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Increase of HDB loan portfolio to EGP 10bn in late March 2017: chairperson - Daily News Egypt

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Increase of HDB loan portfolio to EGP 10bn in late March 2017: chairperson

The bank is still awaiting the CBE's approval to separate real estate activity from trade activity, according to El Sebaie


The loan portfolio and credit facilities in the Housing and Development Bank (HDB) has increased to EGP 10bn during the first quarter of this year, which ended in March 2017, according to Fathy El Sebaie, the chairperson and managing director of the bank.

El Sebaie explained that clients’ deposits have increased to EGP 14.6bn, noting that the bank aims to increase its deposits to EGP 19.4bn by the end of 2017 and the value of loans to EGP 10.6bn.

“HDB has achieved a growth in its profits during the first quarter of 2017 by 60.2%, reaching EGP 349.4m, compared to EGP 218.1m during the first quarter of last year,” said El Sebaie.

He pointed out that according to the bank’s planning budget for 2017, a growth of 39% in net profits is targeted by the end of the year, making profits reach EGP 975m.

Regarding the executive steps taken by the bank to separate investment and real estate activities from basic activities, the bank said that it is still awaiting the approval of the Central Bank of Egypt (CBE) regarding this issue.

The board of directors of the HDB agreed in principle in February 2017 to consider separating the bank’s real estate shares from the banking shares.

El Sebaie said that the HDB has recently launched a number of new saving and retail banking products, noting that launching these products is part of the bank’s strategy to expand in the local market, with the aim of reaching the largest number possible of clients.

“The bank’s strategy to expand includes the first aspect, which is expanding through introducing new distinct products that address all segments of customers. The second is by expanding geographically through the presence of the bank across the country, with new branches being established besides the 73 branches of the bank,” El Sebaie said. HDB Corporate ATM card is among the new products recently launched by the bank.

According to El Sebaie, this card allows the banks’ clients from the sector of companies and institutions, especially small and medium enterprises (SMEs), to carry out transactions on their current accounts through ATMs, which guarantees they adhere to their commitments and daily financial needs. The card can be used locally and internationally in operations of cash withdrawal and purchases.

The daily limit of withdrawals through this card is 20,000, which makes it suitable for the needs of many companies, especially SMEs.

El Sebaie added that the bank launched savings certificates in US dollars with a fixed return rate that is disbursed every three months.

According to El Sebaie, the certificate is issued for Egyptians living abroad and inside the country. The return can be added to any kind of account the client has in dollars. The certificate also provides its carrier with the right to loan or issue credit cards according to controls announced by the bank to lend with the guarantee of foreign-currency deposits.

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https://dailyfeed.dailynewsegypt.com/2017/05/29/increase-hdb-loan-portfolio-egp-10bn-late-march-2017-chairperson/
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