HDBank achieves $231m profit, adopts Basel III norms
HDBank achieves $231m profit, adopts Basel III norms
The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank – ticker HDB) has announced its half-yearly results with pre-tax profits of nearly VNĐ 5.5 trillion (US$231.6 million) its 10th straight year of growth.
HDBank’s pre-tax profits reached nearly VNĐ 5.5 trillion (US$231.6 million) in the first half of the year, marking its 10th straight year of growth.— Photo courtesy of the bank |
Its return on equity was 22.01 per cent, among the best in the sector.
The cost-to-income ratio fell from 36.98 per cent a year earlier to 34.77 per cent, among the lowest in the market.
As of June 30, its total assets were worth VNĐ483.9 trillion ($20.39 billion), up 26 per cent year-on-year.
Its total mobilised funds rose to VNĐ430.1 trillion ($18.1 billion), up 17.4 per cent from the beginning of the year, of which deposits from customers were at VNĐ309.6 trillion ($13 billion), up 44 per cent.
Total loans outstanding were worth VNĐ293.1 trillion, up 9.3 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 VNĐ64 trillion ($2.69 billion) of outstanding loans and restructured repayments to help customers overcome difficulties and recover after the COVID-19 pandemic, while its subsidiary, HD SAISON, speeded up disbursement of a preferential loan package worth VNĐ10 trillion ($421.3 million) meant for workers and employees.
The number of customers using its digital channels rose by nearly 70 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 116 per cent and 132 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 30 compared well with the norms set by the State Bank of Vietnam.
Its loan-to-deposit ratio was at 70.96 per cent against a ceiling of 85 per cent, and the ratio of short-term deposits used for medium- and long-term loans was 11.2 per cent, just a third of the 34 per cent cap.
Its consolidated capital adequacy ratio reached 12.3 per cent as against the prescribed 8 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 2023 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," he added.
Along with its vibrant business performance, HDBank also undertook over 20 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.
