HD Bank Investment Strategy by March-2023end
First bank
The separate financial statements of Housing & Development Bank, ending on March 31, 2023, revealed a growth rate of 12.20% in the bank's total assets during the first quarter of the current year, recording EGP 116.3 bn by the end of March 2023, compared to EGP 103.6 bn by the end of December 2022, and an increase of EGP12.6 bn.
Analyzing the investment trends of HD Bank by the end of March 2023:
The bank focuses on deploying a larger proportion of its funds in lending customers instead of financial investments. This is evident from the increased relative weight of total customer loans in the bank, compared to the percentage of financial investments, which witnessed a slight decrease in its relative weight by the end of March 2023.
Loans and Facilities to customers
Despite a decrease in its relative weight, they accounted for the largest share of the bank's investment trend, with a relative weight of 30.89% of its total assets by the end of March 2023, compared to 33.98% by the end of December 2022.
Net portfolio of loans and facilities to customers increased by a growth rate of 2% during the first quarter of the current year, reaching EGP 35.9 bn by the end of March 2023, compared to EGP 35.2 bn by the end of December 2022, an increase of EGP 705 mn.
Total Financial Investments
Although its relative weight has noticeably declined, total portfolio of securities came in second place of the bank's investment trends, accounting for a relative weight of 26.22% of its assets by the end of March 2023, compared to 28.61% by the end of December 2022.
Total financial investments portfolio at HD Bank increased by a growth rate of 2.85% and an increase in of EGP 844 mn, reaching EGP 30.5 bn by the end of March 2023, compared to EGP 29.6 bn by the end of December 2022.
Balances with Banks
The relative weight of Balances with Banks increased to occupy the third largest relative weight of the bank's total asset portfolio, amounting to 22.78% by the end of March 2023, compared to a relative weight of 18.36% by the end of December 2022. The volume of HD Bank's balances with banks increased by a growth rate of 39.25% and an increase of EGP 7.5 bn during the first quarter of the current year, reaching EGP 26.5 bn by the end of March 2023, compared to EGP 19 bn by the end of December 2022.
Cash and Balances with CBE
Despite an increase in the relative weight of Cash and Balances with CBE, it ranked fourth in terms of the bank's investment Trend, with a relative weight of 13.63% of the bank's total assets by the end of March 2023, compared to a relative weight of 12.28% by the end of December 2022. Its total value amounted to EGP 15.9 bn at the end of March 2023, compared to EGP 12.7 bn at the end of December 2022, with a growth rate of 24.59% and an increase of EGP 3.1 bn during the first quarter of this year.
Other Assets
The relative weight of other assets rose to 2.34% of the bank's total assets by the end of the previous March, amounting to EGP 2.8 bn, compared to a relative weight of 2.31% and a value of EGP 2.4 bn by the end of December 2022, achieving a growth rate of 18.20% during the first quarter of the current year. Bank's Loan Market Trends By examining the components of total loan portfolio, it is evident that the bank leans more towards granting credit to retail rather than corporates, given the higher relative weight at the end of the first quarter of 2023.
Corporate Loans
Total corporate loans accounted for a relative weight of 43.92% of the bank's total customer loans by the end of March 2023, compared to 44.46% by the end of December 2022.
The bank's total corporate loan portfolio increased by a growth rate of 1.43% and an increase of EGP 243 bn during the first quarter of the current year, reaching a value of EGP 17.2bn by the end of March 2023, compared to EGP 17 bn by the end of December 2022.
Retail Loans
The relative weight of Retail loan portfolio witnessed a slight increase to reach 55.90% of the bank's total customer loans by the end of March 2023, compared to a relative weight of 55.54% by the end of December 2022, as increased by a growth rate of 3.37% and an increase of EGP714 mn during the first quarter of the current year, to record EGP 21.9 bn by the end of March 2023, compared to EGP21.2 bn at the end of December 2022.
