Customers conduct transaction at an HDBank’s transaction office in HCM City amid the COVID-19 pandemic. The bank reports positive business results in the first quarter of 2020. — Photo courtesy of the bank
The HCM City Development Joint Stock Commercial Bank (HOSE: HDB) has released its financial statements for the first quarter showing a total consolidated operating income that increased by 27.8 per cent year-on-year to VNĐ3.15 trillion (US$134.4 million) and pre-tax profit that increased by 13.5 per cent was VNĐ1.25 trillion ($53.4 million).
It had total consolidated assets of VNĐ231.8 trillion ($9.88 billion), and high levels of asset quality and liquidity.
The non-performing loan ratio of the parent bank continued to be strictly controlled, with its 1.08 per cent rate placing it among the banks with the lowest ratios in the industry, a status it has enjoyed for many years.
Its capital adequacy ratio (CAR) topped 11.1 per cent, much higher than the minimum of 8 per cent prescribed under Basel II standards and placing it in the group of banks with the highest CAR.
Deposit and lending activities saw positive growth.
Deposits were worth VNĐ204.9 trillion ($8.7 billion), of which deposits from residents and economic organisations increased by 4.61 per cent to nearly VNĐ158 trillion. The total consolidated loan balance was VNĐ162.06 trillion ($6.9 billion), up 5.92 per cent compared from the beginning of the year, which rate was higher than the industry average. The bank recorded steady growth across all loan segments, including individual customers, small and medium-sized enterprises and consumer loans.
In the context of the COVID-19 pandemic, HDBank has implemented risk management programmes to ensure safe operations and at the same time deployed credit packages to support SMEs, enterprises that produce and distribute essential products and others in supply and distribution chains to help them overcome the tough situation.
The credit programmes are designed specifically to support each target customer group, including a preferential credit package worth VNĐ24 trillion ($1.02 billion) for corporate customers who supply goods to supermarkets to help stabilise the prices of essential goods, supplement working capital and pay salaries to their employees and a VNĐ10 trillion ($425.8 million) preferential package for individuals and micro enterprises.
The bank has also adopted automation and digital solutions to offer customers convenience and safety. In the first quarter, online transactions by its customers grew at 112 per cent and the number of new payment cards it issued went up by 67 per cent over the same period of 2019.
HD SAISON maintained its leading position among consumer finance companies in terms of its distribution network, putting it among the top three in the market.
Its outstanding loans grew by 4.9 per cent in the first quarter, exceeding its target.
In April 2020, Moody’s said it maintained the B1 credit rating for HDBank though it had announced many banks were likely to have their ratings lowered.
It underlined HDBank’s stable financial capacity, low risk and long-term development opportunities.
Also in the first quarter, HDBank was honoured as the best domestic bank in Việt Nam by The Asset, Asia’s leading banking and finance magazine.
In 2020, HDBank will select a bancassurance partner to increase revenues from cross-selling insurance products to customers in its large eco-system.
Việt Nam is among the countries to recover fastest from the pandemic, which is a premise for growth for its banking industry, including HDBank. — VNS