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Tuesday, 8 March 2022

Housing and Development Bank, Palm Hills report rise in net income

Housing and Development Bank’s (HDB) net income rose 5% in 4Q 2021 to EGP 396 mn, according to the bank’s latest earnings release (pdf). The bank reported net interest income of EGP 818 mn during the quarter, down almost 1% from 4Q 2020.

In 2021: HDB reported EGP 1.8 bn in net income through the year up almost 2% from 2020. This was supported by 17% growth in net interest income, which rose to EGP 3.6 bn on the back of increased gross loans and central bank deposits.

What they said: “With 2021 behind us, HDB can look back on several important achievements. The bank has successfully weathered the uncertainties of recent years and has made remarkable progress in its transition from an institution focused on real estate development and the financing of large projects to a full-fledged commercial bank that is increasingly aligned with the cutting edge of the Egyptian and global markets,” said Chairman Hassan Ghanem.

Palm Hills Developments (PHD) recorded a 16% growth in its bottom line in 2021, driven by a strong increase in new sales, the real estate developer said in its 4Q earnings release (pdf) yesterday. The company reported net income of EGP 824 mn during the year, supported by a 48% increase in revenues which reached EGP 7.7 bn.

In detail: Revenues from new sales grew 35% in 2021 to EGP 17.3 bn, the bulk of which came from the company’s residential developments which brought in EGP 15.3 bn. Growth was strongest in PHD’s North Coast projects, which saw sales increase 70% to EGP 7.1 bn. Developments in West Cairo recorded EGP 7.3 bn in revenues, up 10% from 2020, while East Cairo sales rose 49% to EGP 2.9 bn.

Looking ahead: PHD expects new sales to increase 16% to EGP 20 bn in 2022. The company said it will increase delivered units to more than 2k this year, up from 1.3k in 2021, and it expects to spend EGP 3.4 bn on construction and development.

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