The general assembly of the Housing and Development Bank (HDB) agreed to renew Hassan Ghanem’s tenure as Chairperson and Managing Director for three years, until 30 March 2023.
Ghanem, who brings with him 33 years experience in the banking sector, including several leadership positions, took over as HDB Chairperson in December 2019, succeeding Fathy El Sebaey. He had previously held the position of the bank’s Vice Chairperson and Managing Director in January 2018.
Since his appointment, Ghanem has worked to improve the bank’s image from a one specialised in real estate activities to a commercial bank providing all banking services. Under his leadership, he has progressed the bank to a top-10 position in the Egyptian banking market.
The HDB’s ordinary and extraordinary general assembly was held virtually as scheduled on 30 March, in view of the current circumstances of coronavirus outbreak.
Ghanem said the bank’s 2019 financial statements showed profit before tax of EGP 2.548bn, up by 16% from 2018.
The Bank’s standalone net profits reached EGP 1.951bn at the end of the last year, rising 20% from 2018, while the consolidated net after-tax profits grew by 13% year-over-year to EGP 2.224bn.
Ghanem added that the bank has worked to improve its services for customers and increased the effectiveness of distribution and communication channels. It has done so by increasing the number of branches to 92, as well as raising its efficiency with Internet banking services, and improving employee performance through training. The HDB has also adopted flowcharts which contributed to the launch and growth of activities in 2019.
He explained that the bank’s assets increased by about EGP 8.2bn to EGP 51.5bn in 2019, with a growth rate of 19%, compared to 2018.
The bank’s loan and credit facilities portfolio increased to EGP 19.7bn, a 26% (EGP 4bn) growth, while customer deposits increased to EGP 41.3bn, marking a 21% increase of EGP 7.2bn.
The capital adequacy ratio according to Basel II requirements was about 20.85%, said Ghanem. This is in light of the optimal application of credit policies, with the bank’s investment portfolio free of any risk assets.
The HDB’s performance indicators also revealed that the return on loans and similar revenues reached about EGP 6.6bn by the end of 2019, an increase of 8.1%. This compares to 2018, where the loan return reached EGP 2.4bn, an increase of 28.7%, and the return from the balances at banks reached EGP 1.4bn, down by 16.4%, due to the 4.5% interest rate decline in 2019.
Meanwhile, the return on investment in government treasury bills and bonds amounted to EGP 2.8bn, an increase of 8.4% compared to 2018, which is an optimal operation of the bank’s liquidity.
The HDB’s net fee and commission income increased by 8.2% or EGP 25m. Dividends from the companies to which the bank contributes reached EGP 127.8m, an increase of 55%, and revenue increased by about EGP 900m to reach EGP 8bn, an 11% growth compared to 2018.
The cost of deposits and similar costs amounted to EGP 3.7bn, an increase of 23.7% compared to 2018, due to an increase in the deposit portfolio by 21% over 2018.
Ghanem stressed that the bank’s positive results clearly express the efficiency and flexibility of its policies and executive procedures. These have helped the bank develop its operations, overcome crises, address strong competition in the markets, and take advantage of opportunities, through its 92 branches. The bank plans to further expand its network to 106 branches in the coming period.
Ghanem said the bank continues to support mortgage finance activity, as the housing sector pioneer. He added that the bank aims to provide integrated solutions through its subsidiary and sister companies, which integrate its various activities with the bank’s main activity in the banking and real estate sectors.
The bank is looking forward to achieving the goals outlined in its future strategy, Ghanem said, which allow it to continue on the path of sustainable growth in all its indicators. The achievement of those goals will depend on the increase in the bank’s market share in the banking and housing sectors.