HDBank reports robust growth amid pandemic

HDBank has reached 84 per cent of its full-year business plan after 3Q despite pandemic impacts

The bank has also actively deployed digital transformation while dedicating more than VND42 trillion ($1.83 billion) to support customers’ recovery efforts post-pandemic.

By the end of September, the bank's total assets reached more than $15.05 billion, up 26.7 per on-year. Outstanding loans increased by 16.1 per cent on-year. Standalone bad debts ratio was kept below 1 per cent, and constrained bad debt ratio was 1.4 per cent – ​​both lower than in the same period last year. Outstanding loans in potential high-risk areas and restructuring debts were well controlled.

During the period, HDBank ensured liquidity and safe capital levels. Its equity reached VND29.270 trillion ($1.27 billion), showing a 22.5 per cent jump on-year which was instrumental for the jump in capital adequacy ratio (CAR) compatible to Basel II standards to 13.5 per cent against just 10.9 per cent on September 30, 2020. Other safety ratios were better than state regulated levels.

The bank's total operating income in the three quarters exceeded VND12.128 trillion ($527 million), up 23.6 per cent on-year. Service activities continued to be the bright spot, with net income increasing 88.6 per cent on-year while net interest income rose 16.7 per cent .

Notably, the net income from services at the parent bank more than tripled from the same period last year thanks to the growth of bancassuance and payment services. The operating costs were optimised as the cost/total operating income ratio reduced from 43.8 per cent since the end of September 2020 to 39 per cent at present.

The lender's return on equity reached 24 per cent, a sharp increase from the 21.1 per cent reached in the same period last year.

In light of its development strategy for 2021, HDBank has actively promoted digital transformation with the introduction of a range of utility products such as deploying e-Know Your Customer (eKYC), opening online accounts (eAccount); ensuring 24/7 online credit provision (e-Credit); spreading letters of credit (eLC) online, transferring money internationally (eTT), and expanding non-cash payment solutions, among others.

Aside from deploying products and services on digital platform, HDBank has earmarked a VND5 trillion ($217.4 million) credit package to its online customers. The bank has also expanded its credit package to reach VND10 trillion ($434.8 million), helping small and medium-size enterprises to replenish their working capital.

For retail customers and micro businesses, HDBank has offered diverse credit packages with competitive interest rates. As of now, the bank has dedicated more than VND42 trilion to help retail customers and businesses reboot and expand production post-pandemic.

With a high and sustainable growth, HDBank has recently been honoured among the five most reputable Vietnamese banks by Vietnam Report. Earlier, in August 2021 HDBank won the Best Bank and Best Digital Transformation Bank awards in Vietnam in 2021 by Global Brand Awards, an annual event held by Global Brands, an international publication headquartered in the United Kingdom. The award aims to recognise global brands achieving excellence in performance across a broad range of sectors.