Hassan Ghanem, the CEO of the Housing and Development Bank (HDB), has said that the bank aims to achieve a growth of 25% in profits and various activities by the end of this year.
HDB achieved profits of EGP 1.3bn in the first quarter of (1Q) this year, with a growth rate of 107% compared to 1Q 2022. Ghanem said that 96% of those profits resulted from normal operations, as they came as a result of an increase in operating revenues of about EGP 2.3bn.
The bank’s CEO expressed his pride in the strong performance achieved during 1Q the current year, stressing that it reflects commitment to the highest standards of operational efficiency and the development strategy adopted by the bank.
Ghanem also stressed that this growth in the bank’s profits and its various activities is thanks to the bank’s success in implementing its ambitious plans for expansion and growth, through achieving customer satisfaction and meeting their needs in various fields, expanding innovative banking services and products based on in-depth studies and analyzes of the banking market, with the aim of strengthening its competitive position and meeting the needs of all segments of current and potential customers.
According to Ghanem, the volume of the bank’s assets increased by 12% during 1Q 2023 compared to 1Q last year, to reach EGP 116bn.
He explained that this increase in the volume of assets was driven by the growth in the volume of deposits and loans at the bank, pointing out that the volume of the deposit portfolio reached EGP 97bn, while the volume of the loan portfolio reached EGP 39bn.
Ghanem indicated that the growth rate in individual deposits with the bank reached 15% during 1Q this year, while the growth rate in corporate deposits reached 5%, which reflects the confidence of individual and corporate customers in the products and services provided by the bank. Large, small and medium enterprises acquired the largest share of the bank’s loan portfolio, amounting to nearly EGP 17bn, compared to about EGP 10bn in retail bank loans, and similar real estate financing.
Regarding the bank’s efforts to support the small and medium enterprises (SMEs) sector, Ghanem stressed that the Bank was able to achieve the goals of CBE by directing 25% of its credit portfolio to SMEs, including 11% directed to support small enterprises. He explained that the rate of employment of loans to deposits is currently about 41%, and the bank aims to increase it to 45 to 50% within a period of one and a half to two years.
With regard to the bank’s expansion plan, the CEO of HDB said that there is a plan to add three new branches to the bank’s network before the end of this year, taking the number up to 102 branches.
Ghanem explained that the bank currently has 98 branches spread across Egypt. He pointed out that about 50% of these branches are located outside Greater Cairo, which helps achieve the bank’s plan to enhance financial inclusion and attract more customers.
He explained that the bank has expanded the number of ATMs, which have reached 440 machines in various governorates.
With regard to digital transformation, Ghanem said that the bank adopts an ambitious expansion strategy in this field, and is keen to implement all developments in the field of financial technology, while developing and modernizing the technological infrastructure and providing it with the latest digital systems. He pointed out that the bank has initiated large investments to develop, update and provide these applications.
He indicated that these efforts resulted in an increase in the number of subscribers to the internet and mobile banking application by 124% YoY during 1Q 2023, and the number of users of the mobile wallet application increased by 63%.
In the same context, Ghanem said that HDB is keen on providing support and training to workers at all job levels, to increase their skills and develop their professional capabilities.
Ghanem expressed his confidence in the bank’s ability to continue achieving growth during the next stage, based on its experience gained in dealing and crisis management during previous periods, expressing his aspiration to expand and strengthen the bank’s banking activities and services, in a way that supports its position as one of the largest banking entities in the Egyptian market. Ghanem revealed that the bank intends to launch a new strategy 2023/2025 based on five main axes to further expand the bank’s business as a comprehensive bank.
He went on to explain that the new strategy is an extension of its successful previous plan. Through the previous plan HDB sought to become one of the largest comprehensive commercial banks in the Egyptian banking market, by adopting a unique business model, and transforming the bank from a one focused on real estate financing to a comprehensive commercial bank that provides all banking services to all customers.
According to Ghanem, the five axes of the bank’s new strategy include introducing new banking products and services, with the aim of increasing its customer base and attracting new segments, and achieving geographical expansion after a careful study to select places that serve its goals. The plan also includes increasing the bank’s expansion in digital transformation in accordance with the strategy and vision of the state and the Central Bank, as well as enhancing financial inclusion, which comes at the forefront of the bank’s interests, in addition to allocating a budget for developing and training employees to improve their skills.
Ghanem added that the bank’s strategy also aims to consolidate the principle of sustainability in the various activities and businesses of the bank through the optimal use of natural resources and the implementation of effective steps to promote the transition towards a green economy.
He added that the bank is always interested in implementing environmentally friendly solutions, by participating in many initiatives and projects that support the country’s orientation towards a green economy and sustainable development.
He explained that the bank allocated EGP 1.3bn from its credit portfolio to target sustainable financing projects, which achieved growth in this type of financing by 12% during 1Q 2023.
The CEO of HDB stressed the bank’s keenness on achieving comprehensive development in all sectors of society, through a targeted strategy of social responsibility, as one of the most important values and basic principles of the Bank. Ghanem also added that the health and education sectors are at the top of HDB’s priorities in its sustainable development activities.