HO CHI MINH CITY, VIETNAM - Media OutReach- 30 October, 2020 - TheHCM City Development Joint Stock Commercial Bank (HDBank, HOSE: HDB) reportedpre-tax profits (separately) of VND3.615 trillion(US$155.5 million) for the first nine months of the year, a year-on-year increase of 31.9 per cent and equivalentto 107 per cent of the target.

Non-interest income grew by 158 per cent inthe third quarter as the Bank launched a number of programmes to help customersand others cope with the COVID-19 pandemic.

The total operating income of the parent bankfor the quarter was VND2.317 trillion ($99.65 million), up 21.4 per cent, withnet interest income increasing by 25.6 per cent and fees from servicesby 158 per cent.

Profit before tax was VND1.255 trillion ($540.8million), up 24.9 per cent and consolidated pre-tax profit was worth VND1.474trillion ($63.5 million), up 19.1 per cent year-on-year.

The parent bank's profits for the first ninemonths rose 31.9 per cent to VND3.615 trillion ($155.5 million), with netinterest income and service fee income increasing by 31.1 per cent and 71.9 percent.

Consolidated profits were up 27.1 per cent toVND4.381 trillion ($188.46 million), equivalent to 103 per cent of its target.

Return on equity (ROE) and return on assets(ROA) were 21.1 per cent and 1.9 per cent.

The indicators of financial health wereexcellent. The capital adequacy ratio(CAR) was 10.9 per cent as against a minimum of 8 per cent prescribed underBasel II norms.

The ratio of short-term capital to medium-and long-term loans was only 23.7 per cent against a permitted cap of 40 percent.

Credit rating agency Moody's recently rankedHDBank B1 even as the national credit rating was included in the monitoringcategory for a possible downgrade.

As of September 30 this year the Bank's totalconsolidated assets topped VND273 trillion ($11.76billion), an increase of 19.1per cent compared to the beginning of the year and an increase of 25.8 per centfrom 12 months earlier.

Outstanding credit was at VND175 trillion($7.5 billion), an increase of 14.1 per cent over the year, 19.2 per centhigher than a year earlier and twice the banking industry's average.

Theabove results were possible thanks to the Bank enhancing credit programmes tosupport customers, embracing digitisation to improve efficiency and reducecosts and lowering lending interest rates while ensuring reasonable net profitmargins.

HDBank's'green credit' programmes to promote high-tech agriculture, renewable energy,small and medium-sized enterprises, essential goods supply chains, andproduction and business households are welcomed by customers.

Alongwith outstanding loan portfolio growth, effective risk management has helpedHDBank control asset quality with its bad debts ratio (separately) of 1.39 percent being lower than the industry average.

HDBankhas redeemed all its VAMC (Việt Nam Asset Management Company) bonds earlierthan planned. The Bank has also actively increased provisioning and is ready todeal with any risks that arise.

Atthe same time the Bank has rolled out manyservices that are based on advanced technologies tooffer customers more benefits on its mobile banking and internet bankingplatforms and to digitise its internal and transactions processes to become apaperless and digital bank.

HDBankis the pioneer in implementing online customer identity verification (eKYC) and offering internationalpayment solutions and trade finance on the blockchain platform using technology4.0.

In2020 the Bank won a number of prestigious honours from internationalorganisations such as the 'Best Innovation in Green Banking' and 'MostInnovative Mobile Banking App' awards from Global Business Outlook magazine, aplace in Forbesmagazine's top 50 listed Vietnamese companies list and the "Mid-sizedDomestic Retail Bank of the Year" from Asian Banking & Finance.

Thisis a pivotal year for HDBank in implementing its five-year development plan for2016-21. The Bank has alwaysbeen consistent in its strategies of sustainable development, high growth,ensuring a return on equity of over 20 per cent, and developing digitalbanking.

Theoperating results that exceed the targets for the first nine months of 2020will serve as a basis for the bank to achieve the targets for the whole year.

RecentlyHDBank paid its first dividend for 2019and issued bonus shares at a total rate of 30 per cent.

The Bank isexpected topay a second dividend in the fourth quarter.

About HDBank

Ho Chi Minh City Development JSC Bank (HDBank, HOSE:HDB) wasestablished in 1990, making it among the first commercial banks in Vietnam.

After 30 years of operations, HDBank is now one of the leadingbanks in Vietnam. It hasstrong finances and modern technology, and provides a widerange of financial services to individuals, corporates and investors.