HDB expands its integrated banking activities, records strong growth in 1H 2022

Hossam Mounir
9 Min Read

The Housing and Development Bank (HDB) has approved its independent and consolidated financial statements for the six-month period ending on 30 June 2022, and the business results showed an 30% increase in the bank’s consolidated net profits compared to the same period of the previous year.

The HDB’s consolidated net profit increased to EGP 1.303bn in 1H 2022, compared to EGP 1.004bn in 1H 2021, thanks to the increase in the bank’s standalone profit from EGP 1.001bn in 1H 2021 to EGP 1.204bn in 1H 2022, with a growth rate of 20.3%.

Hassan Ghanem, the Chairperson and Managing Director of the HDB, expressed his happiness with the bank’s exceptional performance and positive financial indicators during the first half of this year, which comes as a culmination of the efforts made to implement the development strategy adopted by the bank, to become one of the largest integrated commercial banks in the Egyptian banking market, which is based on several axes aimed at expanding the provision of banking products and services, development and provision of digital services, geographical spread and improving the level of service provided to customers.

Ghanem explained that the bank has achieved remarkable progress in its performance thanks to its success in implementing its ambitious plans for expansion and growth, through the development of activities and services provided to individuals and companies, and the financing of small and medium enterprises, which was positively reflected on the results achieved by the bank during the first half of 2022.

The bank’s loan portfolio witnessed a remarkable growth, as the total loans and facilities rose to EGP 31.3bn with a growth rate of 16.2%, and this confirms the increase in customers’ confidence in the bank’s ability to manage their business and banking needs, and the loan portfolio provided to corporate clients increased by 20.9% to reach about EGP 12.7bn and the retail loan portfolio increased by 13.2% to reach EGP 18.6bn compared to 2021, and the loan-to-deposit ratio reached 40% at the end of June 2022.

Customer deposits also witnessed an increase of EGP 78.6bn with a growth rate of 25% compared to 2021, driven by the growth of corporate deposits worth EGP 12.5bn with a growth rate of 31% compared to 2021, and individual deposits increased by EGP 3.2bn with an increase of 14.1% compared to 2021. Customer deposits represented 95.7% of the bank’s total liabilities as of 30 June 2022, ensuring the stability of the funding base.

Ghanem also expressed the administration’s pride in the HDB’s ability to achieve the highest annual return on assets and equity in the Egyptian banking market, at 2.6% and 25.4%, respectively, which is a testament to the bank’s solid financial position.

Ghanem indicated that the bank was able to achieve a remarkable growth in total assets, as total assets rose on 30 June 2022 to reach EGP 91.6bn with a growth rate of 20% compared to 2021, which led to a growth in operating revenues by 16.9% compared to 2021, registering an increase in net income to reach 20.3%.

Ghanem stressed the bank’s constant keenness to develop and provide competitive products that suit all customer needs and segments, pointing out that as part of the bank’s efforts to expand its customer base, the bank recently launched the “HDB Royal” VIP service, which targets high net worth individuals. The bank provides services that are tailored to meet their banking needs.

On the other hand, Ghanem indicated that the bank continues to implement its strategy in support of financial inclusion, by launching and developing a variety of banking services aimed at attracting new segments of society that are not sufficiently covered by banking, with the aim of attracting them to deal with the banking sector based on trust and a strong position. enjoyed by the bank.

In light of the HDB’s keenness on the necessity of empowering women, the bank launched accounts and services specifically designed for them, in light of the bank’s belief in the vital role that women play in advancing economic growth.

According to the geographical spread strategy and in line with the Central Bank’s policy to enhance financial inclusion, the Housing and Development Bank is adopting an expansion plan to cover the various governorates of the Republic, bringing the number of branches to 100, and increasing the spread of ATMs to reach more than 424 machines.

Ghanem stressed that digital transformation comes on the list of priorities of the Housing and Development Bank, as investment has been made in implementing the digital transformation plan and developing the technological and digital infrastructure, in the bank’s keenness to provide different and competitive electronic services to customers, pointing out that the second phase of Internet and Mobile Banking services was recently launched, which allows the bank’s customers to have more than 50 services through these applications.

The Housing and Development Bank also believes in the important role of banks to support the small and medium enterprise sector, given their importance in advancing the national economy, improving the standard of living of individuals, eliminating unemployment and creating job opportunities for individuals belonging to different groups, as the small and medium enterprise portfolio increased by 7.11% to reach EGP 4.202bn.

According to the bank’s business results for the first half of 2022, the net income from the return increased by EGP 479m, an increase of 29.6% over the same period of the previous year.

The capital adequacy ratio was 22.4%, which exceeds the minimum set by the central bank. The tier-one capital adequacy ratio was 21.3%, while the tier-two capital adequacy ratio was 1.1%.

The bank’s profits before taxes amounted to EGP 1.676bn at the end of June 2022, an increase of 15.6% over June 2021.

With regard to the financial indicators of the consolidated budget, the net profit after taxes amounted to EGP 1.303bn at the end of June 2022, an increase of 30% compared to June 2021, thanks to the growth in the bank’s profits and the growth of investment in its subsidiaries and sister companies.

Hassan Ghanem stressed that the strong performance achieved by the bank during the first half of this year confirms the efficiency of the development strategy adopted by the bank with its main axes, and also indicates the efforts and dedication of the work team in continuing to build on the bank’s record of success, expressing the management’s aspirations to double its efforts aimed at maximizing benefiting from the strength and prestige of the Housing and Development Bank and expanding in all of the bank’s commercial activities, in addition to developing the financing portfolio and strengthening the bank’s presence in the Egyptian market.

Ghanem indicated that achieving the bank’s strategic objectives and benefiting from its position in the Egyptian banking sector will enable the bank to achieve the desired growth goals and consolidate its position, as one of the most prominent and leading banks in Egypt.

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