Lender Baobab becomes Beltone’s biggest business three months after acquisition

In February, Beltone Holding, an Egypt-headquartered financial services group with operations in investment banking and asset management, spent $227.13 million (€197.6 million) to acquire Baobab Group. Three months later, the lender generated more revenue than all of Beltone’s other businesses combined.

Baobab contributed 53% of Beltone’s EGP6.8 billion ($136.68 million) operating revenue in the first quarter of 2026, making it the group’s single largest business line, according to the company’s financial results. 

Its gross lending portfolio grew by 236% year-on-year to EGP101.1 billion ($2.03 billion) in the first quarter. Baobab alone contributed EGP60.9 billion ($1.22 billion), meaning roughly six out of every ten pounds lent by the group now originates from the acquired business.

Beltone’s first-quarter results show how its bet on cross-border growth is paying off. Rather than expand market by market, the company acquired Baobab, a pan-African lender with operations across seven countries. 

Within three months of completing the deal, Baobab had become Beltone’s largest source of revenue and lending activity, offering an early indication that the company’s next phase of growth could come from outside Egypt. 

The strategy mirrors a broader trend across Africa’s tech ecosystem, where companies are increasingly buying capabilities instead of building them. In March, Moniepoint, a Visa-backed Nigerian fintech unicorn, acquired restaurant management platform Orda to deepen its merchant ecosystem.

Baobab’s acquisition expanded Beltone’s geographic footprint across seven African countries and expanded its balance sheet. Baobab brought EGP37.3 billion ($749.75 million) in deposits into the group.

Nigeria continues to play an important role in the group. Baobab Nigeria, which operates 38 branches across 15 states and the country’s capital, contributed EGP3.3 billion ($66.33 million) to Beltone’s portfolio and held EGP3.3 billion ($66.33 million) in customer deposits during the quarter.

Beyond Baobab, Beltone’s legacy businesses continue to grow. Beltone Asset Management maintained its leading position as Egypt’s largest non-bank-affiliated asset manager, with assets under management reaching a new record high of EGP49.0 billion ($984.95 million) during Q1, 2026.

Overall, the group’s net operating profit grew to EGP1.3 billion ($26.13 million) in Q1, 2026, and profit after tax and minority interest fell by 1% to EGP695 million ($13.97 million).

The company said profitability was impacted by one-off expenses associated with expansions, ongoing strategic initiatives, and platform scaling efforts.

“Furthermore, SG&A expenses increased compared to the same period last year, reflecting the costs associated with the integration of Baobab, alongside continued investments in talent acquisition, infrastructure, technology, and business expansions to support future growth across various businesses,” it said in its results.