HDB achieves EGP 322m in profits in H1 of 2015: Vice Chairman

Loans to deposits ratio increases 51% compared to 41% average ratio of Egyptian banking market

The Housing and Development Bank's (HDB) net profits increased to EGP 322m in the first half (H1) of 2015, an increase of 71.3% compared to the same period of 2014.
The net profits before taxes amounted to EGP 451.9m, an increase of 87.5%, according to Essam Abu Hamed, the bank's Vice Chairman.
Abu Hamed added that the bank has achieved an increase of EGP 5.1bn in its assets, to a total of EGP 26.3bn, marking an increase rate of 24% compared to H1 of 2014.
The loan portfolio achieved growth of EGP 469m by the end of June, an increase of 6.6% from June 2014, according to Abu Hamed. The clients' deposits increased to EGP 10.7bn, a growth rate of 11.5%, which resulted from an increase of deposits by institutions and individuals.
Abu Hamed said the bank has a high rate of utilisation in terms of deposits, where the ratio of loans to deposit has reached 51%, compared to a banking sector average of 41% in January 2015.
He added that the capital adequacy ratio, in accordance with the requirements of the Basel ratio, reached 17.9%. This came in light of the application of the optimum credit policies, with the absence of any risky assets from the bank's investment portfolio.
The total return on loans and similar revenue at HDB amounted to approximately EGP 783.6m, an increase rate of 42.4%, compared to the same period in 2014.
The cost of deposits and similar costs reached approximately EGP 385.8m, an increase of 16.6%, compared to the same period of the past year. This was due to a 21.9% increase in deposits during H1 of 2015, compared to the same period of 2014.
Abu Hamed said the revenue net income during the first six months of 2015 reached EGP 397.8m, an increase of 81.4%, compared to the same period in 2014. The net income of fees and commissions has seen an increase of EGP 95.1m, an increase of 58.8%.
With regards to the bank's subsidiaries, Abu Hamed explained that these companies' returns distribution amounted to EGP 60.1m, an increase of 5.1% compared to the previous year.
He added that the bank's residential projects earnings increased by EGP 30.9m to reach EGP 99.6m, an increase of 45%.
The bank revenues during H1 of 2015 increased by approximately EGP 352m, to reach EGP 1.2bn, an increase of 41.4%, compared to the same period of the previous year.
The increase in total paid revenues and expenses was EGP 218.77m, to reach EGP 883.69m, an increase of 32.8% compared to the same period in the previous year.
The growth rates achieved by the bank in the indicators, according to Abu Hamed, are due to the flexibility and efficiency of the bank's operational policies and procedures. These have helped it to develop its operations, overcome crises, address strong competition in the Egyptian banking market, and take advantage of the available opportunities.
Abu Hamed added that the bank was keen to raise the efficiency of its human resources, in conjunction with that of the electronic system, whilst raising the bank's performance level compared to other banks.
He stressed that the bank's administration continued to support real estate activity as a fixture in the field of residential projects.
According to Abu Hamed, the bank is seeking to develop a strategy that allows it to continue the march towards sustainable growth in all indicators. This will depend on the increase of the bank's share in the financial market, and the field of residential projects.