HD Bank's Net profits soar by 107%, reaching EGP 1.325 bn in Q1-2023

HD Bank's financial results revealed exceptional growth and strong indicators during the first quarter of 2023. The results showed a growth in net profits, reaching EGP 1.3 bn, with a growth rate of 107%.

Hassan Ghanem, CEO of HD Bank, expressed his pride in the strong performance achieved by the bank during the first quarter of 2023, which reflects its commitment to the highest standards of operational efficiency and development strategies adopted. This enabled the bank to achieve strong financial results, represented by exceptional growth in both revenues and net profits.

Operating revenues increased by 96% to reach EGP 2.6 bn, while net profit recorded EGP1.3 bn, with a growth rate of 107% during the first quarter of 2023.

Ghanem explained that this strong growth came as a result of the bank's expansion in its business activities, in addition to its commitment to prioritizing customers in various sectors of the bank.

He added that the bank succeeded in continuing to enhance its assets, with total assets increasing significantly to reach EGP116 bn during the first quarter of 2023, with a growth rate of 12%.

Net margin increased to 9.2% during the current first quarter, compared to 7.1% during the same period of the previous year.

Ghanem noted that this growth reflects the bank's success in managing its financing portfolio structure and reducing interest rate risks, while maintaining a ratio of assets to liabilities.

He praised the bank's efforts to expand its customer portfolio in the corporate sector and consolidate its position in the corporate lending sector. This had a positive impact on the increase in total loans by a quarterly rate of 3%, reaching EGP39.1 bn during the first quarter of 2023.

Ghanem also pointed out the bank's achievement of a growth rate of 8% in deposits on a quarterly basis, reaching EGP 97 bn during the first quarter of 2023.

Due to a 15% increase in individual deposits and a 5% increase in corporate deposits, reflecting the trust of individuals and companies in the products and services provided by the bank.

He highlighted the bank's success in achieving exceptional returns thanks to the effective strategies adopted in its various sectors, as well as the efficiency and wisdom of its management in professionally managing the bank's resources to maximize profitability.

Return on average Equity reached 50.5% during the first quarter of 2023, while return on average assets was 4.8% during the same period.

Capital adequacy ratio reached 21.8%, including net profits, during the first quarter of 2023, exceeding the minimum limit set by CBE, Capital adequacy ratio for the first segment was 20.7%, while it was 1.1% for the second segment.

In the field of digital transformation, Ghanem emphasized his bank's adoption of an ambitious expansion strategy, implementing all the latest developments in financial technology.

 This includes developing and updating the technological infrastructure with state-of-the-art digital systems through increasing investments to keep up with the rapid and successive digital transformation.

These efforts resulted in an increase in the number of subscribers to internet and mobile banking applications by a growth rate of 124% during the first quarter of 2023 compared to the same period in 2022. Additionally, the percentage of users of mobile wallet applications increased by 63% by the end of the first quarter of 2023 compared to the end of the first quarter of 2022.

Regarding financing projects supporting the transition to the green economy and sustainable finance, Ghanem explained that the bank is committed to promoting sustainability in various bank activities. This is achieved through optimal use of natural resources and effective steps to enhance the transition to the green economy.

The bank is dedicated to implementing environmentally friendly solutions by participating in numerous initiatives and projects that support the country's direction towards a green economy and sustainable development.

The bank's focus on sustainable finance is demonstrated by allocating EGP1.3 bn from its credit portfolio to target sustainable finance projects. This resulted in a 12% increase in this type of sustainable financing during the first quarter of the current year, 2023.

Ghanem clarified that this growth is attributed to the bank's success in implementing its ambitious plans for expansion and growth. This is achieved by satisfying customers and meeting their needs in various areas, expanding innovative banking services and products based on in-depth studies and analysis of the banking market.

These efforts aim to strengthen the bank's competitive position and meet the needs of all current and potential customers. It also emphasizes geographical expansion and the provision and development of digital services to keep up with the successive changes in financial technology.

The bank is committed to promoting financial inclusion by integrating segments that have not previously interacted with the banking system and attracting them to engage with the banking sector.

The bank targets new customer segments to achieve sustainable economic and social development goals. Additionally, it provides support and training for its employees at various levels to enhance their skills and professional capabilities, enabling them to deliver the highest quality and efficiency of service to customers.

Ghanem praised the efficiency and professionalism of the bank's executive management, employees, and board of directors, as well as the continuous monitoring that has led to achieving this exceptional performance amidst the current economic challenges.

Moreover, He expressed his confidence in the bank's ability to continue its growth in the coming period based on the experiences gained from dealing with and managing crises in previous periods.

Ghanem expressed his future aspirations to expand and enhance the bank's banking activities and services, supporting its position as one of the largest banking entities in the Egyptian market.

This will be achieved by seizing available investment opportunities and effectively dealing with local and global economic challenges with high efficiency and professionalism, to continue achieving outstanding growth rates that satisfy customers and investors' aspirations.