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Housing and Development Bank achieves total profits of 862 million, with a growth rate of 13.7% during the first quarter of 2021

The results of the work of the Housing and Development Bank for the financial period ending on 3/31/2021 showed that total profits before taxes amounted to 862 million pounds, an increase of 13.7% over the comparison period, where the net profit after taxes amounted to 620 million pounds, in continuation of the bank’s success in Achieving good results for the three months for the first quarter of 2021, despite the exceptional circumstances and the negative effects resulting from the Corona virus pandemic on all areas and economic activities, whether at the local or global levels.

These results came after the required precautionary reinforcements from the Central Bank of Egypt for credit allocations to customers in light of a challenging operating environment, in continuation of the conservative policy pursued by the bank since the beginning of the Corona pandemic.

Hassan Ghanem, Chairman and Managing Director, announced that the bank had approved its independent financial statements for the three fiscal months ending on March 31, 2021, and continued to achieve good results, noting that these achieved results were the result of developing a clear strategy through which the bank seeks to be at the forefront of banks. Commercial Bank, and in implementation of the plan to develop banking services and products, where the previous period witnessed a remarkable development in the provision of all competitive banking services and products that suit the needs of all customer segments.

He pointed out that the Central Bank's policies to enhance financial inclusion, encourage dealing with banking institutions, keep pace with the digital transformation strategy and spread the culture of electronic payment, had a positive impact on the results we achieved.

Adding .. this is in addition to the geographical expansion and the increase in the number of branches and ATM networks to reach our customers in different parts of the Republic.

He stressed that the efficiency and professionalism of the bank’s executive management, its employees, its board of directors and the continuous follow-up had a major role in achieving these good indicators in light of the current economic conditions on all items of the budget and income statement for the first quarter of 2021.

The bank achieved a remarkable growth in total assets that supported the growth of operating revenues, as total assets increased by the end of the three months of 2021 to reach 63.3 billion pounds, with a growth rate of 8.6% compared to 2020, total loans and facilities rose to 22 billion pounds, with a growth rate of 2.85%. Deposits increased Customers reached 50 billion Egyptian pounds, with a growth rate of 7.9% compared to 2020. The net income from the return amounted to 818 million pounds, compared to 635 million pounds, an increase of 183 million pounds, an increase of 28.8%, represented by an increase in the return on loans and similar revenues by 8.6% and a decrease in the cost of deposits and costs. A similar increase by 6.3%. Growth in dividends, which amounted to 124 million pounds, an increase of 43% over the comparison period, which reflects the development of profits of subsidiaries and sister companies. Growth in the profits of the bank’s housing projects, which amounted to 114 million pounds, an increase of 27% over the comparison period. Capital adequacy in accordance with Basel II requirements is 20.59%, which reflects the strength of the bank's financial position and gives the bank the necessary capabilities for expansion in the future. The return on equity (including net profit for the period) is 7.9% for the first quarter The return on assets amounted to 1% for the first quarter of 2021. Net loans to deposits amounted to 39% for the first quarter of 2021, compared to 41% for the previous year.

It is worth noting that the financial statements for the period ending on 3/31/2021 came as a reflection of the current conditions, which had an impact on deposits, but the directions and policies of the senior management and the development of a plan to confront any exceptional circumstances and events and to ensure the stability of the financial position, strengthened the bank’s ability to Dealing with all scenarios that could be faced during the crisis.

The good results achieved by the HDB allow it to accelerate the pace of investment in digital technology to support future growth, and the profitability and strong capital base of the bank enables it to maintain strong levels of hedging to cover provisions for credit impairment in order to enable it to continue to support its customers and clients During the recovery journey from the repercussions of the global pandemic.