Egypt’s Housing and Development Bank (HDB) has announced its business results for the first half (H1) of 2020, which indicate profit before tax (PBT) of EGP 1.3bn during the period.
Whilst total customer deposits were recorded at EGP 38.6bn during H1 of 2020, the portfolio of customer loans and facilities achieved 8.6% growth to EGP 21.4bn, compared to EGP 19.7bn in December 2019.
The bank’s shareholders equity reached EGP 6.5bn, compared to EGP 6bn in last December, an increase of 8%.
The HDB noted that the results showcase the bank’s success under the leadership of its Chairperson and Managing Director Hassan Ghanem. The bank’s financial stability is particularly noteworthy due to the economic and fiscal repercussions of the novel coronavirus (COVID-19) pandemic.
The bank added that its management of the crisis in relation to its work has contributed to maintaining a strong financial position, supported by a strategic plan and a clear vision. This has led to profits and stable fiscal levels, despite the worldwide implementation of precautionary measures to all commercial and economic activities to contain the health crisis.
Ghanem said that the HDB was able to achieve good financial indicators despite the existing economic conditions in the past six months.
Commenting on the bank’s results during H1 of 2020, Ghanem said that the HDB continues to take proactive measures that were started in the first quarter (Q1) of 2020. These include strengthening customer allocations in the first and second phases, and an increased coverage in anticipation of a decline in credit quality during the coming period.
He added that credit losses in Q2 of 2020 were countered with further precautionary measures until the end of the period, including delaying customer dues. This would remain in place until the credit portfolio’s actual performance and customers’ regularity in payment became clear.
Ghanem stressed the bank’s full commitment to remaining at the forefront of Egypt’s banking sector. This will be supported by a clear and ambitious expansion strategy, providing competitive retail banking services across Egypt.