HD Bank Achieves Remarkable Growth and Financial Success in 2023

Housing and Development Bank continued its series of successes, achieving strong indicators and exceptional growth in its business results for the period ending on September 30, 2023.

The CEO expressed pride in the bank's ability to adapt and excel in changing conditions, emphasizing its commitment to operational efficiency and ambitious strategies to meet the needs of the Egyptian banking market.

The bank demonstrated distinctive business models, maximizing opportunities for exceptional success, with significant growth in net operating revenues and loan portfolios. The CEO highlighted the bank's commitment to sustainability and its success in digital transformation, resulting in substantial growth in online banking users.

Commenting on the financial results, CEO Hassan Ghanem expressed pride in the bank's strong performance and exceptional growth rates in the first nine months of 2023. He affirmed that the bank's achievements reflect its ability to adapt and navigate changing conditions professionally and dynamically, maintaining the highest operational efficiency standards.

This was achieved through the implementation of the bank's ambitious and proactive strategy to enhance its banking activities and services, expanding its customer base. Ghanem stated that the Housing and Development Bank adopted a unique business model, enabling it to capitalize on all available opportunities for exceptional success. Net operating revenue rose by 100%, reaching 8.8 billion Egyptian pounds during the first nine months of 2023.

Total assets also increased by 14% to 118 billion pounds compared to the previous year, driven by the growth in the bank's loan portfolio in the retail and corporate sectors. He noted an increase in total loans to the bank, reaching 42.858 billion pounds, with a growth rate of 12.3%, driven by the growth in the corporate loan portfolio. Retail banking loans amounted to 11.831 billion pounds, showing a 17% growth, while real estate financing loans reached 12.212 billion pounds, with a 10% growth. The net income margin increased by 10.5%, compared to 6% during the same period of the previous year. In this context, Ghanem emphasized the bank's continued success in maintaining its strong position in the banking sector. Customer deposits increased by 6.7% to reach 95.5 billion pounds by the end of September 2023, driven by a 65.7% increase in retail deposits, reflecting customer confidence in the bank's products and services. Furthermore, the bank encouraged both existing and new customers to invest their savings by promoting certificate of deposit products and savings accounts.

This resulted in an increase in total certificates of deposit to 1.27 billion pounds, with a growth rate of 12.3%, and a growth of 607 million pounds in total savings account deposits, with an 8.1% growth during the first nine months of 2023. This contributed to expanding the customer base and increasing the bank's market share. Ghanem highlighted the loan-to-deposit ratio, which reached 45% by the end of September 2023, compared to 42.6% in the same period of the previous year. He pointed out that the increase in loan returns and similar revenues by 70.6%, along with a 30% increase in deposit costs and similar expenses, contributed to a net income growth of 114.2%, reaching 7.3 billion pounds. He emphasized the bank's ability to achieve significant returns due to effective strategies across its sectors, coupled with efficient management in handling the bank's resources optimally to maximize profitability.

The growth in net profits during the first nine months of 2023 resulted in a 49% return on average equity compared to 24.6% in the same period of the previous year. The return on average assets was 5.3% compared to 2.6% during the same period of the previous year. The capital adequacy ratio was recorded at 24.87%, surpassing the minimum set by the central bank, confirming the bank's commitment to maximizing value for shareholders and all relevant parties. Ghanem expressed pride in the efficiency and professionalism of the bank's executive management, employees, and board of directors.

Despite current economic challenges, the bank demonstrated flexibility and professionalism in dealing with crises and dynamic shifts in the local and global economy. He looked forward to expanding and enhancing the bank's banking activities and services, continuing its ambitious plan focused on customers and the expansion of commercial banking activities. The bank aims to develop its technological and digital infrastructure, manage risks wisely, and pursue sustainable growth to maintain its position as one of the largest banking entities in the Egyptian market.