Egypt’s Housing Bank embraces a balanced policy in utilizing its resources in 9M

Housing and Development Bank has embraced a balanced policy in employing its resources as the rate resources employment recorded 71.40% at the end of September , compared to 71.16% at the end of 2021.

The resources employment indicator, launched by First Bank, measures how the banks operating in Egypt are employing traditional resources at their disposal (deposits + equity) in loans and financial investments.

The slight growth of the index over 9 months indicates that the bank followed a balanced policy in employing its resources.

Thus, the bank has invested EGP 69.272 billion of its traditional resources, which amounted to EGP97 billion by the end of the third quarter of 2022 into loans and financial investments. It invested EGP34.2 billion into loans and 34.281 billion pounds into financial investments.

Yet, HDB has directed 51.3 billion pounds of its traditional resources, which recorded 72.124 billion pounds by the end of 2021 into loans and financial investments. It invested EGP6.9 billion into loans and 24.3 billion pounds into financial investments.

The bank's traditional resources at the end of June 2022 were distributed between EGP 87.244 billion into its deposit portfolio, and EGP 9.7 billion into the value of equity at the end of the same period.

HDB’s Loans to deposit ratio jumped to 39.29% at Q3-22, compared to 42.8% at the end of 2021, while the financial investments to deposits ratio rose to 40.11 at Q3-22 compared to 38.7% at the same comparable period.

The bank’s resources employment rate during the first 9 months of 2022 was lower than the banking sector average despite its slight increase. Resources employment rate in the banking sector posted 90% at the end of June 2022, which indicates that the bank has recently moved towards implementing a more optimistic policy towards loans and financial investments, but it is still below the sector levels.