HDB doubles net profits to EGP 11bn in 2024, marking 83.1% surge
The Housing and Development Bank (HDB) has reported a substantial increase in pre-tax and provisioned profits, reaching EGP 16.855bn in 2024, compared to EGP 9.444bn in 2023. This marks a rise of EGP 7.411bn or 78.5%. Net profits after tax climbed to EGP 11bn, up from EGP 6bn, reflecting an increase of EGP 5bn and an impressive 83.1% growth rate.
A Path of Sustained Growth and Excellence
CEO and Managing Director of HDB, Hassan Ghanem, emphasized the bank’s exceptional trajectory, citing significant expansion across all business sectors in 2024. This success underscores the bank’s efficiency and its ability to execute its long-term strategy effectively over the past five years. By leveraging market opportunities and diversifying operations, HDB has bolstered its customer base and expanded its portfolio of tailored banking solutions.
Ghanem stressed the bank’s commitment to fostering strong, value-driven relationships with both institutional and retail clients. Customized financial solutions, aligned with customer needs and cost considerations, have enhanced HDB’s reputation as a trusted financial partner. The bank has also prioritized operational efficiency and proactive financial management to counter economic challenges, particularly inflation. Through a flexible and innovative business model, HDB has optimized resource allocation, ensuring sustainable profitability. This approach has driven a 67.6% surge in net operating income, reaching EGP 20.5bn in 2024.
Additionally, the successful execution of HDB’s customer-centric strategy has expanded its client base and increased market share. Strong customer confidence continues to fuel investments in a diverse range of banking products and services.
Robust Customer Deposit Growth
Ghanem highlighted that these strategic efforts resulted in a 43.1% surge in customer deposits, which reached EGP 144.95bn in 2024, up from EGP 101.27bn in 2023—an increase of EGP 43.68bn. Institutional deposits grew by 16.9%, reaching EGP 64.48bn, as the bank focused on diversifying its deposit portfolio to mitigate risks and enhance financial stability. Meanwhile, individual deposits soared by 74.5% to EGP 80.47bn, demonstrating strong customer trust in HDB’s offerings.
Expanding Total Assets
HDB’s commitment to reinforcing its leadership in the banking sector has translated into sustainable asset growth. Total assets reached EGP 179.45bn in 2024, up from EGP 125.1bn in 2023—an increase of EGP 54.35bn and a growth rate of 43.4%. This expansion was largely driven by the continued growth of the bank’s retail and corporate loan portfolios.
Loan Portfolio Growth and Strong Lending Standards
In 2024, HDB’s total loan portfolio grew to EGP 55.97bn, reflecting a 23.1% increase. Corporate and institutional loans expanded to EGP 28.36bn, up by EGP 7.79bn or 37.9%, while the retail loan portfolio climbed to EGP 27.6bn, marking an increase of EGP 2.69bn or 10.8%. This growth underscores HDB’s commitment to responsible lending, maintaining high-quality financing standards, and ensuring a diversified lending portfolio for sustainable expansion. Furthermore, the bank’s non-performing loan coverage ratio improved to 137.1% in 2024, up from 114.1% in 2023.
Loan-to-Deposit Ratio and Interest Income Surge
Ghanem noted that the bank’s loan-to-deposit ratio stood at 38.6% at the end of 2024, compared to 44.9% in 2023. A 70.4% rise in loan yields and similar income, coupled with a 53.5% increase in deposit costs and related expenses, contributed to an 81% surge in net interest income, which reached EGP 18.92bn, up from EGP 10.45bn.
HDB’s strong financial performance has driven remarkable returns, with net profit growth boosting the return on average equity to 55.7%, up from 46.9% in 2023. Return on average assets rose to 7.2%, compared to 5.2%, while the capital adequacy ratio stood at a robust 36%, well above the regulatory minimum set by the central bank. These figures reaffirm the bank’s commitment to maximizing shareholder value and overall financial resilience.
Ghanem also pointed to a notable increase in consolidated net profits, including subsidiaries and affiliated entities, which soared to EGP 12.45bn in 2024, up from EGP 6.56bn in 2023. This EGP 5.89bn increase reflects an 89.8% surge, reinforcing the success of the bank’s expansion and investment strategies.
Accelerated Digital Banking Growth
Ghanem revealed a 39% increase in online and mobile banking subscribers by the end of 2024, compared to the previous year. Digital transaction volumes grew by 60%, while the number of mobile wallet users increased by 75%, reflecting the bank’s commitment to digital transformation and customer convenience.
Commitment to Sustainable Finance
Reaffirming HDB’s dedication to sustainable banking, Ghanem highlighted the bank’s active participation in financing strategic projects aligned with national green economy and sustainability initiatives. HDB continues to prioritize eco-friendly solutions, investing significantly in sustainable finance. The bank’s total financing allocated to sustainable finance principles, including corporate finance, syndicated loans, and SME funding, reached EGP 8.37bn.
Through its strategic vision, digital transformation, and commitment to financial and operational excellence, HDB remains at the forefront of the Egyptian banking sector, delivering sustained value for customers, stakeholders, and shareholders alike.
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