The Housing and Development Bank (HDB) has achieved exceptional growth in its financial indicators in 2022, as the bank’s earnings before interest and taxes (EBIT) amounted to EGP 4.051bn, compared to EGP 2.795bn in 2021, an increase of EGP 1.256bn (44.9%). The bank’s net profits amounted to EGP 2.257bn, compared to EGP 1.830bn in 2021, a growth of 23.3%, while its consolidated profits reached EGP 2.726bn, up from EGP 2.028bn in 2021, an increase of 34.4%.
Hassan Ghanem, Chairperson and Managing Director of the Housing and Development Bank (HDB), said that the bank’s business results for 2022 showed the strength of its financial position and strong growth rates. This reflects its success in implementing the development strategy that it adopts. Despite the exceptional circumstances witnessed by the local and global economy, including inflationary pressures, disruption of global supply and supply chains, as well as the liberalization of the Egyptian pound exchange rate, the bank achieved strong growth at various levels, as its total assets amounted to EGP 103.6bn, with a growth rate of 36%, which resulted in a 38% growth in net operating income, to EGP 6.3bn.
Ghanem added that the bank’s operational indicators achieved strong growth rates in 2022, as the increase in net customer loans reached 43%, reaching EGP 35.215bn, thanks to the bank’s continued provision of more financing solutions to companies and individuals, and the growth of customer deposits reached 42%, reaching EGP 89.485bn.
Net income from return amounted to EGP 4.908bn in 2022, compared to EGP 3.269bn in 2021, an increase of EGP 1.639bn, with a growth rate of 50.1%. The capital adequacy rate reached 21.84% in 2022, which exceeds the minimum set by CBE. The return on assets reached 2.18%, and the return on equity reached 21.8%.
Supporting small and medium enterprises
Ghanem explained that supporting small and medium enterprises is at the top of the bank’s strategic plan priorities, given its role in development, providing job opportunities, and building an Egyptian industrial and productive base to create a national competitive industry that enhances local products. It pointed out that although these projects are the most affected by market challenges, HDB was able to increase its loan portfolio by 30% during 2022, and achieve the goals of CBE by directing 25% of its credit portfolio to SMEs, including 11% allocated to supporting small projects.
Ghanem emphasized that HDB considers sustainable financing of great importance. It contributes to supporting financial and banking stability and achieving long-term stability in the economic, environmental and social climate. In addition, sustainable finance contributes to projects and initiatives that aim to rationalize energy and preserve the environment. He explained that the total funds allocated to serve the bank’s sustainable financing principles amounted to about EGP 3.85bn, equivalent to 27% of the total portfolio of major companies and syndicated loans, by the end of 2022.
Capital increase
According to Ghanem, HDB managed to increase its capital in 2022, in line with the new banking law and the instructions approved by CBE, without injecting new investments. The increase in the authorized capital of the bank from EGP 3bn to EGP 10bn was recorded. The EGX Listing Committee also approved the listing of shares, increasing the issued and paid-up capital of the bank from EGP 1.518bn to EGP 5.313bn, an increase of EGP 3.795bn distributed over 379.5 million shares, and 2.5 bonus shares for each original share before the increase.
Ghanem emphasized that over the past few months, the bank witnessed a remarkable boom in all business sectors. This helped it achieve such exceptional results. He also pointed out the bank thinks of developing human capital as a top priority, considering that humans are the main pillar of success and the main factor behind these honorable results. He stressed that the bank is keen on creating a positive work environment, motivating employees, and developing as well as investing in them, by providing excellent training opportunities in all fields. The bank was able to increase training opportunities by more than 100% in 2022.
Digital transformation
Ghanem explained that the bank adopted an ambitious expansion strategy in the field of digital transformation. Within a short period of time, it made tangible achievements and took steady steps towards digital transformation, with the aim of reaching the largest customer base and providing various services and products to support financial inclusion and enhance the culture of electronic payments.
He pointed out the bank also launched many applications and electronic services, which are a breakthrough in the field of digital services. They include electronic wallet and internet and mobile banking, which provide more than 50 banking services directly to customers.
He explained that the percentage of subscribers to the mobile and internet banking services increased to 80% in 2022. The volume of banking transactions via the Internet increased to 125%. Ghanem added that the bank took the initiative to pump large investments to develop these applications, update them and provide them with the latest digital systems, to meet the rapid digital transformation.
Moreover, Ghanem emphasized that HDB pays great attention to financial inclusion, in light of the state and CBE adopting an integrated strategy to achieve financial inclusion, aiming to integrate groups that have not previously dealt with the banking system and include them within it.
The bank has provided many facilities to its special-needs customers in its branches. It provided some of its branches with trained employees so they can better serve the segments of customers with special needs and the elderly, to enable them to fully benefit from all banking services and products and easily complete their banking transactions.
Customer satisfaction is among the many aspects that HDB cares about. It expanded its innovative banking services and products, with the aim of strengthening its competitive position and meeting the needs of all segments of current and prospective customers.
Expansion strategy
Ghanem indicated that the bank adopted an expansion strategy aimed at spreading and expanding geographically, in line with the policy of CBE. He explained that the bank established and opened new branches of superb engineering and construction, with the latest banking technology, to provide competitive banking services and the best quality and efficiency possible.
He pointed out that the number of bank branches increased to approximately 100 in 2022, and 430 ATMs. This spread aims to strengthen the bank’s vision of continuing competition and being among the largest commercial banks in the Egyptian banking market and attracting more customers, while strengthening the bank’s presence near a broad customer base.
The bank’s companies
Ghanem expressed his happiness with the positive business results achieved by the bank’s group of companies, as the net profit for the consolidated budget after income taxes amounted to EGP 2.726bn in 2022, compared to EGP 2.028bn in 2021, an increase of 34.4%. This confirms the success of the bank in 2022 in implementing its strategic plan to develop its group of companies.
Ghanem explained that HDB owns over 20 companies specialized in many fields that provide real estate and financing services. He pointed out that the bank’s strategy during the past years aimed to maximize the use of these companies to achieve integration between the bank’s services and its companies, through continuous development, with the use of the best competencies to provide distinguished services and gain the confidence and satisfaction of customers to expand the market share of these companies and increase their profitability.
Sustainable development
Ghanem stated that HDB is keen on comprehensive development and applying the sustainability approach in all aspects and fields, through a targeted strategy for social responsibility. He added that the bank always seeks to contribute to initiatives and programs that have a tangible impact on sustainable development. Ghanem stressed that the health and education sectors are top priorities for the bank as well.
He added that the bank has a clear schedule that includes its activities for social responsibility and sustainable development program to support people with special needs, in line with the state’s plan to integrate them and provide them with all support. Ghanem concluded by pointing out the bank’s contribution to several initiatives to provide special services for individuals with special needs and make their daily life easier.
