HDB’s Q1 2026 net profit surpasses EGP 5bn amid strong growth across key indicators
Housing and Development Bank (HDB) delivered robust financial and operational performance during the first quarter (Q1) of 2026, supported by the effective execution of its ambitious 2025-2030 strategy. The results were reflected in growth across key business indicators, reinforcing the bank’s position among Egypt’s leading universal commercial banks.
The bank’s standalone financial results showed net profit before income tax and provisions rising to EGP 7.150bn in Q1 2026, compared with EGP 6.484bn during the same period in 2025, an increase of EGP 666m, representing annual growth of 10.3%.
Strategy driving sustainable growth
In this context, Hassan Ghanem, Managing Director and Chief Executive Officer of HDB, expressed pride in the bank’s strong financial and operational performance during the first quarter, stressing that the results reflect rapid progress in implementing the institution’s 2025-2030 strategy.
He said the strategy is centred on sustainable growth, operational efficiency and innovation, supporting the bank’s efforts to strengthen its position among Egypt’s leading banking institutions.
Ghanem noted that the bank’s solid financial position, efficient resource management and optimal utilisation of operational capabilities contributed to achieving balanced and sustainable growth across performance indicators, supported by strong profitability, asset quality and prudent risk management.
He added that continued efforts to improve operational efficiency and proactively manage funding costs helped lift net operating income by 10.8% year-on-year to EGP 8.393bn in the first quarter of 2026.
Net profit after income tax increased to EGP 5.179bn, compared with EGP 4.821bn in the corresponding period of 2025, representing growth of EGP 358m, or 7.4%.
Expanding customer base and market share
Ghanem said the bank continues to strengthen its customer base and expand market share through the development of banking products and solutions, alongside improvements in customer experience, in line with HDB’s vision of becoming a preferred banking partner in Egypt.
He added that the bank is continuing to invest in digital infrastructure and enhance the efficiency of banking channels to provide a more seamless and flexible customer experience while building long-term relationships founded on quality, innovation and trust.
Customer deposits rose to EGP 189.255bn in the first quarter of 2026, compared with EGP 179.128bn in 2025, an increase of EGP 10.127bn, equivalent to growth of 5.7%.
The increase was driven by a 4.6% rise in retail deposits to EGP 109.096bn and a 7.1% increase in corporate deposits to EGP 80.159bn, reflecting the diversity of the bank’s customer base and sustained confidence in its services.
Total assets expanded to EGP 245.321bn in March 2026, compared with EGP 229.804bn in 2025, marking growth of EGP 15.517bn, or 6.8%.
Meanwhile, total loans increased by 5.7% to EGP 69.446bn, supported by a 5.4% rise in the corporate and institutional loan portfolio to EGP 34.570bn and a 5.9% increase in retail lending to EGP 34.876bn.
Regarding asset quality, the non-performing loan ratio stood at 5.06% in March 2026, compared with 4.99% in 2025, while the coverage ratio improved to 164.3%, reflecting effective risk management and maintained credit quality.
Strong profitability and capital adequacy
Ghanem noted that the bank’s total loan-to-deposit ratio remained stable at 36.7% in March 2026, unchanged from year-end 2025.
He added that a 9.4% increase in loan yields and similar revenues, alongside a 6.6% rise in deposit costs and related expenses, contributed to net interest income climbing to EGP 7.663bn from EGP 6.932bn, an increase of EGP 731m, or 10.5%.
The bank also recorded strong profitability indicators, with return on average equity reaching 56.17% and return on average assets standing at 8.72%.
Its capital adequacy ratio reached 38.49%, significantly exceeding regulatory requirements. Tier-one capital adequacy stood at 37.4%, while tier-two capital adequacy was recorded at 1.09%.
At the consolidated level, net profits after income tax for the bank and its subsidiaries and affiliates rose to EGP 5.621bn, compared with EGP 4.959bn in the same period last year, representing an increase of EGP 662m, or 13.4%.
Expanding sustainable finance initiatives
As part of its commitment to sustainability, Ghanem said HDB continues integrating sustainability principles across financing and operational activities as a core pillar of its 2025-2030 strategy.
The first quarter of 2026 witnessed significant growth in sustainable finance activities, with total sustainable financing reaching EGP 11.14bn, representing annual growth of 46%.
The bank’s sustainable finance portfolio expanded to EGP 6.347bn, up 31% year-on-year.
Ghanem stressed that the bank will continue strengthening its role as a responsible financial institution through social responsibility and sustainable development initiatives, including support for healthcare, education and the empowerment of women, young people and persons with disabilities.
He concluded by expressing appreciation to customers, investors, the board of directors, executive management and employees, describing their continued confidence as the main driver behind the bank’s strong performance and growing position within Egypt’s banking sector.
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المصدر: Daily News Egypt