The Ho Chi Minh City Development Joint Stock Commercial Bank achieved its “best ever” business results this year despite the domestic and global market and economic fluctuations, its management has said.

On October 26 the bank held an online conference with local and foreign institutional investors to announce its results for Q3 and the first three quarters of the year.

It was represented by chairman Kim Byoung-ho, permanent vice chairwoman Nguyễn Thị Phương Thảo, chief economist Devendra Joshi, and representatives of the board of management, who sought to reply to queries from investors.

Thảo said HDBank’s nine-month results were the “best ever.”

The bank said its pre-tax profit in the third quarter was over VNĐ2.7 trillion (US$108.5 million), up 43.4 per cent from the same period last year.

For the first nine months of the year its total consolidated operating income was over VNĐ16 trillion ($643.6 million), up 32.7 per cent, with net service revenues rising by 80.1 per cent to more than VNĐ2.1 trillion.

Pre-tax profit was up 31.7 per cent to VNĐ8 trillion, or 82 per cent of the full-year target approved by shareholders.

Profitability ratios ROE and ROA were 25.2 per cent and 2.2 per cent respectively, putting it among the leading banks in terms of efficiency.

The cost to income ratio (CIR) improved to 37 per cent from 39.4 per cent a year earlier.

The standalone bad debt ratio was only 1.1 per cent.

Capital adequacy ratio (according to Basel II standards) was 15.3 per cent, its highest figure so far.

Speaking at the conference on behalf of nearly 18,000 employees, Thảo said HDBank has a proud 30-year history of development, including10 years of comprehensive reform and outstanding growth.

From being one of the smallest banks in the market, it has become one of the top 10 commercial banks with excellent capital adequacy ratio, asset quality and liquidity and outstanding operational efficiency, and almost meeting Basel III norms by Q3, she said.

HDBank possesses all the factors needed and the room for maintaining high and sustainable growth, she said.

In the first nine months the service segment including bancassurance continued to see robust growth, with bancassurance revenues at HDBank and its subsidiaries exceeding VNĐ1.5 trillion($60.3 million), more than double the figure from a year earlier, she said.

“HDBank’s excellent results in the third quarter and year to date are a gift the new board of directors want to offer shareholders.

“This results meanwhile shows the mission and responsibility of the board of directors for the 2022-2027 tenure in achieving the strategic targets approved by shareholders.

"We are consistent with our strategy and keep a close eye on market movements to make appropriate decisions."

Commenting on the stock market's movements in recent times, she said that when the market is dominated by negative psychological factors, it is difficult for prices to reflect the true value and development potential of enterprises.

“Investing in listed banks is a long-term investment, and is investment in sustainable value. We can see that for a bank like HDBank the current stock price does not reflect its true value, capacity for sustainable development, future development potential, or its ability to cope with economic fluctuations and achieve higher growth in the years to come.

“Currently its price-to-book ratio (P/B) is just above 1.0 and price to earnings ratio (P/E) is just over five times.”

Regarding to lending to property sector, the board of management said the bank’s total outstanding loans to the sector accounts for 8 per cent of its total outstanding loans, and there is almost no bad debts by the real estate sector.

As of September 30 HDBank had VNĐ5.4 trillion($216.5 million) worth of corporate bonds in its investment portfolio, or just over 1 per cent of total assets. The bond issuers are paying interest in time and achieve good business results. HDBank is confident about its bond portfolio.

Aiming for high, sustainable growth

HDBank is focusing on four main strategic initiatives: digital banking development, taking advantage of its ecosystem, promoting bancassurance, and enhancing corporate governance and environmental and social risk governance.

In the next five years HDBank expects to maintain a high growth rate of over 25 per cent a year on average, and safe and sustainable operations.

Devendra Joshi, the bank’s chief economist, spoke about Việt Nam's economic prospects related GDP growth, balance of payments, inflation, interest rates, and others. He said foreign investment inflows into Việt Nam have increased and a high trade surplus has been achieved in recent years.

Chairman Kim, who attended the conference from Seoul, Korea, spoke about the determination, thoroughness and meticulousness of the leadership team in realising the goal of becoming a leading bank with international best practices.

In 2022-23 the bank would also focus on identifying strategic investors to journey along it in the upcoming period of high and sustainable growth and an exclusive bancassurance partner, he revealed.

To conclude the conference, he thanked shareholders and promised to provide the highest benefits to investors, shareholders, customers, employees, and the community.