HDB pumps EGP 3.7 bln in CBE Mortgage initiative

The Housing and Development Bank has pumped 3.7 billon Egyptian pounds in the Central Bank of Egypt’s Mortgage finance initiative for low income citizens, Fathy El Sebai, the Chairman said.

The number of clients who have been granted these finances since its launch has reached 47,773 clients, with loans valued at 3.7 billion pounds so far.

As part of the state plan to provide suitable and affordable housing units for youth and limited income people, the bank has financed approximately 35% of the banking sector’s clients who have been granted mortgage financing as part of the CBE’s initiative.

In 2014, CBE launched an initiative worth EGP 10 billion (US$1.4 billion) to stimulate the mortgage sector, and to finance home purchasing for low and average income families. During the year, the National Bank of Egypt, Banque Du Caire, Banque Misr and Housing Development signed agreements with the MFF – worth EGP 8.5 billion- to finance mortgages at an interest rate of 7 to 8 percent.

El Sebai told Amwal Al Ghad that the bank plans to expand in funding the low income citizens along with the small and medium enterprises.

According to the bank’s general planning budget for 2018, it aim to increase the HDB’s deposits by EGP 8.819bn, or 40%, by the end of this year, to reach EGP 31.031bn. We also aim to increase our loans portfolio by EGP 3.711bn, or 28.2%, to reach EGP 16.874bn.

The bank’s financial results showed that the net profit has increased by 13.3 percent during the first quarter  compared to the same period last year