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- Green Growth
|HDBank's has posted bright performance in the first half|
According to the consolidated financial statements for the second quarter of 2021, as of June 30, total assets reached VND330.97 trillion($14.4 billion). Outstanding debts reached more than VND199.163 billion ($8.7 billion), up 5.8 per cent compared to the end of 2020. Currently, HDBank's asset quality is among the best in the industry with a separate bad debt ratio of only 0.8 per cent.
Total operating income in Q2 reached VND4.25 trillion ($184.8 million) and the cumulative 6-month operating income reached more than VND8.42 trillion ($366 million), up 32.7 per cent on-year. Of this, net revenue from services reached more than VND857 billion ($37.26 million), 2.3 times as much as in the same period last year thanks to the strong growth of bancassurance and payment services, demonstrating that there is still a lot of room for growth.
Management efficiency and profitability were enhanced with a sharp increase in return on equity (ROE) from 21.6 to 25.6 per cent. Return on assets (ROA) increased from 2 to 2.1 per cent. The cost to operating income ratio reached 39.4 per cent, better than in the same period last year.
Capital adequacy and liquidity are at a good level with CAR (Basel II) reaching 13.2 per cent. Loan-to-deposit ratio (LDR) reached 68 per cecnt. HDBank has recently announced the adoption of Basel III standards. Moody’s Investors Service also changed the outlook on the long-term deposit and issuer ratings of the bank to "positive" from "stable".
With the tradition of paying regular dividends at a high level, HDBank has just implemented a 25 per cent share dividend payment for 2020 for the list of shareholders finalised by August 27, 2021.
Supporting the community to overcome the pandemic, from July 15, HDBank reduced the average lending interest rate by 1 per cent per annum for customers in prioritised sectors as well as in areas directly affected by the COVID-19 pandemic. In parallel, HDBank continues to implement preferential lending programmes with interest rates of up to 4.5 per cent lower compared to current interest rates.
HDBank left a special hallmark with the initiative to establish the COVID-19 Vaccine Fund and supported the fund's activities together with Sovico Group. The government's Vaccine Fund has raised VND8.3 trillion ($360.87 million), contributing to Vietnam's determination to fight the pandemic.
HDBank is one of the pioneer banks in implementing digital transformation and automating operations by applying electronic know-your-customer (eKYC), promoting non-cash payments, and increasing utilities on digital transaction channels, among others to help improve efficiency and customer experience while reducing face-to-face contact.
With positive results in the first six months of the year, HDBank is confident to complete and exceed the planned targets for 2021, creating momentum for a new growth phase according to the strategy just finalised with foreign consultants.