In a recent disclosure of its business results for the financial period ending on September 30, 2023, Beltone Financial Holding Company showcased a transformative journey under its new management. This overhaul involved a comprehensive restructuring of the company and its subsidiaries, encompassing the modernization of functions, implementation of new policies, and the assembly of a top-tier team to manage and diversify services. The strategic initiative aimed at positioning Beltone as a digital institution, leveraging data in operations, and making data science a cornerstone of innovation and decision-making.
A significant milestone in this evolution was the establishment of Beltone Academy, envisioned as a leading financial educational institution. The Academy aims to empower individuals with the knowledge and skills needed to navigate challenges in the financial sector successfully.
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The company’s financial results bore witness to the success of this strategy. Operating revenues for the period soared to a record 957 million pounds, marking a remarkable 271% year-on-year increase. This surge was attributed to robust growth in revenues from non-banking financial activities, supported by the impressive performance of the investment bank.
Preceding deductions, interest, taxes, depreciation, and amortization, Beltone reported revenues of 266 million pounds and net profits of 86 million pounds during the same period, reflecting a remarkable 161% increase compared to the prior year’s losses of 140 million pounds. This turnaround is seen as compelling evidence of the effectiveness of the restructuring strategy initiated approximately a year ago.
Non-banking financial activities witnessed a staggering 680% annual increase, reaching 478 million pounds, driven by the growth in financial leasing, consumer finance, microfinance, and risk capital revenues. The investment bank reported operating revenues of 198 million pounds, while the portfolio of shares bought on margin from Beltone Securities Trading surged to 621 million pounds, a 109% YoY increase. Assets under management in the asset management activity reached 23 billion pounds by the end of the period.
Beltone not only redefined its strategic direction but also unveiled a new brand identity as part of its restructuring plan. In a move to bolster its position in the consumer finance sector, Beltone rebranded its consumer finance arm from “BelCash” to “Seven,” emphasizing its commitment to providing innovative payment solutions in financial technology.
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During the third quarter of 2023, Beltone Financial Leasing Company obtained a license to incorporate factoring activity into its operations. Additionally, in November 2023, Beltone Real Estate Finance Company secured a license to engage in real estate financing, bringing the total number of Beltone licenses to 16.
As part of its commitment to fostering innovation and growth in the Egyptian startup ecosystem, Beltone Venture Capital increased its investments during the period. Notable investments were made in SehaTech, WayUp Sports, Bosta, and Ariika.
In a strategic move to strengthen its market presence, Beltone acquired 100% of Cash Microfinance Company, a leading provider of microfinance services in Upper Egypt. Cash Microfinance Company has ambitious plans to expand its branch network nationwide and launch mobile branches to facilitate access to financial services, particularly in remote areas.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard