Housing and Development Bank (HDB) recorded unprecedented growth across all business lines in the first half (H1) of 2025, delivering record-breaking results. The bank’s standalone financial statements revealed profit before income tax and provisions rising to EGP 12.221bn, compared to EGP 7.692bn in H1 2024—an increase of EGP 4.529bn, or 58.9%.
New strategy takes hold
Hassan Ghanem, Chief Executive Officer (CEO) and Managing Director of HDB, stated that the bank has begun reaping the benefits of its 2025–2030 strategy. He highlighted that the bank’s exceptional financial performance for the six months ending 30 June 2025 reflects the early success of this strategy, launched at the start of the year, which seeks to position HDB as one of Egypt’s top banking institutions.
He explained that the strategy focuses on enhancing operational efficiency, boosting institutional agility, and fostering innovation to ensure sustainable growth. A central pillar is the development of a fully integrated digital ecosystem to keep pace with Egypt’s fast-evolving banking market. The strategy also emphasises elevating customer experience, strengthening the trust built over 45 years, and consistently delivering products and services that meet citizens’ changing needs with professionalism and efficiency.
Ghanem underlined the bank’s dedication to forging strong and effective relationships with both individual and corporate clients by offering flexible, tailor-made financial solutions that meet expectations on pricing, cost, and service quality.
Operating income and profitability
The CEO pointed to the bank’s focus on driving operational efficiency and proactively managing funding costs, which enabled HDB to maximise opportunities and optimise resources. This approach translated into sustainable profitability and a strong set of financial results.
Net operating income surged 58.9% to EGP 14.503bn in H1 2025 versus the same period in 2024. Meanwhile, net profit after provisions and income tax climbed to EGP 8.927bn, a record increase of EGP 3.769bn or 73.1% from EGP 5.158bn a year earlier. These results, Ghanem noted, demonstrate the success of the bank’s new operating policies in turning challenges into real growth opportunities.
Customer satisfaction and market share
Placing customer satisfaction at the heart of its strategy has been central to HDB’s progress, Ghanem said. By understanding client aspirations and responding with flexibility and efficiency, the bank has succeeded in expanding its customer base and increasing market share.
Customer deposits reached EGP 151.545bn in June 2025, up 4.5% from EGP 144.959bn in 2024—an increase of EGP 6.586bn. Corporate deposits grew 13.1% to EGP 72.963bn, reflecting the bank’s focus on diversifying its deposit base to reduce risk and enhance financial stability. Retail deposits stood at EGP 78.581bn.
Sustained asset growth
According to Ghanem, HDB’s strengthened market position has supported continued asset growth. Total assets increased to EGP 192.701bn by end-June 2025, compared to EGP 179.456bn at end-2024—an increase of EGP 13.245bn, or 7.4%.
Loans expanded across both retail and corporate segments, reaching EGP 60.729bn, up 8.5%. Corporate and institutional loans rose 9.8% to EGP 31.138bn, while retail loans grew 7.2% to EGP 29.590bn. The non-performing loans ratio improved to 5.35% from 6.48% at end-2024, reflecting HDB’s commitment to balanced growth and sectoral diversification. Coverage ratio strengthened to 159.5%, up from 137.1% at end-2024.
Loans-to-deposits ratio and interest income
The bank’s loans-to-deposits ratio rose to 40.1% at end-H1 2025, compared with 38.6% at end-2024. Interest income from loans and similar activities grew 54.1%, while deposit costs and related expenses increased 39.2%. This lifted net interest income by 62% to EGP 13.303bn, compared to EGP 8.214bn in H1 2024.
As a result, HDB achieved exceptional returns: return on average equity increased to 66.75% from 61.53% a year earlier, while return on average assets rose to 9.60% from 7.50%. The capital adequacy ratio stood at 35.67%, well above the Central Bank of Egypt’s regulatory requirement, with Tier 1 capital at 34.56% and Tier 2 at 1.11%.
Consolidated performance
On a consolidated basis, HDB and its subsidiaries posted net profits of EGP 9.560bn after income tax in H1 2025, compared to EGP 5.971bn in H1 2024—an increase of EGP 3.589bn, or 60.1%. This underscores the success of the group’s strategy in expanding investments and developing subsidiary operations.
Ghanem also highlighted the bank’s commitment to embedding sustainability across its operations, a cornerstone of the 2025–2030 strategy. Sustainability, he noted, is essential for financial stability, shareholder value, and alignment with Egypt’s sustainable development goals.
Sustainable finance
HDB has stepped up its role in financing green and socially impactful projects. Total sustainable finance in H1 2025 reached EGP 10.1bn, up 104% year-on-year. Of this, utilisation from the sustainable finance portfolio amounted to EGP 6.8bn, nearly doubling compared with last year. The portfolio spans corporate finance, syndicated loans, and SME support, reflecting the bank’s commitment to environmental and social impact.
“Creating sustainable value for all stakeholders is not only a strategic goal but also an ethical duty,” Ghanem affirmed. “Our strategy is designed to support Egypt’s transition to a green economy, while ensuring HDB continues to deliver long-term growth and leadership in the banking sector.”
