Bank leaders at HDBank’s Annual General Meeting of Shareholders (AGM) 2019 was held in HCM City on April 23. (Photo: HDBank) HCM City (VNS/VNA) – The Ho Chi MinhCity Development Joint Stock Commercial Bank (HDBank) plansto collect 5.07 trillion VND (217 million USD) in pre-tax profits this year, anincrease of 27 percent compared to 2018.
The information was released during HDBank’sAnnual General Meeting of Shareholders (AGM) 2019 held in HCM City on April 23.
The bank forecast that total assets this yearwill be up 16 percent from 2018 to reach nearly 250 trillion VND (10.73 billionUSD), capital mobilisation will touch 224.2 trillion VND (9.62 billion USD), anincrease of 20 percent year-on-year.
In 2019, outstanding loans are expected to be 160.9trillion VND (6.9 billion USD), bad debt ratio will be kept below 2 percent.
Return on Asset (ROA) and Return on Equity (ROE)will increase by 1.7 percent and 21.2 percent, respectively.
The bank will continue to expand the network oftransaction points, lifting the total number to 308.
In 2019, HDBank will apply modern bankingmanagement models to meet international standards, boost technologicalinnovation and apply Basel II standards in risk management, improve financialcapacity and competitiveness, diversify mobilised capital sources andrestructure assets to increase the proportion of profitable assets.
This year, shareholders will receive cashdividend payment at the rate of 10 percent.
During the AGM, shareholders also agreed withthe plan to increase charter capital in 2019 via the issuance of shares fordividend payment and bonus shares. Dividend paid in shares and bonus sharesissuance will be kept at the rate of 20 percent.
This capital raising plan will help HDBank tofurther improve the safety criteria under Basel II and increase capital supplyfor business activities.
Last year, HDBank witnessed strong developmentas most of the business targets increased positively compared to the sameperiod of 2017.
Total assets reached more than 216 trillion VND(9.27 billion USD), up 14.1 percent. Owner's equity reached 16.8 trillion VND(721.24 million USD), up 14 percent. Total outstanding loans reached 129.6trillion VND (5.56 billion USD), up 17.8 percent.
Total mobilised capital reached 186.7 trillion VND(8.01 billion USD), an increase of 9.5 percent compared to 2017. Of theestimate, mobilised capital from residents and economic organisations reached 143trillion VND (6.13 billion USD). Non-performing loan (NPL) ratio was controlledat low level of 1.5 percent. Capital adequacy ratio (CAR) reached 12.1 percent.
In 2018, HDBank’s pre-tax profit was 4 trillionVND (171.73 million USD), up 65.7 percent compared to 2017 and completing 101.8percent of the annual plan.
With improvement in operating efficiency, HDBankcontinued to maintain growth in net profit. Within five years from 2013 to2018, HDBank's net profit growth reached 67.1 percent. As a result, earningsper share (EPS) also increased by nearly 50 percent on average.
By the end of 2018, HDBank had completed opening40 transaction points and five branches, increasing the network system to 285units. The system of consumer financial transaction points continued to beexpanded to 13,825 points, maintaining the market leading position. The numberof employees reached 14,340 people, with increasing income.
In 2018, HDBank shares were officially listedand traded on the Ho Chi Minh Stock Exchange (HOSE). The bank was also includedin the list of Vietnam’s top 20 enterprises with the largest marketcapitalisation. Also last year, HDBank shares met all the conditions to jointhe VN-30 Index basket.-VNS/VNA
VNA
