HDBank aims to reach $220 million pretax profit with 30 per cent payout ratio in 2019

HDBank's 2019 annual general shareholders' meeting

Last year saw the bank leap frogging in development, improving its status as one of the best performers in the local banking sector with solid financial strength and a well-established reputation, making active contributions to social and community development.

The bank’s report submitted to the AGM showed upbeat growth in most of the bank’s business indexes. Particularly, its total asset value touched VND216.057 trillion ($9.4 billion), up 14.1 per cent, while equity reached VND16.828 trillion ($731.7 million), up 14 per cent. Outstanding balances totalled VND129.624 trillion ($5.64 billion), up 17.8 per cent, and total deposit volume came to VND186.722 trillion ($8.1 billion), up 9.5 per cent.

Of this, raisings from the community and business organisations amounted to VND142.987 trillion ($6.2 billion), and bad debts continued to be tightly controlled at 1.1 per cent, the lowest in the banking sector. The capital adequacy ratio (CAR) reached 12.1 per cent against the regulated 9 per cent by the State Bank of Vietnam (SBV).

The bank’s pre-tax profit rose phenomenally at 65.7 per cent against 2017 to reach VND4.005 trillion ($174.1 million), and equal to 102 per cent of the full-year plan.

With constantly improving operational efficiency, HDBank continued to post a high compounded annual growth rate (CAGR) which reached 67.1 per cent during the past five years (2013-2018). Its earnings per share (EPS), therefore, jumped nearly 50 per cent on average.

By the end of last year, the bank fulfilled the target of opening 10 new transaction offices and five branches, raising its operation network to 285 points. Besides, its consumer finance transaction offices continued to be expanded to 13,825 offices, taking the lead in the market. The bank also reported 14,340 employees with ever-increasing income.

HDBank aims to keep bad debts below 2 per cent in 2019

Last year, the bank’s ticker was officially listed on the southern bourse (HSX), quickly raising among the top 20 listed firms in terms of market capitalisation. Also last year, the HDB ticker ticked off sufficient conditions to join the VN30 basket featuring the best performing tickers.

HDBank’s AGM 2019 approved major business targets for the year, including a 16 per cent on-year jump in its total asset value to VND249.546 trillion ($10.85 billion), a 20 per cent jump in total deposit volumes to VND224.238 trillion ($9.75 billion), and outstanding balances to reach VND160.911 trillion ($7 billion). Bad debts will be kept below 2 per cent.

The shareholders also approved a 27 per cent jump in pre-tax profit to VND5.077 trillion ($220.7 million). The ROA and ROE will also be kept at high levels of 1.7 and 21.2 per cent, respectively. Its banking transaction network will be expanded to 308 offices and branches.

This year, HDBank will continue applying cutting-edge banking management solutions while fostering technology innovations. The bank will also make an effort to apply Basel II standards in risk control and further study solutions to improve its financial capacity and competitiveness, while alongside diversifying deposit sources and bettering its asset structure to raise the proportion of profitable assets.

The AGM also approved a high dividend and bonus share payout ratio of 30 per cent for 2019, with shareholders receiving 10 per cent in dividend and 20 per cent in shares and bonus shares.

The AGM simultaneously approved raising the bank’s charter capital to VND12.753 trillion ($554.5 million) within this year through stock issuances for dividend and bonus share payments.