GB Auto has announced that its Drive finance platform has received preliminary approval from Egypt’s Financial Regulatory Authority (FRA) to launch consumer financing activities.
These activities will run beside the company’s auto loans segment, to widen and deepen GB Auto’s exposure to various market segments.
The addition will complement GB Auto’s existing suite of non-banking financial institution (NBFI) offerings, which currently include leasing, factoring, micro finance, mortgage-finance, securitization, fleet-leasing, life insurance and E-payment services.
Drive will also be able to tap a variety of previously inaccessible market segments through the introduction of consumer financing services.
The FRA aims to provide consumer finance licences to 30 companies by the end of this year.
GB Auto recorded EGP 4,024.8m in revenues during the second quarter (Q2) of 2020, reflecting a decline of 31.7% quarter-on-quarter (q-o-q) and 29.3% year-on-year (y-o-y), due to the impacts of the novel coronavirus (COVID-19) pandemic.
However, the Group recorded a net profit for the quarter of EGP 115.8m versus a net loss in the same period last year. It also reported a 14.1% decline in its topline for the first half (H1) of the year to EGP 9,913.5m, with a net profit of EGP 254.2m in H1 of 2020.