The Housing and Development Bank (HDB) achieved a profit — before provisions and taxes — of EGP 2.8bn during 2021, compared to 2020’s EGP 2.3bn, with a growth rate of 21%, while the net profit amounted to EGP 1.830bn, compared to EGP 1.800bn.
According to a statement by the bank, it was able to achieve a remarkable boom and achieve good growth rates as a comprehensive commercial bank.
Hassan Ghanem, the Chairperson and Managing Director of the HDB, said that the business results of HDB for 2021 showed the strength of its financial position and strong growth rates, represented by an increase in net income from returns by 16.9% compared to the previous year. This growth was driven by an increase in the bank’s portfolio of customer loans by 25.6%.
The return on loans and similar revenues increased by 15.6%, and the net income from fees and commissions increased by 14.6% compared to the previous year due to the growth in fees and commissions for retail banking loans in addition to the boom in financing foreign trade operations of companies.
Ghanem added that dividends from financial investments, subsidiaries, and sister companies increased by 72% compared to the previous year. Burden of credit provisions amounted to EGP 121m, compared to EGP 178m, due to the increase in the portfolio of loans and advances in addition to the precautionary policy followed by the bank to face the repercussions of the coronavirus pandemic.
He also indicated that the total loans and credit facilities for customers increased by EGP 5.5bn — an increase of 25.6% compared to 2020 — and that this is driven by the increase in total loans provided to corporate customers by 36.7%, and individuals with a growth rate of 19.5%. Moreover, customer deposits increased by EGP 15.8bn, with a growth rate of 33.5%. Also, the ratio of total loans and facilities to customers to their deposit ratio reached 42.8%, while the capital adequacy ratio reached 23.58%.
Ghanem stressed that achieving these satisfactory results was thanks to an ambitious strategy based on providing competitive products to all customers to attract new segments and increase the bank’s market share. The bank’s clients have trusted it for more than 40 years, and this has been one of the most important reasons for achieving the highest growth rates during the previous period, which made it win many international awards in several fields.
The most prominent of these awards are ‘The Fastest Growing Commercial Bank Award’ and ‘The Fastest Growth in Retail Banking Products Award’, in addition to other awards that act as a culmination of the continuous efforts made by the bank.
In implementation of the digital transformation plan, and in line with the strategy of the Central Bank of Egypt (CBE) in this field, the HDB has set ambitious plans towards digital transformation and keeping pace with the efforts of the state.
The bank launched many applications and electronic services, which was a breakthrough in the field of digital services, such as the electronic wallet and internet and mobile banking. These products provide the bank’s customers with over 50 services.
The state is currently adopting an integrated strategy to achieve financial inclusion and transform into a cashless society. Within this framework, the HDB has paid great attention to financial inclusion, aiming to integrate groups that have not previously dealt with the banking system.
The HDB’s expansion strategy also focuses on making the bank spread and expand geographically as per the CBE’s policy for financial inclusion. New branches of the bank were opened in several governorates across Egypt, increasing the number of branches to 100, and more branches are expected to open in 2022, especially in the New Administrative Capital.
Furthermore, the bank believes in the important role of supporting SMEs given their significance in promoting the economy and activating the directives of the CBE, with the HDB recording a growth of 27.3% in financing SMEs.
Ghanem stressed that the efficiency and professionalism of the executive management of the bank, its employees, its Board of Directors, and the continuous follow-up have played a major role in achieving these positive indicators despite the current economic circumstances.