The Housing and Development Bank (HDB) has approved its independent, consolidated financial statements for the six-month period ending June 30, 2022, and trading results showed a 30% increase in the bank’s consolidated net profit from compared to the same period of the previous year.
HDB’s consolidated net profit increased to EGP 1.303 billion in HY 2022 from EGP 1.004 billion in HY 2021, driven by the increase in the bank’s autonomous profit from EGP 1.001 billion in HY 2021 to EGP 1.204 billion in HY 2022 , with a growth rate of 20.3%.
Hassan Ghanem, the Chairman and CEO of HDB, welcomed the bank’s outstanding performance and positive financial indicators during the first half of this year, which crowns the efforts made to implement the development strategy. adopted by the bank. , to become one of the largest integrated commercial banks in the Egyptian banking market, which is based on several axes aimed at expanding the provision of banking products and services, the development and provision of digital services, the geographical distribution and the improvement of the level of service provided to customers.
Ghanem explained that the bank has made remarkable progress in its performance thanks to its success in implementing its ambitious plans for expansion and growth, through the development of activities and services provided to individuals and businesses, and the financing of small and medium-sized enterprises, which was positively reflected in the results obtained by the bank during the first half of 2022.
The bank’s loan portfolio has witnessed remarkable growth, with total loans and facilities reaching EGP 31.3 billion with a growth rate of 16.2%, confirming the increase in confidence of customers in the bank’s ability to manage their business and banking needs, and the corporate loan portfolio increased by 20.9% to approximately EGP 12.7 billion and the retail loan portfolio increased increased by 13.2% to reach EGP 18.6 billion compared to 2021, and the loan to deposit ratio reached 40% at the end of June 2022.
Customer deposits also saw an increase of EGP 78.6 billion with a growth rate of 25% compared to 2021, driven by growth in corporate deposits worth EGP 12.5 billion with a growth rate of 31% compared to 2021, and retail deposits increased by 3.2 EGP. bn with an increase of 14.1% compared to 2021. Customer deposits represent 95.7% of the bank’s total liabilities as of June 30, 2022, ensuring the stability of the funding base.
Ghanem also expressed the administration’s pride in HDB’s ability to earn the highest annual return on assets and equity in the Egyptian banking market, at 2.6% and 25.4%, respectively. which testifies to the solid financial situation of the bank.
Ghanem indicated that the bank has been able to achieve remarkable growth in total assets, with total assets increasing on June 30, 2022 to reach EGP 91.6 billion with a growth rate of 20% compared to 2021, resulting in operating revenue growth of 16.9. % compared to 2021, registering an increase in net income to reach 20.3%.
Ghanem highlighted the bank’s constant focus on developing and delivering competitive products that meet all customer needs and segments, pointing out that as part of the bank’s efforts to expand its customer base, the bank recently launched the service VIP “HDB Royal”, which targets high net worth individuals. The bank offers services tailored to their banking needs.
On the other hand, Ghanem indicated that the bank continues to implement its strategy for financial inclusion, launching and developing a variety of banking services aimed at attracting new segments of society that are not sufficiently covered by the bank, with the aim of attracting to deal with the banking sector on the basis of trust and a strong position. appreciated by the bank.
In light of HDB’s concern for the need to empower women, the bank launched accounts and services specifically designed for them, in light of the bank’s belief in the vital role women play in the economic growth.
In line with the geographic distribution strategy and in line with the Central Bank’s policy to strengthen financial inclusion, the Housing and Development Bank is adopting an expansion plan to cover the various governorates of the Republic, increasing the number of branches to 100 and increasing the spread of ATMs to more than 424 machines.
Ghanem pointed out that digital transformation is on the list of priorities of the Housing and Development Bank, as investments have been made in the implementation of the digital transformation plan and the development of technological and digital infrastructure, in the concern of the bank to provide different and competitive electronic services to customers. , pointing out that the second phase of Internet and Mobile Banking services was recently launched, which allows the bank’s customers to have more than 50 services through these applications.
The Housing and Development Bank also believes in the important role of banks in supporting the small and medium-sized business sector, given their importance in promoting the national economy, improving the standard of living of individuals, elimination of unemployment and creation of employment opportunities for individuals belonging to different groups, with the portfolio of small and medium enterprises increasing by 7.11% to EGP 4.202 billion.
According to the bank’s business results for the first half of 2022, net yield income increased by EGP 479 million, an increase of 29.6% compared to the same period of the previous year.
The capital adequacy ratio was 22.4%, which exceeds the minimum set by the central bank. The Tier 1 capital adequacy ratio was 21.3%, while the Tier 2 capital adequacy ratio was 1.1%.
The bank’s pre-tax profits stood at EGP 1.676 billion at the end of June 2022, an increase of 15.6% compared to June 2021.
Regarding the financial indicators of the consolidated budget, the net profit after tax amounts to EGP 1.303 billion at the end of June 2022, up 30% compared to June 2021, thanks to the growth of the bank’s profits and the growth investment in its subsidiaries and sister companies.
Hassan Ghanem pointed out that the solid performance achieved by the bank during the first half of this year confirms the effectiveness of the development strategy adopted by the bank with its main axes, and also indicates the efforts and dedication of the team. work to continue to build on the bank’s track record of success, expressing management’s aspirations to redouble efforts to make the most of the strength and prestige of the Housing and Development Bank and to to expand in all the commercial activities of the bank, in addition to developing the financing portfolio and strengthening the bank’s presence in the Egyptian market.
Ghanem indicated that achieving the bank’s strategic objectives and leveraging its position in the Egyptian banking sector will enable the bank to achieve the desired growth targets and consolidate its position as one of the largest and most important banks in Egypt.