Egyptian fintech MNT-Halan reported a sharp increase in third-quarter net profit, driven by a deliberate rebalancing of its loan book away from riskier small business lending and toward consumer finance and wealth management, as the company transitions into a broader financial services platform.
The Cairo-based company, which began trading on the Egyptian Exchange on October 20, reported net profit of EGP 836mn ($14.9mn) for the three months to September 30. This represents a 2.1-fold increase compared with the previous quarter, though net profit was down 31 per cent year-on-year due to an exceptionally strong comparative base in the third quarter of 2025.
Revenues for the quarter reached EGP 5.4bn ($96.8mn), a 15 per cent increase quarter-on-quarter. The company’s net profit margin expanded to 15 per cent, up from 8 per cent in the second quarter, while its annualized return on average equity stood at 41.1 per cent.
The results offer the first major financial snapshot of MNT-Halan since its highly anticipated initial public offering (IPO), which raised EGP 4bn ($71.3mn) in new capital. According to founder and chief executive Mounir Nakhla, the fresh capital increased the company’s equity base by approximately 45 per cent to nearly EGP 13bn ($231.6mn), providing a substantial buffer for its next phase of growth.
De-risking the loan book
A central pillar of MNT-Halan’s strategy in the third quarter has been a structural shift in its lending portfolio. The group has actively curtailed its exposure to higher-risk SME lending, which previously formed a larger share of its disbursements.
Higher-risk SME lending declined to 15 per cent of total disbursements in the third quarter, down from 25 per cent in the same period a year earlier. As a result, SME finance now represents 29 per cent of the company’s gross loan book, down from 33 per cent in the third quarter of 2025.
This pullback was offset by aggressive growth in consumer finance. Disbursements in this segment rose 42 per cent year-on-year to EGP 13bn ($231.6mn) during the first nine months of 2026, with the segment now accounting for 29 per cent of the loan book, up from 23 per cent a year earlier. Microfinance remained the largest single component of the portfolio, maintaining a 39 per cent share and a dominant 25 per cent market share in Egypt.
Consequently, the group’s gross loan book grew 14 per cent year-on-year to EGP 48.1bn ($857mn) as of September 30. The company noted that the shift toward lower-risk, higher-volume retail products offers a more attractive risk profile amid a challenging macroeconomic environment in Egypt, marked by high inflation and elevated interest rates.
The “super-app” expansion
Beyond lending, MNT-Halan is aggressively scaling its non-lending revenues to embed itself as a comprehensive financial ecosystem. The company’s payments and wealth management verticals saw significant traction during the quarter.
Cumulative cards issued reached 1.6mn, with active cards surpassing 700,000, driving a 15 per cent year-on-year increase in card throughput to EGP 36.8bn ($655.6mn). In the wealth segment, outstanding investments reached EGP 4.6bn ($82mn), a 4.9-fold increase year-on-year.
Crucially, the company leveraged its recently acquired custodian license from the Financial Regulatory Authority (FRA) to launch a digital brokerage offering, allowing customers to trade equities on the Egyptian Exchange through its app. Brokerage execution value reached EGP 6.7bn ($119.3mn) in the third quarter alone, doubling year-on-year. The company also launched a small-ticket factoring business aimed at underserved small enterprises.
Capital management and efficiency
Despite the inflationary pressures in Egypt, MNT-Halan reported improved operational efficiency. Its cost-to-income ratio improved to 59.4 per cent for the first nine months of 2026, down from 62 per cent for the full year of 2025. Selling, general and administrative expenses rose by just 4 per cent year-on-year, well below inflation levels.
The company also continued to utilise its receivables offloading strategy to fund growth without overleveraging its balance sheet. In the third quarter, MNT-Halan offloaded EGP 6.8bn ($121.1mn) of principal receivables at a margin of 34.3 per cent, up from 28.7 per cent a year earlier. This allowed the company to release EGP 1.6bn ($28.5mn) in restricted cash, boosting available liquidity.
MNT-Halan’s total assets stood at EGP 43.1bn ($767.1mn) at the end of September, with total debt at EGP 27.9bn ($497.7mn). The company noted that the EGP 4bn IPO proceeds, completed in October, were not reflected in this specific balance sheet but will materially reduce its net debt position and support its expansion plans.
Looking ahead, Mr. Nakhla stated that the company’s priorities are to accelerate digital transformation and deepen customer engagement. He added that MNT-Halan plans to scale artificial intelligence-driven capabilities across the business, including AI-powered credit agents to strengthen underwriting and mitigate risk, as it targets “sustainable profitability and long-term shareholder value.”