Jewelry 4.4% Automotive 3.2% Services 2.4% Travel & Entertainment 1.4% Health 1.2% Sports & Well-being 1.2% Department Stores 1.1% Beauty 0.8% Education & Learning 0.7% Family & Pets 0.3% Food & Beverages 0.2% Gifts 0.05% * Contributions are based on financed amounts Categories FY23 Mega Stores 30.52% Electronics & Appliances 20.99% Furniture 8.87% E-Commerce 8.00% Fashion 7.33% Car Services 6.10% Jewelry 4.00% Services 3.49% Auto Loan 3.40% Health Care 2.16% Travel 2.13% Clubs and Gyms 1.24% Education 0.97% Others 0.60% F&B 0.21% * Contributions are based on financed amounts 76 EFG Finance EFG CORP-SOLUTIONS EFG Corp-Solutions consolidates the Group’s factoring and leasing business lines. Today, it has become an integral part of EFG Holding’s NBFI platform, EFG Finance, offering clients of various sizes and in numerous industries with bespoke leasing and factoring solutions that give them critical access to capital and liquidity. Leveraging the individual platforms under EFG Hermes and EFG Finance, the inherent synergies on a Firm- wide level allow EFG Corp-Solutions to provide regional market insights and intelligence, as well as tailored advisory and capital access solutions that upscale non-bank corporate financing landscape in Egypt and promote financial inclusion across the country. Today, the company boasts a diverse client mix of SMEs and mid- cap to large corporations, operating across a myriad of sectors, including real estate development, logistics and maritime, oil and gas, printing and packaging, education, healthcare, trading, and distribution, among others. Despite a challenging economic environment with rising interest rates and regulatory shifts, EFG Corp- Solutions had a successful year in 2024. At the beginning of the year, there were predictions of limited opportunities due to CBE restrictions. However, with the unwavering support of EFG Holding, the company was able to restructure and achieve excellent results. The company’s strategic restructuring led to significant expansion of its leasing and factoring portfolios, doubling net income. EFG Corp-Solutions solidified its position as one of the top three players in Egypt’s leasing and factoring markets, driven by a problem-solving vision and dedication to market leadership. The company achieved landmark transactions inside and outside Egypt, Overview 2024 Operational Highlights showcasing an unwavering commitment to excellence and operational strength. By the end of 2024, EFG Corp- Solutions recorded aggregate bookings amounting to EGP 12.3 billion, up 30% Y-o-Y from the EGP 9.5 billion recorded at year-end 2023. This sharp increase in bookings underscores the company’s resilience and adaptability. The management strategy focused on blue-chip clients that are reputable and credible in the market to be able to handle higher interest rates. The company’s efforts in securitization significantly boosted its liquidity and facilitated substantial growth. This growth was driven by the issuance of EFG Corp- Solution’s second securitized bond, valued at EGP 450 million. This bond was part of a larger EGP 3.0 billion securitization program, which has been crucial in overcoming the challenges posed by high interest rates. This year, a central strategy was diversifying the client base, entering new markets, and onboarding clients with high-value transactions. This included partnerships in export-led industries and import substitution projects. This year, the leasing side of the business experienced significant portfolio growth, which was reflected in the various collaborations with key banking partners. In 2024, the company’s new bookings rose 32% Y-o-Y to EGP 5.3 billion from the EGP 4.0 billion recorded in 2023. This growth reflects EFG Leasing’s strategic focus on securing solid, bankable clients while maintaining strong partnerships with banks and lenders. On the factoring side of the business, in line with a refined strategy to prioritize larger, high-creditworthy contracts, the number of clients declined by 24% Y-o-Y. This shift led to a substantial 255% increase in the average ticket size, which reached EGP 30.1 million in 4Q24. By securing fewer but larger deals, the company successfully strengthened its position in the market while driving overall portfolio growth. The factoring portfolio expanded through innovative solutions tailored for high-end clients in sectors such as pharmaceuticals and IT. In 2024, EFG Corp-Solutions made significant strides in enhancing operational efficiency and customer centricity. The company introduced data-driven dashboards and an end-to-end seamless client onboarding process, streamlining operations and improving customer experience. A notable partnership in 2024 was with Elsewedy Industrial Development for the SOKHNA360 project. This collaboration will provide comprehensive financing solutions for manufacturers within the Suez Canal Economic Zone, involving land acquisition, fixed assets, and working capital financing. Such strategic alliances highlight the synergies between EFG Corp-Solutions and the broader EFG Holding ecosystem, displaying its ability to deliver innovative financial solutions. Forward-Looking Strategy Looking ahead, EFG Corp-Solutions is set to maintain its strong momentum by introducing groundbreaking product offerings and exploring untapped sectors. By forging targeted collaborations, EFG Corp- Solutions will reinforce its dominance in key sectors. In response to the dynamic market environment, the company will implement a hybrid lending model to optimize balance sheet utilization and manage risk, positioning itself for sustained success. With a focus on innovation, sustainable practices, and customer centricity, the company is well-positioned to maintain its current growth trajectory and reinforce its status as a leader in Egypt’s leasing and factoring landscape. EFG Corp-Solutions solidified its position as one of the top three players in Egypt’s leasing and factoring markets. 77 PAYTABS EGYPT The PayTabs Group is an award-winning payment processing powerhouse established in Saudi Arabia in 2014. PayTabs Egypt continues to solidify its position as a leader in the digital payments landscape, focusing on driving financial inclusion in the country and digital transformation efforts. A joint venture between PayTabs Group and EFG Finance, PayTabs Egypt provides advanced digital payment solutions tailored to the diverse needs of corporates, SMEs, startups, and freelancers. By offering a secure online payment gateway, diverse payment methods, and innovative e-commerce solutions, the company is empowering businesses of all sizes to thrive in a rapidly changing digital economy. Overview In 2024, PayTabs Egypt displayed remarkable growth despite the dynamic challenges due to devaluation and market conditions. In 2024, PayTabs Egypt displayed remarkable growth despite the dynamic challenges due to devaluation and market conditions. The company recorded a 25% growth Y-o-Y in transaction volumes, driven by a focus on high-value merchants, which resulted in a 70% growth in gross merchandise value (GMV) and a 13% increase in the number of transactions. PayTabs Egypt successfully integrated a debit and credit card top-up feature on the EFG Hermes ONE online trading platform, making it the first stock trading application in Egypt to offer this feature. The company also strengthened its market presence through collaborations with key partners, such as Azimut, which provides seamless debit and prepaid card payments for stock trading. Another significant 2024 Operational Highlights 78 collaboration was with MasterCard, utilizing PayTabs Egypt as a white-label platform to enhance its cross- selling and upselling capabilities. PayTabs Egypt also partnered with Ollin, an all-in-one platform for lifestyle financing developed by Global Corp, changing the landscape of consumer finance management. Innovation remained the central focus of PayTabs Egypt’s success in 2024. The company launched four new alternative payment methods (APMs), Forsa, Aman, Halan, and Souhoola, introducing BNPL options to increase the range of payment options offered online and provide convenience for customers. Additionally, the roll- out of Basata, a feature of PayTabs Egypt that enables customers to use reference codes received on their mobile phones to pay at physical points of sale, further Forward-Looking Strategy Looking ahead, PayTabs Egypt is focused on sustained growth and innovation in 2025. The goal is to achieve a 25-30% Y-o-Y increase in transaction volumes. PayTabs Egypt aims to reinforce its merchant base, targeting big tickets that contribute to a high volume rather than increasing the number of merchants. The company plans to launch the integration of InstaPay, offering it as a payment method for online purchases, further simplifying digital transactions. PayTabs Egypt is also working on a partnership with Valu to digitize their points of sale with a closed loop application that works as a point of sale for the platform, which will make the company the first to deliver this offering to the market. This strategy will be leveraged to increase profitability while exploring new platforms for offering payment solutions and supply chain payments. Finally, PayTabs Egypt is engaged in discussions with EFG Finance, its parent company, as it is considering a potential strategic divestment from PayTabs Egypt to optimize operational efficiency, as part of its ongoing strategic review and commitment to maximizing value for its stakeholders. diversifies payment options and increases financial inclusion. PayTabs Egypt also became the first and only platform in the country to process American Express cards, setting a new benchmark for inclusivity in the digital payments ecosystem. PayTabs Egypt also participated in initiatives such as summer campaigns in partnership with Sony, catering to niche markets like professional photographers to promote their businesses online through PayTabs Egypt’s social commerce platform, “Paymes”. PayTabs Egypt launched an advanced B2B supply chain solution to facilitate payments between manufacturers, retailers/distributors and banks. These advancements emphasize PayTabs Egypt’s commitment to delivering exceptional value to its clients and stakeholders. 79 EFG Finance 80 BEDAYA MORTGAGE FINANCE Bedaya Mortgage Finance (Bedaya) is Egypt’s pioneering provider of non-banking financial services, distinguishing itself with offerings in residential, commercial, and administrative mortgage loans. Bedaya is a joint venture between Talaat Moustafa Group (TMG), Ghabbour Auto’s NBFI arm GB Capital, and EFG Finance, EFG Holding’s NBFI platform, cementing its unique position in the market. Since 2019, Bedaya has offered advanced mortgage financing solutions powered by the best quality of service in the market. It is a leading establishment in the mortgage financing market, offering a comprehensive range of tailored plans with repayment periods of up to 10 years. Bedaya also provides Ijarah programs with attractive options to assist clients in purchasing and renovating pre- owned properties. Overview EFG Finance 81 This year, Bedaya ranked third in overall business for the value of loans. Despite market challenges in 2024, with interest rates increasing at a rapid rate, the company exceeded its budget by booking over EGP 3.0 billion in loans compared to an EGP 2.2 billion target. This achievement portrays significant growth from the EGP 1.1 billion booked the previous year. Bedaya focused on capitalizing efficiently through its synergies through cross-selling with EFG Corp-Solutions. Overall, the company maintained highly conservative lending practices, with low loan-to-value ratios in both the retail and portfolio acquisition segments. Bedaya introduced its fourth securitization issuance in October, worth EGP 1.4 billion, advised by EFG Hermes, followed by another issuance in December, worth EGP 2024 Operational Highlights Forward-Looking Strategy Overall, the outlook remains positive for next year. Bedaya intends to issue more than two securitizations in 2025, aiming to double profitability and volume compared to this year. The strategy will focus on enhancing the portfolio acquisition arm supported by a highly skilled team. Bedaya will remain a key player in the mortgage financing industry by leveraging expertise and relationships in this segment. There are concerns regarding the risk of hyperinflation and rising inflation in the market; this could result in an oversupply in the real estate market and pressure on prices. Despite these challenges, Bedaya will maintain a conservative lending approach in retail and portfolio acquisition segments to mitigate risks and enhance its services in the mortgage landscape. 1.78 billion, emphasizing a trajectory of growth and potential for expansion. Since its inception, Bedaya has securitized a total of EGP 7.5 billion, with EGP 5.5 billion issued. This places the company as the largest bond issuer in the highly growing and competitive mortgage market, which has seen a significant increase in players since last year, from 14 companies to 22 companies. This year, the company concentrated on streamlining operations and restructuring departments to enhance efficiency. By optimizing workflows and investing in its workforce, Bedaya has made significant strides to boost productivity and ensure alignment with its overall strategy. These efforts underscore the company’s commitment to creating a dynamic and efficient workforce that promotes sustainable growth. Kaf Insurance was founded in 2020 after EFG Holding and GB Capital acquired a majority stake in Tokio Marine Egypt Family Takaful. Today, Kaf has evolved to be an esteemed tech-enabled insurance company in Egypt, presenting advanced and impactful insurance solutions for businesses and individuals in the savings landscape. Kaf Insurance’s primary goal is to create insurance products that promote financial inclusion and accessibility to the Egyptian population, fostering social and community value through insurance products that are provided by a secure digital platform. Overview KAF INSURANCE This year, Kaf focused on strategic initiatives for sustainable growth, increasing its portfolio, and diversifying in the right spaces. Kaf went through a substantial turnaround in 2024, as it more than doubled its revenues while improving the efficiency of the business. Kaf ended 2024 with a net result that is c. EGP 45 million better than that of 2023. This was driven by exceptional growth, operational efficiencies and FX. Monthly operational losses decreased significantly from EGP 7.3 million in 2023 to c. EGP 2.7 million by December 2024, highlighting progress towards financial stability. Kaf now insures approximately 2.25 million clients, expanding access to insurance solutions across Egypt. With significant growth, Kaf is now expected to rank 8th in Egypt’s 2024 Operational Highlights insurance market by the end of the year, a leap from its 15th position since inception. Despite market challenges due to inflation, Kaf has navigated the economic landscape with strategic cost optimizations and robust financial management. Stakeholders’ confidence was highlighted by a total investment of EGP 142 million this year, funding growth and operational improvements. In 2024, Kaf introduced several new products designed to drive sustainable growth and expand its market reach. The company launched its pension offering and began selling corporate savings products, marking a significant shift toward more sustainable and long- 82 For next year, Kaf will maintain its focus on sustainable growth, building products and offerings in various savings and retail spaces. A focus will also be successfully implementing the bancassurance agreement with Bank NXT as an essential step to increase revenue and clientele. Kaf also aims to enhance digitalization efforts using new technologies to streamline operations and offer customers top-notch insurance solutions. Kaf is targeting the transformation of Egypt’s insurance landscape through innovation, sustainability, and crafting long-term value for its clients and stakeholders. Forward-Looking Strategy EFG Finance 83 term revenue streams. This year, Kaf also reaped the benefits of integrating its pension services into the app, landing pension deals worth over EGP 300 million in assets under management. Additionally, the company ventured into the retail segment by launching the “Term Life” product on the app, which, while currently contributing less than 1% to revenue, represents an important step toward future diversification. These strategic moves reflect Kaf’s focus on growth in the right areas, achieving operational efficiencies, and enhancing overall performance. Partnerships remained a focus for Kaf’s strategy, enabling increased offerings and reaching new customer segments in Egypt. Kaf’s strategic partnerships, such as the one with EFG Hermes’ Asset Management division to jointly sell pension funds, have enhanced Kaf’s position as Egypt’s top long-term investment platform. Kaf also formed a distribution agreement with Bank NXT, set to launch in 2025, where Kaf representatives will be placed in Bank NXT branches, forming one of the largest intra-group synergies. Bank NXT has also introduced a new savings account with built-in insurance coverage from Kaf. Kaf also soft-launched a partnership with Klickit, an educational platform for kids and families; this partnership entails the integration of digital term life insurance with educational fees and tuition fee payments. EFG EV FINTECH EFG EV Fintech was founded in 2017 through a collaboration between EFG Holding and the government-supported venture capital fund Egypt Ventures, which is recognized as the leading boutique micro-venture capital firm in Egypt. The Firm identifies and supports strategic fintech startups, innovative businesses, and entrepreneurs from inception to success. With over 30 years of combined investment and regional experience, EFG EV Fintech manages the largest fintech portfolio in the country. This portfolio includes some of the most influential companies across vital sectors such as insurance tech, regulatory tech, agri-fintech, digital and open banking, and SME financing. The Firm provides legal help, business guidance, and support services to boost growth in Egypt’s fintech industry. This year, EFG EV Fintech has embraced strategic initiatives to thrive in the face of a challenging economic landscape. Although the funding market is slow and many startups are postponing their fundraising efforts, this environment offers unique growth opportunities in the coming months, driven by exciting developments ahead. A notable development for 2024 is the successful license Digified received from the FRA to provide a digital KYC services to non-banking financial institutions. EFG EV Fintech’s portfolio strategy is organized into three segments, high performers, medium performers, and low performers. For high performers, the focus is on managing growth and considering exits when they secure their next funding round. For medium performers, the team analyzes growth patterns, aids in fostering development, and looks for strategic acquisitions. Lastly, for low performers with poor growth prospects, the This year, EFG EV Fintech has embraced strategic initiatives to thrive in the face of a challenging economic landscape. 2024 Operational Highlights Overview 84 team identifies key areas of value and explores strategic acquisitions as potential exit opportunities. 2024 witnessed continued challenges for startups. Many that previously raised funds at high valuations are now struggling to grow into these valuations due to challenging market conditions. Investors from the UAE and KSA have adopted a more cautious approach, affecting startups’ ability to secure capital. However, some regional investors have reentered on the back of a seemingly more stable currency. Additionally, political and economic uncertainties in the region are posing further difficulties for portfolio companies. Nevertheless, the company remains cautiously optimistic that the funding environment and expansion opportunities will improve in 2025, particularly if global economic conditions, such as lower interest rates, continue to show signs of recovery. Looking ahead, EFG EV Fintech has a positive outlook for the anticipated improvement in overall market conditions in 2025. The primary goal is to identify exit opportunities that will enhance the company’s portfolio value, specifically focusing on attracting strategic acquirers and regional investors. Interest rates are expected to decrease next year, which should boost economic activity in emerging markets, including Egypt. Forward-Looking Strategy 85 EFG Finance 87 FATURA Fatura is an innovative B2B marketplace based in Egypt that leverages technology to facilitate business transactions. Since EFG Finance acquired Fatura in 2022, the company has transformed to align with EFG Finance’s strategic vision. This integration signifies an era of growth and expansion within the EFG Finance ecosystem. Fatura serves small- and medium-sized retailers in Egypt through three primary business lines. These include the distribution of Fast-Moving Consumer Goods (FMCG), supplies for Mechanical, Electrical, and Plumbing (MEP) needs, and a BNPL service. The BNPL service offers retailers short-term credit for transactions conducted on the platform. Overview A major highlight of Fatura’s performance this year has been the healthy fulfillment rate, which the company prioritizes as a key indicator of sustained growth. 86 In 2024, Fatura achieved significant milestones in operational efficiency, underpinned by the successful implementation of EFG Finance’s new strategy in 2023. The company reduced losses by 33%, while maintaining sales momentum, that was driven by strategic efficiencies and focused expansion into new verticals and industries. Key initiatives, such as the collaboration with Oracle, further enhanced operational productivity, streamlining workflows and bolstering revenue generation. A major highlight of Fatura’s performance this year has been the healthy fulfillment rate, which the company prioritizes as a key indicator of sustained growth. Fatura serves more than 35,100 active retailers and 1,100 active wholesalers, emphasizing increased reach. Fatura maintains an average fulfillment rate of +90%. Fatura also strengthened its customer base, refining its retailer and wholesaler network by enhancing account clean-up and transparency. By removing duplicate accounts and implementing anti-fraud measures, the company has laid the groundwork for sustained, high- quality growth. Plans to roll out machine learning-driven 2024 Operational Highlights defense mechanisms in January 2025 further reinforce this customer-focused strategy. The mobile app-centric approach continues to yield tangible results, with transaction values rising steadily, a testament to the growing adoption of Fatura’s digital tools. Technological upgrades, including integrated account management and bookkeeping features, have positioned Fatura to drive further digitization and improve user experience. While the team size has been optimized for efficiency, Fatura remained committed to talent development, implementing incentivization programs and hosting targeted recruitment initiatives, particularly for sales roles. This streamlined approach ensures the company is well-equipped to support its expanding operations and ambitious growth plans. Fatura’s diversification efforts have also gained traction, particularly with the launch of “Haraka,” a new line targeting the F&B sector, which marks a strategic push into restaurants and cafes. Moreover, the company is broadening its verticals into consumer supplies like cell phones and computers, solidifying its reach within key retail markets and capitalizing on sales-driven initiatives. EFG Finance Fatura is dedicated to advancing its technological capabilities through the launch of a robust, machine learning-powered defense system in January 2025. This next-generation platform will play a critical role in strengthening security, with a particular focus on fraud prevention and user retention. As part of its broader growth strategy, Fatura is set to merge with a leading industry player—an initiative designed to unlock cost efficiencies and revenue synergies, further accelerating market expansion. Following the merger, the newly combined entity is executing a comprehensive strategy aimed at expanding market share, increasing transparency, and capitalizing on cross-selling opportunities. Technology will remain at the core of this vision in 2025, driving an integrated approach based on four strategic pillars to maintain leadership in Egypt’s B2B marketplace: These combined initiatives lay a strong foundation for sustainable growth and reinforce the entity’s long-term leadership in the market. Finally, Fatura is engaged in discussions with EFG Finance, its parent company, as it is considering a potential strategic divestment from Fatura to optimize operational efficiency, as part of its ongoing strategic review and commitment to maximizing value for its stakeholders. Forward-Looking Strategy Strengthening Manufacturer Relationships Enhancing User Experience Expanding Adjacent Revenue Streams Realizing Merger-Driven Efficiencies Deepening collaborations to optimize supply chain efficiency and reliability. Offering users broader product access through improved in-stock availability and marketplace models. Unlocking growth through value- added fintech services. Capturing cost advantages and operational synergies resulting from the merger. Section Flag 88 89 BANK NXT 90 BANK NXT OVERVIEW The new brand is a reflection of our belief in empowerment—both for our customers and for our people. In 2024, Bank NXT’s rebranding was undoubtedly one of the most significant milestones in our history, representing a bold new chapter in our journey. From conceptualizing the vision to its full implementation, the rebranding initiative was an ambitious and transformative project that aimed to modernize our identity while reinforcing our deep-rooted commitment to innovation, customer satisfaction, and market leadership. The rebranding process began early in the year, with a clear focus on creating a new identity that reflects our vision for growth and our dedication to serving the evolving needs of our clients. Our decision to rebrand was more than just a change of name; it was about embracing a fresh perspective on how we interact with our customers, foster deeper relationships, and provide cutting-edge financial services in an ever-changing landscape. In a record time of less than a year, Bank NXT secured the necessary approvals from the Central Bank of Egypt and executed a seamless rebranding transition by September. This swift implementation ensured that the changes were fully integrated across all customer touchpoints, including ATMs, bank cards, branches, and digital platforms, 91 creating a cohesive and engaging customer experience. Every element of the rebranding was designed to be in line with our core values and our vision of being a customer-first, digital-forward institution. The new brand is a reflection of our belief in empowerment— both for our customers and for our people. It signals our commitment to understanding the needs of the modern-day customer, driving innovation, embracing digital transformation, and prioritizing personalization. Our rebranding aligns perfectly with our broader strategy of delivering innovative, high-quality financial solutions that empower individuals and businesses to achieve their goals. The full year financial results for 2024 reaffirm Bank NXT’s strong performance and commitment to delivering values to its shareholders. We reported an impressive 54% Y-o-Y growth in net profit reaching EGP 1.8 billion. The unprecedented performance came on the back of a surge in net operating income growth of 37% Y-o-Y to reach EGP 4.9 billion, supported by a robust net interest income growth of 54% reaching EGP 3.9 billion. Bank NXT maintained a solid financial position with total assets standing at EGP 79.4 billion, up 29% Y-o-Y picking up from a level of EGP 61.4 billion. The Bank successfully expanded its loan portfolio by 42.5%, bringing it to EGP 30 billion. On the liabilities front, customer deposits stood at EGP 68 billion, witnessing strong growth of 33.6%. Further, the Bank’s capital adequacy ratio stands at 16.11%, well above regulatory requirements, while return on equity reached 23.9%, reflecting strong profitability and financial resilience. At the core of our success, this year has been our relentless focus on delivering exceptional value to our customers. Through offering a full-fledged product catalogue and innovative product offerings, including our co-branded credit card in collaboration with Valu and our ‘Super Daily Plus’ savings account including insurance provided in partnership with Kaf Insurance, we have provided tailored solutions that address the unique needs of individuals and businesses alike. We’ve also expanded our network, increasing our ATM presence and enhancing our digital services to ensure greater convenience and accessibility for all. We also launched with the new brand our new internet and mobile banking platform with a unique look and feel, offering customers a seamless experience and convenience with more functionalities to be added in 2025. Our human capital continues to be our greatest asset. With over 1,300 employees and a strong commitment to their development, we have fostered a workplace culture that thrives on collaboration, growth, and employee satisfaction. This year, we launched several initiatives designed to engage our team, and the result has been an impressive 77% employee satisfaction rate. As we look ahead to 2025, we remain focused on driving digital transformation, expanding our geographic footprint, and introducing Shariah-compliant banking services to cater to a wider customer base. We are excited to build on the momentum we have generated, and I am confident that our continued commitment to innovation, operational efficiency, and human capital development will propel us towards even greater achievements. Tamer Seif Chief Executive Officer and Managing Director, Bank NXT Bank NXT 92 BANK NXT Founded in 1974, Bank NXT has undergone significant transformation since its acquisition by EFG Holding. The Bank has set out to become a leading provider of integrated retail and corporate banking solutions in Egypt, with a unique focus on people, entrepreneurs, and businesses that are driving change in the market. With a relentless commitment to customer-centricity, Bank NXT aims to provide innovative retail, institutional services, as well as treasury and investment services tailored to consumers and businesses of all sizes. This year was transformational for Bank NXT. The Bank successfully rebranded and redefined its identity, aligning its strategy with four core pillars: customer- centricity, digital transformation, operational efficiency, and human capital development. This milestone marked a significant transition, positioning Bank NXT as a prominent player in the market and enabling the bank to exceed its financial plan target by two years. 3.9EGP BN 4.9EGP BN 79.4EGP BN 1.8EGP BN 68EGP BN 23.9% 86,439 Net Interest Income (+54% Y-o-Y) Operating Income (+37% Y-o-Y) Total Assets (+29.2% Y-o-Y) Net Profit (+54% Y-o-Y) Total Customer Deposits (+33.6% Y-o-Y) ROAE (+4.2% Y-o-Y) Total Customers 93 In 2024, Bank NXT’s rebranding initiative was the highlight of the year. From conceptualizing the idea to full implementation in the market, completing a full rebranding by the end of the third quarter. Securing approval from the Central Bank of Egypt in January 2024, the bank completed the rebranding in record time, launching by September 30. This seamless transition unified the rebranding across all touchpoints, from ATMs, cards, and digital platforms to branches nationwide, ensuring a cohesive and engaging customer experience. Bank NXT’s rebranding reflected more than a name change. It embodied the bank’s vision for growth, innovation, and customer empowerment. During the year, the Bank succeeded in significantly increasing its customer base, with total clients reaching 86,439 as of December 2024 from 56,597 in December 2023, up 52.8% Y-o-Y. Individual borrowers grew by 58.8%, while the average number of products per customer stood at 1.6, exceeding expectations thanks to new product offering and a full-fledged product catalogue. These achievements reflect the Bank’s vision to deliver innovative, personalized financial solutions that empower clients. The Bank’s ATM network has expanded to 115 ATMs. Furthermore, it launched a suite of innovative products for the market, including co-branded credit card with Valu and a new high-limit credit card for niche customers. Offerings for corporate credit cards also grew at a rapid rate, with the number of issued cards rising to 30,000 from 8,000. Additionally, the Bank established a mortgage hub in Maadi, strengthening the customer base and tapping into new financial markets. On the Retail and Business Banking side, Bank NXT has experienced successful growth, with customer deposits increasing by 35% Y-o-Y and the loan portfolio rising by 34% Y-o-Y. The Bank’s primary objective is to drive growth through optimization, digital transformation, and the introduction of innovative services and product offerings. Early in the year, Bank NXT launched its innovative ‘Super Daily Plus’ Savings Account, offering customers a competitive daily interest rate and a range of exclusive 2024 Operational Highlights benefits. These include a 50% discount on personal loan administrative fees, a free first-year credit card, checkbook issuance, and quarterly prizes. In partnership with Kaf Insurance, the account also provides free life insurance coverage for balances up to EGP 1.0 million, based on a six-month average. On the consumer finance side, it introduced offerings and expanded its product portfolio. In collaboration with Valu, the Bank launched an exclusive co-branded credit card that provides customers with unmatched benefits such as 1% cashback on daily transactions, flexible BNPL options, and a zero-issuance fee. This card also features a unique balance transfer program and additional benefits for repayment and credit shield protection, providing the Bank’s customers with seamless financial management. The Bank has also launched a new high- limit credit card for niche customers. On the wholesale banking front, Bank NXT reaffirms its commitment to its customers to be the boutique bank of choice for entrepreneurs disrupting their markets and business, leading the way with a strong focus on sustainable change for communities, industries, and the local economic landscape. During 2024, the Bank successfully expanded its corporate loans portfolio to reach EGP 17.9 billion, up 53% Y-o-Y, while Corporate and medium enterprise customer base exceeded 700 customers, up 13% Y-o-Y. In 2024, Bank NXT launched initiatives aimed at driving growth and enhancing customer experience. A cooperation protocol with the Urban Development Fund (UDF) was signed to provide mortgage financing solutions for middle-income individuals purchasing units owned by the Fund. This partnership not only expanded the Bank’s real estate financing portfolio but also aligned with Egypt’s real estate financing objectives and highlighted its commitment to bettering financial inclusion nationwide. By the fourth quarter of 2024, the mortgage financing portfolio reached EGP 1.8 billion, serving more than 8,000 customers and achieving a significant of 70% Y-o-Y growth. Furthermore, 80.86% of the portfolio targeted low-income customers, emphasizing the bank’s focus on supporting underserved segments. One of Bank NXT’s core values is its commitment to human capital. By year-end, the Bank’s headcount reached 1,360, with women representing 29% of the workforce. The Bank implemented training programs that including 991 employees, including 483 employees who participated in rebranding awareness initiatives. Employee satisfaction has reached an impressive 77%, reflecting the bank’s commitment to having a positive work environment using a people- first approach. 94 One of the key pillars of Bank NXT is digital transformation. This was a central focus for the year. The Bank successfully introduced new online banking and mobile applications, coupled with a payroll system for corporate institutions, to enhance convenience and accessibility for customers. The number of registered digital users rose to 16,000 by the end of 2024. The success rate for outgoing transactions increased to 94%, reflecting an improvement in operational reliability. Bank NXT modernized around 80% of the expended ATM network by 28% in 2024 to the latest DN Generation Technology for better customer experience, compared to 50% the previous year. The ATMs offer full-function services and enhance the user experience by introducing Vynamic Connection Point software that simplifies and speeds up ATM use for Bank NXT customers. Additionally, Bank NXT partnered with Mindgate to develop a cutting-edge digital financial platform for corporate clients. The platform offers corporate cards, payroll management, and advanced analytics tools to streamline operations and fuel business growth. Digital Transformation Financial Highlights of 2024* Bank NXT implemented various strategic initiatives, including rebranding and introducing innovative products and services. As a result, the Bank’s net profits reached EGP 1.8 billion, reflecting a Y-o-Y growth of 54%. This improvement was driven by a higher net interest income of EGP 3.9 billion, which represents a 54% increase Y-o-Y from the EGP 2.5 billion recorded at the end of 2023. An expanding loan portfolio and an increase in corridor rates supported this growth. Additionally, net commission income reached a level of EGP 0.7 billion backed by heightened volumes of trade finance transactions and accelerated bookings of retail loans and business banking services. The Bank’s net operating income rose by 37% Y-o-Y to EGP 4.9 billion in FY24. Despite ongoing economic challenges in both local and global markets, Bank NXT maintained a capital adequacy ratio of 16.11% well above regulatory requirement, which supports its growth strategy. Total assets grew by 29%, to stand at EGP 79.4 billion, compared to EGP 61.4 billion in December 2023. On the liabilities front, customer deposits stood at EGP 68 billion witnessing a strong growth of 33.6%. Furthermore, total equity increased to a record EGP 8.3 billion for FY2024, representing a 27.4% rise compared to 2023. Looking to 2025, Bank NXT is committed to building on this year’s momentum. The second phase of digital transformation is underway, set to launch in April 2025. This launch will introduce advanced features, tokenization, and means of digital acquisition. Also under development is the roll-out of Shariah-compliant products and services, with the Islamic banking division ready to onboard customers early next year. Bank NXT is focused on continuing its branch expansion initiatives targeting underserved regions nationwide to strengthen its presence and increase financial inclusion. Internally, a key focus is investing in automated core processes to enhance efficiency, optimize turnaround times, and provide seamless experiences for customers. Forward-Looking Strategy * Figures in this section are based on Bank NXT’s standalone financials. Bank NXT 95 Section Flag 96 97 OUR CONTROLS 98 99 CORPORATE GOVERNANCE EFG Holding upholds the highest levels of corporate governance on the group and subsidiary level, with rigorous processes, policies, and procedures in place that ensure transparent and ethical running throughout the organization. The Group’s prudent management and governance frameworks that have been at the heart of its success over the years will continue to play a central role as the Group evolves and further cements itself as a universal bank in Egypt with a leading investment bank in MENA and a dedicated commercial banking arm. The Group’s Board of Directors is committed to providing EFG Holding with the needed guidance and support acquired over decades of cumulative experience. This expertise has helped EFG Holding grow sustainably while delivering value to all its stakeholders. The Group’s Corporate Governance Framework addresses country-specific policies and works to blend EFG Holding’s group-wide strategy with the more focused subsidiary development programs. The framework provides the grounds for efficient decision-making across the entire organization and guarantees a high degree of accountability to ensure that all shareholders and clients have their investments handled in a responsible and professional manner. The framework sets out the minimum standards expected group-wide while complying with local laws and regulations for an even higher level of stringency. In 2024, EFG Holding and its subsidiaries continued their efforts to apply the latest corporate governance standards and enhance and implement them to be fully compliant with the regulatory rules and requirements set by the Financial Regulatory Authority (FRA), as well as the Egyptian Exchange’s (EGX) rules for listing and delisting securities. EFG Holding’s policies incorporate the appropriate criteria for selecting, appointing, and re-electing Board of Directors Members in line with the relevant regulatory requirements. The Group’s Board of Directors composition is categorized by its diversity, experiences, and independence. It includes two female Board members and consists of 11 members 10 of whom are non-executive members, six of whom are independent members in accordance with the FRA’s regulations. Moreover, EFG Holding’s Board of Directors and its subsidiaries comply with the FRA’s decrees regarding the disclosure process of (“ESG”) practices and the Task Force on Climate-Related Financial Disclosures (the “TFCD”) for FRA-regulated companies and companies listed on the EGX. 98 Board of Directors EFG Holding’s Board of Directors is responsible for providing the Group with strategic leadership, financial soundness, governance, management supervision, and control. The board is comprised of 11 members, 10 of whom are non-executive. Without exception, all EFG Holding’s Directors possess a broad spectrum of experience and expertise, directly related to the Group’s expansive lines of business and divisions, with a strong emphasis on competence and integrity. Directors are selected based on the contributions they can make to the board and management in addition to their ability to represent the interests of shareholders. In 2024, EFG Holding’s AGM was held at the Company’s premises as well as through communication and remote voting technology that allow all shareholders to attend and participate in the meeting whether they are inside or outside Egypt, in accordance with FRA regulations. The following principles govern the conduct of the Board of Directors and the Group: Compliance with Laws, Rules, and Regulations Adherence to the law is the fundamental principle on which the Group’s ethical standards are built. All directors must respect and obey all applicable laws, rules, and regulations. The board complies with the international best practices, rules, and regulations of the Management and Control Structure Group in addition to laws and regulations of the markets in which the Group operates. Conflicts of Interest All members of the board declare their outside business interest and board directorships annually. They also abstain from participating in any discussions and decisions that might affect their own personal interests or those of a loosely related person or company. Business relationships between the Group and any of its board members must be approved by the Group’s AGM. Safeguarding and Proper Use of Company Assets All directors endeavor to protect the Group’s assets and ensure their efficient use. All assets must be used for legitimate business purposes only. Fair Dealing Each director should deal fairly with the Group’s clients, competitors, providers, and employees. None should take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts, or any other unfair dealing practice. Code of Conduct The Code of Conduct defines core values, principles, and other requirements that all the Group’s directors and employees are required to follow while conducting their regular daily duties. Standards and Policies The Group’s standards and policies comply with Egyptian as well as international corporate governance guidelines. 99 Our Controls Data Protection Policy The data protection policy sets out the obligations and requirements for protecting customers’ personal data and provides guidance on how and when the Group can process their data. In addition, the policy covers regulations introduced in different jurisdictions in the Group operates. Confidentiality Directors and officers must ensure the confidentiality of information entrusted to them by the Group or its clients, except when disclosure is authorized or legally mandated. Confidential information includes all non- public information that might be of use to competitors, or harmful to the Group or its clients if disclosed. Corporate Opportunities Directors are prohibited from taking personal advantage of potential opportunities that are revealed through corporate information, property, or position without the consent of the board. Directors are obliged to advance the Group’s legitimate interests when the opportunity presents itself. Audit Auditing forms an integral part of corporate governance at EFG Holding. Both internal and external auditors play a key role in providing an independent assessment of the Group’s operations and internal controls. Furthermore, to ensure independence, Internal Audit has a direct reporting line to the Audit Committee, a subcommittee of the board. Audit Committee The Audit Committee is comprised of five non-executive members, four of whom are independent and chaired by Mona Zulficar. In 2024, the committee met four times, once per quarter. The committee is responsible for oversight of financial statements and financial reporting, internal control and governance systems, compliance with laws and regulations, whistleblowing and fraud, conflict of interest, the internal audit function and compliance with the Code of Conduct established by management and the board. The committee ensures free and open communication between the committee members, internal auditors, management, and the external auditor on a quarterly basis. The Committee receives periodic updates from the Chief Information Officer on IT corporate governance. In 2024, the Corporate Governance Committee responsibilities were assigned to the Audit Committee. These include periodically evaluating the Group’s corporate governance structure, reviewing, and monitoring the implementation of the company’s corporate governance framework, documenting and following up on the board’s performance evaluation reports, reviewing the regulators’ observations related to the implementation of corporate governance, and ensuring they are appropriately handled and addressed. Risk Committee The Risk Committee is comprised of five non-executive members, four of whom are independent and chaired by Mona Zulficar. In 2024, the committee met four times, once per quarter. The committee oversees risk, legal, and operational issues across the Group, assisting the board in fulfilling its duties with regards to the oversight of (1) identification and management of risks; (2) adherence to risk management policies; and (3) compliance with risk-related regulatory requirements, advising the board on risk appetite and tolerance in accordance with its strategic objectives. It is responsible for advising the board on risks associated with strategic acquisitions or disposals and to review comprehensive reporting on Group Enterprise Risk Management, including reports on credit, investments, market, liquidity and operational risks, business continuity, and regulatory compliance. The committee receives periodic updates from the Chief Information Officer and the Chief Information Security Officer on Information Technology and Information Security risks on the following aspects: (a) People; (b) Process; and (c) Technology. Remuneration and Compensation Committee The Remuneration and Compensation Committee is comprised of four non-executive members and chaired by Takis Arapoglou. The committee meets to study compensation within the Group as a whole (and for senior management in particular) and to assist the board in fulfilling its duties with regards to strategic human resources issues and the remuneration policies of EFG Holding. This not only safeguards shareholder interests but also ensures that management’s interests are fully aligned with those of the Group. The committee directly manages the allocations within the Management Incentive Scheme for Senior Management as approved by the General Assembly. Nomination Committee The Nomination Committee is comprised of one executive and three non-executive board members and chaired by Mona Zulficar. The committee met once in 2024. It assesses and oversees the appointment at the level of the Holding company of Board Members, the Group Chief Executive Officer, and Group Executive Committee members. It is the committee’s responsibility to make sure appointments, which must be approved by the Annual General Assembly, align with the Group’s strategic directives, and ensure the independence Corporate Governance Committees 100 of directors in accordance with applicable laws, regulations, and international best practices. The committee also conducts regular assessments of the structure, size, and composition of key executive positions at the group level. The committee helps to ensure a smooth succession of Board Members and, where appropriate, the Group CEO and Group Executive Committee members. Meetings are scheduled and held on an as-needed basis. Executive Committee The Executive Committee is appointed by EFG Holding’s Board of Directors and is comprised of nine members, who are strategically selected to ensure all divisions are represented. Moreover, the Executive Committee is entrusted with the implementation of the policy decisions of the board and overseeing the Group’s risk management structures and policies. Its purview includes: 01. Developing the Group’s strategic plans and goals for board approval while managing material issues to the business that emerge. 02. Approving transactions within its authority limit in relations to investments, acquisitions, and disposals in addition to considering and approving expansions into new geographies and product lines. 03. Reviewing the Group’s annual capital, revenue, and cost budgets while monitoring performance against financial objectives in addition to approving cost- cutting measures as needed. 04. Overseeing the management of the Group’s current and future balance sheet in line with its business strategy and risk appetite. 05. Considering material joint ventures, strategic projects or investments and new businesses from a capital perspective while monitoring and managing capital and liquidity positions. 06. Aligning investment spending across the Group’s functions with its investment plan and strategic objectives and consider business commitments for board approval. 07. Receiving and considering reports on operational matters material to the Group or have cross- divisional implications. 08. Promoting the Group’s culture and values and monitoring overall employee morale and working environment. 09. Identifying ESG matters that affect the operations of EFG Holding, monitoring ESG integration throughout the Group and passing ESG resolutions while suggesting updates to the ESG policy for board approval. 10. Receiving periodic updates from the Chief Information Officer and the Chief Information Security Officer on Information Technology and Information Security strategy objectives on the following aspects: (a) People; (b) Process; and (c) Technology. The Executive Committee meets once a month to discuss and follow up on day-to-day operations of the Group and address any pressing issues that may arise. Shareholders EFG Holding’s shares are listed on the Egyptian Exchange (EGX) and the London Stock Exchange (LSE) in the form of USD-denominated GDRs. Significant Shareholders EFG Holding is required by law to notify the EGX and the FRA of shareholders whose holdings reach or exceed 5% of voting rights. Further notification is made once a multiple of the 5% is exceeded or reduced by a shareholder. Shareholder Structure • As of 31 December 2024, 15,530 shareholders were listed in the Firm’s share register. Executive Holdings and Management Transactions • As of 31 December 2024, the EFG Holding Board of Directors held a total of 3,334,586 shares, representing 0.23% of the total 1,459,606,008 shares of EFG Holding. • As of 31 December 2024, shares allocated to EFG Hermes’ Employees Stock Option Program (ESOP) were 59,078,882 shares, representing 4.05% of the total 1,459,606,008 shares of EFG Holding, pursuant to the Extra Ordinary General Assembly resolution on 30th of May 2021. Share Ownership Information All information relating to EFG Holding’s Securities held or transacted by members of the Board of Directors and other insiders are promptly disclosed and reported without fail in accordance with relevant regulations. 101 Our Controls Section Flag 102 103 INTERNAL AUDIT, RISK, AND COMPLIANCE Amid global unprecedented challenges and rapid changes in regulations and mandates, it is critical to establish and maintain sound risk and compliance frameworks, which serve as the cornerstone of success. This helps navigate downside risks with agility and drive effective decision-making processes and day-to-day operations with efficacy and transparency. As such, EFG Holding, with its fast-growing geographic presence, houses Internal Audit and Risk & Compliance Departments to evaluate and improve operational effectiveness and manage the Group’s global compliance frameworks and ensure adherence to relevant regulations and international best practices. Amid global unprecedented challenges and rapid changes in regulations and mandates, it is critical to establish and maintain sound risk and compliance frameworks. The risk and compliance functions within the department, while distinct, collaborate closely to monitor regulatory trends and changes across all jurisdictions where the Firm operates. They develop and implement firm-wide and divisional policies and procedures aimed at managing compliance, regulatory, and reputational risks, ensuring robust governance across the Firm while protecting client and employee information. Currently, the department comprises 58 compliance officers who work diligently to ensure the Firm’s business lines and subsidiaries fully adhere to applicable laws, regulations, and internal policies. Complementing their efforts, the Risk Management team consists of 72 professionals tasked with identifying, overseeing, and mitigating operational, liquidity, market, and credit risks across the Group. Together, these teams provide advisory support to the Firm’s businesses, address regulatory inquiries, conduct staff training on policies and procedures, and oversee surveillance and testing of the risk management infrastructure under the leadership of the Group Chief Risk and Compliance Officer. Our Controls Risk & Compliance In 2024, EFG Holding’s Risk team spearheaded business continuity drills across the Group, reinforcing preparedness and mitigating related risks. They also conducted evacuation drills to prioritize employee safety and readiness. Meanwhile, the Compliance team carried out comprehensive reviews to ensure strict adherence to local regulations and group- wide policies. A key aspect of these efforts involved the continuous updating of compliance manuals and policies, coupled with a proactive approach to monitoring and reviewing the Firm’s adherence to country-specific regulations. This ensured the seamless continuity of EFG Holding’s expansive operations, even amid the ongoing macroeconomic challenges facing the global landscape. In 2024, EFG Holding continued to strengthen its commitment to protecting personal data and ensuring compliance with data protection regulations across all its offices in the region. The department’s Group-wide Data Protection policy, which was approved by EFG Holding’s Board of Directors in 2023, was applied across the Group’s footprint, adhering to country-specific regulations. The company achieved a high level of compliance with local data protection laws while proactively aligning with the best global practices. Key initiatives included updating customer agreements and privacy policies to enhance transparency and provide clear information about data processing activities. Additionally, EFG Holding conducted comprehensive data protection training for its staff to reinforce awareness and accountability. Furthermore, this year, the department enhanced the methodology for calculating Expected Credit Losses (ECL) across the Group. In 2024, the Risk and Compliance division renewed ISO 31000:2018 for the third consecutive year, providing guidelines for managing any form of risk in a systematic, transparent, and credible manner within different scopes and contexts. The department has also achieved the renewal of the ISO 22301:2019 certification for the 8th consecutive year. On the policy front, the company drafted the Group Outside Business Interest Policy and updated the Group Staff Dealing Policy to align it with the amended EGX listing and delisting rules. During 2024, EFG Hermes has obtained the SME financing license from the Financial Regulatory Authority (FRA) in Egypt. 2024 Operational Highlights departments, prioritizing each function according to its risk level and prior internal audit ratings. High- and medium- risk departments are audited annually, while low-risk departments are reviewed biennially, except for regulated entities, which are mandatorily reviewed every year. The division also follows up on previous audit findings to ensure proper remediation and offers a broad range of services, including detailed operational assessments, evaluations of regulatory compliance, corporate governance monitoring, and strategic consultation. These services are delivered without compromising the division’s independence, reinforcing the integrity of the Firm’s overall governance framework. At present, the Group’s Internal Audit team is made up of ten centralized auditors covering investment banking and NBFI activities and 37 auditors covering microfinance services. Internal Audit serves as an independent assurance function, authorized by the Board of Directors and the Audit Committee to deliver reasonable assurance regarding the company’s control environment. Comprising a team of highly skilled, multilingual industry professionals, the function monitors, evaluates, and advises on the adequacy of the Firm’s operational, financial, and administrative controls, as well as the efficiency of its information systems. It also assesses the effectiveness of risk management practices and corporate governance processes across the Group’s subsidiaries, business lines, and support functions, safeguarding the Group from both traditional and emerging risks. Reporting directly to the Group’s Audit Committee, the Internal Audit team conducts periodic inspections and systemic evaluations based on the committee’s pre- approved annual plan. To optimize review efficiency, the team engages in regular assessments of the Firm’s Internal Audit 104 During 2024, the Internal Audit department successfully completed its annual audit plan and delivered significant value by driving risk management, operational efficiency, and compliance excellence across the organization. Leveraging advanced analytics and addressing emerging risks, the Internal Audit department conducted dynamic audits that provided actionable insights into key business processes, enhancing decision-making and mitigating risks. The department not only ensured regulatory compliance but also contributed to the organization’s strategic objectives, demonstrating its role as an integral component of organizational success. Part of the oversight of information and cybersecurity, the Internal Audit department provides assurance of the company complying with Information Security Management Systems (ISMS) – (ISO-27001). Aligned with the Group’s ESG policies and strategies, the Internal Audit department has incorporated ESG-related procedures into the audit programs of all business lines to ensure comprehensive compliance with the Firm’s sustainability commitments. The division also continued to leverage TeamMate, a bespoke digital tool introduced as part of EFG Holding’s broader digital transformation strategy. This innovative platform reinforces EFG Holding’s position as a digitally integrated financial services leader. TeamMate is utilized across the Firm’s functions to 2024 Operational Highlights streamline processes and effectively store, analyze, and manage the extensive financial data generated by the Group’s operations across its global footprint. By doing so, it enhances the accuracy and efficiency of the auditing process, ensuring the highest standards of operational excellence. Moving forward, in 2025, Internal Audit and Risk & Compliance aim to streamline operations and enhance operational efficiencies across the Group. On the Compliance side, the function continues to obtain licenses that enable the department to support the Firm’s expansions. As such, and as the Group continues to delve into new markets and new lines of business, the Risk and Compliance department will continue to work together with other divisions to ensure new products, continuity of business lines, and subsidiaries — particularly EFG Finance— are seamlessly integrated into EFG Holding’s control frameworks, and that any new laws and regulations regarding these expansions are accurately reflected and addressed. Forward-Looking Strategy 105 Our Controls Section Flag 106 107 OUR TEAM 108 OUR PEOPLE For EFG Holding, growth is not a linear journey but a dynamic ecosystem—an intertwined network of opportunities, skills, and experiences that empower every employee to thrive. A network deliberately cultivated to bring out the best in everyone, for everyone. Over the past year, we have embraced this mindset, connecting the dots to develop and strengthen this ecosystem with intent, ensuring that every connection—between potential and progress, readiness and recognition, learning and leadership, flexibility and productivity—fuels our collective success while balancing individual growth with organizational strength. Having achieved significant milestones in our tech enablement journey over the last few years (with more to come), we were able to spend more time on the substance of our programs and services. With a keen eye on the future, we remain committed to ensuring a strong and steady supply of strategic talent reserves in EFG Holding. As such, succession planning has remained a core strategic priority, enabling us to build a resilient leadership pipeline that is future-ready and aligned with our evolving business needs. This year, we refined our approach, enhancing our classification of critical roles, how we assess potential successors, and define readiness criteria. By sharpening these parameters, we ensure that our list of strategical and operationally critical roles and the potential incumbents is always up to date. We have also strengthened the link between our talent pipeline and their developmental pathways. Through a structured, proactive approach, we ensure that our successor pool is equipped with the right skills, experiences, and exposure-dressing their readiness gaps in real time. This ensures that when the moment comes, our leaders are not just prepared but truly mission ready. In keeping with our conviction in and commitment to the continuous growth of our people, our learning and development offering saw reworked Academy programs and new cohorts. With refreshed content came new assessment and selection tools, ensuring the best and brightest are selected to attend The Academy. And, with 75% growth in nomination numbers, the selection pool was varied, spanning the full spectrum of our universe. We firmly believe in the power of tailored learning experiences that align with our unique business needs. Simultaneously, we recognize the value of exposing our employees to different perspectives through external learning environments. By combining meticulously designed, EFG-centric programs with carefully selected public programs from world-class institutions such as MIT Sloan, INSEAD, and Kellogg, we ensure that our talent benefits from both deeply relevant internal development and fresh external insights. This balanced approach enhances learning, fosters innovation, and integrates cutting-edge thought models into our leadership and expertise. Leadership Continuity Future Ready Talent Our Team At EFG Holding “Managing Director” is more than just a title, it is a recognition of an individual’s leadership, impact, and enduring contribution to the Firm. It reflects not only their achievements thus far but also their alignment with our values and our confidence in their ability to drive the company’s future growth and success. As the business landscape evolves, so too must the capabilities of our most senior leaders. To ensure that our MDs are prepared to navigate complexity, drive innovation, and lead with agility, we undertook a significant enhancement of our selection framework. Phase 1 of this reimagined framework, implemented in 2024, lays the foundation for a more comprehensive, future-focused approach to identifying and promoting MDs, expanding the lens through which we assess leadership readiness, placing greater emphasis on strategic influence, cross functional leadership, and tangible value creation. This refined selection process ensures that our MDs are not only exceptional in their own right but also collectively positioned to propel EFG Holding into the Managing Directors of the Future 109 future—leading with foresight and agility. We are looking forward to implementing the second and final phase of the new selection framework in 2025. For EFG Holding, growth is not a linear journey but a dynamic ecosystem— an intertwined network of opportunities, skills, and experiences that empower every employee to thrive. 111 Team Building, Team Bonding While in-person collaboration remains a cornerstone of our culture, we recognize that the way the world works is continuously evolving. Employees seek greater flexibility, and businesses must adapt while preserving the elements that define their success. Over the past year, we have carefully refined our approach, striking a balance that honors both employee needs and our organizational identity. By introducing structured remote work parameters, we have created a model that allows for flexibility without compromising the connectivity and dynamic collaboration that our culture values. We will continue to adapt thoughtfully, ensuring that our work model evolves in a way that supports both individual well-being and collective success, while staying true to our culture. Work-Life Integration We understand that team building is not a one-size- fits-all concept. While fostering strong connections among colleagues is essential, the way teams build trust, collaborate, and strengthen their dynamics varies across departments, functions, and business needs. Over the past year, HR has played an active role in helping teams define what team building means in their unique context. Rather than defaulting to generic activities, we worked closely with different departments to decode their specific challenges and opportunities, ensuring that every team-building initiative was purposeful, impactful, and aligned with real business and cultural needs. We thoughtfully curated the right experiences and the most effective service partners to facilitate breakthroughs that fostered lasting bonds and high-performance teamwork. By approaching team bonding as an evolving, strategic process, rather than just an event, we have helped create an environment where teams do not just work together, they thrive together. 110 People centricity is not a novel focus for an HR department—especially not in an industry and firm where the quality of talent defines success. However, where we aim to differentiate ourselves is in how we bring people centricity to life, through intentional actions, strategic investments, and a steadfast commitment to fostering a dynamic workforce. As we look ahead, we will continue to fortify our Growth Grid in multiple ways: • Directly, by investing in skills, career pathways, and leadership development to ensure our people are equipped for the challenges and opportunities ahead. • Indirectly, by continuing to enhance our HR tech infrastructure, refining the systems, analytics, and digital capabilities that power our talent Looking Ahead: Strengthening Our Growth Grid for the Future strategy, ensuring our initiatives are delivered with precision, scalability, and impact. We will also continue to evolve our policies and frameworks, advancing an environment that remains progressive and in tune with the needs of employees and Firm alike. • Adaptively, by continuously refining our talent and workforce strategies in alignment with changing business needs, ensuring that our people agenda remains agile and responsive to growth. Focusing on human potential means we are future proofing our organization. Our vision is clear: to continue to build an environment where talent thrives, leadership strengthens, and growth is both strategic and sustainable. Our Team 112 EXECUTIVE COMMITTEE Group CEO and Chairman of the Executive Committee, EFG Holding Karim Awad asset management business with UAE-based affiliate Frontier Investment Management (FIM) in 2017, and the re-emergence of an active Private Equity division that is becoming a key player in renewables and education. The Firm was also able to significantly increase the suite of products it offers to clients by building a structured product platform as well as a full-fledged non-bank financial institutions (NBFI) platform, EFG Finance, that currently includes leasing and factoring, microfinance, financial technology, mortgage, payments, and insurance. In November 2021, EFG Holding finalized an acquisition of a commercial bank in Egypt, Bank NXT, thereby completing its transformation into a universal banking platform that will further increase the suite of products that it offers its clients while laying a strong foundation for the Firm’s future growth prospects. The strategic shift helped drive growth in the Firm’s revenues, which reached EGP 14.7 billion, and profits, which stood at EGP 2.5 billion in 2023, all while maintaining a strong commitment to the communities in which the Firm operates through a vibrant CSR policy and actively adopting progressive ESG standards. In recognition of his efforts, Awad was ranked on the Forbes Middle East Top 100 CEOs in the Middle East in 2021, 2022, and 2023. In 2024, he was chosen as a member of the Egyptian President’s Economic Council and in 2025 he became a member of the Egyptian Prime Minister’s Macroeconomy Advisory Committee. Awad holds a degree in business administration (BBA) from the American University in Cairo. Karim Awad is the Group CEO, Chairman of the Executive Committee, and member of the Board of Directors of EFG Holding S.A.E. With over 25 years of experience, Awad began his career at EFG Hermes in 1998 in the Investment Banking Department. He eventually headed the division in 2007 and led several high-profile local and regional transactions. He assumed managerial roles in the Firm thereafter, first as CEO of the Investment Bank, EFG Hermes, in 2012 and then as Group CEO of EFG Holding in 2013. Since then, Awad has led a substantial restructuring of EFG Holding that included streamlining its expenses and divesting its non-core assets, primarily among which was a majority stake in Lebanese bank, Credit Libanais. Working together with EFG Holding’s senior management, Awad spearheaded a major shift in EFG Holding’s strategy that transformed it into a Middle East and North Africa markets-focused financial solutions house of choice. To achieve this vision, the Firm focuses on six pillars: hiring the best people, improving the Firm’s positioning in markets it operates in, selectively expanding its geographical presence, enhancing its product offering, increasing profitability metrics, and ensuring that public responsibility remains front and center to all its operations. During the past 11 years, EFG Holding’s Investment Bank, EFG Hermes, was able to enhance its market share in its core sell-side operations of investment banking, brokerage, and research in its key markets of Egypt, UAE, KSA, and Kuwait. The buy-side business was completely revamped through the consolidation of its regional public Co-CEO of the Investment Bank (Sell-Side), EFG Hermes, an EFG Holding company Mohamed Ebeid He launched the Firm’s Structured Products desk in 2017, trading USD 1–3 billion annually, contributing meaningfully to profitability and client offering diversification. He also established a best-in-class Corporate Access program, anchoring flagship MENA equity events in the UAE and London that attract over 600 investors and 200 corporates annually. Currently, Ebeid is leading the development of EFG Hermes’ Wealth Management platform, set for launch in Q4 2025. The platform will integrate research, distribution, and structured product capabilities to serve the region’s growing wealth segment. Before his current role, Ebeid served as Head of Brokerage and ECM Distribution (2011–2016), where he restructured the brokerage business to enhance profitability and scalability. He was also Global Head of Sales and ECM Distribution (2008–2011), expanding institutional relationships across the GCC and strengthening the Firm’s regional presence. Earlier, he served as Head of Institutional Equity Sales & Trading (2006–2008) and was instrumental in growing the Firm’s Western institutional client base and cementing its position in Egypt. Ebeid began his career in 1999 in the Ultra HNW Brokerage team. He holds a Bachelor of Commerce in Accounting from Ain Shams University and has completed several executive education programs through London Business School and other external providers. Mohamed Ebeid is the Co-CEO of the Investment Bank at EFG Hermes, a position he has held since May 2016. With over two decades at the Firm, Ebeid has been instrumental in scaling the Sell-side platform across the GCC and broader MENA region while driving innovation and talent development across multiple business lines. Under his leadership, the Investment Banking division executed over 100 ECM transactions over the past decade with a cumulative value approaching USD 90 billion, including marquee deals such as the Aramco IPO and the ADNOC pipeline of IPOs and FMOs. In 2024 alone, EFG Hermes led 14 ECM transactions totaling USD 20 billion, accounting for approximately 55% of GCC IPO proceeds. Ebeid also expanded the M&A pipeline by strengthening sector coverage and leveraging relationship-driven origination. He oversaw the transformation of the Brokerage division into a hybrid model serving both institutional and retail clients, achieving market-leading positions in the UAE and Saudi Arabia through digitization and targeted segmentation. The Brokerage division has since become a vital distribution engine for ECM and structured products. Ebeid has also played a pivotal role in evolving the Firm’s Research division into a top-ranked platform (Extel, Tadawul). The division now covers over 240 companies representing 79% of the region’s market capitalization. The division consistently supports ECM activity and deal origination. Our Team 113 Co-CEO of the Investment Bank (Buy-Side) and Head of Asset Management and Private Equity, EFG Hermes, an EFG Holding company; CEO, Vortex Energy Karim Moussa sponsored funds. He is also a Member of the Board of Directors of various portfolio companies. Prior to joining EFG Hermes, Karim was Vice President at Deutsche Bank’s Global Banking division, with responsibilities across M&As, ECM, and DCM advisory in the MENA region. In this role, he advised on the USD 4.2 billion Dubai Ports World IPO, the USD 670 million sale of Sokhna Port to Dubai Ports World, and the USD 1.4 billion LBO of the Egyptian Fertilizers Company by Abraaj Capital. He joined Deutsche Bank in 2001 as an Analyst in the M&A execution team in Frankfurt, advising on several mid-cap transactions in Continental Europe. He moved to Dubai in 2005 with the CEO of Deutsche Bank MENA to help establish the bank’s regional business. He started his career at Berlin Capital Fund, a venture capital fund managed by Berliner Bank. Karim holds a Master’s Degree in Business Administration and Mechanical Engineering (Diplom Wirtschaftsingenieur) from the Technical University of Berlin. Karim joined EFG Hermes in Dubai in 2008, with the primary responsibility of building the Firm’s value- add and core infrastructure private equity platforms. Today, he leads EFG Hermes’ c. USD 5 billion buy-side business, a role he has held since 2017. Karim led the establishment of Vortex Energy in 2014, raising and deploying close to USD 1 billion in renewable energy assets across Europe. He launched in 2021 Vortex Energy IV, an energy transition fund that has invested in IGNIS, a 20GW leading fully integrated Spanish renewables company and EO Charging, UK’s leading charging solutions provider for fleet and buses. Within Vortex Energy he successfully completed the exit of an operating portfolio of c. 460 MW onshore wind assets in France, Spain, Portugal, and Belgium to funds managed by J.P. Morgan. In addition, he has successfully completed the sale of a controlling stake in a 365 MW operating solar portfolio to Tenaga Nasional in the UK, delivering combined (net) c. 13% IRR and 1.4x MOIC paying cash yields in excess of 5% p.a. to investors. Karim also initiated education investment funds starting in 2019 with the Egypt Education Platform (EEP), a USD 150 million fund, dedicated to investing in Pre K-12 schools and education services in Egypt, aggregating 25 assets with a total student capacity of 25,000. In 2024, he launched Spark Education Platform (SEP), a USD 300 million fund targeting primarily the Kingdom of Saudi Arabia. Other flagship PE deals he led include Nasdaq-Dubai’s USD 445 million take-private of DAMAS International and later its exit, delivering c. 2x MOIC. Karim sits on the Investment Committee of several EFG Hermes’ 114 Group Chief Operating Officer, EFG Holding Group Chief Risk and Compliance Officer, EFG Holding Mohamed El Wakeel Abdel Wahab Mohamed Gadayel As the Group Chief Operating Officer (COO) at EFG Holding, Mohamed El Wakeel is a driving force behind the Firm’s operational excellence, technology-driven transformation, and expansion into new markets. Wakeel began his career at HSBC before joining EFG Holding in 2000, where he played a pivotal role in optimizing the Securities Brokerage division’s operations, implementing best-in-class efficiency models, and setting new industry standards. His success in streamlining operations led to his appointment as Head of Brokerage Operations for Egypt, followed by his elevation to Securities Brokerage Group’s Head of Operations, where he spearheaded the integration and expansion of the Firm’s offices into new markets. In his executive leadership capacity, Wakeel has transformed EFG Holding’s IT infrastructure, strengthened cybersecurity frameworks, and led innovation in in-house application development to support the Firm’s diverse business lines. His strategic initiatives have enhanced market operations, and business scalability, solidifying EFG Holding’s position as a leader in the financial services sector. Before assuming the role of Group COO, Wakeel served as Group Head of Market Operations, where his hands-on expertise and leadership were instrumental in enhancing multi-market operations and aligning them with the Firm’s strategic vision. Wakeel holds a bachelor’s degree in business administration from the Faculty of Commerce, Ain Shams University. Abdel Wahab Mohamed Gadayel is EFG Holding’s Group Chief Risk and Compliance Officer, a post he has held since 2013. Prior to this, he served as Group Head of Compliance for three years, where he played a key role in setting and refining the Group’s policies and procedures and enhancing the Group’s compliance framework. During his current tenure in Risk Management, Gadayel revamped the Group’s risk management framework and policies, oversaw the issuance of the Group’s risk appetite framework, and obtained the ISO 22301:2019 certification for the Firm’s Business Continuity Management System and the ISO 31000:2018 certification for the Firm’s Enterprise Risk Management. Gadayel joined EFG Hermes in 1998 as an Operations Officer, later being promoted to Deputy Head of Operations, a role he held until 2004. He also held the post of Managing Director of Operations at EFG Hermes UAE between 2004 and 2009, where he integrated newly acquired offices in the lower GCC region, helping the Group rapidly expand into new markets during his tenure. Gadayel graduated from Cairo University with a major in economics and a minor in political science. Our Team 115 Group Chief Financial Officer, EFG Holding CEO of EFG Finance, an EFG Holding company Mohamed Abdel Khabir Aladdin ElAfifi Mohamed Abdel Khabir is EFG Holding’s Group Chief Financial Officer (CFO), member of the Executive Committee, and a board member in several of EFG Holding’ subsidiaries. Since assuming his role in 2016, Abdel Khabir has been actively involved in transforming EFG Holding from a MENA-based investment bank to a financial services institution with a universal bank in Egypt and a leading investment bank in MENA. He participated in acquiring and establishing various subsidiaries across different jurisdictions, as well as a number of NBFI subsidiaries in the microfinance, insurance, BNPL, leasing, factoring, mortgage, and e-commerce spheres. Most recently, he participated in the acquisition of Bank NXT in Egypt. He has also been responsible for funding those expansions and managing the balance sheet of the Group, in addition to Investor Relations, Budgeting, Reporting, Accounting, and Taxation. Prior to his current post, Abdel Khabir joined EFG Hermes’ Investment Banking division in early 2008. His notable transactions during his investment banking tenure include the IPO of Integrated Diagnostics Holding (IDH) through a secondary offering worth USD 334 million on the LSE. He was also involved in the sale of Cleopatra Hospital in Egypt to the Abraaj Group, the merger of Al Borg and Al Mokhtabar laboratories, ENPC’s USD 1.05 billion syndicated loan, and the issuance of ODH EDRs worth USD 1.8 billion. Previously, he held the position of Financial Planning Manager at Procter and Gamble in the Corporate Finance division, with a focus on financial planning, budgeting, corporate restructure, integration, and profit forecasting. Abdel Khabir holds a BA degree in Business Administration from the American University in Cairo with a major in Finance and a minor in Economics and Psychology. He is also a CFA charter-holder. With 25 years of financial advisory and direct investment expertise, Aladdin ElAfifi is the CEO of EFG Finance, which is the platform that owns EFG Holding’s Non-Banking Financial Institutions portfolio. ElAfifi is responsible for growing the NBFI operations, which currently include leasing, factoring, microfinance, SME lending, insurance, mortgage, and payments, in addition to any new services whether organically or through acquisitions. He is also the CEO of EFG/EV, a Cairo-based fintech accelerator. ElAfifi helps set up and implement EFG Finance’s strategy while further institutionalizing the business and preparing it for a future that is increasingly digital in nature. ElAfifi most recently co-founded the Cairo-based real estate investment management and advisory 116 Our Team business, 46 Group. He was also the Co-CEO of Pharos Holding, where he overlooked securities brokerage, asset management, and investment banking and advisory activities. Prior to joining Pharos, ElAfifi led the team managing Qalaa Holding’s investments in mining industries, gold exploration, and the waste management sector through the creation of Tawazon, a local and regional market leader in the field of municipal and agricultural solid waste management. He was also a senior member of the team that established TAQA Arabia, a full-service energy (natural gas and electricity) distribution group, and the initial team that worked on conceptualizing, negotiating, and signing the Framework Agreements for what would later become the Egyptian Refining Company (ERC). 117 ElAfifi previously worked in London as an Investment Banker at Goldman Sachs’s UK M&A and the Industrials and Natural Resources teams after having begun his career at EFG Hermes Investment Banking. With both Goldman Sachs and EFG Holding, he worked on several high-profile M&A and capital market transactions across a multitude of sectors. ElAfifi is a Chartered Financial Analyst (CFA). He also holds an MBA from the Wharton School of Business with a concentration in Finance, Strategic, and Entrepreneurial Management and is a recipient of the Joseph Wharton fellowship. He holds a BA in Economics with a minor in Business Administration from the American University in Cairo. Group Chief Human Resources Officer, EFG Holding Inji Abdoun Inji Abdoun joined EFG Holding’s Human Resources (HR) department in June 2007 as HR Manager for the UAE, tasked with establishing a strong HR function for the Group’s operations. In addition to shaping the UAE’s HR framework, she played a key role in driving Group-wide initiatives, with a particular focus on talent management. Her role expanded in 2008 to support the integration of newly acquired operations in Oman and Kuwait, while strengthening the HR function in Saudi Arabia. By 2009, Abdoun was appointed Group Head of Human Resources, taking on full leadership of the department and working closely with the Firm’s management team to align HR strategy with business objectives. In 2017, she advanced to Group Chief HR Officer, continuing to oversee the Group’s HR function while serving as a member of the Executive Committee, contributing to strategic decision-making at the highest level. Before joining EFG Holding, Abdoun held HR leadership roles at LINKdotNET (an OT subsidiary) and Fayrouz International (a Heineken subsidiary). She also gained experience in career advising and talent placement at AUC’s Career Advising and Placement Office (CAPS), accumulating over 19 years of expertise in human capital development. A certified Myers-Briggs practitioner, Abdoun holds an MBA from the MIT Sloan School of Management. 118 Chief Legal Officer Mohamed Gabr Mohamed Gabr is the Group’s Chief Legal Officer and a member of the Executive Committee at EFG Holding. He is an accomplished legal professional with extensive experience in corporate law and commercial and capital market transactions. He has been instrumental in providing strategic legal counsel and guidance to EFG Holding since August 2020. Before joining EFG Holding, Mohamed was a Partner and Head of Corporate Commercial at Al Tamimi & Company in Egypt. Prior to his time at Al Tamimi & Company, Mohamed served as a Partner at Matouk Bassiouny, a reputable law firm. Earlier in his career, Mohamed worked as an Attorney at Law at Zaki Hashem & Partners. Mohamed Gabr holds a Master of Arts (MA) degree in International Relations and a Bachelor of Arts (BA) degree in Economics from The American University in Cairo. He also holds a Bachelor of Laws (LLB) degree from Cairo University. Our Team 119 120 BOARD OF DIRECTORS Chairperson, EFG Holding (Non-Executive) Mona Zulficar as the Investment Law, Banking Law, Telecom Law, and Economic Courts Law. A passionate advocate for women’s empowerment and human rights, she has led major legal reforms, resulting in major legal reforms, including the “New Marriage Contract”, the Equal Right to Divorce Law “Khul”, the Family Courts Law, equality in granting Egyptian nationality to the children, between the father and the mother under the Nationality Law, the NGO Law and she is currently working on the Equal Opportunity and Non-Discrimination Law and the new Family Law. She also served as VP of the Constitutional Committee, where she played a key role in drafting the 2014 Egyptian Constitution, and was a member of the National Council for Human Rights until September 2021. Moreover, Zulficar founded and chairs Al Tadamun Microfinance Foundation, a pioneering institution supporting financial inclusion for women, and serves as Chairperson of the Egyptian Medium, Small, and Micro- Enterprise Finance Federation. Zulficar holds law and political science degrees from Cairo University and Mansoura University and received an honorary doctorate from the University of Zurich in 2009. She has been decorated with La Légion d’Honneur (2008) by the President of France and the IFLR Lifetime Achievement Award in 2018 as well as the Chambers Middle East Lifetime Achievement Award in 2020 and in 2023 the Lifetime Achievement Award by the Law. During the last decade ending by 2025, she has been consistently listed by Forbes Middle East as one of the top Egyptians among the 50 or 100 most influential/ powerful businesswomen in the Middle East. Mona Zulficar is the Non-Executive, Independent Chairperson of EFG Holding since 2008. She is one of Egypt’s most prominent business leaders, a distinguished lawyer, and a pioneer in financial and legal reform. Zulficar is a Founding Partner and Chairperson of Zulficar & Partners Law Firm since 2009. She also chairs the EFG Foundation for Social Development, reinforcing her commitment to impactful corporate social responsibility initiatives. As the Non-Executive Chairperson of EFG Holding, Zulficar has overseen the company’s strategic direction, helping it expand into a leading universal financial institution with operations across eight countries and access to emerging and frontier markets. Zulficar is widely recognized as Egypt’s foremost banking, finance, and M&A lawyer, having played a key role in groundbreaking transactions that have shaped the region’s financial landscape. With a career spanning over 40 years, she has advised on major M&A transactions, IPOs, debt capital markets, and project financing deals, including landmark transactions in energy, telecom, infrastructure, and banking. Her work has been consistently acknowledged by Chambers & Partners, Legal 500, and IFLR1000, with accolades such as Lifetime Achievement Awards and recognition as an “Eminent Practitioner” in banking and finance law. Beyond her legal expertise, Zulficar has been instrumental in shaping Egypt’s economic and financial legislative framework, both in her capacity as a former board member of the Central Bank of Egypt during the banking reform program from 2003 to 2011 and as a prominent member of national drafting committees contributing to key laws such Group CEO and Chairman of the Executive Committee, EFG Holding Karim Awad based affiliate Frontier Investment Management (FIM) in 2017, and the re-emergence of an active Private Equity division that is becoming a key player in renewables and education. The Firm was also able to significantly increase the suite of products it offers to clients by building a structured product platform as well as a full- fledged non-bank financial institutions (NBFI) platform, EFG Finance, that currently includes leasing and factoring, microfinance, financial technology, mortgage, payments, and insurance. In November 2021, EFG Holding finalized an acquisition of a commercial bank in Egypt, Bank NXT, thereby completing its transformation into a universal banking platform that will further increase the suite of products that it offers its clients while laying a strong foundation for the Firm’s future growth prospects. The strategic shift helped drive growth in the Firm’s revenues, which reached EGP 14.7 billion, and profits, which stood at EGP 2.5 billion in 2023, all while maintaining a strong commitment to the communities in which the Firm operates through a vibrant CSR policy and actively adopting progressive ESG standards. In recognition of his efforts, Awad was ranked on the Forbes Middle East Top 100 CEOs in the Middle East in 2021, 2022, and 2023. In 2024, he was chosen as a member of the Egyptian President’s Economic Council and in 2025 he became a member of the Egyptian Prime Minister’s Macroeconomy Advisory Committee. Awad holds a degree in business administration (BBA) from the American University in Cairo. Karim Awad is the Group CEO, Chairman of the Executive Committee, and member of the Board of Directors of EFG Holding S.A.E. With over 25 years of experience, Awad began his career at EFG Hermes in 1998 in the Investment Banking Department. He eventually headed the division in 2007 and led several high-profile local and regional transactions. He assumed managerial roles in the Firm thereafter, first as CEO of the Investment Bank, EFG Hermes, in 2012 and then as Group CEO of EFG Holding in 2013. Since then, Awad has led a substantial restructuring of EFG Holding that included streamlining its expenses and divesting its non-core assets, primarily among which was a majority stake in Lebanese bank, Credit Libanais. Working together with EFG Holding’s senior management, Awad spearheaded a major shift in EFG Holding’s strategy that transformed it into a Middle East and North Africa markets-focused financial solutions house of choice. To achieve this vision, the Firm focuses on six pillars: hiring the best people, improving the Firm’s positioning in markets it operates in, selectively expanding its geographical presence, enhancing its product offering, increasing profitability metrics, and ensuring that public responsibility remains front and center to all its operations. During the past 11 years, EFG Holding’s Investment Bank, EFG Hermes, was able to enhance its market share in its core sell-side operations of investment banking, brokerage, and research in its key markets of Egypt, UAE, KSA, and Kuwait. The buy-side business was completely revamped through the consolidation of its regional public asset management business with UAE- 121 Our Team 122 Chairman of Bank of Cyprus Efstratios Georgios (Takis) Arapoglou Takis Arapoglou is a Non-Executive Member of EFG Holding’s Board of Directors. Takis Arapoglou is a consultant with an earlier career in international capital markets and corporate & investment banking based in London and later in managing, restructuring, and advising publicly listed Financial Institutions and Corporates in Southeastern Europe and the Middle East. His most recent executive assignments include Managing Director and Global Head of the Banks and Securities Industry for Citigroup (1997-2004), Chairman and CEO of the National Bank of Greece (2004-2009), Chairman of the Hellenic Banks Association (2004- 2009), and CEO of Commercial Banking at EFG Holding (2010-2012). He has over 15 years of experience in chairing boards and being a member of boards and board committees of international companies, focusing on governance, risk management, Digital transformation, and sustainability. He is presently holding the following non-executive board positions: Chairman of Bank of Cyprus- listed in the Athens Stock Exchange, Chairman of Tsakos Energy Navigation- listed in the New York Stock Exchange, board member of EFG Holding- listed in the Cairo Stock Exchange, and independent board member of Bank Alfalah, listed in the Karachi Stock Exchange. He is a member of the Business Advisory Council for the International MBA program at the Athens University of Economics and Business. He holds degrees in Mathematics, Engineering, and Management from Greek and British Universities. Vice Chairman of the Board, EFG Holding Yasser El Mallawany Yasser El Mallawany is the Non-Executive Vice Chairman of EFG Holding’s Board of Directors. Since his appointment as Chief Executive Officer of the Firm in 2003, El Mallawany has played a key role in driving the consolidation of Egypt’s investment banking sector and facilitated the emergence of EFG Hermes as the leading Arab investment bank at the time. El Mallawany began his career at Commercial International Bank (CIB), formerly Chase National Bank, and his tenure at CIB spanned over 16 years, last serving as the General Manager of the Corporate Banking Division. He joined EFG Hermes at the time of the Firm’s merger with CIIC. El Mallawany holds a BA in Accounting from Cairo University. Our Team 123 Non-Executive Board Member of EFG Holding Jean Cheval Cheval spent a significant part of his banking career at Credit Agricole lndosuez (1983–2001), where he was successively Chief Economist, Head of Strategic Planning and Budget, Head of Structured Financing, and Head of the Middle East (1994–2001) and Asia (1998– 2001) prior to being appointed General Manager. Cheval also served as Director of Al Bank Al Saudi Al Fransi in KSA, WAFA Bank in Morocco, and Banque Libano- Française in Lebanon. Cheval then became Head of Banque Audi France, Chairman of Banque Audi Switzerland (2001–2005), and member of the Board of Audi-Saradar Bank (2002– 2006). After four years as Head of Bank of Scotland’s Paris branch, he joined Natixis in June 2009, leading the Debt and Finance department (Structured Finance) until 2012 and the European area between 2011 and 2012. Cheval then became Head of Finance and Risk, member of Natixis Senior Management Committee, and Second Senior Manager of Natixis in September 2012, holding said positions until October 2017. Between that date and March 2022, he became Senior Advisor to Natixis’ CEO, chairing the Credit Risk Committee and acting as Natixis’s Chief Negotiator for the main operations of financial restructuring. Cheval currently chairs the Risk Management Committee of the Board of Alpha Bank (Greece) and the Natixis Foundation for research and innovation. He is also a member of the Board of Natixis Algeria. He is senior advisor to Sycomore Corporate Finance. Jean Cheval graduated from École Centrale de Paris (Engineering School) and was PhD candidate at the University of California, Berkeley. He also holds several degrees in Economics (Paris I) and mathematical statistics (Paris VI). He started his career as an economist and then worked several years for the French Ministry of Industry and the French planning agency. Office Manager for His Excellency Dr. Mana Saeed Al Otaiba Khalid Mana Saeed Al Otaiba is a Non-Executive, Independent member of EFG Holding’s Board of Directors. Al Otaiba has been Office Manager for His Excellency Dr. Mana Saeed Al Otaiba, Personal Advisor to H. H. President of the UAE, Sheikh Mohammed bin Zayed Al Nahyan, since 2000. Al Otaiba also holds the post of Deputy Chairman of Al Otaiba Group of Companies. Al Otaiba leverages his over 22-year career, spanning numerous industries, to serve as Director of Alfalah Insurance Company Limited, Pakistan; Chairman of Liwa International Investment Tourism and Royal Mirage Hotel & Resort Ltd, Morocco; and Chairman of Ghantout International and Bank Alfalah, as well as Director of Royal Mirage Masdar, Abu Dhabi. Al Otaiba holds a BA in International Economics from Suffolk University, Boston, Massachusetts. General Manager, The Private Office of H. E. Sheikh Suroor Bin Mohammed Al Nahyan Abdulla Khalil Al Mutawa Khalid Mana Saeed Al Otaiba Abdulla Khalil Al Mutawa is a Non-Executive, Independent member of EFG Holding’s Board of Directors. He is a competent and dedicated investment professional with more than 40 years of experience and a comprehensive background in finance and administration. He is currently an Advisor to SSPO, the Private Office of H.E. Sheikh Suroor Bin Mohammad Al Nahyan. Al Mutawa has also served on the Board of Directors of Bank Alfalah Limited, Pakistan, since 1997, with membership posts on the bank’s Board Audit Committee (BAC), Remuneration and Nomination Committee (BHR&NC), Board Risk Management Committee (BRMC), Board Compensation Committee (BCC), and Board Information Technology Committee (BITC), in addition to serving as Chairman of the Board Strategy and Finance Committee (BS&FC). Al Mutawa is also Chairman of Makhazen Investment PJSC (Private Joint-Stock Company), Abu Dhabi, and Chairman of the Makhazen Executive Committee. Al Mutawa holds a BSc in Business Administration from the University of North Carolina, USA. 124 Our Team Founder, Wafra Export Ramsay Zaki Ramsay Zaki is a Non-Executive, Independent member of EFG Holding’s Board of Directors. In 2014, Zaki founded Wafra Export, a fruit export company that owns a state-of-the-art packing house and grows its produce on a 360-acre plot. Zaki was part of the EFG Holding team for 18 years, starting as Head of Operations Brokerage in 1995 and ending his tenure as Chief Operating Officer (COO). As COO, Zaki was responsible for managing operational matters, including compliance-related functions. Zaki’s contribution to EFG Holding includes rapidly growing the Firm’s backbone in all countries and lines of business while maintaining the highest degree of corporate governance and ethics. He also weathered major economic and political events in the region. He was also a member of the Firm’s Board of Directors until 2013. Prior to joining EFG Holding, Zaki worked for five years at Commercial International Bank (CIB), where he headed the team responsible for extending credit to the Egyptian pharmaceutical industry. During his time at CIB, Zaki successfully more than doubled loans to the sector and captured a 70% market share of all private sector pharmaceutical companies operating in Egypt. Zaki was also heavily involved in the merger negotiations between the two biggest private sector pharmaceutical companies in the country. Zaki holds a BCom from Cairo University. Senior Advisor, NATIXIS Géraud Brac de la Perrière Géraud Brac de la Perrière is a Non-Executive member of EFG Holding’s Board of Directors. Brac de la Perrière is the Senior Advisor of Natixis’ CEO and Co-Chairman of Natixis’ Credit Committee since January 2022. He was the Group Chief Risk Officer at BPCE from 2019 to 2021. Before that, he was the Group Chief Audit Executive at BPCE from 2010 to 2018. Brac de la Perrière was also the CEO of Allianz Global Investors France from 1996 to 2010. He had previously held several executive responsibilities at CACIB (Banque Indosuez) in France and Switzerland from 1987 to 1996. At the beginning of his career, he worked as an inspector of finance at French Ministry of Finance from 1983 to 1987. Brac de la Perrière graduated from HEC Paris and Ecole Nationale d’Administration. 125 126 Founder and Managing Member of Volpe Investments, LLC Thomas Volpe Thomas Volpe is a Non-Executive, Independent member of EFG Holding’s Board of Directors. Volpe is the Founder and Managing Member of Volpe Investments, LLC, a private equity investment firm based in Silicon Valley, CA. Previously, from 2007–2012, he lived in Dubai, UAE, and was the CEO and Board Member of Dubai Group, LLC, one of the Dubai ruler’s global private investment firms. From 1986-2000, Volpe was the Founder, Chairman, and CEO of Volpe Brown Whelan & Company (“VBW”), an international risk capital, investment management, and investment banking firm focused on rapidly growing entrepreneurial companies in the technology and healthcare industries. VBW was sold to Prudential Securities in 2000, and Volpe served as Chairman of the renamed Prudential Volpe Technology Group. Before forming VBW, Volpe was CEO, President, and Board member of Hambrecht & Quist Incorporated (acquired by J.P. Morgan), the world’s leading technology and healthcare-focused venture capital and investment banking firm. Throughout his career, Volpe has served on numerous Boards, including publicly traded, private, and nonprofit entities. Volpe received an A.B. degree (cum laude) in Economics from Harvard College, a Master of Science in Economics degree from the London School of Economics and Political Science, where he studied on a fellowship from the Rotary International Foundation, and an MBA degree from the Harvard Business School. Volpe also serves as Chairman and CEO of 7th Inning Stretch LLC, a sports- focused investment company which, among other investments, currently owns three minor league baseball teams, the Stockton (CA.) Ports, an Oakland A’s affiliate, the Everett (WA.) AquaSox, a Seattle Mariners affiliate, and the Delmarva (MD.) Shorebirds, a Baltimore Orioles affiliate. Non-Executive Board Member of EFG Holding Mona Yassine Mona Yassine is a Non-Executive, Independent member of EFG Holding’s Board of Directors. Yassine had a 40- year banking career, of which 25 were with Citibank N.A. Egypt in corporate banking and risk management; three years with Banque du Caire as Executive Vice Chairman; and five years as Chairman for the Cairo FarEast Bank and non-executive Board Member of Banque Misr and Banque du Caire; five years as Chief Country Officer for Abu Dhabi Islamic Bank in Iraq. She was appointed the first chairperson of the Egyptian Competition Authority for five years. Yassine founded the Egyptian Association for the Protection of Competition, an NGO established in Cairo, Egypt, in September 2011, and assumed the post of Vice Chairperson. She was also a non-executive Board Member of Egylease from 2018 to 27 April 2023. She was involved in reforms, restructuring debt, and market repositioning for multiple banks throughout her career. Yassine holds a BA in Economics and Management from the American University in Cairo. She also obtained an Investment Appraisal and Management Diploma from Harvard University, School of Government, USA. 127 Our Team Section Flag 128 129 CORPORATE SUSTAINABILITY AND IMPACT OUR APPROACH TO SUSTAINABILITY EFG Holding is a powerhouse financial institution, offering boundless opportunities through its universal bank in Egypt and the leading investment bank in the MENA region. With a presence in seven countries across two continents, covering 75 of the world’s most compelling markets, the Group has successfully evolved into a full-fledged, impact-driven financial leader. Leveraging deep market expertise and the synergies within its business model, EFG Holding consistently unlocks value-accretive opportunities for its clients. Recognizing the urgency of climate change and its far-reaching implications, EFG Holding is embedding climate-related risk assessment and management into its governance framework at every level. The Firm has taken a proactive stance by calculating emissions from select operations and publishing its first carbon footprint report for 2022, with bi-annual disclosures to track progress and refine its reduction strategies. It is also working on an extensive plan to curb its Remaining mindful of our carbon footprint, promoting sustainable business operations, and executing investments that ensure the sustainability of the environment at large. Environmental Social Governance Supporting our people and the communities we serve through key initiatives and leveraging the power of technology to create social impact. Establishing strict internal frameworks and reporting mechanisms that promote transparency and accountability across all levels of the Group. The Pillars Guiding our Sustainability Strategy carbon footprint, including measuring and mitigating emissions across its value chain and investment activities where data permits. In parallel, EFG Holding is strengthening its investment teams with specialized training to navigate climate risks and seize sustainability-driven opportunities. With its award-winning research and extensive expertise in emerging markets, the Group safeguards clients from environmental risks while identifying high-potential sustainable investments. Through its three core verticals—Investment Bank (EFG Hermes), Non-Bank Financial Institutions (EFG Finance), and Commercial Bank (Bank NXT)—EFG Holding delivers an innovative suite of financial solutions tailored to individuals and businesses of all sizes. In 2024, the Group achieved outstanding results across all its verticals, underscoring its strategic foresight and resilience in navigating complex economic landscapes. 130 Our holistic approach to value creation not only drives our financial success, but it also contributes to the broader goals of sustainable development. CSI 131 Recognition for our Efforts in 2024 Awards received by EFG Holding and its subsidiaries: 132 ESG Investing Awards • Best ESG Investment Fund: PRIVATE EQUITY (SPECIALIST) • Best ESG Investment Fund: IMPACT (PRIVATE MARKETS) • Best ESG Investment Fund: INFRASTRUCTURE • Best Bank for Sustainable Finance Euromoney Awards for Excellence • Best Bank for Corporate Responsibility in Egypt EMEA Finance • Best Sustainable IPO in MENA • Best Social Securitisation Deal in EMEA IDC Best in Future Enterprise Awards • Best in Future of Enterprise Intelligence – Overall Winner • Best in Future of Work EMEA Award – First Runner-up Global Banking and Finance Review Award • Tanmeyah – Best Financial Institution for Empowering Women in Business in Egypt 2024 • Tanmeyah – Best Microfinance Company Egypt 2024 Awards received by EFG Holding and its subsidiaries: 133 Hanaa Helmy, Group Chief Sustainability Officer, EFG Holding & CEO of the EFG Foundation, has been recognized as one of Forbes Middle East’s Sustainability Leaders in 2024 in the Banking and Financial Services Category. Walid Hassouna, CEO of Valu, was named as one of Forbes Middle East’s Sustainability Leaders in 2024 in the Green Finance Category. CARBON FOOTPRINT MONITORING EFG Holding is firmly committed to reducing waste throughout its operations. By implementing eco-friendly initiatives, such as minimizing paper usage, optimizing energy consumption, and adopting green technologies, the Group actively contributes to environmental preservation. Monitoring and reducing our carbon footprint aligns with this commitment and contributes to global efforts to combat climate change, enhances operational efficiency, and strengthens trust with stakeholders who value environmental stewardship. In 2023, we issued our first bi-annual Carbon Footprint Report (CFR) for the baseline year 2022, and we continue to collect data and monitor our consumption in preparation for our second CFR in 2025. 135 RESPONSIBLE INVESTING AND CLEAN ENERGY EFG Holding is committed to accelerating the transition to clean energy throughout our business through various mechanisms including investment in renewable energy and the facilitation of green lending to meet climate goals. Vortex Energy Vortex Energy is a premier investment platform dedicated to advancing the global energy transition. Established in 2014, it operates with a global mandate, investing across the energy transition spectrum for sovereign, institutional, and strategic investors. As the world accelerates toward clean energy and transportation electrification, Vortex Energy stands at the forefront of this transformation. Private and public sector initiatives have driven remarkable progress, with renewable energy now exceeding 30% of the global electricity mix and electric vehicles accounting for one in five cars sold worldwide. In 2024, the power sector is expected to achieve its first-ever annual emissions reduction, cementing 2023 as a global emissions peak. Sustainability is embedded in Vortex Energy’s ethos. In partnership with EFG Holding, the Firm operates under a robust ESG framework aligned with the United Nations Global Compact (UNGC) Principles. By investing in sustainable infrastructure and innovative technologies, Vortex Energy is shaping the future of energy. 134 Annual Carbon Dioxide Savings Since its inception, Vortex Energy has successfully deployed, managed, and harvested capital across three investment vehicles, optimizing portfolios for environmental and social impact. Up until 2020, the Firm acquired and managed 822MW of net renewable energy capacity across Spain, Portugal, Belgium, France, and the UK. These assets generated 4.6 TWh of clean energy, offsetting approximately 4.5 million metric tonnes of CO₂. More importantly, these projects continue to deliver long-term impact. Over the next few decades, they are projected to offset 1.4 million metric tonnes of CO₂ annually, reinforcing Vortex Energy’s pivotal role in advancing clean energy solutions. In July 2021, Vortex Energy launched Vortex IV, its flagship investment vehicle, with EFG Hermes, Abu Dhabi sovereign institutions, and prominent family offices anchoring the fund. This milestone marked a strategic shift towards a broader global investment strategy, aligning with investors’ growing focus on energy transition. Vortex IV provides risk-managed exposure to a balanced portfolio of energy transition assets, spanning: • Renewable Generation: Utility-scale solar PV, on/offshore wind, hydropower, and distributed generation. • Energy Storage: Battery energy storage systems (BESS) and pumped hydro. • EV Charging Infrastructure • Energy Efficiency & Smart Grid Technologies With a geographical focus on OECD markets, Vortex IV was also awarded the ADGM Green Fund Designation, becoming only the second fund to achieve this prestigious status. Vortex Energy Legacy (I, II and III) Vortex Energy (IV) Vortex legacy Vortex I Vortex II Vortex III (tonnes of CO2e) CSI 500,000 1,000,000 1,500,000 2023 2014 2015 2016 2017 2018 2019 2020 2021 2022 In October 2021, Vortex IV made its first investment by injecting EUR 300 million into Ignis Energy Holdings to support its ambitious >20GW renewable energy platform. This investment has already facilitated: In 2023, Vortex Energy co-led an USD 80 million equity investment in EO Charging, a UK-based leader in EV fleet charging solutions, in collaboration with Zouk Capital. This investment supports EO’s expansion across Europe and North America, helping it scale its smart charging technology for fleets used by Amazon, DHL, Uber, and Tesco. Vortex IV & EO Charging: An Evolutionary Partnership Vortex IV & Ignis Synergetic Partnership 136 Green Lending Valu x KarmSolar Establishing green lending facilities is crucial for fostering sustainable development and addressing environmental challenges. These facilities provide financial support for projects that promote renewable energy, energy efficiency, and other environmentally friendly initiatives. By channeling funds into green projects, green lending facilities help reduce carbon emissions, conserve natural resources, and mitigate the impacts of climate change. Additionally, they encourage businesses and communities to adopt sustainable practices, leading to long-term economic and environmental benefits. EFG Holding has launched several innovative green lending facilities through its subsidiaries. Bank NXT offers two retail loan facilities to empower individuals to make climate-friendly purchases. In 2024, Valu announced a new partnership with KarmSolar, a multi-utility company specializing in renewable energy, to introduce an Electric Vehicle (EV) charging network in District 5. KarmSolar launches this initiative through its newly established subsidiary ‘Karm’. The environmentally sustainable collaboration brings electric vehicle (EV) charging stations to District 5 including the residential compound where drivers will be able to use Valu’s payment solutions to charge their vehicles hassle-free on the Karm application. Karm is KarmSolar’s latest endeavor that invests and operates in electric vehicle charging infrastructure across Egypt capturing the transition of the transportation sector to green and electric vehicles. 368MW currently under construction 5.1GW 219MW of environmental permits for solar PV projects in operation Following the partnership with EO Charging, Vortex IV will deploy capital to accelerate the electrification of transport. The investment will benefit from the accelerating shift towards clean mobility, reinforced by strong market fundamentals and supportive regulatory frameworks, in a sustainable and growing sector that is destined to continue attracting new capital inflows over the next decades. EFG Corp-Solutions EFG Corp-Solutions plays a crucial role in fostering initiatives that promote sustainability and encourage responsible business practices in alignment with both our ESG mandate and with the National Sustainable Development Strategy ‘Egypt 2030’. As part of its broader environmental sustainability goals, the Egyptian authorities have implemented measures to promote the transition to recycled paper packaging. These measures include regulations that encourage the use of eco-friendly packaging materials, such as paper, to reduce plastic waste, along with incentives for businesses to adopt sustainable packaging solutions, including tax breaks and subsidies. Through strategic financing, EFG Corp-Solutions is helping to drive innovation in areas that support this strategy. 137 CSI In 2024, the leasing business line acquired a significant position by allocating a fund amounting to EUR 5.0 million to finance one of the largest plastic recyclers in the MENA region and EGP 200 million to finance one of the leading printing and packaging corporations in Egypt. The company also allocated EGP 2 billion to finance clients dedicated to promoting eco-tourism, enabling them to implement sustainable practices and achieve certification under the ‘Green Star Hotel Program,’ a pioneering initiative that sets rigorous standards for environmental sustainability in the hospitality industry. This program provides an invaluable opportunity for hotel chains operating in Egypt to gain international recognition for their commitment to eco-friendly practices. EDUCATION Creating long-term value in the educational sector is a fundamental component of our sustainability strategy in Egypt and beyond. Our holistic approach to value creation not only drives our financial success, but it also contributes to the broader goals of sustainable development. This approach, combined with our commitment to excellence across all aspects of our business, allows us to maximize gains in terms of positive impact on the SDGs as well as on financial returns for our investors and stakeholders. Our sustainability-driven approach to value creation involves a multifaceted approach that combines investment and financing with targeted support activities across many sectors including clean energy, education, healthcare, fintech, and microfinancing, creating a virtuous cycle of value creation that benefits both the economy and the planet. The Egypt Education Platform Established in 2018, the Egypt Education Platform (EEP) is backed by a strong network of regional and global investors, including EFG Hermes’ Private Equity, The Sovereign Fund of Egypt (TSFE), and GEMS Education Global. Dedicated to enhancing the quality of education in Egypt, EEP addresses critical gaps in the sector through a diverse range of educational solutions. With a clear vision and experienced leadership, EEP is rapidly emerging as a leading education provider in Egypt. Its portfolio currently includes 25 assets across the country, accommodating approximately 25,000 students. Additionally, its education content business serves between three and four million students annually, while its specialized transportation service ensures safe daily commutes for over 3,000 students. Operating under six distinct verticals and brands, EEP’s network includes GEMS International Schools, Hayah Schools, Prime International Language Schools, Trillium Preschools, Selah El Telmeez, and Option Travel. Reflecting market needs, the EEP has demonstrated extraordinary growth since its launch, expanding 16-fold in five years. This exponential growth reflects its commitment to operational excellence, strong leadership, a solid governance structure, and world-class education. The success of the EEP enabled the replication of this successful model in the Gulf countries through EFG Hermes’ new USD 300 million Saudi Education Fund, launched in 2024. 138 Saudi Education Fund In November 2024, EFG Hermes’ Private Equity arm launched the USD 300 million Saudi Education Fund (SEF) with the goal of establishing a world- class institutional K-12 operator in Saudi Arabia. SEF is currently finalizing two key transactions. The first involves definitive agreements with a leading financial group in the Gulf Cooperation Council (GCC) to acquire a portfolio of seven international schools owned by private equity funds managed by GFH under the Britus Education brand. The portfolio includes four schools in Saudi Arabia, two in the UAE, and one in Bahrain, with a total capacity of approximately 12,000 students, of which nearly 8,000 are currently enrolled. The second transaction involves the full acquisition of an American curriculum K-12 school in Riyadh. For the academic year 2024/25, the school has a total capacity of 3,000 students and an enrollment of 1,788. In the following academic year, 2025/26, the school plans to relocate to a new, purpose-built campus, increasing its total capacity to 4,500 students. 139 Valu Educational Partnerships Launched in December 2017 as a Buy-Now, Pay-Later (BNPL) provider, Valu has grown into the MENA region’s leading financial technology powerhouse, continuously pushing market boundaries and introducing seamlessly integrated financial solutions. In 2024, Valu forged strategic partnerships with institutions such as ElSewedy University of Technology (SUT) and ESLSCA University to drive sustainability goals through targeted investments in human capital and expanded access to education. By offering flexible tuition payment options at both universities, Valu empowers students with accessible financial solutions, enhancing educational opportunities while nurturing talent in the renewable energy and sustainability sectors. This initiative not only supports the development of a skilled workforce but also reinforces a culture of innovation and sustainability in Egypt. In line with its commitment to fostering AI talent and advancing education in emerging technologies, Valu also partnered with Hive Analytics to provide flexible financing solutions for students enrolling in AI programs. As part of this collaboration, Valu contributed EGP 125,000 in prize funding to reward outstanding AI graduation projects, incentivizing innovation and excellence. This initiative aligns with Valu’s broader mission to strengthen technological capacity and equip the next generation with the skills needed to drive Egypt’s tech-focused future, seamlessly integrating educational advancements with ESG principles to foster innovation that delivers tangible societal benefits. CSI THE EFG FOUNDATION Integrated Sustainable Development Prioritizing ethical practices, community engagement, and environmental stewardship reflects our core principles and builds trust with our stakeholders. 140 This year marks 18 years of impact and achievement for the EFG Foundation. Since its inception in 2006, the Foundation—a non-profit, non-governmental organization—has been at the forefront of tackling social inequality. Dedicated to transforming underprivileged rural communities in Upper Egypt, it has forged pioneering, holistic partnerships with public, private, and community organizations to drive meaningful change. Today, the Foundation takes pride in having positively impacted over 500,000 beneficiaries across Egypt through its innovative Integrated Sustainable Development (ISD) initiatives. Its work is built on three core pillars: poverty alleviation, youth development, and disease prevention, with climate action embedded as a guiding principle across all projects and programs. The EFG Foundation’s founding model for all its projects in Egypt is Integrated Sustainable Development (ISD). This country-specific approach ensures equitable progress towards the UN’s SDGs, while aligning with the 2030 Agenda, as well as national development plans and objectives all in one step. ISD is a holistic approach to fostering long-term growth and well-being in underserved Today, the Foundation takes pride in having positively impacted over 500,000 beneficiaries across Egypt. communities, emphasizing the interconnectedness of various sectors and aiming to create enduring and comprehensive improvements in people’s lives while also avoiding undesirable long-term ramifications. 141 Naga’ El Fawal & El Deir Integrated Development Project Since its inception, the EFG Foundation has spearheaded several transformative Integrated Sustainable Development (ISD) projects in Upper Egypt, including the Ro’ya Project in Ezbet Yacoub, Beni Suef governorate (2007–2010), and the Al Makhzan Project in Qena governorate (2014–2016). However, in 2017, the Foundation launched its most ambitious initiative yet: the Naga’ El Fawal and El Deir Village project in Esna, Luxor. Like previous ISD project locations, this village faced significant challenges—high poverty and unemployment rates, inadequate healthcare, substandard housing, and limited infrastructure—hindering opportunities for economic independence. Determined to create lasting change, the Foundation set out to improve the lives of approximately 75,000 residents by investing in infrastructure, education, and economic empowerment. This effort was made possible through strategic collaborations with the Governorate of Luxor, local authorities, and NGOs. From the outset, the Foundation prioritized building trust within the community, engaging residents in the planning process, valuing their perspectives, and consistently delivering on its commitments. As projects progressed, a strong bond of mutual respect and confidence emerged between the Foundation and the village. Recognizing the significance of this trust, the Foundation chose not to move on to a new location but instead deepened its engagement, securing additional funding and expanding its initiatives. Today, the EFG Foundation remains steadfast in its commitment to Naga’ El Fawal & El Deir Village, with a pipeline of new projects set to further its mission of fostering a more equitable and hopeful future for the community. The Young Scholars Academy stands as EFG Foundation’s flagship initiative in Naga’ El Fawal, embodying the untapped potential for innovation within Egypt’s rural communities. As the first nursery of its kind in the area, the Academy operates under an inclusive Montessori system, providing a nurturing environment for both children with disabilities and those without. Since its inauguration in September 2019, the Academy has become a cornerstone of the community—a symbol of hope and progress for residents in Naga’ El Fawal and beyond. More than just a place of learning, it fosters sustainable employment opportunities and instills a sense of dignity and empowerment within a historically underserved population. This year has been a defining one for the Academy, marked by significant growth and the introduction of new initiatives aimed at solidifying its role as a model of sustainable educational excellence. Its impact has extended beyond Naga’ El Fawal into neighboring areas, reinforcing the transformative power of the EFG Foundation’s ISD approach. Recognizing its profound influence, the Foundation has actively supported the Academy’s expansion, ensuring that more children and families in marginalized communities have access to quality early education and a brighter future. CSI The Young Scholars Academy Infrastructure & Capacity Enhancements Teacher Upskilling: Advancing Special Needs Education Curriculum Enhancement: Climate Action Integration In 2024, the Academy expanded its teaching staff from 45 to 57, maintaining a strong student-to-teacher ratio. To support financial inclusion, all staff members now have bank accounts. Recognizing the need for specialized support, the Academy extended its operating hours, increasing monthly One-on-One Sessions for children with special needs from 17 to 30. The summer program also saw record demand, expanding student intake from 60 to 90 and raising the maximum age limit from 11 to 14 years. The Academy continued its two-year teacher training program in collaboration with Egypt’s Progressive Behavioural Services (PBS) center. Teachers received internationally accredited training in applied behavior analysis (ABA), equipping them with the skills to support language development, school readiness, and social adaptability in children with special needs. The Foundation introduced an environmentally sustainable curriculum, embedding lessons on green spaces, food security, and pollution reduction. Older students in the summer school program also explored economic and environmental challenges such as overpopulation, climate change, and agricultural sustainability. Expanding Horizons: A Dedicated Facility for Special Needs Education With increasing demand, the Foundation, in collaboration with Luxor Governorate and philanthropic partners, is launching a major expansion. A new three-story building adjacent to the current site will be dedicated to children with special needs, featuring sensory rooms, physiotherapy centers, specialized facilities for the hearing and visually impaired, ramps, elevators, and a modern auditorium. To support this growth, the Foundation partnered with the Bonyan Foundation for Montessori training, led by Dr. Mona Abulfotouh. Over 100 women were rigorously screened, with top achievers set to join the Academy’s staff, reinforcing the Foundation’s commitment to women’s empowerment and community development. Future Pioneers School In collaboration with the General Authority for Educational Buildings and under the supervision of the Luxor Governorate, EFG Foundation successfully built the Future Pioneers School in Naga’ El-Berkah, Luxor, within just nine months. The school was officially inaugurated in November 2024 in the presence of high-ranking officials, including H.E. Eng. Abdel Mottaleb Emara, Governor of Luxor, and senior representatives from the Ministry of Education, Ministry of Solidarity, and local infrastructure authorities. This initiative reflects EFG Foundation’s expanding commitment to sustainable development in Luxor, beyond its flagship projects in Al-Deir village. The school was established in response to the urgent demand for educational facilities, as identified by the General Authority for Educational Buildings. With a population of 8,000, Naga’ El-Berkah is a community where over 65% of residents live below the official poverty level. Future Pioneers School is only the second school in the area to offer preparatory-level education and is set to reduce classroom overcrowding, where student numbers previously exceeded 60 per class. This milestone reinforces EFG Foundation’s mission to enhance access to quality education and empower underserved communities. 142 CSI Future Pioneers School in Numbers 1,000 22 4,200SQM Foundation, primary, preparatory Students Classrooms Area Facilities Nawara Building on the success of the Green Footprint Initiative, EFG Foundation launched Nawara, an expanded project empowering women in Luxor through aloe vera cultivation. By transforming rooftops and balconies into sources of income, Nawara enhances environmental sustainability, financial independence, and community well-being. Nawara has gained national recognition, winning the National Competition for Smart Green Projects for the second consecutive year, aligning with Egypt’s Vision 2030. Women participants receive training in cultivation techniques while EFG Foundation fosters entrepreneurship by connecting them with leading cosmetics and skincare brands. A major milestone is Nawara’s partnership with Norshek, a sustainable cosmetics leader, ensuring that the high-quality aloe vera extract meets industry standards. Under Norshek’s guidance, women produced the first batch of jasmine- scented natural aloe vera gel, distributed to EFG Holding From 50 to 1,000 women over 5 years 1,400 tons annually Scale CO2 Reduction employees for International Women’s Day and introduced for corporate deals, showcasing the initiative’s tangible impact. Looking ahead, Nawara aims to scale from 50 to 1,000 women over five years, achieving an estimated 1,400 tons of CO₂ reduction annually. This initiative redefines sustainable development, empowering women and transforming local communities through economic and environmental progress. 143 Nawara – The Next Phase 145 The EFG Foundation partnered with Minya University Hospital to renovate and expand its pediatric dialysis ward, addressing a critical shortage of care for children with chronic kidney disease. Following a devastating fire that destroyed vital medical equipment, the Foundation funded the full restoration of the facility, adding a new ward, modern dialysis units, ICU beds, and advanced fire safety systems. As a result, the ward’s capacity has significantly increased, allowing for 15,330 additional dialysis sessions annually and alleviating overcrowding. To enhance the healing environment, a mural painted by employees’ children was introduced, along with improved spaces for medical staff collaboration, ensuring long-term impact on healthcare infrastructure and patient well-being. The EFG Foundation partnered with Tagaddod to tackle environmental and economic challenges in Luxor through the sustainable collection of used cooking oil for biodiesel production. Recognizing the need for awareness and proper disposal methods, the Foundation engaged 50 women from its Esna community in Tagaddod’s Women Ambassadors program. These women were trained to educate households on the environmental risks of improper disposal and facilitate oil collection through Tagaddod’s digital platform. This initiative not only reduces pollution and promotes clean energy but also creates income opportunities for women, reinforcing the Foundation’s commitment to climate action and financial inclusion. Dialysis Wards with Minya University Hospital Sustainable Waste Management with Tagaddod 144 Nurse Training with Bank NXT and the Magdi Yacoub Heart Foundation Youth Empowerment with Luxor University’s Faculty of Fine Arts Committed to advancing healthcare education, the EFG Foundation, in collaboration with Bank NXT and the Magdi Yacoub Heart Foundation (MYHF), supports the training of nurses at the Aswan Heart Centre (AHC). The initiative enhances cardiac care by equipping 70 nursing fellows annually with specialized training through a rigorous curriculum, combining theoretical learning with hands-on experience. The program boasts an 80% retention rate, with graduates securing positions at AHC and other top hospitals in Egypt. As MYHF expands with a new facility in Cairo, this partnership ensures a steady pipeline of highly skilled cardiovascular nurses, strengthening Egypt’s healthcare system and improving patient outcomes. The EFG Foundation joined forces with Luxor governorate and Luxor University’s Faculty of Fine Arts to enhance community aesthetics and support young artists. The partnership launched a mural project in El Deir village, transforming 19 residential buildings in line with Luxor’s cultural identity. Additionally, an art competition was introduced to provide financial incentives for emerging artists. During the collaboration, the Foundation identified students struggling with tuition and accommodation fees and stepped in to cover costs for 51 students for the 2023/2024 academic year. By fostering creative expression and supporting students in financial hardship, the initiative strengthens community engagement and youth development. CSI EFG Holding’s robust governance and business practices help foster client and stakeholder trust and provide a foundation for success underpinned by principles of integrity that inform all our decisions and activities. With rigorous processes, policies, and procedures in place, we ensure transparent and ethical operation throughout the organization. This commitment has been at the heart of our success over the years and extends to our efforts to integrate sustainability across our operation. Our integrity goes hand in hand with our core value of empathy, particularly when it comes to our employees. We strive to foster a strong ‘people- centric’ culture embedded across the Firm, making sure that our staff have extensive opportunities to thrive and grow in both professional and personal capacities. The Corporate Sustainability and Impact (CSI) Department plays a critical role in driving our organization’s commitment to ESG principles by working with each of the business lines and administrative departments to reduce the Group’s environmental footprint, promote social responsibility, and ensure long-term economic viability. One important aspect of the CSI department’s work has been to conduct a GAP analysis in conjunction with other departments and business lines to gather valuable data on current practices, identify areas for improvement, and track progress towards sustainability goals. By collecting and analyzing this information, the CSI team can develop targeted initiatives and foster collaboration across departments, driving continuous improvement in the Group’s sustainability performance. This systematic approach ensures that sustainability efforts are aligned with the overall business strategy and contribute to the organization’s success. It also ensures that EFG Holding fulfills its reporting requirements to maintain membership in protocols such as the UNPRI, the UNGC, and the WEP as well as adhering to the ESG requirements of financial regulatory authorities across the countries where the Group conducts business. For a more comprehensive review of the Group’s corporate governance frameworks and compliance with ESG-related requirements, please refer to the “Corporate Governance” section outlined in this annual report. GOVERNANCE EFG Holding’s robust governance framework plays an essential role in managing key risks and ensures we remain aligned with our commitment to sustainable business operations. 146 EFG Holding’s ESG Management System establishes the overarching structure that integrates policies and actions and allows business lines and subsidiaries to adapt processes to suit their areas of operations. CSI 147 Section Flag 148 149 FINANCIAL STATEMENTS Financial Statemnets 150 151 Auditor’s Report To the shareholders of EFG Holding Company Report on the Consolidated Financial Statements We have audited the accompanying consolidated financial statements of EFG Holding Company (Egyptian Joint Stock Company) which comprise the consolidated statement of financial position as of 31 December 2024, and the consolidated statements of income, comprehensive income, changes in equity and cash flows for the financial year then ended, and a sunmary of significant accounting policies and other explanatory notes. Management's Responsibility for the consolidated Financial Statements These consolidated financial statements are the responsibility of Company's management. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the Egyptian Accounting Standards and in the light of the prevailing Egyptian laws, management responsibility includes, designing, implementing and maintaining internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error; management responsibility also includes selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor's Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with the Egyptian Standards on Auditing and in the light of the prevailing Egyptian laws. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements. Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of EFG Holding Company as of December 31, 2024 and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with Egyptian Accounting Standards and comply with applicable Egyptian laws and regulations relating to the preparation of these consolidated financial statements. KPMG Hazem Hassan Cairo, March 19, 2025 Financial Statemnets 152 153 Consolidated statement of financial position Consolidated income statement (Restated)* (in EGP Thousands) Note no. 31/12/2024 31/12/2023 Assets Cash and cash equivalents (5) 51,540,737 32,252,243 Loans and faciltites to customers (8) 57,928,603 40,221,897 Accounts receivables (7) 15,773,382 6,770,962 Investments at fair value through profit and loss (6) 23,488,674 9,196,191 Investments at fair value through OCI (9) 12,374,218 11,647,611 Investments at amortised cost (11) 12,487,545 11,233,860 Assets held for sale (31) 106,304 - Equity accounted investees (10) 804,867 844,793 Investment property (12) 90,283 98,701 Property, plant and equipment (13) 2,975,630 2,177,789 Goodwill and other intangible assets (14) 2,490,920 2,318,723 Deferred tax assets (21) 233,912 126,411 Other assets (15) 6,583,336 5,021,903 Total assets 186,878,411 121,911,084 Liabilities Due to banks and financial institutions (16) 22,762,916 14,055,729 Customer Deposits (17) 67,208,585 50,634,207 Loans and borrowings (23) 11,489,567 8,130,903 Other liabilities (20) 11,130,638 6,216,904 Accounts payable - customers credit balance at fair value through profit and loss (18) 7,901,466 680,319 Accounts payable - customers credit balance 20,566,943 11,319,690 Issued bonds (19) 1,432,665 749,003 Provisions (22) 1,913,277 1,099,271 Current tax liability (30) 1,020,705 638,583 Deferred tax liabilities (21) 2,083,684 987,436 Total liabilities 147,510,446 94,512,045 Equity Share Capital (24) 7,298,030 7,298,030 Legal reserve 993,689 972,344 Share premium 1,797,838 1,668,624 Other reserves 11,800,563 4,843,110 Treasury shares (24-1) (399,975) - Retained earnings 12,568,681 8,534,456 Equity attributable to owners of the Company 34,058,826 23,316,564 Non - controlling interests (25) 5,309,139 4,082,475 Total equity 39,367,965 27,399,039 Total equity and liabilities 186,878,411 121,911,084 For the year ended (Restated)* (in EGP Thousands) Note no. 31/12/2024 31/12/2023 Interest income (34) 22,319,642 13,484,814 Interest expense (15,310,258) (8,867,099) Net Interest Income 7,009,384 4,617,715 Fee and commission income (34) 11,452,386 7,161,919 Fee and commission expense (1,357,101) (719,609) Net Fees and commission Income 10,095,285 6,442,310 Securities (loss) gain (57,356) 171,671 Changes in investments at fair value through profit & loss 2,844,098 1,411,890 Dividend income (34) 85,998 81,477 Other revenues (27) 1,423,262 740,727 Foreign currencies exchange differences 2,907,706 1,154,847 Share of profit from equity accounted investees (34) 48,853 45,048 Revenue 24,357,230 14,665,685 General administrative expenses (33) (14,469,542) (8,619,089) Financial guarantee provision (22) (40,678) (38,055) Impairment loss on assets (28) (773,002) (1,042,335) Provisions (22) (738,908) (224,814) Depreciation and amortization (12,13,14) (633,597) (481,384) Profit before tax 7,701,503 4,260,008 Income tax expense (29) (2,370,417) (1,093,997) Profit for the period 5,331,086 3,166,011 Profit attributable to: Owners of the company 4,253,970 2,494,010 Non - controlling interests (25) 1,077,116 672,001 5,331,086 3,166,011 Earnings Per Share (EGP) (37) 2.94 1.71 * See note (36) The accompanying notes and accounting policies from page (159) to page (237) are an integral part of these consolidated financial statements and are to be read therewith. Mona Zulficar Karim Awad Chairperson Group Chief Executive Officer * See note (36) The accompanying notes and accounting policies from page (159) to page (237) are an integral part of these consolidated financial statements and are to be read therewith. Financial Statemnets 154 155 Consolidated statement of comprehensive income Consolidated statement of changes in equity As at December 31,2024 Attributable to owners of the Company Other reserves Share capital Legal reserve Share premium General reserve Translation reserve Fair value reserve Empolyee stock Ownership plan reserve Operational Risk Reserve Treasury shares Retained earnings Total Non - controlling interests Total Balance as at 31 December 2022 5,838,424 867,455 1,668,624 158 3,979,860 (1,224,388) 289,011 80,915 - 7,423,239 18,923,298 3,445,286 22,368,584 Total comprehensive income Profit - - - - - - - - - 2,494,010 2,494,010 672,001 3,166,011 Other comprehensive income - - - - 1,670,161 (61,071) - - - 3,512 1,612,602 86,529 1,699,131 Total comprehensive income - - - - 1,670,161 (61,071) - - - 2,497,522 4,106,612 758,530 4,865,142 Transactions with owners of the Company Contributions and distributions Dividends 1,459,606 - - - - - - - - (1,742,238) (282,632) (185,402) (468,034) Transferred to legal reserve - 104,889 - - - - - - - (104,889) - - - Employee stock ownership plan (ESOP) - - - - - - 130,937 - - - 130,937 - 130,937 Operational risk reserve - - - - - - - (22,473) - 22,473 - - - Sale of equity securities through OCI - - - - - - - - - 1,064 1,064 - 1,064 Changes in ownership interests Acquisition of subsidiary with NCI - - - - - - - - - - - 10,918 10,918 Changes in ownership interests without change in control - - - - - - - - - 437,285 437,285 53,143 490,428 Balance as at 31 December 2023 7,298,030 972,344 1,668,624 158 5,650,021 (1,285,459) 419,948 58,442 - 8,534,456 23,316,564 4,082,475 27,399,039 Balance as at 31 December 2023, as previously reported 7,298,030 972,344 1,668,624 158 5,650,021 (1,285,459) 419,948 58,442 - 8,538,917 23,321,025 4,074,904 27,395,929 For the year ended (Restated)* (in EGP Thousands) 31/12/2024 31/12/2023 Profit for the year 5,331,086 3,166,011 Other comprehensive income: Items that are or may be reclassified to profit or loss Foreign operations - foreign currency translation differences 7,055,262 1,919,415 Foreign currency translation differences - reclassified to profit or loss (26,944) (198,160) Investments at fair value through OCI - net change in fair value 206,902 (255,753) Investments at fair value through OCI - net change in fair value - reclassified to profit or loss 213,739 215,549 Investment at fair value through OCI - reclassified to retained earnings 554 ( 1 064) Share of OCI of equity accounted investees 4,672 1,313 Actuarial Gain re-measurement of employees’ benefits obligations 2,179 3,512 Related tax (102,709) 14,319 Other comprehensive income, net of tax 7,353,655 1,699,131 Total comprehensive income 12,684,741 4,865,142 Total comprehensive income attributable to: Owners of the company 11,231,722 4,106,612 Non - controlling interests 1,453,019 758,530 12,684,741 4,865,142 * See note (36) The accompanying notes and accounting policies from page (159) to page (237) are an integral part of these consolidated financial statements and are to be read therewith. Financial Statemnets 156 157 Consolidated statement of changes in equity (Continued) As at December 31,2024 Attributable to owners of the Company Other reserves Share capital Legal reserve Share premium General reserve Translation reserve Fair value reserve Empolyee stock Ownership plan reserve Operational Risk Reserve Treasury shares Retained earnings Total Non - controlling interests Total Effect of change in accounting policies Impact of Purchase price alloca tion on subsidiary - - - - - - - - - (4,461) (4,461) 7,571 3,110 Restated Balance as at 31 December 2023 7,298,030 972,344 1,668,624 158 5,650,021 (1,285,459) 419,948 58,442 - 8,534,456 23,316,564 4,082,475 27,399,039 Total comprehensive income Profit - - - - - - - - - 4,253,970 4,253,970 1,077,116 5,331,086 Other comprehensive income - - - - 6,728,166 247,408 - - - 2,178 6,977,752 375,903 7,353,655 Total comprehensive income - - - - 6,728,166 247,408 - - - 4,256,148 11,231,722 1,453,019 12,684,741 Transactions with owners of the Company Contributions and distributions Dividends - - - - - - - - - (160,846) (160,846) (228,916) (389,762) Transferred to legal reserve - 21,345 - - - - - - - (21,345) - - - Transferred to share premium - - 129,214 - - - (55,276) - - - 73,938 - 73,938 Operational risk reserve - - - - - - - 37,155 - (37,155) - - - Purchasing of Treasury Shares - - - - - - - - (399,975) - (399,975) - (399,975) Sale of equity securities through OCI - - - - - - - - - 2,975 2,975 1,296 4,271 Changes in ownership interests Changes in ownership interests without a change in control - - - - - - - - - (5,552) (5,552) 1,265 (4,287) Balance as at 31 December 2024 7,298,030 993,689 1,797,838 158 12,378,187 (1,038,051) 364,672 95,597 (399,975) 12,568,681 34,058,826 5,309,139 39,367,965 * See note (36) The accompanying notes and accounting policies from page (159) to page (237) are an integral part of these consolidated financial statements and are to be read therewith. Consolidated statement of cash flows For the year ended (Restated)* (in EGP Thousands) Note no. 31/12/2024 31/12/2023 Cash flows from operating activities Profit before income tax 7,701,503 4,260,008 Adjustments for: Depreciation and amortization (12,13,14) 633,597 481,384 Provisions formed (22) 779,586 262,869 Provisions used (22) (231,395) (108,850) Provisions reversed (22) (45,230) (5,942) Gains on sale of property, plant and equipment (22,882) (3,251) Gain from securitization (960,692) (432,931) Gain on sale of Investment property (7,648) (56,438) Loss on sale of investment at FVTOCI 203,295 6,382 Amortization of premium / issue discount (2,171,081) (1,270,786) Changes in the fair value of investments at fair value through profit and loss (2,844,098) (1,411,890) Share of gain from equity accounted investees (48,853) (45,048) Impairment loss on assets (28) 773,002 1,042,335 Share-based payment (33,43-20) 73,938 130,938 Employees’ benefits 15,477 10,239 Foreign currency translation differences 6,395,850 2,113,321 Foreign currencies exchange differences (2,907,706) (1,154,847) Gain on selling of Investments in Subsidiaries and Associates (2,599) (116,059) Operating profit before changes in current assets and liabilities 7,334,064 3,701,434 Changes in: Other assets (154,703) (2,348,048) Other liabilities (3,044,184) 1,638,389 Accounts receivables (3,869,228) 1,854,893 Accounts payable (895,777) (2,654,272) Accounts payable - customers credit balance at fair value through profit and loss 7,221,146 301,280 Loans and facilities to customers (20,424,633) (10,328,090) Due from banks (4,699,056) (2,142,353) Due to banks (3,196,040) 1,890,134 Customers deposits 9,102,583 1,181,427 Employees’ benefits obligations paid (37,828) (1,916) Investments at fair value through profit and loss 466,184 (445,075) Income tax paid (1,052,558) (772,664) Net cash used in operating activities (13,250,030) (8,124,861) Financial Statemnets 158 159 Consolidated statement of cash flows (Continued) Notes to the consolidated financial statements for the year ended 31 December 2024 For the year ended (Restated)* (in EGP Thousands) Note no. 31/12/2024 31/12/2023 Cash flows from investing activities Payments to purchase property, plant and equipment and other intangible assets (1,241,297) (736,314) Proceeds from sale of property, plant and equipment 36,355 28,763 Proceeds from Sale of Investment Property 9,579 70,176 Proceeds from sale of investment FVTOCI 29,663,914 25,559,674 Payments to purchase investment FVTOCI (26,353,791) (17,781,236) Payments to purchase investment in subsidiaries (5,562) (69,682) Proceeds from sale investment in subsidiaries - 179,259 Payments to purchase equity accounted investees (71,000) - Proceeds from sale equity accounted investees 13,083 - Dividends collected 16,185 23,102 Net cash provided from investing activities 2,067,466 7,273,742 Cash flows from financing activities Dividends paid (621,494) (495,060) Proceeds from securitization 4,935,750 5,123,406 Proceeds from Issued bonds 1,432,665 249,003 Payment for Issued bonds (749,003) - Proceeds from financial institutions 2,142,133 - Payment for financial institutions - (140,199) Proceeds from loans and borrowings 4,914,826 3,697,968 Payment for loans and borrowings (1,752,246) (1,495,556) Purchasing of treasury shares (399,975) - Net cash provided from financing activities 9,902,656 6,939,562 Net change in cash and cash equivalents (1,279,908) 6,088,443 Cash and cash equivalents at 1 January (32) 25,821,884 14,076,965 Cash from acquisition from subsaidiaries - 3,670 Cash and cash equivalents at 31 December (32) 24,541,976 20,169,078 * See note (36) The accompanying notes and accounting policies from page (159) to page (237) are an integral part of these consolidated financial statements and are to be read therewith. 1. Background 1.1. Incorporation EFG Holding Company S.A.E “the company” is an Egyptian Joint Stock Company subject to the provisions of the Capital Market Law No.95 of 1992 and its executive regulations. The company’s registered office is located in Smart Village building No. B129, phase 3, KM 28 Cairo / Alexandria Desert Road, 6 October 12577 Egypt. The name of the company has been changed to EFG Holding based on the General Assembly’s approval on May 24, 2023 and was reflected in the commercial register on June 14, 2023. 1.2. Purpose of the company EFG Holding Company is a premiere financial services corporation that offers diverse investment banking services including securities brokerage, investment banking, Promoting and Underwriting, Asset management and Private Equity. In addition to its non-bank finance products, which include leasing and micro-finance, installment services, factoring, securitization, collection and Sukuk Issuance. The purpose of the company also includes participation in the establishment of companies which issue securities or in increasing their share capital, custody activities, margin trading and commercial bank activities. 2. Basis of preparation 2.1. Statement of compliance These consolidated financial statements have been prepared in accordance with Egyptian Accounting Standards and relevant Egyptian laws and regulations. 2.2. Authorization of the financial statements The financial statements were authorized for issue in accordance with a resolution of the board of directors on March 18, 2025. 3. Functional and presentation currency These consolidated financial statements are presented in Egyptian pounds (EGP) which is the Company’s functional currency. 4. Use of estimates and judgments • In preparing these consolidated financial statements, management has made judgements, estimates and assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively. • Estimates and assumptions about them are re-viewed on regular basis. • The change in accounting estimates is recognized in the period where the estimate is changed whether the change affects only that period, or in the period of change and the future periods if the change affects them both. Financial Statemnets 160 161 8. Loans and facilities to customers 31/12/2024 31/12/2023 Micro finance 6,511,264 5,059,721 Finance lease 14,419,802 9,306,991 Consumer finance 11,115,123 6,293,816 Factoring 4,619,596 2,401,033 Commercial bank (Bank NXT) 32,512,666 22,794,179 Other loans 2,599,774 2,350,756 SME lending 39,462 -- Unearned interest (10,883,823) (5,855,020) Balance 60,933,864 42,351,476 Impairment loss* (3,005,261) (2,129,579) Balance 57,928,603 40,221,897 Current 26,178,971 17,305,156 Non-current 31,749,632 22,916,741 Balance 57,928,603 40,221,897 Impairment loss * 31/12/2024 31/12/2023 Balance at the beginning of the year 2,129,579 1,760,517 Impairment during the year 683,023 851,215 Write off during the year (348,056) (691,447) Recoveries 169,258 93,687 Effect of foreign currency translation 371,457 115,607 Balance at the end of the year 3,005,261 2,129,579 9. Investments at fair value through OCI 31/12/2024 31/12/2023 Non-current investments Equity securities 301,995 187,146 Mutual fund certificates 301,572 138,264 Debt instruments 4,204,575 4,256,243 4,808,142 4,581,653 Current investments Debt instruments 7,566,076 7,065,958 Balance 12,374,218 11,647,611 5. Cash and cash equivalents 31/12/2024 31/12/2023 Cash on hand 254,489 255,811 Cheques under collection 115 141,951 Banks - current accounts 20,795,151 10,027,157 Obligatory reserve balance with CBE 8,693,380 4,030,033 Banks - time deposits 21,808,653 17,801,324 Balance 51,551,788 32,256,276 Impairment loss (11,051) (4,033) Balance 51,540,737 32,252,243 6. Investments at fair value through profit and loss 31/12/2024 31/12/2023 Mutual fund certificates 12,031,837 7,355,442 Equity securities 179,333 108,293 Debt instruments 3,376,038 832,915 Treasury bills -- 219,222 Structured notes 7,901,466 680,319 Balance 23,488,674 9,196,191 7. Accounts receivables 31/12/2024 31/12/2023 Accounts receivables 15,260,511 7,230,156 Other brokerage companies 1,001,976 57 Balance 16,262,487 7,230,213 Impairment loss * (489,105) (459,251) Balance 15,773,382 6,770,962 Impairment loss * 31/12/2024 31/12/2023 Balance at the beginning of the year 459,251 315,048 Impairment during the year (49,764) 133,080 Write off during the year (1,920) (257) Disposals -- (13 465) Effect of foreign currency translation 81,538 24,845 Balance at the end of the year 489,105 459,251 Financial Statemnets 162 163 11. Investment at amortised cost 31/12/2024 31/12/2023 Debt instruments-Listed 7,051,166 7,209,859 Debt instruments-Non Listed 5,499,413 4,064,121 12,550,579 11,273,980 Impairment loss (63,034) (40,120) Balance 12,487,545 11,233,860 12. Investment property Buildings Cost Balance as at 1/1/2023 169,540 Disposals for the year (20,203) Total cost as at 31/12/2023 149,337 Balance as at 1/1/2024 149,337 Disposals for the year (3,900) Total cost as at 31/12/2024 145,437 Accumulated depreciation Accumulated depreciation as at 1/1/2023 50,555 Depreciation for the year 6,545 Disposals for the year (6,464) Accumulated depreciation as at 31/12/2023 50,636 Accumulated depreciation as at 1/1/2024 50,636 Depreciation for the year 5,703 Disposals for the year (1,185) Accumulated depreciation as at 31/12/2024 55,154 Carrying amount Net carrying amount as at 31/12/2023 98,701 Net carrying amount as at 31/12/2024 90,283 Investment property net carrying amounted to EGP Thousands 90,283 as at 31 December 2024, representing the following:- • EGP Thousands 87,960 the book value of the area owned by EFG Holding Company in Nile City building, and with a fair value of EGP Thousands 616,320. • EGP Thousands 2,323 the book value of the area owned by Hermes Securities Brokerage, one of the subsidiaries, in Elharam branch and with a fair value of EGP Thousands 24,322. 10. Equity accounted investees December 31 ,2024 Company’s location Company’s asset Company’s liabilities Company’s net gain (losses) Company’s gross profit Shareholding Percentage % Shareholding value Interest in joint venture Bedaya Mortgage Finance Co Egypt 2,636,704 2,381,476 3,550 43,861 33.34 90,478 EFG-EV Fintech Egypt 34,991 1,140 (712) 1,213 50 19,511 Interest in associate Kaf Life Insurance takaful Egypt 511,682 332,023 7,830 38,904 37.5 115,655 Zahraa Elmaadi Company * Egypt 2,668,051 798,153 343,780 451,075 20.33 380,225 Prime for invest ment fund man agement * Egypt 3,042 209 534 354 20 503 Paytech 3100 BV Netherlands 486,877 1,404 (563) -- 40.66 197,860 Falcon Partners GP Limited UAE 2,195 1,435 (1,585) -- 25 635 Balance 804,867 December 31 ,2023 Company’s location Company’s asset Company’s liabilities Company’s net gain (losses) Company’s gross profit Shareholding Percentage % Shareholding value Interest in joint venture Bedaya Mortgage Finance Co Egypt 1,602,404 1,374,318 9,854 41,946 33.34 81,069 EFG-EV Fintech Egypt 55,433 4,773 13,086 21,347 50 23,418 Paytabs Egypt 22,522 22,781 (11,255) 7,788 51 48,852 API Capital Man agement Limited UAE 21,376 6,021 (6,563) 775 50 9,139 Interest in associate Kaf Life Insurance takaful Egypt 370,168 256,611 (28,391) 27,957 37.5 49,648 Zahraa Elmaadi Company * Egypt 2,531,888 871,390 219,016 311,089 20.33 337,646 Prime for invest ment fund man agement * Egypt 2,637 159 297 21 20 512 Enmaa Financial Leasing company * Egypt 1,701,904 1,394,764 56,155 108,973 31.43 96,530 Paytech 3100 BV Netherlands 486,877 1,112 (1,112) -- 40.66 197,979 Balance 844,793 * Equity accounted investees acquired through Bank NXT-(previously)Arab Investment Bank (aiBank). Financial Statemnets 164 165 14. Goodwill and other intangible assets Goodwill Customer Relationships Retailer list Licenses Brand Name Software Total Cost Balance as at 1 January 2023, as reported 1,777,559 127,111 -- 21,926 -- 270,334 2,196,930 Effect of purchase price allocation on subsidiary (495,846) 366,644 53,825 -- 34,704 72,418 31,745 Restated Balance as at 1 January 2023 1,281,713 493,755 53,825 21,926 34,704 342,752 2,228,675 Additions -- -- -- -- -- 20,665 20,665 Acquisition 312,826 18,483 -- -- -- 153,766 485,075 Disposals -- -- -- -- -- (613) (613) Adjustments -- (28,995) -- -- -- -- (28,995) Foreign currency translation differences -- 31,491 -- 2,352 -- 10,450 44,293 Total cost as at 31 December 2023 1,594,539 514,734 53,825 24,278 34,704 527,020 2,749,100 Balance as at 1 January 2024, as reported 1,741,691 496,251 53,825 24,278 34,704 390,543 2,741,292 Effect of purchase price allocation on subsidiary (147,152) 18,483 -- -- -- 136,477 7,808 Restated Balance as at 1 January 2024 1,594,539 514,734 53,825 24,278 34,704 527,020 2,749,100 Additions -- -- -- -- -- 295,505 295,505 Disposals -- -- -- (652) -- (1,595) (2,247) Adjustments -- 28,995 -- -- -- -- 28,995 Foreign currency translation differences -- 103,133 -- 13,221 -- 42,544 158,898 Total cost as at 31 December 2024 1,594,539 646,862 53,825 36,847 34,704 863,474 3,230,251 Accumulated amortisation and impairment Balance as at 1 January 2023, as reported 25,665 62,564 -- 7,523 -- 146,429 242,181 Effect of purchase price allocation on subsidiary -- 30,554 4,485 -- -- 4,224 39,263 Restated Balance as at 1 January 2023 25,665 93,118 4,485 7,523 -- 150,653 281,444 Amortisation -- 70,166 7,689 2,461 -- 51,112 131,428 Impairment 12,002 -- -- -- -- -- 12,002 Acquisition -- 660 -- -- -- 10,294 10,954 Disposals -- -- -- -- -- (296) (296) Adjustments -- (28,995) -- -- -- -- (28,995) Foreign currency translation difference -- 15,575 -- 265 -- 8,000 23,840 Total accumulated amortisation and Impairment as at 31 December 2023 37,667 150,524 12,174 10,249 -- 219,763 430,377 Balance as at 1 January 2024, as reported 37,667 149,864 12,174 10,249 -- 215,725 425,679 Effect of purchase price allocation on subsidiary -- 660 -- -- -- 4,038 4,698 Restated Balance as at 1 January 2024 37,667 150,524 12,174 10,249 -- 219,763 430,377 Amortisation -- 81,399 7,689 3,642 -- 86,885 179,615 Disposals -- -- -- (652) -- (935) (1,587) Adjustments -- 28,995 -- -- -- -- 28,995 Foreign currency translation difference -- 65,467 -- 3,520 -- 32,944 101,931 Total accumulated amortisation and Impairment as at 31 December 2024 37,667 326,385 19,863 16,759 -- 338,657 739,331 Carrying amount Carrying amount as at 31 December 2023 1,556,872 364,210 41,651 14,029 34,704 307,257 2,318,723 Carrying amount as at 31 December 2024 1,556,872 320,477 33,962 20,088 34,704 524,817 2,490,920 13. Property, plant, and equipment Land & Buildings Leasehold improvements Office furniture, equipment & electrical appliances Computer Equipment Vehicles Right of use assets Total Cost Balance as at 1/1/2023 1,220,153 282,242 521,280 690,849 53,351 440,942 3,208,817 Additions 173,789 159,262 164,284 153,743 32,258 193,595 876,931 Disposals (46) (8,102) (61,994) (36,654) (7,162) (27,722) (141,680) Adjustments -- -- 309 (309) -- 2,306 2,306 Acquisition from subsidiaries -- -- 376 844 -- -- 1,220 Foreign currency translation differences 3 (67) 53,252 36,753 3,022 50,778 143,741 Total cost as at 31/12/2023 1,393,899 433,335 677,507 845,226 81,469 659,899 4,091,335 Balance as at 1/1/2024 1,393,899 433,335 677,507 845,226 81,469 659,899 4,091,335 Additions 113,296 76,168 208,674 364,148 153,043 252,148 1,167,477 Disposals (1,137) (83) (6,497) (31,571) (19,654) (28,799) (87,741) Foreign currency translation differences 272 12,448 162,620 128,551 13,200 233,636 550,727 Total cost as at 31/12/2024 1,506,330 521,868 1,042,304 1,306,354 228,058 1,116,884 5,721,798 Accumulated depreciation Accumulated depreciation as at 1/1/2023 204,595 229,323 374,819 492,495 36,205 235,337 1,572,774 Depreciation 45,269 33,573 53,962 99,619 9,473 96,817 338,713 Disposals’ accumulated depreciation (46) (6,497) (46,293) (32,297) (4,728) (16,926) (106,787) Adjustments -- -- -- 4 -- (12,248) (12,244) Acquisition from subsidiaries -- -- 365 733 -- -- 1,098 Foreign currency translation differences 1 (68) 50,158 32,736 1,758 35,407 119,992 Accumulated depreciation as at 31/12/2023 249,819 256,331 433,011 593,290 42,708 338,387 1,913,546 Accumulated depreciation as at 1/1/2024 249,819 256,331 433,011 593,290 42,708 338,387 1,913,546 Depreciation 51,685 45,096 66,570 126,971 25,353 132,604 448,279 Disposals’ accumulated depreciation (893) (83) (4,362) (27,373) (12,205) (24,783) (69,699) Foreign currency translation differences 168 5,546 157,443 116,196 7,654 167,035 454,042 Accumulated depreciation as at 31/12/2024 300,779 306,890 652,662 809,084 63,510 613,243 2,746,168 Carrying amount Carrying amount as at 31/12/2023 1,144,080 177,004 244,496 251,936 38,761 321,512 2,177,789 Carrying amount as at 31/12/2024 1,205,551 214,978 389,642 497,270 164,548 503,641 2,975,630 Financial Statemnets 166 167 15. Other assets 31/12/2024 31/12/2023 Deposits with others (15-1) 382,767 403,361 Down payments to suppliers 1,448,844 1,176,157 Prepaid expenses 486,118 259,999 Employees’ advances 218,347 135,886 Accrued revenues 2,470,694 1,796,384 Taxes withheld by others 74,310 41,232 Payments for investments 5 9,259 Settlement guarantee fund 38,536 19,869 Due from Egypt Gulf Bank- Tanmeyah Clients 15,133 8,487 Receivables-sale of investments 1,364 177,803 Due from custodian 63,593 123,146 Due from Payment Channels 127,492 90,209 Securitization surplus 491,978 266,865 Sundry debtors 398,039 209,781 Assets acquired as settlement of debts 442,567 330,652 Total 6,659,787 5,049,090 Deduct: Impairment loss (76,451) (27,187) Balance 6,583,336 5,021,903 15.1. Deposits with others include an amount of EGP Thousands 22,163 in the name of the subsidiaries, EFG-Hermes International Securities Brokerage and Hermes Securities Brokerage Company which represents blocked deposits for same day trading operations settlement takes place in the Egyptian Stock Exchange. Both companies are not entitled to use these amounts without prior approval from Misr Clearance Company. -Deposits with others include an amount of EGP Thousands 265,792 in the name of the subsidiary, EFG- Hermes KSA. This represents margin deposited with the General Clearing Member (GCM) as required by the Clearing House (Muqassa). 16. Due to banks and financial institutions 31/12/2024 31/12/2023 Financial institutions 2,923,742 31,750 Bank overdraft * 19,297,065 11,347,885 Deposits** 10,577 2,378,769 Due to Central Bank** -- 5,225 Current account** 531,532 292,100 Balance 22,762,916 14,055,729 * Banks overdraft include the credit facilities granted from one of the banks which represents the following: • A pledged governmental bond contract to secure a credit facility amounted to EGP Thousands 1,065,632. ** Relate to Bank NXT-(previously) Arab Investment Bank (aiBank) 14.1. Goodwill is relating to the acquisition of the following subsidiaries: 31/12/2024 31/12/2023 EFG- Hermes IFA Financial Brokerage Company Kuwait – (KSC) 179,148 179,148 Tanmeyah Micro Enterprise Services S.A.E 365,399 365,399 Frontier Investment Management Partners LTD 325,801 325,801 Fatura Netherlands B.V 373,698 373,698 Paynas BV 312,826 312,826 Balance 1,556,872 1,556,872 * Acquisition of Paynas B.V In September 2023 U Consumer Finance (one of subsidiaries) acquired 94.96% of Paynas BV shares with an acquisition cost amounting to EGP Thousands 397,894. In 2024 the group has performed the Purchase Price Allocation (PPA) study to determine the fair value of the identifiable asset and liabilities according to the Egyptian Accounting Standards. The following represents the assets and liabilities on the acquisition date: Description Assets and liabilities acquired on the date of acquisition PPA Effect Fair value of assets and liabilities acquired on the date of acquisition Loans and facilities to customer 306,756 -- 306,756 Accounts receivables 34,944 -- 34,944 Investments at fair value through profit and loss 1,539 -- 1,539 Property, plant and equipment 122 -- 122 Intangible assets 11,033 154,960 165,993 Deferred tax assets 522 -- 522 Other assets 811 -- 811 Due to related parties (418,065) -- (418,065) Other liabilities (2,845) -- (2,845) Net assets/ (liabilities) acquired (65,183) -- 89,777 Non-controlling interest (3,099) 7,808 4,709 Company's share in the acquired net assets (liabilities) (62,084) -- 85,068 Paid in acquisition 397,894 -- 397,894 Goodwill 459,978 -- 312,826 Financial Statemnets 168 169 20. Other liabilities 31/12/2024 31/12/2023 Accrued expenses 8,010,373 3,569,723 Dividends payable (prior years) 154,092 296,818 Deferred revenues 145,647 76,617 Suppliers 725,083 444,780 Clients’ coupons - custody activity 204,017 276,902 Tax authority 135,312 89,275 Social Insurance Association 16,981 16,673 Payables- purchase of investments -- 157,359 Medical takaful insurance tax 51,462 26,915 Deposits due to others –finance lease contracts 10,296 14,182 Pre collected Installments 601,304 494,994 Sundry creditors 425,972 265,069 Lease liabilities (20-1) 560,583 419,138 Employees’ benefits obligations (20-2) 89,516 68,459 Balance 11,130,638 6,216,904 20.1. Lease Liabilities 31/12/2024 31/12/2023 Balance at the beginning of the year 419,140 412,473 Additions 246,312 29,462 Disposals (9,481) -- Accretion of interest 70,179 67,494 Paid during the year (245,847) (191,905) Effect of foreign currency translation 80,280 101,614 Balance at the end of the year 560,583 419,138 Current 154,769 169,639 Non-current 405,814 249,499 Balance 560,583 419,138 20.2. Employees’ benefits obligations A. Movements in the net liabilities recognized in the statement of financial position and their components are as follows: 31/12/2024 31/12/2023 Balance at the beginning of the year 68,459 50,812 Charge for the year 15,477 10,239 Actuarial gain on re-measurement of employees’ benefit obligations (2,179) (3,512) Paid during the year (37,828) (1,916) Foreign Currency Translation Difference 45,587 12,836 Balance at the end of the year 89,516 68,459 B. Amounts recognized included in statement of profit or loss: 31/12/2024 31/12/2023 Current service cost 10,623 6,973 Interests on defined benefit obligation 4,854 3,266 Balance 15,477 10,239 17. Customer deposits 31/12/2024 31/12/2023 Call deposits 27,739,336 20,261,265 Term deposits 28,332,022 20,316,818 Saving and deposit certificates 8,181,929 8,354,273 Saving deposits 1,892,984 968,657 Other deposits 1,062,314 733,194 Balance 67,208,585 50,634,207 Corporate deposits 45,754,381 35,505,821 Individual deposits 21,454,204 15,128,386 Balance 67,208,585 50,634,207 Current 60,801,046 45,494,018 Non-current 6,407,539 5,140,189 Balance 67,208,585 50,634,207 18. Accounts payable - customers credit balance at fair value through profit and loss This amount represents payable to customers against the structured notes issued by one of group companies. These financial liabilities are linked to structured notes purchased by the Company. These structured notes are linked mainly to Treasury Bills and quoted equity securities. 19. Issued bonds • During October 2024, EFG Corp-Solutions (a subsidiary - 100%) issued the second issuance (third for the company) of the first program (multi-tranche issuance program of tradable, non-convertible to shares, registered bonds for the three year with a value of EGP 3 billion) with a value of EGP 400 million for a five years. • During June 2024 EFG Corp-Solutions (a subsidiary - 100%) issued the second issuance of unsecured short-term bonds with a value of EGP 433 million for one year. The bonds are tradable and non-convertible to shares for a period of 12 months. The bonds proceeds will be used to finance different company activities and meet its financial obligations. • During April 2024 Hermes Securities Brokerage (a subsidiary - 100%) issued short-term bonds with a value of EGP 600 million (Second issuance of second program) that are tradable and non-convertible to shares for a period of 12 months at a par value of EGP 100 (one hundred Egyptian pounds only) for a bond to be paid at the end of the period with a variable annual rate based on the net average rate of return on treasury bills in Egyptian pounds (364 days) after deducting the tax in addition to a margin (2%), note that the first coupon equal 22.72% will be paid at the end after six months of the issuance and the second coupon will be paid at the end of the issuance the bonds will be fully consumed at the end of the issuance period and the bonds non-expedited payment, the bonds proceeds will be used to finance different company activities and meet its financial obligations. Financial Statemnets 170 171 23. Loans and borrowings The borrower Credit Limit Contract date Maturity date 2024/12/31 2023/12/31 EFG Corp-Solutions * 900 million 27/05/2024 27/05/2031 618,713 115,329 ,, 5 million 27/02/2020 27/02/2027 5,015 14,271 ,, 485 million 03/12/2024 03/12/2031 440,681 587,119 ,, 466 million 30/03/2023 31/03/2030 456,449 585,189 ,, 2 billion 21/04/2024 21/04/2031 347,529 541,266 ,, 548 million 23/04/2024 28/05/2033 548,415 568,459 ,, 18.5 million 29/08/2022 28/08/2029 18,494 13,532 ,, 152.5 million 15/01/2023 13/07/2027 -- 83,943 ,, 393 million 01/07/2024 21/08/2025 318,665 417,964 ,, 10.5 million 25/06/2023 25/06/2030 7,033 44,516 ,, 400 million 12/12/2023 12/12/2028 92,259 170,582 ,, -- 06/09/2023 31/08/2024 -- 27,622 ,, 175 million 20/10/2024 20/10/2031 174,830 226,813 ,, 610 million 19/10/2017 03/03/2027 609,960 492,800 ,, 130 million 21/12/2023 12/12/2030 124,342 147,703 ,, 3.3 million 07/02/2018 07/02/2025 3,349 27,591 ,, 6.1 million 19/05/2020 19/05/2027 6,161 59,325 ,, 600 million 09/06/2024 15/08/2028 488,264 36,747 ,, 606.6 million 20/10/2024 20/10/2031 494,321 579,079 ,, 13 million 26/11/2020 26/11/2027 13,006 54,757 ,, 71 million 25/06/2024 11/07/2030 70,689 76,464 ,, 200 million 08/10/2024 08/10/2029 41,396 -- EFG – Hermes Pakistan Limited 56,5 million 27/10/2021 10/05/2026 -- 41,085 Tanmeyah Micro Enterprise Services S.A.E 220 million 30/10/2024 30/10/2025 204,768 100,000 ,, 200 million 20/10/2024 18/05/2025 166,805 188,956 ,, 200 million 05/03/2024 04/03/2026 143,740 -- ,, 250 million 28/07/2024 28/07/2025 238,154 -- U Consumer finance 600 million 15/02/2024 15/02/2026 598,438 349,647 ,, 300 million 09/05/2022 15/02/2026 253,876 135,817 ,, 325 million 07/06/2024 30/09/2027 324,264 221,579 ,, 300 million 30/01/2023 28/02/2026 298,630 128,066 ,, 50 million 02/02/2023 02/11/2026 49,394 21,661 ,, 600 million 02/05/2023 02/05/2026 600,000 261,514 ,, 400 million 15/8/2023 15/08/2026 392,361 342,314 ,, 200 million 30/09/2024 01/04/2027 187,323 98,388 ,, 340 million 13/07/2024 13/07/2027 338,530 340,356 ,, 950 million 13/06/2024 13/06/2026 950,871 600,636 ,, 500 million 15/07/2024 15/07/2026 473,800 -- ,, 100 million 03/10/2024 03/09/2026 110,000 -- ,, 500 million 12/01/2024 12/01/2026 499,967 -- EFG Finance Holding 120 million 20/10/2024 20/10/2028 105,887 120,000 ,, 200 million 12/12/2023 12/12/2030 166,001 183,129 ,, 400 million 02/03/2023 31/03/2028 380,538 -- EFG For SME 150 million 29/07/2024 28/07/2025 5,475 -- ,, 150 million 18/11/2024 15/09/2025 1,501 -- Bank NXT 120 million 18/08/2014 01/02/2039 119,673 126,684 Balance 11,489,567 8,130,903 Current 6,160,149 3,636,529 Non-current 5,329,418 4,494,374 Balance 11,489,567 8,130,903 * EFG Corp Solutions (wholly owned subsidiary), is committed to settle the credit granted by waiving the rental value of the finance lease contracts to the banks within the credit amount. 21. Deferred tax assets (liabilities) Balance at 1/1/2024 Recognized in profit or loss Recognized in equity Foreign currency differences Net Deferred tax assets Deferred tax liabilities Fixed assets depreciation (145,513) (58,802) -- 570 (203,745) -- (203,745) Claims provision 40,997 23,915 -- 607 65,519 65,519 -- Impairment loss on assets 1,417 799 -- 51 2,267 2,267 -- Prior year losses carried forward 68,998 37,725 -- 44,669 151,392 151,392 -- Investment at fair value (745,611) (655,723) (102,709) -- (1,504,043) -- (1,504,043) Foreign currency translation differences (74,260) (261,438) -- (1,109) (336,807) -- (336,807) Revaluation of investment property 1,867 -- -- -- 1,867 1,867 -- Investment in Associates (11,592) 849 -- -- (10,743) -- (10,743) ESOP deferred 13,132 (265) -- -- 12,867 12,867 -- Securitization Sur plus Revaluation (10,460) (17,886) -- -- (28,346) -- (28,346) (861,025) (930,826) (102,709) 44,788 (1,849,772) 233,912 (2,083,684) 22. Provisions 31/12/2023 31/12/2023 Claims provision (22-1) 928,441 532,632 Commercial Bank (Bank NXT) contingent liabilities (22-1) 142,187 66,278 Severance pay provision (22-1) 801,766 467,663 Financial guarantee for contingent liabilities (22-1) 40,883 32,698 Balance 1,913,277 1,099,271 22.1 Claims provision Severance Pay provision* Financial guarantee for contingent liabilities Commercial bank contingent liabilities Total Balance at the beginning of the year 532,632 467,663 32,698 66,278 1,099,271 Formed during the year 588,952 75,927 40,678 74,029 779,586 Foreign currency differences 31,954 309,704 -- 1,880 343,538 Amounts used during the year (184,085) (47,310) -- -- (231,395) Bad Debt -- -- (32,493) -- (32,493) No longer needed (41,012) (4,218) -- -- (45,230) Balance at the end of the year 928,441 801,766 40,883 142,187 1,913,277 * Related to group entities outside Egypt. Financial Statemnets 172 173 26. Contingent liabilities The holding company guarantees its subsidiary EFG- Hermes UAE LLC against the Letters of Guarantee issued from banks amounting to: 31/12/2024 31/12/2023 AED 93,670 93,670 Equivalent to EGP Thousands 1,296,243 785,517 Group off-financial position items: - Assets under management 269,559,987 159,430,997 - Securitization and Sukuk transactions The group has entered into some securitization and Sukuk transactions, the assets and liabilities related to those transactions do not qualify for the recognition criteria under Egyptian accounting standards, accordingly the group has not recognized those assets or liabilities. The assets and liabilities related to those transactions are represented in : 31/12/2024 Client portfolios related to securitization transactions 12,803,298 Balances with custodians 1,177,445 Land and Buildings related to Sukuk transactions 600,000 Total Assets 14,580,743 Bonds 10,342,453 Sukuk 420,000 Total liabilities 10,762,453 Bank NXT-Arab Investment Bank (previously) Contingent liabilities are as follows: A. Capital commitments Financial investments The value of commitments related to financial investments for which payments was not requested until the date of the financial position as at 31 December 2024: Contribution amount USD Thousands Amount paid USD Thousands Residual amount USD Thousands African Export -Import Bank 5,336 2,294 3,042 Contribution amount EGP Thousands Amount paid EGP Thousands Residual amount EGP Thousands Long-Term Assets 1,097,003 784,425 312,578 24. Share capital • The company’s authorized capital amounts EGP 6 billion and issued capital amounts EGP Thousands 3,843,091 distributed on 768,618,223 shares of par value EGP 5 per share which is fully paid. • The company’s General Assembly approved in its session held on May 20, 2021 to increase the company’s issued capital from EGP Thousands 3,843,091 to EGP Thousands 4,611,709 distributed on 922,341,868 shares with an increase amounting to EGP Thousands 768,618 by issuing 153,723,645 shares with par value EGP 5 through the issuance of one free share for every five shares. This increase is transferred from the company retained earnings that presented in December 31, 2020 financial statements. The required procedures had been taken to register the increase in the Commercial Register. • On September 28, 2021, the Company’s General Assembly approved the increase in issued capital from EGP Thousands 4,611,709 to EGP Thousands 4,865,353 representing an increase of EGP Thousands 253,644 and distributed on 50,728,803 shares having a par value of EGP 5 per share, The issuance of the capital increase shares were financed from the share premium reserve for the purpose of the Remuneration & Incentive Program of the Employees, Managers & Executive Board Members of the Company and its subsidiaries. The commercial register was updated and the issued shares were allocated under the Remuneration & Incentive Program of the Employees of the Company, and the Beneficiary of the program will be entitled to attend the Ordinary and Extraordinary General Shareholders of the Company and to vote on its resolutions upon the transfer of ownership of the Granted Shares to the Beneficiary. • The company’s General Assembly approved in its session held on May 19, 2022 to increase the company’s issued capital from EGP Thousands 4,865,353 to EGP Thousands 5,838,424 distributed on 1,167,684,806 shares with an increase amounting to EGP Thousands 973,071 by issuing 194,614,135 shares with par value EGP 5 through the issuance of one free share for every five shares. This increase is transferred from the company retained earnings that presented in December 31, 2021 financial statements. The required procedures had been taken to register the increase in the Commercial Register. • The company’s General Assembly approved in its session held on May 24, 2023 to increase the company’s authorized capital from EGP 6 billion to EGP 30 billion and increase the company’s issued capital from EGP Thousands 5,838,424 to EGP Thousands 7,298,030 distributed on 1,459,606,008 shares with an increase amounting to EGP Thousands 1,459,606 distributed on 291,921,202 shares with par value EGP 5 through the issuance of one free share for every four shares. This increase is transferred from the company retained earnings that presented in December 31, 2022 financial statements. The required procedures had been taken to register the increase in the Commercial Register. 24.1. Treasury shares The company’s board of directors approved in its session held on May 22,2024 to purchase a number of 25 million shares of the company’s shares and the company has purchased a number of 23,713,000 shares from Egyptian stock exchange market at cost of EGP thousand 399,975. 25. Non - controlling interests 31/12/2024 31/12/2023 Share capital 2,810,215 2,628,555 Additional paid-in capital 156,282 156,282 Legal reserve 83,971 52,195 Other reserves 963,702 584,207 Retained gain (losses) 217,853 (10,765) Profit for the year 1,077,116 672,001 Balance 5,309,139 4,082,475 Financial Statemnets 174 175 31. Assets held for sale The group reclassified the value of its direct contribution to the capital of Enmaa Finance Company with value of 92,596 thousand pounds, EFG Hermes Pakistan with value of 3,542 thousand pounds and Paytabs with value of 10,166 thousand pounds to the item of assets held for sale. 32. Cash and cash equivalents For the purpose of preparing the statement of cash flows, cash and cash equivalents are represented in the following : 31/12/2024 31/12/2023 Cash and due from banks 42,804,163 28,207,705 Bank overdraft (19,297,065) (11,347,885) Treasury bills less than 90 days 1,034,878 3,435,942 Effect of exchange rate -- 5,526,122 Cash and cash equivalents 24,541,976 25,821,884 33. General administrative expenses For the year ended 31/12/2024 31/12/2023 Wages, salaries and similar items* 10,398,721 6,065,836 Consultancy 835,706 549,330 Travel , accommodation and transportation 124,829 83,874 Leased line and communication 561,565 351,313 Rent and utilities expenses 166,356 133,546 Other expenses 2,382,365 1,435,190 Total 14,469,542 8,619,089 * Share-based payments. The Company introduced an Employees Share Ownership plan (ESOP) in accordance with the shareholder’s approval at the extraordinary general assembly meeting by issuing Free shares representing 5.5% of the issued capital of the Company shall be granted to employees, managers and executive board members of the Company and its subsidiaries. The duration of this program is five years starting as of 1 January 2021 till 31 December 2025, the vesting period is 3-4 years starting from 1 January 2021 till 31 December 2024. The beneficiary entitled to shares granted to 4 equal installments. The equity instruments for share-based payment are recognized at fair value on the grant date and are recorded in the income statement with a corresponding increase in equity. The value of expenses charged to the income statement during the year amounted EGP Thousands 73,938. Equity instruments during the year represents the following: For the year ended For the year ended 31/12/2024 No. of Shares 31/12/2023 No. of Shares Total at the beginning of the year 68,057,297 56,204,722 Free shares distributed during the year -- 13,657,274 Forfeited shares during the year (3,024,810) (1,804,699) Exercised during the year (17,014,321) -- Total at the end of the year 48,018,166 68,057,297 B. Commitments on loans, guarantees and facilities The bank’s commitments on loans and facilities are as follows: 31 December 2024 EGP 31 December 2023 EGP Loan commitments 14,182,263 933,981 Letters of guarantees 2,282,896 2,798,308 Letters of credit (Export and Import) 938,697 13,816 Acceptances of supplier facilities 356,038 649,754 Balance 17,759,894 4,395,859 27. Other revenues Other revenues includes rental income, and non-recurring income. 28. Impairment loss on assets For the year ended 31/12/2024 31/12/2023 Accounts receivables (49,764) 133,080 Loans and facilities to customers 683,023 851,215 Cash and cash equivalents 5,977 265 Other Debit Accounts 58,424 45,911 Financial investments 75,342 (138) Goodwill and intangible assets -- 12,002 Total 773,002 1,042,335 29. Income tax expense For the year ended 31/12/2024 31/12/2023 Current income tax 1,439,591 948,213 Deferred tax 930,826 145,784 Total 2,370,417 1,093,997 30. Current tax Liability For the year ended 31/12/2024 31/12/2023 Balance at the beginning of year 638,583 473,873 Charge for the year 1,439,591 948,213 Withholding tax receivable (8,406) (12,454) Income tax paid (1,052,558) (772,664) Effect of foreign currency translation 3,495 1,615 Balance at the end of year 1,020,705 638,583 Financial Statemnets 176 177 For the year ended December 31, 2023 Holding & Treasury Brokerage Asset Management Investment Banking Private Equity Finance Holding Leasing Micro Finance Consumer Finance Factoring Commercial bank (Bank NXT) Adjustments Total Interest income 886,840 1,004,774 5,133 42,644 26,751 6,229 1,140,559 1,491,099 868,308 385,040 7,669,036 (41,599) 13,484,814 Interest Expense (706,588) (299,302) -- (27,428) -- -- (923,705) (770,603) (727,788) (337,560) (5,129,506) 55,381 (8,867,099) Net Interest income 180,252 705,472 5,133 15,216 26,751 6,229 216,854 720,496 140,520 47,480 2,539,530 13,782 4,617,715 Fee and commis sion income (2) 2,706,287 1,260,115 718,976 226,211 1,131 47,054 573,158 547,637 65,582 1,015,823 (53) 7,161,919 Fees and commis sion expense (6,554) (434,997) (141,402) -- (9,567) (661) (90) (15,607) (1,980) (51) (108,700) -- (719,609) Net fees & com mission income (6,556) 2,271,290 1,118,713 718,976 216,644 470 46,964 557,551 545,657 65,531 907,123 (53) 6,442,310 Securities gain 5,707 14,528 -- -- 149 58 -- -- 2,350 -- 148,879 -- 171,671 Changes in the investments at fair value through profit and loss 1,462,793 2,122 (104,769) -- 264 51,480 -- -- -- -- -- -- 1,411,890 Dividend income 17,521 50,465 -- -- -- -- -- -- -- -- 13,491 -- 81,477 Other Revenues 197,497 20,917 (80) 207 6,490 -- 47,793 22,598 486,124 -- 24,187 (65,006) 740,727 Foreign currencies exchange differ ences 1,202,906 6,551 -- -- -- 418 50,977 (4,262) (20,891) 6,622 (87,474) -- 1,154,847 Share of profit from equity accounted investees -- -- -- -- (4,166) (12,694) -- -- -- -- 61,908 -- 45,048 Total revenues 3,060,120 3,071,345 1,018,997 734,399 246,132 45,961 362,588 1,296,383 1,153,760 119,633 3,607,644 (51,277) 14,665,685 General administra tive expenses (1,394,413) (2,446,343) (649,094) (807,003) (244,239) (98,350) (142,333) (998,503) (721,888) (42,766) (1,222,252) 148,095 (8,619,089) Financial guarantee provision -- -- -- -- -- -- -- (38,055) -- -- -- -- (38,055) Impairment loss on assets (8,788) (122,880) (24,243) -- (11,518) (627) (9,592) (110,425) (84,859) (43,383) (626,020) -- (1,042,335) Provisions (32,521) (40,777) 46 (3,561) (1,185) (1,712) -- (24,261) (3,438) -- (117,405) -- (224,814) Depreciation and amortisation (138,773) (38,445) (9,840) (342) (3,912) (7,333) (400) (69,172) (29,373) (1,857) (85,119) (96,818) (481,384) Profit before income tax 1,485,625 422,900 335,866 (76,507) (14,722) (62,061) 210,263 55,967 314,202 31,627 1,556,848 -- 4,260,008 Income tax expense (243,807) (225,501) (8,449) (16,048) (1,645) (1,314) (56,037) (49,697) (73,965) (7,263) (410,271) -- (1,093,997) Profit for year 1,241,818 197,399 327,417 (92,555) (16,367) (63,375) 154,226 6,270 240,237 24,364 1,146,577 -- 3,166,011 Total assets 17,458,594 19,568,959 1,574,356 419,557 411,063 354,651 6,241,397 5,686,611 5,874,362 2,366,864 61,954,670 -- 121,911,084 Total liabilities 6,528,678 15,223,112 511,463 378,051 295,123 44,684 5,929,381 4,330,108 4,784,171 1,621,261 54,866,013 -- 94,512,045 34. Operating segment (a) Basis for operating segment Segment information is presented in respect of the Group’s business segments. The primary format, business segment, is based on the Group’s management and internal reporting structure. Inter-segment pricing is determined on an arm’s length basis. Segment results, assets and liabilities include items directly attributable to a segment. The revenue & expense and assets & liabilities analyses in the table below are based on the type of business activities and services that are distinguishable component. For the year ended December 31, 2024 Holding & Treasury Brokerage Asset Management Investment Banking Private Equity Finance Holding Leasing Micro Finance Consumer Finance Factoring SME Lending Commercial bank (Bank NXT) Adjustments Total Interest income 1,489,194 1,924,393 11,993 100,000 17,605 19,654 1,955,980 2,812,568 1,363,055 654,254 15,671 12,369,651 (414,376) 22,319,642 Interest Expense (1,410,188) (585,338) -- (64,079) -- (46,079) (1,561,820) (1,464,730) (1,460,603) (622,892) (118) (8,458,569) 364,158 (15,310,258) Net Interest income 79,006 1,339,055 11,993 35,921 17,605 (26,425) 394,160 1,347,838 (97,548) 31,362 15,553 3,911,082 (50,218) 7,009,384 Fee and commission income -- 4,360,330 1,705,231 2,310,953 287,777 -- 118,597 539,150 1,095,694 96,250 522 934,176 3,706 11,452,386 Fees and commission expense (6,044) (799,920) (210,876) 14 (431) (71) (41) (55,397) (30,177) (4) (38) (254,116) -- (1,357,101) Net fees & commission income (6,044) 3,560,410 1,494,355 2,310,967 287,346 (71) 118,556 483,753 1,065,517 96,246 484 680,060 3,706 10,095,285 Securities Loss (207,191) 18,212 1,098 -- 23,853 (89) -- -- -- -- (117) 106,878 -- (57,356) Changes in the invest ments at fair value through profit and loss 2,843,111 (3,650) 5,804 -- (333) (1,576) -- -- 742 -- -- -- -- 2,844,098 Dividend income 22,392 31,831 -- -- (36) -- -- -- -- -- -- 31,811 -- 85,998 Other Revenues 149,005 97,959 7,423 4,652 17,501 -- 128,206 104,332 846,462 -- -- 85,559 (17,837) 1,423,262 Foreign currencies ex change differences 2,540,657 11,438 -- -- -- (13,658) 145,753 1,525 96,086 37,785 (179) 88,299 -- 2,907,706 Share of gain from equity accounted investees -- -- -- -- (8,372) 2,403 -- -- -- -- -- 54,822 -- 48,853 Total revenues 5,420,936 5,055,255 1,520,673 2,351,540 337,564 (39,416) 786,675 1,937,448 1,911,259 165,393 15,741 4,958,511 (64,349) 24,357,230 General administrative expenses (2,994,815) (4,107,710) (1,062,591) (1,631,920) (412,469) (101,027) (166,911) (1,309,520) (1,087,961) (50,296) (21,991) (1,720,592) 198,261 (14,469,542) Financial guarantee provision -- -- -- -- -- -- -- (40,678) -- -- -- -- -- (40,678) Impairment loss on assets 61,744 81,337 (2,142) (8,644) (37,328) (90,874) (81,225) (144,479) (171,822) (60,281) (1,028) (316,953) (1,307) (773,002) Provisions (347,436) (81,591) (4,198) (86) (2,327) -- -- (149,590) (8,000) -- -- (145,680) -- (738,908) Depreciation and amor tisation (167,156) (45,343) (14,950) (507) (5,709) (39) (288) (77,882) (56,429) (609) (99) (131,981) (132,605) (633,597) Profit before income tax 1,973,273 901,948 436,792 710,383 (120,269) (231,356) 538,251 215,299 587,047 54,207 (7,377) 2,643,305 -- 7,701,503 Income tax expense (755,108) (397,593) 20,916 (54,937) 399 2,479 (118,422) (74,809) (104,619) (15,432) (170) (873,121) -- (2,370,417) Profit for the year 1,218,165 504,355 457,708 655,446 (119,870) (228,877) 419,829 140,490 482,428 38,775 (7,547) 1,770,184 -- 5,331,086 Total assets 25,335,823 45,846,393 2,246,988 1,673,334 562,549 374,288 8,738,515 6,859,121 10,562,145 4,589,069 90,752 79,999,434 -- 186,878,411 Total liabilities 11,934,391 37,861,579 829,118 1,256,836 417,810 79,717 6,749,751 5,297,004 8,423,267 4,034,120 17,761 70,609,092 -- 147,510,446 Financial Statemnets 178 179 - Consolidated income statement (As reported) 31/12/2023 Reclassification (Restated) 31/12/2023 Depreciation and amortization (476,686) (4,698) (481,384) Provisions (235,053) 10,239 (224,814) General administrative expenses (8,612,116) (6,973) (8,619,089) Interest Expense (8,863,833) (3,266) (8,867,099) Gain on selling Assets held for sale 9,797 (9,797) -- Other Revenues 730,930 9,797 740,727 Profit before tax 4,264,706 (4,698) 4,260,008 Profit for the year 3,170,709 (4,698) 3,166,011 Owners of the Company 2,498,471 (4,461) 2,494,010 Non-controlling interests 672,238 (237) 672,001 37. Earnings per share For the year ended For the year ended 31/12/2024 31/12/2023 Profit for the year 4,253,970 2,494,010 Weighted average number of shares 1,445,158 1,459,606 Earnings per share (EGP) 2.94 1.71 (b) Geographical segments • The Group operates in main geographical areas: Egypt, GCC. In presenting the geographic information, segment revenue has been based on the geographical location of operation and the segment assets were based on the geographical location of the assets. The group's operations are reported under geographical segments, reflecting their respective size of operation. • The revenue analysis in the tables below is based on the location of the operating company, which is the same as the location of the major customers and the location of the operating companies. December 31, 2024 Egypt GCC Other Total Total revenues 19,361,590 4,599,469 396,171 24,357,230 Segment assets 132,046,768 42,327,605 12,504,038 186,878,411 December 31, 2023 Egypt GCC Other Total Total revenues 11,850,532 2,674,342 140,811 14,665,685 Segment assets 98,587,804 15,237,799 8,085,481 121,911,084 35. Tax status (the holding company) • As to Income Tax, the years till 2019 the competent Tax Inspectorate inspected the parent company’s books and all the disputed points have been settled with the Internal Committee. As to years 2020/2023, have not been inspected yet. • As to Salaries Tax, the parent company’s books had been examined till 2022 and all the disputed points have been settled with the Internal committee and as to years 2023 have not been inspected yet. • As to Stamp Tax, the parent company’s books had been examined from year 1998 till 2018 and all the disputed points have been settled with the competent Tax Inspectorate and as to years 2019/2020 have been inspected and appealed on some disputed items and as to years 2021/2024 have not been inspected yet. • As to Property Tax, for Smart Village building, the company paid tax till December 31, 2024 and for Nile City’s first building, the company paid tax till December 31, 2024. 36. Corresponding figures • Certain reclassification and adjustments have been made to some comparative figures in order to confirm with the current period presentation as following: - Consolidated statement of financial position: - (As reported) 31/12/2023 Reclassification (Restated) 31/12/2023 Loans and facilities to customer 40,196,971 24,926 40,221,897 Assets held for sale 330,652 (330,652) -- Other assets 4,716,177 305,726 5,021,903 Goodwill and other intangible assets 2,315,613 3,110 2,318,723 Other liabilities 5,729,307 487,597 6,216,904 Provisions 1,167,730 (68,459) 1,099,271 Due to banks and financial institutions 14,182,413 (126,684) 14,055,729 Loans and borrowings 8,423,357 (292,454) 8,130,903 Retained earnings 8,538,917 (4,461) 8,534,456 Non-controlling interests 4,074,904 7,571 4,082,475 Financial Statemnets 180 181 Direct ownership % Indirect ownership % Mena Long-Term Value Feeder Holdings Ltd. * -- 50 Mena Long-Term Value Master Holdings Ltd. * -- 45 Mena Long-Term Value Management Ltd.* -- 45 EFG - Hermes CL Holding SAL -- 100 EFG-Hermes IB Limited 100 -- EFG Hermes Securitization 100 -- EFG Hermes-Direct Investment Fund 64 -- Tanmeyah Micro Enterprise Services S.A.E -- 94.057 EFG – Hermes Brokerage Holdings Ltd 100 -- EFG – Hermes USA 100 -- EFG Capital Partners III -- 100 Health Management Company -- 52.5 EFG – Hermes Kenya Ltd. -- 100 EFG Finance Holding 99.82 0.18 EFG - Hermes UK Limited -- 100 OLT Investment International Company (B.S.C) 99.9 -- Frontier Investment Management Partners LTD * -- 50 EFG-Hermes SP limited -- 100 U Consumer Finance- Valu (previously) -- 94.961 EFG Corp – Solutions -- 100 Beaufort Asset Managers LTD -- 100 EFG Hermes Bangladesh Limited -- 100 EFG Hermes FI Limited -- 100 EFG Securitization -- 100 EFG International Treasury Management Ltd-EFG Hermes PE Holding LLC 100 -- Etkan for Inquiry and Collection and Business Processes -- 100 RX Healthcare Management -- 52.5 FIM Partners KSA * -- 50 Egypt Education Fund GP Limited -- 80 EFG Hermes Nigeria Limited -- 100 EFG-Hermes Int. Fin Corp 100 -- FIM Partners UK Ltd -- 50 EFG Hermes Sukuk 90 10 Beaufort Holding LTD. -- 100 38. Group’s entities The parent company owns the following subsidiaries: Direct ownership % Indirect ownership % EFG Hermes International Securities Brokerage 99.87 0.09 EFG Hermes Fund Management 88.51 11.49 Hermes Portfolio and Fund Management 78.81 21.19 Hermes Securities Brokerage 97.58 2.42 Hermes Corporate Finance 99.42 0.48 EFG - Hermes Advisory Inc. 100 -- EFG- Hermes Financial Management (Egypt) Ltd. -- 100 EFG - Hermes Promoting & Underwriting 99.88 -- Bayonne Enterprises Ltd. 100 -- EFG- Hermes Fixed Income 99 1 EFG Hermes for Digital solutions -(Previously) EFG- Hermes Private Equity 96.3 3.7 EFG- Hermes Private Equity-BVI -- 100 EFG- Hermes UAE LLC. 100 -- Flemming CIIC Holding 100 -- Flemming Mansour Securities -- 99.33 Flemming CIIC Securities -- 96 Flemming CIIC Corporate Finance -- 74.92 EFG- Hermes UAE Ltd. 100 -- EFG- Hermes Holding - Lebanon 99 -- EFG- Hermes KSA 73.3 26.7 EFG- Hermes Lebanon 99 0.97 Mena Opportunities Management Limited -- 95 Mena (BVI) Holding Ltd. -- 95 EFG - Hermes Mena Securities Ltd. -- 100 Middle East North Africa Financial Investments W.L.L -- 100 EFG- Hermes Regional Investment Ltd. -- 100 Offset Holding KSC * -- 50 EFG- Hermes IFA Financial Brokerage -- 63.084 IDEAVELOPERS -- 81 EFG- Hermes CB Holding Limited -- 100 EFG- Hermes Global CB Holding Limited 100 -- Financial Statemnets 182 183 • The following table analyses financial instruments measured at fair value at the reporting date, by the level in the fair value hierarchy into which the fair value measurement is categorised. The amounts are based on the values recognised in the statement of financial position: 31 December 2024 Note no Level 1 Level 2 Level 3 Total Financial assets Mutual fund certif icates (6,9) 171,436 253,240 11,908,733 12,333,409 Equity securities (6,9) 154,670 -- 326,658 481,328 Structured notes (6) -- 7,901,466 -- 7,901,466 Treasury bills (6,9) -- 7,566,076 -- 7,566,076 Debt instruments (6,9) 7,580,613 -- -- 7,580,613 7,906,719 15,720,782 12,235,391 35,862,892 Financial Liabilities Accounts payable - customers credit balance at fair val ue through profit and loss (18) -- 7,901,466 -- 7,901,466 -- 7,901,466 -- 7,901,466 31 December 2023 Note no Level 1 Level 2 Level 3 Total Financial assets Mutual fund certificates (6,9) 43,528 129,548 7,320,630 7,493,706 Equity securities (6,9) 104,225 -- 191,214 295,439 Structured notes (6) -- 680,319 -- 680,319 Treasury bills (6,9) -- 7,285,180 -- 7,285,180 Debt instruments (6,9) 5,089,158 -- -- 5,089,158 5,236,911 8,095,047 7,511,844 20,843,802 Financial Liabilities Accounts payable - customers credit balance at fair val ue through profit and loss (18) -- 680,319 -- 680,319 -- 680,319 -- 680,319 Direct ownership % Indirect ownership % Beaufort Management LTD. -- 100 Vortex IV GP LTD. -- 100 Beaufort SLP Holding -- 100 Beaufort Private Investment Holding LTD.Bank NXT-(Previously) -- 100 Arab Investment Bank 51 -- EFG VA Holdco Limited -- 100 EFG VA Investco Limited -- 100 Lighthouse Energy GP Limited -- 100 Beaufort SLP II Limited -- 100 Lighthouse Energy GP II -- 100 Beaufort Management Spain -- 100 EFG Singapore PTE LTD -- 100 Fatura Netherlands B.V -- 94.057 Fatura L.L.C -- 94.057 ASASY FOR DIGITAL CONTENT -- 94.057 EFG Payment -- 100 FIM Partners Muscat SPC -- 50 Noutah for electronic commerce -- 94.057 EFG National Holding Limited-(Previously)VA ESOP Limited -- 100 EFG RMBV National Investco Limited -- 100 EFG IB Holdco Limited -- 100 EFG IB Investco Limited -- 100 EFG For SME Financing -- 100 Beaufort Managers SLP Limited -- 100 EFG Finance B.V -- 100 Valu for payments and Digital Solutions -- 94.961 Paynas BV -- 94.961 EFG Hermes PE Holdco Ltd -- 100 EFG Hermes IB Holding Ltd. 100 -- * The Holding Company has the power to govern the financial and operating policies of the mentioned companies then the investees Companies are classified as investments in subsidiaries. 39. Measurement of fair value \ • A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. • When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows. • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). • Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). • If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. • Valuation techniques include net present value and discounted cash flow models, comparison with similar instruments for which observable market prices exist and other valuation models. Assumptions and inputs used in valuation techniques include risk-free and benchmark interest rates, credit spreads and other premiums used in estimating discount rates, bond and equity prices, foreign currency exchange rates. Financial Statemnets 184 185 41. Financial instruments and management of related risks: The Company's financial instruments are represented in the financial assets and liabilities. Financial assets include cash balances with banks, investments and debtors while financial liabilities include loans and creditors. Notes to financial statements includes significant accounting policies applied regarding basis of recognition and measurement of the important financial instruments and related revenues and expenses by the company to minimize the consequences of such risks. Management of financial risk in the commercial bank (Bank NXT) is conduct through a separate organization from the investment bank due to regulatory rules and operational necessity. Below is a summary of the risk management frame work in both business segments. 41.1. Risk management framework in the investment bank: Risk management In the ordinary course of business, the Group is exposed to a variety of risks, the most important of which are liquidity risk, interest rate risk, currency risk, credit risk and market risk. These risks are identified, measured and monitored through various control mechanisms in order to price facilities and products on a risk adjusted basis and to prevent undue risk concentrations. The independent risk control process does not include business risks such as changes in the environment, technology and industry. They are monitored through the Group’s strategic planning process. Credit risk Credit risk is the risk of a person or an organization defaulting in the repayment of their obligations to the Group in respect of the terms and conditions of the credit facilities granted to them by the Group. The management minimizes this risk by spreading its loan portfolio overall economic sectors and by adopting appropriate procedures and controls to evaluate the quality of the credit facilities granted and the creditworthiness of the borrowers. The credit risk of connected accounts is monitored on a united basis. In addition, the effective credit appraisal procedure for examining applications for credit facilities followed by the Group, adopts as the main criteria the repayment capability and obtaining sufficient collateral. The continuous monitoring of credit accounts and the timely preventive action further minimize, to a large extent, the exposure to credit risk. 40. Classification of financial assets and financial liabilities 31 December 2024 Note no Amortised Cost FVTPL FVTOCI Financial assets Mutual fund certificates (6,9) -- 12,031,837 301,572 Equity securities (6,9) -- 179,333 301,995 Treasury bills (6,9,11) 5,476,628 -- 7,566,076 Structured notes (6) -- 7,901,466 -- Debt instruments (6,9,11) 7,010,917 3,376,038 4,204,575 Cash and cash equivalents (5) 51,540,737 -- -- Loans and facilities to customer (8) 57,928,603 -- -- Accounts receivables (7) 15,773,382 -- -- Other assets (15) 6,583,336 -- -- 144,313,603 23,488,674 12,374,218 Financial Liabilities Due to banks and financial institutions (16) 22,762,916 -- -- Customer Deposits (17) 67,208,585 -- -- Loans and borrowings (23) 11,489,567 -- -- Other Liability (20) 11,130,638 -- -- Accounts payable - customers credit balance at fair value through profit and loss (18) -- 7,901,466 -- Accounts payable - customers credit balance 20,566,943 -- -- Issued bonds (19) 1,432,665 -- -- 134,591,314 7,901,466 -- 31 December 2023 Note no Amortised Cost FVTPL FVTOCI Financial assets Mutual fund certificates (6,9) -- 7,355,442 138,264 Equity securities (6,9) -- 108,293 187,146 Treasury bills (6,9,11) 4,064,121 219,222 7,065,958 Structured notes (6) -- 680,319 -- Debt instruments (6,9,11) 7,169,739 832,915 4,256,243 Cash and cash equivalents (5) 32,252,243 -- -- Loans and facilities to customer (8) 40,221,897 -- -- Accounts receivables (7) 6,770,962 -- -- Other assets (15) 5,021,903 -- -- 95,500,865 9,196,191 11,647,611 Financial Liabilities Due to banks and financial institutions (16) 14,055,729 -- -- Customer Deposits (17) 50,634,207 -- -- Loans and borrowings (23) 8,130,903 -- -- Other Liability (20) 6,216,904 -- -- Accounts payable - customers credit bal ance at fair value through profit and loss (18) -- 680,319 -- Accounts payable - customers credit balance 11,319,690 -- -- Issued bonds (19) 749,003 -- -- 91,106,436 680,319 -- Financial Statemnets 186 187 Activity segments The following table represents the analysis of the Investment Bank’s main credit exposure at carrying value categorized by the activities practiced by the Investment bank's customers. For the year ended December 31, 2024 Commercial activity Industrial activity Financial institutions Real estate companies Governmental sector Other Activities Individuals Total 31 December 2024 Banks and Time deposits -- -- 30,598,877 -- -- -- -- 30,598,877 Loans and facilities to customers 7,885,923 982,959 521,702 6,677,525 -- 1,644,000 10,122,917 27,835,026 Accounts Receivable 756,555 -- 7,029,100 -- -- 90,572 7,897,155 15,773,382 Investment FVTPL 2,405 -- 23,343,594 -- -- 142,675 -- 23,488,674 Investment FVTOCI -- -- 1,192,446 190,004 -- 1,172 -- 1,383,622 Other assets 6,775 2,885 3,062,432 -- 3,422 376,715 353,753 3,805,982 Total 8,651,658 985,844 65,748,151 6,867,529 3,422 2,255,134 18,373,825 102,885,563 31 December 2023 Banks and Time deposits -- -- 16,298,077 -- -- -- -- 16,298,077 Loans and facilities to customers 6,024,697 827,685 2,386,319 4,339,616 -- 720,755 4,818,583 19,117,655 Accounts Receivable 17,391 -- 3,980,598 -- -- 70,280 2,702,693 6,770,962 Investment FVTPL 24,393 -- 9,093,822 -- -- 77,976 -- 9,196,191 Investment FVTOCI -- -- 2,755,497 56,528 -- 713 -- 2,812,738 Other assets 14,368 123 2,510,598 -- 3,757 171,853 4,437 2,705,136 Total 6,080,849 827,808 37,024,911 4,396,144 3,757 1,041,577 7,525,713 56,900,759 The following table provides information on the quality of financial assets subject to ECL calculation during the financial year: 31 December 2024 Account Stage 1 Stage 2 Stage 3 Total Banks and Time deposits Banks 20,694,387 -- -- 20,694,387 Time Deposit 8,840,978 1,070,551 -- 9,911,529 ECL (2,184) (4,855) -- (7,039) Net carrying amount 29,533,181 1,065,696 -- 30,598,877 Loans and facilities to customers Loans and facilitates to customers 27,074,496 876,635 642,197 28,593,328 ECL (371,414) (78,426) (308,462) (758,302) Net carrying amount 26,703,082 798,209 333,735 27,835,026 Accounts Receivable Accounts Receivable 15,759,494 54,966 448,028 16,262,488 ECL (40,583) (4,669) (443,854) (489,106) Net carrying amount 15,718,911 50,297 4,174 15,773,382 Investments FVTOCI Debt Instruments 1,035,890 -- -- 1,035,890 ECL -- -- -- -- Net carrying amount 1,035,890 -- -- 1,035,890 Other Assets Other assets 3,748,945 46,029 74,166 3,869,140 ECL (2,960) (1,573) (58,626) (63,159) Net carrying amount 3,745,985 44,456 15,540 3,805,981 31 December 2023 Account Stage 1 Stage 2 Stage 3 Total Banks and Time deposits Banks 9,949,639 -- -- 9,949,639 Time Deposit 6,349,755 -- -- 6,349,755 ECL (1,317) -- -- (1,317) Net carrying amount 16,298,077 -- -- 16,298,077 Loans and facilities to customers Loans and facilitates to customers 18,804,223 479,614 340,932 19,624,769 ECL (290,445) (22,411) (194,258) (507,114) Net carrying amount 18,513,778 457,203 146,674 19,117,655 Accounts Receivable Accounts Receivable 6,548,486 67,472 614,254 7,230,212 ECL (48,013) (4,254) (406,983) (459,250) Net carrying amount 6,500,473 63,218 207,271 6,770,962 Investments FVTOCI Debt Instruments 2,657,276 -- -- 2,657,276 ECL -- -- -- -- Net carrying amount 2,657,276 -- -- 2,657,276 Other Assets Other assets 2,694,759 2,548 30,673 2,727,980 ECL (4,755) (155) (17,933) (22,843) Net carrying amount 2,690,004 2,393 12,740 2,705,137 Financial Statemnets 188 189 The tables below summaries the Investment Bank ’s exposure to the interest rate fluctuations risk: 31 December 2024 Up to 1 month More than 1 month to 3 months More than 3 months to 1 year More than 1 year to 5 years More than 5 years Without interest Total Financial Assets Cash and cash equivalents 25,501,575 141,621 3,118,472 60 -- 1,851,008 30,612,736 Accounts Receivable 4,848,339 73,396 5,344,520 -- -- 5,507,127 15,773,382 Loans and facilities to customers 825,058 2,249,797 8,113,530 15,549,892 406,185 690,564 27,835,026 Financial Investments at fair value through other comprehensive income -- -- -- 1,040,605 60,638 282,379 1,383,622 Financial Investments at Fair value through profit or loss 114,900 679,492 8,438,532 704,043 1,488,975 12,062,732 23,488,674 Financial Investments in associates -- -- -- -- -- 424,139 424,139 Other Assets 221,137 -- -- 182,536 -- 3,402,309 3,805,982 Total financial assets at 31 December 2024 31,511,009 3,144,306 25,015,054 17,477,136 1,955,798 24,220,258 103,323,561 Up to 1 month More than 1 month to 3 months More than 3 months to 1 year More than 1 year to 5 years More than 5 years Without interest Total Financial liabilities Due to banks and financial institutions and over draft 2,354,369 1,652,760 17,774,022 439,656 -- -- 22,220,807 Loans and borrowing 73,739 127,911 2,088,839 9,073,764 5,639 -- 11,369,892 Other liabilities 23,042 21,266 40,862 415,084 -- 8,871,124 9,371,378 Accounts payable - customers credit balance at fair value through profit and loss -- -- 7,901,466 -- -- -- 7,901,466 Accounts payable - customers credit balance -- -- -- -- -- 20,566,943 20,566,943 Issued bonds -- -- 1,032,665 400,000 -- -- 1,432,665 Total financial liabilities at 31 December 2024 2,451,150 1,801,937 28,837,854 10,328,504 5,639 29,438,067 72,863,151 31 December 2024 29,059,859 1,342,369 (3,822,800) 7,148,632 1,950,159 (5,217,809) 30,460,410 Market risk Market risk is defined as the potential loss in both on and off financial position resulting from movements in market risk factors such as foreign exchange rates, interest rates, and equity prices. Market risk is represented in the factors which affect values, earnings and profits of all securities negotiated in stock exchange or affect the value, earning and profit of a particular security. According to the company's investment policy, the following procedures are undertaken to reduce the effect of this risk. • Performing the necessary studies before investment decision in order to verify that investment is made in potential securities. • Diversification of investments in different sectors and industries. • Performing continuous studies required to follow up the company's investments and their development. Foreign currencies risk • The foreign currencies exchange risk represents the risk of fluctuation in exchange rates, which in turn affects the company’s cash inflows and outflows as well as the value of its assets and liabilities in foreign currencies. • The company has revaluate assets and liabilities at the financial position date as disclosed in foreign currency accounting policy. Interest rate risk Interest rate risk stems from the sensitivity of earnings to future movements in interest rates applied on assets and liabilities. The Group’s management closely monitors interest rate fluctuations on a continuous basis and ensures that assets and liabilities are matched and re-priced in a timely manner. The Group is exposed to interest rate risk as a result of mismatches or gaps in the amounts of assets and liabilities that mature or are re-priced in a given period. The most important source of interest rate risk derives from the lending, funding and investing activities, where fluctuations in interest rates are reflected in interest margins and earnings. Financial Statemnets 190 191 Equity price risk Equity price risk is the risk that the value of a portfolio will fall as a result of change in stock prices. Risk factors underlying this type of market risk are a whole range of various equity (and index) prices corresponding to different markets (and currencies/maturities), in which the Group holds equity-related positions. The Group sets tight limits on equity exposures and the types of equity instruments that traders are allowed to take positions in. Nevertheless, depending on the complexity of financial instruments, equity risk is measured in first cash terms, such as the market value of a stock/index position, and also in price sensitivities, such as sensitivity of the value of a portfolio to changes in the underlying asset price. These measures are applied to an individual position and/or a portfolio of equity products. Operational risk Operational risk is the risk of direct or indirect loss due to an event or action causing failure of technology, process infrastructure, personnel, and other risks having an operational risk impact. The Group seeks to minimize actual or potential losses from operational risk failure through a framework of policies and procedures that identify, assess, control, manage, and report those risks. Controls include effective segregation of duties, access, authorization and reconciliation procedures, staff education and assessment processes. Fair value of financial instruments The fair value of the financial instruments does not substantially deviated from its book value at the financial position date. According to the valuation basis applied, in accounting policies to the assets and liabilities. Derivative financial instruments and hedge accounting • Derivatives are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at their fair value, according to the valuation basis applied, in accounting policies to derivative financial instruments. • In accordance with an arrangement between the subsidiary, EFG- Hermes Mena Securities Limited Co. and its customers (“the customers”), the Company from time to time enters into fully paid Shares Swap Transaction Contracts (“the contracts”) with the customers. Under the contracts the customers pay to the Company a pre- determined price, which is essentially the market price at the trade date, in respect of certain reference securities. In return for such shares swap transactions the Company pays to the customers the mark to market price of the reference securities at a pre-determined date (normally after one year). However, the contracts can be terminated at any time by either of the parties, which shall be the affected party. • In order to hedge the price risks with respect to the reference securities under the contracts, the Company enters into back-to-back fully paid Share Swap Transaction Contracts with other subsidiaries, MENA Financial Investments W.L.L. (“MENA-F”) and EFG-Hermes KSA. Accordingly, the Share Swap Transactions are measured at fair value based on underlying reference securities under the contracts. Liquidity risk Liquidity risk is the risk that the Group will be unable to meet its payment obligations when they fall due under normal and stress circumstances. To limit this risk, management has arranged diversified funding sources in addition to its core deposit base, manages assets with liquidity in mind and monitors future cash flows and liquidity on daily basis. This incorporates an assessment of expected cash flows and the availability of high grade collateral which could be used to secure additional funding if required. The Group maintains a portfolio of high marketable and diverse assets that can be easily liquidated in the event of an unforeseen interpretation of cash flow. In addition, the Group maintains statutory deposits with the Central Banks. The liquidity position is assessed and managed under a variety of scenarios, giving due consideration to stress factors relating to both the market in general and to the Group in specific. The Group maintains a solid ratio of high liquid net assets in foreign currencies to deposits and commitments in foreign currencies taking markets conditions into consideration. 31 December 2023 Up to 1 month More than 1 month to 3 months More than 3 months to 1 year More than 1 year to 5 years More than 5 years Without interest Total Financial Assets Cash and cash equivalents 14,121,425 107,800 622,333 60 -- 1,633,737 16,485,355 Accounts Receivable 2,834,049 68,788 673,359 -- -- 3,194,766 6,770,962 Loans and facilities to customers 2,779,417 1,307,581 5,557,851 8,888,869 15,051 568,886 19,117,655 Financial Investments at fair value through other comprehensive income -- 313,353 1,386,707 952,573 17,463 142,642 2,812,738 Financial Investments at Fair value through profit or loss 41,952 -- 680,319 790,292 9,127 7,674,501 9,196,191 Financial Investments in associates -- -- -- -- -- 410,105 410,105 Other Assets 319,788 6,842 43,362 18,339 -- 2,316,806 2,705,137 Total financial assets at 31 December 2023 20,096,631 1,804,364 8,963,931 10,650,133 41,641 15,941,443 57,498,143 Up to 1 month More than 1 month to 3 months More than 3 months to 1 year More than 1 year to 5 years More than 5 years Without interest Total Financial liabilities Due to banks and financial institutions and over draft 3,041,063 400,223 7,931,921 6,429 -- -- 11,379,636 Loans and borrowing 81,398 48,582 2,657,769 5,590,416 10,831 -- 8,388,996 Other liabilities -- -- -- -- -- 4,836,363 4,836,363 Accounts payable - customers credit balance at fair value through profit and loss -- -- 680,319 -- -- -- 680,319 Accounts payable - customers credit balance -- -- -- -- -- 11,319,690 11,319,690 Issued bonds -- -- 749,003 -- -- -- 749,003 Total financial liabilities at 31 December 2023 3,122,461 448,805 12,019,012 5,596,845 10,831 16,156,053 37,354,007 31 December 2023 16,974,170 1,355,559 (3,055,081) 5,053,288 30,810 (214,610) 20,144,136 Financial Statemnets 192 193 Credit risk classification The Bank assesses the probability of default at the level of each customer/ related group / credit product, by using techniques to classify the customers into different categories, taking into account the minimum rating in accordance with the CBE instructions in terms of determining the creditworthiness of the customers and making the provisions issued during the year 2005. Therefore, the Bank uses a group of internally developed models and evaluation techniques for the categories of counterparties, customers and the nature of various loans in light of the available information that is collected on the date of adoption of the used model (such as: level of income, level of disposable income and guarantees for individual clients, revenues, type of industry, and other financial and non-financial indicators of the institutions). The Bank completes such indicators with a set of external data, such as the inquiry reports issued by both CBE and credit reporting companies on borrowers and the reports issued by the other local and external credit rating agencies. Moreover, the models used by the Bank allow the systematic exercise of expert assessment by credit risk officials in the final internal credit rating. Therefore, this allows to consider other matters and indicators that may not have been taken as part of other data inputs in the internally or externally developed assessment models and techniques or through external sources. Credit grades are assessed so that the risk of default increases incrementally at each higher risk grade, namely the difference in default rates between the rating grade A and A- is less than the difference in default rates between rating grade B and B-. Additional considerations for each type of credit portfolio held by the Bank are set out below: Individuals, retail banking products and small & micro enterprises After the date of initial recognition, the borrower’s payment behavior is monitored periodically to calculate a measurement of the payment pattern. Any other information known about the borrower, supposed to be determined by the Bank, may have an impact the creditworthiness, such as unemployment rates and non-payment precedents, as they are included to measure the payment pattern and default rates are, accordingly, determined for each payment pattern measurement. (Large & Medium) Enterprises and Companies The rating is determined at the level of the borrower / groups with similar credit risks. Any updated or new credit information or assessments are included in the credit system constantly and periodically. In addition, information about the creditworthiness of the borrower / groups with similar credit risks is also updated periodically from other sources such as financial statements and other published financial and non-financial statements. Debt Instruments, Treasury Bills and Government Bonds The Bank uses the external ratings issued by the institutions mentioned in the CBE’s instructions to manage the credit risk in terms of the debt instruments in the investment portfolio. These published classifications are monitored and updated regularly and periodically. The default rates associated with each rating are determined based on the rates realized over the previous twelve months, as published by the aforementioned rating agencies. The loss rate of the government and CBE debt instruments dominated in local currency is zero. Future data used in the expected loss model Future data is used in assessing whether there is a significant increase in the credit risk of financial instruments and estimating the expected credit losses (ECL). The management of Bank determines the main economic variables that affect credit risk and expected credit losses for each credit portfolio by carrying out an analysis of historical data. The economic variables and the related effect on both Probability of Default “PD” and the Exposure at Default “EAD” and Loss Given Default “LGD” are different depending on the financial asset. The Bank will use expert opinions regarding these assumptions and estimates, if necessary. To determine the impact of such economic variables on both Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD), the management of the Bank carries out the “regression analysis” to understand the historical effects arising from such variables on the default rates and the inputs used in calculating both Exposure at Default (EAD) and Loss Given Default (LGD). Further to the key economic scenarios, the management of Bank establishes other potential scenarios in addition to assumptions relating to each scenario separately. 41.2. Risk management framework in Bank NXT: Credit risk The Bank is exposed to credit risk which is the risk resulting from a party’s failure to meet its contractual obligations towards the Bank. The credit risk is considered to be the most significant risk for the bank, therefore requiring careful management. Credit risk is mainly represented in lending activities that give rise to loans, facilities and investment activities that result in the Bank’s assets including debt instruments. Credit risk exists also in financial instruments outside the financial position such as loan commitments. The financial risk management and control are centralized in a financial risk management team in the bank’s risk management department which reports to the board of directors and head of each business unit regularly. Loans and facilities to banks and customers (including commitments and financial guarantee contracts) In measuring credit risk of loans and facilities to customers and to banks, the Bank’s rating system is based on three key pillars: • Current exposures to the counterparty and its likely future development, from which the Bank derive the (exposure at default). • The risk of default failure (Loss given default). • The probability of default by the customer or counterparty on its contractual obligations. These credit risk measurements, are embedded in the Bank’s daily operations which reflect expected loss through the expected loss model required by the Banking Supervision Committee, and the operational measures can contradict with the burden of impairment in accordance with the previous standards that depend on the losses that have realized on the date of the financial statements (realized loss model) and not the expected losses as will come after. The Bank assesses the probability of default per each customer using internal rating techniques tailored to the various categories of customers. These techniques have been developed internally and the statistical analyses combine credit officers’ personal judgment to reach the appropriate viability rating. Customers of the Bank are segmented into four viability rating classes. The Bank’s viability rating scale, which is shown below, reflects the range of default probabilities defined for each rating class. This means that, in principle, credit positions migrate between classes as the assessment of their probability of default changes. The rating techniques are kept under review and are upgraded as necessary. The Bank regularly validates the performance of the viability rating techniques and their ability to predict cases of default. Bank’s internal rating classes Bank’s rating Rating description 1 Performing Debts 2 Standard Monitoring 3 Special Monitoring 4 Non- Performing Debt The position exposed to default depends on the amounts expected by the bank to be outstanding when default occurs. For example, for a loan, this position is the nominal value and for commitments, the bank recognizes all amounts actually withdrawn in addition to other amounts that are expected to have been withdrawn up to the date of the delay if it occurs. Loss given default or loss severity represents the bank’s expectation of the extent of loss on a claim should a default occur. It is expressed as percentage of loss to debt and typically varies by type of the debtor, seniority of claim and availability of collateral or other credit coverages. Estimation of exposure to credit risks to manage the credit risks is a complex matter that requires the use of statistical and electronic models, as the level of exposure to credit risks changes depending on the changes in market conditions and other economic areas in a complex and rapid degree. The exposure to credit risk changes depending on the changes in the level, value and timing of expected cash flows and the passage of time. Accordingly, assessment of the credit risk of the assets portfolio requires further estimations of the probability of default and the related loss rates. The bank measures credit risk losses by using the probability of default (default in contractual liabilities) based on the carrying amount balance of the financial instrument at the date of exposure at default and loss given default. Financial Statemnets 194 195 Maximum exposure to credit risks – impaired financial instruments The following table represents the total carrying amount of the financial assets and the maximum exposure to credit risk on these financial assets. Retail EGP Thousands 31 December 2024 Order of Expected Credit Losses Credit Rating Stage 1 12 Month Stage 2 Lifetime Stage 3 Lifetime Total Standard monitoring Overdraft 61,700 95 467 62,262 Personal loans 7,684,007 229,312 20,927 7,934,246 Credit cards 387,902 1,661 231 389,794 Mortgage Loans 1,784,129 13,473 6,298 1,803,900 Special monitoring Overdraft -- -- 147 147 Personal loans 6,945 285 120,315 127,545 Credit cards 2,300 70 467 2,837 Mortgage Loans -- -- 563 563 Total carrying amount 9,926,983 244,896 149,415 10,321,294 Expected credit losses (40,232) (9,388) (148,911) (198,531) Net carrying amount 9,886,751 235,508 504 10,122,763 Collaterals 2,911,374 26,335 1,706 2,939,415 Retail EGP Thousands 31 December 2023 Order of Expected Credit Losses Credit Rating Stage 1 12 Month Stage 2 Lifetime Stage 3 Lifetime Total Standard monitoring Overdraft 227,380 1,996 261 229,637 Personal loans 5,534,145 218,152 12,711 5,765,008 Credit cards 73,907 1,653 15 75,575 Mortgage Loans 1,048,884 4,410 6,809 1,060,103 Special monitoring Overdraft -- 99 -- 99 Personal loans 27,008 205,669 13,819 246,496 Credit cards 2,936 728 35 3,699 Mortgage Loans -- 1,758 771 2,529 Default Overdraft -- -- 867 867 Personal loans 7,836 -- 123,060 130,896 Credit cards 562 121 593 1,276 Mortgage Loans -- -- 417 417 Total carrying amount 6,922,658 434,586 159,358 7,516,602 Expected credit losses (20,775) (14,831) (153,956) (189,562) Net carrying amount 6,901,883 419,755 5,402 7,327,040 Collaterals 2,810,872 321,585 107,631 3,240,088 The lifetime probability of default (PD) relating to the key assumption and other assumptions are used, as the outcome of multiplication is determined for each assumption with the related probabilities of each, in addition to the supporting indicators and qualitative indicators. Based on the results of such study, it is assessed whether this financial asset is located at the first, second or third level, on the basis of which it is determined whether the expected credit losses “ECL” will be computed on 12- month bases “12-month ECL” or over lifetime of the financial instrument “Lifetime ECL”. The expectations and probabilities of occurrence are subject to a high degree of uncertainty, as it is known to any economic forecasts, therefore the actual results may be significantly different from those anticipated. The Bank makes the best estimate of these potential expectations and carries out an analytical study of the irrelevant and non -similar factors for the different credit portfolios to conclude appropriate assumptions for all possible scenarios. Variable Economic Assumptions The most significant assumptions that have an impact on the expected credit losses “ECL” are: a) Consumption pricing indicators (CPI) b) Unemployment rate c) Gross domestic product (GDP) d) Gross national saving/investment e) Real available income Classification of the instruments relating to the losses measured on basis of the similar groups For ECL provisions, groups are classified on the basis of similar credit risk characteristics, as risk exposure within the Bank is homogeneous. When carrying out this classification, it is taken into consideration that there is sufficient information that enables the Bank to classify the Bank with statistical reliability. When sufficient information is not available, the Bank takes into consideration the complementary internal / external reference data. Corporate loans • Probability of default model (S& P) is used. • A conciliation was made between “S&P” and “ORR”. • The model was updated by some economic indicates to keep the probability of default in line with the clients existing in Egypt. • The model was updated by the ratios of change in the low credit rating of the other clients of the Bank for two years to keep the ratios of model default in line with the clients of the Bank. Financial Statemnets 196 197 Due From Banks EGP Thousands 31 December 2024 Order of Expected Credit Losses Credit Rating Stage 1 12 Month Stage 2 Lifetime Stage 3 Lifetime Total Standard monitoring 11,997,888 -- -- 11,997,888 Total carrying amount 11,997,888 -- -- 11,997,888 Expected credit losses (4,012) -- -- (4,012) Net carrying amount 11,993,876 -- -- 11,993,876 Financial Investments EGP Thousands 31 December 2024 Order of Expected Credit Losses Credit Rating Stage 1 12 Month Stage 2 Lifetime Stage 3 Lifetime Total Standard monitoring 23,285,422 -- -- 23,285,422 Total carrying amount 23,285,422 -- -- 23,285,422 Expected credit losses (96,781) -- -- (96,781) Net carrying amount 23,188,641 -- -- 23,188,641 Other Assets EGP Thousands 31 December 2024 Order of Expected Credit Losses Credit Rating Stage 1 12 Month Stage 2 Lifetime Stage 3 Lifetime Total Standard monitoring 2,817,087 -- -- 2,817,087 Total carrying amount 2,817,087 -- -- 2,817,087 Expected credit losses (13,293) -- -- (13,293) Net carrying amount 2,803,794 -- -- 2,803,794 Corporate EGP Thousands 31 December 2024 Order of Expected Credit Losses Credit Rating Stage 1 12 Month Stage 2 Lifetime Stage 3 Lifetime Total Standard monitoring Overdraft 263,840 19 -- 263,859 Direct loans 14,871,233 322,318 -- 15,193,551 Syndicated Loans 4,816,629 304,567 -- 5,121,196 Special monitoring Overdraft -- 493 -- 493 Direct loans -- 34,693 -- 34,693 Syndicated Loans -- 459,330 -- 459,330 Default Overdraft -- -- 2,916 2,916 Direct loans -- -- 913,201 913,201 Syndicated Loans -- -- 202,134 202,134 Total carrying amount 19,951,702 1,121,420 1,118,251 22,191,373 Expected credit losses (525,427) (468,763) (1,054,238) (2,048,428) Net carrying amount 19,426,275 652,657 64,013 20,142,945 Collaterals 2,379,740 302,803 70,200 2,752,743 Corporate EGP Thousands 31 December 2023 Order of Expected Credit Losses Credit Rating Stage 1 12 Month Stage 2 Lifetime Stage 3 Lifetime Total Standard monitoring Overdraft 457,021 1 -- 457,022 Direct loans 10,096,804 271,204 2,777 10,370,785 Syndicated Loans 2,591,978 538,795 -- 3,130,773 Special monitoring Overdraft -- 1,354 -- 1,354 Direct loans -- 170,176 -- 170,176 Default Overdraft -- -- 15,765 15,765 Direct loans -- -- 929,568 929,568 Syndicated Loans -- -- 202,134 202,134 Total carrying amount 13,145,803 981,530 1,150,244 15,277,577 Expected credit losses (347,350) (167,724) (917,827) (1,432,901) Net carrying amount 12,798,453 813,806 232,417 13,844,676 Collaterals 2,439,021 101,929 117,186 2,658,136 Financial Statemnets 198 199 The following table displays changes in balances and ECL between the beginning and end of the year: Corporate Loans EGP Thousands Stage 1 12 months Stage 2 Life time Stage 3 Life time Total ECL Outstanding ECL Outstanding ECL Outstanding ECL Outstanding Balance as of 1 January 2024 347,350 13,148,456 167,724 981,530 917,827 1,150,244 1,432,901 15,280,230 New financial assets purchased or issued 474,823 21,945,150 -- -- -- -- 474,823 21,945,150 Financial assets matured or derecognized (77,477) (9,843,037) (2,404) (276,329) (64,509) (232,924) (144,390) (10,352,290) Transfer to stage 1 5,086 706,154 (6,077) (740,851) -- -- (991) (34,697) Transfer to stage 2 (6,486) (1,035,689) 7,643 1,034,611 (617) (4,857) 540 (5,935) Transfer to stage 3 (493) (30,767) (6,729) (101,244) 68,585 133,334 61,363 1,323 Changes in the probability of default and loss in the event of default and the balance exposed to default (270,312) (6,334,395) 267,003 101,550 (125,425) (72,325) (128,734) (6,305,170) Write- off during the year -- -- -- -- (94,670) (94,670) (94,670) (94,670) Proceeds from previously written off debts -- -- -- -- 100,154 -- 100,154 -- Foreign exchange differences 52,936 1,395,830 41,603 122,153 252,893 239,449 347,432 1,757,432 Balance as of 31 December 2024 525,427 19,951,702 468,763 1,121,420 1,054,238 1,118,251 2,048,428 22,191,373 Corporate Loans EGP Thousands Stage 1 12 months Stage 2 Life time Stage 3 Life time Total ECL Outstanding ECL Outstanding ECL Outstanding ECL Outstanding Balance as of 1 January 2023 328,657 13,163,840 142,610 938,285 742,871 1,420,556 1,214,138 15,522,681 New financial assets purchased or issued 153,495 7,181,481 -- -- -- -- 153,495 7,181,481 Financial assets matured or derecognised (74,163) (7,073,606) (22,811) (346,849) (24,564) (324,431) (121,538) (7,744,886) Transfer to stage 1 4,354 109,809 (16,235) (151,573) (3,886) (4) (15,767) (41,768) Transfer to stage 2 (147) (136,528) 705 125,196 -- -- 558 (11,332) Transfer to stage 3 (251) (19,179) (79,354) (256,718) 252,987 293,667 173,382 17,770 Changes in the probability of default and loss in the event of default and the balance exposed to default (77,040) (365,853) 142,808 673,105 308,386 68,140 374,154 375,392 Write- off during the year -- -- -- -- (503,260) (503,260) (503,260) (503,260) Proceeds from previously written off debts -- -- -- -- 49,035 -- 49,035 -- Foreign exchange differences 12,445 288,492 1 84 96,258 195,576 108,704 484,152 Balance as of 31 December 2023 347,350 13,148,456 167,724 981,530 917,827 1,150,244 1,432,901 15,280,230 Due From Banks EGP Thousands 31 December 2023 Order of Expected Credit Losses Credit Rating Stage 1 12 Month Stage 2 Lifetime Stage 3 Lifetime Total Standard monitoring 11,529,087 -- -- 11,529,087 Total carrying amount 11,529,087 -- -- 11,529,087 Expected credit losses (2,716) -- -- (2,716) Net carrying amount 11,526,371 -- -- 11,526,371 Financial Investments EGP Thousands 31 December 2023 Order of Expected Credit Losses Credit Rating Stage 1 12 Month Stage 2 Lifetime Stage 3 Lifetime Total Standard monitoring 21,061,329 -- -- 21,061,329 Total carrying amount 21,061,329 -- -- 21,061,329 Expected credit losses (70,434) -- -- (70,434) Net carrying amount 20,990,895 -- -- 20,990,895 Other Assets EGP Thousands 31 December 2023 Order of Expected Credit Losses Credit Rating Stage 1 12 Month Stage 2 Lifetime Stage 3 Lifetime Total Standard monitoring 2,339,586 -- -- 2,339,586 Total carrying amount 2,339,586 -- -- 2,339,586 Expected credit losses -- -- -- -- Net carrying amount 2,339,586 -- -- 2,339,586 Financial Statemnets 200 201 Due From Banks EGP Thousands Stage 1 12 months Stage 2 Life time Stage 3 Life time Total ECL Outstanding ECL Outstanding ECL Outstanding ECL Outstanding Balance as of 1 January 2024 2,716 1,300,709 -- -- -- -- 2,716 1,300,709 New financial assets purchased or issued 23,137 7,063,442 -- -- -- -- 23,137 7,063,442 Financial assets matured or derecog nized (13,995) (7,137,612) -- -- -- -- (13,995) (7,137,612) Transfer to stage 1 -- -- -- -- -- -- -- -- Transfer to stage 2 -- -- -- -- -- -- -- -- Transfer to stage 3 -- -- -- -- -- -- -- -- Changes in the probability of default and loss in the event of default and the balance exposed to default (8,159) -- -- -- -- -- (8,159) -- Write- off during the year -- -- -- -- -- -- -- -- Proceeds from previously written off debts -- -- -- -- -- -- -- -- Foreign exchange differences 313 783,322 -- -- -- -- 313 783,322 Balance as of 31 December 2024 4,012 2,009,861 -- -- -- -- 4,012 2,009,861 Due From Banks EGP Thousands Stage 1 12 months Stage 2 Life time Stage 3 Life time Total ECL Outstanding ECL Outstanding ECL Outstanding ECL Outstanding Balance as of 1 January 2023 1,582 798,173 -- -- -- -- 1,582 798,173 New financial assets purchased or issued 2,716 1,300,709 -- -- -- -- 2,716 1,300,709 Financial assets matured or derecognised (2,222) (975,224) -- -- -- -- (2,222) (975,224) Transfer to stage 1 -- -- -- -- -- -- -- -- Transfer to stage 2 -- -- -- -- -- -- -- -- Transfer to stage 3 -- -- -- -- -- -- -- -- Changes in the probability of default and loss in the event of default and the balance exposed to default -- -- -- -- -- -- -- -- Write- off during the year -- -- -- -- -- -- -- -- Proceeds from previously written off debts -- -- -- -- -- -- -- -- Foreign exchange differences 640 177,051 -- -- -- -- 640 177,051 Balance as of 31 December 2023 2,716 1,300,709 -- -- -- -- 2,716 1,300,709 Retail Loans EGP Thousands Stage 1 12 months Stage 2 Life time Stage 3 Life time Total ECL Outstanding ECL Outstanding ECL Outstanding ECL Outstanding Balance as of 1 January 2024 20,775 6,922,658 14,831 434,586 153,956 159,358 189,562 7,516,602 New financial assets purchased or issued 29,605 6,585,765 -- -- -- -- 29,605 6,585,765 Financial assets matured or derecog nized (11,792) (1,450,554) (678) (37,511) (29,067) (68,746) (41,537) (1,556,811) Transfer to stage 1 5,124 1,092,435 (10,655) (1,094,444) (22,053) -- (27,584) (2,009) Transfer to stage 2 (5,056) (1,150,385) 38,795 1,155,182 (22,122) (33,827) 11,617 (29,030) Transfer to stage 3 (5,459) (46,006) (17,417) (189,853) 188,154 226,038 165,278 (9,821) Changes in the probability of default and loss in the event of default and the balance exposed to default 6,925 (2,135,502) (15,488) (23,327) (87,653) (32,027) (96,216) (2,190,856) Write- off during the year -- -- -- -- (101,425) (101,425) (101,425) (101,425) Proceeds from previously written off debts -- -- -- -- 69,104 -- 69,104 -- Foreign exchange differences 110 108,572 -- 263 17 44 127 108,879 Balance as of 31 December 2024 40,232 9,926,983 9,388 244,896 148,911 149,415 198,531 10,321,294 Retail Loans EGP Thousands Stage 1 12 months Stage 2 Life time Stage 3 Life time Total ECL Outstanding ECL Outstanding ECL Outstanding ECL Outstanding Balance as of 1 January 2023 38,030 4,963,887 13,799 196,071 146,449 190,006 198,278 5,349,964 New financial assets purchased or issued 10,311 4,070,685 -- -- -- -- 10,311 4,070,685 Financial assets matured or derecognised (4,686) (1,049,410) (936) (57,348) (9,108) (30,759) (14,730) (1,137,517) Transfer to stage 1 37 56,543 (2,219) (36,192) (1,489) (17,266) (3,671) 3,085 Transfer to stage 2 (3,184) (272,686) 9,618 221,621 (1,970) (1,939) 4,464 (53,004) Transfer to stage 3 (3,182) (111,305) (4,689) (26,493) 92,424 136,169 84,553 (1,629) Changes in the probability of default and loss in the event of default and the balance exposed to default (16,551) (749,868) (742) 134,662 3,470 3,554 (13,823) (611,652) Write- off during the year -- -- -- -- (120,418) (120,418) (120,418) (120,418) Proceeds from previously written off debts -- -- -- -- 44,593 -- 44,593 -- Foreign exchange differences -- 14,812 -- 2,265 5 11 5 17,088 Balance as of 31 December 2023 20,775 6,922,658 14,831 434,586 153,956 159,358 189,562 7,516,602 Financial Statemnets 202 203 Financial Investments at AC EGP Thousands Stage 1 12 months Stage 2 Life time Stage 3 Life time Total ECL Outstanding ECL Outstanding ECL Outstanding ECL Outstanding Balance as of 1 January 2024 40,120 6,313,108 -- -- -- -- 40,120 6,313,108 New financial assets purchased or issued 65,296 3,364,389 -- -- -- -- 65,296 3,364,389 Financial assets matured or derecog nized (3,626) (4,609,940) -- -- -- -- (3,626) (4,609,940) Transfer to stage 1 -- -- -- -- -- -- -- -- Transfer to stage 2 -- -- -- -- -- -- -- -- Transfer to stage 3 -- -- -- -- -- -- -- -- Changes in the probability of default and loss in the event of default and the balance exposed to default (62,459) -- -- -- -- -- (62,459) -- Write- off during the year -- -- -- -- -- -- -- -- Proceeds from previously written off debts -- -- -- -- -- -- -- -- Foreign exchange differences 23,703 4,068,707 -- -- -- -- 23,703 4,068,707 Balance as of 31 December 2024 63,034 9,136,264 -- -- -- -- 63,034 9,136,264 Financial Investments at AC EGP Thousands Stage 1 12 months Stage 2 Life time Stage 3 Life time Total ECL Outstanding ECL Outstanding ECL Outstanding ECL Outstanding Balance as of 1 January 2023 27,406 3,564,782 -- -- -- -- 27,406 3,564,782 New financial assets purchased or issued 38,353 6,029,818 -- -- -- -- 38,353 6,029,818 Financial assets matured or derecognised (31,261) (4,167,479) -- -- -- -- (31,261) (4,167,479) Transfer to stage 1 -- -- -- -- -- -- -- -- Transfer to stage 2 -- -- -- -- -- -- -- -- Transfer to stage 3 -- -- -- -- -- -- -- -- Changes in the probability of default and loss in the event of default and the balance exposed to default 242 -- -- -- -- -- 242 -- Write- off during the year -- -- -- -- -- -- -- -- Proceeds from previously written off debts -- -- -- -- -- -- -- -- Foreign exchange differences 5,380 885,987 -- -- -- -- 5,380 885,987 Balance as of 31 December 2023 40,120 6,313,108 -- -- -- -- 40,120 6,313,108 Financial Investments at fair value through Other Comprehensive income EGP Thousands Stage 1 12 months Stage 2 Life time Stage 3 Life time Total ECL Outstanding ECL Outstanding ECL Outstanding ECL Outstanding Balance as of 1 January 2024 30,314 3,880,036 -- -- -- -- 30,314 3,880,036 New financial assets purchased or issued 13,872 2,167,796 -- -- -- -- 13,872 2,167,796 Financial assets matured or derecog nized (13,770) (1,999,649) -- -- -- -- (13,770) (1,999,649) Transfer to stage 1 -- -- -- -- -- -- -- -- Transfer to stage 2 -- -- -- -- -- -- -- -- Transfer to stage 3 -- -- -- -- -- -- -- -- Changes in the probability of default and loss in the event of default and the balance exposed to default (410) -- -- -- -- -- (410) -- Write- off during the year -- -- -- -- -- -- -- -- Proceeds from previously written off debts -- -- -- -- -- -- -- -- Foreign exchange differences 3,741 326,182 -- -- -- -- 3,741 326,182 Balance as of 31 December 2024 33,747 4,374,365 -- -- -- -- 33,747 4,374,365 Financial Investments at fair value through Other Comprehensive income EGP Thousands Stage 1 12 months Stage 2 Life time Stage 3 Life time Total ECL Outstanding ECL Outstanding ECL Outstanding ECL Outstanding Balance as of 1 January 2023 41,331 4,376,940 -- -- -- -- 41,331 4,376,940 New financial assets purchased or issued -- 897,945 -- -- -- -- -- 897,945 Financial assets matured or derecognised (13,315) (1,867,453) -- -- -- -- (13,315) (1,867,453) Transfer to stage 1 -- -- -- -- -- -- -- -- Transfer to stage 2 -- -- -- -- -- -- -- -- Transfer to stage 3 -- -- -- -- -- -- -- -- Changes in the probability of default and loss in the event of default and the balance exposed to default 435 -- -- -- -- -- 435 -- Write- off during the year -- -- -- -- -- -- -- -- Proceeds from previously written off debts -- -- -- -- -- -- -- -- Foreign exchange differences 1,863 472,604 -- -- -- -- 1,863 472,604 Balance as of 31 December 2023 30,314 3,880,036 -- -- -- -- 30,314 3,880,036 Financial Statemnets 204 205 Means of setting limits of to the risks are shown as following: Guarantees The Bank adopts many policies and controls to limit the credit risks. These means include the guarantees obtained against borrowed funds. The Bank sets guiding rules for specific acceptable classes of guarantees. The key types guarantee of loans and facilities are: • Real estate mortgages. • Mortgage of activity assets such as machinery and merchandise. • Mortgage of financial instruments such as debt instruments and equity. The financing is often granted in the longer term and loans to the companies are secured. In order to reduce the credit loss to a minimum, the Bank seeks to get additional guarantees from the concerned parties and when indicators of impairment are shown for a loan or facilities. The guarantees taken as collateral for assets other than loans and facilities are determined based on the nature of the instrument. Generally, the debt instruments and treasury bills are not secured, except for groups of financial instruments covered by Asset-Backed Securities and similar instruments that are secured by a portfolio of financial instruments. Derivatives The Bank maintains strict control limits on net open derivative positions (i.e., the difference between purchase and sale contracts) by both amount and term. The amount exposed to credit risk, at any time, is determined at the fair value of the instrument that provides a benefit for the Bank, i.e. an asset with a positive fair value that represents a portion of the contractual / notional value used to express the size of the existing instruments. This credit risk exposure is managed as part of the overall lending limits with customers, together with potential exposures from market movements. Collateral or other security is not usually obtained for credit risk exposures on these instruments, except where the Bank requires margin deposits from counterparties. Settlement risk arises in any situation where a payment in cash, securities or equities is made against the expectation of a corresponding receipt in cash, securities, or equities. Daily settlement limits are established for each counter party to cover the aggregate of all settlement risk arising from the Bank’s market transactions on any single day. Master netting arrangements The Bank further restricts its exposure to credit losses by entering into master netting arrangements with counterparties with which it undertakes a significant volume of transactions. Master netting arrangements do not generally result in an offset of assets and liabilities shown in the balance sheet, as transactions are either usually settled on a gross basis. However, the credit risk associated with favorable contracts is reduced by a master netting arrangement to the extent that if a default occurs, all amounts with the counterparty are terminated and settled on a net basis. The Bank’s overall exposure to credit risk on derivative instruments subject to master netting arrangements can change substantially within a short year, as it is affected by each transaction subject to the arrangement. Credit related commitments The main purpose of credit-related commitments is to ensure that funds are available to the customer on demand, and financial guarantee contracts carry a credit risk related to loans, and documentary and commercial credits issued by the Bank on behalf of the customer to grant a third party the right to withdraw from the Bank within certain amounts and under specific terms and conditions often secured against the goods being shipped and therefore carries a lower degree of risk than a direct loan. Commitments to extend credit represent unused portions of authorizations to extend credit in the form of loans, guarantees or letters of credit. With respect to credit risk on commitments to extend credit, the Bank is potentially exposed to loss in an amount equal to the total unused commitments. However, the likely amount of loss is less than the total unused commitments, as most commitments to extend credit are contingent upon customers maintaining specific credit standards. The Bank monitors the term to maturity of credit commitments because longer-term commitments generally have a greater degree of credit risk than shorter-term commitments. The following table displays changes in balances and expected credit losses (ECL) between the beginning and end of the year: Credit Guarantees The Bank uses many policies and practices to limit the credit risks. The most widely adopted of these is the acceptability of collateral for debt instruments and loan commitments. The Bank has internal policies regarding classes of collateral that can be accepted to limit or decrease the credit risk. The Bank accrues out an assessment of the guarantees that have been obtained when establishing these loans. This assessment is regularly assessed. The key types of guarantees are: • Cash and cash equivalent • Real estate mortgage • Derivatives margin agreement that has been signed with the Bank as a part of main offsetting agreements. • Commercial mortgages • Financial assets pledge such as debt instruments and equity instruments. The guarantees held as collateral against the financial assets other than loans and facilities depend on the nature of the instrument, as debt securities, government bonds and other qualified bills are generally not secured, except for the asset-backed securities and similar instruments secured by portfolios of financial instruments. The derivatives are often secured. The policies adopted by the Bank have not been changed significantly in terms of obtaining guarantees during the financial year, and there has been no change in the quality of those guarantees held by the Bank compared to the previous financial year. The Bank closely monitors the guarantees held against the low – credit financial assets, as it is likely that the Bank will hold collateral to mitigate potential credit losses. Written-off financial instruments (loans) The Bank excludes the financial assets that are still under compulsory collection for unpaid contractual amounts of the bad assets. The Bank seeks to fully recover some amounts legally due that were partially or fully written off due to the lack of a possibility of a full recovery. Modifications of loans terms and rescheduling The Bank sometimes modifies terms of the loans granted to the customers due to the commercial renegotiation or non-performing to increase the chances of recovery. The activities of restructuring include arrangements of extension of repayment terms, grace periods, exemption from repayment or some or full interests. Restructuring policies and practices are based on indicators or criteria that indicate – based on the discretion of management - that repayment is likely to continue. These policies are constantly reviewed. Reduction and risk avoidance policies The Bank manages, limits, and controls the concentration of credit risks at the debtor level, groups, industries, and countries. The Bank regulates the levels of acceptable credit risks by setting limits to the amount of risk that will be accepted at the level of each borrower, or group of borrowers, and at the level of economic activities and geographical sectors. These risks are monitored constantly and are reviewed annually or on a recurring basis, when necessary. Limits of the credit risks at the level of the borrower / bank, producer, sector, and country are quarterly approved by the Board of Directors. Credit limits for any borrower, including banks, are divided into sub-limits that include the amounts on- and off- balance sheet, and the daily risk limit relating to trading items such as forward foreign exchange contracts. Actual amounts are compared with the daily limits. Exposure to credit risks is also managed through periodic analysis of the ability of borrowers and potential borrowers to meet the repayment of their liabilities and by amending lending limits, if appropriate. Financial Statemnets 206 207 Maximum limits for credit risk before collateral - items exposed to credit risk (on-balance sheet) 31 December 2024 31 December 2023 EGP Thousands EGP Thousands Treasury Bills and other Government Securities 13,042,703 9,849,828 Due from banks 11,993,876 11,526,371 Loans and facilities to customers Retail Loans Personal loans 7,890,500 5,969,104 Credit cards 375,008 76,961 Overdraft 62,322 229,280 Mortgage loans 1,794,933 1,051,695 Corporate Loans Overdraft 263,166 458,696 Direct loans 14,945,541 10,516,787 Syndicated loans 4,934,238 2,869,193 Suspended interest (643) (643) Unearned interest (171,488) (66,831) Financial Investment Debt instruments 10,179,603 11,171,381 Other assets - accrued revenue 989,741 738,563 66,299,500 54,390,385 Credit risk exposure item without taking collaterals (off-balance sheet): 31 December 2024 31 December 2023 EGP Thousands EGP Thousands Loan Commitment 14,182,263 933,981 Letters of guarantee 3,611,737 3,310,132 Letters of credit 1,017,394 135,397 Acceptances on supplier facilities 357,051 649,754 19,168,445 5,029,264 The above table represents the maximum bank exposure to credit risk 31 December 2024 and 31 December 2023, without taking in consideration any collateral held for in-balance sheet items, the balances included are based on net carrying amounts as reported in the balance sheet and as shown above, 45.04% of the maximum exposure arising from loans and facilities to customers against 38.80% at 31 December 2023; While investments in debt tools represent 35.53%, compared to 38.65% on December 31, 2023. Management is confident in its ability to continue to control and sustain minimal exposure of credit risk to the Bank resulting from both its loan and facility portfolio and debt Instruments based on the following: • 96.56% of the loans and facility portfolio is categorized in the top two grades of the internal rating system against 94.38% on 31 December 2023. • 90.52% of the loans and facility portfolio without accruals or impairment indicators against 84.41% on 31 December 2023. • 89.52% of the investments in debt instruments and treasury bills represent the debt instruments on Egyptian Government against 83% on 31 December 2023. Expected credit loss measurement policy The Bank’s policy requires defining three stages for classifying financial assets that are measured at amortized cost, loan commitments and financial guarantees, as well as debt instruments at fair value through other comprehensive income, according to changes in credit quality since the initial recognition, and then measuring (expected credit losses) in the value related to these instruments as follows: The unimpaired financial asset is classified upon initial recognition in Stage 1 and credit risk is monitored on an ongoing basis by the Bank's credit risk department. If there has been a significant increase in credit risk since initial recognition, the financial asset is transferred to Stage 2 and the financial asset is not considered impaired at this stage (lifetime expected credit loss in the absence of credit impairment). If there are indications of impairment in the value of the financial asset, it is transferred to Stage 3, and the Bank relies on the following indicators to determine whether there are objective evidence indicating : • A significant increase in the rate of interest on the financial asset as a result of the increase in credit risk. • Negative material changes in the activity and financial or economic conditions in which the borrower operates. • A scheduling request as a result of difficulties facing the borrower. • Negative material changes in actual or expected operating results or cash flows. • Early signs of cash flow/liquidity problems such as delays in servicing creditors/business loans. • Cancellation of a direct facility by the Bank due to the borrower's high credit risk. General Bank Risk Measurement Model The management performs classifications in the form of a more detailed subgroup to comply with the requirements of the central bank of Egypt, and the assets exposed to credit risk are classified according to detailed rules and conditions that depend largely on the information related to the customer, his activity, his financial status, and the extent of his regularity of payment. The bank calculates the required provisions in accordance with the instructions of creditworthiness, on the basis of specific ratios by the Central Bank of Egypt, and in the event that the required provisions in accordance with the rules of the central bank of Egypt exceed the expected credit losses calculated for the purposes of preparing the financial statements, the general bank risk reserve is set aside within rights ownership with a discount on the distributable profits by the amount of that increase, and this reserve is periodically adjusted by increase or decrease so that it is always equal to the amount of the increase between the two provisions, and this reserve is not distributable. Following is a table on the creditworthiness levels for institutions in accordance with the internal assessment bases compared to the Central Bank of Egypt assessment bases and the provision ratios required for the impairment of the assets exposed to credit risk: CBE Rating Rating description Provision% Internal rating description 1 Low Risk 0% Good debts 2 Moderate Risk 1% Good debts 3 Satisfactory Risk 1% Good debts 4 Reasonable Risk 2% Good debts 5 Acceptable Risk 2% Good debts 6 Marginally Acceptable Risk 3% Standard monitoring 7 Watch List 5% Special monitoring 8 Substandard 20% Non-performing debts 9 Doubtful 50% Non-performing debts 10 Bad Debt 100% Non-performing debts Financial Statemnets 208 209 EGP Thousands 31 December 2023 Retail Corporate Total loans and facilities to customers Overdraft Credit cards Personal loans Mortgage loans Overdraft ECL Direct loans Syndicated loans Rating Performing /No Dues 229,637 66,187 5,324,833 1,049,905 457,150 9,169,977 2,941,754 19,239,443 Past due up to 30 days 99 9,387 440,175 10,197 1,344 1,130,307 189,019 1,780,528 Past due 30-60 days -- 1,812 156,432 2,279 -- 73,671 -- 234,194 Past due 60 -90 days -- 1,888 90,064 251 -- 168,966 -- 261,169 Impaired 867 1,276 130,896 417 15,647 927,608 202,134 1,278,845 Total 230,603 80,550 6,142,400 1,063,049 474,141 11,470,529 3,332,907 22,794,179 Expected Credit Losses (1,323) (3,589) (173,296) (11,354) (15,445) (953,742) (463,714) (1,622,463) Suspended interest -- -- (5) -- -- (638) -- (643) Unearned interest -- -- (48,793) -- -- (18,038) -- (66,831) Total 229,280 76,961 5,920,306 1,051,695 458,696 10,498,111 2,869,193 21,104,242 Loans and facilities Balances of loans and facilities at 31 December 2024 are set out below: 31 December 2024 31 December 2023 EGP Thousands EGP Thousands Stage 1 29,878,685 20,071,114 Stage 2 1,366,316 1,416,116 Stage 3 1,267,666 1,309,602 Total 32,512,667 22,796,832 Less: Expected credit losses (2,246,959) (1,622,463) Suspended interest (643) (643) Unearned interest (171,488) (66,831) Net 30,093,577 21,106,895 EGP Thousands 31 December 2024 Retail Corporate Total loans and facilities to customers Overdraft Credit cards Personal loans Mortgage loans Overdraft ECL Direct loans Syndicated loans Rating Performing /No Dues 62,200 341,221 7,191,045 1,795,038 267,207 14,216,338 5,580,526 29,453,575 Past due up to 30 days -- 40,297 500,736 6,736 -- 962,623 -- 1,510,392 Past due 30-60 days 62 5,989 146,353 1,864 9 24,480 -- 178,757 Past due 60 -90 days -- 2,286 96,468 262 -- 11,714 -- 110,730 Impaired 147 2,838 127,189 563 52 926,290 202,134 1,259,213 Total 62,409 392,631 8,061,791 1,804,463 267,268 16,141,445 5,782,660 32,512,667 Expected Credit Losses (87) (17,623) (171,291) (9,530) (4,102) (1,195,904) (848,422) (2,246,959) Suspended interest -- -- (5) -- -- (638) -- (643) Unearned interest -- -- (149,209) -- -- (22,279) -- (171,488) Total 62,322 375,008 7,741,286 1,794,933 263,166 14,922,624 4,934,238 30,093,577 Financial Statemnets 210 211 Activity segments The following table represent the analysis of the Bank’s main credit exposure at carrying value categorized by the activities practiced by the bank's customers. EGP Thousands Commercial activity Industrial activity Financial institutions Real estate companies Governmental sector Other Activities Individuals Total Due from banks -- -- 11,993,876 -- -- -- -- 11,993,876 Loans and facilities to customers Retail loans Overdraft -- -- -- -- -- -- 62,409 62,409 Personal loans -- -- -- -- -- -- 8,061,791 8,061,791 Credit Cards -- -- -- -- -- -- 392,631 392,631 Mortgage loans -- -- -- -- -- -- 1,804,463 1,804,463 Corporate loans Overdraft 188 10,042 34 41 771 256,192 -- 267,268 Direct loans 238,323 9,033,158 2,155,526 769,112 -- 3,945,326 -- 16,141,445 Syndicated loans -- 918,895 -- 2,152,667 233,819 2,477,279 -- 5,782,660 Expected Credit Losses (9,245) (1,224,048) (71,859) (254,797) (694) (487,785) (198,531) (2,246,959) Suspended interest -- -- -- -- -- (638) (5) (643) Unearned interest -- -- -- -- -- (22,279) (149,209) (171,488) Financial Investments Debt instruments -- -- 23,222,306 -- -- -- -- 23,222,306 Other assets -- -- 989,741 -- -- -- -- 989,741 Total at 31 December 2024 229,266 8,738,047 38,289,624 2,667,023 233,896 6,168,095 9,973,549 66,299,500 Total at 31 December 2023 284,584 6,506,126 33,142,961 2,261,152 264,653 4,446,378 7,516,602 54,422,456 Restructured loans and facilities Restructuring activities include extending payment arrangements, implementing forced management programs, modifying, and postponing payments. Policies for implementing restructuring depend on indicators or criteria that indicate that there is a high probability of Continued payments, based on the personal judgment of management. These policies are subject to continuous review. It is usual to apply restructuring to long-term loans, especially customer financing loans, The restructured loans at 31 December 2024 amounted 1,423,197 EGP thousands compared to 1,933,996 EGP thousand at 31 December 2023. Written-off loans In accordance with the Board of Directors’ decision or its specialized committees, the written-off loans from the non- performing loans are written-off against its related loan loss provisions and that step is made after exhausting all the possible recovery processes. Debt Instruments and Treasury Bills The table below presents an analysis of debt instruments, and other treasury bills according to the rating agencies at 31 December 2024. EGP Thousands 31 December 2024 Treasury bills & other Governmental securities Debt Instruments Total B 13,065,489 10,219,851 23,285,340 31 December 2023 Treasury bills & other Governmental securities Debt Instruments Total B 9,863,355 11,197,974 21,061,329 Financial Statemnets 212 213 Measuring Exchange rate risk: • The bank applies the value at risk (parametric VAR) method to estimate the market risk of existing positions and the maximum expected loss, based on several assumptions for various changes in market conditions. The value at risk (VAR) is a statistical prediction of the potential loss resulting from adverse market movements and expresses the maximum value that the bank can lose using a 99% confidence coefficient, meaning that there is a 1% probability that the actual loss will be greater than the value of the expected loss. • The VAR model assumes a ten-day holding period before closing open positions. - Three steps to apply VAR as a measurement approach for foreign exchange risk and cost of capital: 1- The bank is expected to calculate its expected losses on a daily basis. 2- The bank compares the VAR value at the end of the month with the average daily VAR for 60 days and calculates the capital charge based on the larger value of the two. 3- To adequately calculate the cost of capital, the bank must conduct a back test by comparing actual daily losses with the calculated value of risk. Value at risk according to risk type EGP Thousands 31 December 2024 31 December 2023 Average Higher Lower Average Higher Lower Foreign Currency Exchange risk 1,597 4,035 108 4,479 12,267 1,136 Foreign exchange fluctuation risk The Bank is exposed to the effects of fluctuations in the foreign currency exchange rates on its financial position and cash flows. The Board of Directors sets limits on the level of exposure by currency and in aggregate for both overnight and intra- day positions, which are monitored daily. The table below summarizes the Bank’s exposure to foreign currency exchange rate risk at the end of financial period, and Bank’s financial instruments at carrying amounts, categorized by currency. EGP Thousands 31 December 2024 EGP USD EUR GBP Other Currencies Total Financial Assets Cash and balances with Central Bank 8,829,407 82,558 14,941 2,534 4,685 8,934,125 Due from banks 6,319,999 5,169,410 372,393 126,607 5,467 11,993,876 Loans and facilities to customers 26,758,322 3,319,414 15,541 236 64 30,093,577 Financial Investments Financial Investments at fair value through other comprehensive income 9,152,280 1,833,122 5,194 -- -- 10,990,596 Financial Investments at amortized cost 3,375,762 8,994,407 117,376 -- -- 12,487,545 Financial Investments in associates 380,728 -- -- -- -- 380,728 Non-Current Asset Held for Sale 92,596 -- -- -- -- 92,596 Other Financial Assets 792,161 192,580 4,756 244 -- 989,741 Total financial assets at 31 December2024 55,701,255 19,591,491 530,201 129,621 10,216 75,962,784 Market risk Market and liquidity risks are defined as the risks to which the bank is exposed because of maintaining certain positions considering changes or fluctuations in the markets in which the bank operates and not necessarily in which the bank is geographically located. Market risks result from open positions for the purpose of trading, whether currency positions or investments that are sensitive to changes in interest rates, which affects the market value of those investments, and these effects are reflected in the income statement daily. As for positions held for non-trading purposes that are sensitive to changes in interest rates, the effect of changes on the bank’s capital is reflected. Trading portfolios arise because of the bank's direct dealings with clients or with the market. While portfolios are created for non-trading purposes because of the bank’s management of assets and liabilities and are primarily created through investments classified at amortized cost or through other comprehensive income. Types of market risks: These include interest rate risks, exchange rate risks, and liquidity risks. Below is an explanation of each category of market risk: Interest rate risk: The risks that arise from unfavorable movements in the prevailing interest rates in the market during a certain period of time, which may negatively affect the bank’s profitability or the economic value of its property rights, and thus its financial position. Exchange rate risk: It is the risk of a change in the value of the investment due to change in the exchange rate. This also refers to the risks that the bank faces when it needs to close a long or short position in a foreign currency at a loss, due to the adverse movement in exchange rates. Liquidity risk: It is a type of financial risk that involves the inability to trade financial assets on the market fast enough to influence the price of the market within a given time frame. This happens when there is insufficient market liquidity to make it simple to purchase or sell assets without having a big impact on their price. Methods for measuring market risk: Measuring Interest rate risk: Interest rate risks are divided into two types: Interest rate risks for positions held for non-trading purposes in the Banking Book, which result from the main activities of the bank that are not carried out for the purpose of trading. Additionally, interest rate risk in the trading portfolio, which arises from positions taken with the intention of trading in financial markets, is included in the guidelines for the minimum capital adequacy level under the market risk framework. The sensitivity of the bank's profitability to interest rate movements in the short term is measured specifically through its impact on net interest income, although interest rate risks have an increasing impact on all of the bank's revenues, including revenues Other than net income from returns (such as commissions), the focus is It will be mainly based on net income from earnings (EAR). The process of calculating the value of the capital required to meet the interest rate risk for positions held for non-trading purposes is carried out according to the standard method by following the following steps for each currency separately: • A netting is made between assets and liabilities - including derivative contracts - that are sensitive to return rates in each period to reach the net position (assets - liabilities). • The net position for each time period is multiplied by the discount factor for each period, which is calculated according to the interest rates for each time period based on the yield curve for each currency. • To determine the economic value of the bank's equity prior to any shocks, a forced summation procedure is carried out (considering the signal to make a clearing between the surplus and deficit positions) of the weighted positions for the various time periods for each currency separately. • The previous steps are repeated by following 6 scenarios for the rise and fall of interest rates (according to the various changes in the interest curve) for each currency to arrive at the economic value of the bank’s equity aftershocks. Financial Statemnets 214 215 Interest rate risk The risk that arises from unfavorable movements in the prevailing interest rates in the market during a certain period, which may negatively affect the bank’s profitability or the economic value of its property rights and thus its financial position. The tables below summaries the Bank ’s exposure to the interest rate fluctuations risk that include carrying amount of the financial instruments categorized based on the repricing dates or the maturity date – whichever is earlier. EGP Thousands 31 December 2024 Up to 1 month More than 1 month to 3 months More than 3 months to 1 year More than 1 year to 5 years More than 5 years Without interest Total Financial Assets Cash and balances with Central Bank -- -- -- -- -- 8,934,125 8,934,125 Due from banks 9,887,262 1,955,616 54,245 -- -- 96,753 11,993,876 Loans and facilities to customers 3,024,777 14,260,978 3,112,684 9,514,310 2,599,918 (2,419,090) 30,093,577 Financial Investments Financial Investments at fair value through other com prehensive income 298,274 7,599,419 2,317,897 519,171 -- 255,835 10,990,596 Financial Investments at amortized cost 129,403 5,658,271 686,513 6,076,392 -- (63,034) 12,487,545 Financial Investments in associates -- -- -- -- -- 380,728 380,728 Non-current assets held for sale -- -- -- -- -- 92,596 92,596 Other Financial Assets -- -- -- -- -- 989,741 989,741 Total financial assets at 31 December 2024 13,339,716 29,474,284 6,171,339 16,109,873 2,599,918 8,267,654 75,962,784 EGP Thousands 31 December 2024 Up to 1 month More than 1 month to 3 months More than 3 months to 1 year More than 1 year to 5 years More than 5 years Without interest Total Financial liabilities Due to banks 10,577 -- -- -- -- 531,532 542,109 Customers’ deposits 20,225,042 12,071,031 10,872,502 18,009,556 7,841 6,022,614 67,208,586 Other Loans -- -- -- -- 119,673 -- 119,673 Other financial liabilities -- -- -- -- -- 1,215,990 1,215,990 Total financial liabilities at 31 December 2024 20,235,619 12,071,031 10,872,502 18,009,556 127,514 7,770,136 69,086,358 31 December 2024 (6,895,903) 17,403,253 (4,701,163) (1,899,683) 2,472,404 497,518 6,876,426 31 December 2023 (4,812,575) 13,244,471 (5,760,495) (2,402,978) 2,411,578 2,293,195 4,973,196 EGP Thousands 31 December 2024 EGP USD EUR GBP Other Currencies Total Financial liabilities Due to banks 5,129 471,762 43,598 -- 21,620 542,109 Customers’ deposits 47,370,305 19,199,727 500,062 129,505 8,986 67,208,585 Other loans 119,673 -- -- -- -- 119,673 Other financial liabilities 1,158,122 57,811 48 9 -- 1,215,990 Total financial liabilities at 31 December 2024 48,653,229 19,729,300 543,708 129,514 30,606 69,086,357 Net financial position at 31 December 2024 7,048,026 (137,809) (13,507) 107 (20,390) 6,876,427 Net financial position at 31 December 2023 4,992,642 (379) (1,669) (230) (17,168) 4,973,196 Financial Statemnets 216 217 Cash Flows Risk Hedge EGP Thousands 31 December 2024 Description / Maturity Date Up to 1 month More than 1 month to 3 months More than 3 months to 1 year More than 1 year to 5 years More than 5 years Without interest Total Due to banks 10,578 - - - - 531,532 542,110 Customers' deposits 10,964,811 12,160,111 10,796,304 7,794,504 21,726 31,203,389 72,940,845 Other Loans - - - - 119,673 - 119,673 Other liabilities - - - - - 1,215,990 1,215,990 Total financial liabilities according to the contractual maturity date 10,975,389 12,160,111 10,796,304 7,794,504 141,399 32,950,911 74,818,618 Total financial assets according to the contractual maturity date 12,274,720 18,635,742 16,740,790 29,859,110 10,479,175 8,597,329 96,586,866 EGP Thousands 31 December 2023 Description / Maturity Date Up to 1 month More than 1 month to 3 months More than 3 months to 1 year More than 1 year to 5 years More than 5 years Without interest Total Due to banks 2,679,176 - - - - 297,324 2,976,500 Customers' deposits 5,364,983 10,686,134 10,951,669 5,711,744 67,610 22,160,069 54,942,209 Other Loans - - - - 126,684 - 126,684 Other liabilities - - - - - 591,026 591,026 Total financial liabilities according to the contractual maturity date 8,044,159 10,686,134 10,951,669 5,711,744 194,294 23,048,419 58,636,419 Total financial assets according to the contractual maturity date 12,972,196 13,802,798 12,158,856 13,322,134 10,449,274 5,257,258 67,962,516 Assets available to satisfy all liabilities and cover loan-associated commitments include cash balances with the Central Bank, Due from banks, treasury bills and other governmental securities, loans and facilities to banks and customers. A percentage of loans to customers that are due to be repaid within a year are extended during the normal activity of Bank NXT in addition to that, there is a mortgage of some debt instruments, treasury bills and other government securities to guarantee obligations and Bank NXT has the ability to satisfy the unexpected net cash flows by selling securities and finding other financing sources. * Assets shown in the table represent the undiscounted cash flows in accordance with the contractual maturity date. Liquidity risk It is a type of financial risk that involves the inability to trade financial assets on the market fast enough to influence the price of the market within a given time frame. This happens when there is insufficient market liquidity to make it simple to purchase or sell assets without having a big impact on their price. Measuring liquidity risk: • The bank prepares the Liquidity Coverage Ratio (LCR), which aims to ensure that the bank maintains a sufficient amount of high-quality, unencumbered liquid assets to meet net cash outflows within 30 days. • Net Stable Funding Ratio (NSFR): The Net Stable Funding Ratio represents the relationship between the available stable financing (ASF - Funding Stable Funding Required) (the numerator of the ratio) and the stable financing required (RSF - Funding Stable Required) (the denominator of the ratio), as the ratio works to confront the incompatibility of the financing structure. Long-term by urging the use of stable, long-term sources of funds for a period extending for at least one year in order to cover investments in assets and any financing claims resulting from obligations outside the budget, which helps the bank to structure its sources of funds. • On an individual basis (the bank’s branches at home country and abroad) and on a combined basis (the banking group includes the bank and all its branches at its home country and abroad and all affiliated financial companies with the exception of insurance companies) on a monthly basis gradually for both the local currency and foreign currencies separately, and 100% must be adhered to as a limit Lowest LCR & NSFR ratios. • In case of having a deficit in the Liquidity Coverage Ratio (LCR), sources of funds are provided equivalent to the amount of the deficit in the level of high-quality liquid assets, and they are invested within those assets. • In case of a deficit in the Net Stable Financing Ratio (NSFR), the bank creates capital equivalent to the amount of the deficit in the ratio as additional capital in the capital base, which leads to compliance with the specified limit for the Net Stable Financing Ratio. • The bank calculates the liquidity ratio for both local currency and foreign currencies (keeping the minimum for each of them at 20% and 25%, respectively), where the ratio is calculated on the basis of the daily average of the actual working days during the month. Liquidity gap: The liquidity risk control processes implemented by the bank’s Asset and Liabilities Department include the following: • The liquidity gap occurs when there are differences between the maturity dates and the maturity scale for assets and liabilities. Gap analysis includes evaluating the difference between the maturity dates of assets and liabilities (Liquidity Mismatch). • The bank prepares a monthly report to monitor market risks and prepare reports on net liquidity gap positions, liquidity gap limits, and liquidity ratio limits. The following tables represent the analysis of the bank ’s liquidity coverage ratio: 31 December 2024 31 December 2023 EGP Thousands EGP Thousands Total amount of high-quality liquid assets (1) 22,539,597 16,081,143 Total Cash outflows 18,080,788 10,601,212 Considerable total cash inflows within the set limit (value less than: total cash inflows, 75% of total cash outflows) (11,420,652) (7,950,909) Net cash outflows (2) 6,660,136 2,650,303 Liquidity coverage ratio (1/2) 338.43% 606.77% Financial Statemnets 218 219 8-This value must be included in accordance with Form No. 720 related to investments in countries abroad, taking into account that the value of the capital base listed in the aforementioned statement must be adjusted according to the calculated value. • The continuing core capital after the regulatory adjustments is Clause 1.1 before excluding contributions to financial companies (shares or investment funds) represented in Clause 1.3.1.1. • Continuing core capital before regulatory adjustments means paid-up capital, reserves, retained earnings, general risk reserve, and accumulated other comprehensive income items net of goodwill and treasury shares. • Subordinated loans (deposits): provided that they do not exceed 50% of Tier I after disposals and that 20% of its value is consumed in each of the last five years. Financial leverage ratio The Board of Directors of the Central Bank of Egypt, in its session held on 7 July, issued a decision approving the supervisory instructions related to the financial leverage, besides the banks’ compliance with the stipulated minimum percentage (3%) on a quarterly basis, as follows: • As an indicative percentage as of the end of September 2015 until the year 2017. • As a compulsory supervisory percentage as of 2018. This is in preparation for the consideration of it within the first pillar of Basel decisions (the minimum capital adequacy ratio) for maintaining the strength and integrity of the banking sector and keeping pace with the best international control practices in this regard. The financial leverage reflects the relationship between Tier I of capital used in capital adequacy ratio (after disposals) and the Bank's assets (inside and outside the balance sheet) unweighted with risk weights. Financial instruments measured at fair value The fair value of one-day variable-rate placements and deposits represent their present value, and the expected fair value of variable-rate deposits is estimated based on the discounted cash flows using the interest rate prevailing in the capital markets for debts that have similar credit risk and maturity date. Loans and facilities to banks Loans and facilities to banks represent loans other than bank deposits. The expected fair value of loans and facilities is the discounted value of future cash flows expected to be collected and the cash flows are discounted using the current market interest rate for determining the fair value to determine the fair value to meet all the requirements. This includes replacement of funds on maturity or upon being lent to customers. The Bank is present in global money markets to achieve this objective. Loans and facilities to customers They are recognized at net value after deduction of provision for impairment loss. The expected fair value for these loans and facilities represents the discounted value of estimated future cash flows expected to be collected. Cash flows are deducted using the current interest rate in the market to specify the fair value. Investments in securities Assets through other comprehensive income or profit or loss are carried at fair value. The fair value is determined based on market prices. If such data is not available, fair value is estimated using prices of capital markets for traded securities with similar credit characteristics, dates of maturity and rates. Financial instruments not measured at fair value Financial investments at amortized cost They include held-to-maturity financial assets that are listed in the market and are measured at amortized cost in case of bonds, and with respect to investment funds, the evaluation is done at the recoverable amount (fair value). Management believes that the fair value is not materially different from the carrying amount of these assets. Capital management The Bank’s objectives on managing capital, which include other elements in addition to the equity shown in the balance sheet, are as follows: • Compliance with the legal requirements of capital in the Arab Republic of Egypt. • Protecting the Bank's ability to continue as a going concern and enabling it to continue generating income for shareholders and other parties dealing with the Bank. • Maintaining a strong capital base that supports the growth of activity. The capital adequacy and capital uses are daily reviewed according to the requirements of the Central Bank of Egypt by the Bank’s management, through forms based on the guidelines of the Basel Committee on Banking Supervision. The required data are submitted and provided to the Central Bank of Egypt on a quarterly basis. The Central Bank of Egypt requires the Bank to do the following: • Maintain Five billion Egyptian pounds as a minimum for issued and paid-up capital. • Maintain a ratio equal to or more than 12.5% between the elements of capital and the elements of assets and contingent liabilities weighted by risk weights. • In accordance with the requirements of the Central Bank of Egypt to update the position of the banking sector with regard to the capital adequacy ratio according to Basel II decisions. The numerator of the capital adequacy ratio consists of the following two tiers: Tier I after disposals includes the following: Some of the items that will be deducted/ will not be considered and mentioned in the "supervisory instructions on the minimum ratio of capital adequacy", Chapter II on the capital base will be dealt with later as stated in the instructions. • Continuing core capital after disposals (CET1-Common Equity). • Additional core capital There are some items that will be deducted/ not considered and mentioned in the "supervisory instructions on the minimum ratio of capital adequacy", Chapter II on the capital base. These items are deducted from the continuous core capital if the balance is negative, while they are not considered if it is positive. Tier II after disposals It includes 45% of the special reserve, loans and subordinated deposits within the limits of the prescribed percentage, as well as the considerable provisions required against the debt instruments, loans, credit facilities and contingent liabilities included in the first stage (Stage 1). The capital adequacy ratio model includes some important notes and points which are as follows: 1-Reserves: include legal, general, statutory, supportive and capital reserves only. 2-The “general risk reserve” is formed in accordance with the supervisory instructions issued to banks on 26 January 2019. It includes the special reserve – credit, the general bank risk reserve - credit and the reserve risk of standard (9), considering that in the subsequent periods of application, the Bank shall abide by what is stated within the instructions on minimum capital adequacy ratio “which is not to consider the bank risk reserve when calculating the ratio.” 3-The values of accumulated other comprehensive income items, whether they are positive or negative, are considered. 4-Interim profits/ (losses): It is allowed to record the net interim profits within the capital base after the limited inspection report prepared by the auditor on the Bank’s financial statements on a quarterly basis. As for the interim losses, they are presented without any conditions. 5-It does not include the part related to credit, and the explanatory instructions of the rules on the preparation and presentation of the financial statements issued by the Central Bank in April 2009, page 7, item (9) must be perused. 6-It should not exceed 1.25% of total assets and contingent liabilities weighted for credit risk, provided that the required provisions against debt instruments, loans, credit facilities and contingent liabilities included in the Stage 2 and Stage 3 are sufficient to meet the obligations for which the provision is formed. 7-"The value of exceeding the limits set for investments in countries, weighted by risk weights." Financial Statemnets 220 221 43.1.2. Subsidiaries • Subsidiaries are entities controlled by the Group. • The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. • The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. 43.1.3. Non-controlling interests NCI are measured at their proportionate share of the acquiree’s identifiable net assets at the date of acquisition. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. 43.1.4. Loss of control When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related NCI and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost. 43.1.5. Interests in equity-accounted investees The Group’s interests in equity-accounted investees comprise interests in associates and a joint venture. Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial and operating policies. A joint venture is an arrangement in which the Group has joint control, where by the Group has rights to the net assets of the arrangement. Rather than rights to its assets and obligations for its liabilities. Interests in associates and the joint venture are accounted for using the equity method. They are initially recognized at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group’s share of the profit or loss and OCI of equity accounted investees, until the date on which significant influence or joint control ceases. 43.1.6. Transactions eliminated on consolidation Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated. Unrealised gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. 43.2. Foreign currency 43.2.1. Foreign currency transactions Transactions in foreign currencies are translated into the respective functional currencies of Group companies at the exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Non- monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Foreign currency differences are generally recognised in profit or loss and presented within finance costs. However, foreign currency differences arising from the translation of the following items are recognised in OCI: • An investment in equity securities designated as at FVOCI (except on impairment, in which case foreign currency differences that have been recognised in OCI are reclassified to profit or loss); • A financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is effective and qualifying cash flow hedges to the extent that the hedges are effective. Due from banks The fair value of one-day variable-rate placements and deposits represent their present value, and the expected fair value of variable-rate deposits is estimated based on the discounted cash flows using the interest rate prevailing in the capital markets for debts that have similar credit risk and maturity date. Loans and facilities to banks Loans and facilities to banks represent loans other than bank deposits. The expected fair value of loans and facilities is the discounted value of future cash flows expected to be collected and the cash flows are discounted using the current market interest rate for determining the fair value. Loans and facilities are presented net of provision for impairment losses. Investments in securities Investments in securities include only financial assets that have a fixed or determinable maturity date, and the business model aims to hold them in order to obtain only the investment principal and the return thereon. The fair value of these financial assets held to maturity is determined based on market prices or prices obtained from brokers. If this data is not available, the fair value is estimated using financial market prices for tradable securities with similar credit characteristics, maturity dates and rates. Due to other banks and customers The estimated fair value of deposits with an indefinite maturity date, that include non-interest-bearing deposits, is the amount that would be repaid on demand. The fair value of fixed interest-bearing deposits and other loans that are not traded in an active market is determined based on the discounted cash flows using the rate of return on new debts with a similar maturity date. Issued debt instruments The total fair value is calculated based on current capital market prices. For securities that have no active markets, the discounted cash flow model is used for the first time based on the current rate that fits the remaining period till the maturity date. 42. Important events • On March 6, 2024, the Central Bank of Egypt decided to raise the overnight deposit and lending rates by 600 basis points to reach 27.25% and 28.25%, respectively. Also, the credit and discount rate was raised by also 600 points to reach 27.75 with allowing the use of a flexible exchange rate driven by market mechanisms, which led to an increase in the average official exchange rate of US dollars during the first week of the Central Bank's decision date, to reach between 49 to 50 EGP/USD. 43. Significant accounting policies applied 43.1. Basis of consolidation 43.1.1. Business combination • The Group accounts for business combinations using the acquisition method when control is transferred to the Group. • The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. • Any goodwill that arises is tested annually for impairment, any gain on a bargain purchase is recognized immediately in profit or loss. • Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities. • The consideration transferred doesn’t include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognized in profit or loss. • Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not re measured and settlement is accounted for within equity. Otherwise, other contingent consideration is re measured at fair value at each reporting date and subsequent changes in the fair value of the contingent consideration are recognized in profit or loss. Financial Statemnets 222 223 43.4.7. Management fee Management fee is calculated as determined by the management contract of each investment fund & portfolio and recorded on accrual basis. 43.4.8. Incentive fee Incentive fee is calculated based on certain percentages of the annual return realized by the fund and portfolio, however these incentive fee will not be recognized until revenue realization conditions are satisfied and there is adequate assurance of collection. 43.4.9. Investment property rental income Rental income from investment property is recognized as revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total rental income, over the term of the lease. Rental income from other property is recognized as other income. 43.4.10. Revenue from micro-finance services • Revenue from micro-finance services is recognized based on time proportion taking into consideration the rate of return on asset. Revenue yield is recognized in the income statement using the effective interest method for all financial instruments that carry a yield, the effective interest method is the method of measuring the amortised cost of a financial asset and distributing the revenue over the life of time the relevant instrument. The effective interest rate is the rate that discounts estimated future cash receipts during the expected life of the financial instrument to reach the book value of the financial asset. • When classifying loans to customers as irregular, no income is recognized on its return and it is recognized in marginal records outside the financial statements and are recognized as revenue in accordance with the cash basis when it is collected. • The commission income is represented in the value of the difference between the yield of the financing granted micro-enterprises and the accruals of the company's bank by deducting the services provided directly from the amounts collected from the entrepreneurs. • The benefits and commissions resulting from the performance of the service are recognized, according to the accrual basis as soon as the service is provided to the client unless those revenues cover more of the financial period are recognized on a time proportion basis. • An administrative commission of 8% of the loan granted to customers is collected on contracting in exchange for the issuance of the loan service and administrative commission revenue are proven in the income statement upon the issuance of the loan to the client. • A commission delay in payments of premiums is collected at rates agreed upon within the contracts and are recognized as soon as customers delayed payment on the basis of the extended delay. 43.4.11. Gains from securitization Gains from securitization is measured as the difference between the fair value of the consideration received or is still due to the company at the end of securitization process and the carrying amount of the securitization portfolios in the company’s books on the date of the transfer agreement. 43.5. Income tax Income tax expense comprises current and deferred tax. It is recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in OCI. 43.5.1. Current tax Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also includes any tax arising from dividends. Current tax assets and liabilities are offset only if certain criteria are met. 43.2.2. Foreign operations The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated at the exchange rates at the reporting date. The income and expenses of foreign operations are translated at the exchange rates at the dates of the transactions. Foreign currency differences are recognized in OCI and accumulated in the translation reserve, except to the extent that the translation difference is allocated to NCI. When a foreign operation is disposed of in its entirety or partially such that control, significant influence or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. If the Group disposes of part of its interest in a subsidiary but retains control, then the relevant proportion of the cumulative amount is reattributed to NCI. When the Group disposes of only part of an associate or joint venture while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss. 43.3. Discontinued operation A discontinued operation is a component of the Group’s business, the operations and cash flows of which can be clearly distinguished from the rest of the Group. Classification as a discontinued operation occurs at the earlier of disposal or when the operation meets the criteria to be classified as held-for-sale. When an operation is classified as a discontinued operation, the comparative statement of profit or loss and OCI is re-presented as if the operation had been discontinued from the start of the comparative period. 43.4. Revenue 43.4.1. Gain (loss) on sale of investments Gain (loss) resulting from sale of investments are recognized on transaction date and measured by the difference between cost and selling price less selling commission and expenses. In case of derecognizing of investments in associates, the difference between the carrying amount and the sum of both the consideration received and cumulative gain or loss that had been recognized in shareholders’ equity shall be recognized in income statement. 43.4.2. Dividend income Dividend income is recognized when declared. 43.4.3. Custody fee Custody fees are recognized when the service is provided and the invoice is issued. 43.4.4. Interest income and expenses Interest income and expenses are recognized in the income statement under “Interest income” item or “Interest expenses” by using the effective interest rate method of all instruments bearing interest other than those classified held for trading or which have been classified at inception “fair value through income statement”. 43.4.5. Fee and commission income Fee related to servicing the loan or facility are recognized in income when performing the service while the fees and commissions related to non-performing or impaired loans are not recognized, instead, they are to be recorded in marginal records off the financial position. Then they are recognized within the income pursuant to the cash basis when the interest income is collected. As for fees which represent an integral part of the actual return on the financial assets, they are treated as an amendment to the rate of actual return. 43.4.6. Brokerage commission Brokerage commission resulting from purchase of and sale of securities operations in favor of clients are recorded when operation is implemented and the invoice is issued. Financial Statemnets 224 225 43.6.4. Reclassification to investment property When the use of a property changes from owner-occupied to investment property. 43.7. Projects under construction Projects under construction are recognized initially at cost, the book value is amended by any impairment concerning the value of these projects cost includes all expenditures directly attributable to bringing the asset to a working condition for its intended use. Property and equipment under construction are transferred to property and equipment caption when they are completed and are ready for their intended use. 43.8. Intangible assets and goodwill - Goodwill Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses. - Research and development Expenditure on research activities is recognized in profit or loss as incurred. Development expenditure is capitalised only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognized in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost less accumulated amortisation and any accumulated impairment losses. - Other intangible assets Other intangible assets, are measured at cost less accumulated amortisation and any accumulated impairment losses. 43.9. Investment property Investment property is measured at cost on initial recognition. Subsequent to initial recognition investment property is measured at cost less accumulated depreciation and impairment loss, if any. Investment property is depreciated on a straight line basis over is useful life. The estimated useful life of investment property is 33 years. 43.10. Assets held for sale Non-current assets, or disposal groups comprising assets and liabilities, are classified as held-for-sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use. Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to sell. Any impairment loss on a disposal group is allocated first to goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets, employee benefit assets, investment property or biological assets, which continue to be measured in accordance with the Group’s other accounting policies. Impairment losses on initial classification as held-for-sale or held-for distribution and subsequent gains and losses on remeasurement are recognised in profit or loss. Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer amortised or depreciated, and any equity-accounted investee is no longer equity accounted. 43.11. Financial instruments 43.11.1. Recognition and initial measurement Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price. 43.5.2. Deferred tax Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for: • Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; • Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future. • Taxable temporary differences arising on the initial recognition of goodwill. Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits are determined based on business plans for individual subsidiaries in the Group. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized; such reductions are reversed when the probability of future taxable profits improves. Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent that it has become probable that future taxable profits will be available against which they can be used. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. For this purpose, the carrying amount of investment property measured at fair value is presumed to be recovered through sale, and the Group has not rebutted this presumption. Deferred tax assets and liabilities are offset only if certain criteria are met. 43.6. Property, plant and equipment 43.6.1. Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. The cost of certain items of property, plant and equipment . If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss. 43.6.2. Subsequent expenditure Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group. 43.6.3. Depreciation Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight-line method over their estimated useful lives, and is generally recognized in profit or loss. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Land is not depreciated. The estimated useful lives of property, plant and equipment for current and comparative periods are as follows: Estimated useful life - Buildings 20 - 50 years - Office furniture, equipment & electrical appliances 2 - 16.67 years - Computer equipment 3.33 - 5 years - Transportation means 3.33 - 8 years Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. Financial Statemnets 226 227 43.11.4. Financial assets – Assessment whether contractual cash flows are solely payments of principal and interest For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin. In assessing whether the contractual cash flows are solely payments of principal and interest, the Group considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Group considers: • Contingent events that would change the amount or timing of cash flows; • terms that may adjust the contractual coupon rate, including variable‑rate features; • Prepayment and extension features; and • Terms that limit the Group’s claim to cash flows from specified assets (e.g. non‑recourse features). A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount substantially represents unpaid amounts of principal and interest on the principal amount outstanding, which may include reasonable compensation for early termination of the contract. Additionally, for a financial asset acquired at a discount or premium to its contractual par amount, a feature that permits or requires prepayment at an amount that substantially represents the contractual par amount plus accrued (but unpaid) contractual interest (which may also include reasonable compensation for early termination) is treated as consistent with this criterion if the fair value of the prepayment feature is insignificant at initial recognition. 43.11.5. Financial assets – Subsequent measurement and gains and losses Financial assets at FVTPL These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss. Financial assets at amortised cost These assets are subsequently measured at amortised cost using the effec tive interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss. Debt investments at FVOCI These assets are subsequently measured at fair value. Interest income calcu lated using the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. Equity investments at FVOCI These assets are subsequently measured at fair value. Dividends are rec ognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are never reclassified to profit or loss. 43.11.6. Financial liabilities – Classification, subsequent measurement and gains and losses Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held‑for‑trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss. 43.11.2. Classification and subsequent measurement Financial assets On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI – debt investment; FVOCI – equity investment; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model. A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL: • it is held within a business model whose objective is to hold assets to collect contractual cash flows; and • its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL: • it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and • its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in OCI. This election is made on an instrument‑by‑instrument basis. All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. 43.11.3. Financial assets – Business model assessment The Group makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management. The information considered includes: • The stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether management’s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realizing cash flows through the sale of the assets; • How the performance of the portfolio is evaluated and reported to the Group’s management; • The risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed; • How managers of the business are compensated – e.g. whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and • The frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity. Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, consistent with the Group’s continuing recognition of the assets. Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL. If the company determines that its business model has changed in a way that is significant to its operations, then all affected assets are reclassified from the first day of the next reporting period (the reclassification date). The change in business model has to be affected before the reclassification date. In order for reclassification to be appropriate, the company cannot engage in activities consistent with its former business model after the date of change in business model. Prior periods are not restated. Financial Statemnets 228 229 If the hedge no longer meets the criteria for hedge accounting or the hedging instrument is sold, expires, is terminated or is exercised, then hedge accounting is discontinued prospectively. When hedge accounting for cash flow hedges is discontinued, the amount that has been accumulated in the hedging reserve remains in equity until, for a hedge of a transaction resulting in the recognition of a non‑financial item, it is included in the non‑financial item’s cost on its initial recognition or, For other cash flow hedges, it is reclassified to profit or loss in the same period or periods as the hedged expected future cash flows affect profit or loss. If the hedged future cash flows are no longer expected to occur, then the amounts that have been accumulated in the hedging reserve and the cost of hedging reserve are immediately reclassified to profit or loss. Net investment hedges When a derivative instrument or a non‑derivative financial liability is designated as the hedging instrument in a hedge of a net investment in a foreign operation, the effective portion of, for a derivative, changes in the fair value of the hedging instrument or, for a non‑derivative, foreign exchange gains and losses is recognised in OCI and presented in the translation reserve within equity. Any ineffective portion of the changes in the fair value of the derivative or foreign exchange gains and losses on the non‑derivative is recognised immediately in profit or loss. The amount recognised in OCI is reclassified to profit or loss as a reclassification adjustment on disposal of the foreign operation. 43.12. Share capital 43.12.1. Ordinary shares Incremental costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity. Income tax relating to transaction costs of an equity transaction are accounted for in accordance with EAS 24. 43.12.2. Repurchase and reissue of ordinary shares (treasury shares) When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs is recognized as a deduction from equity. Repurchased shares are classified as treasury shares and are presented in the treasury share reserve. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity and the resulting surplus or deficit on the transaction is presented within share premium. 43.13. Legal reserve The Company's statutes provides for deduction of a sum equal to 5% of the annual net profit for formation of the legal reserve. Such deduction will be ceased when the total reserve reaches an amount equal to half of the Company's issued capital and when the reserve falls below this limit, it shall be necessary to resume. 43.14. Impairment 43.14.1 Non-derivative financial assets Financial instruments and contract assets The Group recognises loss allowances for Expected Credit Loss (ECLs) on: • Financial assets measured at amortised cost; • Debt investments measured at FVOCI; • contract assets. The Group also recognises loss allowances for ECLs on loans receivables. The Group measures loss allowances at an amount equal to lifetime ECLs, except for the following, which are measured at 12‑month ECLs: • Debt securities that are determined to have low credit risk at the reporting date; and • Other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition. 43.11.7. Derecognition Financial assets The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. The Group enters into transactions whereby it transfers assets recognised in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognised. Financial liabilities The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. The Group also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non‑cash assets transferred or liabilities assumed) is recognised in profit or loss. 43.11.8. Offsetting Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously. 43.11.9. Derivative financial instruments and hedge accounting The Group holds derivative financial instruments to hedge its foreign currency and interest rate risk exposures. Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and certain criteria are met. Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are generally recognised in profit or loss. The Group designates certain derivatives as hedging instruments to hedge the variability in cash flows associated with highly probable forecast transactions arising from changes in foreign exchange rates and interest rates and certain derivatives and non‑derivative financial liabilities as hedges of foreign exchange risk on a net investment in a foreign operation. At inception of designated hedging relationships, the Group documents the risk management objective and strategy for undertaking the hedge. The Group also documents the economic relationship between the hedged item and the hedging instrument, including whether the changes in cash flows of the hedged item and hedging instrument are expected to offset each other. Cash flow hedges When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognised in OCI and accumulated in the hedging reserve. The effective portion of changes in the fair value of the derivative that is recognised in OCI is limited to the cumulative change in fair value of the hedged item, determined on a present value basis, from inception of the hedge. Any ineffective portion of changes in the fair value of the derivative is recognised immediately in profit or loss. The Group designates only the change in fair value of the spot element of forward exchange contracts as the hedging instrument in cash flow hedging relationships. The change in fair value of the forward element of forward exchange contracts (forward points) is separately accounted for as a cost of hedging and recognised in a costs of hedging reserve within equity. When the hedged forecast transaction subsequently results in the recognition of a non‑financial item such as inventory, the amount accumulated in the hedging reserve and the cost of hedging reserve is included directly in the initial cost of the non‑financial item when it is recognised. For all other hedged forecast transactions, the amount accumulated in the hedging reserve and the cost of hedging reserve is reclassified to profit or loss in the same period or periods during which the hedged expected future cash flows affect profit or loss. Financial Statemnets 230 231 43.14.6. Non-financial assets • At each reporting date, the Group reviews the carrying amounts of its non‑financial assets (other than, investment property, contract assets and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually for impairment. • For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination. • The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre‑tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. • An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. • Impairment losses are recognised in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. • An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. 43.15. Provisions Provisions are recognized when the Group has a legal or constructive current obligation as a result of a past event and it’s probable that a flow of economic benefits will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessment of the time value of money and, where appropriate, the risks specific to the liability. Provisions are reviewed at the financial position date and amended (when necessary) to represent the best current estimate. 43.16. Treasury bills Treasury bills are recorded at nominal value and the unearned income is recorded under the item of "creditors and other credit balances". Treasury bills are presented on the financial position net of the unearned income. 43.17. Trade, and notes receivables, debtors and other debit balances • Trade, notes receivables, debtors and other debit balances are stated at nominal value less impairment losses. • The Company’s lessees and the leased assets are regularly classified & evaluated and their obligations are reduced by the rent value paid in each financial period, and with the assurance of the availability of adequate guarantee to collect the client’s rent values. 43.18. Cash and cash equivalents For the purpose of preparing the statement of cash flows, cash and cash equivalents includes the balances, whose maturity do not exceed three months from the date of acquisition, cash on hand, cheques under collection and due from banks and financial institutions. 43.19. Profit sharing to employees The holding company pays 10% of its cash dividends as profit sharing to its employees provided that it will not exceed total employees’ annual salaries. Profit sharing is recognized as a dividend distribution through equity and as a liability when approved by the Company’s shareholders. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical experience and informed credit assessment, that includes forward‑looking information. The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due. unless it can be rebutted. The Group considers a financial asset to be in default when: • The debtor is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to actions such as realising security (if any is held); or • The financial asset is more than 90 days past due unless it can be rebutted. Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. 12‑month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months). The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk. 43.14.2. Measurement of ECLs ECLs are a probability‑weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset. 43.14.3. Credit-impaired financial assets At each reporting date, the Group assesses whether financial assets carried at amortised cost and debt securities at FVOCI are credit‑impaired. A financial asset is ‘credit‑impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit‑impaired includes the following observable data: • Significant financial difficulty of the debtor; • A breach of contract such as a default or being more than 90 days past due; • The restructuring of a loan or advance by the Group on terms that the Group would not consider otherwise; • It is probable that the debtor will enter bankruptcy or other financial reorganisation; or • The disappearance of an active market for a security because of financial difficulties. 43.14.4. Presentation of allowance for ECL in the statement of financial position Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognised in OCI. 43.14.5. Write-off The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For individual customers, the Group has a policy of writing off the gross carrying amount when the financial asset is 180 days past due based on historical experience of recoveries of similar assets. For corporate customers, the Group individually makes an assessment with respect to the timing and amount of write‑off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due. Financial Statemnets 232 233 43.22. Leases At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in EAS 49. 43.22.1. As a lessee At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of its relative stand‑alone prices. However, for the leases of property the Group has elected not to separate non‑lease components and account for the lease and non‑lease components as a single lease component. The Group recognises a right‑of‑use asset and a lease liability at the lease commencement date. The right‑of‑use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right‑of‑use asset is subsequently depreciated using the straight‑line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right‑of‑use asset reflects that the Group will exercise a purchase option. In that case the right‑of‑use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right‑of‑use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased. Lease payments included in the measurement of the lease liability comprise the following: fixed payments, including in‑substance fixed payments; variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; amounts expected to be payable under a residual value guarantee; and the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in‑substance fixed lease payment. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right‑of‑use asset, or is recorded in profit or loss if the carrying amount of the right‑of‑use asset has been reduced to zero. The Group presents right‑of‑use assets that do not meet the definition of investment property in ‘property, plant and equipment’ and lease liabilities in ‘loans and borrowings’ in the statement of financial position. Short-term leases and leases of low-value assets The Group has elected not to recognise right‑of‑use assets and lease liabilities for leases of low – value assets and short‑term leases, including IT equipment. The Group recognises the lease payments associated with these leases as an expense on a straight‑line basis over the lease term. 43.20. Employees benefits 43.20.1. Share based payments Equity settled transactions For equity-settled share-based payment transactions, the company measure the services received, and the corresponding increase in equity, indirectly, by reference to the fair value of the equity instruments granted. The fair value of those equity instruments is measured at grant date. Vesting conditions, other than market conditions, are taken into account by adjusting the number of equity instruments included in the measurement of the transaction amount so that, ultimately, the amount recognized for services received as consideration for the equity instruments granted are based on the number of equity instruments that eventually vest. Hence, on a cumulative basis, no amount is recognized for services received if the equity instruments granted do not vest because of failure to satisfy a vesting condition. The company recognize an amount for the services received during the vesting period based on the best available estimate of the number of equity instruments expected to vest and revise that estimate, if necessary, if subsequent information indicates that the number of equity instruments expected to vest differs from previous estimates. On vesting date, the entity shall revise the estimate to equal the number of equity instruments that ultimately vested. 43.21. Micro-enterprises receivables 43.21.1. Credit policy Funding Consideration • Funding are granted to clients who have previous experience not less than one year in his current activity which is confirmed by the client with adequate documentation and field inquiry. • Funding are granted to the client which it’s installment is suitable according to his predictable income activity and this done throw analyzing client's revenues and expenses and his foreseeable marginal income, and this done by the branches specialists of the company on the prepared form for this purpose (financial study form and credit decision). • Before grant funding, a client activity field inquiry is done. • Recording inquiries results about client and guarantor with inquiring forms of the company which reveal client’s activity (visit form & Inquiry form). • The company prohibit grant funding for new client unless the activity is existing with previous one year experience where the granted funds be within a minimum 1 000 EGP and maximum • 30 000 EGP with loan duration of 12 months. • Inquiries for clients are performed by I-Score Company before granting and in case of approval on granting. The credit limit of the client is considered when calculating the client’s revenue and expenses. Client's Life Insurance The insurance process on the client is performed with the authorized companies from insurance supervisory authority. Client's Following up The company keeps specialists in branches from following up all regular clients, and irregular with continuous application of that during finance period with judging on their commitment in paying the remaining installments and this done through recording visits for clients with daily basis and also with data base provided by computer system for all branches all over the republic. Impairment loss of micro financed loans The company at the date of the financial statements estimates the impairment loss of micro financed loans, in the light of the basis and rules of granting credit and forming the provisions according to the Board of Directors decision of the Financial Supervisory Authority No. (173) issued on December 21, 2014 to deal with the impairment loss. Financial Statemnets 234 235 44. New editions and amendments to Egyptian accounting standards • On 6 March 2023, the Prime Minister's Decree No. (883) of 2023 was issued amending some provisions of the Egyptian accounting standards, and on 3 March 2024, another decision was issued by the Prime Minister No. (636) of 2024 amending some other provisions of the Egyptian accounting standards. • On October 23, 2024, the Prime Minister issued Decision No. 3527 of 2024, which introduces and adds the new Egyptian Accounting Standard No. (51) titled "Financial Statements in Hyperinflationary Economies." and the following is a summary of the most important of those amendments: New or reissued standards Summary of the most significant amendments Potential impact on the financial statements Effective date Egyptian Accounting Standard No. (50) “Insurance Con tracts" 1- This standard determines the principles of recognition of insurance contracts falling within the scope of this stan dard, and determines their measurement, presentation, and disclosure. The objective of the standard is to ensure that the company provides appropriate information that truthfully reflects those contracts. This information provides us ers of the financial statements with the basis for assessing the impact of insurance contracts on the company’s financial position, financial performance, and cash flows. 2- Egyptian Accounting Stan dard No. (50) replaces and cancels Egyptian Accounting Standard No. 37 "Insurance Contracts". 3- Any reference to Egyptian Accounting Standard No. (37) in other Egyptian Accounting Standards to be replaced by Egyptian Accounting Stan dard No. (50). 4- The following Egyptian Accounting Standards have been amended to comply with the requirements of the application of Egyptian Accounting Standard No. (50) "Insurance Contracts", as follows: • Egyptian Accounting Stan dard No. (10) "Fixed Assets ". • Egyptian Accounting Stan dard No. (23) "Intangible Assets". • Egyptian Accounting Stan dard No. (34) " Investment property". Management is currently evaluating the potential im pact on the financial state ments from the application of the standard. Egyptian Accounting Stan dard No. (50) is effective for annual financial periods starting on or after July 1, 2024, and if the Egyptian Ac counting Standard No. (50) shall be applied for an earlier period, the company should disclose that fact. 43.22.2. As a lessor At inception or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand- alone prices. When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset. When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sub-lease as an operating lease. If an arrangement contains lease and non-lease components, then the Group applies EAS 11 to allocate the consideration in the contract. The Group applies the derecognition and impairment requirements in EAS 47 to the net investment in the lease. The Group further regularly reviews estimated unguaranteed residual values used in calculating the gross investment in the lease. The Group recognises lease payments received under operating leases as income on a straight- line basis over the lease term as part of ‘other revenue’. 43.23. Operating segment A segment is a distinguishable component of the Group that is engaged either in providing products or services (business segment) or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments. The Group’s primary format for segment reporting is based on business segment. Financial Statemnets 236 237 New or reissued standards Summary of the most significant amendments Potential impact on the financial statements Effective date The new Egyptian Accounting Stan dard No. (51) "Finan cial Statements in Hyperinflationary Economies." 1- This standard must be ap plied to financial statements, including consolidated finan cial statements for any entity whose functional currency is in an economy classified as hyperinflationary. 2- This standard applies to fi nancial statements, including independent and individual fi nancial statements for any en tity whose functional currency is in an economy classified as hyperinflationary. It also applies to any group that has foreign operations, including branches, subsidiaries, sister companies, joint ventures, or others in an economy classi fied as hyperinflationary. 3- This standard requires the adjustment of financial statements prepared in the currency of a hyperinflationary economy, aiming to provide useful information about the financial position of the entity, its performance, and changes in its financial position for a wide range of users to make economic decisions based on a fair presentation of the financial statements. A decision will be issued by the Prime Minister or an authorized representative to specify the start and end dates for the financial peri od(s) during which this stan dard must be applied when the functional currency is the local currency, taking into account the following: (a) This standard must be applied to the financial statements of the entity starting from the begin ning of the financial period in which the economy is classified as hyperinflation ary. Comparative figures presented in the financial statements must be adjust ed in accordance with the requirements of this stan dard. (b) As an exception to the requirements of paragraph 39 of Egyptian Accounting Standard No. 1, personal estimates may be used when applying this stan dard for accounting for foreign operations, such as branches, subsidiaries, sister companies, or joint ventures, to determine whether the economy is hyperinflation ary. (c) This standard must be applied to all entities whose functional currency is the currency in which the econ omy has been classified as hyperinflationary. New or reissued standards Summary of the most significant amendments Potential impact on the financial statements Effective date Accounting Inter pretation No. (2) "Carbon Reduction Certificates" Carbon Credits Certificates: Are financial instruments sub ject to trading that represent units for reducing greenhouse gas emissions. Each unit represents one ton of equiva lent carbon dioxide emissions, and are issued in favor of the reduction project developer (owner/non-owner), after approval and verification in accordance with internation ally recognized standards and methodologies for reducing carbon emissions, carried out by verification and certifica tion bodies, whether local or international, registered in the list prepared by the Financial Regulatory Authority “FRA” for this purpose. Companies can use Carbon Credits Certificates to meet voluntary emissions reduction targets to achieve carbon trading or other targets, which are trad ed on the Voluntary Carbon Market “VCM”. The management is cur rently studying the financial implications of applying the accounting interpretation to the Company's financial statements. The application starts on or after the first of January 2025, early adaption is allowed.