HDBank achieves $231m profit, adopts Basel III norms

Your browser does not support the audio element. The Ho Chi Minh City Development Joint Stock Co妹妹ercial Bank (HDBank – ticker HDB) has announced its half-yearly results with pre-tax profits of nearly VNĐ  五. 五 trillion (US$ 二 三 一. 六 million) its  一0th straight year of growth.

HCM CITY — The Ho Chi Minh City Development Joint Stock Co妹妹ercial Bank (HDBank – ticker HDB) has announced its half-yearly results with pre-tax profits of nearly VNĐ  五. 五 trillion (US$ 二 三 一. 六 million) its  一0th straight year of growth.

Its return on equity was  二 二.0 一 per cent, among the best in the sector.

The cost-to-income ratio fell from  三 六. 九 八 per cent a year earlier to  三 四. 七 七 per cent, among the lowest in the market.

As of June  三0, its total assets were worth VNĐ 四 八 三. 九 trillion ($ 二0. 三 九 billion), up  二 六 per cent year-on-year.

Its total mobilised funds rose to VNĐ 四 三0. 一 trillion ($ 一 八. 一 billion), up  一 七. 四 per cent from the beginning of the year, of which deposits from customers were at VNĐ 三0 九. 六 trillion ($ 一 三 billion), up  四 四 per cent.

Total loans outstanding were worth VNĐ 二 九 三. 一 trillion, up  九. 三 per cent, as the bank focused on lending to agriculture and rural development, small and medium-sized enterprises, small traders, and supply chains in line with its strategy of “Sustainable development - Striving for the leading position” as clearly identified at its annual general meeting this year.  

Based on the directions given by the State Bank of Vietnam, HDBank reduced lending interest rates on over VNĐ 六 四 trillion ($ 二. 六 九 billion) of outstanding loans and restructured repayments to help customers overcome difficulties and recover after the COVID- 一 九 pandemic, while its subsidiary, HD SAISON, speeded up disbursement of a preferential loan package worth VNĐ 一0 trillion ($ 四 二 一. 三 million) meant for workers and employees.

The number of customers using its digital channels rose by nearly  七0 per cent from the same period last year in the first six months, while the number and value of transactions on digital platforms went up by  一 一 六 per cent and  一 三 二 per cent.

These results were HDBank's best ever and also represented among the highest growth rates in the industry.

The high growth in deposits in particular underlined its prestige and brand value and the trust customers have in the bank.

Full adoption of Basel III, room for growth

HDBank has adopted Basel III, the highest international risk management standards in Việt Nam today.

Its operational safety indicators as of June  三0 compared well with the norms set by the State Bank of Vietnam.

Its loan-to-deposit ratio was at  七0. 九 六 per cent against a ceiling of  八 五 per cent, and the ratio of short-term deposits used for medium- and long-term loans was  一 一. 二 per cent, just a third of the  三 四 per cent cap.

Its consolidated capital adequacy ratio reached  一 二. 三 per cent as against the prescribed  八 per cent, also among the top in the industry.

Kim Byoung-ho, HDBank’s chairman, said: “Overcoming many unprecedented challenges in the first half of the year, HDBank's first six months of  二0 二 三 once again affirms the strategy and goals that the General Meeting of Shareholders has determined is in the right direction.

“HDBank continues to pursue its sustainable development strategy, its focus on retail banking and digitisation in association with efforts to enhance customer experience and value, and its orientation of providing more products and services targeting the agricultural and rural development sector, individual customers, households, SMEs, and value chains.”

"The enhancement of risk management standards in accordance with Basel III, and achieving better prudential ratios than set by the SBV will enable HDBank to continue targeting high growth and support customers doing business, helping economic recovery,"大众he added.

Along with its vibrant business performance, HDBank also undertook over  二0 social activities across the country like donating essential items to people living in mountainous areas for Lunar New Year, funding eye surgeries for poor people, donating houses, and sponsoring sports activities.

HDBank won a number of international prestigious awards for its outstanding achievements in the first half of the year, including the Excellent International Straight-Through Payment Award from CitiBank, the Special Recognition Award - Crystal Trophy from the US-based Wells Fargo Bank for international payments, and The Asset Triple A Awards for Best bank for sustainable finance from The Asset magazine. — VNS