The HCM City Development Joint Stock Commercial Bank (HOSE: HDB) has reported impressive results for the fourth quarter of 2019. — Photo courtesy of HDBank

HCM CITY — The HCM City Development Joint Stock Commercial Bank (HOSE: HDB) has reported impressive results for the fourth quarter of 2019, with after-tax profit increasing by 40.1 per cent year-on-year to VNĐ1.57 trillion (US$67.7 million).

It took the full-year profit figure to VNĐ5.02 trillion ($216.3 million), an increase of 25.3 per cent.

Pre-tax profit was VNĐ4.02 trillion ($173.3 million), an increase of 25.6 per cent.

The non-performing loan ratio was a low 0.98 per cent, something that HDBank has controlled well over the years.

Several performance indicators in the fourth quarter showed strong breakthroughs. For instance, net interest income was up 33.6 per cent compared to the same period of 2018 to VNĐ2.9 trillion ($125.03 million).

Net income from services increased by 65.2 per cent, helping increase the total operating income to VNĐ3.3 trillion ($144.01 million), up 25.8 per cent.

Operating costs and provisions for bad debts were well controlled.

The net profit margin (NIM) went up sharply from 4.2 per cent at the end of 2018 to 4.8 per cent by the end of last year, one of the highest rates in the industry.

Earnings from services during the year increased by 36 per cent to more than VNĐ596 billion.

The strong growth in these main sources of income helped increase operating income by 20.6 per cent to a record VNĐ11.4 trillion in the whole year.

Provisions for bad debts were low thanks to the bank’s high asset quality.

The cost to income ratio continued to climb, rising from 44.6 per cent to 47 per cent the previous year.

The excellent performance once again places HDBank among the top banks in terms of profitability. Its return on average assets (ROAA) was over 1.8 per cent and return on average equity (ROAE) was 21.6 per cent.

As of December 31, it has total consolidated assets of VNĐ229.5 trillion ($9.89 billion), a year-on-year increase of 21.1 per cent, and equity of VNĐ20.38 trillion ($878.8 million).

Credit outstanding (including customer loans and corporate bonds) reached VNĐ153 trillion, higher than the industry average, with the parent bank’s outstanding loans being VNĐ140.4 trillion.

Last year, HDBank continued to focus on lending to priority areas such as high-tech agriculture, renewable energy, production and trading, and small- and medium-sized enterprises.

The consumer finance segment, one of its three growth drivers along with retail and SME, saw outstanding loans rise by over 18 per cent.

Besides its excellent business performance, HDBank also pioneered the application of the best international standards of governance, including Basel II standards.

Last year, it received the green light from the State Bank of Vietnam to adopt Basel II standards ahead of schedule, and its CAR has reached 11.25 per cent, much higher than the minimum of 8 per cent required.

This year, HDBank will continue to take the lead in technology, digital transformation, fintech and digital banking based on international safety and security standards to bring customers a satisfying and trustworthy experience. — VNS