Bank leaders at HDBank’s Annual General Meeting of Shareholders (AGM) 2019 was held in HCM City yesterday. Photo HDBank
HCM CITY — Việt Nam's Housing Development Bank (HDBank) plans to collect VNĐ5.07 trillion (US$217 million) in pre-tax profits this year, an increase of 27 per cent compared to 2018.
The information was released during HDBank’s Annual General Meeting of Shareholders (AGM) 2019 held in HCM City yesterday.
The bank forecast that total assets this year will be up 16 per cent from 2018 to reach nearly VNĐ250 trillion, capital mobilisation will touch VNĐ224.2 trillion, an increase of 20 per cent year-on-year.
In 2019, outstanding loans are expected to be VNĐ160.9 trillion, bad debt ratio will be kept below 2 per cent.
Return on Asset (ROA) and Return on Equity (ROE) will increase by 1.7 per cent and 21.2 per cent, respectively.
The bank will continue to expand the network of transaction points, lifting the total number to 308.
In 2019, HDBank will apply modern banking management models to meet international standards, boost technological innovation and apply Basel II standards in risk management, improve financial capacity and competitiveness, diversify mobilised capital sources and restructure assets to increase the proportion of profitable assets.
This year, shareholders will receive cash dividend payment at the rate of 10 per cent.
During the AGM, shareholders also agreed with the plan to increase charter capital in 2019 via the issuance of shares for dividend payment and bonus shares. Dividend paid in shares and bonus shares issuance will be kept at the rate of 20 per cent.
This capital raising plan will help HDBank to further improve the safety criteria under Basel II and increase capital supply for business activities.
Last year, HDBank witnessed strong development as most of the business targets increased positively compared to the same period of 2017.
Total assets reached more than VNĐ216 trillion, up 14.1 per cent. Owner's equity reached VNĐ16.8 trillion, up 14 per cent. Total outstanding loans reached VNĐ129.6 trillion, up 17.8 per cent.
Total mobilised capital reached VNĐ186.7 trillion, an increase of 9.5 per cent compared to 2017. Of the estimate, mobilised capital from residents and economic organisations reached VNĐ143 trillion. Non-performing loan (NPL) ratio was controlled at low level of 1.5 per cent. Capital adequacy ratio (CAR) reached 12.1 per cent.
In 2018, HDBank’s pre-tax profit was VNĐ4 trillion, up 65.7 per cent compared to 2017 and completing 101.8 per cent of the annual plan.
With improvement in operating efficiency, HDBank continued to maintain growth in net profit. Within five years from 2013 to 2018, HDBank's net profit growth reached 67.1 per cent. As a result, earnings per share (EPS) also increased by nearly 50 per cent on average.
By the end of 2018, HDBank had completed opening 40 transaction points and five branches, increasing the network system to 285 units. The system of consumer financial transaction points continued to be expanded to 13,825 points, maintaining the market leading position. The number of employees reached 14,340 people, with increasing income.
In 2018, HDBank shares were officially listed and traded on the Hồ Chí Minh City Stock Exchange. The bank was also included in the list of Việt Nam’s top 20 enterprises with the largest market capitalisation. Also last year, HDBank shares met all the conditions to join the VN-30 Index basket. — VNS