HDB achieves exceptional growth in net profits increasing by 22% in 9M-2022

The Housing and Development Bank (HDB)’s financial results showed a growth in net profits to EGP 549m in the third quarter of 2022, with a growth rate of 26.6% compared to the same period of last year, according to the independent financial statements for the period ending on 30 September 2022,

Net profits stood at EGP 1.753bn in 9M recording an increase of 22.2%, in the back of the growth of operating revenues by 32.8% to EGP 4.379bn.

For his part, Hassan Ghanem, Chairperson and Managing Director of the bank, expressed his pleasure with the strong positive results achieved by the bank in the first nine months of this year, as the bank’s net profits amounted to EGP 1.753bn, with a growth rate of 22.2%.

He added that these results confirm the bank’s success in implementing the adopted development strategy with its main axes and continuing to achieve growth in various sectors, despite the inflationary pressures the Egyptian economy has been subjected to, as well as the disruption of global chains, and the liberalization of the Egyptian pound exchange rate.

Ghanem explained that the exceptional performance achieved by the bank is a culmination of the efforts exerted to carry out the development strategy and enhance digital transformation. He also attributed the success to adopting a unique business model aimed at enhancing the bank’s activities and services.

In addition, Ghanem said that HDB was able to commit to the capital increase limits set by CBE, as the targeted capital increase was achieved from the surplus profit without the need to pump new investments.

 The authorized capital increase of the bank was restricted from EGP 3bn to EGP 10bn in the Egyptian securities listing schedule. He also praised the Securities Listing Committee which approved listing the increase of the shares of issued and paid-up capital of the bank from EGP 1.518bn to EGP 5.313bn, an increase of EGP 3.795bn, distributed over 379.5 million shares, 2.5 free shares for each original share before the increase.

Ghanem added that the loan and deposit portfolio witnessed a strong growth during nine month, as total loans amounted to EGP 34.282bn with a growth rate of 27.3%. Corporate loans achieved a growth of 33.6%, and retail loans achieved a growth of 23.2% compared to the period ended on 31 December 2021.

He pointed out that the total deposits jumped to EGP 87.245bn, with a growth rate of 38.7%, as the growth rate in corporate deposits reached 47.4%, and retail deposits achieved a growth rate of 23%.

The bank also achieved a growth of 34.2% in total assets compared to the period ended 31 December 2021.

Ghanem explained that this growth comes thanks to his success in implementing his ambitious plans for expansion and growth, through developing activities and services provided to individuals and companies, and the financing of small and medium enterprises, which reflected positively on the results achieved by the Bank.

Ghanem stressed his confidence in the bank’s ability to continue developing the retail banking and loan portfolios by launching and modernizing a variety of banking services aimed at attracting new segments of customers and companies, which led to an increase in corporate deposits to two-thirds of the total deposits.

This comes within the framework of the bank’s strategy aimed at attracting diversified and integrated projects, and continuing to reinforce the bank’s position in the banking sector.

In addition, Ghanem praised the efficiency and professionalism of the bank’s executive management, its employees and board of directors, and the continuous follow-up that led to achieving this exceptional performance in light of the current economic conditions on all items of the budget and income statement during the third quarter of 2022.

He expressed his hope for more enhancements in the bank’s activities and services to strengthen its position as one of the largest banking entities in the Egyptian market, through the implementation of its ambitious strategy towards expansion.