The results of the Housing and Development Bank (HDB) have revealed that the bank achieved a growth in net profits by 107% during the first quarter (1Q) of this year, reaching EGP 1.3bn.
Hassan Ghanem, CEO of the bank, expressed his pride in the strong performance achieved by the bank during 1Q 2023, which reflects the commitment to the highest standards of operational efficiency, and the development strategy adopted by the bank with its main axes. This enabled it to achieve strong financial results, represented in the exceptional growth, for both revenues and net profits, as net operating income increased by 96%. They recorded EGP 2.6bn, and net profits recorded EGP 1.3bn, with a growth rate of 107%. He explained that this strong growth came on the back of the bank’s expansion of its commercial activities, in addition to its keenness on considering customers a top priority.
Ghanem added that the bank was able to continue strengthening its assets, as total assets increased significantly to reach EGP 116bn in 1Q 2023, with a growth rate of 12%, and the net margin of return increased to 9.2%, compared to 7.1% during 1Q 2022. He pointed out that this growth reflects the bank’s success in managing the structure of its financing portfolio, and reducing the risks of changing interest rates, while adjusting the ratio of assets to liabilities.
Ghanem praised the bank’s efforts to expand the bank’s corporate clients’ portfolio and consolidate its position in the corporate lending sector, which had a positive impact on the increase in total loans at a quarterly rate of 3%, to reach EGP 39.1bn in 1Q 2023.
He pointed out that the bank’s deposits achieved a quarterly growth rate of 8%, reaching EGP 97bn in 1Q 2023, thanks to the increase in individual deposits by 15% and corporate deposits by 5%, which reflects the confidence of individual and corporate customers in the products and services provided by the bank.
Ghanem also highlighted the bank’s success in achieving distinguished returns thanks to the effective strategies it adopts in various sectors, as well as the management’s efficiency and professionalism. The return on average equity amounted to 50.5% during 1Q 2023, while the return on average assets reached 4.8%, and the capital adequacy rate reached 21.8%, including net profits during 1Q 2023, which exceeds the minimum set by the CBE. The capital adequacy rate for the first tranche reached 20.7%. It reached 1.1% for the second tranche.
In addition, Ghanem stressed that the bank adopts an ambitious expansion strategy in the field of digital transformation. These efforts resulted in an increase in the number of subscribers. In the Internet and mobile banking application, a growth rate of 124% during 1Q 2023 compared to 1Q 2022, and the number of users of the mobile wallet application increased by 63%.
He pointed out that the bank allocated EGP 1.3bn from its credit portfolio to target sustainable financing projects, which achieved an increase in this type of financing by 12% during 1Q this year.
Ghanem explained that the growth in the various activities of the bank is thanks to the bank’s success in implementing its ambitious plans for expansion and growth, through achieving customer satisfaction and meeting their needs in various fields, expanding innovative banking services and products, providing and developing digital services, and promoting a culture of financial inclusion.
Ghanem hopes that the bank reinforces its activities and services, in a way that supports its position as one of the largest banking entities in the Egyptian market.
