HDBank achieves 2020targets, bad debts ratio at a mere 0.93%

Thursday, Jan 28, 2021 18:02

An HDBank transaction office in HCM City. HDBank met all its business targets last year despite the challenges posed by the COVID-19 pandemic. — Photo courtesy of the bank

The HCM City Development Joint Stock Commercial Bank (HDBank, HoSE: HDB) has released its 2020 financial statements showing consolidated pre-tax profit of VND5.82 trillion (US$253.6 million), which represents an increase of 15.9 per cent from the previous year and 102.8 per cent of its target.

HDBank overcame numerous challenges in 2020 to achieve high growth, in the process exceeding all its targets.

Its total consolidated assets grew by 39.1 per cent to VND319 trillion ($13.88 billion), or 104.5 per cent of the target.

Loans outstanding increased by 23 per cent, nearly two times the industry average. Its non-performing loans ratio was well controlled at just 0.93 per cent, among the lowest in the industry, a status it has enjoyed for many years.

The bank increased provision to be able to deal with any risks that appear.

Earnings from services went up by 51.8 per cent, while its insurance business achieved good results.

Its return on equity (ROE) and return on assets (ROA) were 20.6 per cent and 1.7 per cent.

HDBank’s safety indicators have been constantly improving. The ratio of short-term deposits used for medium- and long-term loans is only 24.8 per cent as against the permitted maximum level of 40 per cent. Its capital adequacy ratio was 12 per cent while Basel II and the State Bank of Vietnam prescribe 8 per cent.

HDBank was one of the first in Viet Nam to achieve all three pillars of Basel II before the schedule set by the central bank.

Last year it issued $160 million worth of convertible bonds to large, reputed financial institutions in Europe and the region, which supplemented its tier 2 capital and helped finance its high-growth strategies.

HDB shares are a favourite with investors thanks to their high liquidity and low price-earnings (P/E) ratio.

International credit rating agency Moody's recently announced it is maintaining the B1 credit rating for HDBank, and appreciated its capital capacity, operational efficiency and growth potential.

The bank opened 22 new branches and transaction offices last year, raising the total number to 308, while HD SAISON's consumer finance transaction point system was expanded to more than 19,500.

To diversify its products and services, offer better experiences to customers and more effectively serve millions of retail customers in its eco-system, HDBank is cooperating with reputed international consulting companies to develop a digital banking strategy and enhance its adoption of 4.0 technologies.

Last year it offered preferential credit and waived or reduced transaction fees to help customers overcome the effects of the Covid-19 pandemic.

The bank has also taken measures to ensure the safety and the health of its employees and customers.

In 2020 it donated nearly VND10 billion to the Viet Nam Fatherland Front to support the fight against the COVID-19 pandemic.

Last year it won many prestigious honours from renowned Vietnamese and international organisations including for Top 50 Best Listed Companies, the Vietnam - ASEAN Outstanding Enterprise award, Mid-sized Domestic Retail Bank of the Year award, and Best Companies To Work For in Asia award for a third consecutive year.

Its programmes for sustainable development and social responsibility and environmental protection have had a good impact.

So it was also honoured with the Top 10 Sustainable Businesses in Viet Nam award for a second straight year by the Viet Nam Chamber of Commerce and Industry and named among the top 20 companies in the Sustainable Development Index basket put out by the Ho Chi Minh Stock Exchange.

Amid the challenges of 2020, these results once again affirm HDBank's high and sustainable growth capacity, which has made the bank more confident about completing its 2021 plans and beginning a new, bright stage of development. — VNS

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