The Housing and Development Bank (HDB) has kicked off its 2025–2030 strategic plan with a strong financial performance in the first quarter of 2025, posting substantial growth across all key metrics and delivering its highest-ever quarterly net profit.
The bank’s standalone financial results for Q1 2025 show a remarkable rise in pre-tax profits and provisions to EGP 6.484bn, up from EGP 3.631bn in the same period last year. This reflects an increase of EGP 2.853bn and a growth rate of 79%. Net profit after income taxes reached EGP 4.821bn, nearly doubling from EGP 2.426bn in Q1 2024—an increase of EGP 2.395bn or 98.7%.
Strategic Vision and Operational Excellence
Commenting on the results, Hassan Ghanem, CEO and Managing Director of HDB, emphasized that the performance is a direct outcome of the bank’s new strategy, launched in early 2025. “Our 2025–2030 strategy aims to position HDB among the top banking choices in Egypt’s financial sector. These strong results signal we are on the right path,” he said.
He explained that the bank has focused heavily on improving operational efficiency, managing funding costs, and optimizing resource allocation to enhance long-term profitability. These efforts led to a 79% increase in net operating income, which reached EGP 7.573bn by the end of March 2025, up from EGP 4.231bn a year earlier.
The strategy also places significant emphasis on customer satisfaction, with the bank striving to offer tailored solutions for current and prospective clients. This customer-centric approach has contributed to expanding HDB’s customer base, strengthening trust, and increasing its market share across a variety of financial products.
Customer deposits stood at EGP 135bn at the end of the first quarter. Of this, corporate deposits totaled EGP 67.134bn, while individual deposits reached EGP 67.88bn, reflecting strong confidence in the bank’s financial offerings.
Steady Asset Growth and Diversified Lending
Ghanem confirmed that HDB’s continued efforts to reinforce its position in the Egyptian banking sector have translated into sustainable asset growth. Total assets reached EGP 176.806bn by the end of March 2025, supported by notable increases in the bank’s loan portfolios.
Total loans stood at EGP 58.701bn, reflecting a 4.9% growth rate. The corporate loan portfolio increased by EGP 1.694bn, or 6%, to reach EGP 30.055bn, while retail loans rose by EGP 1.033bn, or 3.7%, to EGP 28.645bn. This balanced growth demonstrates the bank’s commitment to supporting a wide range of economic sectors while ensuring high credit standards.
The bank’s asset quality also saw improvements, with the coverage ratio rising to 151.8% by the end of March 2025, compared to 137.1% at the close of 2024. This indicates enhanced risk management and credit discipline.
The loan-to-deposit ratio climbed to 43.5%, up from 38.6% at the end of 2024, reflecting stronger credit expansion. Simultaneously, the bank recorded a 77.4% rise in revenue from loans and similar income streams, while the cost of deposits and similar obligations rose by 59.6%. This contributed to an 86.4% surge in net interest income, which reached EGP 6.932bn in Q1 2025, up from EGP 3.720bn.
Profitability and Capital Strength
HDB’s profitability ratios improved significantly in Q1 2025. The return on average equity rose to 78.04%, compared to 49.01% in Q1 2024, while the return on average assets reached 10.83%, up from 6.37%. These figures underscore the bank’s ability to maximize shareholder returns while efficiently utilizing its asset base.
The capital adequacy ratio (CAR) stood at 30.77%, comfortably exceeding the Central Bank of Egypt’s minimum regulatory requirements. This highlights the bank’s robust capital position and its ability to absorb potential shocks while pursuing growth.
Consolidated net profits, including the bank’s subsidiaries and affiliated companies, also showed strong performance. Net consolidated profit reached EGP 4.959bn after taxes by the end of March 2025, up from EGP 2.808bn in the same period in 2024—an increase of EGP 2.151bn or 77%. Ghanem noted that this confirms the bank’s effective strategy in expanding its group-wide operations and boosting investments.
Digital Transformation and Innovation
In line with its strategic priorities, HDB has accelerated its digital transformation initiatives to meet evolving customer expectations and improve service delivery.
“We have launched a comprehensive digital expansion strategy designed to build an integrated, innovative, and flexible digital banking ecosystem,” Ghanem said. The bank is working closely with leading fintech companies to develop new solutions and enhance customer experience, including upgrades to its technological infrastructure.
As a result, the number of internet and mobile banking users rose by 5% in Q1 2025 compared to the end of 2024. Meanwhile, mobile and online transactions increased by 8%, signaling growing adoption of digital channels among HDB clients.
These investments in digital platforms are intended not only to improve convenience but also to enable data-driven insights and personalized banking, in line with the bank’s vision for future-ready financial services.
Commitment to Sustainability and Community Impact
Ghanem also underscored the bank’s commitment to environmental, social, and governance (ESG) standards. HDB has actively financed a range of sustainable projects, aligning with Egypt’s broader goals for green economic development.
The bank allocated EGP 7.791bn in financing across various sustainable finance segments, including corporate lending, syndicated loans, and SME financing. These investments support projects that comply with environmental sustainability criteria and contribute to long-term economic resilience.
“Our goal is not just profitability, but responsible growth that supports national priorities and adds long-term value to society,” Ghanem said.
He added that the bank’s 2025–2030 strategy places significant emphasis on developing human capital. “People are our greatest asset. We are investing in training, leadership development, and inclusive talent policies to maintain a high-performing, agile workforce.”
Social Responsibility at the Core
Beyond its financial ambitions, HDB continues to invest in corporate social responsibility (CSR) programs, particularly in education and healthcare—two pillars that Ghanem described as vital for sustainable societal development.
The bank has intensified its community engagement efforts under the new strategy, expanding partnerships and initiatives that contribute to inclusive growth and social well-being.
“Our CSR efforts are an integral part of our strategic identity. Supporting health and education is not just a duty—it’s a long-term investment in the future of our society,” Ghanem concluded.
