HD Bank’s loans rose by 223.59% in 5 years

Housing and Development Bank has achieved growth in the volume of loans provided to its customers, with the total portfolio reaching EGP 50.762 bn by the end of June 2024, compared to EGP 15.687 bn by the end of 2018, representing a growth rate of 223.59%.

This significant rise indicates a significant expansion of the Bank's role in supporting multiple sectors, especially the housing sector, which is one of the most important sectors contributing to the economy.

The significant shift in the volume of loans also reflects the Bank's ambitious strategy to expand the Egyptian banking market by providing innovative financing solutions that meet the needs of multiple groups, from individuals seeking real estate finance, to entrepreneurs and SMEs that are a fundamental artery of the economy.

This development comes in parallel with the Egypt's efforts to support the housing sector and finance real estate projects, enhancing the Bank's role in achieving sustainable development and increasing its ability to contribute to the achievement of economic growth goals.

In addition to its prominent role in the housing sector, HD Bank has contributed to affordable financing opportunities for young people and families, contributing to improved quality of life and enhancing individuals' ability to own property, reflecting the Bank's response to market trends and growing customer needs.

During the period under analysis, the highest annual growth rate and the largest value of the portfolio increased in 2022, with the Bank's total funding to EGP 38.2 bn by the end of 2022, compared to EGP 26.9 bn by the end of 2021, with a growth of 41.7% and an increase of EGP 11.2 bn.

The second-highest growth rate in total customer loans by the Bank was during 2019, with the portfolio rising by 25.8% year-on-year, reaching EGP 19.7 bn by the end of the year, compared to EGP 15.7 bn by the end of 2018, with an increase that exceeded EGP 4 bn.

As for the performance of the portfolio this year, the Bank's total customer loans rose to EGP 50.8 bn by the end of June 2024, compared to EGP 45.5 bn by the end of 2023, with a growth of 11.60% and an increase of EGP 5.3 bn.

During the period under analysis, the Bank has sought to achieve a measured balance between its individual and corporate loans, as reflected in each other's relative changes; the share of retail loans amounted to about 52.44% of the total portfolio of customer loans by the end of June 2024, compared to 54.75% by the end of 2018.

In contrast, the proportion of corporate loans increased to 47.56% of its total customer loans by the end of June 2024, compared to 45.25% at the end of 2018.

This gradual trend towards redistribution of the loans portfolio reflects the Bank's endeavours to diversify its sources of lending and reduce the risks associated with sector dependence, while maintaining a sustainable balance between various credit activities.

The Bank's corporate loans rose by 240.2%, reaching EGP 24.144 bn by the end of June 2024, compared to 7.098 by the end of 2018, with an increase of EGP 17.046 bn.

The portfolio of retail loans jumped to EGP 26.6 bn by the end of June 2024, compared to EGP 8.588 bn by the end of 2018, a growth of 210%, with an increase of EGP 18.029 bn.

Finally, the growing performance of the Bank reflects its ability to keep pace with economic changes and meet market needs, benefiting from a flexible strategy focused on achieving balance in its loans portfolio.

The Bank stands out as an effective partner in supporting the national economy, diversifying its sources of financing and providing innovative solutions that serve individuals and corporates alike.

As HD Bank continues to strengthen its role in the housing sector and expand the financing prospects for SMEs, it appears ready to play a greater role in achieving sustainable development and promoting economic growth in the coming years.

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