HDBank posts outstanding business results in first half of 2024

According to data released at the conference, HDBank was among the top 10 banksin the industry, posting a pre-tax profit of over $322.8 million, up 48.9 per cent on-year. Return on equity and return on assets were 26.1 per cent and 2.1 per cent, respectively, reaffirming HBank’s industry leading business performance.

In the first half of 2024, HDBank recorded revenue of over $636.9 million, up 32.9 per cent on-year. The bank also maintained its capital adequacy ratio at 13.9 per cent in accordance with Basel II standards. Meanwhile, its consolidated non-performing loan ratio was only 1.59 per cent, and 1.37 per cent at the parent bank.

The bank also recorded credit growth of 13.3 per cent in H1, doubling the industry average. Retail credit climbed strongly, coupled with a strategy to direct capital to localities with a focus on credit for agriculture and rural development, alongside financing to SMEs, supply chain finance, green credit, and export industries.

At the conference, Pham Van Dau, CFO of HDBank, said, “In the first half of 2024, the bank’s capital expenses dropped by 1.7 per cent from the beginning of the year and 1.9 per cent on-year. Our net interest margin surpassed expectations, reaching 5.7 per cent compared to the target of 5.1 per cent. The cost-to-income ratio was maintained at 34.2 per cent despite the bank’s heavy investments in its network and technology.”

“The positive results create favourable conditions for HDBank to stabilise its lending interest rates, supporting customers towards sustainable development,” he said.

HDBank recently made its first dividend payment for 2023, with a ratio of 10 per cent in cash as part of its industry-highest dividend payout plan of up to 30 per cent. Based on the current business performance, Dau stated that the bank can maintain its tradition of paying high dividends through 2025.

At the conference, shareholders raised questions about HDB's stock valuation. Tran Hoai Nam, deputy general director of HDBank, said, “The current valuation of HDB stock remains low according to our price-to-earnings (P/E) and price-to-book (P/B) ratios.”

For a bank withgood indicators like HDB (return on equity of 26.1 per cent), this stock valuation is much lower than the average, and there is still a lot of room for digital banking development.

Currently, HDB's P/B stands at 1.4 times and P/E is less than 6x compared to the period before fluctuations COVID???, during which P/B reached 2.3 times and P/E was over 10x, almost double the current figures. Due to improved market sentiment and the easing of short-term fluctuations, the valuation levels are likely to return to previous highs.

In light of impressive first-half business results and internal strength accumulated over 11 years of sustainable growth, HDBank has further strengthened its strategy to become a leading multi-functional, multiservice, and modern bank in Vietnam.

At the conference, HDBank’s leaders said the bank is stepping up its digital transformation and investments in technology, especially the adoption of AI and big data, to optimise its financial services. It is also driving to expand its customer base with positive results.

Specifically, in the first half of 2024, the number of new customers attracted via HDBank’s digital channels soared by 2.5 times more than the same period last year. A remarkable 94 per cent of customer transactions were conducted on digital channels, while the number of e-banking transactions increased by 130 per cent over the same period.

Along with digital channels, HDBank has continued to leave its mark on traditional models by becoming one of the few banks to spread its branch and transaction point network across all 63 cities and localities in Vietnam.

Beyond internal operational digital transformation initiatives, HDBank has also undertaken numerous big data projects driven by the RFM model (Recency - time of most recent purchase, Frequency - frequency of customer purchases, Monetary - transaction value of each customer purchase) to support effective business decision-making. The model provides insights into customer behaviours and allows predictions of future consumption trends. As a result, the bank can direct resources to potential leads and develop sales strategies and products tailored to customer needs, thereby boosting conversion and cross-selling across its business units.

Recognising the important role of sustainable development, HDBank has integrated environmental, social, and governance (ESG) criteria into its business strategy. With consistent efforts to implement this ESG strategy, HDBank was the first bank in 2024 to release its Sustainable Development Report based on international standards and committed to the goal of becoming a net-zero bank by 2050.

HDBank has demonstrated its commitment to greening the economy by promoting green finance, supporting communities with preferential lending packages, and sponsoring green energy and sustainable development projects.

In 2024, HDBank has also received many prestigious awards, proving its reputation and outstanding capacity. Most recently, at the Asian Banker Awards 2024 ceremony organised by The Asian Banker - one of the most prestigious and rigorous awards for finance and banking in Asia, HDBank was recognised for its efforts in promoting green finance, affirming the bank's position in the international market in two categories: "Best Green Financing in Vietnam" and "The Asian Banker Vietnam Excellence Awards 2024".

The recognition from The Asian Banker is a testament to HDBank's strategic vision and efforts, affirming HDBank's comprehensive development and sustainable commitment in the financial industry, especially its green finance and digital banking strategy with a commitment to bringing long-term sustainable values to customers, shareholders, and the community.

HDBank releases 2024 Sustainable Development Report Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) published its 2024 Sustainable Development Report on May 23, the first of its kind in the banking sector.

HDBank approves dividend payment of 30 per cent in cash and stocks Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank—HSX: HDB) will pay a dividend of 30 per cent for 2023, including 10 per cent in cash and 20 per cent in shares, according to a resolution announced by its Board of Directors on July 2.

HDBank's H1 2024 profit reaches $323 billion HDBank has announced its financial statement for the second quarter of 2024, with a pre-tax profit of over $322.8 million for the first half of the year, up 48.9 per cent on-year.