“MLF” financial company for non-banking financial services continued its remarkable performance in the local market, despite its recent establishment, but it managed to achieve a net profit of more than 43 million pounds at the end of last year, amid a distinctive diversification of its portfolio between the sectors of financial leasing, real estate financing, and factoring. Zahran: Diversity of portfolio, team and management behind the 137% annual growth . Ahmed Zahran, CEO of “MLF” for non-banking financial services, said that his company achieved a net profit of 43.02 million pounds at the end of last year, with a growth rate of nearly 137% over the achieved in 2020, which was estimated at 18.12 million. MLF Financial also recorded a net profit before taxes, depreciation, and provisions amounting to 57.6 million pounds, an increase of 91% over the achieved in 2020. Return on equity increased to 20.6% by the end of 2021 Thus, the return on equity rose to 20.6% at the end of 2021 instead of 15.5% at the end of 2020, an increase of 33%, and the return on assets increased to 4% instead of 2.6%, with an annual increase of 54%. Zahran stressed in exclusive statements to Al-Mal that the company’s good performance in the past period is due to the strength of the work team and management, in addition to focusing on diversifying the investment portfolio and working in all its activities in a balanced manner without relying on one activity. Regarding the finances granted by the company during the past year, Zahran said that the finances amounted to 973 million pounds by the end of 2021, bringing the total funds granted by the company since the beginning of its activity to about 1.81 billion pounds. Regarding the finances granted by the company during the past year, Zahran said that the finances amounted to 973 million pounds by the end of 2021, bringing the total funds granted by the company since the beginning of its activity to about 1.81 billion pounds. A plan to develop the consumer finance arm with the rest of the activities in 2022 And he touched on the distribution of the company’s portfolio during the last period, to show that the real estate finance activity controls 33% of the total portfolio, financial leasing accounts for 28%, then factoring by 39%. He stressed that the value of the total financing granted by the company in the financial leasing arm amounted to 193 million pounds at the end of last year, bringing the total funding granted in this activity to 502 million pounds since the company’s inception. He pointed out that the total funding granted in the real estate finance activity amounted to 316 million pounds by the end of 2021, bringing the total funding granted in this sector to 599 million pounds since the company’s launch. M.L.F for non-banking financial services was established in the year 2020 under a partnership between “Zahran” and 6 major investors, led by businessman Sameh Sawiris, and the list of shareholders includes Eng. Nehad Ragab, President of “SIAC” Holding Company, and Eng. Fathallah Fawzy, Vice President of the Men’s Association of Egyptian Businessmen, Chairman of the Construction and Building Committee, as well as Eng. Mohamed Idris, CEO of “Mebane Idris” Real Estate Company, Eng. Khalil Kandil, President of Kandil Glass Company, and Ahmed Zahran, who has experience in banking and non-banking business that extends for more than 30 years. He pointed out that the total financing granted by the company in the factoring arm amounted to 464 million pounds during the past year, bringing the total financing of the company in this field to about 708 million since the establishment of MLF. The list of founders of MLF also includes Eng. Mohamed Hassan Al-Durra, Chairman of the Board of Directors of “Al-Durra” Real Estate Development Company, and Omar Al-Durra, Managing Director of Al-Durra Real Estate Development Company as well. Last November, the Egyptian Financial Supervisory Authority Board of Directors issued Resolution No. 1933 of 2021 licensing MLF Mortgage, Leasing, and Factoring to engage in consumer finance activity added to its purpose. Zahran said that the company plans in the new year to continue the growth of the portfolio and profitability, in addition to revitalizing the consumer financing arm, which the company obtained at the end of last year, pointing out that it targets a portfolio of approximately 400 million pounds for that arm in 2022. MLF is considered one of the first companies to be established by the controls previously set by the Financial Supervisory Authority, which allowed the combination of more than one activity for non-banking services under the same company. Zahran explained that the company’s activities were not affected by the Corona pandemic, as evidenced by its achievement of a credit portfolio and a return on equity, in addition to the continuous growth in the portfolio. It is noteworthy that the Financial Supervisory Authority had issued a decision allowing the establishment of an entity that includes more than one financing activity in the fields of financial leasing, factoring and real estate financing, with the aim of facilitating companies, increasing the efficiency of their operations and encouraging the spread of non-bank financing services. He added that the paid-up capital of the company was 100 million pounds when it was established, and after a year 40 million pounds were added, and currently the capital is 220 million pounds. The Financial Supervision recently revealed the harvest of non-bank financial services during the past year. In terms of financing activities, real estate finance achieved remarkable activity during 2021, registering the highest amount of funding granted since the real estate finance activity was included in the activities subject to the supervision of the authority in 2009. The volume of financing granted by real estate finance companies amounted to more than 8 billion pounds in 2021, compared to about 3.4 billion in 2020, an increase of 138%. About Leasing, the value of contracts amounted to nearly 80 billion pounds in 2021, compared to about 60 billion pounds in 2020, an increase of about 36%. As for factoring activity, it also recorded a noticeable increase, as the volume of discounted securities amounted to more than 20 billion pounds in 2021, compared to about 11 billion during 2020, achieving an increase of 80%. The consumer finance activity – the latest non-bank financial activities that were subject to the supervision of the Financial Supervisory Authority by the provisions of Law No. (18) the year 2020 – also witnessed a good performance during 2021, as the value of consumer financing granted amounted to more than 17 billion pounds, compared to about 8 billion pounds in 2020, an increase of 105%.