The Financial Regulatory Authority (FRA) has released its latest quarterly report, providing insights into the performance of Egypt's non-banking financial services (NBFS). In the fourth quarter (Q4) of 2023, there was a notable increase in various sectors, with leasing contracts, factoring, consumer finance, MSMEs, and mortgage financing experiencing significant growth.

Leasing contracts saw a substantial rise, reaching nearly EGP 39 billion in value, marking a 68% year-on-year increase. However, the number of contracts signed decreased by approximately 19% compared to the same period last year, totaling 575.

Factoring receivables also demonstrated growth, reaching almost EGP 12.5 billion, a 20.5% increase year-on-year.

Consumer finance companies experienced a significant uptick, lending out approximately EGP 14.2 billion during the quarter, a growth of just over 63% year-on-year. This amount was distributed to 827,000 clients, representing an 8% increase from the previous year.

Notably, 39% of the funds were allocated to vehicle purchases, while nearly 27% went towards the acquisition of appliances and electronics.

MSMEs witnessed a substantial boost in funding, with financing jumping almost 42% year-on-year to EGP 57.1 billion. Micro-enterprises accounted for the majority of this funding, totaling around EGP 50.6 billion.

Despite the increase in funding, the number of enterprises receiving financing decreased by 3.4% year-on-year, totaling 3.8 million.

The value of mortgage loans surged by nearly 89% year-on-year, reaching almost EGP 3.7 billion. The number of beneficiaries also increased by 29% year-on-year, totaling 1,430 individuals.