HDBank achieves high and sustainble growth amid COVID-19

HDBank fared well in the first half of the year with high and sustainable growth, despite disruptions caused by the Covid-19 crisis.

HDBank achieves high and sustainble growth amid COVID-19
HDBank remained on a straight course despite the COVID-19 crisis

HDBank announced pre-tax profit of VND2.9 trillion ($126 million) in the first six months of 2020. The bank also posted the lowest bad debt ratio in the domestic banking system with 1.1 per cent.

HDBank mobilised more than VND213.93 trillion ($9.3 billion), including VND178.52 trillion ($7.76 billion) from business organisations and individuals, up 18.2 per cent against 2019. Its outstanding loans amounted to VND168.77 trilion ($7.34 billion), a 10.3 per cent increase.

Meanwhile, its consolidated revenue reached over VND6.35 trillion ($276 million), up 22.7 per cent, and net profit was nearly VND5.7 trillion ($247.83 million), surging 30.1 per cent. The bank achieved positive results in both financial service provision and investment in securities.

In addition, its operation expenditures were managed effectively to stand at VND2.7 trillion ($117.4 million). As a result, its cost-to-income ratio fell from 47 per cent in the first six months of 2019 to 43.1 per cent in 2020.

HDBank also raised risk provisions to VND700 billion ($30.43 million), up VND168 billion ($7.3 million), to cover debts sold to Vietnam Asset Management Company (VAMC) and reduce possible credit risks.

HDBank generated VND2.9 trillion ($126 million) in pre-tax profit, up 31.5 per cent on-year, fulfilling 51.4 per cent of the full-year target. Its return on equity and return on assets were 21.6 and 1.97 per cent, respectively, increasing drastically compared to the first half of the year prior.

The asset quality of HDBank was among the best in the banking sector, with all VAMC bonds settled earlier than expected. Moreover, the bank has enhanced its financial health with the capital adequacy ratio rising from 10.6 to 11.5 per cent pursuant to Basel II.

The proportion of short-term capital used for medium- and long-term loans was 21 per cent, putting HDBank among the banks with the highest liquidity.

HDBank also opened eight new branches and transaction offices in the period, bringing the total to 294. Meanwhile, HD Saison Finance, a joint venture between HDBank and Japanese finance corporation Credit Saison, increased the number of transaction points to more than 18,000, affirming its leading position in the market.

In the tough time of the COVID-19 crisis, HDBank’s high and sustainable growth speaks of solid foundations and flexibility in coping with challenges.

The bank has executed several risk management programmes, launched preferential credit packages, and offered fee reductions and exemptions to help customers find their footing amidst the COVID-19 crisis. It has disbursed VND24 trillion ($1 billion) supporting small- and medium-sized enterprises and VND10 trillion ($434.8 million) helping micro-enterprises, business households, and individuals expand production and business, invest in high-tech agriculture, clean agriculture, and renewable energy.

Besides credit products, the bank has introduced many services applying modern technology to improve its mobile banking and internet banking services and digitalise its internal and transaction processes to develop itself into a digital bank.

HDBank has pioneer opening accounts for enterprises with digital signatures and was the first bank in Vietnam to participate in the TradeAssets trade finance e-marketplace to connect and process trade finance transactions on a blockchain application platform. The bank has also deployed a Swift GPI Global payment query service to allow its customers to quickly and accurately check the status of international money transfers.

In addition, the bank has accompanied the community in the fight against COVID-19 and salinity intrusion, contributing to ensuring social welfare. HDBank was also voted one of the Best Companies to Work for in Asia for three consecutive years.

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