HDBank eyes 25 percent jump in profit in 2021

The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) targets pre-tax profit of 7.28 trillion VND (316.65 million USD), an increase of 25 percent from 2020.
HDBank eyes 25 percent jump in profit in 2021 ảnh 1Nguyen 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)
HCMCity (VNS/VNA) - The Ho Chi Minh City Development Joint StockCommercial Bank (HDBank) targets pre-tax profit of 7.28 trillion VND (316.65million USD), an increase of 25 percent from 2020.

Theinformation was released at its annual general meeting of shareholders held inHo Chi Minh City on April 23. At the AGM, shareholders approved all thestatements and proposals by the board of directors.

Thisyear, 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 percentto 359.85 trillion VND and 236.77 trillion VND.

Profitabilityratios like return on assets and return on equity will continue to be high at1.62 percent and 21.1 percent.

Thisyear it will continue to speed up digital transformation, automate keyprocesses to improve the customer experience, reduce operating costs, andgenerally improve its competitiveness.

HDBankwill prioritise development of the services segment, where it still has a lotof room to grow bancassurance and many international life insurance companiesare keen to sign exclusive agreements with it.

Thecredit card segment and other products and services also have great potentialfor development in 2021 and the following years.

TheAGM also approved the profit distribution plans for 2020 with dividends to bepaid in shares at a rate of 25 percent.

Thebank achieved outstanding growth in the first quarter of the year, withconsolidated pre-tax profits of over 2.1 trillion VND (91.17 million USD), up68 percent year-on-year.

Thestandalone pre-tax profits topped 1.8 trillion VND (78.14 million USD), a year-on-yearincrease of 88 percent and indicating that the bank will achieve thebusiness targets it has set itself for this year.

Accordingto report by the board of directors, amid the challenges caused by the COVID-19pandemic, HDBank has rolled out many support policies for customers and thecommunity to help them overcome the epidemic and taken measures to ensure thesystem operates smoothly, steadily and safely and is consistent with itssustainable development strategy and accelerated digital transformation.

Thebank achieved its best results ever in 2020.

Itstotal consolidated assets increased by 39.1 percent to 319.127 trillion VND (13.8billion USD), or 104.5 percent of the target for the year.

Itsdeposits 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.

Loansoutstanding increased by 23 percent to 188.2 trillion VND, exceeding the targetby 5.8 percent.

Returnon equity and return on assets were 20.6 percent and 1.7 percent.

Thebank also fulfilled its plans to increase the charter capital from 9.8 trillionVND to more than 16.088 trillion VND by issuing dividends and bonus shares tothe tune of 65 percent, the highest rate in the industry.

Profitbefore tax was 5.82 trillion VND, up 15.9 percent and equivalent to 102.8 percentof the target.

Itsrevenues from services increased by half over the same period.

Thebank’s non-performing loans ratio was just 0.93 percent, among the lowest inthe industry.

Allthe bonds it sold to the Vietnam Asset Management Company have beensettled before schedule.

Safetyindicators have been improving consistently.

Ofthese, the ratio of short-term funds used for medium- and long-term loans isonly 24.8 percent as against the permitted maximum level of 40 percent, and thecapital adequacy ratio is 12.1 percent while it needs to be only 8 percent.

HDBankwas one of the first lenders in Vietnam to complete all three Basel II riskmanagement pillars ahead of the central bank’s schedule.

Creditrating agency Moody's recently confirmed HDBank’s B1, or “stable” ratingsoutlook.

Theyear also witnessed strong digital transformation by the lender, which hascreated a solid foundation for achieving its goal of becoming Vietnam’s leadingdigital bank.

Besides,HDBank undertook a number of community activities, contributed 18 percent moreto the State budget than in 2019, and ensured the interests of shareholders andemployees were fully safeguarded.

Withits solid foundations, outstanding performance and transparency meeting thehighest international standards, the bank wants to walk hand inhand with shareholders and investors towards new successes and greatbenefits./.
VNA

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