The Housing and Development Bank (HDB) has achieved EGP 2bn in combined profits after taxes during fiscal year (FY) 2019/20, despite the repercussions of the novel coronavirus (COVID-19) pandemic.
The latest data came as part of the bank’s reporting of its business results for FY 2019/20, which showed that the bank continues to achieve positive results and record strong growth rates. This comes despite the exceptional circumstances and negative effects resulting from COVID-19, and the pandemic’s effects on all fields and economic activities.
The HDB managed to achieve good results in FY 2019/20, as, in addition to its combined profits, it achieved a volume of independent profits reaching EGP 1.8bn.
Hassan Ghanem, HDB’s Chairperson and Managing Director, said that the bank has succeeded in implementing its strategic plan through which it seeks to be a top commercial bank.
Ghanem also said that the strategic plan was implemented through several main aspects, including the bank’s keenness on developing and providing banking services. These were designed to meet the different banking needs of customers, expand digital services, and work to develop them permanently.
The HDB pays special attention to financial inclusion, in line with the Central Bank of Egypt’s (CBE) plan to enhance financial inclusion and the transformation into a cashless society.
This is taking place by supporting and stimulating electronic payment (e-payment) methods, and providing various digital products. These products include the Internet and mobile banking, and the “Floussy Phone” wallet, in addition to expanding the issuance of payment cards.
Ghanem added the bank seeks to provide financial services to various segments of society, through geographical expansion to cover the various governorates by increasing the number of branches and ATMs. It is also working to raise the efficiency of existing branches and headquarters, in line with the tremendous developments taking place in the banking sector.
He pointed out that developing the human element and raising the efficiency of customer service comes is a top priority for HDB. It provides continuous training to provide the best service with the highest efficiency to customers.
This has helped it achieve breakthroughs and significant growth rates in all activities, especially in retail banking products in 2020, with a growth rate of 95%.
Ghanem explained that the bank achieved a remarkable growth in total assets, which supported the growth of operating revenues. Total assets increased by the end of 2020 to EGP 58.3bn, with a growth rate of 13.2% compared to 2019.
The bank’s customer loans and facilities portfolio reached EGP 21.4bn, reflecting a growth rate of 8.6%. Meanwhile, the balance of the retail bank portfolio increased in 2020 by EGP 2.375bn, reaching EGP 4.869bn, reflecting a growth rate of 95%.
He added that customer deposits recorded EGP 47.122bn, with a growth rate of 14.1%. The bank enjoys an adequate employment rate for deposits, as the ratio of total loans to deposits reached 45%, and net income from fees and commissions increased by EGP 30m, with an increase of 9% in 2019.
Ghanem pointed out that, thanks to the optimisation of the bank’s liquidity, the growth rate of bond and bond yields reached 14.8% compared to 2019.
He added that the HDB achieved a capital adequacy ratio in accordance with Basel 2 requirements at a rate of 22.22%, in light of the optimal application of credit policies.
Moreover, the bank’s investment portfolio is free of any risky assets, which reflects its strong financial position, and gives it the necessary capabilities for future expansions.
Ghanem emphasised that these positive indicators clearly reflect the efficiency and flexibility of the operational policies and procedures. They helped the bank develop its operations, overcome crises, address strong market competition, and utilise the opportunities available through its network of branches.
He noted that the bank continues to support the real estate financing activity as a pioneer in the field of real estate development projects. It also aims to provide integrated solutions, through its subsidiary and sister companies.
Ghanem affirmed that the bank seeks to achieve its clear goals in accordance with an ambitious strategy. This ensures the continuation of sustainable growth in all its indicators based on increasing the bank’s share in the banking and real estate activity.