HD Bank Investment Strategy by June-2023End

The separate financial statements of Housing & Development Bank- HD Bank, ending on June 30, 2023, revealed that Bank's asset portfolio has achieved a growth rate of 6.8%, and an increase of EGP 7.034 bn, recording EGP 110.7 bn by the end of June 2023, compared to EGP 103.6 bn by the end of December 2022.

Analyzing the investment trends of HD Bank by June 2023 end:

The bank continued to allocate the majority of its funds to granting loans rather than financial investments, This is evident the remarkable different among relative weight of loans and facilities to customers compared to the relative weight of financial investments, by the end of June 2023.

Net Customer loans

The bank's net portfolio of loans and facilities to customers acquired the largest share of the bank's asset portfolio with a relative weight of 33.67% by the end of June 2023, compared to a relative weight of 33.98% of the bank's assets by the end of December 2022.

Bank's customer loan portfolio witnessed an increase, achieving a growth rate of 5.80% with an increase of EGP 2.044 bn during the first half of current year, to record EGP 37.3 bn by June 2023end, compared to EGP 35.2 bn by the end of December 2022.

Financial investments

Ranked second in terms of the bank's investment Trends, despite an decrease in its relative weight, as acquired 23.98% of the bank's total assets by the end of June 2023 To record a value of EGP 26.5bn, compared to a relative weight of 28.61% and Total value of EGP 29.6 bn by the end of December 2022.

Balances with Banks

Accounted for the third largest share of HD Bank's asset portfolio, to surge 22.75% by June 2023end, compared to a relative weight of 18.36% by the end of December 2022.

The total portfolio of balances with banks jumped by 32.34% with an increase of EGP 6.153 bn during the first half of this year, to record EGP25.2 bn by the end of June 2023, compared to EGP 19 bn by the end of December 2022.

Cash and Balances with CBE

The relative weight of Cash and Balances with CBE, witnessed an increase, as acquired a relative weight of 12.59% of the bank's total assets by the end of June 2023, compared to a relative weight of 12.28% by the end of December 2022.

Its total value amounted to EGP 13.9 bn at the end of June 2023, compared to EGP 12.7 bn at the end of December 2022, achieving a growth rate of 9.49%, and an increase of EGP1.207bn.

Other Assets

The relative weight of other assets Increased at a rate of 2.75% of the bank's total assets by the end of June of 2023, recording EGP 3.046 bn, compared to 2.31% and a value of EGP 2.390 bn at the end of December 2022.

Bank's Trends in the Loan Market

By examining the components of total loan portfolio, it is evident that the bank tends to grant credit to retails more than corporated, given the higher relative weight at the end of the first Half of 2023.

Retail Loans

The relative weight of the bank's retail loan portfolio witnessed an increase to reach 56.53% of the bank's total customer loans by the end of June 2023, compared to a relative weight of 55.54% of the bank's total customer loans by the end of December 2022

Bank's total retail loan portfolio recorded EGP 22.9 Bn by the end of June 2023, compared to EGP 21.2 bn by the end of December 2022, achieving a growth rate of 8.21%, and an increase of EGP 1.740 bn.

Corporate Loans

While Total Corporate loans witnessed a slight decrease. as accounted for a relative weight of 43.47% of the bank's total customer loans by the end of June 2023, compared to 44.46% of the bank's total customer loans by the end of December 2022.

Total Corporate loan portfolio at the bank increased, as achieved a growth rate of 3.95% and an increase of EGP 670 mn during the first Half of the current year, reaching EGP 17.64 bn by the end of June 2023, compared to EGP 16.97 bn at the end of December 2022.