The Housing and Development Bank (HDB) achieved a profit before tax (PBT) of EGP 1.45 billion in the first half (S1) of this year, compared to EGP 1.309 billion in H1 2020, an increase of 141 M EGP (10.8%), according to the president and general manager of HDB Hassan Ghanem.
He added that the bank’s net profit was EGP 1.001 billion in the first half of 2021, up from EGP 1 billion in the comparison period.
According to Ghanem, this reflects the bank’s efforts to achieve good business results despite the novel coronavirus (COVID-19) pandemic and its negative impact on all areas and economic activities, whether locally or globally.
Ghanem said the bank’s continued positive growth was the result of continued support for its development and expansion plans, which had a direct positive impact on the bank’s performance.
He stressed that the bank has developed a clear and ambitious strategy, through which it seeks to be among the best commercial banks. In addition, it is implementing a development plan for banking services and products. In addition, there has been a remarkable development in the provision of all competitive banking services and products, in addition to digital products.
He pointed out that the policies of the Central Bank of Egypt (CBE) aimed at improving financial inclusion, achieving digital transformation and increasing the number of bank branches and ATMs had a positive impact on the results. by HDB.
Ghanem also pointed out that the efficiency and professionalism of the bank’s general management, employees and board of directors played a big role in achieving these good indicators, in light of the current economic conditions and their effects on all budget and revenue items. declaration.
He pointed out that the bank’s financial indicators show that a strong capital base is maintained as the bank has achieved remarkable growth in total assets, which has supported the growth in operating income, total assets s ‘rising to EGP 64.7 billion, from EGP 58.3 billion, an increase of EGP 6.4 billion (11%).
According to the bank’s financial statements, net loans and facilities increased to EGP 21.185 billion from EGP 19.350 billion, an increase of EGP 1.835 billion (9.5%). At the same time, HDB customer deposits amounted to EGP 52.146 billion, compared to EGP 47.122 billion, an increase of EGP 5.024 billion (10.7%). The bank’s loan-to-deposit ratio was 40.6%.
Ghanem stressed that the bank has managed to maintain the strengthening of its capital allocations to deal with credit risks related to the negative effects of the pandemic on economic activity. The bank’s capital allocations for portfolio credit risk increased by 5.2%.
According to the bank’s financial statements, net income from performance amounted to EGP 1.617 billion in H1 2021, compared to EGP 1.280 billion in the same period last year, an increase of EGP 337 million (26.3% ). It includes an increase in the yield on loans and similar income of 15.2% and an increase in the cost of deposits and similar fees of 6.3%.
Dividends increased 74.5% to 192 M EGP in H1 2021, reflecting the evolution of the profits of subsidiaries and sister companies. The bank’s earnings per share also stood at EGP 6.74.
HDB’s housing projects also made strong profits, reaching EGP 207 million, an increase of 31%.
According to the bank’s performance indicators, the capital adequacy ratio in accordance with Basel II requirements reached 21.62% at the end of the second quarter (Q2) of 2021. Return on assets reached 1.55 %, and return on equity, including net income, was 12.4% in the second quarter of 2021.
Ghanem stressed that HDB believes in the importance of expanding electronic payments, in accordance with CBE policies, and always seeks to provide the latest banking services and products that meet the needs of all customer segments.
He indicated that the bank has implemented a comprehensive digital transformation plan to keep pace with the successive changes in financial technology, expand the offer of digital banking services and work on their development continuously to facilitate banking transactions and disseminate the culture of cashless payment due to its extreme importance in the near future.
He explained that the bank had developed the services provided through the “Floussy Phone” electronic wallet, activating Internet banking and mobile banking services, ensuring the electronic reservation of housing and land and paying housing down payments by electronically.
“We appear to be expanding card issuance and a long-term partnership agreement has been signed with the International MasterCard to boost the use of electronic payments, in addition to prepaid cards, including ‘Meeza’ cards. This will help spread digital financial literacy, broaden the base of electronic payment and increase financial inclusion rates, ”Ghanem said.
He said the rate of credit card issuance and use increased in 2020 to almost 90%, with further targeted expansion of card issuance in 2021.
Ghanem revealed that there is a plan to expand ATMs across the country, in light of CBE’s initiative and the bank’s plan, as the number of ATMs for the bank has so far reached. nearly 320, with an increase of up to 30% in 2020. ATMs will increase to 400 in 2021.
He pointed out that the bank has installed 25 vocalized ATMs for people with special needs.
Ghanem stressed that the bank seeks, in accordance with the policy of geographic distribution and in line with financial inclusion, to be close to the public, especially in geographic locations where banking services are not widely available. He noted that the number of bank branches is currently 100. 10 new branches were opened in 2020.