|HDBank, Phú Mỹ PetroVietnam Fertiliser and Chemicals Corporation (DPM), and Đức Giang Chemical Group (DGC) are among the 10 most prestigious and effective listed companies in 2023. Photo courtesy of HDBank|
HCM CITY — The Hồ Chí Minh City Development Bank (HDBank) has been honoured for the first time as one of the 10 most prestigious and effective listed companies in 2023, according to the Vietnam Report.
The Vietnam Report’s Top 50 prestigious and effective listed companies of 2023, or VIX50 list, has seen a spectacular performance by the banking industry with the presence of six banks (including HDBank for the first time).
The other five, in descending order, are the Joint Stock Commercial Bank for Foreign Trade of Việt Nam (Vietcombank), Technological and Commercial Joint Stock Bank (Techcombank); Military Commercial Joint Stock Bank (Military Bank); Vietnam International Commercial Joint Stock Bank (VIB); and Asia Commercial Joint Stock Bank (ACB).
Most of these banks performed well through the tumultuous years of COVID-19 and were honoured.
Experts noted this remarkable effort in the context that the stock market was going through strong volatility last year due to geopolitical crises, an uncertain economy, tight monetary policies, high interest rates, inflationary pressure, and a decrease in investor confidence after a number of incidences of corruption and stock market manipulation.
Also included in the Top 10 list this year are Phú Mỹ PetroVietnam Fertiliser and Chemicals Corporation (DPM), FPT Joint Stock Company (FPT), Vinhomes Joint Stock Company (VHM) and Đức Giang Chemical Group (DGC).
Business results such as return of equity (ROE), return on assets (ROA) and return on sales (ROS), earnings per share (EPS), along with information disclosure and regulatory compliance, dividend policy, and corporate liquidity and valuation are among the factors that most affect the reputation and efficiency of the listed enterprises this year.
Dividend policy has risen from the eighth position last year to the sixth most influential factor in 2023, which is a factor associated with corporate governance.
Consistency and growth in dividend payouts help investors assess the financial performance and stability of a business over time.
Factors related to communication are also recognised to have a strong impact on the prestige and effectiveness of the business.
HDBank has maintained a high and regular level of dividend payments to its shareholders, who recently approved a dividend of 10 per cent in cash and 15 per cent in shares for 2022.
HDBank’s assets exceeded VNĐ416 trillion (US$18 billion) as of the end of last year.
Its profit before tax last year exceeded VNĐ10 trillion ($427 million) for the first time when its return on equity (ROE) and return on assets (ROA) were 23.5 per cent and 2.08 per cent, respectively, both higher than last year and among the highest in the sector.
HDBank maintains a non-performing loan ratio of 1.67 per cent, much lower than the industry average.
The HDBank stock (HDB) remains appealing to investors despite the stock market volatility with its earnings per share increasing to VNĐ3,081 this year from VNĐ2,403 last year.
HDBank has strictly complied with regulations on corporate governance and information disclosure, ensuring transparency throughout its operation process.
It regularly organises conferences with shareholders and investors to enhance interaction and the transparency of operational information.
The Vietnam Report also found that banking has been a leading industry with the best growth stocks. — VNS