EGYPT – Housing and Development Bank (HD Bank) has reported a 6.3% Year on Year decline in its standalone net profit in the first nine months of 2020, the bank recorded EGP1.9 billion (US$120m) in profit before tax in September 2020 despite the exceptional circumstances caused by the novel coronavirus (COVID-19) pandemic.
Standalone net profit reached EGP1.424 billion (US$90.9m) in the January-September period of 2020, compared to EGP 1.520 billion (US$97.13m) posted in the corresponding period a year earlier.
In early June, Pharos set the fair value of the bank’s stock at EGP60.4 (US$3.86) per share, while maintaining an overweight recommendation.
Hassan Ghanem, Chairperson and Managing Director of the HDB said that the bank achieved a remarkable growth in total assets that supported the growth of operating revenues, as total assets increased to EGP56.7 billion (US$3.62bn) at the end of September 2020.
He added that the portfolio of customer loans and facilities reached EGP20.8 billion (US$1.33bn), reflecting a growth rate of 5.6%, with an increase in the retail loan portfolio by EGP2.5 billion (US$0.16bn), an increase of 24%. At the same time, customer deposits recorded EGP45.2 billion (US$2.89bn), reflecting a growth rate of 6.9%.
Net income from fees and commissions amounted to EGP33 million (US$2.11m), an increase of 15%, compared to the same period last year, while the return on property rights, including the net profit for the year, reached 20.5%.
The bank achieved a capital adequacy ratio, in accordance with Basel 2 requirements, at 22.06%. This reflects the strength of the bank’s financial position and gives it the necessary capabilities for future expansion.
Ghanem said that the bank continues to support real estate financing activity as a pioneer in the field of housing projects. The bank also aims to provide integrated solutions, through its subsidiary and sister companies, that integrate its various activities with the bank’s in the banking and real estate fields.
According to Ghanem, the HDB continues to take the proactive measures that it started from the first quarter (Q1) of 2020, with the possibility of taking other precautionary measures if the need arises, in light of the continuous follow-up on the effects of the crisis that the country is going through.
The Egypt-based commercial and investment bank principally operates in the housing and development sector. The institution also contributes to alleviating the housing problem through the establishment of an integrated group of housing projects across Egypt.
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