Customers at an HDBank branch in HCM City. — Photo courtesy of HDBank
The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank – HoSE: HDB) has reported a pre-tax profit of over VNĐ8.16 trillion (US$324.47 million) for the first half of the year, up 48.9 per cent year-on-year driven by increased operational efficiency and digital transformation initiatives.
Operational efficiency and prudential indicators continued to improve, affirming the bank's sustainable development strategy is on the right track.
Its financial results show that as of June 30 the bank achieved a credit growth rate of 13 per cent for the year, with credit flows continuing into sectors that are key contributors to economic growth such as agriculture, rural areas, SMEs, supply chain financing, green credit, tourism, etc.
Its capital adequacy ratio according to Basel II standards was 13.9 per cent, much higher than the minimum requirement of 8 per cent.
Its consolidated non-performing loan ratio, including consumer finance, was only 1.59 per cent, among the lowest in the industry.
Revenues increased by 32.9 per cent year-on-year to over VNĐ16 trillion ($636.39 million).
Return on equity (ROE) and return on assets (ROA) were 26.1 per cent and 2.1 per cent, both higher than the preceding year.
This year shareholders will receive dividends of up to 30 per cent. HDBank has paid a 10 per cent dividend in cash and is implementing a plan to pay 20 per cent in stocks, most likely in the third quarter.
As of June 30 its total assets exceeded VNĐ624 trillion ($24.8 billion), up 29 per cent year-on-year.
Total deposits were VNĐ552 trillion ($21.93 billion), of which deposits received through digital banking channels were nearly VNĐ40 trillion ($1.59 billion), five times the amount in the same period last year.
New advances in digital and green banking
HDBank marked a new step in its efforts to comprehensively implement ESG (environmental, social and corporate governance) strategy in the first half.
It has become the first bank in Việt Nam to release a Sustainable Development Report based on international standards.
Through the report, HDBank clearly demonstrates its commitment to implementing sustainable development towards realising its goal of becoming a Net Zero Bank by 2050.
It established a Sustainable Development Committee under its Board of Directors to direct and supervise the comprehensive integration of ESG standards into all its activities.
Its focus on digitalisation and research and application of artificial intelligence technology has yielded positive results.
The number of customers using its digital channels increased by 2.5 times from the same period last year, with 94 per cent of customers’ transactions being conducted on digital channels and the number of e-banking transactions going up by 130 per cent year-on-year.
In addition to launching new products and cashless payment solutions, HDBank has completed ahead of schedule the deployment of biometric facial recognition technology in accordance with Decision No. 2345/QD-NHNN to improve transaction safety and overall security.
It launched the "HDBank rural" application dedicated to helping develop agriculture and rural areas in a modern, effective and sustainable manner.
HDBank has won accolades from prestigious international organisations for its impressive business growth and achievements in digitalisation and greening.
On July 4 it received two awards from Asian Banking & Finance Magazine for Domestic Retail Bank of the Year - Vietnam and Mobile Banking & Payment Initiative of the Year - Vietnam.
Previously, it won the "Best Bank for Sustainable Finance" award from The Asset magazine.
HDBank also featured in Fortune magazine’s first ever Southeast Asia 500 rankings of the largest companies in the region.
Along with sustainable business development, the bank has always supported activities in the fields of education and training, healthcare, culture, and sports, including the HDBank Futsal National Championship, HDBank Futsal Tournament for Students and HDBank Cup International Chess Tournament.
HDBank believes that the positive results in the first half of the year and the effective application of new initiatives will pave the way for it to develop further.