Kim Byoungho, chairman of HDBank’s board of directors, speaks at the 2024 Annual General Meeting on Friday. Photo courtesy of HDBank

HCM CITY — The Hồ Chí Minh City Development Joint Stock Commercial Bank (HDBank, stock code: HDB) has announced an ambitious pre-tax profit target of VNĐ15.85 trillion (US$634.13 million) for 2024, a 21.8 per cent increase from the previous year, at its annual general meeting on Friday.

HDBank has consistently delivered for its shareholders, and this year is no exception as it plans to pay a dividend of 30 per cent, with a maximum of 15 per cent in cash and the rest in stocks.

One of the key factors underpinning the growth is the lender's focus on maintaining profitability ratios such as ROA and ROE. 

The bank’s commitment to profitability and efficiency has been a key driver of its success and will continue to fuel its growth in 2024.

In 2024 the bank remains on track for high growth while continuing promoting its comprehensive environmental, social and governance (ESG) strategy. 

In terms of financial performance, HDBank is projecting total assets to exceed VNĐ700 trillion this year, up 16 per cent from 2023.

Total deposits are expected to reach VNĐ624 trillion, up 16 per cent over last year. 

Loans outstanding are projected to exceed VNĐ438 trillion in line with the credit growth quota allocated by the central bank.

HDBank’s focus on operational safety is another key factor in its success. 

It has managed to ensure a low bad debts ratio of 1.5 per cent and achieve a capital adequacy ratio (CAR) of 12.6 per cent, among the highest in the industry. 

This year the bank plans to increase its charter capital 5 per cent to VNĐ29.1 trillion ($1.16 billion) by issuing shares. 

It has consistently paid high dividends for over a decade as it achieved rapid and steady growth. 

 The AGM also agreed to increase the dividend payment rate for 2023 to 30 per cent from 25 per cent with a maximum of 15 per cent in cash, based on the business results it achieved in 2023. 

The private lender, which has gone through a 10-year journey of reform, continued its high and steady growth last year. 

Profit before tax topped VNĐ13 trillion last year, up 26.8 per cent from 2022. 

It achieved an ROA of 2 per cent and an ROE of 24.2 per cent, placing it among the top banks in the industry. 

In addition, HDBank remains committed to sustainable development, comprehensive digital transformation and green growth. 

It has steadily improved its management capacity and embraced advanced international management standards such as Basel III. 

Phạm Quốc Thanh (second from right), general director of HDBank, speaks at the 2024 Annual General Meeting on Friday. Photo courtesy of HDBank

Phạm Quốc Thanh, its general director, said HDBank continued to achieve significant pre-tax profits, which topped VNĐ4 trillion in the first quarter of 2024, a 43.6 per cent jump year-on-year.

Its ROE was 26.2 per cent, credit growth was 6.2 per cent and bad debts were controlled at 1.68 per cent. 

Its CAR based on Basel II standards exceeded 13.7 per cent .

Kim Byoungho, chairman of the bank’s board of directors, said: “HDBank’s ambitious growth targets for 2024 reflect its strong performance and strategic vision.

“Its commitment to profitability, sustainability and shareholder value creation sets it apart as a leading financial institution in Việt Nam.

“With a focus on customer service, management capacity and adaptability, HDBank is well-positioned to achieve its goals of high growth this year and the years to come.” — VNS 

Customers conduct transactions at an HDBank branch in HCM City. Photo courtesy of HDBank