Illustrative image (Source: VNA)
 
Hanoi (VNA) - HDBank continuously posted record high profit in 2016, making it the most successful case in the country’s bank restructuring.

The bank’s pre-tax profit in 2016 surged by up to nearly 63 percent against the previous year to 1.282 trillion VND (51.9 million USD).

For the past three consecutive years, HDBank made high profits following a merger with DaiABank and the acquisition of Société Générale Viet Finance (SGVF) a few years ago.

The bank’s total assets by the end of 2016 doubled against 2014 to more than 152 trillion VND. Its non-performing loan ratio was also controlled at 1.65 percent.

The bank’s representatives attributed the success to its merger with a good bank and effective business strategies, including the acquisition of a finance company.

Following the merger with DaiABank, HDBank has become a medium-sized bank, with total assets of some 70 trillion VND and a network of 220 counters.

Right after the merger, HDBank also successfully set up effective business strategies with the acquisition of a foreign wholly-owned finance company and then cooperated with a Japanese partner to boost a finance company called HD Saison that currently has more than 6,000 counters nationwide.

The HD Saison finance company enabled HDBank to earn profits of 175 billion VND in 2014, 280 billion VND in 2015 and more than 440 billion VND in 2016.

Owing to the good business performance, the State Bank of Vietnam allowed HDBank to pay dividends of 5 percent in 2014 and 10 percent in 2015.

In 2017, HDBank has targeted increasing total assets to 193.3 trillion VND and profit to 1.64 trillion VND. It also expects to lower bad debt ratio to 1.5 percent.-VNA