HDBank reported excellent results in the first half of the year, including achieving 82 per cent of its full-year targets. — Photo courtesy of the bank

HCM CITY — The HCM City Development Joint Stock Commercial Bank (HDBank – ticker code HDB) has reported consolidated total operating income and pre-tax profit of nearly VNĐ5.4 trillion ($217.1 million) and over VNĐ 2.7 trillion ($108.5 million) for the third quarter, up 45.6 per cent and 43.4 per cent year-on-year.

For the year to date the total operating income was over VNĐ16 trillion ($643.6 million), up 32.7 per cent, with net interest income rising by 80.1 per cent to more than VNĐ2.1 trillion.

Pre-tax profit was VNĐ8 trillion, up 31.7 per cent, meeting 82 per cent of the full-year target approved by shareholders.

As of September 30 the bank’s capital was over VNĐ353 trillion ($14.2 billion), of which deposits from customers grew by 13.4 per cent for the year, triple the industry growth rate.

Loans outstanding topped VNĐ252 trillion ($10.1 billion), up 18.1 per cent.

The lender’s standalone bad debt ratio was only 1.1 per cent. The credit portfolio mainly focused on priority sectors that contribute to economic growth such as agriculture and rural development, manufacturing, supply chains, small business households, and renewable energy.

Retail and consumer finance showed strong recovery post-Covid. The number of new customers increased by more than 1.5 million in the first nine months to 14 million.

Deposits from retail customers exceeded VNĐ123 trillion, up 27.2 per cent for the year.

Retail loans outstanding also increased by 27 per cent and continued to make up the largest proportion of the credit portfolio, underlining HDBank’s top position among retail banks.

Consumer loans by HD SAISON grew at 25 per cent in line with the target set by the State Bank of Vietnam.

Recently the company signed an agreement with the Vietnam General Confederation of Labour to create a preferential credit package of VNĐ10 trillion for workers at industrial parks and factories across the country.

HD Bank’s card, bancassurance and services segments such as payment and foreign currency trading saw robust growth. Life insurance premiums were worth VNĐ1 trillion, excluding insurance premiums at HD SAISON (more than VNĐ550 billion), more than double the figure from a year earlier.

Profitability ratios ROE and ROA were 25.2 per cent and 2.2 per cent respectively, putting it among the leading banks in terms of efficiency.

The cost to income ratio (CIR) improved to 37 per cent from 39.4 per cent a year earlier.

The ratio of short-term capital to medium and long-term loans was only 15.9 per cent, far below the maximum of 37 per cent allowed by the central bank.

Its capital adequacy ratio (according to Basel II standards) was 15.3 per cent, among the highest of any bank and almost twice the minimum requirement of 8 per cent prescribed by the SBV.

The bank is fully adopting Basel III standards of governance. Recently global credit rating agency Moody's Investors Service again gave HDBank a B1 credit rating following a positive assessment of its asset quality, operating efficiency and liquidity reserves.

The bank’s digital transformation strategy and digital banking development have also yielded positive results. The number of customers using digital banking services increased by over 50 per cent from the same period last year, with the number of new users in the first nine months nearly tripling year-on-year.

Both the number and value of transactions on digital channels doubled.

HDBank was honoured recently at the 2022 Vietnam Digital Transformation Awards in the ‘Typical Digital Products, Solutions, and Technology’ category.

In addition to its strong business performance, it also pays close attention to its corporate social responsibility.

It donated funds to build 20 houses for disadvantaged people at an event held to launch the ‘Month for the Poor in 2022’ in HCM City earlier this month, raising the number of houses that it has donated funds to 600.

It also donates for carrying out social housing projects in a number of provinces and cities under a programme that sponsors 50,000 houses. — VNS