Q2 2026 Fawry for Banking Technology and Electronic Payment SAE Earnings Call

August 18, 2026

[Analyst] (HC Brokerage): 26 earnings call hosted by HC Brokerage. Today we have with us from Fawry's management, Mr. Ashraf Sabry, CEO and Managing Director, Hesham Bahaa, Group CFO, Moustafa El Nahhas, Technology CEO, Hossam Ezz, Large Enterprise CEO, Hassan Abdelgelil, IR and Investment Director. Management will start with a brief presentation of the results, followed by a Q&A session. I now hand the floor to management. Enjoy the call.

[Analyst] (HC Brokerage): 2026 Earnings Call hosted by HC Brokerage. Today we have with us from Fawry's management, Mr. Ashraf Sabry, CEO and Managing Director, Hesham Bahaa, Group CFO, Moustafa El Nahhas, Technology CEO, Hossam Ezz, Large Enterprise CEO, Hassan Abdelgelil, IR and Investment Director. Management will start with a brief presentation of the results, followed by a Q&A session. I now hand the floor to management. Enjoy the call.

Speaker #1: 26 earnings call hosted by HC Brokerage. Today we have with us, from Fawry's management, Mr. Ashraf Sabri, CEO and Managing Director; Hisham Bahai, Group CFO; Mustafa Nahas, Technology CEO; Hossam Aiz, Large Enterprise CEO; Hassan Abdegiriel, IR; and Investment Director.

Speaker #1: Management will start with a brief presentation of the results, followed by a Q&A session. I now hand the floor to management. Enjoy the call.

Speaker #2: Thank you for attending. I mean, we'll start the presentation right now. Hassan will take us through the presentation. Please don't hesitate to ask any questions.

Ashraf Sabry: Thank you for attending. We will start the presentation right now. Hassan will take us through the presentation. Please don't hesitate to ask any question, and we will go from here. Hassan, please go ahead.

Speaker #2: And we'll go from here. Hassan, please go ahead.

Speaker #3: Thank you. Thank you, Ahmed. So, in Q2 2026, the company achieved year-over-year revenue growth of 43%. EBITDA margin reached 57.2%, and net income margin was 31%.

Hassan Abdelgelil: Thanks, Ashraf. Thanks, Mohamed. In Q2 2026, the company achieved a year-over-year revenue growth of 43%. EBITDA margin reached 57.2%, and net income margin of 31%. As you can see on the right-hand side, the acceptance business throughput grew by 33% to reach EGP 89 billion. The total loan portfolio exceeded the EGP 6.6 billion mark, growing by 71% over the past year. Gross profit and EBITDA margin are closely mimicking the revenue growth, with the margins relatively stable, while net income grew by 34% year over year. On the quarterly throughput and the revenue side, throughput achieved a 6.9% growth, reaching EGP 334 billion. Revenue is up by 43%, as we said, to EGP 2.8 billion. As you can see, the revenue diversification strategy is still continuing with the contribution in front of you.

Speaker #3: As you can see on the right-hand side, the acceptance business throughput grew by 53% to reach 89 billion. The total loan portfolio exceeded the 6.6 billion mark, growing by 71% over the past year.

Speaker #3: Gross profit and EBITDA margin are closely mimicking the revenue growth, with margins relatively stable while net income grew by 54% year-over-year. On the quarterly throughput and the revenue side, throughput achieved 69% growth, reaching EGP 334 billion.

Speaker #3: Revenue is up by 43%, as we said, to EGP 2.8 billion. As you can see, the revenue diversification strategy is still continuing, with the contribution in front of you.

Speaker #3: As you can see, EDP continues to decline in terms of total revenue, same as guided before. Earlier this year, when we were guiding for the full-year results, EDP was around 19%.

Hassan Abdelgelil: As you can see, ADP continues to decline in terms of total revenue, same as guided before, earlier this year when we were guiding for the full-year results. ADP is around 19%. Financial services continue to be the major contributor to the top-line business, with 39% of the growth and 32% of the total figure that you can see in Q2 2026. Acceptance and agent banking collectively contribute to 40% of our revenue, while supply chain technology and others are relatively stable compared to the second quarter in the previous year. Gross profit and gross profit margin, as you can see, are closely monitoring the revenue performance. Relatively stable gross profit margin, only declining by around 0.4% to 68.3%, achieving a value of EGP 1.9 billion. On the EBITDA, again, same story.

Speaker #3: Financial services continue to be the major contributor to the top-line business, with 39% of the gross and 32% of the total figure, as you can see in Q2 2026.

Speaker #3: Acceptance and agent banking collectively contribute to 40% of our revenue, while supply chain technology and others are relatively stable compared to the previous quarter and the second quarter of the previous year.

Speaker #3: Gross profit and gross profit margin, as you can see, are closely monitoring the revenue performance. The gross profit margin is relatively stable, only declining by around 0.4% to 68.3%.

Speaker #3: Achieving a value in Egyptian pounds. On the EBITDA, again, same story, and this comes despite the slight decline in gross profit margins, which means that the company, as always, has been able to save on the SG&A.

Hassan Abdelgelil: This comes despite the slight decline in gross profit margins, which means that the company, as always, has been able to save on the SG&A and to be able to achieve higher economies of scale as we onboard new clients and onboard new services on our existing ecosystem and do more on cross-selling basis. EBITDA reached EGP 1.6 billion. Net income increased by 34% year over year. This is higher than we witnessed in Q1 2026. The company is going back to the higher figures that were achieved before. Net income margin stands at 31% year over year versus last year, versus 53% versus last year. If we dive more into the payments business, as you can see, we are achieving growth over the different operational KPIs. Number of customers reached 55.4. Number of services increased by 19% to 4,800. Total POSs.

Speaker #3: And to be able to achieve higher economies of scale as we onboard new clients and onboard new services on our existing ecosystem, and do more of the cross-selling basis.

Speaker #3: So EBITDA reached EGP 1.6 billion. Net income increased by 34% year-over-year. This is higher than we've witnessed in the first quarter of 2026.

Speaker #3: So the company is going back to the higher figures that were at 31% year-over-year, versus last year, versus 53% versus last year. If we dive more into the payments business, as you can see, we're achieving growth over the different operational KPIs.

Speaker #3: The number of customers reached 55.4 million. The number of services increased by 19% to 4,800. Regarding total POSs, since last quarter we've been communicating that we are deliberately rationalizing our POS network.

Hassan Abdelgelil: Since last quarter, we have been communicating that we are deliberately rationalizing our POS network. Versus last year, there is a bit of a decline, but versus last quarter, there is a small upside. Average revenue per transaction increased 31% year over year to EGP 3.4 per transaction. Total transactions increased by 4%, while the average transaction value increased by 63%. Sorry.

Speaker #3: So, versus last year, there is a bit of a decline, but versus last quarter, there is a small upside. Average revenue per transaction increased 31% year-over-year to EGP 3.4 per transaction.

Speaker #3: Total transactions increased by 4%, while the by 63%—sorry, give me a second, please. Yeah. On the ADP business, ADP increased by 7% on the throughput level and 3% on the revenue side.

Ashraf Sabry: Give me a second, please.

Hassan Abdelgelil: On the ADP business, ADP increased by 7% on the throughput level and 3% on the revenue side. Again, as communicated before, we expect ADP business to grow on a single digit in 2026 due to the shift from regular cash payments towards more digital payments such as myfawry and other acceptance channels. On the acceptance business and agent banking, acceptance increased by 19%, while agent banking increased by 109% year over year. The online acceptance has achieved a 30% year-over-year growth higher than in-store acceptance, which is due to the growth in our market share on the online acceptance or the e-commerce segment overall. Our acceptance enabled POS increased by 2% year over year to 365,000 POSs. Supply chain, it is doing well, growing by around 40% versus last year to EGP 167 million.

Speaker #3: Again, as communicated before, we expect ADP business to grow in the single digits in 2026, due to the shift from regular cash payments towards more digital payments, such as MySalary and other acceptance channels.

Speaker #3: On the acceptance business and agent banking, acceptance increased by 19%, while agent banking increased by 109% year-over-year. The online acceptance has achieved a 30% year-over-year growth, higher than the in-store acceptance, which is due to the growth in our market share in the online acceptance, or the e-commerce segment overall.

Speaker #3: Our acceptance-enabled POS increased by 2% year-over-year to 365,000 POSs. Supply chain is doing well, growing by around 40% versus last year, to EGP 167 million.

Speaker #3: Moving into the financial services segment, which includes microfinance, consumer finance, the insurance business, as well as the prepaid card and money market fund. The loan portfolio for the micro and SME loan business has increased to 3.4 billion.

Hassan Abdelgelil: Moving to the financial services segment, which includes microfinance, consumer finance, the insurance business, as well as the prepaid card and money market fund. The loan portfolio for the micro and SME loan business has increased to EGP 3.4 billion, while revenue increased by 25% to EGP 369 million. As you can see on the left-hand side, we have been able to onboard 123,000 merchants over the BNPL for business, which we call Alnota, with credit limits exceeding EGP 1.75 billion. This new service is one of our core services that we enable for merchants and focus on activation and focus on the usage regarding the Alnota limit to be able to grow our revenue on this side. However, it does not contribute to the portfolio at the same magnitude. Number of loans granted in Q2 2026 reached 35,000, up by around 58% year over year.

Speaker #3: While revenue increased to 25% increased by 25% to 369 million 369 million Egyptian pounds. As you can see on the left-hand side, we have been able to onboard 123,000 merchants over the BMPL for business, which we call Annota.

Speaker #3: With credit limits exceeding $1.75 billion, this segment is how this new service is one of our core services that we enable for merchants, and focus on activation and usage regarding the Annota limit to be able to grow our revenue on this side.

Speaker #3: However, it does not contribute to the portfolio at the same magnitude. The number of loans granted in Q2 2026 reached 35,000, up by around 58% year-over-year.

Speaker #3: The disbursement increased by 61% year-over-year in Q2 to reach 109,906 million Egyptian pounds, versus the 560 million. This is, of course, triggered or driven by the increase in the business that we do through Annota, as communicated before.

Hassan Abdelgelil: The disbursement increased by 61% year over year in Q2 to reach EGP 906 million versus EGP 560 million. This is, of course, triggered or driven by the increase in the business that we do through Alnota, as communicated before. The average loan portfolio per staff increased by 72%, showing higher efficiency, while provisions ratio at the end of Q2 2026 stood at 6.4% versus 5.4% at the end of Q2 2025. On the other financial services, on the consumer finance business, mainly, loan portfolio exceeded EGP 3.2 billion, up by 83% year over year. The total spent for the Q, in other words, total disbursements for the Q, stood at EGP 1.8, almost EGP 1.9 million. This is up by 64%. The average value per transaction came at EGP 2,000 with the average transactions per customer at 4.7 transactions.

Speaker #3: The average loan portfolio per staff increased by 72%, showing higher efficiency, while the provisions ratio as at the end of Q2 2026 stood at 6.4% versus 5.4% at the end of Q2 2025.

Speaker #3: On the other financial services, on the consumer finance business mainly, the loan portfolio exceeded EGP 3.2 billion, up by 83% year-over-year. The total spent for the quarter—in other words, total disbursements for the quarter—stood at almost EGP 1.9 billion.

Speaker #3: This is up by 64%. The average value per transaction came in at EGP 2,000, with the average transactions per customer at 4.7 transactions. This shows that our consumer finance, or our BNPL business, is mainly into lower value but higher velocity transactions.

Hassan Abdelgelil: This shows that our consumer finance or our BNPL business is mainly into lower value but higher velocity transactions in order to be able. We are more interested in being into the day-to-day of the clients rather than just one big transaction and never hearing about the client ever again. In Q2 2026, our collection efficiency reached 93% in the first month, 97% in month 2, and 98% in month 3. Provision ratio for consumer finance stood at 4.7% in Q2 2026 versus 6% in Q2 2025. Our insurance brokerage revenue grew by 36% year over year to almost EGP 23 million and, of course, the whole financial services business nearly doubled versus last year.

Speaker #3: Our in order to be able because we we're more interested in being the in the into the day-to-day of the clients rather than just one big transaction and never hitting about the the client average again.

Speaker #3: In Q2 2026, our collection efficiency reached 93% in the first month, 97% in month two, and 98% in month three. The provision ratio for consumer finance stood at 4.7% in Q2 2026 versus 6% in Q2 2025.

Speaker #3: Our insurance brokerage revenue grew by 36% year-over-year to 23, almost 23 Egyptian million pounds. And of course, the the the whole financial services business is nearly doubled versus last year.

Speaker #3: On the My Salary app and the prepaid card, we have reached—our My Salary app has reached 28 million downloads since the beginning of the year.

Hassan Abdelgelil: On the myfawry app and the prepaid card, myfawry app has reached 28 million downloads since the beginning of the year, while our annualized throughput for June 2026 reached EGP 28 billion. In terms of prepaid cards, we have reached 3.8 million prepaid cards, up by 160% year over year. In terms of our digital transactions, as you know, we host mobile wallet transactions, which increased by 72% versus last year, while in terms of value, it increased by 100% for the Q, reaching EGP 330 billion. In terms of digital transactions, which include other than the mobile wallet transactions, include myfawry, the prepaid card, the banking and acceptance business as well. It increased by 44% year over year, while the total transactions increased only by 4% year over year.

Speaker #3: While our annualized throughput for June 2026 reached EGP 48 billion, in terms of prepaid cards, we have achieved—we have reached 3.8 million prepaid cards, up by 116% year-over-year.

Speaker #3: In terms of our digital transactions, as you know, we host mobile wallet transactions, which increased by 72% versus last year, while in terms of value, they increased by 100% for the quarter, reaching EGP 330 billion.

Speaker #3: In terms of digital transactions—which include, in addition to mobile wallet transactions, my salary, the prepaid card, the banking and acceptance business as well—they increased by 44% year-over-year.

Speaker #3: While the total transactions increased only by 4% year-over-year. That’s it for our Q2 results. I think we can open the mic for the Q&A now.

Ashraf Sabry: That is it for our Q2 results. I think we can open the mic for the Q&A now.

Speaker #1: Okay, we now open the floor for questions. If you wish to ask a question, please raise your hand to speak directly to management, or type your question in the Q&A box.

[Analyst] (HC Brokerage): Okay. We now open the floor for questions. If you wish to ask a question, please raise your hand to speak directly to management or type your question in the Q&A box. We will pause for a moment to allow our participants to prepare their questions. We have a question from Mariam Wael. She is asking: Can you share guidance on the expected quarter-on-quarter growth in revenue and net income for the upcoming quarters? Can we expect growth to accelerate from the last quarter growth?

Speaker #1: We will pause for a moment to allow our participants to prepare their questions. We have a question from Mariam Zoric. She's asking, can you share guidance on the expected quarter-on-quarter growth in revenue and net income for the upcoming quarters?

Speaker #1: Can we expect growth to accelerate from the last quarter's growth?

Speaker #3: Well, I mean, our expectation is that we will close the year with the same guidance that we announced at the beginning of the year.

Ashraf Sabry: Well, our expectation is that we will close the year with the same guidance that we have announced at the beginning of the year, and it comes hand in hand with all the analyst reports.

Speaker #3: And it comes hand-in-hand with all the analyst reports.

Speaker #1: Okay, thank you. Janani Vamadeva is asking, how comfortable are you with the net profit margin guidance of 33% for 2026?

[Analyst] (HC Brokerage): Okay. Thank you. Janani Vadadeva is asking, how comfortable are you with the net profit margin guidance of 33% for 2026?

Ashraf Sabry: Comfortable.

Speaker #3: Comfortable.

Speaker #1: Okay. Until we receive other questions—and we have Tanashi Hove—okay, just a second.

[Analyst] (HC Brokerage): Okay. Until we receive other questions, we have Tenashi Booth.

Ashraf Sabry: Sure.

Speaker #3: Sure.

[Analyst] (HC Brokerage): Please unmute yourself.

Speaker #1: Please unmute yourself.

Speaker #3: I think I'm unmuted.

Ashraf Sabry: I think I am unmuted.

Tenashi Booth: Hi. Good afternoon, and thanks again for taking the time to speak to us and also rolled out a lot of strong results. My question is more conceptual. Given the changes you have had to your business with ADP becomes smaller and the overall shift in your mix of businesses, can you remind us again from first principles, what you think is the key or the moat or the competitive advantage you have going forward when it becomes less about the agent network, when it becomes less about the population of POS devices out there? How do you guys think about your business at this stage and where the growth will come from in that context?

[Analyst]: Hi. Good afternoon, and thanks again for taking the time to speak to us and also rolled out a lot of strong results. My question is more conceptual. Given the changes you have had to your business with ADP becomes smaller and the overall shift in your mix of businesses, can you remind us again from first principles, what you think is the key or the moat or the competitive advantage you have going forward when it becomes less about the agent network, when it becomes less about the population of POS devices out there? How do you guys think about your business at this stage and where the growth will come from in that context?

Speaker #4: Yeah. Good afternoon, and thanks again for taking the time to speak to us, and also for all the other strong results. My question is more conceptual.

Speaker #4: So, given the changes you've had to your business, with ADB becoming smaller and the overall shift in your mix of businesses, can you remind us again from first principles what you think is the key—or the moat, or the competitive advantage—you have going forward, when it becomes less about the agent network, when it becomes less about the population of POS devices out there?

Speaker #4: How do you all think about your business at this stage, and where do you see growth coming from in that context?

Ashraf Sabry: Okay. When we look at the business, from a consumer side, we do have our relationship with the consumer governed by our super app, myfawry or whatever you name it. This app is an app that is offering the customers an account, which is our prepaid card, saving, which is multiple ETF and money market funds, and we can expand on investment on that side. Lending, where we are offering our consumers lending, whether in using the card itself, insurance. We are adding our insurance as part of the services being offered to the consumer finance.

Speaker #3: Okay. When we look at the business, I mean from a consumer side, we do have our relationship with the consumer governed by our super app, My Fawry, or whatever you name it.

Speaker #3: And this app is an app that is offering the customers an account, which is our prepaid card, and savings, which includes multiple EFTs and money market funds.

Speaker #3: And we can expand on investment on that side. Lending where we are offering our consumers lending whether in using using the the the the card itself insurance.

Speaker #3: So, we are adding, or ensuring it's part of the services being offered to consumer finance. And the next step, which is expected to be launched this year, and with more expansion next year, is more lifestyle relationship in terms of buying and relationship, leveraging our acceptance network.

Ashraf Sabry: The next step, which is expected to be launched this year and more expansion next year, is more lifestyle relationship in terms of buying and relationship leveraging our acceptance network, to create traffic from our myfawry application to the merchants and to create benefits from our merchant network to the myfawry customer. At the end of the day, we believe that myfawry as an app will be a wallet that includes all types of payments, enabling bill payment, enabling lending, enabling saving, investment, and additional lifestyle benefits. This is from a consumer side, and we expect growth on that side, actually horizontal and vertical in terms of number of customers as well as number of services. We expect that the average ticket and the diversity of products and tickets per customer should be increasing.

Speaker #3: To create traffic from our My Favori application to the merchants, and to create benefits from our merchant network to the My Favori customer. So, at the end of the day, we believe that My Favori as an app will be a wallet that includes all types of payments, enabling bill payment, enabling lending, enabling saving, investment, and additional, you know, I mean, lifestyle benefits.

Speaker #3: So, this is from the consumer side, and we expect growth on that side—actually both horizontal and vertical—in terms of the number of customers as well as the number of services.

Speaker #3: And we expect that the average ticket, as well as the diversity of products and tickets per customer, should be increasing. We believe that we have ample room for growth across the different services.

Ashraf Sabry: We believe that we do have an ample room for growth across the different services. The number of consumers on the app who hold an account are, when you measure them to the number of consumers that have consumer finance or investment opportunities, you will find that still we have more room to cross-sell to those clients additional services. This will be like a full financial services platform to our clients. This is our strategy from a consumer side. From a business side or from an enterprise side, we have two different sectors I can say. We have the agent network and the small retailers. Those three are expanding our services to those small retailers. Alnota is lending for the retailers to buy from the suppliers. We are enabling our marketplace, and probably we are going to announce some more aggressive measures in that.

Speaker #3: So, the number of consumers on the app who hold an account are—I mean, when you measure them against the number of consumers that have consumer finance or investment opportunities, you will find that still we have more room to cross-sell to those clients additional services.

Speaker #3: And this will be like a full financial services platform for our clients. So this is our strategy from a consumer side. From a business side or from an enterprise side, we have two different sectors, I can say.

Speaker #3: We have the agent network and the small retailers, and we are expanding our services to those small retailers. So Anota is lending for the retailers to buy from the suppliers.

Speaker #3: We are enabling our marketplace, and probably we are going to announce some more aggressive measures in that. We are enabling those merchants for acceptance.

Ashraf Sabry: We are enabling those merchants for acceptance. We are enabling the revenue-based lending for the same merchants. We are actually turning again to be the financial services platform for the small merchants rather than using the merchant as an agent. So enabling payment to suppliers, enabling payment of expenses, enabling collection via acceptance, lending to those to buy from the suppliers, enabling them for saving. The whole idea is to turn to be the platform of financial services and other services to those small merchants as well.

Speaker #3: We are enabling revenue-based lending for the same merchants. So we are actually turning again to be the financial services platform for the small merchant, rather than using the merchant as an agent.

Speaker #3: So, enabling payment to suppliers, enabling payment of expenses, enabling collection via acceptance, lending to those to buy from their suppliers, enabling them for saving too—the whole idea is to turn to be the platform of financial services and other services to those small merchants as well.

Speaker #3: From the enterprise sector, we have actually launched Fawry Business, and Fawry Business is a fully integrated platform that is being adopted by many customers right now, whereby we manage the entire collection cycle of the business—whether it is cash collection, whether it is card acceptance, whether it is whatever type of collection the guy or the business would look for.

Ashraf Sabry: From the enterprise sector, we have actually launched Fawry Business. Fawry Business is a full integrated platform that is being adopted by many customers right now, whereby we manage the entire collection cycle of the business, whether it is cash collection, whether it is card acceptance, whether it is whatever type of collection the guy or the business would look for. We are enabling them as well to manage all their payments, whether it is their corporate bill payment, whether it is invoice payments to suppliers, whether it is even petty cash payments that you pay to a wallet or pay to whatever payments that are not invoice payments. Enabling them to integrate with the e-tax system. Enabling them to invest into the different mainly the money market fund, because the money market fund is liquid enough that it can be used for payments as well.

Speaker #3: We're enabling them as well to manage all their payments whether it is their corporate payment whether it is invoice payments to suppliers whether it is even petty cash payments that you pay to a wallet or pay to whatever payments that are not that are not invoice payments.

Speaker #3: Enabling them to integrate with the e-tax system, enabling them to invest into different, mainly the money market fund, because the money market fund is liquid enough that it can be used for payments as well.

Ashraf Sabry: Enabling them to have payroll services. Enabling actually a corporate business to have a corporate card that they can use to manage expenses that happens on the street, if you are a car driver or if you are even using the same card, if you are an employee for collection. So if you are working for FedEx, for example, you receive the money on your card that goes into the corporate account immediately. Additionally, using this card, you can have a controlled expense, when to spend, how to spend, limits on spending, tying that to budget. The whole idea, again, is that you are going to have a single platform where the small business can manage their collection expenses, make investments that are liquid enough to be used for payment as well. Additionally, giving them SME lending.

Speaker #3: Enabling them to have payroll services, enabling actually corporate businesses to have a corporate card that they can use to manage expenses that happen on the street if you are a car driver, or even using the same card if you are an employee for collection.

Speaker #3: So, if you are working for FedEx, for example, you receive the money on your card that goes into the corporate account immediately. But additionally, using this card, you can have a controlled expense—when to spend, how to spend, limits on spending—tying that to budget.

Speaker #3: So, the whole idea again is that you are going to have a single platform where the small business can manage their collection, expenses, and make investments that are liquid enough to be used for payment as well.

Speaker #3: And additionally, giving them SME lending, our expectation is that we believe that probably Q1 next year we will have a complete variable format of lending, especially to SMEs and small businesses, that is cash flow-based, fully automated, variable installment payments, and all this stuff.

Ashraf Sabry: Our expectations is that, we believe that probably Q1 next year, we will have a complete variable format of lending, especially to SMEs and small businesses that is cash flow based, fully automated, variable installments, payments, and all this stuff. The whole idea, again, if you would like to see the strategy, the strategy is being a full financial service platform to our client, rather than enabling bill payment through agent network or bill payment aggregation services. This would actually position the company in a completely different era. Additionally, we have announced actually that we are starting our medical platform. We expect during Q1 and Q2 to launch gradually. This includes covering a big gap into the medical insurance sector.

Speaker #3: So, the whole idea again, if you would like to feed this, is being a full financial services platform to our client, rather than just enabling bill payment through an agent network or bill payment aggregation services.

Speaker #3: And this would actually position the company in a completely different era. Additionally, we have announced that we are starting our medical platform. We expect, during Q1 and Q2, to launch gradually.

Speaker #3: This also includes covering a significant gap in the medical insurance sector, and, in the meantime, increasing the number of service providers for medical insurance through the ability to bridge finance between insurers as payers or TPAs and their service providers.

Ashraf Sabry: In the meantime, including the ability of including service providers for the medical insurance through the ability of bridging finance between insurers, payers, or TPA, and their service providers, as well as revenue cycle management for those service providers if they are dealing with multiple insurance. So there is a whole shift strategically. This shift have been initially product built. So, the focus was how to grow these products. Then it is moving right now to have customer or segment-based solutions all the way. I hope I managed to answer your question.

Speaker #3: As well as revenue cycle management for those service providers, if they are dealing with multiple insurance. So, there is a whole shift, strategically. This shift has been initially product-based, so I mean the focus was how to grow these products, and then it is moving right now to have customer or segment-based solutions all the way.

Speaker #3: I hope I managed to answer your question. Yeah. And thank you very much. It's always good to get this reorientation, considering how quickly your business has been changing in the last three to four years.

Tenashi Booth: Yeah. Thank you very much. It is always good to get this reorientation, considering how quickly your business has been changing in the last three to four years. I appreciate it. Thank you.

[Analyst]: Yeah. Thank you very much. It is always good to get this reorientation, considering how quickly your business has been changing in the last three to four years. I appreciate it. Thank you.

Speaker #3: I appreciate it. Thank you. Okay. We have a question from Amre Aid. He's asking, could you elaborate on the reasons behind the significant increase in agent banking revenue in Q2 2026, and do you expect this growth to be sustainable in the coming quarters?

Ashraf Sabry: Thank you.

[Analyst] (HC Brokerage): Okay. We have a question from Amr Eid. He is asking, could you elaborate on the reasons behind the significant increase in agent banking revenue in Q2 2026, and do you expect this growth to be sustainable in the coming quarters?

Speaker #3: Well we we we don't have any reason to to expect that it will not be sustainable in the coming two quarters. But having said so the reason for that is circulation of cash through our cash in cash out services have been increasing significantly whether on the card business or on the wallets business.

Ashraf Sabry: Well, we do not have any reason to expect that it will not be sustainable in the coming two quarters. Having said so, the reason for that is circulation of cash through our cash in, cash out services have been increasing significantly, whether on the card business or on the wallets business. We do not have any reason that this, although we can expect that there is more tightening on the walls from the regulatory perspective. As of now, the average daily through Q3 at least looks like nothing is different. I am not sure how Q4 would look like. This is, in summary, how it looks like.

Speaker #3: We don't have any reason that this—although, there, we can expect that, you know, there is more tightening on the wallets from the regulatory perspective. But as of now, the average daily through Q3 at least looks like nothing is different.

Speaker #3: I'm not sure how Q4 would look like, so this is—I mean, in summary, how it looks like. Okay. Thank you. We have a question from Dan Mikhailov.

[Analyst] (HC Brokerage): Okay. Thank you. We have a question from Dan Mikhaylov. Please unmute yourself.

Speaker #3: Please unmute yourself. Hi Ashraf. Hi Hassan. Congratulations on the results. I have two questions, if I may. The first one is on the cost of risk.

Dan Mikhaylov: Hi, Ashraf. Hi, Hassan. Congratulations on the results. I had two questions, if I may. The first one is on the cost of risk. We see continuous sort of sequential spikes therein, and I was wondering if you could shed some guidance on where you expect cost of risk to stabilize for year-end and maybe into 2027 and beyond. A follow-up, my second question is a follow-up to, I think, one of the points you raised, Ashraf, about starting, or developing capabilities to lend to SMEs on a cash flow basis.

Speaker #3: We see a continuation of sequential spikes therein, and I was wondering if you could shed some guidance on where you expect cost of risk to stabilize for year-end, and maybe into 2027 and beyond. And kind of a follow-up, my second question is a follow-up to, I think, one of the points you raised, Ashraf, about starting or developing capabilities to lend to SMEs, kind of on a cash flow–cash flow basis.

Ashraf Sabry: Yes.

Speaker #3: Does that mean that we should see an acceleration of lending growth in 2027 versus 2026? I believe so. I mean, you know, we are launching a full new platform that is—you know, when I said Fawry Business, Fawry Business is managing the collection and the payment.

Dan Mikhaylov: Does that mean that we should see an acceleration of lending growth in 2027 versus 2026?

Ashraf Sabry: I believe so. We are launching a full new platform that is, when I said Fawry Business, Fawry Business is managing the collection and the payment. We are actually launching a lending model, that is not only a cash flow lending model, but it is, the more you have collection and you have payment through our platform, the less cost of lending it will be. It includes as well, seasonal payments and things like that. So I think this will start to have maybe full impact Q2 or Q3 next year. But my feeling or my understanding from what I see in the market, this is the first of its kind in the market, that will manage the entire cycle.

Speaker #3: Okay. And we are actually launching a lending model that is not only a cash flow lending model, but the more you have collections and you have payments through our platform, the lower the cost of lending will be.

Speaker #3: Okay. And it includes, as well, you know, seasonal payments and things like that. So I think this will start to have maybe full impact in Q2 or Q3 next year.

Speaker #3: Okay. But my feeling, or my understanding from what I see in the market, is that this is the first of its kind in the market that will manage the entire cycle.

Speaker #3: It includes, as well, you know—I mean automation of the entire process, where you can compare bank statements to collections through Fawry, to comparing financial statements as well.

Ashraf Sabry: It includes as well, automation of the entire process where you can compare bank statements to collection through Fawry, to comparing financial statements as well, all into a single bundle. I believe, I think we can see out of that, but the beauty is that it is correlated and integrated as well, into the payment and collection business. It will be like a flying wheel, you know what I mean? All will push each other. It will push acceptance, it will push payment solutions, paying out expenses, and it will push the lending business as well. In terms of cost of risk, on the consumer side, we see that the vintage analysis is showing positive signs. Our vintage analysis showing that we should maintain or better actually. On the microfinance and SME side, we are on the same bracket, nothing really different.

Speaker #3: All into a single bundle. So, I believe, I think we can see out of that. But the beauty is that it is correlated and integrated as well into the payment and collection business.

Speaker #3: So it will be like a flywheel. You know what I mean? All will push each other. It will push acceptance, it will push payment solutions—paying out expenses—and it will push the lending business as well.

Speaker #3: In terms of cost of risk on the consumer side, we see that the vintage analysis is showing positive signs. So, our vintage analysis is showing that we should maintain or do better. Actually, on the microfinance and SME side, we are in the same bracket—nothing really different.

Speaker #3: But we are putting more effort onto our scoring engines and adjustment to the scoring engines for the microfinance as well. We have done that for the consumer it yielded good results and my expectation is that we are going to see better especially that that again I mean we are seeing a lot of product is doing extremely well in terms of collections and cost of risk so I mean I don't see any worrying signals okay if if I might say to the country I think I'm seeing more positive signals.

Ashraf Sabry: We are putting more effort onto our scoring engines and adjustment to the scoring engines for the microfinance as well. We have done that for the consumer. It yielded good results. My expectation is that we are going to see better, especially that, again, we are seeing our product is doing extremely well in terms of collections and cost of risk. I do not see any worrying signals, okay? If I might say. To the contrary, I think I am seeing more positive signals.

Speaker #3: That's very encouraging. So just to put into context perhaps next year we might be back in single digits cost of risk territory. Yeah I think I mean I I I I'm I'm not sure we have exceeded the double digit so so I think the coverage is I think we have 77% if I'm not mistaken I don't have the figures in front of me exactly but what I can tell you for sure is that I'm seeing more positive signs in that area.

Dan Mikhaylov: That is very encouraging. Just to put into context, perhaps next year we might be back in single digits cost of risk territory.

Ashraf Sabry: Yeah, I am not sure we have exceeded the double digit. I think the coverage is, I think we have 77%, if I am not mistaken. I do not have the figures in front of me exactly. But what I can tell you for sure is that I am seeing more positive signs, in that area.

Speaker #3: Yeah. Thank you so much. Best of luck. Thank you. Anton Berg is asking, would it be possible to share any engagement metrics on the Fawry app? For example, monthly or daily active users?

Dan Mikhaylov: Yeah. Thank you so much. Best of luck.

Ashraf Sabry: Thank you.

[Analyst] (HC Brokerage): Anton Berg is asking, would it be possible to share any engagement metrics on myFawry app, for example, monthly or daily active users?

Speaker #3: Well, we did not announce that, but I can say we are in the magnitude of 4 million active users on a monthly basis.

Ashraf Sabry: Well, we did not announce that, but I can say we are in the magnitude of 4 million active users on a monthly basis.

[Analyst] (HC Brokerage): Okay. We have a question from Roman Uzhalov. Please unmute yourself.

Speaker #3: Okay, we have a question from Roman. Please unmute yourself. Hi, guys. Can you hear me? Yes. Yes. Thank you very much for the call and for taking my questions.

Roman Uzhalov: Hi, guys. Can you hear me?

Roman Fuzaylov: Hi, guys. Can you hear me?

Ashraf Sabry: Yes.

[Analyst] (HC Brokerage): Yes.

Roman Uzhalov: Thank you very much for the call and for taking my questions. I had a couple of questions. On the financial services side, I am wondering if you can share long term whether you see the MSME finance program becoming bigger than consumer or whether consumer is the bigger opportunity. You started with MSME, I think, consumer started more recently, but it has grown much more quickly. I think at this point it has become bigger. So I am wondering if that is the way that things should evolve going forward, or whether the introduction of the new products that you are talking about for MSME next year will make this the bigger product for you over time. On that same point, I wonder if you could talk about the difference between MSME loan growth on the financial services side and the revenue growth.

Roman Fuzaylov: Thank you very much for the call and for taking my questions. I had a couple of questions. On the financial services side, I am wondering if you can share long term whether you see the MSME finance program becoming bigger than consumer or whether consumer is the bigger opportunity. You started with MSME, I think, consumer started more recently, but it has grown much more quickly. I think at this point it has become bigger. So I am wondering if that is the way that things should evolve going forward, or whether the introduction of the new products that you are talking about for MSME next year will make this the bigger product for you over time. On that same point, I wonder if you could talk about the difference between MSME loan growth on the financial services side and the revenue growth.

Speaker #3: I had a couple of questions on the financial services side. I'm wondering if you can share, long term, whether you see the MSME finance program becoming bigger than consumer, or whether consumer is the bigger opportunity. You started with MSME; I think consumer started more recently, but it's grown much more quickly, and I think at this point has become bigger. So, I'm wondering if that's the way things should evolve going forward, or whether the introduction of the new products that you're talking about for MSME next year will make this the bigger product for you over time. And on that same point, I wonder if you could talk about the difference between MSME loan growth on the financial services side and the revenue growth.

Speaker #3: It seems like there was a big gap in the quarter, and I wonder whether that's coming from rates coming down meaningfully, or whether there's something else that's the cause.

Roman Uzhalov: It seems like there was a big gap in the quarter, and I wonder whether that is coming from rates coming down meaningfully or whether there is something else that is the cause. The second question is just if you could talk about the margin outlook for the business as a whole medium term. It seems like we have had really substantial margin improvement over the last 2, 3 years, which is now sort of coming to an end, and whether the margin structure we have achieved now is what we should expect going forward, or whether there are potential sources of margin improvement or margin pressure that we should expect in the coming 2 to 3 years. Thank you.

Roman Fuzaylov: It seems like there was a big gap in the quarter, and I wonder whether that is coming from rates coming down meaningfully or whether there is something else that is the cause. The second question is just if you could talk about the margin outlook for the business as a whole medium term. It seems like we have had really substantial margin improvement over the last 2, 3 years, which is now sort of coming to an end, and whether the margin structure we have achieved now is what we should expect going forward, or whether there are potential sources of margin improvement or margin pressure that we should expect in the coming 2 to 3 years. Thank you.

Speaker #3: And the second question is just if you could talk about the margin outlook for the business as a whole medium term. It seems like we've had really substantial margin improvement over the last two to three years, which is now sort of coming to an end, and whether the margin structure we've achieved now is what we should expect going forward, or whether there are potential sources of margin improvement or margin pressure that we should expect in the coming two to three years.

Speaker #3: Thank you. Okay. Well, I mean, I think in the coming two to three years, if this is the question, I think we should expect operating leverage to kick in again with the new initiatives that are coming in. This is a cycle that we have. If you have been following Fawry for some time, you'll find that there is always a preparation phase, and then the revenues kick in, and then the operating leverage becomes more.

Ashraf Sabry: Well, I think, on the coming 2 to 3 years, if this is the question, I think we should expect operating leverage to kick in again with the new initiative that is coming in. This is a cycle that we have. If you have been following Fawry for some time, you will find that there is always a preparation phase, then the revenues kick in, then the operating leverage becomes more. I am in no expectation of pressure on margins on the medium term. To the contrary, I think, I would say post 2027, I expect seeing higher margins, actually. Operating leverage could kick in into the bottom line more aggressively. This is my answer for the second question. For the first question, what we are doing right now, this Alnota product is a very high revolving product.

Ashraf Sabry: Especially, you will not find the big difference in the consumer finance between the loan portfolio and the revenue growth. But in the Alnota project, you can link it as well into the FMCG cycle, because it is more of a transaction-based revenue on a very short-term finance. We find that there is high growth in usage and in portfolio that is not coupled with the same growth of the portfolio. This is mainly what we are seeing. Sometimes, again, because of this revolving nature, we are trying to take bits and pieces of the revenue across different parts of the supply chain. We take a cut from the merchant, a cut from the supplier being paid for, and a transaction base. It is distributed across different parts of the ecosystem.

Roman Uzhalov: Does that mean that as Alnota grows, the nature of that product means it generates less revenue than the MSME lending product from before? Is that the way to understand it? Because it is a shorter-term product that revolves more quickly.

Roman Fuzaylov: Does that mean that as Alnota grows, the nature of that product means it generates less revenue than the MSME lending product from before? Is that the way to understand it? Because it is a shorter-term product that revolves more quickly.

Ashraf Sabry: The margins on Alnota are lower because it is tied to other margins coming from other products as well.

Roman Uzhalov: The net interest margin, you mean?

Roman Fuzaylov: The net interest margin, you mean?

Ashraf Sabry: The net interest margin, yes.

Roman Uzhalov: Yeah. Okay. That is clear. What percentage of the loan book on MSME now is Alnota? It is still pretty small, I imagine, right?

Roman Fuzaylov: Yeah. Okay. That is clear. What percentage of the loan book on MSME now is Alnota? It is still pretty small, I imagine, right?

Ashraf Sabry: I do not have the figure off my head. We will feed back to you more details on that point exactly, including how the portfolio relevant to the revenue and how things have been changing. I think a more detailed answer is required, and not all the figures are off my head right now. Hassan will pass this information to you probably tomorrow or something.

Roman Uzhalov: That's fair. Thank you, Ashraf.

Roman Fuzaylov: That's fair. Thank you, Ashraf.

Ashraf Sabry: Thank you, Omar.

Ashraf Sabry: Thank you, Romar.

[Analyst] (HC Brokerage): Okay. We have a question from Junaid Farooq. Please unmute yourself.

Junaid Farooq: Hi, Ashraf and the team. Thank you very much for this call. Congratulations on the results. I have two questions. The first is, when I look at the credit book at the end of Q2, your consolidated bank borrowing, including drafts and short-term facilities, is about EGP 4.2 billion. How much of this borrowing is used to fund the lending portfolio? My second question is with regards to the cost of risk question that was asked earlier. The cost of risks, so provisioning, provisions have been trending up. It would be helpful for us to understand how much of the provision growth is coming from which sub-segment of the credit book, i.e., how much is coming from microfinance and consumer and SME? The recent uptick in the provisioning charge, is it isolated to one sub-segment, or is it more of the seasoning of the loan book?

Junaid Farooq: These are my two questions. Thank you.

Ashraf Sabry: Okay. The first question, I think Hesham can have the numbers out of his head.

Hesham Bahaa: Yes. The debt, which is shown in the financial statements, either long-term or short-term, amounted to EGP 3.7 billion, is used all to finance the loans portfolio for either consumer or microfinance. With a percentage around 63% debt to equity, 63/37 debt to equity percent of financing the whole portfolio.

Ashraf Sabry: For the second part of the question that you need, which is the distribution of the provisions. What I am sure that the consumer and the micro is of similar nature. What I am not really sure about is the SME. But the SME is just about starting, okay? As I told before, in terms of cost of risk, what we are seeing is that our vintage analysis showed that the consumer is improving quite well. But I think the micro is remaining the same. So I am not seeing improvement in the micro. However, I am seeing improvement in the consumer, and we are taking actions towards revisiting the scoring model, just to make sure that we return back to the normal pattern. Having said so, comparing ourselves, because as we speak right now, the FRA issues more details about your positioning against the market.

Ashraf Sabry: I think we are in a very favorable condition when compared to the market.

Junaid Farooq: Thank you. I have one more question, if I can squeeze that in.

the F issues, uh, you know, uh, more details about your positioning against the market. Uh, so I think we are in a very favorable condition, uh, when compared to the, uh, Market.

Ashraf Sabry: Go ahead, please.

Junaid Farooq: The ESOP plan, I think, has ended in May. Are you looking to have another ESOP plan, or you will just let it lapse?

Ashraf Sabry: Look, we did not yet agree on a clear strategy toward that. This is a topic that is being raised in the board discussions. I am not seeing something that is very near, but I do not, as well, say that this is not something that can happen, because it is a point of discussion. It all depends how things would look like at 2027, and the impact of the dilution of debt. But anyhow, if anything planned, it will not be relative to the value of the company, something big.

Thank you. I have, I have 1 more question if I can please, again, your. Uh, so the ESOP plan. Um, uh, um, I think, um, has ended in May, uh, are you looking to, uh, have uh, another issue of plan? Or you will just let it, uh, lapse.

Agree on a few strategies toward that. Okay, uh,

But this is a topic that is being raised in the board discussions.

uh,

But I'm not seeing something that is very near, but I don't, uh, as well. Uh, you know, uh, uh, put, uh, uh,

You know, to say that this is not something that can happen, uh, because it is a point of discussion. Uh,

So, it will—all depends. I mean, uh, how things would look like in 2027, uh, and the impacts of the evolution of that. Uh, but anyhow, if anything is planned, it will not be, uh, relative to the value of the company, something big.

Junaid Farooq: Thank you very much. Got it. Thank you.

Thank you very much. Got it. Thank you.

[Analyst] (HC Brokerage): Thank you. We have two follow-up questions from Mariam Wael. The first one: Do you expect a negative impact from the recent regulations regarding securitization related to lending business?

Thank you. We have two follow-up questions from Mariam Zurich. The first one: Do you expect a negative impact from the recent regulations regarding your securitization related to the renting business?

Ashraf Sabry: Not really. If you look at our income statement, we do not have a lot of securitization. We have still big room towards wholesale lending from the banks. We are not expecting something that is in the medium term that can affect us from that perspective. Additionally, we are not like companies that have consolidated debt that is very high. Our concentration within the central bank would not be high that can impact the business. If you are a company that is leveraged everywhere, the consolidated position of Fawry is relative to the balance sheet and relative to what we are lending is very low.

Not easy. I mean, uh, we still have, uh, you have to, to, if you look at our, uh, income statement, we don't have a lot of security and we have, uh, still big room, uh, towards, uh, uh—

Tools, I mean, who say landing from the banks, uh, so we are not expecting something that is, uh, in the medium term that can affect us from that perspective.

Uh,

Additionally, uh, I mean, we are not like...

Companies that have consolidated debt, uh, that is very high. Uh, so our concentration, uh, within the central bank, uh, would not be, uh,

Either can impact the business. So, if you are a company that is leveraged everywhere—uh, now the outcome through this is position of salary is relative to the balance sheet, and relative to what is lending, is very low.

[Analyst] (HC Brokerage): Okay. Thank you. Her second question: Can you share with us the current NPL ratio?

Ashraf Sabry: I think it has been in the presentation. We have seen probably 6% and 5.2%. Right, Hassan?

Okay, thank you. And her second question: can you share with us the current NPL ratio?

I think it is it is it has been in the presentation we have seen probably 6% and and 5.2%

right, you

Hassan Abdelgelil: Yes.

Yeah. Yeah.

[Analyst] (HC Brokerage): Okay, thank you. Ahmed Khalid is asking, it is the same, what is the NPL ratio? Maybe we can take the second part of the question, coverage ratio for the MSME and consumer finance books as of Q2 2026 and how?

Ashraf Sabry: I said the coverage ratio is I think 77%.

Okay, thank you Ahmed. Khaled is asking, what's the end? It's the same plan. What's the NPI ratio? Maybe we can take a second part of the question coverage ratio for the msme and Consumer Finance books as of set in q26 and how the covering the coverage of this issue is I think

[Analyst] (HC Brokerage): Okay, and how have they trended over the past four quarters?

77%. Okay. And, uh, how have they trended over the past, uh, four quarters?

Ashraf Sabry: There is nothing, major changes in the whole thing, relative to the portfolio. There is a little bit of increase in the cost of risk, this is true. But in reality, when you look into the broad picture, the change is not magnificent or magnitude. Maybe in the next call, we will have more details about that, so I don't give answers that are not perfectly aligned to the real numbers exactly.

[Analyst] (HC Brokerage): Okay. Thank you. Amr Eid has a follow-up question. Could you explain more on the recent regulatory tightening around digital wallets?

There is nothing, uh, major changing in the whole thing. I mean, related to the portfolio, uh, there is a little bit of increase in the cost of this—this is true. Uh, but, in reality, when you look into the overall picture, the change is not significant or of great magnitude. Maybe in the next call, we will have more details about that, so I don't want to give answers that are not, uh, perfectly aligned to the real numbers. Exactly.

Okay, thank you. I have a follow-up question. Could you explain more about the recent regulatory tightening around digital wallets?

Ashraf Sabry: Yes. I don't know if you have heard in the news that there are wallets that are not in proper names, wallets, cash dispersal, different national IDs. There are some noise about the necessity of making sure that the KYC process is being more rigid, if you'd like to say. So the expectation is that we are going to see more controls on the issuance of the wallets and more scrutiny on reviewing the current wallet installed base.

Yes, I don't know if you have heard in the news that there are wallets that are not in the, uh, in focus names. Uh, what is, guys, this person with different national IDs? There are some, some, uh,

Some noise about, uh, the necessity of making sure that the KC process is, uh, being more, uh,

if you'd like to say uh and for the expectations that we are going to see more controls uh on the issuance of the of the wallets and more scrutiny on reviewing the current uh wallet install this

[Analyst] (HC Brokerage): Okay, thank you. We do not have any further questions in the queue, so a final reminder to all our participants. If you wish to ask a question, please raise your hand or type it in the Q&A box. We will just wait for a few seconds to make sure that nobody has any follow-ups. We have a question from Sangam Iyer. Please unmute yourself.

Okay, thank you. Um,

We don't have any further questions in the queue. So, a final reminder to all our participants: if you wish to ask a question, please raise your hand.

Or type it in the Q&A box.

We'll just wait for a few seconds to make sure that nobody has any follow-ups.

We have, uh,

Sangam Iyer: Yeah, hi. In the presentation, when you mentioned about the collection efficiency reaching 98%, is from the initial 93% at the starting of the quarter, does it mean that

Please unmute yourself.

Ashraf Sabry: Yes

Sangam Iyer: as we move into Q3, things have improved further and the delinquency rate is coming down further?

Ashraf Sabry: The provisioning policy is different than the recovery. You know what I mean?

Ashraf Sabry: You have to record the +30, the +90, and the +60, in terms of provisioning. When it improves over period, then the recovery kicks into place, so it looks better. This is what I was saying, that we are seeing in the consumer business much more. We have two issues in terms of the percentages in Fawry. Number one, that we do not have any long-term lending, so the loan book is always small. If you look at some competition that have curves over 3 years, if you look at our current, our current is our majority. Okay? The increase in the size of the loan book is small. If you look at our percentage of payment measured against the disbursement or the used volume, it will be something like 2% or something like that.

Yeah. Hi, uh, in the presentation, when you mentioned about the, uh, collection efficiency reaching 98%—uh, is that from the initial 93% at the start of the quarter? Does it mean, uh, you know, as we move into Q3, those things have improved further, and the delinquency rate is coming down further? The, uh, provisioning policy is different than the recovery—you know what I mean?

Mhm. So you have to record the plus 30, the plus 90, and the plus 60, in terms of provisioning.

When it improves all over the all, I mean over period. Then the recovery kicks into place. So it it is, it looks better. Uh, and this is what I was saying that we are seeing in the consumer business. Uh, much more. Uh, we have to issues in terms of the percentages in, in fi number 1, uh, that we don't have any long-term lending to the wrong book. Is always small. So if you look at some competition that have cars over 3 years, if you look at our current, our current is our majority, okay? So the increase, the increase in the size of the room book is small. So the snakes. So if you look at our percentage, uh, of, uh, payment, uh, measured against

Ashraf Sabry: Because we have a lot of revolving, so the size of the loan book is not big, so our numbers look a little bit higher. Anyhow, I think it is about time that because of the volume of the business now is contributing much more than what it used to contribute before, to have detailed presentation about the loan book, the distribution, the vintage, and all that stuff in the next presentation.

Uh, the disbursement also used volume. It will be something like 2% or something like that, but because we have a lot of revolving. So, the size of the loan book is not, uh, big. So, our numbers, uh, looks a little bit higher. Uh, but anyhow, I think it, uh, it is about time that, uh, uh, because of the, the, the, the volume of the business now is, uh, contributing, uh, much more than what it used to contribute before, uh, to have the sealed presentation about, uh, the the wrong book, The distribution, the uh, the Vintage, and all that stuff, uh, in the next presentation.

Sangam Iyer: Got it. Just as a clarification, as we have moved into Q3, how is the consumer sentiment here with regards to payment, et cetera? Initially, at the beginning of the Middle East conflict, there are issues that can be visible. Then as the efficiencies are improving, as things are settling down, are we seeing the nerves cooling off and business as usual coming back from the lending part of the business? Or are we seeing still some signs of nervousness on the consumer sentiment out there?

Got it, got it. The just as a, a clarification, you know, as we have, uh, moved into, uh, Q3, uh,

Ashraf Sabry: Look, I mean, Q3 to us looks good. I mean, the numbers look good as planned. But we are, as I said, more conservative in the lending space. So the acquisition and the activation is a little bit lower, and we do not want to relax that until we are sure that recovery is full.

How is the consumer sentiment here with regards to payment? Etc? You know, uh, initially at the beginning of the, uh, uh, of the Middle East conflict, you know, there were, you know, there are issues that that can be visible, uh, but then, as the efficiencies are improving, as things are settling down, are we seeing the nerves cooling off and, uh, business as usual coming back from The Landing part of the business? Or are we seeing uh, still some signs of nervousness uh on the consumer sentiment out there look with what? Uh, I mean, I mean 2 or 3 to us looks good. I mean the numbers looks good as planned. Uh,

Sangam Iyer: Got it. Thank you. Wishing you all the best.

But we are, as I said, more conservative in the lending space for the acquisition and activation. It is the floor, and we don't want to relax that until we are sure that recovery is full.

Ashraf Sabry: Thank you.

[Analyst] (HC Brokerage): Okay, thank you. It seems that there are no further questions, so back to management for any concluding remarks.

Got it. Thank you. I wish you all the best.

Okay. Uh, thank you. Um,

It seems that there are no further questions, so back to management for any concluding remarks.

Ashraf Sabry: No, I mean, thank you very much for attending. Probably, I mean, as part of the next earning call, we would be more focused on numbers regarding the lending business too, because I think it is not very well covered into our presentation, and you deserve to know a little bit more about that and maybe a little bit more about the consumer side of the business in terms of myFawry and number of active users and all that.

[Analyst] (HC Brokerage): Okay, thank you. On behalf of HC, we thank the management of Fawry, and we thank you all for participating in the call. The recording of the call will be available after it, and this ends our meeting. You may now disconnect.

No, I mean, thank you very much for your attention. And uh, probably as part of the next, uh, learning goal, we will be more focused on numbers regarding the lending business too, because I think it is not very well covered in our presentation. You deserve to know a little bit more about that, and maybe Elizabeth can share more about, uh, the consumer side of the business in terms of my salary and number of active users and all this.

Ashraf Sabry: Thank you.

Okay, thank you. So, on behalf of HC, we thank the management of Phi, and we thank you all for participating in the call. The recording of the call will be available afterwards, and this ends our meeting. Uh, you may now disconnect.

Sangam Iyer: Thank you very much.

Hassan Abdelgelil: Thank you very much.

[Analyst] (HC Brokerage): Thank you.

Thank you. Thank you very much. Thank you.

Q2 2026 Fawry for Banking Technology and Electronic Payment SAE Earnings Call

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