Housing and Development Bank Reports EGP 14.843 Billion in Net Profit, Up 10.4% in the First Nine Months of 2026
Yehia Abou El Fotouh Leads the Bank into a New Phase of Growth and Profitability
Housing and Development Bank (HDB) has reported strong financial results for the first nine months of 2026, with standalone net profit before income taxes and provisions reaching EGP 20.951 billion for the period ended 30 September 2026, compared to EGP 18.525 billion in the corresponding period, an increase of EGP 2.426 billion, representing growth of 13.15%.
Net profit after income taxes also increased to EGP 14.843 billion, compared to EGP 13.439 billion in the comparative period, an increase of EGP 1.404 billion and a growth rate of 10.4%.
Commenting on the results, Mr. Yehia Abou El Fotouh, CEO and Managing Director of Housing and Development Bank, stated that the Bank continued to deliver strong financial and operational performance during the first nine months of 2026. He attributed these results to the strength of the Bank’s business model, operational efficiency and ability to achieve sustainable growth and profitability.
He explained that performance was supported by the resilience of the Bank’s financial position, the efficient deployment of its resources and assets, diversified income streams and growing business volumes across various banking sectors.
Abou El Fotouh added that the results reflect the Bank’s continued implementation of its ambitious strategy and its efforts to strengthen its position in the banking market. This includes maintaining a balance between growth, profitability and liquidity, improving asset management efficiency, and pursuing carefully planned expansion across its banking and financing activities, while adhering to the highest standards of governance and risk management.
He also noted that the results build on the Bank’s institutional legacy, established brand and growing customer trust, supported by its accumulated banking expertise, skilled workforce, operational capabilities and leadership in mortgage finance.
Strong Growth in Banking Activity and Operating Income
Net interest income reached EGP 23.282 billion during the first nine months of 2026, compared to EGP 20.280 billion in the corresponding period, an increase of EGP 3.002 billion and growth of 14.8%.
This performance was driven by a 14.5% increase in interest on loans and similar income, alongside a 13.9% rise in the cost of deposits and similar charges.
Net operating income also increased to EGP 25.350 billion, compared to EGP 21.905 billion in the comparative period, representing growth of 15.7% and reflecting the strength of the Bank’s banking activity and operational performance.
In terms of profitability indicators, return on average equity, including net profit for the period, reached 47.57%, while return on average assets stood at 7.79%. These indicators reflect the efficient use of capital and the Bank’s focus on maximizing shareholder value.
Total Assets Rise to EGP 279.811 Billion
The Bank’s total assets increased to EGP 279.811 billion as of 30 September 2026, compared to EGP 229.804 billion at the end of December 2025. This represents an increase of EGP 50.007 billion, equivalent to growth of 21.8%, reflecting the expansion of the Bank’s business and the efficient management of its financial resources.
The total loan portfolio also grew to EGP 87.930 billion at the end of September 2026, compared to EGP 65.717 billion at year-end 2025, marking an increase of 33.8%.
The corporate and institutional loan portfolio reached EGP 49.071 billion, compared to EGP 32.784 billion, representing growth of 49.7%. Meanwhile, the retail loan portfolio increased to EGP 38.859 billion, compared to EGP 32.933 billion, recording growth of 18%.
This expansion reflects the Bank’s growing financing activities and its ability to meet the needs of different customer segments.
Customer Deposits Increase by 22.3%
Total customer deposits rose to EGP 219.138 billion during the first nine months of 2026, compared to EGP 179.128 billion at the end of December 2025. This represents an increase of EGP 40.010 billion, or 22.3%.
Corporate deposits reached EGP 110.906 billion, recording growth of 48.1%, while retail customer deposits stood at EGP 108.232 billion, representing growth of 3.8%.
The increase reflects customers’ continued confidence in the Bank, its ability to expand its deposit base and its efforts to diversify funding sources.
The simultaneous growth in assets, loans and deposits highlights the expansion of the Bank’s business base and strengthens its capacity to finance various economic sectors while maintaining a solid financial position and strong capital indicators.
Strong Capital Adequacy and Liquidity Indicators
The Bank maintained a strong capital base, with its capital adequacy ratio reaching 45.28%. The Tier 1 capital ratio stood at 44.17%, while Tier 2 capital accounted for 1.11%.
The loan-to-deposit ratio reached 40.1% during the first nine months of 2026, compared to 36.7% at the end of 2025. This reflects the Bank’s ability to support credit expansion while maintaining strong liquidity levels and effective risk management.
At the consolidated level, which includes the Bank and its subsidiaries and associates, net profit after tax increased to EGP 16.241 billion for the first nine months of 2026, compared to EGP 14.454 billion in the corresponding period. This represents an increase of EGP 1.787 billion and growth of 12.4%.
Improved Asset Quality and Risk Management
Housing and Development Bank also recorded an improvement in asset quality, reducing its non-performing loan (NPL) ratio to 3.86% as of 30 September 2026, compared to 4.99% at year-end 2025.
The provision coverage ratio for non-performing loans reached 178.8%, reflecting the effectiveness of the Bank’s credit and risk management policies and its commitment to maintaining the quality of its loan portfolio.
These indicators highlight the Bank’s ability to balance credit expansion with asset quality through disciplined lending policies and an effective risk management framework.
Expanding Sustainable Finance Activities
In line with its commitment to integrating sustainability principles into its financing activities, the Bank reported that total funds directed towards sustainable projects reached EGP 19.6 billion by the end of the third quarter of 2026, representing year-on-year growth of 85.5%.
The sustainable finance portfolio also reached EGP 12.7 billion, recording growth of 83.5% compared to the same period of the 2025 financial year.
These figures underline the Bank’s role in supporting projects that contribute to sustainable development and generate positive economic and social impact.
Strategic Priorities for Continued Growth
Abou El Fotouh affirmed that the Bank will continue implementing its strategy to diversify income sources, strengthen its deposit base, increase market share and expand its banking activities.
The strategy includes developing banking products and services, deepening relationships with existing customers, attracting new customer segments, improving operational efficiency, promoting innovation and making better use of available resources and capabilities. These efforts are intended to support profitability and sustainable financial growth.
He concluded by emphasizing the Bank’s commitment to building on its achievements, strengthening its competitive position and consolidating its standing among the most efficient and competitive banking institutions.
The Bank aims to continue developing its business model, expanding innovative banking solutions and maximizing added value for customers and shareholders through an advanced banking approach that combines strong financial performance, operational efficiency, innovation and customer focus.
Abou El Fotouh also expressed his appreciation to the Bank’s shareholders, customers and partners, as well as its Board of Directors, executive management and employees, praising their continued efforts and contributions to achieving these results. He emphasized that the Bank’s success reflects collective efforts and a strong spirit of teamwork in advancing its development and growth journey.
