An HDBank transaction office. HDBank achieved better-than-expected results and reached 82 per cent of its full-year targets in the first nine months of the year. — Photo courtesy of the bank

HCM CITY — The Hồ Chí Minh City Development Joint Stock Commercial Bank (HDBank) achieved better-than-expected results and reached 82 per cent of its full-year targets in the first nine months of the year, its financial statement for Q3 shows.

As of September 30 its total assets were worth VNĐ346.35 trillion (US$15.19 billion), 26.7 per cent up from the same period last year.

Loans outstanding increased by 16.1 per cent year-on-year. The standalone and consolidated NPL ratios were below 1 per cent and at 1.4 per cent respectively, lower than at the same time last year.

Loans outstanding to sectors with a high level of risk and restructured debts were well controlled.

Capital adequacy and liquidity were maintained at high levels.

Owners’ equity was 22.5 per cent higher at VNĐ29.27 trillion ($1.28 billion), enabling its capital adequacy ratio (according to Basel II standards) to increase sharply to 13.5 per cent compared to 10.9 per cent on September 30 last year.

Its other liquidity ratios are better than those prescribed by the State Bank of Việt Nam.

Its operating income in the first three quarters topped VNĐ12.1 trillion ($530.51 million), a 23.6 per cent rise.

Its services business achieved positive results in diversifying the sources of revenues. Net income from services in the first nine months increased by 88.6 per cent as against 16.7 per cent in the case of net interest income.

Notably, the parent bank’s net income from services more than tripled.

The bancassurance business was a positive contributor to its net income from services, and made it one of the banks in the market with the highest insurance sales.

Operating costs continued to be optimised with the cost to income ratio reducing to 39 per cent from 43.8 per cent.

Credit costs remained the lowest in the market thanks to asset quality.

Return on equity was 24 per cent compared to 21.1 per cent in September 2020.

In implementing its development strategy for until 2025, HDBank is actively pursuing comprehensive digital transformation, including eKYC and online account opening (eAccount), granting credit online 24/7 (eCredit), issuing  L/Cs online (eLC), making online cross border payments (eTT), and automating procedures, all of which have been received well by customers.

Along with developing digital-based products, HDBank has also earmarked a VNĐ5 trillion credit package to provide online and another VNĐ10 trillion package exclusively for SMEs to supplement their working capital.

It also has many other credit packages with low interest rates for retail customers and micro enterprises.

The bank has so far set aside more than VNĐ42 trillion to help individual and corporate customers revive and expand production and trading post-pandemic.

With its high and sustainable business growth, HDBank was recently named among top five prestigious banks in Việt Nam by Vietnam Report.

In August it won the awards for Best Bank and the Best Digital Transformation Bank in Việt Nam in 2021 at the Global Brand Awards. — VNS