Housing and Development Bank (HDB) delivered robust financial and operational performance during the first quarter of 2026, underpinned by the effective execution of its ambitious (2025-2030) strategy. This performance was reflected in the growth of business indicators across all sectors, further consolidating its position as one of the largest comprehensive commercial banks in the Egyptian banking market.
Standalone financial results revealed a growth in net profit before income taxes and provisions, recording EGP 7.150 billion compared to EGP 6.484 billion during the comparable period—an increase of EGP 666 million, representing a growth rate of 10.3% for the financial period ended March 31, 2026.
In this context, Hassan Ghanem, CEO and Managing Director, expressed his pride in the strong financial and operational performance achieved by the Bank during the first quarter of 2026. He emphasized that these results reflect the accelerated progress in implementing the Bank’s 2025–2030 strategy, which is anchored on sustainable growth, operational efficiency, and innovation, thereby reinforcing the Bank’s standing as a prominent financial institution in the Egyptian market.
He noted that the Bank’s solid financial position, efficient resource management, and optimal utilization of operational capabilities contributed to achieving balanced and sustainable growth. This was reflected across all performance indicators, driven by strong profitability and asset quality, while maintaining low risk profiles.
Ghanem further explained that the Bank remained focused on enhancing operational efficiency and proactively managing funding costs. This resulted in a 10.8% year-on-year increase in net operating income, reaching EGP 8.393 billion during the first quarter of 2026. Additionally, net profit after tax rose to EGP 5.179 billion, compared to EGP 4.821 billion in the comparable period—an increase of EGP 358 million, or a 7.4% growth rate.
He affirmed that the Bank is continuing to strengthen its customer base and expand its market share by developing innovative banking solutions and products while enhancing the customer experience. This aligns with the Bank’s vision to be the preferred banking choice in the Egyptian market. He also highlighted the ongoing investment in digital infrastructure and the efficiency of banking channels to provide a seamless and flexible banking experience, fostering long-term customer relationships built on quality, innovation, and sustainable trust.
He pointed out that customer deposits recorded significant growth, reaching EGP 189.255 billion by the end of Q1 2026, compared to EGP 179.128 billion at year-end 2025—an increase of EGP 10.127 billion, or a 5.7% growth rate. This was driven by a rise in retail deposits to EGP 109.096 billion (up 4.6%), alongside an increase in corporate deposits to EGP 80.159 billion (up 7.1%), reflecting a diversified customer base and continued confidence in the Bank.
Ghanem added that the Bank’s total assets grew to EGP 245.321 billion by the end of Q1 2026, compared to EGP 229.804 billion—an increase of EGP 15.517 billion, representing a growth rate of 6.8%.
He noted that total loans rose to EGP 69.446 billion, a growth of 5.7%, driven by the corporate and institutional loan portfolio, which reached EGP 34.570 billion (up 5.4%), in addition to the growth in the retail banking loan portfolio, which reached EGP 34.876 billion (up 5.9%).
Regarding asset quality, the Non-Performing Loan (NPL) ratio stood at 5.06% as of March 2026, compared to 4.99% at year-end 2025, while the coverage ratio rose to 164.3%, reflecting efficient risk management and the maintenance of credit portfolio quality.
Ghanem added that the total loan-to-deposit ratio recorded 36.7% at the end of March 2026, consistent with the 36.7% recorded in 2025. He noted that a 9.4% increase in interest income and similar revenues, combined with a 6.6% increase in the cost of deposits and similar costs, contributed to the growth of Net Interest Income (NII) to EGP 7.663 billion, compared to EGP 6.932 billion—an increase of EGP 731 million, or a 10.5% growth rate.
He further stated that the Bank achieved strong returns, with Return on Average Equity (ROAE) reaching 56.17% and Return on Average Assets (ROAA) recording 8.72%. The Capital Adequacy Ratio (CAR) stood at 38.49%, well above regulatory requirements, with Tier 1 capital at 37.4% and Tier 2 capital at 1.09%.
He highlighted the growth in the consolidated net profit of the Bank and its subsidiaries and affiliates, which reached EGP 5.621 billion after tax, compared to EGP 4.959 billion—an increase of EGP 662 million, or 13.4%.
In line with its commitment to sustainability, Ghanem affirmed the Bank’s continued integration of ESG principles across its financing and operational activities as a core pillar of the 2025–2030 strategy. He noted that Q1 2026 witnessed significant growth in sustainable financing efforts, with total sustainable financing reaching EGP 11.14 billion, a 46% increase year-on-year. The sustainable financing portfolio stood at EGP 6.347 billion, up 31% compared to the same period in 2025.
He emphasized the Bank’s ongoing role as a responsible financial institution through Corporate Social Responsibility (CSR) and sustainable development initiatives, supporting health, education, and the empowerment of women, youth, and people of determination, thereby contributing to inclusive and sustainable development.
Ghanem also expressed his appreciation to the customers, investors, the Chairman, Board members, executive management, and the Bank’s employees, stressing that their trust is the primary driver for sustained strong results and the enhancement of the Bank’s position as a premier financial institution in the Egyptian banking sector.
