Cairo – Mubasher: Pharos Research downgraded its recommendation on the Housing and Development Bank (HDB) from "Overweight" to "Equalweight", and maintained its fair value (FV) at EGP 33.20.
The research firm expected the bank to witness a compound annual growth rate (CAGR) of 24% in lending growth between 2016 and 2021, and a 22% CAGR in deposits.
Margins are forecast to decline from above 5.5% in 2016 to 4.5% in 2021, according to the report.
The HDB posted last week a standalone net profit of EGP 100 million for fiscal year 2016, versus EGP 91 million for FY15.
