HDBank eyes 29% profit growth, remains on track for sustainable development

Your browser does not support the audio element. The Hồ Chí Minh City Development Joint Stock Co妹妹ercial Bank (HDBank) targets a  二 九 per cent growth in profit before tax to VNĐ 一 三. 二 trillion (US$ 五 六 二. 八 million) this year and continues with its “high and sustainable growth” plan.

HCM CITY — The Hồ Chí Minh City Development Joint Stock Co妹妹ercial Bank (HDBank) targets a  二 九 per cent growth in profit before tax to VNĐ 一 三. 二 trillion (US$ 五 六 二. 八 million) this year and continues with its “high and sustainable growth” plan.

It also targets a  二 五 per cent increase in assets to VNĐ 五 二0 trillion (US$ 二 二. 二 billion) and  二 五 per cent and  二 四 per cent growth in deposits and loans outstanding to VNĐ 四 六0 trillion ($ 一 九. 六 billion) and VNĐ 三 三 三. 五 trillion ($ 一 四. 二 billion) (in line with the credit growth target prescribed by the State Bank of Việt Nam).

Its return on equity and return on assets are expected to rise to  二 四. 五 per cent and  二. 三 per cent.

Its NPL ratio will stay below  二 per cent.

These targets and a number of other plans and proposals, including profit distribution plans, were approved at its annual general meeting held in HCM City on April  二 六.

Phạm Quốc Thanh, its CEO, said HDBank always focuses on risk management, constantly strengthening its systems and processes and using technology to monitor, forecast and promptly identify risks.

Despite the market volatility last year, all of HDBank’s activities went smoothly, with its safety performance indicators meeting State Bank of Việt Nam norms.

Its standalone NPL ratio was only  一. 三 per cent and the consolidated rate was  一. 六 七 per cent, low compared to industry averages.

The return on equity and return on assets were  二 三. 五 per cent and  二. 一 per cent, both higher than last year and among the highest in the sector.

Its capital adequacy ratio, stipulated for lenders under the Basel II agreements, was  一 三. 四 per cent, among the highest in the industry.

Its ratio of outstanding loans to deposits was  七 六. 六 per cent, lower than the maximum ratio of  八 五 per cent prescribed by the SBV.

Its profit before tax was an all-time high VNĐ 一0. 二 七 trillion,  二 四 times up from  一0 years earlier.

Its total assets exceeded VNĐ 四 一 六 trillion ($ 一 七. 七 billion),  七. 八 times up from  二0 一 二.

Shareholders approved dividends of  二 五 per cent in cash and shares for  二0 二 二.

This year HDBank continues to pursue its sustainable development orientation and strategy to become a leader in retail, small and-sized medium enterprises and consumer banking, creating sustainable assets for itself and for society, Thanh said.

It will roll out more products and services targeting industries and sectors that are key contributors to economic growth such as agriculture and rural development, green financing, manufacturing and trading, renewable energy, waste treatment and recycling in addition to focusing on retaining its leading position in supply chain financing.

The bank will continue to offer preferential loans to those affected by the pandemic and workers and for digititisation of business and operations.

It will be a pioneer in applying Basel III standards in corporate governance and adopt internal risk management regulations and others to further improve its operations.

This year will continue to be a challenging one, but with its growing reputation, solid financial potential, modern technology, and the right development strategy for each stage, HDBank is confident of achieving the targets approved by shareholders, Nguyễn Thị Phương Thảo, HDBank’s deputy chairwoman, said. — VNS