HD Bank scores 55 points on First Bank Financial Soundness Index At 9M-2023

Housing and Development Bank has strengthened its financial Soundness Index over the past year, achieving a score of 55 points on First Bank Financial Soundness Index during the first 9M of 2023, compared to the sector average of 50 points on this index by the end of the same period, indicating a significant strength in the Bank's financial Soundness Index.

The Financial Soundness Index, developed by First Bank’s research center, evaluates the strength and resilience of financial institutions, their financial soundness, and their ability to safeguard the funds of depositors and shareholders.

In addition, the financial soundness index considers 6 metrics: capital adequacy ratio, leverage ratio, asset coverage ratio for deposits, shareholders’ Equity coverage ratio for deposits, loans to deposits ratio, and non-performing loan ratio.

For the first sub-index, capital adequacy ratio, this index registered with the Bank 24.87% by the end of Q3 of 2023, which led it to top First Bank list of the best Egyptian banks in the capital adequacy ratio by the end of last September. Exceeding the banking sector average of 18.1% by the end of the same period and the control limit set by the Central Bank of Egypt in accordance with Basel conventions of 12.5%.

In terms of the second element, the financial leverage ratio, HDB exceeds the banking sector average, reaching 9% by the end of Q3 of 2023, compared to the sector’s 6.6% at the end of the same period.

The third element of the First Bank Financial Soundness Index, the non-performing loan ratio, stood at 7% by the end of September 2023, compared to the sector’s 3.3% at the end of the same period.

As for the fourth element, loans to deposit ratio (loans/deposits), HDB achieved about 44.87% by the end of Q3 of 2023, placing eighth on First Bank list of the best banks included in loans to deposit ratio by the end of last September, compared to the sector average’s 52.40% at the end of the same period.

Regarding the fifth element, asset coverage ratio for deposits (assets/deposits), 123.94% was recorded by the Bank, compared to 150.96% in the banking sector by the end of the same period, placing sixth on First Bank list of the best banks included in the asset coverage ratio for deposits by the end of Q3 of last year.

Finally, in the sixth element, ownership rights coverage ratio for deposits (equity/deposit), this index in HD Bank exceeds the sector average, registering 14.33% by the end of September 2023, compared to the sector’s 8.86% by the end of the same period.