HDB reports EGP 2.038bn profits before taxes in September 2021, with 6.5% growth

Bank's recent results reflect strong operational performance, developing clear strategy to be among top commercial banks: Ghanem

The business results of the Housing and Development Bank (HDB) for the financial period ending on 30 September 2021 have shown its success in maintaining the strength of its financial position, as the total profits before taxes amounted to EGP 2.038bn, an increase of 6.5%.
Hassan Ghanem, Chairperson and Managing Director of the HDB, announced that the bank's financial statements for the nine-month period were approved, pointing out that the bank continued to achieve good results, as it recorded a net profit of EGP 1.434bn.
Ghanem indicated that these results reflected the bank's clear strategy, through which it seeks to be among top commercial banks, in addition to its keenness on providing distinguished banking services to customers in various fields.
Ghanem stressed that the bank continues to implement its development and expansion plans, in line with the state's orientation in the areas of digital transformation and financial inclusion.
He added that the growth of profit rates came despite the increase in the volume of spending and investment in infrastructure, especially technology, which acquired great attention from the bank's management.
According to a statement by the bank, regarding the independent financial statements during the third quarter of 2021, the increase in profits was supported by several factors, including a significant increase in net income from the return to exceed EGP 2.451bn, compared to EGP 1.972bn in the third quarter of 2020, a growth rate of 24.3%. Operating revenues increased by 10.4% to reach EGP 3.288bn, compared to EGP 2.978bn.
Ghanem said that the bank's financial indicators reflected maintaining a strong capital base, as the capital adequacy standard rate reached 22.40%, and the bank achieved a return on equity at a rate of 16.7%, and a return on assets of 2.07% in September 2021. The bank also achieved a remarkable growth in total assets, reaching EGP 69.16bn, a growth of 18.6%.
With regard to the net portfolio of loans and facilities, it amounted to EGP 22.8bn, with a growth rate of 18.3%. The bank was able to maintain its allocations during that period, with the aim of reducing the potential risks of credit losses related to the negative effects of the pandemic on economic activity.
The bank's corporate credit portfolio increased to EGP 5.947bn, an increase of 29.5% since December 2020, and the portfolio of retail loans and facilities witnessed a growth of 22.7%, reaching EGP 7.379bn.
Loans of SMEs have also achieved a growth rate of 14%. These businesses receive great attention from the state and the CBE. Moreover, the bank believes that these SMEs play a major role in economic and social development in Egypt.
HDB also continued its leadership in the field of real estate financing, as the portfolio of those loans witnessed a growth of 6.6%.
On the other hand, customer deposit balances achieved an increase of 19.4%, reaching EGP 56.262bn in September 2021, compared to EGP 47.122bn in September 2020.