HDBank keeps raising its performance bar

Wednesday, Apr 28, 2021 15:44

HDBank’s board of directors answer questions from shareholders and investors at its annual general meeting held on April 23. — Photo courtesy of the bank

This is the first year of a five-year plan for HDBank and a busy one for its whole eco-system as it plans to undertake many more activities to enable it to reach new heights in all aspects, Nguyen Thi Phuong Thao, its deputy chairwoman, has said.

The bank also plans some major programmes and projects for reforming business strategy, HR development, digital transformation, and enhancing co-operation with partners, she said.

"We will also constantly connect with strategic partners, large corporate customers, foreign-invested firms, and small and medium-sized enterprises at home and abroad to expand our business network in the domestic and international markets.

“New strategic investors will join HDBank to jointly expand trade finance programmes, develop investment banking and other advanced financial services.”

HDBank is committed to continuing to bring shareholders and investors the highest possible value and benefits, and would maintain its large and regular dividends of past years, she promised.

With its solid foundations, outstanding performance and transparency meeting the highest international standards, the bank is willing to walk hand in hand with shareholders and investors towards new successes and benefits, she said.

The Ho Chi Minh City Development Joint Stock Commercial Bank (HoSE: HDB) held its annual general meeting on April 23.

During the discussion session at the AGM, shareholders expressed great interest in bancassurance, credit growth and dividends and how to increase their benefits and further develop the bank.

Besides Vietnamese shareholders, the bank also heard from representatives of new foreign investment funds that have invested in HDBank such as Affinity and DEG (in the bank’s convertible bonds) and PYN (in stocks).

Speaking at the closing of the AGM, Thao said the bank’s board of directors have taken on board the shareholders’ opinions and comments. As for issues shareholders wanted the bank to clarify but the board did not have enough time to do so at the meeting, the bank’s investor relations division would discuss with them soon, she assured.

Thao said HDBank has achieved terrific growth in the 30-odd years since its establishment with total assets, equity and financial indicators basically growing by around 10 times, and return on equity ratio always being above 20 per cent.

It is one of the eight largest commercial banks in Viet Nam and among the leading companies in the VN30 basket on the stock market, she said.

"In 2020 HDBank went through the pandemic bravely, attesting to the capacity of a large and strong bank with flexible responses in all circumstances, and achieved its highest profit so far. It can be safely said that HDBank has never before had such a solid financial foundation, strength, great position, and resilience as it has today."

The bank has all the conditions required to realise new and bigger goals and visions in its new development strategy during the next five years (2021-2025) like rising to the top rung in the banking industry, becoming a retail bank that brings happiness and prosperity to customers, shareholders and employees, and making a positive contribution to socio-economic development.

In 2020 the board of directors fulfilled its responsibilities to shareholders. The bank paid dividends of up to 65 per cent, raised funds through convertible bonds, fulfilled a plan to add US$160 million to tier 2 capital, and was ready for M&A and improving financial capacity for 2021.

Also in 2020 earnings from services increased by half from 2019. They still have a lot of room to grow, especially in the bancassurance segment with its revenues estimated to reach up to VND1 trillion (US$43.4 million).

The bank plans to issue an additional one million credit cards and develop new financial products, and accelerate digital transformation.

It will also exploit its eco-systems to enable customers to use HDBank’s new and convenient services. — VNS

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