HDBank stands tall as one of the nation’s most profitable banks

April 23, 2018 | 14:46
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The 2018 annual general shareholders’ meeting of Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) was concluded successfully with a shareholder turnout of 85.6 per cent. All submissions of the board of directors were passed with high approval rates.
hdbank stands tall as one of the nations most profitable banks
HDBank had a lot to celebrate at its AGM this year

2017 witnessed the bold transformation of HDBank on the back of a successful 2011-2016 term. For instance, the offering of shares to foreign investors garnered enormous attention with the buying volume more than triple the offered shares.

On January 5, 2018, it was floated on the Ho Chi Minh City Stock Exchange (HSX) and made it to the top 20 largest initial public offerings (IPO) in the history of HSX. Three months after listing, it shares have attracted many investors with an impressive transaction volume. In fact, the bank’s successful IPO have led the rising trend for other banks’ shares.

Moreover, 2017 was also the turning point for the bank’s 2017-2012 term. With the aim of becoming a leading bank for retail, small-and-medium enterprises (SMEs), and consumer finance with a large network and efficient operations, HDBank is growing strongly and sustainably, and completing the tasks assigned by its General Shareholders’ Meeting.

As of December 31, 2017, the bank’s total assets rose by 26 per cent to reach VND189.334 trillion ($8.3 billion). The total deposits amounted to more than VND100 trillion ($4.4 billion), marking a 27 per cent growth, while the sector only averaged 17 per cent. Total deposits from customers stood at VND120.537 trillion ($5.3 billion), equivalent to a 16.7 per cent increase. Its charter capital amounted to VND9.81 trillion ($430 million).

Pre-tax profit reached VND2.417 trillion ($106 million), equivalent to a 110.6 per cent leap. Return on equity (ROE) and return on assets (ROA) stood respectively at 15.8 and 1.2 per cent, lifting the bank to stand among the top four most profitable banks. Non-performing loan ratio was limited at 1.51 per cent.

In 2017, HDBank expanded its network to 240 transaction locations, while HD SAISON extended its presence to more than 11,500 points of sales.

hdbank stands tall as one of the nations most profitable banks
Shareholders' confidence was reflected by the high number of votes in favour of the Board of Directors' proposals

The general meeting also ratified the dividend payout ratio of 35 per cent, of which 20 per cent shall be in bonus shares while 15 per cent in cash.

In 2017 HDBank was honoured with many prestigious awards and was highly regarded by domestic and international institutions. For instance, the bank received a B2 credit rating from Moody’s Investors Services, which was the highest rating amongst commercial banks.

On January 27, 2018, HDBank was awarded with the 2nd Class Labour Order by the Sate President of Vietnam. These achievements marked the recognition of the bank’s endeavours and results in the past year.

2018 marks the bank’s second year of implementing the 2017-2021 strategy. In order to continue its successes in 2017, HDBank and HD Saison will keep focusing on retail banking and SMEs.

This focus is reflected by the high targets ratified at the 2018 AGM in comparison with the average estimates for the sector. For example, the bank expects its profit to rise by 62.2 per cent to reach VND3.921 trillion ($171.9 million).

Other targets for 2018 include a 28.3 per cent increase to VND242.865 trillion ($10.7 billion) in total assets and a 30.3 per cent hike to VND222.184 trillion ($9.7 billion) in total deposits. Credit exposure is expected to reach VND154.510 trillion ($6.8 billion).

In addition, the non-performing loan ratio will be kept below 2 per cent, while ROA and ROE target the respective ratios of 1.3 and 20.2 per cent.

For the 2017-2021 term, HDBank will focus on expanding its customer base with big data and supply chain financing to utilise its network of leading customers in many sectors. By 2021, the bank aims at serving 15 million customers, triple its current base, and reaching an average 26 per cent annual growth in credit exposure, total deposit, and profit growth.

By Tuan Khanh

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