The Banking Executive Magazine - August Issue 2022

Egypt's Housing and Development Bank creased by 20.9% to reach about EGP 12.7bn and the retail loan port- folio increased by 13.2% to reach EGP 18.6bn compared to 2021, and the loan-to-deposit ratio reached 40% at the end of June 2022. Customer deposits also witnessed an increase of EGP 78.6bn with a growth rate of 25% compared to 2021, driven by the growth of corpo- rate deposits worth EGP 12.5bn with a growth rate of 31% compared to 2021, and individual deposits in- creased by EGP 3.2bn with an in- crease of 14.1% compared to 2021. Customer deposits represented 95.7% of the bank’s total liabilities as of 30 June 2022, ensuring the stabil- ity of the funding base. Ghanem also expressed the adminis- tration’s pride in the HDB’s ability to achieve the highest annual return on assets and equity in the Egyptian banking market, at 2.6% and 25.4%, respectively, which is a testament to the bank’s solid financial position. Ghanem indicated that the bank was able to achieve a remarkable growth in total assets, as total assets rose on 30 June 2022 to reach EGP 91.6bn with a growth rate of 20% compared to 2021, which led to a growth in op- erating revenues by 16.9% com- pared to 2021, registering an increase in net income to reach 20.3%. Ghanem stressed the bank’s constant keenness to develop and provide competitive products that suit all cus- tomer needs and segments, pointing out that as part of the bank’s efforts to expand its customer base, the bank recently launched the “HDB Royal” VIP service, which targets high net worth individuals. The bank provides services that are tailored to meet their banking needs. On the other hand, Ghanem indi- cated that the bank continues to im- plement its strategy in support of financial inclusion, by launching and developing a variety of banking serv- ices aimed at attracting new seg- ments of society that are not suffi- ciently covered by banking, with the aim of attracting them to deal with the banking sector based on trust and a strong position. enjoyed by the bank. In light of the HDB’s keenness on the necessity of empowering women, the bank launched accounts and services specifically designed for them, in light of the bank’s belief in the vital role that women play in ad- vancing economic growth. According to the geographical spread strategy and in line with the Central Bank’s policy to enhance fi- nancial inclusion, the Housing and Development Bank is adopting an expansion plan to cover the various governorates of the Republic, bring- ing the number of branches to 100, and increasing the spread of ATMs to reach more than 424 machines. Ghanem stressed that digital transfor- mation comes on the list of priorities of the Housing and Development Bank, as investment has been made in implementing the digital transfor- mation plan and developing the technological and digital infrastruc- ture, in the bank’s keenness to pro- vide different and competitive electronic services to customers, pointing out that the second phase of Internet and Mobile Banking services was recently launched, which allows the bank’s customers to have more than 50 services through these appli- cations. The Housing and Development Bank also believes in the important role of banks to support the small and medium enterprise sector, given their importance in advancing the na- tional economy, improving the stan- dard of living of individuals, eliminating unemployment and cre- ating job opportunities for individu- als belonging to different groups, as the small and medium enterprise portfolio increased by 7.11% to reach EGP 4.202bn. According to the bank’s business re- sults for the first half of 2022, the net income from the return increased by EGP 479m, an increase of 29.6% over the same period of the previous year. The capital adequacy ratio was 22.4%, which exceeds the minimum set by the central bank. The tier-one capital adequacy ratio was 21.3%, while the tier-two capital adequacy ratio was 1.1%. The bank’s profits before taxes amounted to EGP 1.676bn at the end of June 2022, an increase of 15.6% over June 2021. With regard to the financial indica- tors of the consolidated budget, the net profit after taxes amounted to EGP 1.303bn at the end of June 2022, an increase of 30% compared to June 2021, thanks to the growth in the bank’s profits and the growth of investment in its subsidiaries and sis- ter companies. Hassan Ghanem stressed that the strong performance achieved by the bank during the first half of this year confirms the efficiency of the devel- opment strategy adopted by the bank with its main axes, and also indicates the efforts and dedication of the work team in continuing to build on the bank’s record of success, expressing the management’s aspirations to dou- ble its efforts aimed at maximizing benefiting from the strength and pres- tige of the Housing and Develop- ment Bank and expanding in all of the bank’s commercial activities, in addition to developing the financing portfolio and strengthening the bank’s presence in the Egyptian mar- ket. Ghanem indicated that achieving the bank’s strategic objectives and bene- fiting from its position in the Egyptian banking sector will enable the bank to achieve the desired growth goals and consolidate its position, as one of the most prominent and leading banks in Egypt. ISSUE 164 AUGUST 2022 the BANKING EXECUTIVE 41