The Housing and Development Bank (HDB) achieved strong and exceptional growth rates in the first half (1H) of 2023.
The independent business results showed a 150.4% growth in net profits to EGP 3.015bn in 1H 2023, compared to EGP 1.204bn during 1H 2022.
Hassan Ghanem, CEO and Managing Director of HDB, expressed his pride in the strong performance achieved by the bank. He highlighted the strong financial results represented in the exceptional growth of both revenues and net profits.
These results are the fruits of the bank’s hard work to treat its clients as a top priority, and its commitment to the growth strategy it adopts as part of its endeavor to expand its customer base.
All of that led to an increase in income by 103% to EGP 5.6bn during 1H 2023.
Ghanem added that this success is the result of the bank’s continued implementation of its ambitious strategy. This resulted in the bank’s continuous journey of strengthening assets, as the total assets reached EGP 110.7bn during 1H 2023, with a growth rate of 7%, due to the growth of the bank’s loan portfolio through the retail and corporate sectors.
The net income margin from the return of the bank increased to 10.5%, compared to 6% during the same period of the previous year, and the net income from the return amounted to EGP 4.530bn during the period ending on June 30, 2023, compared to EGP 2.096bn during the comparison period, with a growth rate of 116%, driven by an increase in loan yield and similar income by 72.8%, and an increase in the cost of deposits and similar costs by 33.2%.
Ghanem indicated that the bank continued to reap the benefits of its solid position in the banking sector, as it recorded an increase in deposits by 2% to reach EGP 90.9bn in 1H 2023, driven by an increase in retail deposits by up to 40%. In addition, the bank achieved a growth in total loans to deposits by 44.6% in 1H 2023, compared to 42.6% in 2022.
Ghanem said that the bank was able to achieve distinguished returns thanks to the effective strategies it adopts in various sectors. The bank also efficiently and wisely manages its resources in an optimal manner to maximize profitability.
An increase was seen in the return on the average equity to 53.5% compared to 25.7% during the same period of the previous year, while the return on average assets amounted to 5.6% compared to 2.9%, which confirms the bank’s commitment to maximizing the value provided to shareholders and all related parties.
Ghanem highlighted the growth in the net profit of the bank’s consolidated financial statements, and its subsidiaries and sister companies, recording EGP 3.285bn after income taxes, compared to EGP 1.304bn during the comparison period, an increase of 151.9%.
The CEO and Managing Director of HDB praised the efficiency and professionalism of the bank’s executive management, its employees and its board of directors, and the continuous follow-up that led to achieving this exceptional performance in light of the current economic challenges. He pointed out that the bank showed flexibility and professionalism in dealing with crises and showed true insistence on achieving growth during the six months.
Ghanem expressed his hopes for further expansion of the bank’s activities and services. It also plans to continue implementing the bank’s ambitious plan. This supports its position as one of the largest banking entities in the Egyptian market, through its ability to seize opportunities and deal with local and global economic challenges with efficiency, professionalism and high flexibility to continue achieving distinguished growth rates to achieve customer satisfaction and investors’ aspirations.
