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Research firm maintains ‘Overweight’ on HDB

Research firm maintains ‘Overweight’ on HDB
HDB’s stock price is “penalised by the mix between commercial banking and real estate operations”
Housing & Development Bank
HDBK
-0.44% 47.94 -0.21

Cairo – Mubasher: Pharos Research has reiterated their ‘Overweight’ recommendation for Housing and Development Bank (HDB) based on fair value (FV) of EGP 70.48 per share.

The research firm said that HDB’s stock price is “penalised by the mix between commercial banking and real estate operations”, according to a recent report.

Earlier this day, the Cairo-based lender reported a 49.8% year-on-year hike in consolidated profits for the full-year ended 31 December 2018.

The bank logged EGP 1.96 billion in profits last year, compared to EGP 1.31 billion in 2017, according to a statement to the Egyptian Exchange (EGX).

In the same vein, the bank’s board proposed a cash dividend distribution of EGP 5 per share for 2018.

HDB previously posted a 51% year-on-year surge in standalone profits for 2018, recording a net profit of EGP 1.6 billion, versus EGP 1.07 billion in 2017.

It is worth noting that HDB’s consolidated profits for the first nine of 2018 amounted to EGP 1.58 billion, versus EGP 1.02 million in the corresponding period of 2017.