Moody’s upgrades HDBank’s outlook to “Positive,” paving the way for a rating upgrade

Moody’s upgrades HDBank’s outlook to “Positive,” paving the way for a rating upgrade

Global credit rating agency Moody’s Ratings has affirmed Ho Chi Minh City Development Joint Stock Commercial Bank’s local- and foreign-currency long-term deposit and issuer ratings at B1, while upgrading its outlook from “Stable” to “Positive.”

A transaction office of HDBank in HCM City. Moody’s Ratings has affirmed the bank’s B1 deposit ratings and upgraded its outlook from stable to positive. — Photo courtesy of the bank

Global credit rating agency Moody’s Ratings has announced the results of its periodic review of Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank; HOSE: HDB), affirming the bank’s local- and foreign-currency long-term deposit and issuer ratings at B1, while upgrading its outlook from “Stable” to “Positive.”

This revision reflects HDBank’s solid financial foundation and resilient operating capacity.

According to Moody’s, the change in HDBank's rating outlook is driven by expectations that the bank's planned capital increase and strong profitability will strengthen its overall loss absorbing buffers against potential risks stemming from high loan growth.

At its 2026 Annual General Meeting of Shareholders held last month, HDBank approved a plan to raise its equity from VNĐ78.3 trillion (US$3 billion) at the end of 2025 to VNĐ110.1 trillion ($4.2 billion), an increase of 41 per cent.

Moody’s noted that an upgrade to the bank’s ratings and Baseline Credit Assessment could follow if HDBank successfully executes its capital-raising plan. This would be a positive signal of international recognition for the bank’s sustainable growth strategy and strong risk management capabilities.

The improved outlook is expected to enhance HDBank’s standing in international financial markets, creating favourable conditions for expanding partnerships, accessing capital, and strengthening its competitive position in the next phase of development.

Previously, in May 2025, Moody’s Ratings upgraded HDBank’s credit rating to the top tier among Vietnamese commercial banks.

In the first quarter of 2026, HDBank maintained strong growth momentum, reporting pre-tax profit of VNĐ6.1 trillion ($231.6 million), up 14 per cent year-on-year. Return on equity remained high at 24.29 per cent, among the top in the industry. The capital adequacy ratio under Basel II reached 16.16 per cent, up markedly from 14.32 per cent a year earlier and among the highest in the market.

As of March 31, 2026, HDBank’s total assets stood at VNĐ984.2 trillion ($37.4 billion), up 5.7 per cent from the end of the previous year. Total outstanding loans rose 8 per cent to VNĐ635.1 trillion ($24.1 billion), while total mobilised funds exceeded VNĐ880 trillion ($33.4 billion), up 5.9 per cent, with customer deposits surpassing VNĐ725 trillion ($27.5 billion), an increase of 11.9 per cent.

The loan-to-deposit ratio maintained below 75 per cent, while key liquidity indicators, including the liquidity coverage ratio and net stable funding ratio, stayed above 100 per cent, exceeding Basel III requirements. 

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