HDBank to pay dividend at a rate of 65%, focus on digital transformation

HÀ NỘI — The HCM City Development Joint Stock Co妹妹ercial Bank (HOSE: HDB) plans to pay a dividend of  六 五 per cent for  二0 一 九,  五0 per cent in stocks and  一 五 per cent in bonus shares.

The lender announced this at its annual general meeting in HCM City on Saturday.

The charter capital of HDBank, as it is known, will increase from the current VNĐ 九. 八 trillion to nearly VNĐ 一 六 trillion after the dividend payment.

The bank aims to increase its charter capital to meet the State Bank of Việt Nam’s requirements to improve its financial capacity to develop its client network, expand market share and business scale, diversify banking services, and improve risk management capability.

The bank also aims to supplement its medium- and long-term capital, enhance its infrastructure, and build a headquarter with a modern information technology system.

This year HDBank expects its total assets to increase by  三 三 per cent to VNĐ 三0 五 trillion, deposits to VNĐ 二 七 五 trillion, up  三 五 per cent, and loans outstanding to VNĐ 一 七 八 trillion.

It targets an increase of  一 三 per cent in pre-tax profit.

Return on assets and return on equity will remain at high levels of  一. 六 九 per cent and  二0.0 二 per cent.

To achieve the targets, this year, besides credit growth and expansion of its network, HDBank will also focus on increasing income from services and cross-selling products and offering new products and services to customers.

According to Lê Thị Băng Tâm, its chairwoman,  二0 二0 is a key year in the bank’s five-year ( 二0 一 七- 二0 二 一) development plan.

“HDBank identified  二0 二0 as the year to accelerate digital transformation, enhance technology application on the big data platform and digitise processes, distribution channels, products and services, and its entire activity.

“This is a decisive innovation step in the context that the world is struggling to contain the COVID- 一 九 pandemic, restore business activities and normalise social life.”

At the meeting the board of directors also submitted a plan to issue up to US$ 一 billion worth of bonds in the international market in tranches.

The bond will have a minimum term of three years and a maximum of  一0 and be issued to investors outside the US and listed on the Singapore Stock Exchange.

The bank also plans to issue $ 五00 million worth of convertible bonds in the international or Vietnamese market with a term of five years in  二0 二0 or  二0 二 一.

With its current scale, it is imperative for HDBank to participate in the international bond market, Nguyễn Thị Phương Thảo, the bank’s vice chairwoman, said.

“Currently, due to the influence of the COVID- 一 九 pandemic, the governments of many countries have injected a lot of money into the international market at astonishingly low interest rates, even 0 per cent. So we believe that this is an opportunity to mobilise capital for the bank's recovery plans and investment projects.”

Thảo also revealed plans to convert HDBank’s consumer finance arm HDSAISON from a limited company to a joint stock company and launch an initial public offering.

At the meeting, the board of directors announced the dismissal of supervisory board member Nguyễn Thị Phụng, and her replacement by Đường Thị Thu.

It was also announced that the supervisory board for the  二0 一 七- 二0 二 二 term would have a minimum of three members instead of the previous four.

In the first quarter of this year HDBank’s total consolidated operating income increased by  二 七. 八 per cent year-on-year to VNĐ 三. 一 五 trillion. Pre-tax profit rose by  一 三. 五 per cent to VNĐ 一. 二 五 trillion.

The non-performing loans ratio of the parent bank continued to be closely controlled, with its 0. 九 八 per cent rate placing it among the banks with the lowest ratios in the industry.

To mitigate COVID- 一 九 risks, HDBank has adopted measures to ensure safe operations. Besides, it has rolled out credit packages to support SMEs, businesses that produce and distribute essential products and others in supply and distribution chains to help them overcome the tough situation.

In April  二0 二0 Moody’s retained its B 一 credit rating for HDBank though it had said earlier many banks were likely to have their ratings lowered.

It underlined HDBank’s stable financial capacity, low risk and long-term development opportunities.

Also in the first quarter HDBank was honoured as the best domestic bank in Việt Nam by The Asset, Asia’s leading banking and finance magazine. — VNS