HDBank registers rosy first quarter performance

HDBank reported 27 per cent jump on-year to reach $200 million in its pre-tax profit target

Particularly, by the end of the first quarter of this year, the bank’s total asset value reached VND202.562 trillion ($8.8 billion) while deposit volume came to VND177.237 trillion ($7.7 billion) and outstanding balances totalled VND135.449 trillion ($5.89 billion), a 12 per cent jump on-year and up almost 5 per cent compared to early 2019.

The overall banking sector’s credit expanded by about 2.28 per cent in the first quarter, according to figures released by the State Bank of Vietnam (SBV), which means HDBank’s business results have been fairly encouraging.

Aside from maintaining growth, the bank’s asset quality has been constantly improved, attesting to the efficiency of its risk control. Compared to the beginning of this year, the bank’s bad debts rate fell from 1.08 to 0.96 per cent, one of the lowest levels in the banking sector.

HDBank also reported improvements in its cost control activities. Accordingly, the cost-to-income ratio (CIR) of the parent bank shed to 41 per cent by the end of the first quarter this year, compared to 43 per cent by the end of last year. The consolidated CIR ratio was also slightly improved to 46 per cent against the 47 per cent at the end of 2018.

The bank’s operational efficiency continued to stay high with total operating income reaching VND2.466 trillion ($107.2 million) and pre-tax profit hitting VND1.101 trillion ($47.9 million), while its return-on-equity (ROE) and return on asset (ROA) ratio reached 20.4 and 1.7 per cent, respectively, placing it among the top performers in the whole sector.

This year, HDBank is set to post VND5.077 trillion ($220.7 million) in pre-tax profit, equal to a 27 per cent jump on-year, with ROE and ROA reaching 21.2 cent and 1.7 per cent, respectively, while its bad debts ratio continues to be tightly controlled.

Earlier, the bank set a record 65.7 per cent jump in its pre-tax profit to VND4.005 trillion ($174 million), exceeding the full-year plan.

At its 2019 recent annual general shareholders’ meeting, the bank’s executives confirmed their commitment to realising HDBank’s strategic target of growing into a leading retail bank, effectively serving small- and medium-sized enterprises (SMEs) and the consumers.

Towards this goal, HDBank will be striving to avail of its distinct advantage that is the broad ecosystem consisting of a wide customer base including Vietjet, HD Saison, and other major partners such as Petrolimex and Vinamilk.

HDBank is also set to increase the application of state-of-the art technologies to diversify its sales channel and bolster operational efficiency, striving to bring truly intriguing experiences to customers.