HDBank eyes 25 per cent jump in profit in 2021

April, 24/2021 - 15:00

The Ho Chi Minh City Development Joint Stock Commercial Bank (HoSE: HDB) targets profit before tax of VNĐ7.281 trillion (US$315,741 million), an increase of 25 per cent from 2020.

Nguyễn Thị Phương Thảo, permanent deputy chairwoman of HDBank, presents the lender’s profit distribution and dividend payment proposals for 2020 and plans to increase its charter capital in 2021 at the AGM held in HCM City on April 23. — Photo courtesy of HDBank

HCM CITY — The Ho Chi Minh City Development Joint Stock Commercial Bank (HoSE: HDB) targets profit before tax of VNĐ7.281 trillion (US$315,741 million), an increase of 25 per cent from 2020.

The information was released at its annual general meeting of shareholders held in HCM City on April 23. At the AGM, shareholders approved all the statements and proposals by the board of directors.

This year HDBank aims to increase total assets by 25 per cent to VNĐ399.32 trillion ($17.3 billion), and deposits and loans outstanding by 25 per cent and 26 per cent to VNĐ359.85 trillion and VNĐ236.77 trillion.

Profitability ratios like return on assets and return on equity will continue to be high at 1.62 per cent and 21.1 per cent.

This year it will continue to speed up digital transformation, automate key processes to improve the customer experience, reduce operating costs, and generally improve its competitiveness.

HDBank will prioritise development of the services segment, where it still has a lot of room to grow bancassurance and many international life insurance companies are keen to sign exclusive agreements with it.

The credit card segment and other products and services also have great potential for development in 2021 and the following years.

The AGM also approved the profit distribution plans for 2020 with dividends to be paid in shares at a rate of 25 per cent.

The bank achieved outstanding growth in the first quarter of the year, with consolidated pre-tax profits of over VNĐ 2.1 trillion ($91.17 million), up 68 per cent year-on-year.

The standalone pre-tax profits topped VNĐ1.8 trillion ($78.14 million), a year-on-year increase of 88 per cent and indicating that the bank will achieve the business targets it has set itself for this year.

According to report by the board of directors, amid the challenges caused by the Covid -19, HDBank has rolled out many support policies for customers and the community to help them overcome the epidemic and taken measures to ensure the system operates smoothly, steadily and safely and is consistent with its sustainable development strategy and accelerated digital transformation.

The bank achieved its best results ever in 2020.

Its total consolidated assets increased by 39.1 per cent to VNĐ319.127 trillion (US$13.8 billion), or 104.5 per cent of the target for the year.

Its deposits at the end of the year reached VNĐ208.95 trillion ($9.06 billion), up 38.4 per cent for the year and 11 per cent higher than the target.

Loans outstanding increased by 23 per cent to VNĐ188.2 trillion, exceeding the target by 5.8 per cent.

Return on equity and return on assets were 20.6 per cent and 1.7 per cent.

The bank also fulfilled its plans to increase the charter capital from VNĐ9.8 trillion to more than VNĐ16.088 trillion by issuing dividends and bonus shares to the tune of 65 per cent, the highest rate in the industry.

Profit before tax was VNĐ5.82 trillion, up 15.9 per cent and equivalent to 102.8 per cent of the target.

Its revenues from services increased by half over the same period.

The bank’s non-performing loans ratio was just 0.93 per cent, among the lowest in the industry.

All the bonds it sold to the Vietnam Asset Management Company have been settled before schedule.

Safety indicators have been improving consistently.

Of these, the ratio of short-term funds used for medium- and long-term loans is only 24.8 per cent as against the permitted maximum level of 40 per cent, and the capital adequacy ratio is 12.1 per cent while it needs to be only 8 per cent.

HDBank was one of the first lenders in Việt Nam to complete all three Basel II risk management pillars ahead of the central bank’s schedule.

Credit rating agency Moody's recently confirmed HDBank’s B1, or “stable” ratings outlook.

The year also witnessed strong digital transformation by the lender, which has created a solid foundation for achieving its goal of becoming Việt Nam's leading digital bank.

Besides, HDBank undertook a number of community activities, contributed 18 per cent more to the State budget than in 2019, and ensured the interests of shareholders and employees were fully safeguarded.

With its solid foundations, outstanding performance and transparency meeting the highest international standards, the bank wants to walk hand in hand with shareholders and investors towards new successes and great benefits. — VNS