HDBank profit up 26 per cent, NPL ratio remains low

Saturday, Apr 29, 2023 16:13

HDBank’s stand-alone pre-tax profits grew by 26 per cent in the first quarter of 2023. — Photo courtesy of the bank

The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank – ticker HDB) has announced its results for the first quarter of 2023, with stand-alone pre-tax profits topping VND2.8 trillion (US$119.3 million).

This represents a 26 per cent increase year-on-year and is 23 per cent of the full-year target.

Net revenues from services grew by over 11 per cent, and the stand-alone non-performing loan ratio was kept down at 1.1 per cent.

During the quarter, amid the global financial uncertainties, by continuing to pursue its sustainable development strategy and credit growth orientation associated with restructuring towards efficiency, safety and full adoption of Basel III standards, and penetrating tier-2 urban and rural markets, HDBank identified numerous development opportunities despite the challenges, and has set high growth targets for 2023.

As of March 31, it had deposits of over VND406 trillion ($17.3 billion).

Its consolidated loans outstanding were worth VND292 trillion ($12.4 billion), up 9 per cent from the end of 2022, with growth seen in all major business segments -- retail, small and medium-sized enterprises, and consumer finance.

The bank provided more products and services to industries and sectors that are key contributors to economic growth such as agriculture and rural development, green financing, manufacturing and trading, renewable energy, waste treatment, and recycling besides focusing on retaining its leading position in supply chain financing.

It continued to offer preferential loans to those affected by the pandemic and workers and for digitisation of business and operations among others.

With its proactive implementation of business programmes from the beginning of the year, HDBank achieved a consolidated operating income of VND5.6 trillion ($238.6 million), a 10.4 per cent year-on-year rise.

Return on equity and return on assets were 22 per cent and 2 per cent, respectively.

The stand-alone non-performing loan ratio was only 1.1 per cent, and the capital adequacy ratio (Basel II) was among the top in the industry at 12.5 per cent.

The bank has been speedily implementing digital transformation by applying technologies such as eKYC, OCR, RPA, Voicebot, marketing automation, and machine learning to deliver outstanding digital banking products and enhance the customer experience.

As a result, operating costs are optimised and its cost-to-income ratio (CIR) reduced from 37.6 per cent in Q1 last year to 34.6 per cent.

Along with its vibrant business activities, HDBank has also been promoting and implementing an environmental and social management system (ESMS) systematically and in accordance with its commitments to investors and international partners.

It has also proactively fulfilled its responsibilities to the community. This year it has carried out a series of social activities across the country, including donating essential items to poor people in mountainous areas for Lunar New Year and funding 2,000 eye surgeries, hundreds of charity houses and 1,000 scholarships to students through the Vu A Dinh Scholarship Fund.

HDBank's annual general meeting on April 26 approved the 2023 plan, which includes strategic steps to sustain high growth in terms of both scale and quality, taking the bank to a new stage of sustainable, safe and effective development. — VNS

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