Egypt’s Housing & Development Bank has announced a standalone net profit after tax of EGP 3.015 billion in H1-2023, compared to EGP 1.204 billion reflecting an increase of EGP 1.811 billion with a growth rate of 150.4% y-o-y.
The Chairman and Managing Director of HDB, Hassan Ghanem, expressed his pride in the Bank’s excellent performance during the first half of 2023. He highlighted the remarkable growth of both revenue and net profits, which was a result of the Bank’s customer-centric approach and commitment to its growth strategy. The Bank’s net operating revenue increased by 103% to 5.6 billion pounds during H1-2023, while its net profit rose by 150.4% to EGP 3.015 billion. HDB aims to expand its customer base and provide top-notch banking services to maintain its growth strategy.
According to Ghanem, the Bank’s success is due to its ambitious strategy focused on two key areas: prioritizing customer satisfaction and expanding its network. This approach has led to a continuous strengthening of the Bank’s assets, with a total of EGP 110.7 billion in assets during the first half of 2023, a growth rate of 7% fueled by increased lending to retail and corporate sectors.
The Bank’s net income margin has also improved, rising from 6% to 10.5% in the same period last year. Net interest income for the period ending on June 30, 2023, was EGP 4.530 billion, a significant increase from EGP 2.096 billion during the same comparable period, with a growth rate of 116%. This growth was due to an increase in interest income on loans and similar income by 72.8% and an increase in interest expense on deposits and similar expenses by 33.2%.
In the same context, Ghanem noted that the Bank continues to reap the rewards of its long-standing position in the banking sector. It recorded a 2% increase in deposits portfolio to record EGP 90.9 billion by the end of H1-2023, driven by a 40% rise in retail deposits. This reflects the trust of individual and corporate customers in the products and services offered by the Bank. However, the total loans to deposits ratio grew by 44.6% during the period ending 30 June 2023 compared to 42.6% in 2022.
He noted that the Bank’s practical strategies in various sectors allow it to achieve distinctive returns. The Bank efficiently and prudently manages its resources to maximize profitability, resulting in a net profit growth during the first half of 2023. This growth led to a 53.5% average return on equity growth compared to 25.7% in the same period the previous year. The return on average assets was 5.6% versus 2.9% during the same period last year. The Bank is committed to maximizing value for shareholders and all relevant parties.
Ghanem also noted the growth of net profit in the bank’s consolidated financial statements and its subsidiaries and sister companies to register EGP 3.285 billion after income taxes versus EGP1.304 billion during the comparable period by an increase of 151.9%.
Ghanem has expressed his aspirations to expand and strengthen the banking activities and services of the bank. The bank plans to implement an ambitious plan that prioritizes clients and expands its business activities. This will be achieved through the development of advanced technological and digital infrastructure, prudent management of risks, and following a desired expansion strategy. The aim is to achieve sustainable growth and establish the bank as one of the largest banking entities in the Egyptian market. With the ability to capture opportunities and deal with local and global economic challenges efficiently, professionally, and flexibly, the bank aims to achieve outstanding growth rates that satisfy customers and investors.
