HDBank first-half business results showing growth exceeding expectations

HDBank is currrently the only bank in Vietnam that was appraised by HR Asia as one of The Best Places to Work for in Asia for three consecutive years

The bank also pioneers implementing many modern digital banking services that were received well by the market.

According to the bank’s first-half financial report reviewed by renowned auditing firm EY Vietnam, most of HDBank's business indices posted high growth.

Along with this, total credit to customers and customer deposits as of June 30, 2020 increased by 10.3 per cent and 18.2 per cent year-to-date, respectively, which were stronger than the industry average.

The credit portfolio is well diversified to ensure safety and efficiency, prioritising industries and sectors such as high-technology farming, renewable energy, small- and medium-sized enterprises (SMEs), and supply chains providing essential goods, household businesses, and more. As a result, its asset quality is maintained at a healthy level in the banking industry, with a separate non-performing loan (NPL) ratio of only 1.1 per cent.

The consumer finance segment at its member unit HD SAISON grew sustainably and efficiently with the loan balance as of June 30, 2020 expanding by 7.2 per cent year-to-date. Asset quality remained stable with improving NPL ratio year-over-year.

HDBank's credit cost was at the highest level in the industry for many consecutive years. Meanwhile, the bank’s point of sale (POS) network is the largest in the market with more than 18,000 POS. Its member HD SAISON is expected to be transformed from the limited liability to the joint-stock model to grow further in size.

In parallel with size growth, the indicators of operational efficiency and financial health have also witnessed constant improvement.

Accordingly, its consolidated pre-tax profit reached VND2.908 trillion ($126.43 million), up 31.5 per cent on-year. Return on equity (ROE) increased to 21.6 per cent from 20 per cent, and return on assets (ROA) rose to 1.97 per cent from 1.6 per cent. Capital adequacy ratio (CAR) (under Basel II) went from 10.6 to 11.5 per cent, far exceeding the minimum requirement of 8 per cent. The ratio of short-term funds to long-term loans was only 21.3 per cent, maintaining its position among the group of banks with the strongest capital adequacy and liquidity.

Accompanying the economy in the new normal, HDBank has been offering many credit packages with preferential interest rates to support customers. The bank set aside VND24 trillion ($1 billion) for SMEs, as well as VND10 trillion ($434.8 million) for micro enterprises, household businesses, and individual customers. HDBank also exempted or reduced most transaction fees to support customers facing difficulties due to the COVID-19 pandemic.

Choosing 2020 as a pivotal year for digital transformation, HDBank is providing many tech-intensive services for customers with more utilities on mobile banking and internet banking, and digitising its operations to evolve towards a digital and paperless bank.

The initial results are very encouraging as its digital banking service DiHDBank recorded robust growth. The number of users jumped 66 per cent on-year. The number of transactions soared 73 per cent to touch nearly two million.

Its diverse programmes such as online account opening for business customers, online credit extension, e-KYC, and online credit-card issuance, among others are also warmly welcomed by customers.

HDBank's efforts have been acknowledged by the community with many prestigious accolades. Recently, Asian Banking & Finance has honoured HDBank for the second time in a row with the Best Domestic Retail Bank award.

HDBank has become the only bank in Vietnam to be appraised by HR Asia as one of The Best Places to Work for in Asia for three consecutive years. The international credit rating agency Moody's has recently affirmed HDBank’s Credit Ratings at B1, assessing that the bank has made steady progress in improving asset quality and capitalisation supported by high profitability and sustainability.