Mounir Nakhla’s MNT-Halan more than doubles profit to $16m

Egyptian fintech tycoon Mounir Nakhla’s MNT-Halan more than doubled its quarterly profit to about $16 million in its first results since listing on the Egyptian Exchange, as the lender cut funding costs and sold more loans to investors.

Net income rose to EGP 836 million ($16 million) in the third quarter, more than twice the figure for the previous three months, EnterpriseAM reported. Revenue climbed 15% from the second quarter to EGP 5.4 billion ($103 million).

Profitability improved sharply. The company’s annualized return on average equity jumped 20 percentage points to 41.1%, while interest expense fell 26% from the previous quarter.

A large part of the gain came from selling loans. MNT-Halan offloaded EGP 6.8 billion ($130 million) of receivables to investors at a margin of 34.3%, up from 28.7% a year earlier. Income from those sales rose 17% to EGP 2.3 billion ($44 million).

The results also included a one-off gain of EGP 279 million from waiving an intercompany loan at a subsidiary outside Egypt. Even without it, pre-tax income roughly doubled from the second quarter, according to EnterpriseAM’s calculation.

However, the year-on-year picture was weaker. Net income fell 31% from the same quarter of 2025, and revenue slipped 2%, as interest income dropped 40% and credit costs rose 88%. The lender’s on-book yield fell to 30.3% in the first nine months, from 47.7% in 2025.

Over the first nine months, net income fell 11% to EGP 1.75 billion ($33.5 million), while revenue rose 11% to EGP 15.4 billion ($294 million).

Meanwhile, the loan book kept growing. Gross loans rose 14% to EGP 48.1 billion ($920 million), with consumer finance climbing to 29% of the portfolio. The company also cut higher-risk lending to 15% of new loans, from 25%.

Nakhla said the company’s recent capital raise “places us in an exceptionally strong financial position within our sector.” MNT-Halan completed an EGP 4 billion ($76.5 million) capital injection after its listing.

The results are the first since MNT-Halan’s Cairo debut on Oct. 20. Its parent sold 20% of the Egyptian business for about EGP 7.84 billion ($150 million), in what Billionaires.Africa described as Egypt’s biggest listing in years.

Demand was strong. The institutional tranche was 11.2 times oversubscribed and the retail portion 43.6 times, with Commercial International Bank and Redwheel taking more than a third of the base offering as cornerstone investors. The shares closed their first day up 6.6% at EGP 26.12.

The company is also expanding beyond lending. It launched a digital brokerage and a small-ticket factoring service in the third quarter, while customer investments rose almost fivefold to EGP 4.6 billion.

As a result, the first quarterly report since listing gives Nakhla a strong start as a public company, even as yields come under pressure.