An HDBank branch in HCM City. HDBank’s profits before tax were worth VNĐ12.5 trillion ($499.6 million) for the first nine months of the year, an increase of 46.6 per cent from the same period last year. — Photo courtesy of HDBank

HCM CITY — The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank - HoSE: HDB) has announced its earnings report for the first nine months of the year, with profits before tax surging 46.6 per cent from the same period last year to VNĐ12.5 trillion (US$499.6 million), achieving 79.8 per cent of the full-year targets.

The bank's ROE stands at 26.7 per cent, and ROA at 2.2 per cent, positioning it as one of the industry's leaders.

This positive performance reaffirms HDBank's position among leading retail banks with a strong foundation, healthy financial status, consistent growth over years, and high profitability.

The bank plans to pay a 20 per cent dividend in shares.

The bank follows a sustainable development strategy and drives digital transformation towards high-quality retail customers and small and medium enterprises (SMEs), especially in second-tier urban and rural areas in promising value chains.

Profit before tax for the third quarter alone was VNĐ4.49 trillion ($177.6 million), 42.7 per cent higher than in Q3 2023.

The consumer finance segment at HD SAISON has continued its strong recovery, with loans outstanding up by 15 per cent year-over-year.

Profit before tax grew by 126 per cent year-on-year to VNĐ906 billion ($35.7 million), while ROE was 22.9 per cent, making it the most efficient consumer finance company in the industry.

The company currently has nearly 26,000 financial transaction points across 63 provinces and over 13 million customers.

As of September 30, 2024, HDBank’s total consolidated assets were worth VNĐ629 trillion ($24.9 billion), up 23.9 per cent year-on-year.

Its deposits rose by 24.8 per cent for the year to VNĐ559 trillion, and loans outstanding by 16.6 per cent to VNĐ412 trillion.

Digital banking, sustainable development strategies drive growth

HDBank continues to direct credit flows to industries that are the driving force of economic growth such as agriculture and rural development, SMEs, supply chain finance, household businesses, small traders, and green credit.

The non-performing loans ratio (according to the State Bank of Vietnam’s regulations) remained low at just 1.46 per cent, below the industry average.

The capital adequacy ratio according to Basel II standards has reached 14.8 per cent. 

Other prudential indicators also remain strong and in alignment with the bank’s sustainable development strategy that comprehensively integrates ESG standards into all its activities.

Its digital business activities continue to be dynamic. As of September 30, 2024, 95 per cent of retail customer transactions were carried out on digital platforms.

Digital channels also accounted for 77 per cent of new customers. Transaction volumes and deposit balances via digital channels grew exponentially.

Digitalisation of customer journeys, operational processes, big data analytics, and application of robotics and AI in serving customers have enhanced productivity and cost optimisation, reducing the cost-to-income ratio to 34.3 per cent, lower than a year earlier.

30% dividend distribution, fulfilling social responsibility

Continuing its tradition of consistent annual dividend payments, HDBank paid 30 per cent for 2023.

It had paid a 10 per cent cash dividend in July and is currently completing procedures to distribute 20 per cent in stocks.

Alongside business operations, HDBank also proactively meets its social responsibilities, helping customers revive their business after typhoon No. 3 through a VNĐ12 trillion preferential credit package.

It has also assisted storm-hit residents in northern provinces.

Recently HDBank and its subsidiaries contributed VNĐ80 billion to a national programme to eliminate temporary and dilapidated houses initiated by Prime Minister Phạm Minh Chính.

HDBank’s sustainable development strategy has earned it plenty of recognition and prestigious awards.

Recently it was named among the top 20 companies in terms of sustainability in the Ho Chi Minh Stock Exchange’s Sustainable Development Index (VNSI) basket for a fifth consecutive year.

The list was drawn up from the 100 largest listed companies and comprehensively evaluated for three ESG aspects.

At the Asian Banker Vietnam Excellence Awards, HDBank won the “Best Green Financing in Vietnam” award.

The highly commendable outcomes achieved in the first nine months has solidified HDBank’s position among top tier banks, demonstrating its robust and consistent growth, and will serve as a strong foundation for it to accomplish the targets approved by its shareholders. — VNS