HDBank eyes high growth targets, elects board for new strategic era
HDBank eyes high growth targets, elects board for new strategic era
The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) targets a 21 per cent increase in profit before tax to VND10 trillion (US$434.21 million) this year, and a standalone non-performing loan ratio of less than 1.5 per cent.
It also targets an increase of 18 per cent in total assets to VND440.44 trillion ($19.12 billion) and of 17 per cent and 20 per cent in deposits and loans outstanding to VND392.68 trillion ($17.05 billion) and VND256.06 trillion ($11.13 billion).
Profitability ratios like return on assets and return on equity will continue to be high at 1.9 per cent and 22.2 per cent.
These targets and some important statements and proposals were approved at the lender’s annual general meeting on April 26, including profit distribution plans and payment of dividends in shares at a rate of 25 per cent for 2021.
According to a report by its board of directors, HDBank proactively and flexibly adapted to challenges last year to ensure high business growth and safe operations.
In the first year of implementing its development strategy for 2021-2025, HDBank met all business targets and exceeded the plans approved by shareholders.
The total consolidated assets topped VND374 trillion, a 17 per cent increase from 2020.
Profit before tax was at VND8.07 trillion, up 39 per cent and equivalent to 111 per cent of the target.
Total operating income exceeded VND16.76 trillion, an increase of 22 per cent.
Earnings from services increased by 103 per cent. HDBank's bancassurance sales rose sharply to find it a place among the banks with the highest revenues.
Return on equity and return on assets were 23.3 per cent and 1.9 per cent, surpassing the targets set for the year.
Capital adequacy and liquidity were plentiful. Equity capital increased by 25 per cent to VND30.79 trillion, taking the capital adequacy ratio (according to Basel II standards) to over 14.3 per cent.
Its standalone bad debt ratio was only 1.26 per cent, the lowest rate in the industry.
It increased the provision to 100 per cent for restructured loans in the case of borrowers affected by the COVID-19 pandemic as required by the State Bank of Vietnam, but two years ahead of schedule.
During the pandemic, credit rating agency Moody's raised HDBank's B1 credit outlook from stable to positive.
HDBank is a pioneer in comprehensive digital transformation and a leading bank in green credit with programmes to support the development of high-tech agriculture, renewable energy and environment-friendly production activities.
Last year large and reputed global financial institutions such as IFC, DEG, an investment arm of German state-owned development bank KFW, and Leapfrog Investments invested in its convertible bonds, signed agreements to undertake programmes to combat climate change and finance projects that meet ESG standards.
They will work with HDBank to implement a number of joint programmes for improving governance capacity, technology and digital banking, expanding international cooperation, and others.
In addition to its business activities, HDBank has also paid great attention to social responsibility activities, contributing to the national vaccine fund and supporting people affected by the pandemic and disadvantaged ones.
The AGM also voted for the board of directors for the 2022-2027 term with new members who are experienced executives from prestigious global financial institutions, including two independent members.
Based on the success of its the 2017-2022 strategy, HDBank has adopted the next five-year development strategy in consultation with an international consulting company.
The new board of directors with the participation of leaders from major international banks promise to take HDBank into a new growth phase in line with its strategy.
