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Housing & Development Bank
Investor Presentation
Standalone Financials
Full Year 2019
March 2020
Disclaimer• In this presentation Housing and Development Bank (HDB) may make forward
looking statements, including, for example, statements about management’s
expectations, strategic objectives, growth opportunities and business prospects. Such
forward looking statements by their nature may involve a number of risks, uncertainties
and assumptions that could cause actual results or events to differ materially from
those expressed or implied by these statements. Examples may include financial
market volatility; actions and initiatives taken by current and potential competitors;
general economic conditions; and the effect of current, pending and future legislation,
regulations and regulatory actions. Furthermore, forward looking statements contained
in this document that reference past trends or activities should not be taken as a
representation that such trends or activities will continue.
• Housing and Development Bank (HDB) does not undertake any obligation to update
or revise any forward looking statements. Accordingly, readers are cautioned not to
place undue reliance on forward looking statements, which speak only as of the date on
which they are made.
• This document is provided for informational purposes only. It does not constitute an
offer to sell or a solicitation of an offer to buy any securities or interests described within
it in any jurisdiction. We strongly advise potential investors to seek financial guidance
when determining whether an investment is appropriate to their needs.
Note: Rounding differences and figures may appear through out the presentation.
2
Content
• Historical overview
• Business review
• Financial review Stand Alone
• Stock
• Coverage
• Contact Us
3
A progressing commercial bank with an
attractive real estate flavor; your window on
two sectors
4
Historical overview
5
Our Start
• Egypt’s Housing & Development Bank was established
40 years ago; in 1979, as an arm of the Ministry of
Housing. At the time of its launch it had a clear mandate
to finance moderate housing units for Egyptians, while
also bridging the gap between supply and demand in the
nation’s real estate market.
• By the late 1980s & 1990’s HD Bank had already
successfully concluded many flagship developments,
which brought new housing units to many urban
communities and strategic investments in the country’s
northern coastal resorts.
6
Ownership Structure
7
29.81%
5.03%
8.92%
8.29%7.41%
7.23%
9.74%
23.56%
ShareHolders
New Urban Communities Authority (NUCA) Egyptian Endowment Authority
Misr Life Insurance Company Misr Insurance Company
Housing Projects Fund Ali Ben Hassan El Dayekh - RELACO
REMCO Egypt - Abdel Moneim El Rashed Free Float
Our Transformation
8
• In 2003, Egyptian banking law 88 prohibited the existence of specialized banks
in Egypt, and HDB was restructured to become a conventional Commercial
bank, with a new management appointed. The bank nevertheless still owns
several plots of land which will be developed into commercial and residential
projects for sale.
• The New Management implemented a five-year plan to turnaround the bank that
started in 2003 till 2008 and in 2009 a new 5 year plan was set in place till 2013.
However, due to the political & economic situation the implementation time line
was extended till 2017. Then a new 5 year plan focused on heavily investing in
new IT systems, renovating its branch network and increasing its marketing
efforts. HDB currently has a branch network of 92 branches based on Full Year
2019. Plus, a new 5 year Strategic plan from 2018 till 2022 was set in action.
As a result we became:
• A growing commercial bank in the Egyptian market.
• Upgraded the human capital of quality to support the growth of both the
banking and real estate businesses and capitalizing on strong ICT Platform.
• New Bank products and Real Estate Projects continue to be the key at
increasing our growing client base & performance based on top notch IT.
Our Journey
Founded in 1979 as a specialized entity for
real estate development &
provision of housing units to different sectors of the economy
Initial capital of
EGP 18mn
Registered on
EGX in 1983
Continued
growth of
real estate
investments
1993: raised
paid-in
capital
to EGP
54mn
2000: raised
paid-in
capital to
EGP
122.3mn
through
existing
shareholders
2003:
Introduction
of new
banking
law
Bank
restructured,
increased
focus on
growth of core
banking
business
Further
expansion in
real estate
development
to be carried
out through
subsidiaries
In 2006 provided an integrated banking system to cater to the retail sector
Raised: paid-in capital increased to EGP 500mn through existing shareholders
In 2009 investment in Hyde Park Development
Paid-in capital
increased to
EGP 1.2bn
through a
private
placement and
portion through
HDB`s ESOP
First time non-
Egyptians
allowed
ownership of
HDB shares;
their ownership
reached 20%
Vitalized the
corporate
identity
campaign
Introduction of
stage I of the
new IT system
to streamline
performance
Increased
street visibility
through
increased
branches,
ATMs and
POS
Increased real
estate
activities,
investment
reached
EGP 912 mn
1979 1993 2003 2006 2010 2013
9
2014
Participation in
the CBE
Mortgage
Finance Initiative
for Medium &
Low Income
Housing
Increased street
visibility through
increased
branches, ATMs
and POS
Started the
restructuring of
Hyde Park
Development
after using the
Equity Associate
method
Our Journey
10
2015
Participation in
the CBE
Mortgage
Finance
Initiative for
Medium & Low
Income Housing
and becoming
number 1
market share
among peers.
Increased street
visibility through
increased
branches, ATMs
and POS
2016
Participation in
the CBE
SME’s lending
initiative that
lends loans
with a
subsidized 5%
interest rate.
Market Leader
in CBE
Mortgage
Finance
Initiative with
EGP 2,0 Billion
as of Full Year
2016
2017
Participation in
the CBE SME’s
lending initiative
that lends loans
with a 5%
interest that have
reached 12% out
of the 20%
required by 2019.
Allotted another
EGP 1 Billion
under the CBE
Mortgage
Finance Initiative
reaching a total
of EGP 3,6
Billion.
2018
Allotted another
EGP 1,3 Billion
under the CBE
Mortgage
Finance
Initiative
reaching a total
of EGP 4,9
Billion to more
than 54,309
clients.
2019
Added more
than 10
branches
compared to
full year 2018 .
Allotted another
EGP 300
million under
the CBE
Mortgage
Finance
Initiative
reaching a total
of EGP 5,462
Billion to more
than 59,818
clients.
Board of Directors
11
Egyptian
Awkaf
Organization
1 Member
New Urban
Communities
Organization
4 Members
Misr
Insurance
Company
1 Member
Housing
Financing
Fund
1 Member
Misr For Life
Insurance
1 Member
Vice Chairman
& Managing
Director
(Executive)
Hassan Ghanem
Independent
Board
Member
1 Member
Chairman
Fathy El Sebai
Total Number of 11 Board Members
• Board composition: 2 Executives and 9 Non-Executives
• 9 Board Committees meeting on a regular basis, namely:
Audit Committee
Risk Committee
Remuneration Committee
Governance & Nomination Committee
Executive & Operational Committee
Investment Committee
Engineering Committee
IT Enhancement Committee
CSR & Donations Committee
• Remuneration Committee comprised of the main shareholders and independent Board Members
• Independence of Compliance, Internal Audit and Risk Management functions
• Functioning Committees ensure that HDB Management fully complies with all regulatory requirements as well as
internal policies ensuring strict adherence to best practices with respect to our Stake holders like clients,
employees and third parties dealings.
12
Corporate Governance
Our Organization Chart
Chairman
Remuneration Committee
Executive Committee
Assistant Managing Director
for Engineering &
InvestmentsInvestment
Committee
13
Board Affairs
Audit Committee
Governance &
Nomination Committee
Board Of Directors
Technical Office
Risk Committee
Engineering
Committee
IT Enhancement
Committee
CSR & Donations
Committee
Assistant Managing
Director for Corporate
Banking, Treasury &
Syndications
Head of Legal
Department
Assistant Managing
Director for Retail
Banking
Vice Chairman &
Managing Director
Assistant Managing
Director for Banking
Operations
Mortgage Finance
Department
Planning & KPI
Department
Security
Department
PR & Marketing
Department
Financial
Department
Human
Resources
Department
National Housing
Projects Department
National projects
Digital Reservations
Department
Support & Follow
Up Department Financial Control
Department
Investor Relation
Department
Customer
Protection
Department
CRO
IT Security &
Governance
Internal Audit
Corporate
Governance
What We Aim For
Our Vision
To be within the top 10 ranked commercial banks in Egypt,
while maintaining the current high operational efficiency.
Our Mission
Search for excellence in providing our commercial & real
estate products through the continuous upgrade of our
human capital and we strive to excel in providing our
services to meet our clients and shareholders
expectations.
14
Our Strategy
Accelerate
Overall
Banking
Growth
HDB
Strategy
Capitalize On Our Housing Reputation To Attract
New Clients Into Our Banking Business
Increase
Customer
Base
Provide
Integrated
Real Estate
Services
Maximize
Profitability
Continued
Customer
Satisfaction
Provide Integrated Real Estate Services
Construction and sale of housing units through
affiliated companies
Provide real estate financing
Supervision of implementation of housing projects
Real estate business appraisal
Capitalize On Our Housing Reputation To Attract
New Clients Into Our Banking Business
Capitalize on our reputation and experience in
providing full range of housing and property
development services plus the current banking retail
client base to attract new SME’s costumers to our
banking services.
Increasing Customer Base
Enhance corporate lending, increase SME’s financing
whether through tailored loans, or shelf products.
Improve client access through increased street
visibility, introducing a wider variety of short, medium
and long term saving schemes
Continued Customer Satisfaction
Introducing new products to capture targeted growth
in both banking and real estate business
15
Our Products Range
Retail Products
Current accounts
Saving products
Loan products
Debit/Credit /Prepaid Cards
Life insurance services
Safe deposit boxes
Payroll services
Vodafone cash
Housing installment and e-payments
Corporate Products
Credit facilities
Trade finance
Limited investment
banking services
e-payments
Financing customs & taxes
Specialized services to SMEs
Treasury & cash management
Financing customs & taxes
Specialized services to SMEs
Treasury & cash management
Real Estate
Products
Real estate financing
Real estate investment & development*
Construction of housing units*
Supervision of implementation of the projects owned by HDB & others * (NUCA)
Real Estate consulting andengineering services**
Business appraisal and feasibility studies**
• *Through HDB’s subsidiaries & affiliates
• ** Through the bank investment & Real Estate 16
SME’s Products
Credit facilities
Trade finance
e-payments
Financing customs & taxes
Financing customs & taxes
Specialized services to SMEs
Treasury & cash management
Our Way Forward
Introduction of Internet,
Online and Mobile
banking services to the
bank clients in 2019
Increasing planned
branch network set to
capture a greater
portion of retail
business to reach 100
branches by end of 2020
Increase Loan & Deposit Books coupled with the participation in
the CBE SME’s & Mortgage Finance
Initiatives
Hidden equity; around 2
million sqm of
undeveloped land
carried at an average
cost of EGP 750/msq
Trading at Price to Book
of around (P/B 19) 1 &
Price to earnings (PE)of
around 3.8 as estimated
for full year 2019
HIGH GROWTH PROSPECTS OVER THE NEXT FIVE YEARS
17
Business Review
18
Housing & Development Bank
Banking Business Real Estate Business
HDB has direct and indirect ownership positions in 17 subsidiaries and sister companies;
total EGP 1,663,314,124 million as of Full Year 2019 and ownerships range between 16%
to 92% with activities including:
• Mortgage finance
• Property development
• Property management services
• Insurance
• Real estate development
• Management of real estate funds
• Leasing Finance
Investment Business
Includes some subsidiaries & sister companies
Our Business Model
19
Our HDBK Group Structure
20
Housing & Development Bank Group
Housing & Development Co.
For Real Estate Investment 60% Ownership by HDBK
EL-Tameer Co. For Housing & Utilities
35% Ownership by HDBK
City Edge Development
38% Ownership by HDBK El-Tameer Co. For Security & care services
39% Ownership by HDBK
El-Tameer Co. For Mortgage Finance
24.80% Ownership by HDBK
El-Tameer Co. For Asset Management
15.70% Ownership by HDBK
El-Tameer Co. For Real Estate Investment Funds
24% Ownership by HDBK
HD Company For Trading Securities
20% Ownership by HDBK
Tameer Co. for Real Estate Investment Development
37% Ownership by HDBK
El-Tameer Co. For Financial & Real Estate Marketing
39% Ownership by HDBK
El-Tameer Co. For Technological services
40% Ownership by HDBK
Obelisk for investment fund management
30% Ownership by HDBK Hyde Park Co. for Real Estate Development
36.90% Ownership by HDBK
38%
51%
76%
31%
21% 51%
60%
60%
51%
18.2%
• Blue Line elaborate Bank Direct Investment
• Red Line elaborate Holding Company Investment
2%
EL-Tameer Co. For Security & Money Transfer
40% Ownership by HDBK
Holding Co . For Investment &
Development
92% Ownership by HDBK
EL-Tameer Co. For Housing & Utilities
35% Ownership by HDBK
El-Tameer Co. For Security & care services
39% Ownership by HDBK
EL-Tameer Co. For Security & Money Transfer
40% Ownership by HDBK
Tameer Co. for Real Estate Investment Development
37% Ownership by HDBK
El-Tameer Co. For Financial & Real Estate Marketing
39% Ownership by HDBK
El-Tameer Co. For Technological services
40% Ownership by HDBK
Hyde Park Co. for Real Estate Development
36.90% Ownership by HDBK
EL-Tameer Co. For Housing & Utilities
35% Ownership by HDBK
El-Tameer Co. For Security & care services
39% Ownership by HDBK
Our Equity Investments
21
Serial Company NameParticipation Direct
& Indirect Value in EGP
Subsidiaries
1 * Holding Co . For Investment & Development 92%
460,000,000
2 Housing & Development Co. For Real Estate Investment 94.96%
180,000,000
Sister Companies
3 EL-Tameer Co. For Housing & Utilities 35% 5,250,000
4 El-Tameer Co. For Mortgage Finance 24.83% 175,161,370
5 El-Tameer Co. For Asset Management 62.62% 942,000
6 El-Tameer Co. For Security & care services 94.82% 1,521,000
7 El-Tameer Co. For Real Estate Investment Funds 93.83% 4,800,000
8 El-Tameer Co. For Financial & Real Estate Marketing 94.20%
2,178,158
9 El-Tameer Co. For Technological services 86.92% 4,000,000
10 Tameer Co. for Real Estate investment Development 92.77%
74,000,000
11 HD Co . For trading securities 48.09% 1
12 Obelisk for investment fund management 49.32% 1
13 City Edge Development 39.52% 491,473,000
14 Misr Sinai Tourism Company 30% 1
15 El Tameer Company for Security & Money Transfer 94.82% 6,000,000
16 Gardien Leasing Company 78% 59,366,343
Company Name Participation % Value in EGP
Equity 1 Hyde Park Real Estate Co. For Development 53.66% 198,622,250
Total 1,663,314,124
HDB Financials Components
• Based on the above HDB has 2 kinds of financial:
1- Standalone Financials: which compromises of the bank
commercial activity & Real Estate that is 100% owned by
bank.
2- Consolidated Financials: which compromises of the
bank standalone & all investment activity in sister,
subsidiaries and equity associates companies.
22
Real Estate Business Model Two Real Estate Models within HDB:
• Model One: Projects directly under HDB 100% ownership being sold only after the total
completion of construction and mainly for lands allocated to the bank before the 2003
banking law.
• Model Two: Projects that are owned by subsidiaries that are sold off Plan or during the
construction phase.
In both Models revenue is recognized & recorded upon delivery of units. * All sales will be done at current market prices
Ready to Sell Units across Projects 100% Owned by HDB For Full Year-2019
Full Year 2019
Project Name Description Segment Total Number of
Units Sold Units
Avalaible Units for Sale
October - El Montazah - Phase 1&2&3 Residential Middle 900 814 86
New Cairo - Acacia - Phase 1 &2 &3 Residential Upper Middle 813 544 269
Ganat El Obour Residential & Commercial Economic 1620 1618 2
El Arish City Residential Economic 184 4 180
Qena Governerate Residential Economic 252 247 5
Administrative Building Plot 28 Office Upper Middle Leased
New Cairo - Palma Residential & Commercial Economic 95 21 74
Administrative Building- SOHAG Residential & Commercial Economic 51 5 46
Hurghada Residential & Commercial 174 3 171
PORTSAID- ELGOWHARA Residential & Commercial 294 294
Diffierient Sites Residential & Commercial 76 19 57
4,459 3,275 1,184
Potential Upside of Revenue & Profit
24* All plots will be developed and sold as final product with current market price
HDBK Land Bank* as of Full Year 2019
Item
Cost EGP MillionLand Area square
meter
6 October Project El Montazah - Phase 2 and 3
0 0
New Cairo - Acacia - Phase 2&329,847,940 6,800
Hurgada - Red Sea Land 6,413,588 5,742
El Korum Street Land Number 24 - Office Building
26,617,810 748.85
Helwan Land 125,055,798 105,000
Total187,935,136 118,291
25
Potential Upside of Revenue & Profit
Work In Progress as of Full Year-2019
Project Name Type of Units Number of
Units Value in Million EGP
Hurgada - Industrial Zone Apartments 140 49,434,522
Hurgada Commercial Buliding 217,137
Acacia - Nursery Nursery Buliding 19,071
Acacia – Commercial Mall Commercial Buliding 25,622,212
Koroum Office Building Commercial Buliding 3,947,649
434 79,240,591
26
55 58 59 59 61 62 6468
80 84
96
64 64 65 65 68 68 68 70 71 71 72
98
114 118 120
152 156 156 174
224230
235
0
50
100
150
200
250
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Branches P.O.S A.T.M
Our Bank Visibility
Financial Review Stand Alone
27
28
• Total Number of Issued Shares is 126,500,000 million with a book Value of
EGP 10
• HDB is listed & traded on the Egyptian Stock Exchange (EGX)
• Next Div. / Ex. Date EGP 2.5 on 15th April for X date 12th April 2020 for full
year 2017
• Est. Free Float 39.9%
Our Bank Financial Snap Shot
670
1,150 1,150 1,150 1,150
1,265 1,265 1,265 1,265 1,265 1,265
0
200
400
600
800
1000
1200
1400
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Paid in Capital
Our Bank Standalone Financials
29
Bank Standalone Financials 1/1/2019 till 31/12/2019 On 1/1/2018 till 31/12/2018
13.73
1,951
2,548
402328
2,942
6,606
12.85
1,625
2,195
444304
3,148
6,108
6.8%
20.1%
16.1%
-9.5%
7.9%
-6.5%
8.2%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
0.00
1000.00
2000.00
3000.00
4000.00
5000.00
6000.00
7000.00
Earnings Per ShareNet profit for the
year
Net profit for the
year before taxes
Housing projects'
profits
Net fees and
commisions income
Net interest incomeInterest From
Loans & Similar
Income
1/1/2019 - 31/12/2019 1/1/2018 - 31/12/2018 Y-o-Y
EGP million
30
Capital Adequacy Ratio
Capital increase:
EGP500mn to
EGP1.2bn
Return on Assets & Equity
13.7%
24.2% 24.2%25.5% 25.2%
23.7%21.62%
20.6% 19.8%18.6%
16.58%
13.76%
17.22%
21.0% 20.85%
0%
5%
10%
15%
20%
25%
30%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Tier 1 Capital to Basel I Tier 1 Capital to Basel II
29.1%
11.2%9.4%
11.8%13.2%
15.8%
19.9%
23.0%
30.2%
33.3% 32.2%
2.3% 1.6% 1.3% 1.7% 1.7% 1.4% 1.9% 2.0%2.1% 3.4%
3.8%
0%
5%
10%
15%
20%
25%
30%
35%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Return on equity Return on assts
Our Bank Stand Alone Financial Snap Shot
31
Our Bank Stand Alone Financial Snap Shot
34.9% 37.1%38.7%
47.1%
40.0%42.0%
56.0%
62.0%
54.0%
51.5%
55.0%
65.1%
62.9%61.3%
52.9%
60.0%
75.3%
73.0%74.0%
74.0%
69.0% 69.0%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Net operating margins Cost / Income ratio
Unusually high TB rates & auction
land sales distort ratios
Net Operating Margins & Cost to Income Ratios
32
1,146
1,242 1,265 1,546 1,537 1,770
2,566
3,632
5,715
7,109
8,310
882 1,012 1,062 1,244 1,202 1,332
1,891
2,712
4,226
4,914
5,762
264230 203 302 335 438 674
920
1,489
2,195 2,548
244 203 176 206 247 306492 644
1,075
1,6251,951
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Total Revenue Total expenses Net profit before tax Net profit After tax
EGP million
Our Bank Stand Alone Financial Snap Shot
Net Profit
Consistent Annual Net Profit Growth
Cost to Income Ratio Calculated like Market
33
Our Bank Stand Alone Financial Snap Shot
1,861,221,533
2,578,016,126 2,554,512,805
3,632,391,994
5,715,596,734
7,109,057,163
8,309,522,514
497,407,655632,305,929
1,073,100,942
1,645,620,907
2,066,412,3941,924,450,070
2,063,298,392
26.72%24.53%
42.01%
45.30%
36.15%
27.1%
25%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
0
1,000,000,000
2,000,000,000
3,000,000,000
4,000,000,000
5,000,000,000
6,000,000,000
7,000,000,000
8,000,000,000
9,000,000,000
2013 2014 2015 2016 2017 2018 2019
Revenue Cost to Income Mkt Percent
34
EGP million
Our Bank Stand Alone Financial Snap Shot
Development of Assets
14,037 13,004 14,59212,657
21,248
25,335
31,965
2,149 2,622 3,981 3,584 4,6078,835
11,08714,247
33463
25,402
12,584
1,822 2,2822,095 2,195
2,570
4,322
5,039
6,135
4742
6,162
18,317
390630
904 9441,004
1,056
1,100
1,127
1038
917 1,040
92112
132 154152
161
242
310
509
696 942
374447
278 366235
360
361
833
745
1,004 1,117
0
10,000
20,000
30,000
40,000
50,000
60,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Cash,Mkt.Securities&T-Bills Investments Real Estate Activity Fixed Assets Other Net Loans
10,619
47,79151,460
51,936
35
Total Liabilities & Shareholder’s EquityEGP million
Our Bank Stand Alone Financial Snap Shot
47,692
6,568 7,505 7,558 8,134 8,869 9,62611,733
13,642
40,884
34,122
41,285
1,796 1,671 1,553 1,455 1,310 1,282
1,733
2,807
4,156
5,218
650
745957 980 886 896 1192
541
940
206
1,185
1,316
414870 904 938 963
9821,208
1,574
2,297
3,610
4,792
426503 1,891 442
1,400
6903
8855
11,731
2,675
2,336
1,097
0
10,000
20,000
30,000
40,000
50,000
60,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Customer Deposits Long Term Loans (incl.subsidised) Other Inv
Reserves & Retained earnings Down Payments - Real Estate Other Obligation Taxes
12,657 14,037
21,250
10,617
51,936
31,993
13,00414,635
25,427
51,460
47,791
36
Our Bank Stand Alone Financial Snap Shot
Deposit Development EGP million
6,5687,505
7,558 8,134 8,869 9,626
11,733 13,641
40,884
34,122
41,285
26.6%
14.3%
0.7%
7.6% 9.0% 8.5%
21.9%16.3%
81.3%
-17%
21.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Deposits Deposits Growth
37
Our Bank Stand Alone Financial Snap Shot
Deposit Composition & Growth YoYEGP million
5,819 6,1716,985
8,539 9,070
24,416
16,33617,882
2,314 2,697 2,640 3,1944,571
16,46817,786
23,403
8,1338,868
9,625
11,733
13,641
40,884
34,122
41,285
0%9% 9%
3%
16%
200%
-17%
21.0%
-50%
0%
50%
100%
150%
200%
250%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2012 2013 2014 2015 2016 2017 2018 2019
Retail Deposists Corporate Deposits Total Deposit Book Growth YoY
38
Loan Development
Our Bank Stand Alone Financial Snap Shot
EGP million
6,1886,989 7,100
6,362 6,5887,100
8,207
10,456
13,409
15,687
19,729
1.2%
12.9%
1.6%
-10.4%
3.6%
7.8%
15.6%
27.4%
28.2%
17.0%
25.8%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
0
5,000
10,000
15,000
20,000
25,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Total Loans Loan BookGrowth
39
EGP million
Our Bank Stand Alone Financial Snap Shot
Development of Loan Book by Type
3,099 3,248 3,2602,702 2,831 2,780 2,908 3,193
5,865
7,099
9,824
1,7462,202 2,290 2,118 2,123
2,6133,006
2,586 2,358 2,182
3,027
1,318 1,523 1,534 1,525 1,617 1,6912,278
3,793
5,169
6,3876,852
6,189
6,989 7,1006,362 6,588
7,100
8,209
9,588
13,409
15,687
19,729
0
5,000
10,000
15,000
20,000
25,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Corporate Retail Mortgage Credit cards Total
40
Our Bank Stand Alone Financial Snap Shot
Loan to Deposit Ratio EGP million
6,5687,505 7,558 8,134
8,8699,626
11,733
13,642
28,114
34,122
41,285
4,393 4,518 4,636
6,358 6,583
7,104
8,207
10,456
13,409
15,687
19,729
66.9%
60.2% 61.3%
78.2%
74.2% 73.8%
69.9%76.6%
47.7% 46.0%47.8%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Total Deposits Total Gross Loans Loan to Deposit Ratio
41
Our Bank Stand Alone Financial Snap Shot
43.3%
56.7%
Deposit Book Breakdown Full Year 2019
Retail Deposits Book Corporate Deposits Book
42
Our Bank Stand Alone Financial Snap Shot
Loan Book Break Down Full Year 2019
50.2%49.8%
Retail Loan Book Corporate Loan Book
Our Bank Standalone Financials
41,285
19,729
47.8%
Loan to Deposit Ratio Full Year 2019
Total Deposits Total Gross Loans
44
Our Bank Stand Alone Financial Snap Shot
NPL’sEGP million
61896989 7100
6362 65887100
8211
9590
12,643
15,687
19,729
239 245 278 433 391 385 445 372 736 872 1,706
3.86%3.51%
3.92%
6.81%
5.94%
5.42% 5.42%
3.88%
5.82%5.56%
8.65%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
0
5000
10000
15000
20000
25000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Total Loans Non-Performing Loans Non-Performing to Total Loans
45
Net Interest Margin
Our Bank Stand Alone Financial Snap Shot
1.1%1.4% 1.4%
2.1%
3.4%3.6%
4.8%
4.3% 4.3%
5.6%
4.9%
6.9%
4.9%
4.40%4.20%
7.80%8.2%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
NIM
NIM
46
Our Bank Stand Alone Financial Snap Shot
Net Interest income & Net Operating Margin EGP million
300 349 392
584465 501
1,028
1,690
2,544
3,148
2,942
44%
49%52%
65%
54%51%
44%
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0
500
1000
1500
2000
2500
3000
3500
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
NII NOM
47
Our Bank Net Profit Breakdown
Full Year 2019
Item Commercial Banking Activity Real Estate Activity Total
Total Revenue 7,742,718 566,804 8,309,522
Total Expenses (5,480,299) (281,577) (5,761,876)
Net Profit BeforeTaxes 2,262,419 285,227 2,547,646
Taxes (532,381) (64,176) (596,557)
Net Profit After Taxes 1,730,038 221,051 1,951,089
Contribution % 88.67% 11.33% 100%
Amounts in EGP Million Total Net Profit 1,951,089
48
Our Bank Participation in the CBE
Mortgage Finance Initiative
• The Central Bank of Egypt (CBE) Launched this initiative in May 2014
• The Total initiative amounts to EGP 20 Billion
• This initiative started by that Mortgage Finance is given to low income clients
and Medium income clients
• A new amendment took place mid 2016 including below low income clients
and above middle income clients
• Our Bank requested to participate in this initiative with EGP 2 Billion
• Actual dispensed amounts till Full Year 2019 are EGP 5,462,204,937
Million to 59,818 thousands clients by our bank
• The spread that our bank receives is from 3.5% to 4.5% on actual amounts
dispensed
•The below low income clients ceiling is EGP 150 Thousands for a unit with 5% interest
•The low income clients ceiling is EGP 350 Thousands for a unit with 7% interest
•The Medium income clients ceiling is EGP 500 Thousands for a unit with 8% interest
•The above middle income clients ceiling is EGP 950 Thousands for a unit with 10.5% interest
CBE Mortgage Finance Initiative
49
Number of Units in Thousands
0
4,109 4,8612,528
848
12,346
2,341
6,670
11,303 11,7189,458
4,632
46,252
143 308 230 153 278 161,128
28 35 146 13 2222,484
6,978
15,670 16,767
12,410
5,509
59,818
0
10000
20000
30000
40000
50000
60000
70000
Total 2014 Total 2015 Total 2016 Total 2017 Total 2018 Total 2019 Grand Total
Low Income New 5% Low Income 7% Middle Income 8% Above Middle Income 10.5% Total
CBE Mortgage Finance Initiative
50
Value EGP Million
0
288,403,026413,027,307
214,645,30872,693,693
988,769,334
131,656,818
495,863,370
919,678,1891,136,504,616
923,039,474
467,436,308
4,074,178,776
30,482,500 74,038,146 53,574,592 38,794,842 92,322,9994,700,588
293,913,667
10,015,810 13,880,783 74,750,567 6,696,000105,343,160162,139,318
569,901,516
1,271,671,617
1,602,207,548
1,304,758,348
551,526,589
5,462,204,937
0
1E+09
2E+09
3E+09
4E+09
5E+09
6E+09
Total 2014 Total 2015 Total 2016 Total 2017 Total 2018 Total 2019 Grand Total
Low Income New 5% Low Income 7% Middle Income 8% Above Middle Income 10.5% Total
Our Stock
51
Our Bank Fact Sheet
52
• Total Number of Issued Shares is 126,500,000 million with a book Value of
EGP 10
• Coupon number 38 with a value of EGP 5 per Share will be distributed on Wednesday 17th April 2019 to shareholders until withheld or record date of Sunday 14th April 2019. The distribution will happen through Misr for Central Clearing, Depository and Registry (M.C.D.R)
Incorporation: Egypt
Sector: Banking & Financial Services
Full Listing: The Egyptian Exchange (EGX)
Issued Shares: 126,500,000
Free Float: 40.50%
Listing Date: 13th September 1983
Market Cap: Almost EGP 6.9 Billion
52 Week High: 61.82
52 Week Low: 41.11
53
Stock Data:
Bloomberg / Reuters: HDBK EY / HDBK.CA
Our Stock Activity
21.6920.719.2
17.461715.6116.4317.2416.817.2
24.524.5127 28
33.332
38.5
43
52.652.6
56
49.6949.6948.1
50.9953.99
51.5
54.9757
54.752.2751.01
48.064744.644.4
47.64
53.952.61
48.1247 47.5
4748
44.0343
42.47
42.88
0
10
20
30
40
50
60
Jan
uar
y-1
6
Feb
ruar
y-1
6
Mar
ch-1
6
Ap
ril-
16
May
-16
Jun
e-1
6
July
-16
Au
gust
-16
Sep
tem
ber
-16
Oct
ob
er-
16
No
vem
ber
-16
Dec
em
ber
-16
Jan
uar
y-1
7
Feb
ruar
y-1
7
Mar
ch-1
7
Ap
ril-
17
May
-17
Jun
e-1
7
July
-17
Au
gust
-17
Sep
tem
ber
-17
Oct
ob
er-
17
No
vem
ber
-17
Dec
em
ber
-17
Jan
uar
y-1
8
Feb
ruar
y-1
8
Mar
ch-1
8
Ap
ril-
18
May
-18
Jun
e-1
8
July
-18
Au
gust
-18
Sep
tem
ber
-18
Oct
ob
er-
18
No
vem
ber
-18
Dec
em
ber
-18
Jan
uar
y-1
9
Feb
ruar
y-1
9
Mar
ch-1
9
Ap
ril-
19
May
-19
Jun
e-1
9
July
-19
Au
gust
-19
Sep
tem
ber
-19
Oct
ob
er-
19
No
vem
ber
-19
Dec
em
ber
-19
Dividend / Share
54
• HDB has been distributing cash dividend on annual bases.
• HDB Full Year 2019 suggested by Board & approved by GA a cash
• dividend of EGP 2.5 to generate a Yield of 6%
• HDB Pay Out Ratio for 2019 is 16%Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
29 30 31 32 33 34 35 36 37 38 39
Dividend /
Share 1.25 1 1.25 1.5 1 1.5 1.5 2 1.5 5 2.5
Payout Ratio Dividend / Share 5
Total Shares 126,500,000
Shareholders Dividend 316,250,000Dividend Yield 6%
Net Profit 1,951,089,343
Pay Out Ratio 16%
Distribution Date Wednesday 15th April 2020
With Holding Date Sunday 12th April 2020
Why HDB Stock?
55
• HDB performance shows that there is a room for loan growth
especially for corporates and under the CBE initiatives.
• HDB continued efficiency efforts bringing down cost to income
ratios to that of the peer group.
• HDB has the highest ROE and ROA amongst peers of similar size.
• HDB has the highest cash dividend on the Egyptian market with a
high upside based on peer valuations.
• HDB combination of real estate projects & commercial banking
activities has proven a solid element.
• HDB investments in subsidiaries & sister companies that
complement the business model.
Analyst Coverage
• HDBK is covered by the following coverage houses:
56
Entity Contact Person E-mail
EFG Hermes Elena Sanchez [email protected]
EFG Hermes Ahmed El Shazly [email protected]
CI Capital Monsef Morsy [email protected]
CI Capital Omar El-Menawy [email protected]
Beltone Abanob Magdy [email protected]
HC Nemat [email protected]
Prime Shihab Mohammed [email protected]
Arqaam Capital Jaap Meijer [email protected]
Arqaam Capital Ribal Hachem [email protected]
Naeem Capital Allen Sandeep [email protected]
Pharos Radwa El-Swaify [email protected]
Pharos Dalia El Bonna [email protected]
Rencap Nancy Fahmy [email protected]
Contact Us
57
Mohamed Hamzawy
Chief Investment Officer
Housing & Development Bank
Direct Telephone: +2-02-33349037
Fax: +2-02-37627053
Mobile: +2-010-25000551
H/Q 26 El Koroum Street – Mohandessian - Giza, Cairo –Egypt
www.hdb-egy.com E-mail: [email protected]