Nguyen Thi Phuong Thao, Vice Chairwoman of HDBank, presents the lender’s profit distribution and dividend payment proposals for 2020 and plans to increase its charter capital in 2021 at the AGM held in HCM City on April 23. (Photo courtesy of HDBank) The information was released at its annual general meeting of shareholders held in Ho Chi Minh City on April 23. At the AGM, shareholders approved all the statements and proposals by the board of directors.
This year, HDBank aims to increase total assets by 25 percent to 399.32 trillion VND (17.3 billion USD), and deposits and loans outstanding by 25 percent and 26 percent to 359.85 trillion VND and 236.77 trillion VND.
Profitability ratios like return on assets and return on equity will continue to be high at 1.62 percent and 21.1 percent.
This year it will continue to speed up digital transformation, automate key processes to improve the customer experience, reduce operating costs, and generally improve its competitiveness.
HDBank will prioritise development of the services segment, where it still has a lot of room to grow bancassurance and many international life insurance companies are keen to sign exclusive agreements with it.
The credit card segment and other products and services also have great potential for development in 2021 and the following years.
The AGM also approved the profit distribution plans for 2020 with dividends to be paid in shares at a rate of 25 percent.
The bank achieved outstanding growth in the first quarter of the year, with consolidated pre-tax profits of over 2.1 trillion VND (91.17 million USD), up 68 percent year-on-year.
The standalone pre-tax profits topped 1.8 trillion VND (78.14 million USD), a year-on-year increase of 88 percent and indicating that the bank will achieve the business targets it has set itself for this year.
According to report by the board of directors, amid the challenges caused by the COVID-19 pandemic, HDBank has rolled out many support policies for customers and the community to help them overcome the epidemic and taken measures to ensure the system operates smoothly, steadily and safely and is consistent with its sustainable development strategy and accelerated digital transformation.
The bank achieved its best results ever in 2020.
Its total consolidated assets increased by 39.1 percent to 319.127 trillion VND (13.8 billion USD), or 104.5 percent of the target for the year.
Its deposits at the end of the year reached 208.95 trillion VND (9.06 billion USD), up 38.4 percent for the year and 11 percent higher than the target.
Loans outstanding increased by 23 percent to 188.2 trillion VND, exceeding the target by 5.8 percent.
Return on equity and return on assets were 20.6 percent and 1.7 percent.
The bank also fulfilled its plans to increase the charter capital from 9.8 trillion VND to more than 16.088 trillion VND by issuing dividends and bonus shares to the tune of 65 percent, the highest rate in the industry.
Profit before tax was 5.82 trillion VND, up 15.9 percent and equivalent to 102.8 percent of the target.
Its revenues from services increased by half over the same period.
The bank’s non-performing loans ratio was just 0.93 percent, among the lowest in the industry.
All the bonds it sold to the Vietnam Asset Management Company have been settled before schedule.
Safety indicators have been improving consistently.
Of these, the ratio of short-term funds used for medium- and long-term loans is only 24.8 percent as against the permitted maximum level of 40 percent, and the capital adequacy ratio is 12.1 percent while it needs to be only 8 percent.
HDBank was one of the first lenders in Vietnam to complete all three Basel II risk management pillars ahead of the central bank’s schedule.
Credit rating agency Moody's recently confirmed HDBank’s B1, or “stable” ratings outlook.
The year also witnessed strong digital transformation by the lender, which has created a solid foundation for achieving its goal of becoming Vietnam’s leading digital bank.
Besides, HDBank undertook a number of community activities, contributed 18 percent more to the State budget than in 2019, and ensured the interests of shareholders and employees were fully safeguarded.
With its solid foundations, outstanding performance and transparency meeting the highest international standards, the bank wants to walk hand in hand with shareholders and investors towards new successes and great benefits./.
VNA
