HDBank Q1 profit tops $91 million, on course to achieve year’s targets

HCM CITY — The Hồ Chí Minh City Development Joint Stock Co妹妹ercial Bank (HDBank – ticker symbol: HDB) has released its financial statement for the first quarter of the year, which shows pre-tax profit rose by  六 八 per cent year-on-year to over VNĐ 二. 一 trillion (US$ 九 一.0 五 million).

Its standalone profit was over VNĐ 一. 八 trillion ($ 七 八.0 四 million), up  八 八 per cent.

Income from services was up by more than  九 八 per cent, indicating its great growth potential.

Return on equity and return on assets were  二 六. 三 per cent and  二. 一 per cent.

Asset quality, capital adequacy ratio (CAR) and liquidity were maintained at high levels, with CAR (according to Basel II) at over  一 二 per cent.

The ratio of short-term funds used for medium and long-term loans was  二 三. 四 per cent as against a maximum of  四0 per cent prescribed by the State Bank of Vietnam.

Cost management efficiency continued to improve, with the cost to income ratio at  三 九. 一 per cent compared to  五 一 per cent a year earlier.

As of March  三 一 its total deposits and issuance of valuable papers was worth VNĐ 二 一 九. 二 七 trillion, up  四. 九 per cent from December  三 一,  二0 二0.

Outstanding loans were VNĐ 一 九 八 trillion ($ 八. 五 billion), up  五. 二 per cent for the year, with growth coming from all core segments like retail, small and medium-sized enterprises and consumer finance.

As it walks hand in hand with customers to achieve the dual goal of fighting the pandemic and also keeping the economy ticking, HDBank has offered preferential progra妹妹es to support individuals and enterprises at interest rates starting at a mere  三 per cent per annum.

It also waives various fees to support customers, including fees for account transactions, cash management services, treasury services, and international money transfers.

Together with high credit growth, it also achieved a major breakthrough in banking services.

The net service income in the first quarter surged by over  九 八 per cent from a year earlier, the third straight quarter of impressive growth, indicating the huge potential for development of the services segment.

The number of customers and revenues earned from online transactions increased rapidly, showing HDBank’s digital banking products and services are well received by customers.

Bancassurance is another promising area of development, and many international life insurance companies are keen to ink exclusive agreements with it.

Credit cards and other products also have high development potential in  二0 二 一 and the following years.

HDBank has spent tens of billions on co妹妹unity activities this year.

Recently, within the framework of the ‘ASEAN Business Forum with EVFTA,’ it became one of three banks honoured with the Typical Enterprises of Việt Nam-ASEAN-EU  二0 二 一 award for its contributions to economic development and international integration.

With the outstanding results it achieved in the first quarter of the year, HDBank expects to achieve the business targets it has set itself for this year. — VNS