The business results of the Housing and Development Bank (HDB) revealed that the bank achieved net profits of EGP 1.62bn at the end of 2018, compared to EGP 1.07bn at the end of 2017, with a 51% growth.
The bank’s profits before taxes reached EGP 2.2bn, compared to EGP 1.5bn, with a 47.4% increase.
The HDB held last week its regular and irregular general assembly meeting for the fiscal year ending in December 2018, as all the items in the agenda of the assembly were approved, and the report of the activity of the bank by the board of directors and its financial position in 2018 was also passed.
According to the bank’s performance index, the return on equity (ROE) reached 3.4% in 2018, compared to 2.07% in 2017. The yield on property rights increased to 50%, compared to 43.25%.
A share of the net profits achieved by the bank in 2018 increased to EGP 12.89, compared to EGP 6.55 in 2017.
According to the bank, the capital adequacy ratio is 21.01%, in the light of the optimal application of credit policies and the absence of any dangerous assets in the bank’s investment portfolio.
Despite the challenges and difficulties which the Egyptian economy faced, the bank has managed to reach achievements at the level of the volume of its activities and presence, while maintaining acceptable risks, according to the bank.
The bank explained that its total assets recorded EGP 47.8bn at the end of 2018, and the total loan portfolio amounted to EGP 15.7bn, compared to EGP 13.4bn in 2017, with a 17% increase.
Furthermore, he added that the total deposits reached EGP 34.10bn at the end of 2018, compared to EGP 40.9bn in 2017, as a result of the declining balances of clients who benefit from social housing by EGP 9.1bn. The total deposits excluding passing clients reached EGP 30.4bn, compared to EGP 28.1bn in 2017, with an 8.2% growth.
According to the bank, the net income from yield was EPG 3.1bn in 2018, compared to EGP 2.6bn in 2017. The increase in the net income from profits reached 23.2%.
The yield from loans and similar incomes reached EGP 6.1bn by the end of 2018, compared to EGP 4.9bn with 30.1% increase compared to 2017.
It explained that the yield of loans reached EGP 1.9bn with an increase of 30.3%, compared to 2017. The yield from the employment balances in banks increased to EGP 1.6bn with an increase of 22.6% compared to 2017.
It pointed out that the treasury bills yield reached EGP 2.1bn, with an increase of 35.9%, compared to 2017, while the yield of government bonds reached EGP 485m, with an increase of 34.6%, compared to 2017.
On the other hand, the bank explained that the cost of deposits and similar costs amounted to EGP 3bn at the end of 2018, compared to EGP 2.1bn at the end of 2017, with an increase of 38.8%.
The net income from the fees and commissions at the HDB rose by EGP 26m, with 9.3% increase for 2017, while the distribution of affiliated companies’ profits reached 82.5%, compared to EGP 80m, with an increase of 8.6%, compared to 2017.
In the same context, the bank revealed an increase in the profits of the bank’s housing projects by EGP 82.8bn, reaching EGP 444.8bn, with a 22.9% increase, compared to 2017.
It noted that the net profits from the bank’s housing activities for 2018 reached only 19%, which stresses the bank’s interest in the banking side to become one of the largest 10 banks according to the bank’s future strategy.
According to the bank, the administrative expenses amounted to EGP 1.41bn in 2018, compared to EGP 1.07bn in 2017, with a 32% increase, as a result of the increase activity of the bank and opening new branches, in addition to increasing promotional campaigns and donations.
“The bank’s administration stresses that the positive results of the bank reflect the efficiency and flexibility of the executive policies and measures that helped the bank develop its operations, overcome crises, face competition strongly in the market, and benefit from available opportunities,” according to the bank.
He pointed out that the bank’s branch network reached 84 branches, aimed to increase to 100 over the upcoming period with the aim of achieving better geographical coverage for all clients to meet their needs.
The bank added that it will continue to support the activity of real estate funding as leader in the field of housing projects. The bank also aims to provide integrated solutions through subsidiaries and sister companies whose activities integrate with the bank’s activity in the banking and real estate field.
The bank aims to achieve the goals of its future strategy to continue growth in all indexes, relying on increasing its share in the banking field.
