Housing and Development Bank (HDB) delivered strong financial results during the first half (H1) of 2026, underpinned by its solid financial position, efficient business model and flexible operating policies, as it continued executing its strategy focused on innovation, digital transformation, enhancing customer experience and strengthening customer confidence to drive sustainable growth and maximise value for all stakeholders.
The results provide a strong foundation for the bank’s next phase under Yehia Aboul Fotouh, who recently assumed his role as Chief Executive Officer and Managing Director. One of Egypt’s leading banking executives, Aboul Fotouh brings extensive experience and a proven track record, reinforcing the bank’s ability to execute its strategy, improve efficiency and competitiveness, and unlock new opportunities for growth and sustainable value creation for customers, shareholders and other stakeholders.
Strong capital base
Commenting on the bank’s first-half performance, Aboul Fotouh said the results demonstrate HDB’s ability to sustain growth and deliver solid financial performance despite a rapidly evolving economic environment, supported by a strong capital base and deep banking expertise.
He said the bank has significant opportunities to expand further, increase its market share and leverage its strengths to achieve greater success in the coming period.
Aboul Fotouh added that HDB continues to develop its business lines, enhance operational efficiency and pursue measured expansion across its banking activities and services, while accelerating digital transformation and upgrading its technology infrastructure and digital banking channels.
These efforts, he said, are aimed at improving operational efficiency, expanding access to banking services and delivering a simpler and more flexible customer experience, while maintaining a balanced approach that combines growth with prudent risk management.
Profit growth
Aboul Fotouh said the bank’s strong performance reflects the resilience of its business model and the efficiency of its operating policies.
Standalone financial results showed that net profit before income tax and provisions increased by 14.5% to EGP 13.990bn during the first half of 2026, compared with EGP 12.221bn in the corresponding period of 2025, an increase of EGP 1.769bn.
Net profit after income tax rose by 11.2% to EGP 9.924bn, up from EGP 8.927bn in the comparative period, representing an increase of EGP 997m.
Net operating income also grew by 15.9% to EGP 16.815bn, compared with EGP 14.503bn in the same period last year, reflecting the bank’s strong operating performance and continued ability to achieve robust and sustainable growth.
Customer deposits rise
Aboul Fotouh said the bank continues to expand its customer base and strengthen its competitive position by developing innovative banking products and solutions while enhancing customer experience.
Customer deposits increased by 12.9% to EGP 202.206bn in June 2026, compared with EGP 179.128bn in 2025, an increase of EGP 23.078bn.
Institutional deposits rose by 18.3% to EGP 88.615bn as the bank continued diversifying its institutional deposit portfolio across various sectors and companies to mitigate risks and enhance financial stability.
Retail customer deposits also increased by 9% to EGP 113.591bn.
Total assets
The bank’s total assets rose by 11.6% to EGP 256.442bn in June 2026, compared with EGP 229.804bn in 2025, an increase of EGP 26.638bn.
Growth was driven by the continued expansion of the bank’s lending portfolio across both corporate and retail banking. Total loans increased by 23.9% during the first half to EGP 81.439bn.
Corporate and institutional lending rose by 36.5% to EGP 44.754bn, while the retail loan portfolio grew by 11.4% to EGP 36.685bn, reflecting the bank’s ability to achieve balanced growth across its different banking segments.
Asset quality also improved, with the non-performing loan ratio declining to 4.16% in the first half of 2026 from 4.99% in 2025, while the coverage ratio increased to 173.2%.
The figures reflect the bank’s commitment to maintaining the quality of its credit portfolio through disciplined and efficient credit policies, supporting sustainable growth while maintaining prudent risk management.
Loan-to-deposit ratio
Aboul Fotouh said the loan-to-deposit ratio increased to 40.3% during the first half of 2026, compared with 36.7% in 2025.
A 14.1% increase in interest income and similar revenues, alongside a 9% rise in the cost of deposits and similar expenses, contributed to a 16.4% increase in net interest income, which reached EGP 15.490bn, up from EGP 13.303bn, an increase of EGP 2.187bn.
He said the bank’s returns highlight the strength of its business model and efficient utilisation of resources. Return on average equity stood at 50.97% during the first half of the year, while return on average assets reached 8.23%.
The bank’s capital adequacy ratio stood at 41.67%, comfortably exceeding the minimum regulatory requirement set by the Central Bank of Egypt. The Tier 1 capital adequacy ratio reached 40.56%, while the Tier 2 ratio stood at 1.11%.
Subsidiaries and associates
Aboul Fotouh said the positive performance of the consolidated financial statements reflects the bank’s continued success in maximising the contribution of its subsidiaries and associates to growth and creating added value for shareholders.
Consolidated net profit after income tax for the bank, its subsidiaries and associates increased by 12.8% to EGP 10.781bn during the first half of 2026, compared with EGP 9.560bn in the same period last year, an increase of EGP 1.221bn.
Sustainable finance
On sustainability, Aboul Fotouh said the bank’s continued progress reflects its commitment to integrating sustainability principles across its operations and directing financing towards projects and activities that generate positive economic, social and environmental impacts.
Total sustainable financing reached EGP 14bn in the second quarter of 2026, up 40% year-on-year, while the sustainable finance portfolio rose 42% to EGP 9.5bn.
He added that HDB will continue strengthening its sustainability practices and further embedding them within its long-term strategy.
Corporate social responsibility
Aboul Fotouh said HDB continues to strengthen its role as a responsible financial institution by expanding its contributions to corporate social responsibility and sustainable development while supporting initiatives that improve quality of life.
The bank places particular emphasis on empowering women and young people and supporting people with disabilities, reflecting its commitment to inclusive development and maximising its positive impact on society.
Aboul Fotouh expressed his appreciation to the bank’s shareholders, customers and partners for their continued confidence. He also thanked the board of directors, executive management and employees for their dedication and efforts, which contributed to the bank’s strong performance.
He said the confidence, support and cooperation enjoyed by the bank provide a solid foundation for sustaining growth, strengthening its market position and reinforcing its standing as one of Egypt’s leading banking institutions.
