The Housing and Development Bank (HDB) has continued its successful streak and achieved strong indicators and exceptional growth in its business results during the first nine months of the year. According to the bank’s independent business results, the net profits after income taxes increased to EGP 4.4bn, compared to EGP 1.753bn in the same period in 2022, marking an increase of EGP 2.666bn and a growth rate of 152%.
Hassan Ghanem, CEO and Managing Director of HDB, expressed his pride in the bank’s robust performance and remarkable growth rates during the first nine months of 2023. He said that the bank’s business results in these current circumstances reflect its ability to adapt and deal with various changing situations professionally and dynamically.
Ghanem explained that the net operating revenues doubled to EGP 8.8bn during the first nine months of 2023, and the net profits also rose by 152%, reaching EGP 4.4bn during the same period.
He added that the bank is adopting an ambitious expansion strategy that considers customers a top priority for its expansion plan. This, in turn, resulted in the bank continuing to strengthen its assets, as its total assets reached EGP 118bn, with a growth rate of 14%, compared to the end of last year.
According to Ghanem, the growth of the bank’s loan portfolio through the retail and corporate sectors contributed to the increase in the size of assets. The total loans reached EGP 42.858bn, with a growth rate of 12.3%, driven by the growth of the corporate and institutional loan portfolio, which reached EGP 18.815bn, with a growth of EGP 1.85bn and a growth rate of 11%. The retail banking loan portfolio recorded EGP 11.831bn, an increase of EGP 1.7bn and a growth rate of 17%. The real estate financing loan portfolio recorded EGP 12.212bn, with a growth rate of 10%. The net income margin also increased and reached 10.5% compared to 6% during the same period of last year.
Ghanem stressed that the bank continues to reap the benefits of its solid position in the banking sector, as it recorded an increase in customer deposits by 6.7%, reaching EGP 95.5bn during the period ending 30 September 2023, driven by an increase in retail deposits by up to 65.7%, which reflects customers’ confidence in the products and services provided by the bank.
Additionally, the bank encouraged current and new customers to invest their savings by promoting savings certificates and savings account products, which increased the total savings certificates, boosting the growth to EGP 1.27bn, with a growth rate of 12.3%. The total deposits from savings accounts increased to EGP 607m, with a growth rate of 8.1% during the nine months ending in 2023, which contributed to expanding the customer base and increasing the bank’s market share.
He explained that the total loans to deposits ratio reached 45% during the period ending 30 September 2023, compared to 42.6% during the comparison year. He also pointed out that the increase in the return on loans and similar income by 70.6% and the increase in the cost of deposits and similar costs by 30% contributed to increasing net income to EGP 7.3bn compared to EGP 3.4bn, with a growth rate of 114.2%.
Ghanem pointed out that the bank was able to achieve distinguished returns thanks to the effective strategies it adopted in various sectors, as well as the efficiency and wisdom of management in dealing professionally with the management of the bank’s resources in an optimal way to maximize profitability. The growth in net profits during the nine months ending in 2023 resulted in a growth in the return on average equity of 49%, compared to 24.6% during the same period last year. The return on average assets reached 5.3%, compared to 2.6% during the same period of last year. The capital adequacy ratio was also recorded at 24.87%, which exceeds the minimum set by the Central Bank, which confirms the bank’s commitment to maximizing the value provided to shareholders and all relevant parties.
According to Ghanem, the combined profits of the bank and its subsidiaries and sister companies increased to EGP 4.750bn after income taxes, compared to EGP 1.999bn, an increase of 137.6%.
In the field of digital transformation, Ghanem pointed out that the bank has adopted an ambitious expansion strategy in this field, with the latest digital systems provided through growing investments to meet the rapid and successive digital transformation. The number of subscribers to Internet and mobile banking applications saw a growth of 79% during the first nine months of 2023 compared to the same period in 2022. The number of mobile wallet users increased by 115%.
Ghanem stressed the management’s continuous endeavor to integrate sustainability principles into the bank’s operational activities due to their importance in supporting financial and banking stability to achieve sustainable development goals.
He also praised the efficiency and professionalism of the bank’s executive management, its employees, and its board of directors, and the continuous follow-up that led to achieving this exceptional performance in light of the current economic challenges.
The bank has demonstrated flexibility and professionalism in dealing with crises and dynamic transformations in the local and global economy and showed insistence on continuing to achieve growth during the past nine months, according to Ghanem.
He also expressed his hope for seeing the bank further expand in the future and enhance its activities and services as well as continue implementing its ambitious plan.