HD Bank Tops List of Fastest-Growing Banks in Net Interest Income in Q1-2023
First Bank
HD Bank has ranked first on the list of First Bank as the fastest-growing bank in terms of net interest income during the first quarter of the current year. It achieved a growth rate of 110.34%, recording EGP 2.04 bn in the first quarter of 2023 compared to EGP 968.58 mn in the same period of 2022, an increase of EGP 1.07 bn.
The significant increase in the bank's net income from revenue is attributed to a rise in loan yields and similar revenues by 75.39%, reaching EGP 3.58 bn in the first quarter of 2023 compared to EGP 2.04 bn in the same period of 2022, an increase of EGP 1.54 bn.
The increase in loan yields and similar revenues primarily came from higher returns on loans and facilities to customers, with an increase of 90.74%, reaching EGP 1.36 bn in the first 3 months of 2023 compared to EGP 711.03 mn in the same period of 2022, an increase of EGP 645.18 mn.
Financial investment returns (excluding fair value through profit and loss) also increased to EGP 1.16 bn in the first quarter of 2023, compared to EGP 893.87 mn in the same period of 2022, representing a growth rate of 29.29% and an increase of EGP 261.836 mn.
Furthermore, income from deposits and current accounts increased from EGP 434.87 mn in the first quarter of 2022 to EGP 1.07 bn in the first quarter of 2023, with a growth rate of 145.07% and an increase of EGP 630.87 mn.
On the other hand, cost of deposits and similar expenses increased by 43.79%, reaching EGP 1.54 bn in the first 3 months of 2023 compared to EGP 1.07 bn in the same period of 2022, an increase of EGP 469.12 mn.
The increase in the cost of deposits and similar expenses primarily stemmed from the rise in deposits and current accounts held by clients, amounting to EGP 1.5 bn in the first quarter of 2023 compared to EGP 1.06 bn in the same period of 2022, representing a growth rate of 41.65% and an increase of EGP 440.32 mn.
The increase in deposits and current accounts held by banks also played a role in the rise of deposit and similar expense costs, increasing by 4.01% to reach EGP 3.84 mn in the first quarter of 2023 compared to EGP 3.69 mn in the same period of 2022, an increase of EGP 148.01 mn.
As for the cost of deposits and similar expenses from loans of other financial corporates, it increased by 275.31%, reaching EGP 39.06 mn in the first quarter of 2023 compared to EGP 10.41 mn in the same period of 2022, resulting in HD Bank's net interest income amounting to EGP 2.04 bn during the first 3 months of the current year.
