HD Bank's corporate loans sector achieves significant performance in 3 years

Housing and Development Bank has seen a significant expansion in the granting of corporate loans in its strategic vision to strengthen its role as a major driver of the national economy. The Bank has focused on supporting productive and service corporates, which are the backbone of economic growth, which is clearly reflected in the portfolio of corporate loans over the past three years.

The bank's corporate loan portfolio jumped to 26.485 billion pounds by the end of September 2024, compared to 9.457 billion pounds by the end of the same period in 2021, with a growth rate of 180.06% and an increase of over 17 billion pounds

This extraordinary growth was supported by flexible financing policies and innovative programmes designed specifically to meet the needs of corporates of various sizes, both large and medium, with an emphasis on enabling them to expand and ensure their sustainability, as part of HD Bank's plan to move from a bank specializing in mortgage loans to a comprehensive bank.

The development plan led by Hassan Ghanem, Chief Executive Officer of HD Bank, also played a pivotal role in this transformation, including the restructuring of the entire corporate sector, and the appointment of Mohammed Gamal as the head of the bank's corporate sector from November 2021

Gamal, with his great experience and outstanding performance in this field, has been able to lead the corporate finance sector to achieve a significant breakthrough in the Bank's performance.

The corporate Loan Portfolio of HD Bank is strategically distributed to include several key financing products that meet different customer needs, including direct loans, debit current accounts, mutual loans and other loans

Turning to the performance of each of them separately, the strong growth in the Bank's total corporate loans was driven by a marked increase in direct corporate loans, rising to 13.889 billion pounds by the end of September 2024, compared to 3.716 billion pounds by the same period in 2021, a growth of 273.76%, and an increase of 10.173 billion pounds.

At the same time, syndicated loans saw a marked boom reflecting the Bank's role in financing major projects in collaboration with other banks, rising from 1.172 billion pounds by the end of September 2021, to 4.225 billion pounds by the end of September 2024, with a growth of 260.49% and an increase beyond the 3 billion pounds barrier

The significant growth in the corporate loan portfolio was not limited to a quantitative increase It also reflected the relative weight of corporate loans from the bank's total loan portfolio to form a larger part of total loans. Its relative weight rose from 37.68% by the end of September 2021, to 49.31% by the end of September 2024, reflecting the Bank's clear direction to strengthen its interest in the corporate loans sector

The Bank's surge in corporate loans also reflected positively on the overall structure of the Bank's asset portfolio, with the relative weight of enterprise loans rising from the total asset portfolio to 16.94% by the end of September 2024, compared to 13.67% by the end of September 2021.

This increase reflects the Bank's ability to manage its assets efficiently, oriented towards productive and service sectors that generate sustainable returns and contribute to the diversification of sources of income

Thanks to the Bank's strong performance in institutional lending, the Bank has been able to establish itself as one of the fastest growing banks in Egypt. This excellence has been reflected in leading many lists, most notably the "First Bank" list of the fastest-growing banks in corporate loans in 2022.

Many international institutions have also received tremendous awards in the field of corporate loans and syndicated loans, including the Bank's fastest growing corporate loans award in Egypt for 2023 from International Business and Gazette International.

The Bank also received the fastest growing bank in syndicated loan award for 2023 from several global institutions, including World Business Outlook, Global Brands Gazette International