EGP 1.393bn net profits of HDB by end of September 2018: Chairperson EGP 2.4bn net income from return with 64.9% increase rate compared to September 2017, says El Sebaey
The Housing and Development Bank (HDB) has achieved net profits of EGP 1.393bn after taxes by the end of the third quarter (Q3) of this year, compared to EGP 887.6m by the end of Q3 of 2017, according to Fathy El Sebaey, the bank's chairperson. He explained that the profit increase during the first nine months of 2018 (9M18) reached 57%, noting that these profits have increased by 112% compared to the profits targeted by the bank during that period, thanks to the professional administration of the bank and its employees' efforts. According to El Sebaey, the loans portfolio in the bank increased by EGP 2bn by the end of September 2018 by 17.4%. The capital adequacy ratio reached 20.49% in light of optimal application of credit policies, with the investment portfolio of the bank being free of any risky assets. HDB's operating income has increased during 9M18 by EGP 909m, with 40.7% increase, compared to September 2017, which indicates the bank's success in achieving actual returns from the activity, indicated El Sebaey. The growth rates in the operating income items achieved reasonable increases by 9M18 compared to the same period in 2017, noting that similar loans and incomes reached EGP 4.6bn by 9M18, with an increase rate of 56.6%, compared to September 2018. The net income of the return reached EGP 2.4bn, with an increase of 64.9%, while the net income from fees and commissions amounted to EGP 28.6m, with 16.2% increase, declared the bank's chairperson. Within the same context, El Sebaey revealed that the distribution of the profits of the companies affiliated to the bank have increased by EGP 77.9m by 9M18 with an increase of 10.7% compared to 9M17, pointing out that the profits of the bank's housing projects have increased by EGP 73.4m reaching EGP 370.3m by 9M18, with an increase rate of 24.7% compared to 9M17. "The bank's administrative expenses increased by 31.4% by 9M18, compared to 9M17 due to the increase of the number of branches of the bank, and opening new branches in order to reach all segments of the society, especially the one that do not deal with banks, in order to achieve the ambitious goals of the concept of financial inclusion in a way that enhances the position of the bank in the banking market and increase the spread across the country," El Sebaey remarked. According to El Sebaey, the HDB pays special attention to carrying out necessary developments for the technological infrastructure of banking work in order to offer the best and fastest service to clients, all of which had an impact on increasing depreciation expenses, which led to an increase in general and administrative expenses. The bank continues to maintain communication with its clients through offering the most distinct services that meet the client needs, as well as their trust in the bank as a banking institution able to offer new vessels that encourage saving and enhances that culture for all segments of the society, El Sebaey stressed. This comes in in line with the bank's ambitious plan to increase the number of its branches by the end of 2018, as well as increase the bank's investments in digital technology, in order to offer excellent service to clients with the aim of achieving the bank's strategy, which is based on improving the standards and quality of the service and obtain sustainable development, El Sebaey concluded.
