Boom in Housing Bank’s performance indicators within 3 years since Ghanem assumed chairpersonship

The Housing and Development Bank has been seen performing exceptionally over the past few years which pushed it into first bank list of the fastest growing banks in 9 months.

The bank ranked first on the list as it has seen a growth rate in assets and deposits, individual deposits and corporates deposits portfolios during the first 9 months of 2022.

With such sturdy performance, the bank guarantees the consolidation of its market share in the Egyptian market while attracting more customers as part of its expansionary plans.

Since assuming his role as Chairperson and Managing Director of the Housing and Development bank at the end of 2019, Hussan Ghanem has been able to apply unprecedented investment and restructure plan that led to expanding in all banking activities across.

The plan included expanding the customer base and achieving a remarkable progress in digital transformation, which was reflected positively on the bank's indicators. It also worked on improving the quality of assets while achieve significant growth driven by an increase in shareholder equity.

Ghanem has focused also on utilizing its resources into financial investments. Thus, the ratio of financial investments to total assets increased from 32.69% at the end of 2018, to 34.20% at the end of September 2022. However, the ratio of loans to total assets decreased from 31.45% at the end of 2018, to 30.93% at the end of September 2022.

How the bank employed its deposits:

In terms of the bank’s tendencies towards employing its deposits, the percentage decreased from 45.97% at the end of 2018 to 39.29% at the end of the third quarter of 2022.

With regard to employing its deposits into financial investments it was relatively stable. It recorded 40.11% at the end of September 2022, compared to 41.5% at the end of 2018.

On the other hand, Ghanem has directed the bank’s deposits more into granting retail loans and credit. The total person loans have acquired 59.11 % of total loans portfolio by the end of September 2022 compared to 54.75% by the end of 2018.

However, the bank has downsized its corporate loans portfolio as it accounted for 40.89% of the total loans portfolio at the end of the Q3-2022, compared to 45.25% at the end of 2018.

As for the deposit portfolio, the bank tended more towards corporates at the expense of individuals, which is translated into the high percentage of the bank’s corporates deposits to total deposit portfolio. It rose to 68.36% at the end of the third quarter of 2022, compared to 52.12% at the end of 2018.

On the other hand, the personal deposits acquired 31.64% of the total bank deposits at the end of last September, compared to 47.87% at the end of 2018.

HDB adopts ambitious plan for digital transformation

HDB has adopted ambitions plans for digital transformation under the leadership of Ghanem. The bank has implemented a comprehensive plan for digital transformation to keep pace with the successive changes in financial technology. It also seeks to keep up with expanding digital banking services and constantly develop them to facilitate banking transactions, and spread the culture of cashless payments.

The HDB expansionary plan was drawn up to ensure that its customers are cared for at every stage of their service journey.

This was clearly evident in the various digital products and services the bank provides to its customers, represented in the online banking, mobile banking, e-wallet among others, which provides the bank’s customers directly with more than 50 services to facilitate their financial transactions. The bank also pumped large investments to develop and update these applications. .

The bank exceptional performance in terms of net profits:

The investment plan adopted by Ghanem was reflected into its success in improving its profitability indicators significantly. The bank’s net profits jumped by EGP 203.608 million to record 1.830 billion pounds in 2021, compared to EGP 1.626 billion in 2018.

In addition, the bank’s net profit jumped by 22.19%, to record EGP 1.752 billion pounds during the first 9 months of 2022, compared to EGP 1.434 billion pounds during the same period in 2021, an increase of EGP 318.304 million.

The return on assets, measures bank’s efficiency in investing its assets, recorded 1.96% in the first 9 months of 2022, which prompted the bank to occupy the third place on the First Bank list of the most efficient listed banks in investing assets during the first 9 months

However, the return on shareholders’ equity recorded 18.44% during September 2022, which qualified it to occupy the third place on First Bank index of ROE efficiency.

The financial portfolio growth:

Furthermore, Ghanem’s investment plan has given a boost to the bank’s financial portfolios. The assets portfolio jumped by 136.48% to record EGP102.335 billion at the end of September 2022, compared to EGP 43.274 billion pounds at the end of 2018 with an increase of EGP 59.061 billion.

In addition,  The bank’s deposit portfolio increased from EGP 34.122 billion at the end of 2018 to EGP 87.244 billion at the end of the third quarter of 2022, achieving a growth rate of 155.68%, and an increase of EGP 53.122 billion.

The corporates deposits portfolio jumped by 235.32%, to record EGP59.640 billion at the end of last September, compared to EGP 17.786 billion at the end of 2018 with an increase of EGP 41.854 billion, while individual deposits rose to EGP 27.603 billion at the Q3-22, compared to EGP 16.335 billion at the end of 2018 , achieving a growth rate of 68.98%, and an increase of EGP 11.268 billion.

The loans portfolio performance

The total loans portfolio rose to EGP 34.281 billion pounds at the end of last September, compared to EGP15.687 billion at the end of 2018, achieving a growth rate of 118.53% with an increase of EGP 18.594 billion

In addition, the personal loan portfolio jumped to EGP20.264 billion at the end of September 2022, compared to EGP 8.588 billion at the end of 2018 achieving a growth rate of 135.96%, and an increase of EGP 11.676 billion.

The bank’s corporate loan portfolio also increased by 97.46%, to record EGP 14.016 billion at the end of the third quarter of 2022, compared to EGP 7.098 billion at the end of 2018 with an increase of EGP 6.918 billion.

The development of financial investments

In terms of the financial investment portfolio, the bank also achieved remarkable growth, as it jumped by 147.33%, to record EGP 34.993 billion at the end of September 2022, compared to EGP 14.148 billion at the end of 2018, an increase of EGP 20.845 billion.

Ghanem also worked to increase HDB’s investments into subsidiaries and sister companies. The investments stood at EGP 2.137 billion at the end of the third quarter of this year, compared to  EGP 1.663 billion at the end of 2018, achieving a growth rate of 28.54%, and an increase of  EGP 474.66 million.